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Capital IconMinnesota Legislature

HF 4

3rd Engrossment - 90th Legislature (2017 - 2018) Posted on 05/16/2017 09:13am

KEY: stricken = removed, old language.
underscored = added, new language.
Line numbers 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 1.25 1.26 1.27 1.28 1.29 1.30 1.31 1.32 1.33 1.34 1.35 1.36 1.37 1.38 1.39 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 2.34 2.35 2.36 2.37 2.38 2.39 2.40 2.41 2.42 2.43 2.44 2.45 2.46 2.47 2.48 2.49 2.50 2.51 2.52 2.53 2.54 2.55 2.56 2.57 2.58 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28
3.29 3.30
3.31 3.32 3.33 3.34
3.35
3.36 3.37 3.38 3.39 3.40 3.41 3.42 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21 5.22 5.23 5.24 5.25 5.26 5.27 5.28 5.29 5.30 5.31 5.32 5.33 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13 6.14 6.15 6.16 6.17
6.18 6.19
6.20 6.21 6.22 6.23 6.24 6.25 6.26 6.27 6.28 6.29 6.30 6.31 6.32
7.1 7.2
7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12 7.13 7.14 7.15 7.16 7.17 7.18 7.19 7.20 7.21 7.22 7.23 7.24 7.25 7.26 7.27 7.28 7.29 7.30 7.31 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 8.10 8.11 8.12 8.13 8.14
8.15 8.16 8.17
8.18 8.19 8.20 8.21 8.22
8.23 8.24
8.25 8.26 8.27 8.28
8.29 8.30
9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 9.10 9.11 9.12 9.13 9.14
9.15 9.16
9.17 9.18 9.19 9.20 9.21 9.22 9.23 9.24 9.25 9.26 9.27
9.28 9.29
10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 10.11
10.12 10.13
10.14 10.15 10.16 10.17
10.18 10.19
10.20 10.21 10.22 10.23 10.24 10.25 10.26 10.27 10.28 10.29 10.30 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 11.9
11.10 11.11
11.12 11.13 11.14 11.15
11.16 11.17
11.18 11.19 11.20 11.21 11.22 11.23 11.24 11.25 11.26 11.27 11.28 11.29 11.30 11.31 12.1 12.2 12.3 12.4 12.5 12.6 12.7 12.8
12.9 12.10
12.11 12.12 12.13 12.14 12.15
12.16 12.17
12.18 12.19 12.20 12.21 12.22 12.23 12.24 12.25 12.26 12.27 12.28 12.29 12.30 12.31 12.32 12.33 13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8 13.9 13.10 13.11 13.12 13.13 13.14 13.15 13.16 13.17 13.18 13.19 13.20 13.21 13.22 13.23 13.24 13.25 13.26 13.27 13.28 13.29 13.30 13.31 13.32 14.1 14.2 14.3 14.4 14.5 14.6 14.7 14.8 14.9 14.10 14.11 14.12 14.13 14.14 14.15 14.16 14.17 14.18 14.19 14.20 14.21 14.22 14.23 14.24 14.25 14.26 14.27 14.28 14.29 14.30 14.31 15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8 15.9 15.10 15.11 15.12 15.13 15.14 15.15 15.16 15.17 15.18 15.19 15.20 15.21 15.22 15.23 15.24 15.25 15.26 15.27 15.28 15.29 15.30 15.31 15.32 15.33 16.1 16.2 16.3 16.4 16.5 16.6 16.7 16.8 16.9 16.10 16.11 16.12 16.13 16.14 16.15 16.16 16.17 16.18 16.19 16.20 16.21 16.22 16.23 16.24
16.25
16.26 16.27 16.28 16.29 16.30 16.31
16.32 16.33
17.1 17.2 17.3 17.4 17.5 17.6 17.7 17.8 17.9 17.10 17.11 17.12 17.13 17.14 17.15 17.16 17.17 17.18 17.19 17.20 17.21 17.22 17.23 17.24 17.25 17.26 17.27 17.28 17.29 17.30 17.31 17.32 17.33 18.1 18.2 18.3 18.4 18.5 18.6 18.7 18.8 18.9 18.10 18.11 18.12 18.13 18.14 18.15 18.16 18.17 18.18 18.19 18.20 18.21 18.22 18.23 18.24 18.25 18.26 18.27 18.28 18.29 18.30 18.31 18.32 18.33 19.1 19.2 19.3 19.4 19.5 19.6 19.7 19.8
19.9 19.10
19.11 19.12 19.13 19.14 19.15 19.16 19.17 19.18 19.19 19.20 19.21 19.22 19.23 19.24 19.25 19.26 19.27 19.28 19.29 19.30 19.31 19.32 19.33 20.1 20.2 20.3 20.4
20.5 20.6
20.7 20.8 20.9 20.10 20.11 20.12 20.13 20.14 20.15 20.16 20.17 20.18 20.19 20.20 20.21 20.22 20.23 20.24 20.25 20.26 20.27 20.28
20.29 20.30
21.1 21.2 21.3 21.4 21.5 21.6 21.7 21.8 21.9 21.10 21.11 21.12 21.13 21.14 21.15 21.16 21.17 21.18 21.19 21.20 21.21 21.22 21.23 21.24 21.25 21.26 21.27 21.28 21.29 21.30 21.31 21.32 21.33 22.1 22.2 22.3 22.4 22.5 22.6 22.7 22.8 22.9 22.10 22.11 22.12 22.13 22.14 22.15 22.16 22.17 22.18 22.19 22.20 22.21 22.22 22.23 22.24 22.25 22.26
22.27 22.28
22.29 22.30 22.31 22.32 22.33 23.1 23.2 23.3 23.4 23.5 23.6 23.7 23.8
23.9 23.10
23.11 23.12 23.13 23.14 23.15 23.16 23.17 23.18 23.19 23.20 23.21 23.22 23.23 23.24 23.25 23.26 23.27 23.28 23.29 23.30 23.31 23.32 23.33 23.34 24.1 24.2 24.3 24.4 24.5 24.6 24.7 24.8 24.9 24.10 24.11 24.12 24.13 24.14 24.15 24.16 24.17 24.18 24.19 24.20 24.21 24.22 24.23 24.24 24.25 24.26 24.27
24.28 24.29
24.30 24.31 24.32 25.1 25.2 25.3 25.4 25.5 25.6 25.7 25.8 25.9 25.10 25.11 25.12
25.13 25.14
25.15 25.16 25.17 25.18 25.19 25.20 25.21 25.22 25.23 25.24 25.25 25.26 25.27 25.28
25.29 25.30
26.1 26.2 26.3 26.4 26.5 26.6 26.7 26.8
26.9 26.10
26.11 26.12 26.13 26.14 26.15 26.16 26.17 26.18 26.19 26.20 26.21 26.22 26.23 26.24 26.25 26.26 26.27 26.28 26.29 26.30 26.31 26.32
27.1 27.2
27.3 27.4 27.5 27.6 27.7 27.8 27.9 27.10 27.11 27.12 27.13 27.14 27.15 27.16 27.17 27.18 27.19 27.20 27.21 27.22 27.23 27.24 27.25 27.26 27.27
27.28 27.29
27.30 27.31 27.32 27.33 28.1 28.2 28.3 28.4 28.5 28.6 28.7 28.8 28.9 28.10 28.11 28.12 28.13 28.14 28.15 28.16 28.17 28.18 28.19 28.20 28.21 28.22 28.23 28.24 28.25 28.26
28.27 28.28
28.29 28.30 28.31 29.1 29.2 29.3 29.4 29.5 29.6 29.7 29.8 29.9 29.10 29.11 29.12 29.13 29.14 29.15 29.16 29.17 29.18 29.19 29.20 29.21 29.22 29.23 29.24 29.25 29.26 29.27 29.28 29.29 29.30 30.1 30.2 30.3 30.4 30.5
30.6 30.7
30.8 30.9 30.10 30.11 30.12 30.13 30.14 30.15 30.16 30.17 30.18 30.19 30.20 30.21 30.22 30.23 30.24 30.25 30.26 30.27 30.28 30.29 30.30 30.31 31.1 31.2 31.3 31.4 31.5 31.6 31.7 31.8 31.9 31.10 31.11 31.12 31.13 31.14
31.15 31.16
31.17 31.18 31.19 31.20 31.21 31.22 31.23 31.24 31.25 31.26 31.27 31.28 31.29 31.30 31.31 32.1 32.2 32.3 32.4 32.5 32.6 32.7 32.8 32.9 32.10 32.11 32.12 32.13 32.14 32.15 32.16 32.17 32.18 32.19 32.20 32.21 32.22 32.23 32.24 32.25 32.26 32.27 32.28 32.29 32.30 32.31 32.32 33.1 33.2
33.3 33.4
33.5 33.6 33.7 33.8 33.9 33.10 33.11 33.12 33.13 33.14 33.15 33.16 33.17 33.18
33.19 33.20
33.21 33.22 33.23 33.24 33.25 33.26 33.27 33.28 33.29 33.30 33.31 34.1 34.2 34.3 34.4 34.5 34.6 34.7 34.8 34.9 34.10 34.11 34.12 34.13 34.14 34.15 34.16 34.17 34.18 34.19 34.20 34.21 34.22 34.23
34.24 34.25
34.26 34.27 34.28 34.29 34.30 34.31 34.32 35.1 35.2 35.3 35.4 35.5 35.6 35.7 35.8 35.9 35.10 35.11 35.12 35.13 35.14 35.15 35.16 35.17 35.18 35.19 35.20 35.21 35.22 35.23 35.24 35.25 35.26 35.27 35.28 35.29 35.30
36.1 36.2
36.3 36.4 36.5 36.6 36.7 36.8 36.9 36.10 36.11 36.12 36.13 36.14 36.15 36.16 36.17 36.18 36.19 36.20 36.21 36.22 36.23 36.24 36.25 36.26 36.27 36.28 36.29 37.1 37.2 37.3 37.4 37.5 37.6 37.7 37.8 37.9 37.10 37.11 37.12 37.13 37.14 37.15 37.16 37.17 37.18 37.19 37.20 37.21 37.22 37.23 37.24 37.25 37.26 37.27 37.28 37.29 37.30 37.31 37.32 37.33 38.1 38.2 38.3 38.4 38.5 38.6 38.7 38.8 38.9 38.10 38.11 38.12 38.13 38.14 38.15 38.16 38.17 38.18 38.19 38.20 38.21 38.22 38.23 38.24 38.25 38.26 38.27 38.28 38.29 38.30 38.31 38.32 38.33 39.1 39.2 39.3 39.4 39.5 39.6 39.7 39.8 39.9 39.10 39.11 39.12 39.13 39.14 39.15 39.16 39.17 39.18 39.19 39.20 39.21 39.22 39.23 39.24 39.25 39.26 39.27 39.28 39.29 39.30 39.31 39.32 40.1 40.2 40.3 40.4 40.5 40.6 40.7 40.8 40.9 40.10 40.11 40.12 40.13 40.14 40.15 40.16 40.17 40.18 40.19 40.20 40.21 40.22 40.23 40.24 40.25 40.26 40.27 40.28 40.29 40.30 40.31 41.1 41.2 41.3 41.4 41.5 41.6 41.7 41.8 41.9 41.10 41.11 41.12 41.13 41.14 41.15 41.16 41.17 41.18 41.19 41.20 41.21 41.22 41.23 41.24 41.25 41.26 41.27 41.28 41.29 41.30 41.31 41.32 42.1 42.2 42.3 42.4 42.5 42.6 42.7 42.8 42.9 42.10 42.11 42.12 42.13 42.14 42.15 42.16 42.17 42.18 42.19
42.20 42.21
42.22 42.23 42.24 42.25 42.26 42.27 42.28 42.29 42.30 42.31 42.32 43.1 43.2
43.3 43.4
43.5 43.6 43.7 43.8 43.9 43.10 43.11 43.12 43.13 43.14 43.15 43.16 43.17 43.18 43.19 43.20 43.21 43.22 43.23 43.24 43.25 43.26 43.27 43.28 43.29
43.30 43.31
44.1 44.2 44.3 44.4 44.5 44.6 44.7 44.8 44.9 44.10 44.11 44.12 44.13 44.14 44.15 44.16 44.17 44.18 44.19 44.20 44.21 44.22 44.23 44.24 44.25 44.26 44.27 44.28 44.29 44.30 44.31 45.1 45.2 45.3 45.4 45.5 45.6 45.7 45.8 45.9 45.10 45.11 45.12 45.13 45.14 45.15 45.16
45.17 45.18
45.19 45.20 45.21 45.22 45.23 45.24 45.25 45.26 45.27 45.28 45.29 45.30 45.31 46.1 46.2 46.3 46.4 46.5 46.6 46.7 46.8 46.9 46.10 46.11 46.12 46.13 46.14 46.15 46.16 46.17 46.18 46.19 46.20 46.21 46.22 46.23 46.24 46.25 46.26 46.27 46.28 46.29 46.30 46.31 46.32 46.33 47.1 47.2 47.3 47.4 47.5 47.6 47.7 47.8 47.9 47.10 47.11 47.12 47.13 47.14 47.15 47.16
47.17 47.18
47.19 47.20 47.21 47.22 47.23 47.24 47.25 47.26 47.27 47.28 47.29 47.30
48.1 48.2
48.3 48.4 48.5 48.6 48.7 48.8 48.9 48.10 48.11 48.12 48.13 48.14 48.15 48.16 48.17 48.18 48.19 48.20 48.21 48.22 48.23 48.24 48.25 48.26 48.27 48.28 48.29 48.30 48.31 48.32 48.33 48.34 48.35 48.36 48.37 48.38 48.39 48.40 48.41 48.42 48.43 49.1 49.2 49.3 49.4 49.5 49.6 49.7 49.8 49.9 49.10 49.11 49.12 49.13 49.14 49.15 49.16 49.17 49.18 49.19 49.20 49.21 49.22 49.23 49.24 49.25 49.26 49.27 49.28 49.29 49.30 49.31 49.32 49.33 49.34 49.35 49.36 49.37 49.38 49.39 49.40 49.41 49.42 49.43 49.44 49.45 49.46 50.1 50.2 50.3 50.4
50.5 50.6
50.7 50.8 50.9 50.10 50.11 50.12 50.13 50.14 50.15 50.16
50.17 50.18
50.19 50.20 50.21 50.22 50.23 50.24 50.25 50.26 50.27 50.28 50.29 50.30 50.31 50.32 51.1 51.2 51.3 51.4 51.5 51.6 51.7 51.8 51.9 51.10 51.11 51.12 51.13 51.14 51.15 51.16 51.17 51.18 51.19 51.20 51.21 51.22 51.23 51.24 51.25 51.26 51.27 51.28 51.29 51.30 52.1 52.2 52.3 52.4 52.5 52.6 52.7 52.8 52.9 52.10 52.11 52.12 52.13 52.14 52.15 52.16 52.17 52.18 52.19 52.20 52.21 52.22 52.23 52.24 52.25 52.26 52.27 52.28 52.29 52.30 52.31 52.32 53.1 53.2 53.3 53.4 53.5 53.6 53.7 53.8 53.9 53.10 53.11 53.12 53.13 53.14 53.15 53.16 53.17 53.18 53.19 53.20 53.21 53.22 53.23 53.24 53.25 53.26 53.27
53.28 53.29
53.30 53.31
54.1
54.2 54.3 54.4 54.5 54.6 54.7 54.8 54.9 54.10 54.11 54.12 54.13 54.14 54.15 54.16 54.17 54.18 54.19 54.20 54.21 54.22 54.23 54.24 54.25 54.26 54.27 54.28 54.29 54.30 54.31 54.32 55.1 55.2 55.3 55.4 55.5 55.6 55.7 55.8 55.9 55.10 55.11 55.12 55.13
55.14
55.15 55.16 55.17 55.18 55.19 55.20 55.21 55.22 55.23 55.24 55.25 55.26 55.27 55.28 55.29 55.30 55.31 56.1 56.2 56.3 56.4 56.5 56.6 56.7 56.8 56.9 56.10 56.11 56.12
56.13
56.14 56.15 56.16 56.17 56.18 56.19 56.20 56.21 56.22 56.23 56.24 56.25 56.26 56.27 56.28
56.29
57.1 57.2 57.3 57.4 57.5 57.6 57.7 57.8 57.9 57.10 57.11 57.12 57.13 57.14 57.15
57.16
57.17 57.18 57.19 57.20 57.21 57.22 57.23 57.24 57.25 57.26 57.27 57.28 57.29 57.30 58.1 58.2 58.3 58.4 58.5 58.6 58.7 58.8 58.9 58.10 58.11 58.12 58.13 58.14 58.15 58.16
58.17 58.18
58.19 58.20 58.21 58.22 58.23 58.24
58.25 58.26
58.27 58.28 58.29 58.30 58.31
59.1 59.2 59.3
59.4 59.5
59.6 59.7 59.8 59.9 59.10 59.11 59.12 59.13 59.14 59.15 59.16 59.17 59.18 59.19
59.20
59.21 59.22 59.23 59.24 59.25 59.26
59.27 59.28
60.1 60.2 60.3 60.4 60.5 60.6 60.7 60.8 60.9
60.10 60.11 60.12
60.13 60.14 60.15 60.16 60.17 60.18 60.19 60.20 60.21 60.22 60.23 60.24 60.25 60.26 60.27 60.28 60.29 60.30 60.31 60.32 61.1 61.2 61.3
61.4 61.5 61.6 61.7 61.8 61.9 61.10 61.11 61.12 61.13 61.14 61.15 61.16 61.17 61.18 61.19 61.20 61.21 61.22 61.23 61.24 61.25
61.26
61.27 61.28 61.29 61.30 61.31 62.1 62.2 62.3 62.4 62.5 62.6 62.7 62.8 62.9 62.10
62.11
62.12 62.13 62.14 62.15 62.16 62.17 62.18 62.19 62.20 62.21 62.22 62.23 62.24 62.25 62.26 62.27 62.28 62.29 62.30 62.31 63.1 63.2 63.3 63.4 63.5 63.6 63.7 63.8 63.9 63.10 63.11 63.12 63.13 63.14 63.15
63.16
63.17 63.18 63.19 63.20 63.21 63.22 63.23 63.24 63.25 63.26 63.27 63.28 63.29 63.30 63.31 64.1 64.2 64.3 64.4 64.5 64.6 64.7 64.8 64.9 64.10 64.11 64.12 64.13 64.14 64.15 64.16 64.17 64.18 64.19 64.20 64.21 64.22 64.23 64.24 64.25
64.26
64.27 64.28 64.29 64.30 64.31 65.1 65.2 65.3 65.4 65.5 65.6 65.7 65.8 65.9 65.10 65.11 65.12 65.13 65.14 65.15 65.16 65.17 65.18 65.19
65.20 65.21
65.22 65.23 65.24 65.25 65.26 65.27 65.28 65.29 65.30 65.31 66.1 66.2 66.3 66.4 66.5 66.6 66.7 66.8 66.9 66.10 66.11 66.12 66.13 66.14 66.15 66.16 66.17 66.18 66.19 66.20 66.21 66.22 66.23 66.24 66.25 66.26 66.27 66.28 66.29 66.30 66.31 66.32 66.33 67.1 67.2 67.3 67.4 67.5 67.6 67.7 67.8 67.9 67.10 67.11 67.12 67.13 67.14 67.15 67.16 67.17 67.18 67.19 67.20 67.21 67.22 67.23 67.24 67.25 67.26 67.27 67.28 67.29 67.30 67.31 67.32 68.1 68.2 68.3 68.4 68.5 68.6 68.7 68.8 68.9 68.10 68.11 68.12 68.13 68.14 68.15 68.16 68.17 68.18 68.19 68.20 68.21 68.22 68.23 68.24 68.25 68.26 68.27 68.28 68.29 68.30 68.31 68.32 69.1 69.2 69.3 69.4 69.5 69.6 69.7 69.8 69.9 69.10 69.11 69.12 69.13 69.14 69.15 69.16 69.17 69.18 69.19 69.20 69.21 69.22 69.23 69.24 69.25 69.26 69.27 69.28 69.29 69.30 69.31 69.32 70.1 70.2 70.3 70.4 70.5 70.6 70.7 70.8 70.9 70.10 70.11 70.12 70.13 70.14 70.15 70.16 70.17 70.18 70.19 70.20 70.21 70.22 70.23 70.24 70.25 70.26 70.27 70.28
70.29 70.30
71.1 71.2 71.3 71.4 71.5 71.6 71.7 71.8 71.9 71.10 71.11 71.12 71.13 71.14 71.15 71.16 71.17 71.18 71.19 71.20 71.21 71.22 71.23 71.24 71.25 71.26 71.27 71.28 71.29 71.30 71.31 71.32 71.33 72.1 72.2 72.3 72.4 72.5 72.6 72.7 72.8 72.9 72.10 72.11 72.12 72.13 72.14
72.15 72.16
72.17 72.18 72.19 72.20 72.21 72.22 72.23 72.24 72.25 72.26 72.27 72.28 72.29 72.30 72.31 72.32 72.33 73.1 73.2 73.3 73.4 73.5 73.6 73.7 73.8 73.9 73.10 73.11 73.12 73.13 73.14 73.15 73.16 73.17 73.18 73.19 73.20 73.21 73.22 73.23 73.24 73.25 73.26 73.27 73.28 73.29 73.30 73.31 73.32 73.33 74.1 74.2
74.3 74.4 74.5 74.6 74.7 74.8 74.9 74.10 74.11 74.12 74.13 74.14 74.15 74.16 74.17 74.18 74.19 74.20 74.21 74.22 74.23 74.24 74.25 74.26 74.27 74.28 74.29 74.30 74.31 74.32 75.1 75.2 75.3 75.4 75.5 75.6 75.7 75.8 75.9 75.10 75.11 75.12 75.13 75.14 75.15 75.16 75.17 75.18 75.19 75.20 75.21 75.22 75.23 75.24 75.25 75.26 75.27 75.28 75.29 75.30 75.31 75.32 75.33 75.34 75.35 75.36 76.1 76.2 76.3 76.4 76.5 76.6 76.7 76.8 76.9 76.10 76.11 76.12 76.13 76.14 76.15 76.16 76.17 76.18 76.19 76.20 76.21 76.22 76.23 76.24 76.25 76.26
76.27
76.28 76.29 76.30 76.31 76.32 76.33 77.1 77.2 77.3 77.4 77.5 77.6 77.7 77.8 77.9 77.10 77.11 77.12 77.13 77.14 77.15 77.16 77.17 77.18 77.19 77.20 77.21 77.22 77.23 77.24 77.25 77.26 77.27 77.28 77.29 77.30 77.31 77.32 77.33 77.34 77.35 78.1 78.2 78.3 78.4 78.5 78.6 78.7 78.8 78.9 78.10 78.11 78.12 78.13 78.14 78.15 78.16 78.17 78.18 78.19 78.20 78.21 78.22 78.23 78.24 78.25 78.26 78.27 78.28 78.29 78.30 78.31 78.32 78.33 79.1 79.2 79.3 79.4 79.5 79.6 79.7 79.8 79.9 79.10 79.11 79.12 79.13 79.14 79.15 79.16 79.17 79.18 79.19 79.20 79.21 79.22 79.23 79.24 79.25 79.26 79.27 79.28 79.29 79.30 79.31 79.32 80.1 80.2 80.3 80.4 80.5 80.6 80.7 80.8 80.9 80.10 80.11 80.12 80.13 80.14 80.15 80.16 80.17 80.18 80.19 80.20 80.21 80.22 80.23 80.24 80.25 80.26 80.27 80.28 80.29 80.30 80.31 81.1 81.2 81.3 81.4 81.5 81.6 81.7 81.8 81.9 81.10 81.11 81.12 81.13 81.14 81.15 81.16 81.17 81.18 81.19 81.20 81.21 81.22 81.23 81.24 81.25 81.26 81.27 81.28 81.29 81.30 81.31 81.32 82.1 82.2 82.3 82.4 82.5 82.6 82.7 82.8 82.9 82.10 82.11 82.12 82.13 82.14 82.15 82.16 82.17 82.18 82.19 82.20 82.21 82.22 82.23 82.24 82.25
82.26
82.27 82.28 82.29 82.30 82.31 82.32 83.1 83.2 83.3 83.4 83.5 83.6 83.7 83.8 83.9 83.10 83.11 83.12 83.13 83.14 83.15 83.16 83.17 83.18 83.19 83.20 83.21 83.22 83.23 83.24 83.25 83.26 83.27 83.28 83.29 83.30 83.31 84.1 84.2 84.3 84.4 84.5 84.6 84.7 84.8 84.9 84.10 84.11 84.12 84.13 84.14 84.15 84.16 84.17 84.18 84.19 84.20 84.21 84.22 84.23 84.24 84.25 84.26 84.27 84.28 84.29 84.30 84.31 84.32 84.33 84.34 84.35 84.36 85.1 85.2 85.3 85.4 85.5 85.6 85.7 85.8 85.9 85.10 85.11 85.12 85.13 85.14 85.15 85.16 85.17 85.18 85.19 85.20 85.21 85.22 85.23 85.24 85.25 85.26 85.27 85.28 85.29 85.30 85.31 86.1 86.2 86.3 86.4 86.5 86.6 86.7 86.8 86.9 86.10 86.11 86.12 86.13 86.14 86.15 86.16 86.17 86.18 86.19 86.20 86.21 86.22 86.23 86.24 86.25 86.26 86.27 86.28 86.29 86.30 86.31 86.32 87.1 87.2 87.3 87.4 87.5 87.6 87.7 87.8 87.9 87.10 87.11 87.12 87.13 87.14 87.15 87.16 87.17 87.18 87.19 87.20 87.21 87.22 87.23 87.24 87.25 87.26 87.27 87.28 87.29 87.30 87.31 87.32 87.33 88.1 88.2 88.3 88.4 88.5 88.6 88.7 88.8 88.9 88.10 88.11 88.12 88.13 88.14 88.15 88.16 88.17 88.18 88.19 88.20 88.21 88.22 88.23 88.24 88.25 88.26 88.27 88.28 88.29 88.30 88.31 88.32 88.33 88.34 88.35 89.1 89.2 89.3 89.4 89.5 89.6 89.7 89.8 89.9 89.10 89.11 89.12 89.13 89.14
89.15 89.16
89.17 89.18 89.19 89.20 89.21 89.22 89.23 89.24 89.25 89.26 89.27 89.28 89.29 89.30 89.31 89.32 89.33 90.1 90.2 90.3 90.4 90.5 90.6 90.7 90.8 90.9 90.10 90.11 90.12 90.13 90.14 90.15 90.16 90.17 90.18 90.19 90.20 90.21 90.22 90.23 90.24 90.25 90.26 90.27 90.28 90.29 90.30 90.31 90.32 90.33 90.34 91.1 91.2 91.3 91.4 91.5 91.6 91.7 91.8 91.9 91.10 91.11 91.12 91.13 91.14 91.15 91.16 91.17 91.18 91.19 91.20 91.21 91.22 91.23 91.24 91.25 91.26 91.27
91.28
92.1 92.2 92.3 92.4 92.5 92.6 92.7 92.8 92.9 92.10 92.11 92.12 92.13 92.14 92.15 92.16 92.17 92.18 92.19 92.20 92.21
92.22 92.23
92.24 92.25 92.26 92.27 92.28 92.29 92.30 92.31 92.32 92.33 93.1 93.2 93.3 93.4 93.5 93.6 93.7 93.8 93.9 93.10 93.11 93.12 93.13 93.14 93.15 93.16 93.17
93.18
93.19 93.20 93.21 93.22 93.23 93.24 93.25 93.26 93.27 93.28 93.29 93.30 93.31 93.32 94.1 94.2 94.3
94.4
94.5 94.6 94.7 94.8 94.9 94.10 94.11 94.12 94.13
94.14
94.15 94.16 94.17 94.18 94.19 94.20 94.21 94.22 94.23 94.24 94.25 94.26 94.27 94.28 94.29 94.30 94.31 95.1 95.2 95.3 95.4 95.5 95.6 95.7 95.8
95.9
95.10 95.11 95.12 95.13 95.14 95.15 95.16 95.17 95.18 95.19 95.20 95.21 95.22 95.23 95.24 95.25 95.26 95.27 95.28 96.1 96.2 96.3 96.4 96.5 96.6 96.7 96.8 96.9 96.10 96.11 96.12 96.13 96.14 96.15 96.16 96.17 96.18 96.19
96.20 96.21 96.22 96.23 96.24 96.25 96.26 96.27 96.28 96.29
97.1 97.2 97.3 97.4 97.5 97.6 97.7 97.8 97.9 97.10 97.11 97.12 97.13 97.14 97.15 97.16 97.17 97.18 97.19 97.20 97.21 97.22 97.23 97.24 97.25 97.26 97.27 97.28 97.29 97.30 97.31 97.32 97.33 97.34 97.35 97.36 98.1 98.2 98.3 98.4 98.5 98.6 98.7 98.8 98.9 98.10 98.11 98.12 98.13 98.14 98.15 98.16 98.17 98.18 98.19 98.20 98.21 98.22 98.23 98.24 98.25 98.26 98.27 98.28 98.29 98.30 98.31 98.32 98.33 99.1 99.2
99.3
99.4 99.5 99.6 99.7 99.8 99.9 99.10 99.11 99.12 99.13 99.14 99.15
99.16 99.17
99.18 99.19 99.20 99.21 99.22 99.23 99.24 99.25 99.26 99.27 99.28 99.29 99.30 99.31 99.32 100.1 100.2 100.3 100.4 100.5 100.6
100.7 100.8 100.9 100.10
100.11 100.12 100.13 100.14 100.15 100.16
100.17 100.18 100.19 100.20 100.21 100.22 100.23 100.24 100.25 100.26 100.27 100.28 100.29 100.30 101.1 101.2 101.3 101.4 101.5 101.6 101.7
101.8 101.9 101.10 101.11 101.12 101.13 101.14 101.15 101.16 101.17 101.18 101.19 101.20 101.21 101.22 101.23 101.24 101.25 101.26 101.27 101.28 101.29
101.30 101.31 101.32 101.33 102.1 102.2 102.3 102.4 102.5 102.6 102.7 102.8 102.9 102.10 102.11 102.12 102.13 102.14 102.15 102.16 102.17 102.18 102.19
102.20 102.21 102.22 102.23 102.24 102.25 102.26
102.27 102.28 102.29 102.30 102.31 102.32 102.33 103.1 103.2 103.3 103.4 103.5 103.6 103.7 103.8 103.9 103.10 103.11 103.12 103.13 103.14 103.15 103.16 103.17 103.18 103.19
103.20 103.21 103.22 103.23 103.24 103.25 103.26 103.27 103.28 103.29 103.30 103.31 103.32 103.33 104.1 104.2 104.3 104.4 104.5 104.6 104.7 104.8 104.9 104.10 104.11 104.12 104.13 104.14 104.15 104.16 104.17 104.18 104.19 104.20 104.21 104.22 104.23 104.24 104.25 104.26
104.27 104.28 104.29 104.30 104.31 104.32 104.33 104.34 105.1 105.2 105.3 105.4 105.5 105.6 105.7 105.8 105.9 105.10 105.11 105.12 105.13 105.14 105.15 105.16 105.17 105.18 105.19 105.20 105.21 105.22 105.23 105.24 105.25 105.26 105.27 105.28 105.29 105.30 105.31 105.32 105.33 105.34
106.1 106.2 106.3 106.4 106.5 106.6 106.7 106.8
106.9 106.10
106.11 106.12 106.13 106.14 106.15 106.16 106.17 106.18 106.19 106.20 106.21 106.22 106.23 106.24 106.25 106.26 106.27 106.28 106.29 106.30 106.31 106.32 106.33 107.1 107.2 107.3 107.4 107.5
107.6 107.7 107.8 107.9 107.10 107.11 107.12 107.13 107.14 107.15 107.16 107.17 107.18 107.19 107.20 107.21 107.22 107.23 107.24 107.25 107.26 107.27 107.28 107.29 107.30 107.31 107.32 107.33 107.34 108.1 108.2 108.3 108.4 108.5 108.6 108.7 108.8 108.9 108.10 108.11 108.12
108.13 108.14 108.15 108.16 108.17 108.18 108.19 108.20 108.21 108.22 108.23 108.24 108.25 108.26 108.27 108.28 108.29 108.30 108.31 108.32 108.33 109.1 109.2
109.3 109.4
109.5 109.6 109.7 109.8 109.9 109.10 109.11 109.12 109.13 109.14 109.15 109.16 109.17 109.18 109.19 109.20 109.21 109.22 109.23 109.24 109.25 109.26 109.27 109.28 109.29 109.30
109.31
109.32 109.33 110.1 110.2 110.3 110.4 110.5 110.6 110.7 110.8 110.9
110.10
110.11 110.12 110.13 110.14 110.15 110.16 110.17 110.18 110.19 110.20 110.21 110.22 110.23 110.24 110.25 110.26 110.27 110.28 110.29 110.30 110.31 110.32 110.33 111.1 111.2 111.3 111.4 111.5 111.6 111.7
111.8 111.9
111.10 111.11 111.12 111.13 111.14 111.15 111.16 111.17 111.18 111.19 111.20 111.21 111.22 111.23 111.24 111.25 111.26 111.27 111.28 111.29 111.30 111.31 111.32 111.33 112.1 112.2 112.3
112.4
112.5 112.6 112.7 112.8 112.9 112.10 112.11 112.12 112.13 112.14 112.15 112.16 112.17 112.18
112.19
112.20 112.21 112.22 112.23 112.24 112.25 112.26 112.27 112.28 112.29 113.1 113.2 113.3 113.4 113.5 113.6 113.7
113.8 113.9 113.10 113.11 113.12 113.13 113.14 113.15 113.16 113.17 113.18 113.19 113.20 113.21 113.22 113.23 113.24 113.25 113.26 113.27 113.28 113.29 113.30 113.31 113.32 114.1 114.2 114.3 114.4 114.5 114.6 114.7 114.8 114.9 114.10 114.11
114.12 114.13 114.14 114.15 114.16 114.17 114.18
114.19 114.20 114.21
114.22 114.23 114.24 114.25 114.26 114.27 114.28 114.29 114.30 114.31 114.32 115.1 115.2 115.3 115.4 115.5 115.6 115.7 115.8
115.9 115.10
115.11 115.12 115.13 115.14 115.15 115.16 115.17 115.18 115.19 115.20 115.21 115.22 115.23 115.24 115.25 115.26 115.27 115.28 115.29 115.30 115.31 116.1 116.2 116.3 116.4 116.5 116.6
116.7
116.8 116.9 116.10 116.11 116.12 116.13 116.14 116.15 116.16 116.17 116.18 116.19 116.20 116.21 116.22
116.23
116.24 116.25
116.26
116.27 116.28
116.29 116.30 116.31 117.1 117.2 117.3 117.4 117.5 117.6 117.7 117.8 117.9 117.10 117.11 117.12 117.13 117.14 117.15 117.16 117.17 117.18 117.19 117.20 117.21 117.22 117.23 117.24 117.25 117.26 117.27 117.28 117.29 117.30 117.31 117.32 117.33 118.1 118.2 118.3 118.4 118.5 118.6 118.7 118.8 118.9 118.10 118.11 118.12 118.13 118.14 118.15 118.16 118.17
118.18 118.19
118.20 118.21 118.22 118.23 118.24 118.25 118.26 118.27 118.28 118.29 118.30 118.31 118.32 118.33 119.1 119.2 119.3 119.4 119.5 119.6 119.7 119.8 119.9 119.10 119.11 119.12 119.13 119.14 119.15 119.16 119.17 119.18 119.19 119.20 119.21 119.22 119.23 119.24 119.25 119.26 119.27 119.28 119.29 119.30 119.31 119.32 119.33 119.34 120.1 120.2 120.3 120.4 120.5 120.6 120.7 120.8 120.9 120.10 120.11 120.12 120.13 120.14 120.15 120.16 120.17 120.18 120.19 120.20 120.21 120.22 120.23 120.24 120.25 120.26 120.27
120.28 120.29
120.30 120.31 120.32 120.33 121.1 121.2 121.3 121.4 121.5 121.6 121.7 121.8 121.9 121.10 121.11
121.12 121.13
121.14 121.15 121.16 121.17 121.18 121.19 121.20 121.21 121.22 121.23 121.24 121.25 121.26 121.27 121.28 121.29 121.30 121.31 121.32 122.1 122.2 122.3 122.4 122.5
122.6 122.7
122.8 122.9 122.10 122.11 122.12 122.13 122.14 122.15 122.16 122.17
122.18 122.19
122.20 122.21 122.22 122.23 122.24 122.25 122.26 122.27 122.28 122.29 122.30 122.31 122.32 123.1 123.2 123.3
123.4 123.5
123.6 123.7 123.8 123.9 123.10 123.11 123.12 123.13 123.14 123.15 123.16 123.17 123.18 123.19 123.20 123.21 123.22 123.23 123.24 123.25 123.26 123.27 123.28 123.29 123.30 123.31 123.32 124.1 124.2 124.3 124.4 124.5 124.6 124.7 124.8 124.9 124.10 124.11 124.12 124.13 124.14 124.15 124.16 124.17 124.18 124.19 124.20 124.21 124.22 124.23 124.24 124.25 124.26 124.27 124.28 124.29 124.30 124.31 124.32 124.33 124.34 125.1 125.2 125.3 125.4 125.5 125.6 125.7 125.8 125.9 125.10 125.11 125.12 125.13 125.14 125.15 125.16 125.17 125.18 125.19 125.20 125.21 125.22 125.23 125.24 125.25 125.26 125.27 125.28 125.29 125.30 125.31 125.32 126.1 126.2 126.3 126.4 126.5 126.6 126.7 126.8 126.9 126.10 126.11 126.12 126.13 126.14 126.15 126.16 126.17 126.18 126.19 126.20 126.21 126.22 126.23 126.24 126.25 126.26 126.27 126.28 126.29 126.30 126.31
126.32
127.1 127.2 127.3 127.4 127.5 127.6 127.7 127.8 127.9 127.10 127.11 127.12 127.13 127.14 127.15 127.16 127.17 127.18 127.19 127.20 127.21 127.22 127.23 127.24 127.25
127.26
127.27 127.28 127.29 127.30 127.31 127.32 128.1 128.2 128.3 128.4 128.5 128.6 128.7 128.8 128.9 128.10 128.11 128.12 128.13 128.14 128.15 128.16 128.17 128.18 128.19 128.20 128.21 128.22
128.23 128.24
128.25 128.26 128.27 128.28 128.29 128.30 128.31 128.32 129.1 129.2 129.3 129.4 129.5 129.6 129.7 129.8 129.9 129.10 129.11 129.12 129.13 129.14 129.15 129.16 129.17 129.18 129.19 129.20 129.21 129.22 129.23 129.24 129.25 129.26 129.27 129.28 129.29 129.30 129.31 129.32 129.33 129.34 130.1 130.2 130.3 130.4 130.5 130.6 130.7 130.8 130.9 130.10 130.11 130.12 130.13
130.14
130.15 130.16 130.17 130.18 130.19 130.20 130.21 130.22 130.23 130.24 130.25 130.26 130.27
130.28
130.29 130.30 130.31 130.32 131.1 131.2 131.3 131.4 131.5 131.6 131.7 131.8 131.9 131.10 131.11 131.12 131.13 131.14 131.15 131.16 131.17 131.18 131.19 131.20 131.21 131.22 131.23 131.24 131.25 131.26 131.27 131.28 131.29 131.30 131.31 131.32 131.33 131.34 132.1 132.2 132.3 132.4 132.5 132.6 132.7 132.8 132.9 132.10 132.11 132.12 132.13 132.14 132.15 132.16 132.17 132.18 132.19 132.20 132.21 132.22 132.23 132.24
132.25
132.26 132.27 132.28 132.29 132.30 132.31 132.32 132.33 133.1 133.2 133.3 133.4 133.5 133.6 133.7 133.8
133.9 133.10
133.11 133.12 133.13 133.14 133.15 133.16 133.17 133.18 133.19 133.20 133.21 133.22 133.23 133.24 133.25 133.26 133.27 133.28 133.29 133.30 133.31 134.1 134.2 134.3 134.4
134.5 134.6
134.7 134.8 134.9 134.10 134.11 134.12 134.13 134.14 134.15 134.16 134.17 134.18
134.19 134.20
134.21 134.22 134.23 134.24 134.25 134.26 134.27 134.28 134.29 134.30 134.31 134.32 134.33
135.1 135.2
135.3 135.4 135.5 135.6 135.7 135.8 135.9 135.10 135.11 135.12 135.13 135.14 135.15 135.16
135.17 135.18
135.19 135.20 135.21 135.22 135.23 135.24 135.25 135.26 135.27 135.28 135.29
135.30 135.31
136.1 136.2 136.3 136.4 136.5 136.6 136.7 136.8
136.9 136.10
136.11 136.12 136.13 136.14 136.15 136.16 136.17 136.18 136.19 136.20 136.21
136.22 136.23
136.24 136.25 136.26 136.27 136.28 136.29 136.30 136.31 137.1 137.2 137.3
137.4 137.5
137.6 137.7 137.8 137.9 137.10 137.11 137.12 137.13
137.14 137.15
137.16 137.17 137.18 137.19 137.20 137.21 137.22 137.23 137.24 137.25 137.26 137.27 137.28 137.29 137.30 137.31 137.32 138.1 138.2 138.3 138.4 138.5 138.6 138.7 138.8 138.9 138.10 138.11 138.12 138.13 138.14 138.15 138.16 138.17 138.18 138.19 138.20 138.21
138.22 138.23
138.24 138.25 138.26 138.27 138.28 138.29 138.30 138.31 138.32 138.33 138.34 138.35 139.1 139.2 139.3
139.4 139.5
139.6 139.7 139.8 139.9 139.10 139.11 139.12 139.13 139.14 139.15 139.16 139.17 139.18 139.19 139.20 139.21 139.22 139.23 139.24
139.25 139.26
139.27 139.28 139.29 139.30 139.31 139.32 139.33 140.1 140.2 140.3 140.4 140.5 140.6 140.7 140.8 140.9 140.10
140.11 140.12
140.13 140.14 140.15 140.16 140.17 140.18 140.19 140.20 140.21
140.22 140.23
140.24 140.25 140.26 140.27 140.28 140.29 140.30 140.31 140.32 140.33 141.1 141.2 141.3 141.4 141.5 141.6 141.7 141.8 141.9 141.10
141.11 141.12
141.13 141.14 141.15 141.16 141.17 141.18 141.19 141.20 141.21
141.22 141.23
141.24 141.25 141.26 141.27 141.28 141.29 141.30 141.31 141.32 141.33 142.1 142.2
142.3 142.4
142.5 142.6 142.7 142.8 142.9 142.10 142.11 142.12 142.13 142.14 142.15 142.16 142.17 142.18
142.19 142.20
142.21 142.22 142.23 142.24 142.25 142.26 142.27
142.28 142.29
142.30 142.31 143.1 143.2 143.3 143.4 143.5 143.6 143.7 143.8 143.9 143.10 143.11 143.12 143.13 143.14 143.15 143.16 143.17 143.18 143.19 143.20 143.21 143.22 143.23 143.24 143.25 143.26 143.27 143.28 143.29 143.30 143.31 143.32 143.33 143.34 143.35
144.1 144.2
144.3 144.4
144.5
144.6 144.7
144.8 144.9 144.10 144.11 144.12 144.13
144.14 144.15
144.16 144.17 144.18 144.19 144.20 144.21 144.22 144.23 144.24 144.25
144.26 144.27
145.1 145.2 145.3 145.4 145.5 145.6 145.7 145.8 145.9 145.10 145.11 145.12 145.13 145.14 145.15 145.16 145.17 145.18 145.19 145.20 145.21 145.22 145.23 145.24 145.25 145.26 145.27 145.28 145.29 145.30 145.31 145.32
146.1 146.2 146.3 146.4 146.5 146.6 146.7 146.8 146.9 146.10 146.11
146.12 146.13 146.14 146.15 146.16 146.17 146.18 146.19 146.20 146.21 146.22 146.23 146.24 146.25 146.26 146.27 146.28 146.29 146.30 146.31 146.32 147.1 147.2 147.3 147.4 147.5 147.6 147.7 147.8 147.9 147.10 147.11 147.12 147.13 147.14 147.15 147.16 147.17 147.18 147.19 147.20 147.21 147.22 147.23 147.24 147.25 147.26 147.27 147.28
147.29 147.30 147.31 147.32 148.1 148.2 148.3 148.4 148.5 148.6 148.7 148.8 148.9 148.10 148.11 148.12 148.13 148.14 148.15
148.16 148.17 148.18 148.19 148.20 148.21 148.22 148.23 148.24 148.25 148.26 148.27 148.28 148.29 148.30 149.1 149.2 149.3 149.4 149.5
149.6 149.7
149.8 149.9 149.10 149.11 149.12 149.13 149.14 149.15 149.16 149.17 149.18 149.19 149.20
149.21 149.22
149.23 149.24 149.25 149.26 149.27 149.28 149.29 149.30 149.31 150.1 150.2 150.3 150.4 150.5 150.6 150.7 150.8 150.9 150.10 150.11 150.12 150.13 150.14 150.15 150.16 150.17 150.18 150.19 150.20 150.21 150.22 150.23 150.24 150.25 150.26 150.27 150.28 150.29 150.30 151.1 151.2 151.3 151.4 151.5 151.6 151.7 151.8 151.9 151.10 151.11 151.12 151.13 151.14 151.15 151.16 151.17 151.18 151.19 151.20 151.21 151.22 151.23 151.24 151.25 151.26 151.27 151.28 151.29 151.30 151.31 151.32 152.1 152.2 152.3 152.4 152.5 152.6 152.7 152.8 152.9 152.10 152.11 152.12 152.13 152.14 152.15 152.16 152.17 152.18 152.19 152.20
152.21 152.22
152.23 152.24 152.25 152.26 152.27 152.28 152.29 152.30 152.31 152.32 153.1 153.2 153.3 153.4 153.5
153.6 153.7
153.8 153.9 153.10 153.11 153.12 153.13 153.14 153.15 153.16 153.17 153.18 153.19 153.20 153.21 153.22 153.23 153.24 153.25 153.26 153.27 153.28 153.29 153.30 153.31 153.32
154.1 154.2
154.3 154.4 154.5 154.6 154.7 154.8 154.9 154.10 154.11 154.12 154.13 154.14 154.15 154.16 154.17 154.18 154.19 154.20 154.21 154.22 154.23 154.24 154.25 154.26 154.27 154.28 154.29 154.30 154.31 155.1 155.2 155.3 155.4 155.5 155.6 155.7 155.8 155.9 155.10 155.11 155.12 155.13
155.14 155.15
155.16 155.17 155.18 155.19 155.20
155.21 155.22
155.23 155.24 155.25 155.26 155.27 155.28 155.29 155.30 155.31 156.1 156.2 156.3
156.4 156.5
156.6 156.7 156.8 156.9 156.10 156.11 156.12 156.13 156.14 156.15 156.16 156.17 156.18 156.19 156.20 156.21 156.22 156.23 156.24 156.25 156.26 156.27 156.28 156.29 156.30 156.31 157.1 157.2 157.3 157.4 157.5 157.6 157.7 157.8 157.9 157.10 157.11 157.12 157.13 157.14
157.15 157.16
157.17 157.18 157.19 157.20 157.21 157.22 157.23 157.24 157.25 157.26 157.27 157.28 157.29 157.30 157.31 157.32 158.1 158.2 158.3 158.4 158.5 158.6 158.7 158.8 158.9 158.10 158.11 158.12 158.13 158.14 158.15 158.16 158.17 158.18 158.19 158.20 158.21 158.22 158.23 158.24 158.25 158.26 158.27 158.28 158.29
158.30 158.31
159.1 159.2 159.3 159.4 159.5 159.6 159.7
159.8 159.9
159.10 159.11 159.12 159.13 159.14 159.15 159.16 159.17 159.18 159.19 159.20 159.21 159.22 159.23 159.24
159.25 159.26
159.27 159.28 159.29 159.30 159.31 159.32 160.1 160.2 160.3 160.4 160.5 160.6 160.7 160.8 160.9 160.10 160.11 160.12 160.13 160.14 160.15 160.16 160.17 160.18 160.19 160.20
160.21 160.22
160.23 160.24 160.25 160.26 160.27 160.28 160.29
160.30 160.31
161.1 161.2 161.3 161.4 161.5 161.6 161.7 161.8
161.9 161.10 161.11 161.12
161.13 161.14 161.15 161.16 161.17 161.18 161.19
161.20 161.21
161.22 161.23 161.24 161.25 161.26 161.27 161.28 161.29 161.30 162.1 162.2 162.3 162.4 162.5 162.6 162.7 162.8 162.9 162.10 162.11 162.12 162.13 162.14 162.15 162.16 162.17 162.18 162.19 162.20 162.21 162.22 162.23 162.24 162.25 162.26 162.27 162.28 162.29 162.30 163.1 163.2 163.3 163.4 163.5 163.6 163.7 163.8 163.9
163.10 163.11 163.12 163.13 163.14 163.15
163.16 163.17 163.18 163.19 163.20 163.21 163.22 163.23 163.24 163.25 163.26 163.27 163.28 163.29 163.30 164.1 164.2 164.3 164.4 164.5 164.6 164.7 164.8
164.9 164.10 164.11 164.12 164.13 164.14
164.15 164.16 164.17 164.18 164.19 164.20 164.21 164.22 164.23 164.24
164.25 164.26
164.27 164.28 164.29 165.1 165.2 165.3 165.4 165.5 165.6 165.7
165.8
165.9 165.10 165.11 165.12 165.13 165.14 165.15 165.16 165.17 165.18 165.19 165.20 165.21 165.22 165.23 165.24 165.25 165.26 165.27 165.28 165.29 165.30 165.31 166.1 166.2 166.3 166.4 166.5 166.6 166.7 166.8 166.9 166.10 166.11 166.12 166.13 166.14 166.15 166.16 166.17 166.18 166.19 166.20 166.21 166.22 166.23 166.24 166.25 166.26 166.27 166.28 166.29 166.30 166.31 166.32 167.1 167.2 167.3 167.4 167.5 167.6 167.7 167.8 167.9 167.10 167.11 167.12 167.13 167.14
167.15 167.16
167.17 167.18 167.19 167.20 167.21 167.22 167.23 167.24 167.25 167.26 167.27
167.28
167.29 167.30 167.31 167.32 168.1 168.2 168.3 168.4 168.5 168.6 168.7 168.8 168.9 168.10 168.11
168.12 168.13 168.14
168.15 168.16 168.17 168.18 168.19 168.20 168.21 168.22 168.23 168.24 168.25 168.26
168.27
168.28 168.29 168.30 168.31 168.32 169.1 169.2 169.3 169.4 169.5 169.6 169.7 169.8 169.9 169.10 169.11 169.12 169.13 169.14 169.15 169.16 169.17 169.18
169.19 169.20
169.21 169.22 169.23 169.24 169.25 169.26 169.27 169.28 169.29 169.30 169.31
169.32
170.1 170.2 170.3 170.4 170.5 170.6 170.7 170.8
170.9
170.10 170.11 170.12 170.13
170.14
170.15 170.16 170.17 170.18 170.19 170.20 170.21
170.22
170.23 170.24 170.25 170.26 170.27 170.28 171.1 171.2 171.3 171.4 171.5 171.6
171.7 171.8
171.9 171.10 171.11 171.12 171.13 171.14 171.15 171.16 171.17 171.18 171.19 171.20
171.21
171.22 171.23 171.24 171.25 171.26 171.27 171.28 171.29 171.30 171.31
171.32
172.1 172.2 172.3 172.4 172.5 172.6 172.7 172.8 172.9 172.10 172.11 172.12 172.13 172.14 172.15 172.16 172.17 172.18 172.19 172.20 172.21 172.22
172.23
172.24 172.25 172.26 172.27 172.28 172.29 172.30 172.31 172.32 172.33
173.1
173.2 173.3 173.4 173.5 173.6 173.7 173.8 173.9 173.10 173.11 173.12 173.13 173.14 173.15 173.16 173.17
173.18
173.19 173.20 173.21 173.22 173.23 173.24 173.25 173.26 173.27 173.28 174.1 174.2 174.3 174.4 174.5 174.6 174.7 174.8 174.9 174.10 174.11 174.12 174.13 174.14 174.15 174.16 174.17 174.18 174.19 174.20 174.21 174.22 174.23 174.24 174.25 174.26 174.27 174.28 174.29 174.30 174.31 174.32 174.33 174.34 175.1 175.2 175.3 175.4 175.5 175.6 175.7 175.8 175.9 175.10 175.11 175.12 175.13 175.14 175.15 175.16 175.17 175.18 175.19 175.20 175.21 175.22 175.23 175.24 175.25 175.26 175.27 175.28 175.29 175.30 175.31 176.1 176.2 176.3 176.4 176.5 176.6 176.7 176.8 176.9 176.10 176.11 176.12 176.13 176.14 176.15 176.16 176.17 176.18 176.19 176.20 176.21 176.22 176.23 176.24 176.25 176.26 176.27 176.28 176.29 176.30 176.31 176.32 177.1 177.2 177.3 177.4 177.5 177.6 177.7 177.8 177.9 177.10 177.11 177.12
177.13
177.14 177.15 177.16 177.17 177.18 177.19 177.20 177.21 177.22 177.23
177.24
177.25 177.26 177.27 177.28 177.29 177.30 177.31 178.1 178.2 178.3 178.4 178.5 178.6 178.7 178.8 178.9
178.10
178.11 178.12 178.13 178.14 178.15 178.16 178.17 178.18 178.19 178.20 178.21 178.22 178.23 178.24 178.25 178.26 178.27 178.28 178.29 178.30 178.31 178.32 178.33 178.34 179.1 179.2 179.3 179.4 179.5 179.6 179.7 179.8 179.9 179.10 179.11 179.12 179.13 179.14 179.15 179.16 179.17 179.18 179.19 179.20 179.21 179.22 179.23 179.24 179.25 179.26 179.27 179.28 179.29 179.30
179.31
180.1 180.2 180.3 180.4 180.5 180.6 180.7 180.8 180.9 180.10 180.11 180.12 180.13
180.14 180.15
180.16 180.17 180.18 180.19 180.20 180.21 180.22 180.23 180.24 180.25 180.26 180.27 180.28 180.29 180.30 180.31 180.32 180.33 181.1 181.2 181.3 181.4 181.5 181.6 181.7 181.8 181.9 181.10 181.11 181.12
181.13 181.14
181.15 181.16 181.17 181.18 181.19 181.20 181.21 181.22 181.23 181.24 181.25 181.26
181.27 181.28 181.29 181.30 181.31 182.1 182.2 182.3 182.4 182.5 182.6 182.7 182.8 182.9 182.10 182.11 182.12 182.13 182.14 182.15 182.16 182.17 182.18 182.19 182.20 182.21 182.22 182.23 182.24 182.25 182.26
182.27 182.28
182.29 182.30 182.31 182.32 182.33 183.1 183.2
183.3 183.4
183.5 183.6 183.7 183.8 183.9 183.10 183.11 183.12 183.13 183.14 183.15 183.16 183.17 183.18 183.19 183.20 183.21 183.22 183.23 183.24 183.25 183.26 183.27 183.28 183.29 183.30 183.31 183.32 184.1 184.2 184.3 184.4 184.5 184.6 184.7 184.8 184.9 184.10 184.11 184.12 184.13 184.14 184.15 184.16 184.17 184.18 184.19 184.20 184.21 184.22 184.23 184.24 184.25 184.26 184.27 184.28 184.29 184.30 184.31 184.32 184.33
184.34
185.1 185.2 185.3 185.4 185.5 185.6 185.7 185.8 185.9 185.10 185.11 185.12 185.13 185.14 185.15 185.16
185.17 185.18
185.19 185.20 185.21 185.22 185.23 185.24 185.25 185.26 185.27 185.28 185.29 185.30 185.31 185.32
186.1 186.2
186.3 186.4 186.5 186.6 186.7 186.8 186.9 186.10 186.11 186.12 186.13 186.14 186.15 186.16
186.17 186.18
186.19 186.20 186.21 186.22 186.23 186.24 186.25 186.26 186.27 186.28 186.29 186.30 186.31 186.32 186.33 187.1 187.2 187.3 187.4 187.5 187.6 187.7
187.8 187.9 187.10
187.11 187.12 187.13 187.14 187.15 187.16 187.17 187.18 187.19 187.20 187.21 187.22 187.23 187.24 187.25
187.26
187.27 187.28 187.29 187.30 187.31 188.1 188.2 188.3 188.4 188.5 188.6 188.7 188.8 188.9 188.10
188.11 188.12
188.13 188.14 188.15 188.16 188.17 188.18
188.19
188.20 188.21 188.22 188.23 188.24 188.25 188.26 188.27 188.28
188.29
189.1 189.2 189.3 189.4 189.5 189.6 189.7 189.8 189.9 189.10
189.11
189.12 189.13 189.14 189.15 189.16 189.17 189.18 189.19 189.20 189.21 189.22 189.23 189.24 189.25 189.26 189.27 189.28 189.29 189.30 190.1 190.2 190.3 190.4 190.5 190.6 190.7 190.8 190.9 190.10 190.11 190.12 190.13 190.14 190.15 190.16 190.17 190.18 190.19 190.20 190.21 190.22 190.23 190.24 190.25 190.26 190.27 190.28 190.29 190.30 190.31 190.32 190.33 190.34 191.1 191.2
191.3
191.4 191.5 191.6 191.7 191.8 191.9 191.10 191.11 191.12 191.13 191.14 191.15 191.16
191.17 191.18
191.19 191.20 191.21 191.22 191.23 191.24 191.25 191.26 191.27 191.28 191.29 191.30 191.31 191.32
192.1 192.2
192.3 192.4 192.5 192.6 192.7 192.8 192.9 192.10 192.11 192.12 192.13 192.14 192.15 192.16 192.17 192.18 192.19 192.20
192.21 192.22
192.23 192.24
192.25
192.26 192.27
192.28 192.29 192.30 193.1 193.2 193.3 193.4 193.5 193.6 193.7 193.8 193.9 193.10 193.11 193.12 193.13 193.14 193.15 193.16 193.17
193.18
193.19 193.20 193.21 193.22 193.23 193.24 193.25 193.26 193.27 193.28 193.29 193.30 193.31 193.32 194.1 194.2 194.3
194.4
194.5 194.6 194.7 194.8 194.9 194.10 194.11 194.12 194.13 194.14 194.15 194.16 194.17 194.18 194.19 194.20 194.21 194.22 194.23 194.24 194.25 194.26 194.27 194.28 194.29 194.30 194.31 194.32 194.33 194.34 195.1 195.2 195.3 195.4 195.5 195.6 195.7 195.8 195.9 195.10 195.11 195.12 195.13 195.14 195.15 195.16 195.17 195.18 195.19 195.20 195.21 195.22 195.23 195.24 195.25 195.26 195.27 195.28 195.29
195.30 195.31
196.1 196.2 196.3 196.4 196.5 196.6 196.7 196.8 196.9 196.10 196.11 196.12 196.13 196.14 196.15 196.16 196.17 196.18 196.19 196.20 196.21 196.22 196.23 196.24 196.25 196.26 196.27 196.28 196.29 196.30 196.31 196.32 196.33 197.1 197.2 197.3 197.4 197.5 197.6 197.7 197.8 197.9 197.10 197.11 197.12 197.13 197.14 197.15 197.16 197.17
197.18 197.19
197.20 197.21 197.22 197.23 197.24 197.25 197.26 197.27
197.28 197.29
197.30 197.31 197.32
198.1
198.2 198.3 198.4 198.5 198.6 198.7
198.8
198.9 198.10 198.11 198.12
198.13
198.14 198.15 198.16 198.17 198.18 198.19
198.20
198.21 198.22 198.23 198.24 198.25
198.26
199.1 199.2 199.3 199.4 199.5 199.6 199.7 199.8 199.9 199.10 199.11 199.12 199.13 199.14 199.15 199.16 199.17 199.18 199.19 199.20 199.21 199.22 199.23 199.24 199.25 199.26 199.27 199.28 199.29 199.30 199.31 199.32 199.33 199.34 199.35 200.1 200.2 200.3 200.4 200.5 200.6 200.7 200.8 200.9 200.10 200.11 200.12 200.13 200.14 200.15 200.16 200.17 200.18 200.19 200.20 200.21 200.22 200.23 200.24 200.25 200.26 200.27 200.28 200.29 200.30 200.31 200.32
200.33 200.34
201.1 201.2 201.3 201.4 201.5 201.6 201.7 201.8 201.9 201.10 201.11 201.12 201.13 201.14 201.15 201.16 201.17 201.18
201.19 201.20
201.21 201.22 201.23 201.24 201.25 201.26 201.27 201.28 201.29 201.30 201.31 202.1 202.2 202.3 202.4 202.5 202.6 202.7 202.8
202.9 202.10
202.11 202.12 202.13 202.14 202.15 202.16 202.17 202.18 202.19 202.20
202.21
202.22 202.23 202.24 202.25 202.26 202.27 202.28
202.29
203.1 203.2 203.3 203.4 203.5 203.6 203.7
203.8
203.9 203.10 203.11 203.12 203.13 203.14 203.15 203.16 203.17 203.18 203.19 203.20 203.21 203.22 203.23 203.24 203.25 203.26 203.27 203.28 203.29 203.30 203.31 203.32 203.33 204.1 204.2 204.3 204.4 204.5 204.6 204.7 204.8 204.9 204.10 204.11 204.12 204.13 204.14 204.15 204.16 204.17 204.18 204.19 204.20 204.21 204.22 204.23 204.24 204.25
204.26 204.27
204.28 204.29 204.30 204.31 204.32 204.33 205.1 205.2 205.3 205.4 205.5 205.6 205.7 205.8 205.9 205.10 205.11 205.12 205.13 205.14 205.15
205.16
205.17 205.18
205.19 205.20 205.21 205.22 205.23
205.24 205.25 205.26
205.27 205.28 205.29 205.30 205.31 205.32 206.1 206.2 206.3 206.4 206.5 206.6 206.7 206.8 206.9 206.10 206.11 206.12 206.13 206.14 206.15 206.16 206.17 206.18 206.19 206.20 206.21 206.22 206.23 206.24 206.25 206.26 206.27 206.28 206.29
206.30 206.31 206.32
207.1 207.2 207.3 207.4 207.5 207.6 207.7 207.8 207.9 207.10 207.11 207.12 207.13 207.14 207.15 207.16 207.17 207.18 207.19 207.20 207.21 207.22
207.23 207.24 207.25
207.26 207.27 207.28 207.29 207.30 207.31 207.32 207.33 207.34 208.1 208.2 208.3 208.4 208.5 208.6 208.7 208.8 208.9 208.10 208.11 208.12 208.13 208.14 208.15 208.16 208.17 208.18 208.19 208.20 208.21 208.22 208.23 208.24 208.25
208.26 208.27 208.28
209.1 209.2 209.3 209.4 209.5 209.6 209.7 209.8
209.9 209.10
209.11 209.12 209.13 209.14 209.15 209.16 209.17 209.18 209.19 209.20 209.21 209.22 209.23 209.24 209.25 209.26 209.27 209.28 209.29
209.30 209.31
210.1 210.2 210.3 210.4 210.5 210.6 210.7 210.8 210.9 210.10 210.11 210.12 210.13 210.14 210.15 210.16 210.17 210.18 210.19 210.20
210.21 210.22 210.23
210.24 210.25 210.26 210.27 210.28 210.29 210.30 210.31
211.1 211.2
211.3 211.4 211.5 211.6 211.7 211.8 211.9 211.10 211.11 211.12 211.13 211.14 211.15 211.16 211.17 211.18 211.19 211.20 211.21 211.22 211.23 211.24
211.25 211.26 211.27
211.28 211.29 211.30 211.31 212.1 212.2 212.3 212.4 212.5 212.6 212.7
212.8 212.9 212.10
212.11 212.12 212.13 212.14 212.15 212.16 212.17 212.18 212.19 212.20 212.21
212.22 212.23 212.24
212.25 212.26 212.27 212.28 212.29 212.30 212.31 212.32 212.33 213.1 213.2 213.3 213.4 213.5
213.6 213.7 213.8
213.9 213.10 213.11 213.12 213.13 213.14 213.15 213.16 213.17 213.18 213.19 213.20 213.21
213.22 213.23 213.24
213.25 213.26 213.27 213.28 213.29 213.30 213.31
214.1 214.2 214.3
214.4 214.5 214.6 214.7 214.8 214.9 214.10 214.11 214.12 214.13 214.14 214.15 214.16 214.17 214.18 214.19 214.20 214.21 214.22 214.23 214.24 214.25 214.26 214.27 214.28 214.29 214.30 214.31 215.1 215.2 215.3 215.4 215.5 215.6 215.7 215.8 215.9 215.10 215.11 215.12 215.13 215.14 215.15 215.16 215.17 215.18 215.19 215.20 215.21
215.22 215.23 215.24
215.25 215.26 215.27 215.28 215.29 215.30 215.31 215.32 216.1 216.2 216.3 216.4 216.5 216.6 216.7 216.8 216.9 216.10 216.11 216.12 216.13 216.14 216.15 216.16 216.17 216.18 216.19 216.20 216.21 216.22 216.23 216.24 216.25 216.26 216.27 216.28
216.29 216.30 216.31
216.32 216.33 216.34 217.1 217.2 217.3 217.4 217.5 217.6 217.7 217.8 217.9 217.10 217.11 217.12 217.13 217.14 217.15 217.16 217.17 217.18 217.19 217.20 217.21 217.22 217.23 217.24 217.25 217.26 217.27 217.28 217.29 217.30
217.31 217.32 217.33
218.1 218.2 218.3 218.4 218.5 218.6 218.7 218.8 218.9 218.10 218.11 218.12 218.13 218.14 218.15 218.16 218.17 218.18 218.19 218.20 218.21 218.22 218.23 218.24 218.25 218.26 218.27 218.28 218.29 218.30 218.31 218.32
219.1 219.2 219.3
219.4 219.5 219.6 219.7 219.8 219.9 219.10 219.11 219.12 219.13 219.14 219.15 219.16 219.17 219.18 219.19 219.20 219.21 219.22 219.23 219.24 219.25 219.26 219.27 219.28 219.29 219.30 219.31 219.32 219.33 219.34 220.1 220.2
220.3 220.4 220.5
220.6 220.7 220.8 220.9 220.10 220.11 220.12 220.13 220.14 220.15 220.16 220.17 220.18 220.19 220.20 220.21 220.22 220.23 220.24 220.25 220.26 220.27 220.28 220.29 220.30 220.31 220.32 221.1 221.2 221.3 221.4 221.5 221.6 221.7 221.8 221.9 221.10
221.11 221.12 221.13
221.14 221.15 221.16 221.17 221.18 221.19 221.20 221.21 221.22
221.23 221.24 221.25
221.26 221.27 221.28 221.29 221.30 221.31 221.32 221.33 222.1 222.2 222.3 222.4 222.5 222.6 222.7 222.8 222.9 222.10 222.11 222.12 222.13 222.14 222.15
222.16 222.17 222.18
222.19 222.20 222.21 222.22 222.23 222.24 222.25 222.26 222.27 222.28 222.29 222.30 222.31 222.32 222.33 223.1 223.2 223.3 223.4 223.5 223.6 223.7 223.8 223.9 223.10 223.11 223.12 223.13
223.14 223.15 223.16
223.17 223.18 223.19 223.20 223.21 223.22 223.23 223.24 223.25 223.26 223.27 223.28 223.29 223.30 223.31 223.32 223.33 224.1 224.2 224.3 224.4 224.5 224.6 224.7
224.8 224.9 224.10
224.11 224.12 224.13 224.14 224.15 224.16 224.17 224.18 224.19 224.20 224.21 224.22 224.23 224.24 224.25 224.26 224.27 224.28 224.29 224.30 224.31 224.32 224.33 225.1 225.2 225.3 225.4 225.5 225.6 225.7 225.8
225.9 225.10 225.11
225.12 225.13 225.14 225.15 225.16 225.17 225.18 225.19 225.20 225.21 225.22 225.23 225.24 225.25 225.26 225.27 225.28 225.29 225.30 225.31 225.32 225.33 225.34 226.1 226.2 226.3 226.4 226.5 226.6 226.7 226.8 226.9 226.10 226.11 226.12
226.13 226.14 226.15
226.16 226.17 226.18 226.19 226.20 226.21 226.22
226.23 226.24 226.25
226.26 226.27
226.28 226.29 226.30 226.31 227.1 227.2 227.3 227.4 227.5 227.6
227.7 227.8
227.9 227.10 227.11 227.12 227.13 227.14 227.15 227.16 227.17 227.18 227.19 227.20 227.21 227.22 227.23 227.24 227.25 227.26 227.27 227.28 227.29 227.30 227.31 227.32 228.1 228.2 228.3 228.4 228.5 228.6 228.7 228.8 228.9 228.10 228.11 228.12 228.13 228.14 228.15 228.16 228.17 228.18 228.19 228.20 228.21 228.22 228.23 228.24 228.25 228.26 228.27 228.28 228.29 228.30 228.31 229.1 229.2 229.3 229.4 229.5 229.6 229.7 229.8 229.9 229.10 229.11 229.12 229.13 229.14 229.15 229.16 229.17 229.18 229.19 229.20 229.21
229.22 229.23
229.24 229.25 229.26 229.27 229.28 229.29 229.30 229.31 230.1 230.2 230.3 230.4 230.5 230.6 230.7 230.8 230.9 230.10 230.11 230.12 230.13 230.14 230.15 230.16 230.17 230.18 230.19 230.20 230.21 230.22 230.23 230.24 230.25 230.26
230.27 230.28
231.1 231.2 231.3 231.4 231.5 231.6
231.7 231.8
231.9 231.10 231.11 231.12 231.13 231.14 231.15 231.16 231.17 231.18 231.19 231.20 231.21
231.22
231.23 231.24 231.25 231.26 231.27 231.28 231.29 231.30 231.31 231.32 232.1 232.2 232.3 232.4 232.5 232.6 232.7 232.8 232.9 232.10 232.11 232.12 232.13 232.14 232.15 232.16 232.17 232.18 232.19 232.20 232.21 232.22 232.23 232.24 232.25 232.26 232.27 232.28 232.29 232.30 232.31 232.32 233.1 233.2 233.3 233.4 233.5 233.6 233.7 233.8 233.9 233.10 233.11 233.12 233.13 233.14 233.15
233.16
233.17 233.18 233.19 233.20 233.21 233.22 233.23 233.24 233.25 233.26 233.27 233.28 233.29 233.30 233.31 233.32 234.1 234.2 234.3 234.4 234.5 234.6 234.7 234.8 234.9 234.10 234.11 234.12 234.13 234.14 234.15
234.16
234.17 234.18 234.19 234.20 234.21 234.22 234.23 234.24 234.25 234.26 234.27 234.28 234.29 234.30 234.31 234.32 234.33 235.1 235.2 235.3 235.4 235.5 235.6 235.7 235.8 235.9 235.10 235.11
235.12 235.13
235.14 235.15 235.16 235.17 235.18 235.19 235.20 235.21 235.22 235.23 235.24 235.25 235.26 235.27 235.28 235.29 235.30 236.1 236.2 236.3 236.4 236.5 236.6 236.7 236.8 236.9 236.10 236.11 236.12 236.13 236.14 236.15 236.16 236.17 236.18 236.19 236.20 236.21 236.22 236.23 236.24 236.25 236.26 236.27 236.28 236.29 236.30 237.1 237.2 237.3 237.4 237.5 237.6 237.7 237.8
237.9 237.10 237.11
237.12 237.13 237.14 237.15 237.16 237.17 237.18 237.19 237.20 237.21 237.22 237.23 237.24 237.25 237.26 237.27 237.28 237.29 237.30 237.31 237.32 237.33 238.1 238.2 238.3 238.4 238.5 238.6 238.7 238.8 238.9 238.10 238.11 238.12 238.13 238.14 238.15 238.16 238.17 238.18 238.19 238.20 238.21 238.22
238.23 238.24 238.25
238.26 238.27 238.28 238.29 238.30 238.31 238.32
239.1 239.2 239.3
239.4 239.5 239.6 239.7 239.8 239.9 239.10 239.11 239.12 239.13 239.14 239.15 239.16 239.17 239.18 239.19 239.20 239.21 239.22 239.23 239.24 239.25 239.26 239.27 239.28 239.29 239.30 239.31 239.32 239.33 239.34 240.1 240.2 240.3 240.4 240.5 240.6 240.7 240.8 240.9 240.10 240.11 240.12 240.13 240.14 240.15 240.16 240.17 240.18 240.19 240.20 240.21 240.22 240.23 240.24 240.25 240.26 240.27 240.28 240.29 240.30 240.31 240.32 240.33 241.1 241.2 241.3 241.4 241.5 241.6 241.7 241.8 241.9 241.10 241.11 241.12 241.13 241.14 241.15 241.16 241.17 241.18 241.19 241.20 241.21 241.22 241.23 241.24 241.25 241.26 241.27 241.28 241.29 242.1 242.2 242.3 242.4 242.5 242.6 242.7 242.8 242.9 242.10 242.11 242.12 242.13 242.14 242.15
242.16 242.17 242.18
242.19 242.20 242.21 242.22 242.23 242.24
242.25 242.26 242.27
242.28 242.29 242.30 242.31
243.1 243.2 243.3 243.4
243.5 243.6 243.7 243.8 243.9 243.10
243.11 243.12 243.13
243.14 243.15 243.16 243.17 243.18 243.19 243.20 243.21 243.22
243.23 243.24 243.25
243.26 243.27 243.28 243.29 243.30 243.31
244.1 244.2 244.3
244.4 244.5 244.6 244.7 244.8 244.9 244.10
244.11 244.12 244.13
244.14 244.15 244.16 244.17 244.18 244.19 244.20
244.21 244.22
244.23 244.24 244.25 244.26 244.27 244.28 244.29 244.30 244.31 244.32
245.1 245.2
245.3 245.4 245.5 245.6 245.7 245.8 245.9 245.10 245.11 245.12
245.13 245.14
245.15 245.16 245.17 245.18 245.19 245.20 245.21 245.22
245.23 245.24 245.25
245.26 245.27 245.28 245.29 245.30 245.31 246.1 246.2 246.3 246.4 246.5
246.6 246.7
246.8 246.9 246.10 246.11 246.12 246.13 246.14 246.15 246.16 246.17 246.18 246.19 246.20 246.21 246.22 246.23 246.24 246.25 246.26 246.27 246.28 246.29 246.30 246.31 246.32 246.33 247.1 247.2
247.3 247.4 247.5 247.6 247.7
247.8 247.9 247.10 247.11 247.12 247.13 247.14 247.15 247.16 247.17 247.18 247.19
247.20 247.21 247.22
247.23 247.24
247.25 247.26 247.27 247.28 247.29 247.30 247.31 247.32 248.1 248.2 248.3 248.4 248.5 248.6 248.7
248.8 248.9 248.10 248.11 248.12 248.13 248.14 248.15 248.16 248.17 248.18 248.19 248.20 248.21 248.22 248.23 248.24 248.25 248.26 248.27 248.28 248.29 248.30
248.31 248.32 249.1 249.2 249.3 249.4 249.5 249.6 249.7 249.8 249.9 249.10 249.11 249.12 249.13 249.14 249.15 249.16 249.17 249.18 249.19 249.20 249.21 249.22 249.23 249.24
249.25 249.26 249.27 249.28 249.29 249.30 249.31 250.1 250.2 250.3 250.4 250.5 250.6 250.7 250.8 250.9 250.10 250.11 250.12 250.13 250.14 250.15 250.16 250.17 250.18 250.19
250.20 250.21 250.22 250.23 250.24 250.25 250.26 250.27 250.28 250.29 250.30 250.31 250.32 251.1 251.2 251.3 251.4 251.5 251.6 251.7 251.8 251.9 251.10 251.11 251.12 251.13 251.14 251.15 251.16 251.17 251.18 251.19
251.20 251.21 251.22 251.23 251.24 251.25 251.26 251.27 251.28
252.1 252.2 252.3 252.4 252.5 252.6 252.7 252.8 252.9 252.10
252.11 252.12
252.13 252.14 252.15 252.16 252.17 252.18 252.19
252.20 252.21 252.22 252.23
252.24 252.25 252.26 252.27 252.28 252.29 252.30 253.1 253.2 253.3 253.4 253.5 253.6 253.7 253.8 253.9 253.10 253.11 253.12 253.13 253.14 253.15 253.16 253.17 253.18 253.19 253.20
253.21 253.22
253.23 253.24 253.25 253.26 253.27
253.28
253.29 253.30 253.31 254.1 254.2
254.3
254.4 254.5 254.6 254.7 254.8 254.9 254.10 254.11 254.12 254.13 254.14 254.15 254.16 254.17 254.18 254.19 254.20 254.21 254.22 254.23 254.24 254.25 254.26 254.27 254.28 254.29
254.30
255.1 255.2 255.3 255.4 255.5 255.6 255.7 255.8 255.9 255.10 255.11 255.12 255.13
255.14
255.15 255.16 255.17 255.18 255.19
255.20
255.21 255.22
255.23
255.24 255.25
255.26 255.27 255.28 256.1 256.2 256.3 256.4 256.5 256.6 256.7 256.8 256.9 256.10 256.11 256.12 256.13 256.14 256.15 256.16 256.17 256.18 256.19 256.20 256.21 256.22 256.23 256.24 256.25 256.26 256.27 256.28 256.29 256.30 256.31 256.32 256.33 256.34 257.1 257.2 257.3 257.4 257.5 257.6 257.7 257.8 257.9 257.10 257.11 257.12 257.13 257.14 257.15 257.16 257.17 257.18 257.19 257.20 257.21 257.22 257.23 257.24 257.25 257.26
257.27 257.28
258.1 258.2 258.3 258.4 258.5 258.6 258.7 258.8 258.9 258.10 258.11 258.12 258.13 258.14 258.15 258.16 258.17 258.18 258.19 258.20 258.21 258.22 258.23 258.24 258.25
258.26 258.27
258.28 258.29 258.30 258.31 258.32 258.33 259.1 259.2 259.3 259.4 259.5 259.6 259.7 259.8 259.9 259.10 259.11
259.12 259.13
259.14 259.15 259.16 259.17 259.18 259.19 259.20 259.21 259.22 259.23 259.24 259.25 259.26 259.27 259.28 259.29 259.30 259.31 259.32
260.1 260.2
260.3 260.4 260.5 260.6 260.7 260.8 260.9 260.10 260.11 260.12 260.13 260.14 260.15 260.16 260.17 260.18 260.19 260.20 260.21 260.22
260.23
260.24 260.25 260.26 260.27 260.28 260.29 260.30 260.31 261.1 261.2 261.3 261.4 261.5 261.6 261.7 261.8 261.9 261.10 261.11
261.12 261.13
261.14 261.15 261.16 261.17 261.18 261.19 261.20 261.21 261.22 261.23 261.24 261.25 261.26 261.27 261.28 261.29 261.30 261.31 261.32 262.1 262.2 262.3 262.4 262.5 262.6 262.7 262.8 262.9 262.10 262.11 262.12 262.13 262.14 262.15
262.16 262.17
262.18 262.19 262.20 262.21 262.22 262.23 262.24 262.25 262.26 262.27 262.28 262.29 262.30 262.31 262.32 262.33 262.34
263.1
263.2 263.3 263.4 263.5 263.6 263.7 263.8 263.9 263.10 263.11
263.12 263.13
263.14 263.15 263.16 263.17 263.18 263.19 263.20 263.21 263.22 263.23 263.24
263.25
263.26 263.27 263.28 263.29 263.30 263.31 263.32 264.1 264.2 264.3 264.4 264.5 264.6 264.7 264.8 264.9 264.10 264.11 264.12 264.13
264.14 264.15
264.16 264.17 264.18 264.19 264.20 264.21 264.22 264.23 264.24 264.25 264.26 264.27 264.28 264.29 264.30 264.31 264.32 264.33 265.1 265.2 265.3 265.4 265.5 265.6 265.7 265.8 265.9 265.10 265.11 265.12 265.13 265.14 265.15 265.16 265.17 265.18 265.19 265.20
265.21 265.22
265.23 265.24
265.25 265.26 265.27 265.28 265.29 265.30 265.31 265.32 266.1 266.2
266.3
266.4 266.5 266.6 266.7 266.8 266.9 266.10 266.11 266.12 266.13 266.14 266.15 266.16
266.17
266.18 266.19 266.20 266.21 266.22 266.23 266.24
266.25
266.26 266.27 266.28 266.29 266.30 266.31 267.1 267.2 267.3 267.4 267.5 267.6 267.7 267.8 267.9 267.10 267.11 267.12 267.13 267.14 267.15 267.16 267.17 267.18 267.19 267.20 267.21 267.22 267.23 267.24 267.25 267.26 267.27 267.28 267.29 267.30 267.31 267.32 267.33 268.1 268.2 268.3 268.4 268.5 268.6 268.7 268.8 268.9 268.10 268.11 268.12 268.13 268.14 268.15 268.16 268.17 268.18 268.19 268.20 268.21 268.22 268.23 268.24 268.25 268.26 268.27 268.28 268.29 268.30 268.31 268.32 269.1 269.2
269.3
269.4 269.5 269.6 269.7 269.8 269.9 269.10 269.11 269.12 269.13 269.14 269.15 269.16 269.17 269.18 269.19 269.20 269.21 269.22 269.23 269.24 269.25 269.26 269.27 269.28 269.29 269.30 269.31 269.32 270.1 270.2 270.3 270.4 270.5 270.6 270.7 270.8
270.9 270.10 270.11
270.12 270.13 270.14 270.15 270.16 270.17 270.18 270.19 270.20 270.21 270.22 270.23 270.24 270.25 270.26 270.27 270.28 270.29 270.30 270.31
270.32 270.33
271.1 271.2 271.3 271.4 271.5 271.6 271.7 271.8 271.9
271.10 271.11 271.12 271.13 271.14 271.15 271.16 271.17 271.18 271.19 271.20 271.21 271.22 271.23 271.24 271.25 271.26 271.27 271.28 271.29 271.30 271.31 271.32 271.33 272.1 272.2 272.3 272.4 272.5 272.6 272.7 272.8 272.9 272.10 272.11 272.12 272.13 272.14 272.15 272.16 272.17 272.18 272.19 272.20 272.21 272.22 272.23 272.24 272.25 272.26 272.27 272.28 272.29 272.30 272.31 272.32 272.33 272.34 273.1 273.2
273.3
273.4 273.5 273.6 273.7 273.8 273.9 273.10 273.11 273.12 273.13 273.14 273.15 273.16 273.17 273.18 273.19 273.20 273.21 273.22 273.23 273.24 273.25 273.26 273.27 273.28 273.29 273.30 273.31 273.32 274.1 274.2 274.3 274.4
274.5 274.6
274.7 274.8 274.9 274.10
274.11 274.12
274.13 274.14 274.15 274.16 274.17 274.18
274.19 274.20
274.21 274.22 274.23 274.24 274.25 274.26 274.27 274.28 275.1 275.2 275.3
275.4 275.5
275.6 275.7 275.8 275.9 275.10 275.11 275.12 275.13 275.14 275.15 275.16 275.17 275.18 275.19 275.20 275.21 275.22 275.23 275.24 275.25 275.26 275.27 275.28 275.29 275.30 275.31 275.32 276.1 276.2 276.3 276.4 276.5 276.6 276.7 276.8 276.9 276.10 276.11 276.12 276.13 276.14 276.15 276.16 276.17 276.18 276.19 276.20 276.21 276.22
276.23 276.24
276.25 276.26 276.27 276.28 276.29 276.30 276.31 276.32 277.1 277.2 277.3 277.4 277.5 277.6 277.7 277.8 277.9 277.10 277.11 277.12 277.13 277.14 277.15 277.16 277.17 277.18
277.19 277.20
277.21 277.22 277.23 277.24 277.25 277.26 277.27 277.28 277.29 277.30 277.31 277.32 277.33 278.1 278.2 278.3 278.4 278.5 278.6 278.7 278.8 278.9 278.10 278.11 278.12 278.13 278.14 278.15 278.16 278.17 278.18 278.19 278.20 278.21 278.22 278.23 278.24 278.25 278.26 278.27 278.28 278.29
278.30
278.31 278.32 278.33 278.34 278.35 278.36 278.37 279.1 279.2 279.3 279.4 279.5 279.6 279.7 279.8 279.9 279.10 279.11 279.12 279.13 279.14 279.15 279.16 279.17 279.18 279.19 279.20 279.21 279.22 279.23
279.24
279.25 279.26 279.27 279.28 279.29 279.30 279.31 279.32 280.1 280.2 280.3 280.4 280.5 280.6 280.7 280.8 280.9 280.10 280.11 280.12 280.13 280.14 280.15 280.16 280.17 280.18 280.19 280.20 280.21 280.22 280.23 280.24 280.25 280.26 280.27 280.28
280.29
280.30 280.31 280.32 280.33 280.34 281.1 281.2 281.3 281.4 281.5 281.6 281.7 281.8 281.9 281.10 281.11 281.12 281.13 281.14 281.15 281.16 281.17 281.18 281.19 281.20 281.21
281.22 281.23
281.24 281.25 281.26 281.27 281.28 281.29 281.30 281.31 282.1 282.2 282.3 282.4 282.5 282.6 282.7 282.8 282.9 282.10 282.11 282.12 282.13 282.14 282.15 282.16 282.17 282.18 282.19 282.20 282.21 282.22 282.23 282.24
282.25 282.26
282.27 282.28 282.29 282.30 282.31 282.32 282.33 283.1 283.2 283.3
283.4 283.5 283.6
283.7 283.8 283.9 283.10 283.11 283.12 283.13 283.14 283.15
283.16
283.17 283.18 283.19 283.20 283.21 283.22 283.23 283.24 283.25 283.26 283.27 283.28 283.29 283.30 283.31 284.1 284.2 284.3 284.4 284.5 284.6 284.7 284.8
284.9 284.10
284.11 284.12 284.13
284.14
284.15 284.16 284.17 284.18 284.19
284.20 284.21 284.22 284.23
284.24 284.25
284.26 284.27 284.28 284.29 284.30 285.1 285.2
285.3 285.4 285.5 285.6 285.7 285.8 285.9 285.10 285.11 285.12 285.13 285.14 285.15 285.16 285.17 285.18 285.19 285.20 285.21 285.22 285.23 285.24 285.25 285.26
285.27 285.28
285.29 285.30 286.1 286.2 286.3 286.4 286.5 286.6 286.7 286.8 286.9 286.10 286.11 286.12 286.13 286.14 286.15 286.16 286.17 286.18 286.19 286.20 286.21 286.22 286.23 286.24 286.25 286.26 286.27 286.28 286.29 286.30 286.31 287.1 287.2 287.3 287.4 287.5 287.6 287.7 287.8 287.9 287.10 287.11 287.12 287.13 287.14 287.15 287.16 287.17 287.18 287.19 287.20 287.21 287.22 287.23 287.24 287.25 287.26 287.27 287.28 287.29 287.30 287.31 287.32 287.33 287.34 288.1 288.2 288.3 288.4 288.5 288.6 288.7
288.8
288.9 288.10 288.11 288.12 288.13 288.14 288.15 288.16 288.17 288.18 288.19 288.20 288.21 288.22
288.23 288.24
288.25 288.26 288.27 288.28 288.29 288.30 288.31 289.1 289.2 289.3 289.4 289.5
289.6 289.7
289.8 289.9 289.10 289.11 289.12 289.13 289.14 289.15 289.16 289.17 289.18
289.19
289.20 289.21 289.22 289.23 289.24 289.25 289.26 289.27 289.28 289.29 289.30
289.31
290.1 290.2 290.3 290.4 290.5 290.6 290.7 290.8 290.9 290.10 290.11 290.12 290.13
290.14
290.15 290.16 290.17 290.18
290.19
290.20 290.21 290.22 290.23 290.24
290.25
290.26 290.27 290.28 290.29 290.30 291.1 291.2 291.3 291.4 291.5 291.6 291.7 291.8 291.9 291.10 291.11 291.12 291.13
291.14 291.15
291.16 291.17
291.18 291.19 291.20 291.21 291.22 291.23 291.24 291.25 291.26 291.27 291.28 291.29 291.30 291.31 292.1 292.2 292.3 292.4 292.5 292.6 292.7 292.8 292.9 292.10 292.11 292.12 292.13 292.14 292.15 292.16 292.17 292.18 292.19 292.20 292.21 292.22 292.23 292.24 292.25 292.26 292.27 292.28 292.29 292.30 292.31 292.32
293.1 293.2
293.3 293.4 293.5 293.6 293.7 293.8
293.9 293.10
293.11 293.12 293.13 293.14 293.15 293.16
293.17 293.18
293.19 293.20
293.21 293.22 293.23 293.24 293.25 293.26 293.27 293.28 293.29 293.30 294.1 294.2 294.3 294.4 294.5 294.6 294.7 294.8 294.9 294.10 294.11 294.12 294.13 294.14 294.15 294.16
294.17 294.18 294.19
294.20 294.21 294.22 294.23 294.24 294.25 294.26 294.27 294.28 294.29 294.30 295.1 295.2 295.3 295.4 295.5 295.6 295.7 295.8 295.9 295.10 295.11
295.12 295.13
295.14 295.15 295.16 295.17 295.18 295.19 295.20 295.21 295.22 295.23 295.24 295.25 295.26 295.27 295.28 295.29
295.30 295.31
296.1 296.2 296.3 296.4 296.5 296.6 296.7 296.8 296.9 296.10 296.11 296.12 296.13 296.14
296.15 296.16
296.17 296.18 296.19
296.20 296.21 296.22 296.23 296.24 296.25 296.26 296.27 296.28 296.29 296.30 296.31 297.1 297.2
297.3
297.4 297.5 297.6 297.7 297.8 297.9 297.10 297.11 297.12 297.13 297.14 297.15 297.16 297.17 297.18 297.19
297.20 297.21
297.22 297.23 297.24 297.25 297.26 297.27 297.28 297.29 297.30 297.31 297.32 298.1 298.2 298.3 298.4 298.5 298.6 298.7 298.8 298.9 298.10 298.11 298.12 298.13 298.14 298.15 298.16 298.17 298.18 298.19 298.20 298.21 298.22 298.23 298.24 298.25 298.26 298.27 298.28 298.29 298.30 298.31 298.32 298.33 299.1 299.2 299.3 299.4 299.5 299.6 299.7 299.8 299.9 299.10 299.11
299.12 299.13 299.14
299.15 299.16 299.17 299.18 299.19 299.20 299.21 299.22 299.23 299.24 299.25 299.26 299.27 299.28 299.29 299.30 299.31 299.32 299.33 300.1 300.2 300.3 300.4 300.5 300.6 300.7
300.8 300.9
300.10 300.11 300.12 300.13 300.14 300.15 300.16 300.17 300.18 300.19 300.20 300.21 300.22 300.23 300.24 300.25 300.26 300.27 300.28 300.29 300.30 300.31 300.32 301.1 301.2 301.3 301.4 301.5 301.6 301.7
301.8 301.9
301.10 301.11 301.12 301.13 301.14 301.15 301.16 301.17 301.18 301.19 301.20 301.21 301.22 301.23 301.24 301.25 301.26 301.27 301.28 301.29 301.30 301.31 301.32 302.1 302.2 302.3 302.4 302.5 302.6 302.7 302.8 302.9 302.10 302.11 302.12 302.13 302.14
302.15 302.16
302.17 302.18 302.19 302.20 302.21 302.22 302.23 302.24 302.25 302.26 302.27 302.28 302.29 302.30 302.31 303.1 303.2 303.3 303.4 303.5 303.6 303.7 303.8 303.9 303.10 303.11
303.12
303.13 303.14 303.15 303.16 303.17 303.18 303.19 303.20 303.21 303.22 303.23 303.24 303.25 303.26 303.27 303.28 303.29 303.30 303.31 303.32 304.1 304.2
304.3
304.4 304.5 304.6 304.7 304.8 304.9 304.10 304.11
304.12 304.13
304.14 304.15 304.16 304.17 304.18 304.19 304.20 304.21 304.22 304.23 304.24 304.25 304.26 304.27 304.28
304.29 304.30
305.1 305.2 305.3 305.4 305.5 305.6 305.7 305.8 305.9 305.10 305.11 305.12 305.13 305.14 305.15 305.16 305.17 305.18 305.19
305.20
305.21 305.22 305.23 305.24 305.25 305.26 305.27 305.28 305.29 305.30 305.31 305.32 306.1 306.2 306.3 306.4 306.5 306.6 306.7 306.8 306.9 306.10 306.11 306.12 306.13 306.14 306.15 306.16 306.17 306.18 306.19 306.20 306.21 306.22 306.23 306.24 306.25 306.26 306.27 306.28 306.29 306.30 306.31 306.32 306.33 306.34 307.1 307.2 307.3 307.4 307.5 307.6 307.7 307.8 307.9 307.10 307.11 307.12 307.13 307.14 307.15 307.16 307.17
307.18
307.19 307.20 307.21 307.22 307.23 307.24
307.25
307.26 307.27 307.28 307.29 307.30 307.31 308.1 308.2 308.3 308.4 308.5 308.6 308.7 308.8 308.9 308.10 308.11 308.12 308.13 308.14 308.15 308.16 308.17
308.18 308.19
308.20 308.21 308.22 308.23 308.24 308.25 308.26 308.27 308.28 308.29 308.30 308.31
308.32 308.33
309.1 309.2 309.3 309.4 309.5 309.6 309.7 309.8 309.9 309.10 309.11 309.12 309.13 309.14 309.15 309.16
309.17 309.18
309.19 309.20 309.21 309.22 309.23 309.24 309.25 309.26 309.27 309.28 309.29 309.30 309.31 310.1 310.2 310.3 310.4 310.5 310.6 310.7 310.8 310.9 310.10 310.11 310.12 310.13 310.14 310.15 310.16 310.17 310.18 310.19 310.20 310.21 310.22 310.23 310.24 310.25 310.26 310.27 310.28 310.29 310.30 310.31 310.32 311.1 311.2 311.3
311.4 311.5
311.6 311.7 311.8 311.9 311.10 311.11 311.12 311.13 311.14 311.15 311.16 311.17 311.18 311.19 311.20 311.21 311.22 311.23 311.24 311.25 311.26
311.27 311.28
311.29 311.30 311.31
312.1 312.2 312.3 312.4
312.5 312.6 312.7
312.8 312.9 312.10 312.11 312.12 312.13 312.14 312.15 312.16 312.17 312.18 312.19 312.20 312.21 312.22 312.23 312.24 312.25 312.26 312.27 312.28 312.29 312.30 312.31 312.32 313.1 313.2 313.3
313.4
313.5 313.6 313.7 313.8 313.9 313.10 313.11 313.12 313.13 313.14 313.15
313.16
313.17 313.18 313.19 313.20 313.21 313.22 313.23 313.24 313.25 313.26 313.27 313.28 313.29 313.30 314.1 314.2 314.3 314.4
314.5
314.6 314.7 314.8 314.9 314.10 314.11 314.12 314.13 314.14 314.15 314.16 314.17 314.18 314.19 314.20 314.21 314.22 314.23
314.24 314.25
314.26 314.27 314.28 314.29 314.30 314.31 314.32
315.1
315.2 315.3 315.4
315.5
315.6 315.7 315.8
315.9
315.10 315.11 315.12 315.13 315.14 315.15 315.16 315.17 315.18
315.19
315.20 315.21 315.22 315.23 315.24 315.25 315.26 315.27 315.28 316.1 316.2 316.3 316.4 316.5 316.6 316.7 316.8 316.9 316.10 316.11 316.12 316.13 316.14 316.15 316.16 316.17 316.18 316.19 316.20
316.21 316.22
316.23 316.24 316.25 316.26 316.27 316.28 316.29
316.30
317.1 317.2 317.3 317.4 317.5 317.6 317.7 317.8 317.9 317.10 317.11 317.12 317.13 317.14 317.15 317.16 317.17 317.18 317.19 317.20 317.21 317.22 317.23 317.24 317.25 317.26 317.27 317.28 317.29 317.30 317.31 317.32 317.33 317.34 318.1 318.2 318.3
318.4 318.5
318.6 318.7 318.8 318.9 318.10 318.11 318.12 318.13 318.14 318.15 318.16 318.17 318.18 318.19 318.20 318.21 318.22 318.23 318.24 318.25 318.26 318.27 318.28 318.29 318.30 318.31 318.32 319.1 319.2 319.3 319.4 319.5 319.6 319.7 319.8 319.9 319.10 319.11 319.12 319.13 319.14 319.15 319.16 319.17 319.18 319.19 319.20 319.21 319.22 319.23 319.24 319.25
319.26
319.27 319.28 319.29 319.30 319.31
320.1
320.2 320.3 320.4 320.5 320.6 320.7 320.8 320.9 320.10 320.11 320.12 320.13 320.14
320.15
320.16 320.17 320.18 320.19
320.20
320.21 320.22 320.23 320.24 320.25 320.26 320.27 320.28
320.29
321.1 321.2 321.3
321.4 321.5 321.6 321.7 321.8 321.9 321.10 321.11 321.12 321.13
321.14
321.15 321.16 321.17 321.18 321.19 321.20 321.21 321.22 321.23 321.24 321.25 321.26 321.27
321.28
322.1 322.2 322.3 322.4 322.5 322.6
322.7
322.8 322.9 322.10 322.11 322.12 322.13
322.14
322.15 322.16 322.17 322.18 322.19 322.20
322.21
322.22 322.23 322.24 322.25 322.26 322.27 322.28
322.29
323.1 323.2 323.3 323.4 323.5 323.6 323.7 323.8 323.9 323.10 323.11 323.12 323.13
323.14 323.15 323.16
323.17 323.18 323.19 323.20 323.21 323.22
323.23
323.24 323.25 323.26 323.27 323.28 323.29 323.30
323.31
324.1 324.2 324.3 324.4 324.5 324.6 324.7 324.8 324.9 324.10
324.11 324.12
324.13 324.14 324.15 324.16 324.17 324.18 324.19 324.20 324.21 324.22 324.23 324.24 324.25 324.26 324.27 324.28 324.29 324.30 324.31 324.32
325.1
325.2 325.3 325.4 325.5 325.6 325.7 325.8 325.9 325.10 325.11 325.12 325.13 325.14 325.15 325.16 325.17 325.18 325.19 325.20 325.21 325.22 325.23 325.24 325.25 325.26 325.27 325.28 325.29 325.30 325.31 325.32
326.1
326.2 326.3 326.4 326.5
326.6
326.7 326.8 326.9 326.10 326.11 326.12 326.13 326.14 326.15
326.16
326.17 326.18 326.19 326.20 326.21 326.22 326.23
326.24
326.25 326.26 326.27 326.28 326.29 327.1 327.2 327.3 327.4
327.5 327.6
327.7 327.8 327.9 327.10 327.11 327.12 327.13 327.14 327.15 327.16 327.17 327.18 327.19 327.20 327.21 327.22 327.23 327.24 327.25 327.26 327.27 327.28 327.29 327.30 327.31 327.32 328.1 328.2 328.3 328.4 328.5 328.6 328.7 328.8 328.9 328.10 328.11 328.12 328.13 328.14 328.15 328.16 328.17 328.18 328.19 328.20 328.21 328.22 328.23 328.24 328.25 328.26 328.27 328.28 328.29 328.30 328.31 328.32 328.33 328.34 328.35 328.36 329.1 329.2 329.3 329.4 329.5 329.6 329.7 329.8 329.9 329.10 329.11 329.12 329.13 329.14 329.15 329.16 329.17 329.18 329.19 329.20 329.21 329.22 329.23 329.24 329.25 329.26 329.27 329.28
329.29
329.30 329.31 329.32 329.33 330.1 330.2
330.3
330.4 330.5 330.6 330.7 330.8 330.9 330.10 330.11 330.12 330.13 330.14 330.15 330.16 330.17 330.18 330.19 330.20 330.21 330.22 330.23 330.24
330.25
330.26 330.27 330.28 330.29 330.30 330.31 330.32 330.33 331.1 331.2 331.3 331.4 331.5 331.6 331.7 331.8 331.9 331.10 331.11 331.12 331.13 331.14 331.15 331.16
331.17
331.18 331.19 331.20 331.21 331.22 331.23 331.24 331.25 331.26 331.27 331.28 331.29 331.30 331.31 331.32 331.33 332.1 332.2 332.3 332.4 332.5 332.6 332.7 332.8 332.9 332.10 332.11 332.12 332.13 332.14 332.15 332.16 332.17 332.18 332.19 332.20 332.21 332.22 332.23
332.24
332.25 332.26 332.27 332.28 332.29 332.30 332.31 332.32
333.1
333.2 333.3 333.4 333.5 333.6 333.7
333.8
333.9 333.10 333.11 333.12 333.13 333.14 333.15 333.16
333.17
333.18 333.19 333.20 333.21 333.22 333.23 333.24 333.25 333.26 333.27 333.28 333.29 333.30 333.31 333.32 334.1 334.2 334.3 334.4 334.5 334.6 334.7 334.8 334.9 334.10 334.11 334.12 334.13 334.14 334.15 334.16 334.17 334.18 334.19 334.20 334.21 334.22 334.23 334.24 334.25 334.26 334.27 334.28 334.29 334.30 334.31 334.32 334.33 334.34 334.35 335.1 335.2 335.3 335.4 335.5 335.6 335.7 335.8 335.9 335.10 335.11 335.12 335.13 335.14 335.15 335.16 335.17 335.18 335.19 335.20 335.21
335.22
335.23 335.24 335.25 335.26 335.27 335.28 335.29 335.30 335.31 335.32 335.33 335.34 336.1 336.2 336.3 336.4 336.5 336.6 336.7 336.8 336.9 336.10 336.11 336.12 336.13 336.14 336.15 336.16 336.17 336.18 336.19 336.20 336.21 336.22 336.23 336.24 336.25 336.26 336.27 336.28 336.29 336.30 336.31 336.32 336.33 337.1 337.2 337.3 337.4 337.5 337.6
337.7 337.8
337.9 337.10 337.11 337.12 337.13 337.14 337.15 337.16 337.17 337.18 337.19 337.20 337.21 337.22 337.23 337.24 337.25 337.26 337.27 337.28 337.29 337.30 337.31 337.32 338.1 338.2 338.3 338.4 338.5 338.6 338.7 338.8 338.9 338.10 338.11 338.12 338.13 338.14 338.15 338.16 338.17 338.18 338.19 338.20
338.21 338.22
338.23 338.24 338.25 338.26 338.27 338.28 338.29 338.30 338.31 338.32 338.33 338.34 339.1 339.2 339.3 339.4 339.5 339.6 339.7 339.8 339.9 339.10 339.11 339.12 339.13 339.14 339.15 339.16 339.17 339.18 339.19 339.20 339.21 339.22 339.23 339.24
339.25
339.26 339.27 339.28 339.29 339.30 339.31
339.32
340.1 340.2 340.3 340.4 340.5 340.6 340.7 340.8 340.9 340.10 340.11 340.12 340.13 340.14 340.15 340.16 340.17 340.18 340.19 340.20 340.21 340.22 340.23 340.24 340.25 340.26 340.27 340.28 340.29 340.30 340.31 340.32 340.33 340.34
340.35
341.1 341.2 341.3 341.4 341.5 341.6 341.7 341.8 341.9 341.10 341.11 341.12 341.13 341.14 341.15 341.16 341.17 341.18 341.19 341.20 341.21 341.22 341.23 341.24 341.25 341.26 341.27 341.28 341.29 341.30 341.31 341.32 341.33 341.34 342.1 342.2 342.3 342.4 342.5 342.6 342.7 342.8 342.9 342.10 342.11 342.12 342.13 342.14 342.15 342.16 342.17 342.18 342.19 342.20 342.21 342.22 342.23 342.24 342.25 342.26 342.27 342.28 342.29 342.30 342.31 342.32 343.1 343.2 343.3 343.4 343.5 343.6 343.7 343.8 343.9 343.10 343.11 343.12 343.13 343.14 343.15 343.16 343.17 343.18 343.19 343.20 343.21 343.22 343.23 343.24 343.25 343.26 343.27 343.28 343.29 343.30 343.31 343.32 343.33 344.1 344.2 344.3 344.4 344.5 344.6 344.7 344.8 344.9 344.10 344.11 344.12
344.13
344.14 344.15 344.16 344.17 344.18 344.19 344.20 344.21 344.22 344.23 344.24 344.25 344.26 344.27 344.28 344.29 344.30 344.31 344.32 344.33 344.34 345.1 345.2 345.3 345.4 345.5 345.6 345.7 345.8 345.9 345.10 345.11 345.12 345.13 345.14 345.15 345.16 345.17 345.18 345.19 345.20 345.21 345.22 345.23 345.24 345.25 345.26 345.27 345.28 345.29 345.30 345.31 345.32 345.33 345.34 345.35 346.1 346.2
346.3
346.4 346.5 346.6 346.7 346.8
346.9
346.10 346.11 346.12 346.13 346.14
346.15
346.16 346.17 346.18 346.19 346.20
346.21
346.22 346.23 346.24 346.25 346.26 346.27 346.28
347.1 347.2
347.3 347.4 347.5 347.6 347.7 347.8 347.9 347.10 347.11 347.12 347.13 347.14 347.15 347.16 347.17 347.18 347.19 347.20 347.21 347.22 347.23 347.24 347.25
347.26 347.27 347.28
347.29 347.30 347.31
348.1 348.2
348.3 348.4 348.5
348.6 348.7 348.8 348.9 348.10 348.11 348.12 348.13 348.14 348.15
348.16
348.17 348.18 348.19 348.20 348.21 348.22 348.23 348.24 348.25 348.26 348.27 348.28 348.29 348.30 348.31 348.32 349.1 349.2 349.3 349.4 349.5 349.6 349.7 349.8 349.9 349.10 349.11 349.12 349.13 349.14 349.15 349.16 349.17 349.18 349.19 349.20 349.21 349.22 349.23
349.24 349.25
349.26 349.27 349.28 349.29 349.30 350.1 350.2 350.3 350.4 350.5 350.6 350.7 350.8 350.9 350.10 350.11 350.12 350.13 350.14 350.15 350.16 350.17 350.18 350.19 350.20 350.21 350.22 350.23 350.24 350.25 350.26 350.27 350.28 350.29 350.30 350.31 350.32 350.33 351.1 351.2 351.3
351.4
351.5 351.6 351.7 351.8 351.9
351.10
351.11 351.12 351.13 351.14 351.15 351.16 351.17 351.18 351.19 351.20 351.21 351.22 351.23 351.24
351.25 351.26
351.27 351.28 351.29 351.30 351.31 352.1 352.2 352.3 352.4
352.5 352.6
352.7 352.8 352.9 352.10 352.11 352.12 352.13 352.14 352.15 352.16 352.17 352.18 352.19 352.20
352.21 352.22
352.23 352.24 352.25 352.26 352.27
352.28 352.29
353.1 353.2 353.3 353.4 353.5 353.6
353.7 353.8
353.9 353.10 353.11 353.12 353.13 353.14 353.15 353.16 353.17 353.18 353.19 353.20 353.21 353.22 353.23 353.24
353.25 353.26
353.27 353.28 353.29 353.30 353.31 353.32 354.1 354.2 354.3
354.4 354.5
354.6 354.7 354.8 354.9 354.10 354.11 354.12 354.13 354.14 354.15
354.16
354.17 354.18 354.19 354.20 354.21 354.22 354.23 354.24 354.25 354.26
354.27
354.28 354.29 354.30 354.31 355.1 355.2 355.3 355.4 355.5 355.6 355.7 355.8 355.9 355.10 355.11 355.12 355.13 355.14 355.15 355.16 355.17 355.18 355.19 355.20 355.21 355.22 355.23 355.24 355.25 355.26 355.27
355.28 355.29
355.30 355.31 355.32 355.33 356.1 356.2
356.3 356.4
356.5 356.6 356.7 356.8 356.9 356.10 356.11 356.12 356.13 356.14 356.15 356.16 356.17 356.18 356.19 356.20 356.21 356.22 356.23 356.24 356.25 356.26 356.27 356.28 356.29 356.30 356.31 356.32 356.33 356.34 357.1 357.2 357.3 357.4
357.5
357.6 357.7 357.8 357.9 357.10 357.11 357.12 357.13 357.14 357.15 357.16 357.17 357.18 357.19 357.20 357.21 357.22 357.23 357.24 357.25 357.26 357.27 357.28 357.29 357.30 357.31 357.32 357.33 357.34 357.35
358.1
358.2 358.3 358.4 358.5 358.6 358.7 358.8 358.9 358.10 358.11 358.12 358.13 358.14 358.15 358.16 358.17 358.18 358.19 358.20
358.21
358.22 358.23 358.24 358.25 358.26 358.27 358.28 358.29 358.30 358.31 359.1 359.2 359.3 359.4 359.5 359.6 359.7 359.8 359.9
359.10 359.11 359.12
359.13 359.14 359.15 359.16 359.17 359.18 359.19 359.20 359.21 359.22 359.23
359.24
359.25 359.26 359.27 359.28 359.29 359.30 359.31 359.32
360.1
360.2 360.3 360.4 360.5 360.6 360.7 360.8 360.9 360.10 360.11 360.12 360.13 360.14 360.15 360.16 360.17 360.18 360.19 360.20 360.21 360.22 360.23 360.24 360.25 360.26 360.27 360.28 360.29 360.30 360.31 360.32 360.33 361.1 361.2 361.3 361.4 361.5 361.6 361.7 361.8 361.9 361.10 361.11 361.12 361.13 361.14 361.15 361.16 361.17 361.18 361.19 361.20 361.21 361.22 361.23
361.24
361.25 361.26 361.27 361.28 361.29 361.30 361.31 361.32 361.33 361.34 362.1 362.2 362.3 362.4 362.5 362.6 362.7 362.8 362.9 362.10 362.11 362.12
362.13
362.14 362.15 362.16 362.17 362.18 362.19 362.20 362.21 362.22 362.23
362.24
362.25 362.26 362.27 362.28 362.29 362.30
362.31
363.1 363.2 363.3 363.4 363.5 363.6 363.7 363.8 363.9 363.10 363.11 363.12 363.13 363.14 363.15 363.16 363.17 363.18
363.19
363.20 363.21 363.22 363.23 363.24 363.25 363.26 363.27 363.28 363.29 363.30 363.31 363.32 364.1 364.2 364.3 364.4 364.5 364.6 364.7 364.8 364.9 364.10 364.11 364.12 364.13
364.14
364.15 364.16 364.17 364.18 364.19 364.20 364.21 364.22 364.23 364.24 364.25 364.26 364.27 364.28 364.29 364.30 364.31 364.32 365.1 365.2 365.3 365.4 365.5 365.6 365.7 365.8 365.9 365.10 365.11 365.12 365.13 365.14
365.15
365.16 365.17 365.18 365.19 365.20 365.21 365.22 365.23 365.24 365.25 365.26 365.27 365.28 365.29 365.30 365.31 365.32 366.1 366.2 366.3 366.4 366.5 366.6
366.7 366.8 366.9 366.10
366.11 366.12 366.13 366.14 366.15 366.16 366.17 366.18 366.19 366.20 366.21 366.22 366.23 366.24 366.25 366.26 366.27 366.28 366.29 366.30 366.31
367.1 367.2
367.3 367.4 367.5
367.6
367.7 367.8 367.9
367.10
367.11 367.12 367.13 367.14 367.15
367.16
367.17 367.18 367.19 367.20 367.21
367.22
367.23 367.24 367.25 367.26 367.27 367.28 368.1 368.2 368.3 368.4 368.5 368.6 368.7 368.8
368.9 368.10
368.11 368.12 368.13 368.14 368.15 368.16 368.17
368.18 368.19
368.20 368.21 368.22 368.23 368.24 368.25 368.26 368.27
368.28
368.29 368.30 368.31 369.1 369.2 369.3 369.4 369.5 369.6 369.7 369.8 369.9 369.10 369.11 369.12 369.13 369.14 369.15 369.16 369.17 369.18 369.19 369.20 369.21 369.22
369.23
369.24 369.25 369.26 369.27 369.28 369.29 369.30 369.31 369.32 369.33 370.1 370.2
370.3
370.4 370.5 370.6 370.7 370.8 370.9 370.10 370.11
370.12
370.13 370.14 370.15 370.16 370.17 370.18 370.19 370.20 370.21 370.22
370.23
370.24 370.25 370.26 370.27 370.28 370.29 370.30 370.31 370.32 371.1 371.2 371.3 371.4 371.5 371.6
371.7
371.8 371.9 371.10 371.11 371.12 371.13 371.14
371.15 371.16
371.17 371.18 371.19 371.20 371.21 371.22 371.23 371.24 371.25 371.26 371.27 371.28 371.29
371.30
372.1 372.2 372.3 372.4 372.5 372.6 372.7
372.8 372.9
372.10 372.11 372.12 372.13
372.14
372.15 372.16 372.17 372.18 372.19 372.20 372.21 372.22 372.23 372.24 372.25 372.26 372.27 372.28 372.29
372.30 372.31
373.1 373.2 373.3 373.4 373.5 373.6 373.7 373.8 373.9 373.10 373.11 373.12 373.13 373.14 373.15 373.16 373.17 373.18 373.19 373.20 373.21 373.22 373.23 373.24 373.25 373.26 373.27
373.28 373.29
373.30
373.31 373.32
374.1
374.2 374.3 374.4
374.5 374.6 374.7 374.8 374.9 374.10 374.11 374.12 374.13 374.14 374.15 374.16 374.17 374.18 374.19 374.20 374.21 374.22 374.23 374.24 374.25 374.26 374.27 374.28 374.29 374.30 375.1 375.2 375.3 375.4 375.5 375.6 375.7 375.8 375.9 375.10 375.11
375.12 375.13 375.14 375.15
375.16 375.17 375.18 375.19
375.20
375.21 375.22 375.23
375.24
375.25 375.26 375.27
375.28 375.29 375.30 375.31 376.1 376.2 376.3
376.4 376.5
376.6 376.7 376.8 376.9 376.10 376.11 376.12 376.13 376.14 376.15 376.16 376.17 376.18 376.19 376.20 376.21 376.22 376.23 376.24 376.25 376.26 376.27 376.28 376.29 376.30 376.31 377.1 377.2 377.3 377.4 377.5 377.6 377.7 377.8 377.9 377.10 377.11 377.12 377.13 377.14 377.15 377.16 377.17 377.18 377.19 377.20 377.21 377.22 377.23 377.24 377.25 377.26 377.27 377.28 377.29 377.30 377.31 377.32 378.1 378.2 378.3 378.4 378.5 378.6 378.7 378.8 378.9 378.10 378.11 378.12 378.13 378.14 378.15 378.16 378.17 378.18 378.19 378.20 378.21 378.22
378.23
378.24 378.25 378.26 378.27 378.28 378.29 378.30 378.31 379.1 379.2
379.3 379.4
379.5 379.6 379.7 379.8 379.9 379.10 379.11 379.12 379.13
379.14
379.15 379.16
379.17
379.18 379.19 379.20
379.21 379.22 379.23 379.24 379.25 379.26 379.27 379.28 379.29 379.30
379.31
380.1 380.2 380.3 380.4 380.5 380.6 380.7 380.8 380.9 380.10 380.11 380.12 380.13 380.14 380.15 380.16 380.17 380.18 380.19 380.20 380.21 380.22
380.23
380.24 380.25 380.26 380.27 380.28 380.29 380.30 380.31
380.32
381.1 381.2 381.3 381.4 381.5 381.6
381.7
381.8 381.9 381.10 381.11 381.12 381.13 381.14 381.15 381.16 381.17 381.18 381.19 381.20 381.21 381.22 381.23 381.24 381.25 381.26 381.27 381.28 381.29 381.30 381.31 381.32 382.1 382.2 382.3 382.4 382.5 382.6 382.7 382.8 382.9
382.10
382.11 382.12 382.13 382.14 382.15 382.16 382.17 382.18 382.19 382.20 382.21 382.22 382.23 382.24 382.25 382.26 382.27 382.28 382.29 382.30 383.1 383.2 383.3 383.4 383.5
383.6
383.7 383.8 383.9
383.10 383.11 383.12 383.13 383.14 383.15 383.16 383.17 383.18 383.19 383.20 383.21 383.22 383.23 383.24 383.25
383.26
383.27 383.28 383.29 383.30 383.31 384.1 384.2 384.3 384.4 384.5 384.6 384.7 384.8 384.9 384.10 384.11 384.12 384.13 384.14 384.15 384.16 384.17 384.18 384.19 384.20
384.21
384.22 384.23 384.24 384.25 384.26 384.27 384.28 384.29 384.30 384.31 384.32 384.33 385.1 385.2 385.3 385.4 385.5 385.6 385.7 385.8 385.9
385.10
385.11 385.12 385.13 385.14 385.15 385.16 385.17 385.18 385.19 385.20 385.21 385.22 385.23 385.24 385.25 385.26 385.27 385.28 385.29 385.30 385.31 386.1 386.2 386.3 386.4 386.5 386.6 386.7 386.8 386.9 386.10 386.11 386.12 386.13 386.14 386.15 386.16 386.17 386.18 386.19 386.20 386.21 386.22 386.23 386.24 386.25 386.26 386.27 386.28 386.29 386.30 386.31 386.32 386.33 387.1 387.2 387.3 387.4 387.5 387.6 387.7 387.8 387.9 387.10
387.11
387.12 387.13 387.14 387.15 387.16 387.17 387.18 387.19 387.20 387.21 387.22 387.23 387.24 387.25 387.26 387.27 387.28 387.29 387.30 387.31 387.32 387.33 388.1 388.2 388.3 388.4 388.5 388.6 388.7 388.8 388.9
388.10
388.11 388.12 388.13 388.14 388.15 388.16 388.17 388.18 388.19 388.20 388.21 388.22 388.23 388.24 388.25 388.26 388.27 388.28 388.29 388.30 388.31 388.32 388.33
389.1
389.2 389.3 389.4
389.5 389.6 389.7 389.8 389.9 389.10 389.11 389.12 389.13 389.14 389.15 389.16 389.17 389.18 389.19 389.20 389.21 389.22 389.23 389.24 389.25 389.26
389.27
389.28 389.29 389.30 389.31 389.32 390.1 390.2 390.3 390.4 390.5 390.6 390.7 390.8 390.9 390.10 390.11 390.12 390.13 390.14 390.15
390.16 390.17
390.18 390.19 390.20 390.21
390.22
390.23 390.24 390.25 390.26 390.27 390.28 390.29 390.30 390.31 390.32 391.1 391.2 391.3 391.4 391.5 391.6 391.7 391.8 391.9 391.10 391.11 391.12 391.13 391.14 391.15 391.16 391.17 391.18 391.19 391.20 391.21 391.22 391.23 391.24 391.25 391.26 391.27
391.28 391.29
391.30 391.31 391.32 391.33 391.34 391.35
392.1
392.2 392.3 392.4 392.5 392.6 392.7 392.8 392.9 392.10 392.11 392.12
392.13 392.14
392.15 392.16 392.17 392.18 392.19 392.20 392.21 392.22 392.23 392.24 392.25 392.26 392.27 392.28 392.29 392.30 392.31 392.32 393.1 393.2 393.3 393.4 393.5 393.6 393.7 393.8 393.9 393.10 393.11 393.12 393.13 393.14 393.15 393.16 393.17 393.18 393.19 393.20 393.21 393.22 393.23 393.24 393.25 393.26 393.27 393.28 393.29 393.30 393.31 393.32 393.33 393.34 393.35 394.1 394.2
394.3 394.4
394.5 394.6 394.7 394.8 394.9 394.10 394.11 394.12 394.13 394.14 394.15 394.16 394.17 394.18 394.19 394.20 394.21 394.22 394.23 394.24 394.25 394.26 394.27 394.28 394.29 394.30 395.1 395.2 395.3
395.4 395.5
395.6 395.7 395.8 395.9 395.10 395.11 395.12 395.13 395.14 395.15 395.16 395.17 395.18 395.19 395.20 395.21 395.22 395.23 395.24 395.25 395.26 395.27 395.28 395.29
395.30 395.31
396.1 396.2 396.3 396.4 396.5 396.6 396.7 396.8 396.9 396.10 396.11 396.12 396.13 396.14 396.15 396.16 396.17 396.18 396.19 396.20 396.21 396.22 396.23 396.24 396.25 396.26 396.27 396.28 396.29 396.30 396.31 396.32 396.33 396.34 396.35 397.1 397.2 397.3 397.4 397.5 397.6 397.7 397.8 397.9 397.10 397.11
397.12 397.13
397.14 397.15
397.16
397.17 397.18 397.19
397.20 397.21 397.22 397.23 397.24 397.25 397.26 397.27 397.28 397.29 397.30 397.31 397.32 398.1 398.2 398.3 398.4 398.5 398.6 398.7
398.8 398.9
398.10 398.11 398.12 398.13 398.14 398.15 398.16 398.17 398.18 398.19 398.20 398.21 398.22 398.23 398.24 398.25 398.26 398.27 398.28
398.29 398.30
399.1 399.2 399.3 399.4 399.5 399.6 399.7 399.8 399.9 399.10 399.11 399.12 399.13 399.14 399.15 399.16 399.17 399.18 399.19 399.20
399.21 399.22
399.23 399.24 399.25 399.26 399.27 399.28 399.29 399.30 400.1 400.2 400.3 400.4 400.5 400.6 400.7
400.8
400.9 400.10 400.11 400.12 400.13 400.14 400.15 400.16 400.17 400.18 400.19 400.20 400.21
400.22
400.23 400.24 400.25 400.26 400.27 400.28 400.29 400.30 401.1 401.2 401.3 401.4 401.5 401.6 401.7
401.8
401.9 401.10 401.11 401.12 401.13 401.14 401.15 401.16 401.17 401.18 401.19 401.20 401.21
401.22
401.23 401.24 401.25 401.26 401.27 401.28 401.29 401.30 402.1 402.2 402.3 402.4 402.5 402.6 402.7 402.8 402.9 402.10 402.11 402.12 402.13 402.14 402.15 402.16
402.17
402.18 402.19 402.20 402.21 402.22 402.23 402.24 402.25 402.26 402.27 402.28 402.29 402.30 402.31 403.1 403.2 403.3 403.4 403.5 403.6 403.7 403.8 403.9 403.10 403.11 403.12 403.13 403.14 403.15 403.16 403.17
403.18
403.19 403.20 403.21 403.22 403.23 403.24 403.25 403.26 403.27 403.28
403.29
404.1 404.2
404.3
404.4 404.5
404.6 404.7 404.8 404.9 404.10 404.11 404.12 404.13 404.14 404.15 404.16 404.17 404.18 404.19 404.20 404.21 404.22 404.23 404.24 404.25 404.26 404.27 404.28 404.29 404.30 405.1 405.2 405.3 405.4 405.5 405.6 405.7 405.8 405.9 405.10 405.11 405.12 405.13 405.14 405.15 405.16 405.17 405.18 405.19 405.20 405.21 405.22 405.23 405.24 405.25
405.26 405.27
405.28 405.29 406.1 406.2 406.3 406.4 406.5 406.6 406.7 406.8 406.9 406.10 406.11 406.12 406.13 406.14 406.15 406.16 406.17 406.18 406.19 406.20 406.21 406.22 406.23 406.24 406.25 406.26 406.27 406.28 406.29 406.30 407.1 407.2 407.3 407.4 407.5 407.6 407.7 407.8 407.9 407.10 407.11 407.12 407.13 407.14 407.15 407.16 407.17 407.18 407.19 407.20 407.21 407.22 407.23 407.24 407.25 407.26 407.27 407.28 407.29 407.30 407.31 408.1 408.2 408.3
408.4 408.5
408.6 408.7 408.8 408.9 408.10 408.11 408.12 408.13
408.14 408.15
408.16 408.17 408.18 408.19 408.20 408.21 408.22 408.23 408.24 408.25 408.26 408.27 408.28 408.29 408.30 408.31 408.32 408.33 409.1 409.2 409.3 409.4 409.5 409.6 409.7 409.8 409.9 409.10 409.11 409.12 409.13 409.14 409.15 409.16 409.17 409.18 409.19 409.20 409.21 409.22 409.23 409.24 409.25 409.26 409.27 409.28 409.29 409.30 409.31 409.32 410.1 410.2 410.3 410.4 410.5 410.6 410.7 410.8 410.9 410.10 410.11 410.12 410.13 410.14 410.15 410.16 410.17 410.18 410.19 410.20 410.21 410.22 410.23 410.24 410.25 410.26 410.27 410.28 410.29 410.30 410.31
410.32 410.33
411.1 411.2 411.3 411.4 411.5 411.6
411.7 411.8
411.9 411.10 411.11 411.12 411.13 411.14
411.15 411.16
411.17 411.18 411.19 411.20 411.21 411.22 411.23 411.24
411.25 411.26
411.27 411.28 411.29 411.30 412.1 412.2 412.3 412.4 412.5 412.6 412.7 412.8 412.9 412.10 412.11 412.12
412.13 412.14
412.15 412.16 412.17 412.18 412.19 412.20 412.21 412.22 412.23 412.24 412.25 412.26 412.27 412.28 412.29 413.1 413.2 413.3 413.4 413.5 413.6 413.7 413.8 413.9 413.10 413.11 413.12 413.13 413.14 413.15 413.16 413.17 413.18 413.19 413.20 413.21
413.22 413.23
413.24 413.25 413.26 413.27 413.28
413.29 413.30
414.1 414.2 414.3 414.4 414.5 414.6 414.7 414.8 414.9 414.10 414.11 414.12 414.13 414.14 414.15 414.16 414.17 414.18 414.19 414.20 414.21 414.22 414.23 414.24 414.25 414.26 414.27 414.28 414.29 414.30 414.31 415.1 415.2
415.3 415.4
415.5 415.6 415.7 415.8 415.9 415.10 415.11 415.12 415.13 415.14 415.15 415.16 415.17 415.18 415.19
415.20 415.21
415.22 415.23 415.24 415.25 415.26
415.27 415.28
415.29 415.30 415.31 416.1 416.2 416.3 416.4 416.5 416.6 416.7
416.8 416.9
416.10 416.11 416.12 416.13 416.14 416.15 416.16 416.17 416.18 416.19 416.20 416.21 416.22 416.23 416.24 416.25 416.26 416.27
416.28 416.29
417.1 417.2 417.3 417.4 417.5 417.6 417.7 417.8 417.9 417.10 417.11 417.12 417.13 417.14 417.15 417.16
417.17 417.18
417.19 417.20 417.21 417.22 417.23 417.24 417.25 417.26 417.27
417.28 417.29
418.1 418.2 418.3 418.4 418.5 418.6 418.7 418.8 418.9 418.10 418.11 418.12 418.13
418.14 418.15
418.16 418.17 418.18 418.19 418.20 418.21 418.22 418.23 418.24 418.25 418.26 418.27 418.28 418.29 418.30 418.31 418.32 419.1 419.2 419.3 419.4 419.5 419.6 419.7 419.8 419.9 419.10 419.11 419.12 419.13 419.14 419.15 419.16 419.17 419.18 419.19 419.20 419.21 419.22 419.23 419.24 419.25 419.26 419.27 419.28 419.29
419.30 419.31
420.1 420.2 420.3 420.4 420.5 420.6 420.7 420.8 420.9 420.10 420.11 420.12 420.13 420.14 420.15 420.16 420.17 420.18 420.19 420.20 420.21 420.22 420.23 420.24 420.25
420.26 420.27
420.28 420.29 420.30 420.31 420.32 421.1 421.2 421.3 421.4 421.5 421.6 421.7 421.8 421.9 421.10 421.11 421.12 421.13
421.14
421.15 421.16 421.17
421.18 421.19

A bill for an act
relating to financing and operation of state and local government; making changes
to individual income, corporate franchise, estate, property, sales and use, excise,
mineral, tobacco, gambling, special, local, and other miscellaneous taxes and
tax-related provisions; modifying provisions related to taxpayer empowerment,
local government aids, credits, refunds, in perpetuity payments on land purchases,
tax increment financing, and public finance; providing for new income tax
subtractions, additions, and credits; establishing a first-time home buyer savings
account program; providing for conformity Next to Previous federal Next tax extenders by
Previous administrative Next action; modifying the education credit; providing a credit for
donations to fund K-12 scholarships; modifying residency definitions; providing
estate tax Previous conformity Next ; modifying property tax exemptions, classifications, and
refunds; allowing a reverse referendum for property tax levies under certain
circumstances; establishing school building bond agricultural tax credit; modifying
state general levy; modifying certain local government aids; modifying sales tax
definitions and exemptions; providing sales tax exemptions; clarifying the
appropriation for sales tax refunds; establishing sales tax collection duties for
marketplace providers and certain retailers; dedicating certain sales tax revenues;
providing exemptions from sales taxes and property taxes for a Major League
Soccer stadium; authorizing certain tax increment financing authority; prohibiting
municipalities from taxing paper or plastic bags; modifying county levy authority;
authorizing certain local taxes; requiring voter approval for certain transportation
sales taxes; restricting rail project expenditures; modifying provisions related to
taconite; repealing political contribution refund; modifying taxes on tobacco
products and cigarettes; providing for a private letter ruling program; modifying
tax administration procedures; dedicating transportation-related taxes; modifying
vehicle taxes and fees; making minor policy, technical, and conforming changes;
requiring reports; appropriating money; amending Minnesota Statutes 2016, sections
13.4967, by adding a subdivision; 13.51, subdivision 2; 40A.18, subdivision 2;
69.021, subdivision 5; 84.82, subdivision 10; 84.922, subdivision 11; 86B.401,
subdivision 12; 97A.056, subdivisions 1a, 3, by adding subdivisions; 116P.02,
subdivision 1, by adding subdivisions; 116P.08, subdivisions 1, 4; 123B.63,
subdivision 3; 126C.17, subdivision 9; 127A.45, subdivisions 10, 13; 128C.24;
168.013, subdivision 1a, by adding a subdivision; 169.011, by adding a subdivision;
205.10, subdivision 1; 205A.05, subdivision 1; 216B.36; 216B.46; 237.19; 270.071,
subdivisions 2, 7, 8, by adding a subdivision; 270.072, subdivisions 2, 3, by adding
a subdivision; 270.074, subdivision 1; 270.078, subdivision 1; 270.12, by adding
a subdivision; 270.82, subdivision 1; 270A.03, subdivisions 5, 7; 270B.14,
subdivision 1, by adding subdivisions; 270C.13, subdivision 1; 270C.171,
subdivision 1; 270C.30; 270C.31, by adding a subdivision; 270C.33, subdivisions
5, 8, by adding subdivisions; 270C.34, subdivisions 1, 2; 270C.35, subdivisions
3, 4, by adding a subdivision; 270C.38, subdivision 1; 270C.445, subdivisions 2,
3, 5a, 6, 6a, 6b, 6c, 7, 8, by adding a subdivision; 270C.446, subdivisions 2, 3, 4,
5; 270C.447, subdivisions 1, 2, 3, by adding a subdivision; 270C.72, subdivision
4; 270C.89, subdivision 1; 271.06, subdivisions 2, 2a, 6, 7; 271.08, subdivision 1;
271.18; 272.02, subdivisions 9, 10, 23, 86, by adding a subdivision; 272.0211,
subdivision 1; 272.0213; 272.025, subdivision 1; 272.029, subdivisions 2, 4, by
adding a subdivision; 272.0295, subdivision 4, by adding a subdivision; 272.115,
subdivisions 1, 2, 3; 272.162; 273.061, subdivision 7; 273.0755; 273.08; 273.121,
by adding a subdivision; 273.124, subdivisions 3a, 13, 13d, 14, 21; 273.125,
subdivision 8; 273.13, subdivisions 22, 23, 25, 34; 273.135, subdivision 1;
273.1392; 273.1393; 273.33, subdivisions 1, 2; 273.371; 273.372, subdivisions 2,
4, by adding subdivisions; 274.01, subdivision 1; 274.014, subdivision 3; 274.13,
subdivision 1; 274.135, subdivision 3; 275.025, subdivisions 1, 2, 4, by adding a
subdivision; 275.065, subdivisions 1, 3; 275.066; 275.07, subdivisions 1, 2; 275.08,
subdivision 1b; 275.60; 275.62, subdivision 2; 276.017, subdivision 3; 276.04,
subdivisions 1, 2; 278.01, subdivision 1; 279.01, subdivisions 1, 2, 3; 279.37, by
adding a subdivision; 281.17; 281.173, subdivision 2; 281.174, subdivision 3;
282.01, subdivisions 1a, 1d, 4, 6, by adding a subdivision; 282.016; 282.018,
subdivision 1; 282.02; 282.241, subdivision 1; 282.322; 287.08; 287.2205; 289A.08,
subdivisions 11, 16, by adding a subdivision; 289A.09, subdivisions 1, 2; 289A.10,
subdivision 1; 289A.11, subdivision 1; 289A.12, subdivision 14; 289A.18,
subdivision 1, by adding a subdivision; 289A.20, subdivision 2; 289A.31,
subdivision 1; 289A.35; 289A.37, subdivision 2; 289A.38, subdivision 6; 289A.40,
subdivision 1; 289A.50, subdivisions 1, 2a, 7; 289A.60, subdivisions 1, 13, 28, by
adding a subdivision; 289A.63, by adding a subdivision; 290.01, subdivisions 6,
7; 290.0131, by adding subdivisions; 290.0132, subdivisions 4, 14, 21, by adding
subdivisions; 290.0133, by adding a subdivision; 290.06, subdivision 22, by adding
subdivisions; 290.067, subdivisions 1, 2b; 290.0672, subdivision 1; 290.0674,
subdivisions 1, 2, by adding a subdivision; 290.068, subdivisions 1, 2, 3, 6a;
290.0685, subdivision 1; 290.091, subdivision 2; 290.0922, subdivision 2; 290.17,
subdivision 2; 290.31, subdivision 1; 290A.03, subdivisions 3, 11, 13; 290A.10;
290A.19; 290C.03; 291.005, subdivision 1, as amended; 291.016, subdivisions 2,
3; 291.03, subdivisions 1, 9, 11; 291.075; 295.54, subdivision 2; 295.55, subdivision
6; 296A.01, subdivisions 7, 12, 33, 42, by adding a subdivision; 296A.02, by
adding a subdivision; 296A.07, subdivision 1; 296A.08, subdivision 2; 296A.16,
subdivision 2; 296A.22, subdivision 9; 296A.26; 297A.66, subdivisions 1, 2, 4,
by adding a subdivision; 297A.67, subdivision 13a, by adding a subdivision;
297A.68, subdivisions 5, 9, 19, 35a; 297A.70, subdivisions 4, 12, 14, by adding
subdivisions; 297A.71, subdivision 44, by adding subdivisions; 297A.75,
subdivisions 1, 2, 3, 5; 297A.815, subdivision 3; 297A.82, subdivisions 4, 4a;
297A.94; 297A.992, subdivision 6a; 297A.993, subdivisions 1, 2, by adding
subdivisions; 297B.07; 297D.02; 297E.02, subdivisions 3, 6, 7; 297E.04,
subdivision 1; 297E.05, subdivision 4; 297E.06, subdivision 1; 297F.01, subdivision
13a; 297F.05, subdivisions 1, 3, 3a, 4a; 297F.09, subdivision 1; 297F.23; 297G.09,
subdivision 1; 297G.22; 297H.06, subdivision 2; 297I.05, subdivision 2; 297I.10,
subdivisions 1, 3; 297I.20, by adding a subdivision; 297I.30, subdivision 7, by
adding a subdivision; 297I.60, subdivision 2; 298.01, subdivisions 3, 4, 4c; 298.225,
subdivision 1; 298.24, subdivision 1; 298.28, subdivisions 2, 3, 5; 366.095,
subdivision 1; 383B.117, subdivision 2; 398A.10, subdivisions 3, 4; 410.32;
412.221, subdivision 2; 412.301; 414.09, subdivision 2; 426.19, subdivision 2;
447.045, subdivisions 2, 3, 4, 6, 7; 452.11; 455.24; 455.29; 459.06, subdivision
1; 462.353, subdivision 4; 469.053, subdivision 5; 469.101, subdivision 1; 469.107,
subdivision 2; 469.169, by adding a subdivision; 469.174, subdivision 12; 469.175,
subdivision 3; 469.176, subdivision 4c; 469.1761, by adding a subdivision;
469.1763, subdivisions 1, 2, 3; 469.178, subdivision 7; 469.190, subdivisions 1,
5; 469.319, subdivision 5; 471.57, subdivision 3; 471.571, subdivision 3; 471.572,
subdivisions 2, 4; 473.39, by adding subdivisions; 473H.09; 473H.17, subdivision
1a; 475.59; 475.60, subdivision 2; 477A.011, subdivisions 34, 45; 477A.0124,
subdivision 2; 477A.013, subdivisions 1, 8, 9, by adding a subdivision; 477A.10;
477A.11, by adding subdivisions; 477A.19, by adding subdivisions; 504B.285,
subdivision 1; 504B.365, subdivision 3; 559.202, subdivision 2; 609.5316,
subdivision 3; Laws 1980, chapter 511, sections 1, subdivision 2, as amended; 2,
as amended; Laws 1991, chapter 291, article 8, section 27, subdivisions 3, as
amended, 4, as amended, 5; Laws 1996, chapter 471, article 2, section 29,
subdivisions 1, as amended, 4, as amended; article 3, section 51; Laws 1999,
chapter 243, article 4, sections 17, subdivisions 3, 5, by adding a subdivision; 18,
subdivision 1, as amended; Laws 2005, First Special Session chapter 3, article 5,
section 38, subdivisions 2, as amended, 4, as amended; Laws 2008, chapter 154,
article 9, section 21, subdivision 2; Laws 2008, chapter 366, article 7, section 20;
Laws 2009, chapter 88, article 5, section 17, as amended; Laws 2014, chapter 308,
article 6, sections 8, subdivision 1; 9; article 9, section 94; Laws 2016, chapter
187, section 5; proposing coding for new law in Minnesota Statutes, chapters 11A;
16A; 16B; 41B; 88; 103C; 116P; 117; 174; 222; 270C; 273; 274; 275; 281; 289A;
290; 290B; 290C; 293; 297A; 416; 459; 462A; 471; 473; 477A; proposing coding
for new law as Minnesota Statutes, chapter 462D; repealing Minnesota Statutes
2016, sections 10A.322, subdivision 4; 13.4967, subdivision 2; 136A.129; 205.10,
subdivision 3; 270.074, subdivision 2; 270C.445, subdivision 1; 270C.447,
subdivision 4; 270C.9901; 281.22; 289A.10, subdivision 1a; 289A.12, subdivision
18; 289A.18, subdivision 3a; 289A.20, subdivision 3a; 290.06, subdivisions 23,
36; 290.067, subdivision 2; 290.9743; 290.9744; 290C.02, subdivisions 5, 9;
290C.06; 291.03, subdivisions 8, 9, 10, 11; 297A.992, subdivision 12; 297F.05,
subdivision 1a; 477A.085; 477A.20; Minnesota Rules, parts 4503.1400, subpart
4; 8092.1400; 8092.2000; 8100.0700; 8125.1300, subpart 3.

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

ARTICLE 1

INDIVIDUAL INCOME, CORPORATE FRANCHISE, AND ESTATE TAXES

Section 1.

Minnesota Statutes 2016, section 13.4967, is amended by adding a subdivision
to read:


new text begin Subd. 9. new text end

new text begin Minnesota housing credit. new text end

new text begin Data related to Minnesota housing tax credit
certifications and allocations are classified in section 462A.39.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

new text begin [41B.0391] BEGINNING FARMER PROGRAM; TAX CREDITS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Agricultural assets" means agricultural land, livestock, facilities, buildings, and
machinery used for farming in Minnesota.
new text end

new text begin (c) "Beginning farmer" means a resident of Minnesota who:
new text end

new text begin (1) is seeking entry, or has entered within the last ten years, into farming;
new text end

new text begin (2) intends to farm land located within the state borders of Minnesota;
new text end

new text begin (3) is not and whose spouse is not a family member of the owner of the agricultural
assets from whom the beginning farmer is seeking to purchase or rent agricultural assets;
new text end

new text begin (4) is not and whose spouse is not a family member of a partner, member, shareholder,
or trustee of the owner of agricultural assets from whom the beginning farmer is seeking to
purchase or rent agricultural assets; and
new text end

new text begin (5) meets the following eligibility requirements as determined by the authority:
new text end

new text begin (i) has a net worth that does not exceed the limit provided under section 41B.03,
subdivision 3, paragraph (a), clause (2);
new text end

new text begin (ii) provides the majority of the day-to-day physical labor and management of the farm;
new text end

new text begin (iii) has, by the judgment of the authority, adequate farming experience or demonstrates
knowledge in the type of farming for which the beginning farmer seeks assistance from the
authority;
new text end

new text begin (iv) demonstrates to the authority a profit potential by submitting projected earnings
statements;
new text end

new text begin (v) asserts to the satisfaction of the authority that farming will be a significant source
of income for the beginning farmer;
new text end

new text begin (vi) participates in a financial management program approved by the authority or the
commissioner of agriculture; and
new text end

new text begin (vii) has other qualifications as specified by the authority.
new text end

new text begin (d) "Family member" means a family member within the meaning of the Internal Revenue
Code, section 267(c)(4).
new text end

new text begin (e) "Farm product" means plants and animals useful to humans and includes, but is not
limited to, forage and sod crops, oilseeds, grain and feed crops, dairy and dairy products,
poultry and poultry products, livestock, fruits, and vegetables.
new text end

new text begin (f) "Farming" means the active use, management, and operation of real and personal
property for the production of a farm product.
new text end

new text begin (g) "Owner of agricultural assets" means an individual, trust, or pass-through entity that
is the owner in fee of agricultural land or has legal title to any other agricultural asset. Owner
of agricultural assets does not mean an equipment dealer, livestock dealer defined in section
17A.03, subdivision 7, or comparable entity that is engaged in the business of selling
agricultural assets for profit and that is not engaged in farming as its primary business
activity.
new text end

new text begin (h) "Share rent agreement" means a rental agreement in which the principal consideration
given to the owner of agricultural assets is a predetermined portion of the production of
farm products produced from the rented agricultural assets and which provides for sharing
production costs or risk of loss, or both.
new text end

new text begin Subd. 2. new text end

new text begin Tax credit for owners of agricultural assets. new text end

new text begin (a) An owner of agricultural
assets may take a credit against the tax due under chapter 290 for the sale or rental of
agricultural assets to a beginning farmer. An owner of agricultural assets may take a credit
equal to:
new text end

new text begin (1) five percent of the sale price of the agricultural asset;
new text end

new text begin (2) ten percent of the gross rental income in each of the first, second, and third years of
a rental agreement; or
new text end

new text begin (3) 15 percent of the cash equivalent of the gross rental income in each of the first,
second, and third years of a share rent agreement.
new text end

new text begin (b) A qualifying rental agreement includes cash rent of agricultural assets or a share rent
agreement. The agricultural asset must be rented at prevailing community rates as determined
by the authority. The credit may be claimed only after approval and certification by the
authority.
new text end

new text begin (c) An owner of agricultural assets or beginning farmer may terminate a rental agreement,
including a share rent agreement, for reasonable cause upon approval of the authority. If a
rental agreement is terminated without the fault of the owner of agricultural assets, the tax
credits shall not be retroactively disallowed. If an agreement is terminated with fault by the
owner of agricultural assets, any prior tax credits claimed under this subdivision by the
owner of agricultural assets shall be disallowed and must be repaid to the commissioner of
revenue.
new text end

new text begin (d) The credit is limited to the liability for tax as computed under chapter 290 for the
taxable year. If the amount of the credit determined under this section for any taxable year
exceeds this limitation, the excess is a beginning farmer incentive credit carryover according
to section 290.06, subdivision 37.
new text end

new text begin Subd. 3. new text end

new text begin Beginning farmer management tax credit. new text end

new text begin (a) A beginning farmer may take
a credit against the tax due under chapter 290 for participating in a financial management
program approved by the authority. The credit is equal to 100 percent of the cost of
participating in the program. The credit is available for up to three years while the farmer
is in the program. The authority shall maintain a list of approved financial management
programs and establish a procedure for approving equivalent programs that are not on the
list.
new text end

new text begin (b) The credit is limited to the liability for tax as computed under chapter 290 for the
taxable year. If the amount of the credit determined under this section for any taxable year
exceeds this limitation, the excess is a beginning farmer management credit carryover
according to section 290.06, subdivision 38.
new text end

new text begin Subd. 4. new text end

new text begin Authority duties. new text end

new text begin The authority shall:
new text end

new text begin (1) approve and certify beginning farmers as eligible for the program under this section;
new text end

new text begin (2) approve and certify owners of agricultural assets as eligible for the tax credit under
subdivision 2;
new text end

new text begin (3) provide necessary and reasonable assistance and support to beginning farmers for
qualification and participation in financial management programs approved by the authority;
and
new text end

new text begin (4) refer beginning farmers to agencies and organizations that may provide additional
pertinent information and assistance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016.
new text end

Sec. 3.

Minnesota Statutes 2016, section 289A.10, subdivision 1, is amended to read:


Subdivision 1.

Return required.

In the case of a decedent who has an interest in property
with a situs in Minnesota, the personal representative must submit a Minnesota estate tax
return to the commissioner, on a form prescribed by the commissioner, ifdeleted text begin :
deleted text end

deleted text begin (1)deleted text end a Previous federal Next estate tax return is required to be fileddeleted text begin ; ordeleted text end new text begin .
new text end

deleted text begin (2) the sum of the Previous federal Next gross estate and Previous federal Next adjusted taxable gifts, as defined in
section 2001(b) of the Internal Revenue Code, made within three years of the date of the
decedent's death exceeds $1,200,000 for estates of decedents dying in 2014; $1,400,000 for
estates of decedents dying in 2015; $1,600,000 for estates of decedents dying in 2016;
$1,800,000 for estates of decedents dying in 2017; and $2,000,000 for estates of decedents
dying in 2018 and thereafter.
deleted text end

The return must contain a computation of the Minnesota estate tax due. The return must
be signed by the personal representative.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for estates of decedents
dying after December 31, 2016.
new text end

Sec. 4.

Minnesota Statutes 2016, section 290.01, subdivision 7, is amended to read:


Subd. 7.

Resident.

(a) The term "resident" means any individual domiciled in Minnesota,
except that an individual is not a "resident" for the period of time that the individual is a
"qualified individual" as defined in section 911(d)(1) of the Internal Revenue Code, if the
qualified individual notifies the county within three months of moving out of the country
that homestead status be revoked for the Minnesota residence of the qualified individual,
and the property is not classified as a homestead while the individual remains a qualified
individual.

(b) "Resident" also means any individual domiciled outside the state who maintains a
place of abode in the state and spends in the aggregate more than one-half of the tax year
in Minnesota, unless:

(1) the individual or the spouse of the individual is in the armed forces of the United
States; or

(2) the individual is covered under the reciprocity provisions in section 290.081.

For purposes of this subdivision, presence within the state for any part of a calendar day
constitutes a day spent in the state. new text begin A day does not qualify as a Minnesota day if the taxpayer
traveled from a place outside of Minnesota primarily for and essential to obtaining medical
care, as defined in Internal Revenue Code, section 213(d)(1)(A), in Minnesota for the
taxpayer, spouse, or a dependent of the taxpayer and the travel expense is allowed under
section 213(d)(1)(B) of the Internal Revenue Code, and is claimed by the taxpayer as a
deductible expense.
new text end Individuals shall keep adequate records to substantiate the days spent
outside the state.

The term "abode" means a dwelling maintained by an individual, whether or not owned
by the individual and whether or not occupied by the individual, and includes a dwelling
place owned or leased by the individual's spouse.

(c) new text begin In determining where an individual is domiciled, new text end neither the commissioner nor any
court shall considernew text begin :
new text end

new text begin (1)new text end charitable contributions made by deleted text begin andeleted text end new text begin thenew text end individual within or without the state deleted text begin in
determining if the individual is domiciled in Minnesota.
deleted text end new text begin ;
new text end

new text begin (2) the location of the individual's attorney, certified public accountant, or financial
adviser; or
new text end

new text begin (3) the place of business of a financial institution at which the individual applies for any
new type of credit or at which the individual opens or maintains any type of account.
new text end

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

new text begin (1) "financial adviser" means:
new text end

new text begin (i) an individual or business entity engaged in business as a certified financial planner,
registered investment adviser, licensed insurance producer or agent, or registered securities
broker-dealer representative; or
new text end

new text begin (ii) a financial institution providing services related to trust or estate administration,
investment management, or financial planning; and
new text end

new text begin (2) "financial institution" means a financial institution as defined in section 47.015,
subdivision 1; a state or nationally chartered credit union; or a registered broker-dealer
under the Securities and Exchange Act of 1934.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016, except the amendment to paragraph (b) is effective for taxable years beginning
after December 31, 2017.
new text end

Sec. 5.

Minnesota Statutes 2016, section 290.0131, is amended by adding a subdivision
to read:


new text begin Subd. 14. new text end

new text begin Equity and opportunity donations to qualified foundations. new text end

new text begin The amount
of the deduction under section 170 of the Internal Revenue Code that represents contributions
to a qualified foundation under section 290.0693 is an addition.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2017.
new text end

Sec. 6.

Minnesota Statutes 2016, section 290.0131, is amended by adding a subdivision
to read:


new text begin Subd. 15. new text end

new text begin First-time home buyer savings account. new text end

new text begin The amount for a first-time home
buyer savings account required by section 462D.06, subdivision 2, is an addition.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016.
new text end

Sec. 7.

Minnesota Statutes 2016, section 290.0132, subdivision 4, is amended to read:


Subd. 4.

Education expenses.

(a) Subject to the limits in paragraph (b), the following
amounts paid to others for deleted text begin each qualifying child are a subtraction:deleted text end new text begin education-related expenses,
as defined in section 290.0674, subdivision 1, less any amount used to claim the credit under
section 290.0674, are a subtraction.
new text end

deleted text begin (1) education-related expenses; plus
deleted text end

deleted text begin (2) tuition and fees paid to attend a school described in section 290.0674, subdivision
1
, clause (4), that are not included in education-related expenses; less
deleted text end

deleted text begin (3) any amount used to claim the credit under section 290.0674.
deleted text end

(b) The maximum subtraction allowed under this subdivision is:

(1) $1,625 for each qualifying child in new text begin a prekindergarten educational program or in
new text end kindergarten through grade 6; and

(2) $2,500 for each qualifying child in grades 7 through 12.

(c) The definitions in section 290.0674, subdivision 1, apply to this subdivision.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016.
new text end

Sec. 8.

Minnesota Statutes 2016, section 290.0132, subdivision 14, is amended to read:


Subd. 14.

Section 179 expensing.

deleted text begin In each of the five taxable years immediately following
the taxable year in which an addition is required under section 290.0131, subdivision 10,
or 290.0133, subdivision 12, for a shareholder of a corporation that is an S corporation, an
amount equal to one-fifth of the addition made by the taxpayer under section 290.0131,
subdivision 10
, or 290.0133, subdivision 12, for a shareholder of a corporation that is an S
corporation, minus the positive value of any net operating loss under section 172 of the
Internal Revenue Code generated for the taxable year of the addition, is a subtraction. If the
net operating loss exceeds the addition for the taxable year, a subtraction is not allowed
under this subdivision.
deleted text end new text begin The current year section 179 allowance under section 290.0804,
subdivision 1, is a subtraction.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016.
new text end

Sec. 9.

Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision
to read:


new text begin Subd. 23. new text end

new text begin Contributions to 529 plan. new text end

new text begin (a) The amount equal to the contributions made
during the taxable year to one or more accounts in plans qualifying under section 529 of
the Internal Revenue Code, reduced by any withdrawals from accounts during the taxable
year, is a subtraction.
new text end

new text begin (b) The subtraction under this subdivision does not include amounts rolled over from
other college savings plan accounts.
new text end

new text begin (c) The subtraction under this subdivision must not exceed $3,000 for married couples
filing joint returns and $1,500 for all other filers, and is limited to individuals who do not
claim the credit under section 290.0684.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016.
new text end

Sec. 10.

Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision
to read:


new text begin Subd. 24. new text end

new text begin Social Security benefits. new text end

new text begin The amount of Social Security benefits, as provided
in section 290.0803, is a subtraction.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016.
new text end

Sec. 11.

Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision
to read:


new text begin Subd. 25. new text end

new text begin Discharge of indebtedness; education loans. new text end

new text begin (a) The amount equal to the
discharge of indebtedness of the taxpayer is a subtraction if:
new text end

new text begin (1) the indebtedness discharged is a qualified education loan;
new text end

new text begin (2) the taxpayer incurred the indebtedness to pay for qualified higher education expenses
related to attending a graduate degree program; and
new text end

new text begin (3) the indebtedness was discharged under section 136A.1791, or following the taxpayer's
completion of an income-driven repayment plan.
new text end

new text begin (b) For the purposes of this subdivision, "qualified education loan" and "qualified higher
education expenses" have the meanings given in section 221 of the Internal Revenue Code.
new text end

new text begin (c) For purposes of this subdivision, "income-driven repayment plan" means a payment
plan established by the United States Department of Education that sets monthly student
loan payments based on income and family size under United States Code, title 20, section
1087e, or similar authority and specifically includes, but is not limited to:
new text end

new text begin (1) the income-based repayment plan under United States Code, title 20, section 1098e;
new text end

new text begin (2) the income contingent repayment plan established under United States Code, title
20, section 1087e, subsection (e); and
new text end

new text begin (3) the PAYE program or REPAYE program established by the Department of Education
under Previous administrative Next regulations.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016.
new text end

Sec. 12.

Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision
to read:


new text begin Subd. 26. new text end

new text begin Carryover section 179 allowance. new text end

new text begin The carryover section 179 allowance under
section 290.0804, subdivision 2, is a subtraction.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016.
new text end

Sec. 13.

Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision
to read:


new text begin Subd. 27. new text end

new text begin First-time home buyer savings account. new text end

new text begin (a) The amount for contributions
to and earnings on a first-time home buyer savings account allowed by section 462D.06,
subdivision 1, is a subtraction.
new text end

new text begin (b) The subtraction allowed under this subdivision for a taxable year is limited to $7,500,
or $15,000 for married joint filers. For a taxpayer whose adjusted gross income, as defined
in section 62 of the Internal Revenue Code, for the taxable year exceeds $125,000, or
$250,000 for married joint filers, the maximum subtraction is reduced $1 for each $4 of
adjusted gross income in excess of that threshold.
new text end

new text begin (c) The adjusted gross income thresholds under paragraph (b) are annually adjusted for
inflation. Effective for taxable year 2018, the commissioner shall adjust the dollar amount
of the income thresholds at which the maximum credit begins to be reduced under paragraph
(b) by the percentage determined under section 1(f) of the Internal Revenue Code, except
that in section 1(f)(3)(B) the word "2016" is substituted for the word "1992." For 2018, the
commissioner shall then determine the percent change from the 12 months ending on August
31, 2016, to the 12 months ending on August 31, 2017, and in each subsequent year, from
the 12 months ending on August 31, 2016, to the 12 months ending on August 31 of the
year preceding the taxable year. The determination of the commissioner under this
subdivision is not a "rule" and is not subject to the Previous Administrative Next Procedure Act in chapter
14. The threshold amount as adjusted must be rounded to the nearest $100 amount. If the
amount ends in $50, the amount is rounded up to the nearest $100 amount.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016.
new text end

Sec. 14.

Minnesota Statutes 2016, section 290.0133, is amended by adding a subdivision
to read:


new text begin Subd. 15. new text end

new text begin Equity and opportunity donations to qualified foundations. new text end

new text begin The amount
of the deduction under section 170 of the Internal Revenue Code that represents contributions
to a qualified foundation under section 290.0693 is an addition.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2017.
new text end

Sec. 15.

new text begin [290.016] Previous CONFORMITY Next TO Previous FEDERAL Next TAX EXTENDERS BY
Previous ADMINISTRATIVE Next ACTION.
new text end

new text begin Subdivision 1. new text end

new text begin Legislative purpose. new text end

new text begin (a) The legislature intends this section to provide
an ongoing mechanism for conforming the Minnesota individual income and corporate
franchise taxes and the property tax refund and homestead credit refund programs to Previous federal Next
tax legislation enacted after the legislature has adjourned that extends existing provisions
of Previous federal Next law, if the provisions affect a taxable year that ends before the legislature is
scheduled to reconvene in regular session. Congress has regularly enacted changes of that
type that affect computation of Minnesota tax through its links to Previous federal Next law. The Previous federal Next
changes consist mainly of extending provisions that reduce revenues and are scheduled to
expire. Because Minnesota law is linked to Previous federal Next law as of a specific date, taxpayers and
the Department of Revenue must assume that Minnesota law does not include the effect of
these Previous federal Next changes even though the legislature regularly adopts most of the Previous federal Next
provisions retroactively in the next legislative session. This situation undermines compliance
and administration of Minnesota taxes, causing delay, uncertainty, and added costs. This
section provides an Previous administrative Next mechanism to conform to most of these Previous federal Next changes.
The legislature's intent is to conform to the Previous federal Next tax extenders, including minor
modifications of them, and to set aside the necessary state budget resources to do so.
new text end

new text begin (b) By expressing its intent regarding specific Previous federal Next provisions and indicating how to
treat each Previous federal Next extender provision, the legislature is exercising its legislative power and
is not delegating to Congress or the commissioner the authority to determine Minnesota tax
law. The legislature believes that this section is consistent with the Minnesota Supreme
Court's ruling in the case of Wallace v. Commissioner of Taxation, 289 Minn. 220 (1971).
new text end

new text begin Subd. 2. new text end

new text begin Previous Federal Next tax Previous conformity Next account established; transfer. new text end

new text begin (a) A Previous federal Next tax
Previous conformity Next account is established in the general fund. Money in the account is available for
transfer to the general fund to offset the reduction in general fund revenues resulting from
conforming Minnesota tax law to Previous federal Next law under this section.
new text end

new text begin (b) $35,000,000 is transferred from the general fund to the Previous federal Next tax Previous conformity Next account,
effective July 1, 2017.
new text end

new text begin (c) Each year, within ten days after receiving notice of the amount from the commissioner,
the commissioner of management and budget shall transfer from the account to the general
fund the amount the commissioner determines is required under subdivision 4.
new text end

new text begin Subd. 3. new text end

new text begin Eligible Previous federal Next tax preferences. new text end

new text begin For purposes of this section and section
290.01, the term "eligible Previous federal Next tax preferences" means any of the following items that
are not in effect under the Internal Revenue Code for future taxable years beginning after
December 31, 2016:
new text end

new text begin (1) discharge of qualified principal residence indebtedness under section 108(a)(1)(E)
of the Internal Revenue Code;
new text end

new text begin (2) mortgage insurance premiums treated as qualified residence interest under section
163(h)(3)(E) of the Internal Revenue Code;
new text end

new text begin (3) qualified tuition and related expenses under section 222 of the Internal Revenue
Code;
new text end

new text begin (4) reversion of the ten percent adjusted gross income threshold used in determining the
itemized deductions of the expenses of medical care under section 213 of the Internal
Revenue Code to 7.5 percent, without regard to whether the reversion applies to all
individuals or is limited to individuals who have attained the age of 65;
new text end

new text begin (5) classification of certain race horses as three-year property under section
168(e)(3)(A)(i) and (ii) of the Internal Revenue Code;
new text end

new text begin (6) the seven-year recovery period for motorsports entertainment complexes under
section 168(i)(15) of the Internal Revenue Code;
new text end

new text begin (7) the accelerated depreciation for business property on an Indian reservation under
section 168(j) of the Internal Revenue Code;
new text end

new text begin (8) the election to expense mine safety equipment under section 179E of the Internal
Revenue Code;
new text end

new text begin (9) the special expensing rules for certain film and television productions under section
181 of the Internal Revenue Code;
new text end

new text begin (10) the special allowance for second-generation biofuel plant property under section
168(l) of the Internal Revenue Code;
new text end

new text begin (11) the energy efficient commercial buildings deduction under section 179D of the
Internal Revenue Code;
new text end

new text begin (12) the five-year recovery period for property described in section 168(e)(3)(B)(vi)(I)
of the Internal Revenue Code and qualifying for an energy credit under section 48(a)(3)(A)
of the Internal Revenue Code; and
new text end

new text begin (13) the amount of the additional section 179 allowance in an empowerment zone under
section 1397A of the Internal Revenue Code.
new text end

new text begin Subd. 4. new text end

new text begin Designation of qualifying Previous federal Next Previous conformity Next items. new text end

new text begin (a) If, after final
adjournment of a regular session of the legislature, Congress enacts a law that extends one
or more of the eligible Previous federal Next tax preferences to taxable years beginning during the calendar
year in which the legislature adjourned, the commissioner shall prepare a list of qualifying
Previous federal Next Previous conformity Next items and publish it on the Department of Revenue's Web site within 30
days following enactment of the law. In preparing the list, the commissioner shall estimate
the change in revenue resulting from allowing the eligible Previous federal Next tax preferences, including
the effect of subdivision 6, for the current and succeeding fiscal year only. The commissioner
shall not include an item on the list of qualifying Previous federal Next Previous conformity Next items if the commissioner
estimates that its inclusion would reduce general fund revenues for the current and succeeding
fiscal year by more than the balance in the Previous federal Next tax Previous conformity Next account.
new text end

new text begin (b) The commissioner shall consider the provisions of subdivision 6 as the first item to
include on the list of qualifying Previous conformity Next items. The commissioner shall apply the following
priorities in determining which additional items to include:
new text end

new text begin (1) the effect of all eligible Previous federal Next tax preferences on computation of Previous federal Next adjusted
gross income under this chapter and household income under chapter 290A, is the first
priority;
new text end

new text begin (2) the effect of the Previous federal Next law on computation of Minnesota tax credits is the second
priority;
new text end

new text begin (3) the items in subdivision 3, clauses (5) to (13), in that order, are the third priority;
and
new text end

new text begin (4) the items in subdivision 3, clauses (1) to (4), in that order, are the last priority.
new text end

new text begin (c) In determining whether to include an eligible Previous federal Next tax preference on the list of
qualifying Previous federal Next Previous conformity Next items, the commissioner may include items in which
nonmaterial changes were made in the Previous federal Next law extending allowance of the eligible Previous federal Next
tax preferences, compared to the provision that was in effect for the prior Previous federal Next taxable
year. For purposes of this determination, nonmaterial changes are limited to changes that
are estimated to increase or decrease Minnesota tax revenues by no more than $1,000,000
for the affected eligible Previous federal Next tax preference item for the taxable year.
new text end

new text begin (d) Within ten days after the commissioner's final determination of qualifying Previous federal Next
Previous conformity Next items under this subdivision, the commissioner shall notify the commissioner
of management and budget, in writing, of the amounts of the Previous federal Next tax Previous conformity Next account
transfers under subdivision 2.
new text end

new text begin Subd. 5. new text end

new text begin Provisions in effect. new text end

new text begin (a) For purposes of determining tax and credits under this
chapter, including the taxes under sections 290.091 and 290.0921, and household income
under chapter 290A, qualifying Previous federal Next Previous conformity Next items and bonus depreciation rules under
subdivision 6 apply for the designated taxable year and the provisions of this chapter apply
as if the definition of the Internal Revenue Code under section 290.01, subdivision 31,
included the amendments to the qualifying Previous federal Next Previous conformity Next items.
new text end

new text begin (b) The commissioner shall administer the taxes under this chapter and refunds under
chapter 290A as if Minnesota had conformed to the Previous federal Next definitions of net income,
adjusted gross income, and tax credits that affect computation of Minnesota tax or refunds
resulting from extension of the qualifying Previous federal Next Previous conformity Next items.
new text end

new text begin (c) For purposes of this subdivision and subdivision 6, "designated taxable year" means
a taxable year that begins during a calendar year in which an eligible Previous federal Next tax preference
is enacted after the legislature adjourned its regular session and is effective for taxable years
beginning during that calendar year.
new text end

new text begin Subd. 6. new text end

new text begin Bonus depreciation; 80 percent rule applies. new text end

new text begin If, following final adjournment
of a regular session of the legislature, Congress enacts a law that extends application of the
depreciation special allowances under section 168(k) of the Internal Revenue Code to taxable
years beginning during the same calendar year, the allowance must be determined using
the rules under sections 290.0131, subdivision 9, and 290.0133, subdivision 11, for the
designated taxable year; and the rules under sections 290.0132, subdivision 9, and 290.0134,
subdivision 13, for the five tax years immediately following the designated taxable year.
new text end

new text begin Subd. 7. new text end

new text begin Forms preparation. new text end

new text begin If the provisions of subdivisions 3 and 4 apply to a taxable
year, the commissioner shall prepare forms and instructions that reflect the qualifying Previous federal Next
Previous conformity Next items and bonus depreciation rules under subdivision 6, if applicable, for the
taxable year consistent with the provisions of this section.
new text end

new text begin Subd. 8. new text end

new text begin Draft legislation. new text end

new text begin For a taxable year for which the commissioner publishes a
list of qualifying Previous federal Next Previous conformity Next items under this section, the commissioner shall provide
the chairs and ranking minority members of the legislative committees with jurisdiction
over taxes with draft legislation that would conform Minnesota Statutes to the qualifying
Previous federal Next Previous conformity Next items and any other Previous conformity Next items that the commissioner recommends
be adopted, including application to taxable years beyond those to which this section applies.
The draft legislation is intended to make the statutes consistent with application of the
designated qualifying Previous federal Next Previous conformity Next items under this section for the convenience of
members of the public. Failure to pass the draft legislation does not affect computation of
Minnesota tax liability for the affected taxable years under this section.
new text end

new text begin Subd. 9. new text end

new text begin Previous Administrative Next Procedure Act. new text end

new text begin Designation of qualifying Previous federal Next Previous conformity Next
items or any other action of the commissioner under this section is not a rule and is not
subject to the Previous Administrative Next Procedure Act under chapter 14, including section 14.386.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 16.

Minnesota Statutes 2016, section 290.06, is amended by adding a subdivision to
read:


new text begin Subd. 2g. new text end

new text begin First-time home buyer savings account. new text end

new text begin In addition to the tax computed
under subdivision 2c, an additional amount of tax applies equal to the additional tax computed
for the taxable year for the account holder of a first-time home buyer account under section
462D.06, subdivision 3.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016.
new text end

Sec. 17.

Minnesota Statutes 2016, section 290.06, subdivision 22, is amended to read:


Subd. 22.

Credit for taxes paid to another state.

(a) A taxpayer who is liable for taxes
based on net income to another state, as provided in paragraphs (b) through (f), upon income
allocated or apportioned to Minnesota, is entitled to a credit for the tax paid to another state
if the tax is actually paid in the taxable year or a subsequent taxable year. A taxpayer who
is a resident of this state pursuant to section 290.01, subdivision 7, paragraph (b), and who
is subject to income tax as a resident in the state of the individual's domicile is not allowed
this credit unless the state of domicile does not allow a similar credit.

(b) For an individual, estate, or trust, the credit is determined by multiplying the tax
payable under this chapter by the ratio derived by dividing the income subject to tax in the
other state that is also subject to tax in Minnesota while a resident of Minnesota by the
taxpayer's Previous federal Next adjusted gross income, as defined in section 62 of the Internal Revenue
Code, modified by the addition required by section 290.0131, subdivision 2, and the
subtraction allowed by section 290.0132, subdivision 2, to the extent the income is allocated
or assigned to Minnesota under sections 290.081 and 290.17.

(c) If the taxpayer is an athletic team that apportions all of its income under section
290.17, subdivision 5, the credit is determined by multiplying the tax payable under this
chapter by the ratio derived from dividing the total net income subject to tax in the other
state by the taxpayer's Minnesota taxable income.

(d)new text begin (1)new text end The credit determined under paragraph (b) or (c) shall not exceed the amount of
tax so paid to the other state on the gross income earned within the other state subject to
tax under this chapterdeleted text begin , nor shalldeleted text end new text begin ; and
new text end

new text begin (2)new text end the allowance of the credit new text begin does not new text end reduce the taxes paid under this chapter to an
amount less than what would be assessed if deleted text begin such income amount wasdeleted text end new text begin the gross income
earned within the other state were
new text end excluded from taxable net income.

(e) In the case of the tax assessed on a lump-sum distribution under section 290.032, the
credit allowed under paragraph (a) is the tax assessed by the other state on the lump-sum
distribution that is also subject to tax under section 290.032, and shall not exceed the tax
assessed under section 290.032. To the extent the total lump-sum distribution defined in
section 290.032, subdivision 1, includes lump-sum distributions received in prior years or
is all or in part an annuity contract, the reduction to the tax on the lump-sum distribution
allowed under section 290.032, subdivision 2, includes tax paid to another state that is
properly apportioned to that distribution.

(f) If a Minnesota resident reported an item of income to Minnesota and is assessed tax
in such other state on that same income after the Minnesota statute of limitations has expired,
the taxpayer shall receive a credit for that year under paragraph (a), notwithstanding any
statute of limitations to the contrary. The claim for the credit must be submitted within one
year from the date the taxes were paid to the other state. The taxpayer must submit sufficient
proof to show entitlement to a credit.

(g) For the purposes of this subdivision, a resident shareholder of a corporation treated
as an "S" corporation under section 290.9725, must be considered to have paid a tax imposed
on the shareholder in an amount equal to the shareholder's pro rata share of any net income
tax paid by the S corporation to another state. For the purposes of the preceding sentence,
the term "net income tax" means any tax imposed on or measured by a corporation's net
income.

(h) For the purposes of this subdivision, a resident partner of an entity taxed as a
partnership under the Internal Revenue Code must be considered to have paid a tax imposed
on the partner in an amount equal to the partner's pro rata share of any net income tax paid
by the partnership to another state. For purposes of the preceding sentence, the term "net
income" tax means any tax imposed on or measured by a partnership's net income.

(i) For the purposes of this subdivision, "another state":

(1) includes:

(i) the District of Columbia; and

(ii) a province or territory of Canada; but

(2) excludes Puerto Rico and the several territories organized by Congress.

(j) The limitations on the credit in paragraphs (b), (c), and (d), are imposed on a state
by state basis.

(k) For a tax imposed by a province or territory of Canada, the tax for purposes of this
subdivision is the excess of the tax over the amount of the foreign tax credit allowed under
section 27 of the Internal Revenue Code. In determining the amount of the foreign tax credit
allowed, the net income taxes imposed by Canada on the income are deducted first. Any
remaining amount of the allowable foreign tax credit reduces the provincial or territorial
tax that qualifies for the credit under this subdivision.

new text begin (l) If the amount of the credit which a qualifying individual is eligible to receive under
this section for tax paid to a qualifying state, disregarding the limitation in paragraph (d),
clause (2), exceeds the tax due under this chapter, the commissioner shall refund the excess
to the individual. An amount sufficient to pay the refunds required by this section is
appropriated to the commissioner from the general fund.
new text end

new text begin For purposes of this paragraph, "qualifying individual" means a Minnesota resident under
section 290.01, subdivision 7, paragraph (a), who received compensation during the taxable
year for the performance of personal or professional services within a qualifying state, and
"qualifying state" means a state with which an agreement under section 290.081 is not in
effect for the taxable year but was in effect for a taxable year beginning before January 1,
2010.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016.
new text end

Sec. 18.

Minnesota Statutes 2016, section 290.06, is amended by adding a subdivision to
read:


new text begin Subd. 37. new text end

new text begin Beginning farmer incentive credit. new text end

new text begin (a) A beginning farmer incentive credit
is allowed against the tax due under this chapter for the sale or rental of agricultural assets
to a beginning farmer according to section 41B.0391, subdivision 2.
new text end

new text begin (b) The credit may be claimed only after approval and certification by the Rural Finance
Authority according to section 41B.0391.
new text end

new text begin (c) The credit is limited to the liability for tax, as computed under this chapter, for the
taxable year. If the amount of the credit determined under this subdivision for any taxable
year exceeds this limitation, the excess is a beginning farmer incentive credit carryover to
each of the 15 succeeding taxable years. The entire amount of the excess unused credit for
the taxable year is carried first to the earliest of the taxable years to which the credit may
be carried and then to each successive year to which the credit may be carried. The amount
of the unused credit which may be added under this paragraph must not exceed the taxpayer's
liability for tax, less the beginning farmer incentive credit for the taxable year.
new text end

new text begin (d) Credits allowed to a partnership, a limited liability company taxed as a partnership,
an S corporation, or multiple owners of property are passed through to the partners, members,
shareholders, or owners, respectively, pro rata to each based on the partner's, member's,
shareholder's, or owner's share of the entity's assets or as specially allocated in the
organizational documents or any other executed agreement, as of the last day of the taxable
year.
new text end

new text begin (e) For a nonresident or part-year resident, the credit under this section must be allocated
using the percentage calculated in section 290.06, subdivision 2c, paragraph (e).
new text end

new text begin (f) Notwithstanding the approval and certification by the Rural Finance Authority under
section 41B.0391, the commissioner may utilize any audit and examination powers under
chapter 270C or 289A to the extent necessary to verify that the taxpayer is eligible for the
credit and to assess for the amount of any improperly claimed credit.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016.
new text end

Sec. 19.

Minnesota Statutes 2016, section 290.06, is amended by adding a subdivision to
read:


new text begin Subd. 38. new text end

new text begin Beginning farmer management credit. new text end

new text begin (a) A taxpayer who is a beginning
farmer may take a credit against the tax due under this chapter for participation in a financial
management program according to section 41B.0391, subdivision 3.
new text end

new text begin (b) The credit may be claimed only after approval and certification by the Rural Finance
Authority according to section 41B.0391.
new text end

new text begin (c) The credit is limited to the liability for tax, as computed under this chapter, for the
taxable year. If the amount of the credit determined under this subdivision for any taxable
year exceeds this limitation, the excess is a beginning farmer management credit carryover
to each of the three succeeding taxable years. The entire amount of the excess unused credit
for the taxable year is carried first to the earliest of the taxable years to which the credit
may be carried and then to each successive year to which the credit may be carried. The
amount of the unused credit which may be added under this paragraph must not exceed the
taxpayer's liability for tax, less the beginning farmer management credit for the taxable
year.
new text end

new text begin (d) For a part-year resident, the credit under this section must be allocated using the
percentage calculated in section 290.06, subdivision 2c, paragraph (e).
new text end

new text begin (e) Notwithstanding the approval and certification by the Rural Finance Authority under
section 41B.0391, the commissioner may utilize any audit and examination powers under
chapter 270C or 289A to the extent necessary to verify that the taxpayer is eligible for the
credit and to assess for the amount of any improperly claimed credit.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016.
new text end

Sec. 20.

Minnesota Statutes 2016, section 290.067, subdivision 1, is amended to read:


Subdivision 1.

Amount of credit.

(a) A taxpayer may take as a credit against the tax
due from the taxpayer and a spouse, if any, under this chapter an amount equal to the
dependent care credit for which the taxpayer is eligible pursuant to the provisions of section
21 of the Internal Revenue Code deleted text begin subject to the limitations provided in subdivision 2deleted text end except
that in determining whether the child qualified as a dependent, income received as a
Minnesota family investment program grant or allowance to or on behalf of the child must
not be taken into account in determining whether the child received more than half of the
child's support from the taxpayer, and the provisions of section 32(b)(1)(D) of the Internal
Revenue Code do not apply.

(b) If a child who has not attained the age of six years at the close of the taxable year is
cared for at a licensed family day care home operated by the child's parent, the taxpayer is
deemed to have paid employment-related expenses. If the child is 16 months old or younger
at the close of the taxable year, the amount of expenses deemed to have been paid equals
the maximum limit for one qualified individual under section 21(c) and (d) of the Internal
Revenue Code. If the child is older than 16 months of age but has not attained the age of
six years at the close of the taxable year, the amount of expenses deemed to have been paid
equals the amount the licensee would charge for the care of a child of the same age for the
same number of hours of care.

(c) If a married couple:

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

(2) files a joint tax return for the taxable year; and

(3) does not participate in a dependent care assistance program as defined in section 129
of the Internal Revenue Code, in lieu of the actual employment related expenses paid for
that child under paragraph (a) or the deemed amount under paragraph (b), the lesser of (i)
the combined earned income of the couple or (ii) the amount of the maximum limit for one
qualified individual under section 21(c) and (d) of the Internal Revenue Code will be deemed
to be the employment related expense paid for that child. The earned income limitation of
section 21(d) of the Internal Revenue Code shall not apply to this deemed amount. These
deemed amounts apply regardless of whether any employment-related expenses have been
paid.

(d) If the taxpayer is not required and does not file a Previous federal Next individual income tax return
for the tax year, no credit is allowed for any amount paid to any person unless:

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

(2) if the person is an organization described in section 501(c)(3) of the Internal Revenue
Code and exempt from tax under section 501(a) of the Internal Revenue Code, the name
and address of the person are included on the return claiming the credit.

In the case of a failure to provide the information required under the preceding sentence,
the preceding sentence does not apply if it is shown that the taxpayer exercised due diligence
in attempting to provide the information required.

(e) In the case of a nonresident, part-year resident, or a person who has earned income
not subject to tax under this chapter including earned income excluded pursuant to section
290.0132, subdivision 10, the credit determined under section 21 of the Internal Revenue
Code must be allocated based on the ratio by which the earned income of the claimant and
the claimant's spouse from Minnesota sources bears to the total earned income of the claimant
and the claimant's spouse.

(f) For residents of Minnesota, the subtractions for military pay under section 290.0132,
subdivisions 11
and 12, are not considered "earned income not subject to tax under this
chapter."

(g) For residents of Minnesota, the exclusion of combat pay under section 112 of the
Internal Revenue Code is not considered "earned income not subject to tax under this
chapter."

new text begin (h) For taxpayers with Previous federal Next adjusted gross income in excess of $50,000, the credit is
equal to the lesser of the credit otherwise calculated under this subdivision, or the amount
equal to $600 minus five percent of Previous federal Next adjusted gross income in excess of $50,000 for
taxpayers with one qualified individual, or $1,200 minus five percent of Previous federal Next adjusted
gross income in excess of $50,000 for taxpayers with two or more qualified individuals,
but in no case is the credit less than zero.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016.
new text end

Sec. 21.

Minnesota Statutes 2016, section 290.067, subdivision 2b, is amended to read:


Subd. 2b.

Inflation adjustment.

The commissioner shall adjust the dollar amount of
the income threshold at which the maximum credit begins to be reduced under subdivision
deleted text begin 2deleted text end new text begin 1new text end by the percentage determined pursuant to the provisions of section 1(f) of the Internal
Revenue Code, except that in section 1(f)(3)(B) the word deleted text begin "1999"deleted text end new text begin "2016"new text end shall be substituted
for the word "1992." For deleted text begin 2001deleted text end new text begin 2018new text end , the commissioner shall then determine the percent
change from the 12 months ending on August 31, deleted text begin 1999deleted text end new text begin 2016new text end , to the 12 months ending on
August 31, deleted text begin 2000deleted text end new text begin 2017new text end , and in each subsequent year, from the 12 months ending on August
31, deleted text begin 1999deleted text end new text begin 2016new text end , to the 12 months ending on August 31 of the year preceding the taxable
year. The determination of the commissioner pursuant to this subdivision must not be
considered a "rule" and is not subject to the Previous Administrative Next Procedure Act contained in
chapter 14. The threshold amount as adjusted must be rounded to the nearest $10 amount.
If the amount ends in $5, the amount is rounded up to the nearest $10 amount.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016.
new text end

Sec. 22.

Minnesota Statutes 2016, section 290.0674, subdivision 1, is amended to read:


Subdivision 1.

Credit allowed.

An individual is allowed a credit against the tax imposed
by this chapter in an amount equal to 75 percent of the amount paid for education-related
expenses for a qualifying childnew text begin in a prekindergarten educational program ornew text end in kindergarten
through grade 12. For purposes of this section, "education-related expenses" means:

(1) fees or tuition for instruction by an instructor under section 120A.22, subdivision
10
, clause (1), (2), (3), (4), or (5), or a member of the Minnesota Music Teachers Association,
and who is not a lineal ancestor or sibling of the dependent for instruction outside the regular
school day or school year, including tutoring, driver's education offered as part of school
curriculum, regardless of whether it is taken from a public or private entity or summer
camps, in grade or age appropriate curricula that supplement curricula and instruction
available during the regular school year, that assists a dependent to improve knowledge of
core curriculum areas or to expand knowledge and skills under the required academic
standards under section 120B.021, subdivision 1, and the elective standard under section
120B.022, subdivision 1, clause (2), and that do not include the teaching of religious tenets,
doctrines, or worship, the purpose of which is to instill such tenets, doctrines, or worship;

(2) expenses for textbooks, including books and other instructional materials and
equipment purchased or leased for use in elementary and secondary schools in teaching
only those subjects legally and commonly taught in public elementary and secondary schools
in this state. "Textbooks" does not include instructional books and materials used in the
teaching of religious tenets, doctrines, or worship, the purpose of which is to instill such
tenets, doctrines, or worship, nor does it include books or materials for extracurricular
activities including sporting events, musical or dramatic events, speech activities, driver's
education, or similar programs;

(3) a maximum expense of $200 per family for personal computer hardware, excluding
single purpose processors, and educational software that assists a dependent to improve
knowledge of core curriculum areas or to expand knowledge and skills under the required
academic standards under section 120B.021, subdivision 1, and the elective standard under
section 120B.022, subdivision 1, clause (2), purchased for use in the taxpayer's home and
not used in a trade or business regardless of whether the computer is required by the
dependent's school; deleted text begin and
deleted text end

(4) the amount paid to others for new text begin tuition andnew text end transportation of a qualifying child attending
an elementary or secondary school situated in Minnesota, North Dakota, South Dakota,
Iowa, or Wisconsin, wherein a resident of this state may legally fulfill the state's compulsory
attendance laws, which is not operated for profit, and which adheres to the provisions of
the Civil Rights Act of 1964 and chapter 363A. Amounts under this clause exclude any
expense the taxpayer incurred in using the taxpayer's or the qualifying child's vehicledeleted text begin .deleted text end new text begin ; and
new text end

new text begin (5) fees charged for enrollment in a prekindergarten educational program, to the extent
not used to claim the credit under section 290.067.
new text end

For purposes of this section, "qualifying child" has the meaning given in section 32(c)(3)
of the Internal Revenue Codenew text begin , but is limited to children who have attained at least the age
of three during the taxable year
new text end .

new text begin For purposes of this section, "prekindergarten educational program" means:
new text end

new text begin (1) prekindergarten programs established by a school district under chapter 124D;
new text end

new text begin (2) preschools, nursery schools, and early childhood development programs licensed by
the Department of Human Services and accredited by the National Association for the
Education of Young Children or National Early Childhood Program Accreditation;
new text end

new text begin (3) Montessori programs affiliated with or accredited by the American Montessori
Society or American Montessori International; and
new text end

new text begin (4) child care programs provided by family day care providers holding a current early
childhood development credential approved by the commissioner of human services.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016.
new text end

Sec. 23.

Minnesota Statutes 2016, section 290.0674, subdivision 2, is amended to read:


Subd. 2.

Limitations.

(a) For claimants with income not greater than deleted text begin $33,500deleted text end new text begin $42,000new text end ,
the maximum credit allowed for a family is deleted text begin $1,000deleted text end new text begin $1,500new text end multiplied by the number of
qualifying children in new text begin a prekindergarten educational program or in new text end kindergarten through
grade 12 in the family. The maximum credit deleted text begin for families with one qualifying child in
kindergarten through grade 12
deleted text end is reduced by $1 for each deleted text begin $4deleted text end new text begin $10new text end of household income over
deleted text begin $33,500, and the maximum credit for families with two or more qualifying children in
kindergarten through grade 12 is reduced by $2 for each $4 of household income over
$33,500
deleted text end new text begin $42,000new text end , but in no case is the credit less than zero.

For purposes of this section "income" has the meaning given in section 290.067,
subdivision 2a
. In the case of a married claimant, a credit is not allowed unless a joint income
tax return is filed.

(b) For a nonresident or part-year resident, the credit determined under subdivision 1
and the maximum credit amount in paragraph (a) must be allocated using the percentage
calculated in section 290.06, subdivision 2c, paragraph (e).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016.
new text end

Sec. 24.

Minnesota Statutes 2016, section 290.0674, is amended by adding a subdivision
to read:


new text begin Subd. 6. new text end

new text begin Inflation adjustment. new text end

new text begin The income threshold at which the maximum credit
begins to be reduced in subdivision 2 must be adjusted for inflation. The commissioner shall
adjust the income threshold by the percentage determined pursuant to the provisions of
section 1(f) of the Internal Revenue Code, except that in section 1(f)(3)(B), the word "2016"
shall be substituted for the word "1992." For 2018, the commissioner shall then determine
the percent change from the 12 months ending on August 31, 2016, to the 12 months ending
on August 31, 2017, and in each subsequent year, from the 12 months ending August 31,
2016, to the 12 months ending on August 31 of the year preceding the taxable year. The
income threshold as adjusted for inflation must be rounded to the nearest $10 amount. If
the amount ends in $5, the amount is rounded up to the nearest $10 amount. The
determination of the commissioner under this subdivision is not a rule under the
Previous Administrative Next Procedure Act.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016.
new text end

Sec. 25.

Minnesota Statutes 2016, section 290.068, subdivision 1, is amended to read:


Subdivision 1.

Credit allowed.

A corporation, partners in a partnership, or shareholders
in a corporation treated as an "S" corporation under section 290.9725 are allowed a credit
against the tax computed under this chapter for the taxable year equal to:

(a) ten percent of the first $2,000,000 of the excess (if any) of

(1) the qualified research expenses for the taxable year, over

(2) the base amount; and

(b) deleted text begin 2.5deleted text end new text begin fournew text end percent on all of such excess expenses over $2,000,000.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016.
new text end

Sec. 26.

Minnesota Statutes 2016, section 290.068, subdivision 2, is amended to read:


Subd. 2.

Definitions.

For purposes of this section, the following terms have the meanings
given.

(a) "Qualified research expenses" means (i) qualified research expenses and basic research
payments as defined in section 41(b) and (e) of the Internal Revenue Code, except it does
not include expenses incurred for qualified research or basic research conducted outside
the state of Minnesota pursuant to section 41(d) and (e) of the Internal Revenue Code; and
(ii) contributions to a nonprofit corporation established and operated pursuant to the
provisions of chapter 317A for the purpose of promoting the establishment and expansion
of business in this state, provided the contributions are invested by the nonprofit corporation
for the purpose of providing funds for small, technologically innovative enterprises in
Minnesota during the early stages of their development.

(b) "Qualified research" means qualified research as defined in section 41(d) of the
Internal Revenue Code, except that the term does not include qualified research conducted
outside the state of Minnesota.

(c) "Base amount" means base amount as defined in section 41(c) of the Internal Revenue
Code, except that the average annual gross receipts must be calculated using Minnesota
sales or receipts under section 290.191 and the definitions contained in clauses (a) and (b)
shall apply.

new text begin (d) "Liability for tax" means the liability for tax under this chapter, other than the tax
under section 290.0922, reduced by the sum of the nonrefundable credits allowed under
this chapter, but excluding any carryover credit under subdivision 3.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016.
new text end

Sec. 27.

Minnesota Statutes 2016, section 290.068, subdivision 3, is amended to read:


Subd. 3.

Limitation; carryover.

(a) new text begin Except as provided in subdivision 6a, new text end the credit deleted text begin for
a taxable year beginning before January 1, 2010, and after December 31, 2012,
deleted text end shall not
exceed the liability for tax. new text begin For a person subject to tax under section 290.06, subdivision 1,
new text end "liability for tax"deleted text begin for purposes of this section means the sum of the tax imposed under section
290.06, subdivisions 1 and 2c, for the taxable year reduced by the sum of the nonrefundable
credits allowed under this chapter,
deleted text end new text begin includes the liability for taxnew text end on all of the entities required
to be included on the combined report of the unitary business. If the amount of the credit
allowed exceeds the liability for tax of the taxpayer, but is allowed as a result of the liability
for tax of other members of the unitary group for the taxable year, the taxpayer must allocate
the excess as a research credit to another member of the unitary group.

(b) In the case of a corporation which is a partner in a partnership, the credit allowed
for the taxable year shall not exceed the lesser of the amount determined under paragraph
(a) for the taxable year or an amount (separately computed with respect to the corporation's
interest in the trade or business or entity) equal to the amount of tax attributable to that
portion of taxable income which is allocable or apportionable to the corporation's interest
in the trade or business or entity.

(c) If the amount of the credit determined under this section for any taxable year exceeds
the limitation under paragraph (a) or (b), including amounts new text begin allowed as a refund under
subdivision 6a, or
new text end allocated to other members of the unitary group, the excess shall be a
research credit carryover to each of the 15 succeeding taxable years. The entire amount of
the excess unused credit for the taxable year shall be carried first to the earliest of the taxable
years to which the credit may be carried and then to each successive year to which the credit
may be carried. The amount of the unused credit which may be added under this clause
shall not exceed the taxpayer's liability for tax less the research credit for the taxable year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016.
new text end

Sec. 28.

Minnesota Statutes 2016, section 290.068, subdivision 6a, is amended to read:


Subd. 6a.

Credit to be refundable.

new text begin (a) new text end If the amount of credit allowed in this section
for qualified research expenses incurred in taxable years beginning after December 31,
2009, and before January 1, 2013, exceeds the taxpayer's tax liability under this chapter,
the commissioner shall refund the excess amount. The credit allowed for qualified research
expenses incurred in taxable years beginning after December 31, 2009, and before January
1, 2013, must be used before any research credit earned under subdivision 3.

new text begin (b) The provisions of this paragraph apply to taxable years beginning after December
31, 2016. A taxpayer is allowed a refund equal to the least of the following:
new text end

new text begin (1) $100,000;
new text end

new text begin (2) the sum of the maximum refundable limits allocated to the taxpayer as a shareholder
of an S corporation and as a partner of a partnership under paragraph (c) for the taxable
year; or
new text end

new text begin (3) the excess of the amount of the credit allowed under this section for qualified research
expenses incurred in the taxable year over the taxpayer's liability for tax, including after
satisfying the tax liabilities of any other member of the unitary group under subdivision 3,
paragraph (a).
new text end

new text begin (c) For an S corporation or partnership, a maximum refundable limit of $100,000 applies
at the entity level. The S corporation or partnership must allocate its maximum refundable
limit to each of its shareholders or members for the taxable year. The allocation may be
made in any manner provided in the organizational documents or any other executed
agreement as of the last day of the taxable year. If no provision is made in those documents
or by agreement, the allocation must be made in the same manner provided in subdivision
4 for allocation of the credit. Within 60 days after the close of the taxable year, the S
corporation or partnership must report to each shareholder or partner the allocated share of
the maximum refundable limit for each shareholder or partner. The commissioner may
require reporting, including the time and manner for reporting, of the allocated amounts to
the commissioner.
new text end

new text begin (d) The excess of the amount allowed as a refund under this subdivision to the taxpayer
is a carryover under subdivision 3.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016.
new text end

Sec. 29.

new text begin [290.0682] STUDENT LOAN CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Adjusted gross income" means Previous federal Next adjusted gross income as defined in section
62 of the Internal Revenue Code.
new text end

new text begin (c) "Earned income" has the meaning given in section 32(c) of the Internal Revenue
Code.
new text end

new text begin (d) "Eligible individual" means a resident individual with one or more qualified education
loans related to an undergraduate or graduate degree program at a postsecondary educational
institution.
new text end

new text begin (e) "Eligible loan payments" means the amount the eligible individual paid during the
taxable year in principal and interest on qualified education loans.
new text end

new text begin (f) "Postsecondary educational institution" means a public or nonprofit postsecondary
institution eligible for state student aid under section 136A.103 or, if the institution is not
located in this state, a public or nonprofit postsecondary institution participating in the
Previous federal Next Pell Grant program under title IV of the Higher Education Act of 1965, Public Law
89-329, as amended.
new text end

new text begin (g) "Qualified education loan" has the meaning given in section 221 of the Internal
Revenue Code, but is limited to indebtedness incurred on behalf of the eligible individual.
new text end

new text begin Subd. 2. new text end

new text begin Credit allowed. new text end

new text begin (a) An eligible individual is allowed a credit against the tax
due under this chapter.
new text end

new text begin (b) The credit for an eligible individual equals the least of:
new text end

new text begin (1) eligible loan payments minus ten percent of an amount equal to adjusted gross income
in excess of $10,000, but in no case less than zero;
new text end

new text begin (2) the earned income for the taxable year of the eligible individual, if any;
new text end

new text begin (3) the sum of:
new text end

new text begin (i) the interest portion of eligible loan payments made during the taxable year; and
new text end

new text begin (ii) ten percent of the original loan amount of all qualified education loans of the eligible
individual; or
new text end

new text begin (4) $750.
new text end

new text begin (c) For a part-year resident, the credit must be allocated based on the percentage calculated
under section 290.06, subdivision 2c, paragraph (e).
new text end

new text begin (d) In the case of a married couple, each spouse is eligible for the credit in this section.
new text end

new text begin Subd. 3. new text end

new text begin Credit refundable. new text end

new text begin If the amount of credit that an individual is eligible to
receive under this section exceeds the individual's tax liability under this chapter, the
commissioner shall refund the excess to the individual.
new text end

new text begin Subd. 4. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to pay the refunds required by this section
is appropriated to the commissioner from the general fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016.
new text end

Sec. 30.

new text begin [290.0683] MINNESOTA HOUSING TAX CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section:
new text end

new text begin (1) "entity" means a partnership, limited liability company taxed as a partnership, S
corporation, or property with multiple owners;
new text end

new text begin (2) "entity member" means a partner, member, shareholder, or owner;
new text end

new text begin (3) "taxpayer" means a taxpayer as defined in section 290.01, subdivision 6, or a taxpayer
as defined in section 297I.01, subdivision 16; and
new text end

new text begin (4) terms defined in section 462A.39 have the meanings given in that section.
new text end

new text begin Subd. 2. new text end

new text begin Credit allowed. new text end

new text begin (a) A taxpayer is allowed a credit against the taxes imposed
under this chapter and chapter 297I. The credit equals the amount allocated to the taxpayer
and indicated on the eligibility statement issued to the taxpayer under section 462A.39,
subdivision 3. The taxpayer may claim the amount allocated in the year in which the credit
is allocated and in each of the five following taxable years.
new text end

new text begin (b) A taxpayer eligible for the credit must submit to the commissioner a copy of the
eligibility statement issued by the agency or suballocator with respect to the qualified
Minnesota project, a copy of the project owner's tax return that must be filed as required
under chapter 289A, and any other information required by the commissioner.
new text end

new text begin (c) Credits granted to an entity are passed through to the entity members based on each
entity member's share of the entity's assets or as specially allocated in the organizational
documents as of the last day of the taxable year in which the eligibility statement was issued.
If a Minnesota housing tax credit is allowed to an entity with multiple tiers of ownership,
the credit is passed through to entity members pro rata or as specially allocated in the
organizational documents as of the last day of the taxable year in which the eligibility
statement was issued at each ownership tier.
new text end

new text begin Subd. 3. new text end

new text begin Limitations; carryover. new text end

new text begin (a) A credit allowed under this section may not exceed
liability for tax under this chapter and chapter 297I.
new text end

new text begin (b) If the amount of the credit under this section exceeds the limitation under paragraph
(a), the excess is a credit carryover to each of the 11 succeeding taxable years. The entire
amount of the excess unused credit for the taxable year must be carried first to the earliest
of the taxable years to which the credit may be carried and then to each successive year to
which the credit may be carried.
new text end

new text begin (c) Credits under this subdivision apply against liability after any net operating loss
carryover incorporated in the calculation of Previous federal Next taxable income.
new text end

new text begin Subd. 4. new text end

new text begin Audit powers. new text end

new text begin Notwithstanding the eligibility statement issued by the agency
or a suballocator under section 462A.38, the commissioner may utilize any audit and
examination powers under chapter 270C or 289A to the extent necessary to verify that the
taxpayer is eligible for the credit and to assess for the amount of any improperly claimed
credit and that the owner is in compliance with the compliance agreement.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016.
new text end

Sec. 31.

new text begin [290.0684] SECTION 529 COLLEGE SAVINGS PLAN CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given to them.
new text end

new text begin (b) " Previous Federal Next adjusted gross income" has the meaning given under section 62(a) of the
Internal Revenue Code.
new text end

new text begin (c) "Qualified higher education expenses" has the meaning given in section 529 of the
Internal Revenue Code.
new text end

new text begin Subd. 2. new text end

new text begin Credit allowed. new text end

new text begin (a) A credit is allowed to a resident individual against the tax
imposed by this chapter. The credit is not allowed to an individual who is eligible to be
claimed as a dependent, as defined in sections 151 and 152 of the Internal Revenue Code.
new text end

new text begin (b) The amount of the credit allowed equals 50 percent of the amount contributed in a
taxable year to one or more accounts in plans qualifying under section 529 of the Internal
Revenue Code, reduced by any withdrawals from accounts made during the taxable year.
The maximum credit is $500, subject to the phaseout in paragraphs (c) and (d). In no case
is the credit less than zero.
new text end

new text begin (c) For individual filers, the maximum credit is reduced by two percent of adjusted gross
income in excess of $75,000.
new text end

new text begin (d) For married couples filing a joint return, the maximum credit is phased out as follows:
new text end

new text begin (1) for married couples with adjusted gross income in excess of $75,000, but not more
than $100,000, the maximum credit is reduced by one percent of adjusted gross income in
excess of $75,000;
new text end

new text begin (2) for married couples with adjusted gross income in excess of $100,000, but not more
than $135,000, the maximum credit is $250; and
new text end

new text begin (3) for married couples with adjusted gross income in excess of $135,000, the maximum
credit is $250, reduced by one percent of adjusted gross income in excess of $135,000.
new text end

new text begin (e) The income thresholds in paragraphs (c) and (d) used to calculate the maximum
credit must be adjusted for inflation. The commissioner shall adjust the income thresholds
by the percentage determined under the provisions of section 1(f) of the Internal Revenue
Code, except that in section 1(f)(3)(B) the word "2016" is substituted for the word "1992."
For 2018, the commissioner shall then determine the percent change from the 12 months
ending on August 31, 2016, to the 12 months ending on August 31, 2017, and in each
subsequent year, from the 12 months ending on August 31, 2016, to the 12 months ending
on August 31 of the year preceding the taxable year. The income thresholds as adjusted for
inflation must be rounded to the nearest $10 amount. If the amount ends in $5, the amount
is rounded up to the nearest $10 amount. The determination of the commissioner under this
subdivision is not subject to chapter 14, including section 14.386.
new text end

new text begin Subd. 3. new text end

new text begin Credit refundable. new text end

new text begin If the amount of credit that an individual is eligible to
receive under this section exceeds the individual's tax liability under this chapter, the
commissioner shall refund the excess to the individual.
new text end

new text begin Subd. 4. new text end

new text begin Allocation. new text end

new text begin For a part-year resident, the credit must be allocated based on the
percentage calculated under section 290.06, subdivision 2c, paragraph (e).
new text end

new text begin Subd. 5. new text end

new text begin Revocation. new text end

new text begin If an individual makes a withdrawal of contributions for a purpose
other than to pay for qualified higher education expenses, then:
new text end

new text begin (1) contributions used to claim the credit are considered to be the first contributions
withdrawn; and
new text end

new text begin (2) any credit allowed for the contributions is revoked and must be repaid by the
individual in the taxable year in which the withdrawal is made.
new text end

new text begin Subd. 6. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to pay the refunds required by this section
is appropriated to the commissioner from the general fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016.
new text end

Sec. 32.

Minnesota Statutes 2016, section 290.0685, subdivision 1, is amended to read:


Subdivision 1.

Credit allowed.

(a) An new text begin eligible new text end individual is allowed a credit against the
tax imposed by this chapter equal to $2,000 for each birth for which a certificate of birth
resulting in stillbirth has been issued under section 144.2151. The credit under this section
is allowed only in the taxable year in which the stillbirth occurred deleted text begin and if the child would
have been a dependent of the taxpayer as defined in section 152 of the Internal Revenue
Code
deleted text end .

(b) For a nonresident or part-year resident, the credit must be allocated based on the
percentage calculated under section 290.06, subdivision 2c, paragraph (e).

new text begin (c) For purposes of this section, "eligible individual" means:
new text end

new text begin (1) the individual who gave birth to the child and who is also listed as a parent on the
certificate of birth resulting in stillbirth; or
new text end

new text begin (2) if no individual meets the requirements of clause (1), then the first parent listed on
the certificate of birth resulting in stillbirth.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2015.
new text end

Sec. 33.

new text begin [290.0686] CREDIT FOR ATTAINING MASTER'S DEGREE IN
TEACHER'S LICENSURE FIELD.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given them.
new text end

new text begin (b) "Master's degree program" means a graduate-level program at an accredited university
leading to a master of arts or science degree in a core content area directly related to a
qualified teacher's licensure field. The master's degree program may not include pedagogy
or a pedagogy component. To be eligible under this credit, a licensed elementary school
teacher must pursue and complete a master's degree program in a core content area in which
the teacher provides direct classroom instruction.
new text end

new text begin (c) "Qualified teacher" means a person who:
new text end

new text begin (1) holds a teaching license issued by the licensing division in the Department of
Education on behalf of the Minnesota Board of Teaching both when the teacher begins the
master's degree program and when the teacher completes the master's degree program;
new text end

new text begin (2) began a master's degree program after June 30, 2017; and
new text end

new text begin (3) completes the master's degree program during the taxable year.
new text end

new text begin (d) "Core content area" means the academic subject of reading, English or language arts,
mathematics, science, foreign languages, civics and government, economics, arts, history,
or geography.
new text end

new text begin Subd. 2. new text end

new text begin Credit allowed. new text end

new text begin (a) An individual who is a qualified teacher is allowed a credit
against the tax imposed under this chapter. The credit equals the lesser of $2,500 or the
amount the individual paid for tuition, fees, books, and instructional materials necessary to
completing the master's degree program and for which the individual did not receive
reimbursement from an employer or scholarship.
new text end

new text begin (b) For a nonresident or a part-year resident, the credit under this subdivision must be
allocated based on the percentage calculated under section 290.06, subdivision 2c, paragraph
(e).
new text end

new text begin (c) A qualified teacher may claim the credit in this section only one time for each master's
degree program completed in a core content area.
new text end

new text begin Subd. 3. new text end

new text begin Credit refundable. new text end

new text begin (a) If the amount of the credit for which an individual is
eligible exceeds the individual's liability for tax under this chapter, the commissioner shall
refund the excess to the individual.
new text end

new text begin (b) The amount necessary to pay the refunds required by this section is appropriated to
the commissioner from the general fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016.
new text end

Sec. 34.

new text begin [290.0687] EMPLOYEE CREDIT FOR CERTAIN EMPLOYER-PROVIDED
FITNESS FACILITY EXPENSES.
new text end

new text begin Subdivision 1. new text end

new text begin Credit allowed. new text end

new text begin (a) An individual is allowed a credit against the tax
imposed by this chapter for employer-provided fitness facility expenses. The credit equals
$2.50 for each qualifying month, and the maximum credit is $30. In the case of a married
couple filing a joint return, each spouse is eligible for the credit in this section. The credit
may not exceed the liability for tax under this chapter.
new text end

new text begin (b) The credit is allowed to an individual whose employer either:
new text end

new text begin (1) pays a portion of any fees, dues, or membership expenses on behalf of the employee
to a fitness facility; or
new text end

new text begin (2) reimburses the employee for direct payment of fees, dues, or membership expenses
made by the employee to a fitness facility.
new text end

new text begin (c) For purposes of this section, "qualifying month" means a month in which an individual
uses the fitness facility for the preservation, maintenance, encouragement, or development
of physical fitness on at least eight days.
new text end

new text begin (d) For purposes of this section, "fitness facility" means a facility located in the state
that:
new text end

new text begin (1) provides instruction in a program of physical exercise; offers facilities for the
preservation, maintenance, encouragement, or development of physical fitness; or is the
site of such a program of a state or local government;
new text end

new text begin (2) is not a private club owned and operated by its members;
new text end

new text begin (3) does not offer hunting, sailing, horseback riding, or outdoor golf facilities;
new text end

new text begin (4) does not have an overall function and purpose that makes the fitness facility incidental;
new text end

new text begin (5) is compliant with antidiscrimination laws under chapter 363A and applicable Previous federal Next
antidiscrimination laws; and
new text end

new text begin (6) is located off the employer's premises.
new text end

new text begin (e) The commissioner shall prescribe the form and manner in which eligibility for the
credit is determined.
new text end

new text begin Subd. 2. new text end

new text begin Limitation. new text end

new text begin The credit under this section applies only if the employer's payment
of fees, dues, or membership expenses to a fitness facility is available on substantially the
same terms to each member of a group of employees defined under a reasonable classification
by the employer, but no classification may include only highly compensated employees, as
defined under section 414(q) of the Internal Revenue Code, or any other group that includes
only executives, directors, or other managerial employees.
new text end

new text begin Subd. 3. new text end

new text begin Nonresidents and part-year residents. new text end

new text begin For a nonresident or part-year resident,
the credit must be allocated based on the percentage calculated under section 290.06,
subdivision 2c, paragraph (e).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2017.
new text end

Sec. 35.

new text begin [290.0693] EQUITY AND OPPORTUNITY IN EDUCATION TAX CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Eligible student" means a student who:
new text end

new text begin (1) resides in Minnesota;
new text end

new text begin (2) is a member of a household that has total annual income during the year prior to
initial receipt of a qualified scholarship, without consideration of the benefits under this
program that does not exceed an amount equal to two times the income standard used to
qualify for a reduced-price meal under the National School Lunch Program; and
new text end

new text begin (3) meets one of the following criteria:
new text end

new text begin (i) attended a school, as defined in section 120A.22, subdivision 4, in the semester
preceding initial receipt of a qualified scholarship;
new text end

new text begin (ii) is younger than age seven and not enrolled in kindergarten or first grade in the
semester preceding initial receipt of a qualified scholarship;
new text end

new text begin (iii) previously received a qualified scholarship under this section; or
new text end

new text begin (iv) lived in Minnesota for less than a year prior to initial receipt of a qualified
scholarship.
new text end

new text begin (c) "Equity and opportunity in education donation" means a donation to a qualified
foundation that awards qualified scholarships or makes qualified grants or to a qualified
public school foundation.
new text end

new text begin (d) "Household" means household as used to determine eligibility under the National
School Lunch Program.
new text end

new text begin (e) "National School Lunch Program" means the program in United States Code, title
42, section 1758.
new text end

new text begin (f) "Qualified charter school" means a charter elementary or secondary school in
Minnesota at which at least 30 percent of students qualify for a free or reduced-price meal
under the National School Lunch Program.
new text end

new text begin (g) "Qualified foundation" means a nonprofit organization granted an exemption from
the Previous federal Next income tax under section 501(c)(3) of the Internal Revenue Code that has been
approved as a qualified foundation by the commissioner of revenue under subdivision 5.
new text end

new text begin (h) "Qualified grant" means a grant from a qualified foundation to a qualified charter
school for use in support of the school's mission of educating students in academics, arts,
or athletics, including transportation.
new text end

new text begin (i) "Qualified public school foundation" means a qualified foundation formed for the
primary purpose of supporting one or more public schools or school districts in Minnesota
at which at least 30 percent of students qualify for a free or reduced-price meal under the
National School Lunch Program.
new text end

new text begin (j) "Qualified scholarship" means a payment from a qualified foundation to or on behalf
of the parent or guardian of an eligible student for payment of tuition for enrollment in
grades kindergarten through 12 at a qualified school. A qualified scholarship must not
exceed an amount greater than 70 percent of the state average general education revenue
under section 126C.10, subdivision 1, per pupil unit.
new text end

new text begin (k) "Qualified school" means a school operated in Minnesota that is a nonpublic
elementary or secondary school in Minnesota wherein a resident may legally fulfill the
state's compulsory attendance laws that is not operated for profit, and that adheres to the
provisions of United States Code, title 42, section 1981, and chapter 363A.
new text end

new text begin (l) "Total annual income" means the income measure used to determine eligibility under
the National School Lunch Program.
new text end

new text begin Subd. 2. new text end

new text begin Credit allowed. new text end

new text begin (a) An individual or corporate taxpayer who has been issued
a credit certificate under subdivision 3 is allowed a credit against the tax due under this
chapter equal to 70 percent of the amount of the equity and opportunity donation made
during the taxable year to the qualified foundation, including a qualified public school
foundation, designated on the taxpayer's credit certificate. No credit is allowed if the taxpayer
designates a specific child as the beneficiary of the contribution. No credit is allowed to a
taxpayer for an equity and opportunity in education donation made before the taxpayer was
issued a credit certificate as provided in subdivision 3.
new text end

new text begin (b) The maximum annual credit allowed is:
new text end

new text begin (1) $21,000 for married joint filers for a one-year donation of $30,000;
new text end

new text begin (2) $10,500 for other individual filers for a one-year donation of $15,000; and
new text end

new text begin (3) $105,000 for corporate filers for a one-year donation of $150,000.
new text end

new text begin (c) A taxpayer must provide a copy of the receipt provided by the qualified foundation
when claiming the credit for the donation if requested by the commissioner.
new text end

new text begin (d) The credit is limited to the liability for tax under this chapter, including the tax
imposed by sections 290.0921 and 290.0922.
new text end

new text begin (e) If the amount of the credit under this subdivision for any taxable year exceeds the
limitations under paragraph (d), the excess is a credit carryover to each of the five succeeding
taxable years. The entire amount of the excess unused credit for the taxable year must be
carried first to the earliest of the taxable years to which the credit may be carried. The
amount of the unused credit that may be added under this paragraph may not exceed the
taxpayer's liability for tax, less the credit for the taxable year. No credit may be carried to
a taxable year more than five years after the taxable year in which the credit was earned.
new text end

new text begin Subd. 3. new text end

new text begin Application for credit certificate. new text end

new text begin (a) The commissioner must make applications
for tax credits for 2018 available on the department's Web site by January 1, 2018.
Applications for subsequent years must be made available by January 1 of the taxable year.
new text end

new text begin (b) A taxpayer must apply to the commissioner for an equity and opportunity in education
tax credit certificate. The application must be in the form and manner specified by the
commissioner. The application must designate the qualified foundation to which the taxpayer
intends to make a donation, and if the donation is for the purpose of awarding qualified
scholarships, awarding qualified grants, or to a qualified public school foundation. The
commissioner must begin accepting applications for a taxable year on January 1. The
commissioner must issue tax credit certificates under this section on a first-come, first-served
basis until the maximum statewide credit amounts have been reached. The certificates must
list the qualified foundation, or the qualified public school foundation, the taxpayer designated
on the application, and if the donation is to be used for awarding qualified scholarships,
awarding qualified grants, or making expenditures in support of one or more public schools
or school districts.
new text end

new text begin (c) The maximum statewide credit amount for tax credits for donations to qualified
foundations for the purpose of awarding qualified scholarships is $27,000,000 for taxable
years beginning after December 31, 2017, and before January 1, 2019, and $13,500,000 per
taxable year for taxable years beginning after December 31, 2018.
new text end

new text begin (d) The maximum statewide credit amount for donations to qualified foundations for
the purpose of awarding qualified grants and for donations to qualified public school
foundations is $3,000,000 for taxable years beginning after December 31, 2017, and before
January 1, 2019, and $1,500,000 per taxable year for taxable years beginning after December
31, 2018.
new text end

new text begin (e) Any portion of a taxable year's credits for which a tax credit certificate is not issued
does not cancel and may be carried forward to subsequent taxable years.
new text end

new text begin (f) The commissioner must not issue a tax credit certificate for an amount greater than
the limits in subdivision 2.
new text end

new text begin (g) The commissioner must not issue a credit certificate for an application that designates
a qualified foundation that the commissioner has barred from participation as provided in
subdivision 5.
new text end

new text begin Subd. 4. new text end

new text begin Responsibilities of qualified foundations. new text end

new text begin (a) An entity that is eligible to be
a qualified foundation must apply to the commissioner by September 15 of the year preceding
the year in which it will first receive donations that qualify for a credit under this section.
The application must be in the form and manner prescribed by the commissioner. The
application must:
new text end

new text begin (1) demonstrate to the commissioner that the entity is exempt from the Previous federal Next income
tax as an organization described in section 501(c)(3) of the Internal Revenue Code;
new text end

new text begin (2) demonstrate the entity's financial accountability by submitting its most recent audited
financial statement prepared by a certified public accountant firm licensed under chapter
326A using the Statements on Auditing Standards issued by the Audit Standards Board of
the American Institute of Certified Public Accountants; and
new text end

new text begin (3) specify if the entity intends to award qualified scholarships, award qualified grants,
or if the entity is a qualified public school foundation. An entity may award both qualified
scholarships and qualified grants.
new text end

new text begin (b) A qualified foundation must provide to taxpayers who make donations or
commitments to donate a receipt or verification on a form approved by the commissioner.
new text end

new text begin (c) A qualified foundation that awards qualified scholarships must:
new text end

new text begin (1) award qualified scholarships to eligible students;
new text end

new text begin (2) not restrict the availability of scholarships to students of one qualified school;
new text end

new text begin (3) not charge a fee of any kind for a child to be considered for a scholarship; and
new text end

new text begin (4) require a qualified school receiving payment of tuition through a scholarship funded
by contributions qualifying for the tax credit under this section to sign an agreement that it
will not use different admissions standards for a student with a qualified scholarship.
new text end

new text begin (d) A qualified foundation that awards qualified scholarships must, in each year it awards
qualified scholarships to eligible students to enroll in a qualified school, obtain from the
qualified school documentation that the school:
new text end

new text begin (i) complies with all health and safety laws or codes that apply to nonpublic schools;
new text end

new text begin (ii) holds a valid occupancy permit if required by its municipality;
new text end

new text begin (iii) certifies that it adheres to the provisions of chapter 363A and United States Code,
title 42, section 1981; and
new text end

new text begin (iv) provides academic accountability to parents of students in the program by regularly
reporting to the parents on the student's progress.
new text end

new text begin A qualified foundation must make the documentation available to the commissioner on
request.
new text end

new text begin (e) A qualified foundation must, by June 1 of each year following a year in which it
receives donations, provide the following information to the commissioner:
new text end

new text begin (1) financial information that demonstrates the financial viability of the qualified
foundation, if it is to receive donations of $150,000 or more during the year;
new text end

new text begin (2) documentation that it has conducted criminal background checks on all of its
employees and board members and has excluded from employment or governance any
individuals who might reasonably pose a risk to the appropriate use of contributed funds;
new text end

new text begin (3) consistent with paragraph (f), document that it has used amounts received as donations
to provide qualified scholarships, to make qualified grants, or to make expenditures in
support of one or more public schools or school districts, as specified on the tax credit
certificates issued for the donations, within one calendar year of the calendar year in which
it received the donation;
new text end

new text begin (4) if the qualified foundation awards qualified scholarships, a list of qualified schools
that enrolled eligible students to whom the qualified foundation awarded qualified
scholarships;
new text end

new text begin (5) if the qualified foundation makes qualified grants, a list of qualified charter schools
to which the qualified foundation made qualified grants;
new text end

new text begin (6) if the qualified foundation is a qualified public school foundation, a list of expenditures
made in support of the mission of one or more public schools or school districts of educating
students in academics, arts, or athletics, including transportation; and
new text end

new text begin (7) the following information prepared by a certified public accountant regarding
donations received in the previous calendar year:
new text end

new text begin (i) the total number and total dollar amount of donations received from taxpayers;
new text end

new text begin (ii) the dollar amount of donations used for Previous administrative Next expenses, as allowed by
paragraph (f);
new text end

new text begin (iii) if the qualified foundation awarded qualified scholarships, the total number and
dollar amount of qualified scholarships awarded;
new text end

new text begin (iv) if the qualified foundation made qualified grants, the total number and dollar amount
of qualified grants made; and
new text end

new text begin (v) if the qualified foundation is a qualified public school foundation, the total number
and dollar amount of expenditures made in support of the mission of one or more public
schools or school districts of educating students in academics, arts, or athletics, including
transportation.
new text end

new text begin (f) The foundation may use up to five percent of the amounts received as donations for
reasonable Previous administrative Next expenses, including but not limited to fund-raising, scholarship
tracking, and reporting requirements.
new text end

new text begin Subd. 5. new text end

new text begin Responsibilities of commissioner. new text end

new text begin (a) The commissioner must make
applications for an entity to be approved as a qualified foundation for a taxable year available
on the department's Web site by August 1 of the year preceding the taxable year. The
commissioner must approve an application that provides the documentation required in
subdivision 4, paragraph (a), clauses (1) to (3), within 60 days of receiving the application.
The commissioner must notify a foundation that provides incomplete documentation and
the foundation may resubmit its application within 30 days.
new text end

new text begin (b) By November 15 of each year, the commissioner must post on the department's Web
site the names and addresses of qualified foundations for the next taxable year. For each
qualified foundation, the list must indicate if the foundation intends to award qualified
scholarships, award qualified grants, or is a qualified public school foundation. The
commissioner must regularly update the names and addresses of any qualified foundations
that have been barred from participating in the program.
new text end

new text begin (c) The commissioner must prescribe a standardized format for a receipt to be issued by
a qualified foundation to a taxpayer to indicate the amount of a donation received and of a
commitment to make a donation.
new text end

new text begin (d) The commissioner must prescribe a standardized format for qualified foundations
to report the information required under subdivision 4, paragraph (e).
new text end

new text begin (e) The commissioner may conduct either a financial review or audit of a qualified
foundation upon finding evidence of fraud or intentional misreporting. If the commissioner
determines that the qualified foundation committed fraud or intentionally misreported
information, the qualified foundation is barred from further program participation.
new text end

new text begin (f) If a qualified foundation fails to submit the documentation required under subdivision
4, paragraph (e), by June 1, the commissioner must notify the qualified foundation by July
1. A qualified foundation that fails to submit the required information by August 1 is barred
from participation for the next taxable year.
new text end

new text begin (g) If a qualified foundation fails to comply with the requirements of subdivision 4,
paragraph (e), the commissioner must by September 1 notify the qualified foundation that
it has until November 1 to document that it has remedied its noncompliance. A qualified
foundation that fails to document that it has remedied its noncompliance by November 1 is
barred from participation for the next taxable year.
new text end

new text begin (h) A qualified foundation barred under paragraph (f) or (g) may become eligible to
participate by submitting the required information in future years.
new text end

new text begin (i) Determinations of the commissioner under this subdivision are not considered rules
and are not subject to the Previous Administrative Next Procedures Act in chapter 14.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment for
donations made and credits allowed in taxable years beginning after December 31, 2017.
new text end

Sec. 36.

new text begin [290.0803] SOCIAL SECURITY SUBTRACTION.
new text end

new text begin (a) An individual is allowed a subtraction from Previous federal Next taxable income equal to Social
Security benefits to the extent included in Previous federal Next taxable income. The subtraction under
this section is reduced by the amount of provisional income over a threshold amount, but
in no case is the subtraction less than zero. For married couples filing joint returns and
surviving spouses the threshold is $72,000. For all other filers the threshold is $56,000.
new text end

new text begin (b) For purposes of this section, "provisional income" means modified adjusted gross
income, as defined in section 86(b)(2) of the Internal Revenue Code, plus one-half of the
amount of Social Security benefits received during the taxable year.
new text end

new text begin (c) Notwithstanding the thresholds provided in paragraph (a), for taxable years beginning
after December 31, 2016, and before January 1, 2019, the threshold for married couples
filing joint returns and surviving spouses is $61,000 and the threshold for all other filers is
$46,500.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016.
new text end

Sec. 37.

new text begin [290.0804] SECTION 179 SUBTRACTION.
new text end

new text begin Subdivision 1. new text end

new text begin Current year section 179 allowance. new text end

new text begin (a) In each of the five taxable
years immediately following the taxable year in which an addition is required under section
290.0131, subdivision 10, or its predecessor provisions, the current year allowance equals
one-fifth of the addition made by the taxpayer under section 290.0131, subdivision 10.
new text end

new text begin (b) For a shareholder of an S corporation, the current year allowance is reduced by the
positive value of any net operating loss under section 172 of the Internal Revenue Code
generated for the taxable year of the addition and, if the net operating loss exceeds the
addition for the taxable year, the current year allowance is zero.
new text end

new text begin (c) A taxpayer is allowed a current year section 179 allowance subtraction from Previous federal Next
taxable income under section 290.0132, subdivision 14, as determined under this subdivision.
new text end

new text begin Subd. 2. new text end

new text begin Carryover section 179 allowance. new text end

new text begin (a) For purposes of this subdivision, the
current year allowance under subdivision 1 is the last modification allowed under section
290.0132 in determining net income. If the amount allowed under subdivision 1 exceeds
net income computed without regard to the current year allowance, then the excess is a
carryover allowance in each of the ten succeeding taxable years. The entire amount of the
carryover allowance is carried first to the earliest taxable year to which the carryover may
be carried, and then to each succeeding year to which the carryover may be carried.
new text end

new text begin (b) If applying paragraph (a) to a taxable year beginning after December 31, 2013, and
before January 1, 2017, would result in a carryover allowance in that year, the taxpayer may
use the resulting amount as a carryover allowance starting in a taxable year beginning after
December 31, 2016, and the first year of the ten-year period under paragraph (a) is taxable
year 2017.
new text end

new text begin (c) A taxpayer is allowed a carryover section 179 allowance subtraction under section
290.0132, subdivision 26, as determined under this subdivision.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016.
new text end

Sec. 38.

Minnesota Statutes 2016, section 290.091, subdivision 2, is amended to read:


Subd. 2.

Definitions.

For purposes of the tax imposed by this section, the following
terms have the meanings given:

(a) "Alternative minimum taxable income" means the sum of the following for the taxable
year:

(1) the taxpayer's Previous federal Next alternative minimum taxable income as defined in section
55(b)(2) of the Internal Revenue Code;

(2) the taxpayer's itemized deductions allowed in computing Previous federal Next alternative minimum
taxable income, but excluding:

(i) the charitable contribution deduction under section 170 of the Internal Revenue Code;

(ii) the medical expense deduction;

(iii) the casualty, theft, and disaster loss deduction; and

(iv) the impairment-related work expenses of a disabled person;

(3) for depletion allowances computed under section 613A(c) of the Internal Revenue
Code, with respect to each property (as defined in section 614 of the Internal Revenue Code),
to the extent not included in Previous federal Next alternative minimum taxable income, the excess of the
deduction for depletion allowable under section 611 of the Internal Revenue Code for the
taxable year over the adjusted basis of the property at the end of the taxable year (determined
without regard to the depletion deduction for the taxable year);

(4) to the extent not included in Previous federal Next alternative minimum taxable income, the amount
of the tax preference for intangible drilling cost under section 57(a)(2) of the Internal Revenue
Code determined without regard to subparagraph (E);

(5) to the extent not included in Previous federal Next alternative minimum taxable income, the amount
of interest income as provided by section 290.0131, subdivision 2; and

(6) the amount of addition required by section 290.0131, subdivisions 9 to 11;

less the sum of the amounts determined under the following:

(1) interest income as defined in section 290.0132, subdivision 2;

(2) an overpayment of state income tax as provided by section 290.0132, subdivision 3,
to the extent included in Previous federal Next alternative minimum taxable income;

(3) the amount of investment interest paid or accrued within the taxable year on
indebtedness to the extent that the amount does not exceed net investment income, as defined
in section 163(d)(4) of the Internal Revenue Code. Interest does not include amounts deducted
in computing Previous federal Next adjusted gross income;

(4) amounts subtracted from Previous federal Next taxable income as provided by section 290.0132,
subdivisions 7
, 9 to 15, 17, deleted text begin anddeleted text end 21new text begin , and 24 to 27new text end ; and

(5) the amount of the net operating loss allowed under section 290.095, subdivision 11,
paragraph (c).

In the case of an estate or trust, alternative minimum taxable income must be computed
as provided in section 59(c) of the Internal Revenue Code.

(b) "Investment interest" means investment interest as defined in section 163(d)(3) of
the Internal Revenue Code.

(c) "Net minimum tax" means the minimum tax imposed by this section.

(d) "Regular tax" means the tax that would be imposed under this chapter (without regard
to this section and section 290.032), reduced by the sum of the nonrefundable credits allowed
under this chapter.

(e) "Tentative minimum tax" equals 6.75 percent of alternative minimum taxable income
after subtracting the exemption amount determined under subdivision 3.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016.
new text end

Sec. 39.

Minnesota Statutes 2016, section 291.005, subdivision 1, as amended by Laws
2017, chapter 1, section 8, is amended to read:


Subdivision 1.

Scope.

Unless the context otherwise clearly requires, the following terms
used in this chapter shall have the following meanings:

(1) "Commissioner" means the commissioner of revenue or any person to whom the
commissioner has delegated functions under this chapter.

(2) " Previous Federal Next gross estate" means the gross estate of a decedent as required to be valued
and otherwise determined for Previous federal Next estate tax purposes under the Internal Revenue Code,
increased by the value of any property in which the decedent had a qualifying income interest
for life and for which an election was made under section 291.03, subdivision 1d, for
Minnesota estate tax purposes, but was not made for Previous federal Next estate tax purposes.

(3) "Internal Revenue Code" means the United States Internal Revenue Code of 1986,
as amended through December 16, 2016.

(4) "Minnesota gross estate" means the Previous federal Next gross estate of a decedent after (a)
excluding therefrom any property included in the estate which has its situs outside Minnesota,
and (b) including any property omitted from the Previous federal Next gross estate which is includable in
the estate, has its situs in Minnesota, and was not disclosed to Previous federal Next taxing authorities.

(5) "Nonresident decedent" means an individual whose domicile at the time of death
was not in Minnesota.

(6) "Personal representative" means the executor, administrator or other person appointed
by the court to administer and dispose of the property of the decedent. If there is no executor,
administrator or other person appointed, qualified, and acting within this state, then any
person in actual or constructive possession of any property having a situs in this state which
is included in the Previous federal Next gross estate of the decedent shall be deemed to be a personal
representative to the extent of the property and the Minnesota estate tax due with respect
to the property.

(7) "Resident decedent" means an individual whose domicile at the time of death was
in Minnesota.new text begin The provisions of section 290.01, subdivision 7, paragraphs (c) and (d), apply
to determinations of domicile under this chapter.
new text end

(8) "Situs of property" means, with respect to:

(i) real property, the state or country in which it is located;

(ii) tangible personal property, the state or country in which it was normally kept or
located at the time of the decedent's death or for a gift of tangible personal property within
three years of death, the state or country in which it was normally kept or located when the
gift was executed;

(iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue
Code, owned by a nonresident decedent and that is normally kept or located in this state
because it is on loan to an organization, qualifying as exempt from taxation under section
501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of the art is
deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and

(iv) intangible personal property, the state or country in which the decedent was domiciled
at death or for a gift of intangible personal property within three years of death, the state or
country in which the decedent was domiciled when the gift was executed.

For a nonresident decedent with an ownership interest in a pass-through entity with
assets that include real or tangible personal property, situs of the real or tangible personal
property, including qualified works of art, is determined as if the pass-through entity does
not exist and the real or tangible personal property is personally owned by the decedent. If
the pass-through entity is owned by a person or persons in addition to the decedent, ownership
of the property is attributed to the decedent in proportion to the decedent's capital ownership
share of the pass-through entity.

(9) "Pass-through entity" includes the following:

(i) an entity electing S corporation status under section 1362 of the Internal Revenue
Code;

(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;

(iii) a single-member limited liability company or similar entity, regardless of whether
it is taxed as an association or is disregarded for Previous federal Next income tax purposes under Code
of Previous Federal Next Regulations, title 26, section 301.7701-3; or

(iv) a trust to the extent the property is includible in the decedent's Previous federal Next gross estate;
but excludes

(v) an entity whose ownership interest securities are traded on an exchange regulated
by the Securities and Exchange Commission as a national securities exchange under section
6 of the Securities Exchange Act, United States Code, title 15, section 78f.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for estates of decedents
dying after December 31, 2016.
new text end

Sec. 40.

Minnesota Statutes 2016, section 291.016, subdivision 3, is amended to read:


Subd. 3.

Subtraction.

The deleted text begin value of qualified small business property under section
291.03, subdivision 9, and the value of qualified farm property under section 291.03,
subdivision 10
, or the result of $5,000,000 minus the amount for the year of death listed in
clauses (1) to (5), whichever is less,
deleted text end new text begin decedent's applicable Previous federal Next exclusion amount under
section 2010(c)(2) of the Internal Revenue Code
new text end may be subtracted in computing the
Minnesota taxable estate but must not reduce the Minnesota taxable estate to less than zerodeleted text begin :deleted text end new text begin .
new text end

deleted text begin (1) $1,200,000 for estates of decedents dying in 2014;
deleted text end

deleted text begin (2) $1,400,000 for estates of decedents dying in 2015;
deleted text end

deleted text begin (3) $1,600,000 for estates of decedents dying in 2016;
deleted text end

deleted text begin (4) $1,800,000 for estates of decedents dying in 2017; and
deleted text end

deleted text begin (5) $2,000,000 for estates of decedents dying in 2018 and thereafter.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for estates of decedents
dying after December 31, 2016.
new text end

Sec. 41.

Minnesota Statutes 2016, section 291.03, subdivision 1, is amended to read:


Subdivision 1.

Tax amount.

The tax imposed must be computed by applying to the
Minnesota taxable estate the following schedule of rates and then the resulting amount
multiplied by a fraction, not greater than one, the numerator of which is the value of the
Minnesota gross estate plus the value of gifts under section 291.016, subdivision 2, clause
(3), with a Minnesota situs, and the denominator of which is the Previous federal Next gross estate plus
the value of gifts under section 291.016, subdivision 2, clause (3):

deleted text begin (a) For estates of decedents dying in 2014:
deleted text end

deleted text begin Amount of Minnesota Taxable Estate
deleted text end
deleted text begin Rate of Tax
deleted text end
deleted text begin Not over $1,200,000
deleted text end
deleted text begin None
deleted text end
deleted text begin Over $1,200,000 but not over $1,400,000
deleted text end
deleted text begin nine percent of the excess over $1,200,000
deleted text end
deleted text begin Over $1,400,000 but not over $3,600,000
deleted text end
deleted text begin $18,000 plus ten percent of the excess over
$1,400,000
deleted text end
deleted text begin Over $3,600,000 but not over $4,100,000
deleted text end
deleted text begin $238,000 plus 10.4 percent of the excess over
$3,600,000
deleted text end
deleted text begin Over $4,100,000 but not over $5,100,000
deleted text end
deleted text begin $290,000 plus 11.2 percent of the excess over
$4,100,000
deleted text end
deleted text begin Over $5,100,000 but not over $6,100,000
deleted text end
deleted text begin $402,000 plus 12 percent of the excess over
$5,100,000
deleted text end
deleted text begin Over $6,100,000 but not over $7,100,000
deleted text end
deleted text begin $522,000 plus 12.8 percent of the excess over
$6,100,000
deleted text end
deleted text begin Over $7,100,000 but not over $8,100,000
deleted text end
deleted text begin $650,000 plus 13.6 percent of the excess over
$7,100,000
deleted text end
deleted text begin Over $8,100,000 but not over $9,100,000
deleted text end
deleted text begin $786,000 plus 14.4 percent of the excess over
$8,100,000
deleted text end
deleted text begin Over $9,100,000 but not over $10,100,000
deleted text end
deleted text begin $930,000 plus 15.2 percent of the excess over
$9,100,000
deleted text end
deleted text begin Over $10,100,000
deleted text end
deleted text begin $1,082,000 plus 16 percent of the excess over
$10,100,000
deleted text end

deleted text begin (b) For estates of decedents dying in 2015:
deleted text end

deleted text begin Amount of Minnesota Taxable Estate
deleted text end
deleted text begin Rate of Tax
deleted text end
deleted text begin Not over $1,400,000
deleted text end
deleted text begin None
deleted text end
deleted text begin Over $1,400,000 but not over $3,600,000
deleted text end
deleted text begin ten percent of the excess over $1,400,000
deleted text end
deleted text begin Over $3,600,000 but not over $6,100,000
deleted text end
deleted text begin $220,000 plus 12 percent of the excess over
$3,600,000
deleted text end
deleted text begin Over $6,100,000 but not over $7,100,000
deleted text end
deleted text begin $520,000 plus 12.8 percent of the excess over
$6,100,000
deleted text end
deleted text begin Over $7,100,000 but not over $8,100,000
deleted text end
deleted text begin $648,000 plus 13.6 percent of the excess over
$7,100,000
deleted text end
deleted text begin Over $8,100,000 but not over $9,100,000
deleted text end
deleted text begin $784,000 plus 14.4 percent of the excess over
$8,100,000
deleted text end
deleted text begin Over $9,100,000 but not over $10,100,000
deleted text end
deleted text begin $928,000 plus 15.2 percent of the excess over
$9,100,000
deleted text end
deleted text begin Over $10,100,000
deleted text end
deleted text begin $1,080,000 plus 16 percent of the excess over
$10,100,000
deleted text end

deleted text begin (c) For estates of decedents dying in 2016:
deleted text end

deleted text begin Amount of Minnesota Taxable Estate
deleted text end
deleted text begin Rate of Tax
deleted text end
deleted text begin Not over $1,600,000
deleted text end
deleted text begin None
deleted text end
deleted text begin Over $1,600,000 but not over $2,600,000
deleted text end
deleted text begin ten percent of the excess over $1,600,000
deleted text end
deleted text begin Over $2,600,000 but not over $6,100,000
deleted text end
deleted text begin $100,000 plus 12 percent of the excess over
$2,600,000
deleted text end
deleted text begin Over $6,100,000 but not over $7,100,000
deleted text end
deleted text begin $520,000 plus 12.8 percent of the excess over
$6,100,000
deleted text end
deleted text begin Over $7,100,000 but not over $8,100,000
deleted text end
deleted text begin $648,000 plus 13.6 percent of the excess over
$7,100,000
deleted text end
deleted text begin Over $8,100,000 but not over $9,100,000
deleted text end
deleted text begin $784,000 plus 14.4 percent of the excess over
$8,100,000
deleted text end
deleted text begin Over $9,100,000 but not over $10,100,000
deleted text end
deleted text begin $928,000 plus 15.2 percent of the excess over
$9,100,000
deleted text end
deleted text begin Over $10,100,000
deleted text end
deleted text begin $1,080,000 plus 16 percent of the excess over
$10,100,000
deleted text end

deleted text begin (d)deleted text end For estates of decedents dying in 2017new text begin and thereafternew text end :

deleted text begin Amount of Minnesota Taxable Estate
deleted text end
deleted text begin Rate of Tax
deleted text end
deleted text begin Not over $1,800,000
deleted text end
deleted text begin None
deleted text end
deleted text begin Over $1,800,000 but not over $2,100,000
deleted text end
deleted text begin ten percent of the excess over $1,800,000
deleted text end
deleted text begin Over $2,100,000 but not over $5,100,000
deleted text end
deleted text begin $30,000 plus 12 percent of the excess over
$2,100,000
deleted text end
deleted text begin Over $5,100,000 but not over $7,100,000
deleted text end
deleted text begin $390,000 plus 12.8 percent of the excess over
$5,100,000
deleted text end
deleted text begin Over $7,100,000 but not over $8,100,000
deleted text end
deleted text begin $646,000 plus 13.6 percent of the excess over
$7,100,000
deleted text end
deleted text begin Over $8,100,000 but not over $9,100,000
deleted text end
deleted text begin $782,000 plus 14.4 percent of the excess over
$8,100,000
deleted text end
deleted text begin Over $9,100,000 but not over $10,100,000
deleted text end
deleted text begin $926,000 plus 15.2 percent of the excess over
$9,100,000
deleted text end
deleted text begin Over $10,100,000
deleted text end
deleted text begin $1,078,000 plus 16 percent of the excess over
$10,100,000
deleted text end

deleted text begin (e) For estates of decedents dying in 2018 and thereafter:
deleted text end

Amount of Minnesota Taxable Estate
Rate of Tax
Not over deleted text begin $2,000,000deleted text end new text begin $7,100,000
new text end
deleted text begin None deleted text end new text begin 13 percent
new text end
deleted text begin Over $2,000,000 but not over $2,600,000
deleted text end
deleted text begin ten percent of the excess over $2,000,000
deleted text end
deleted text begin Over $2,600,000 but not over $7,100,000
deleted text end
deleted text begin $60,000 plus 13 percent of the excess over
$2,600,000
deleted text end
Over $7,100,000 but not over $8,100,000
deleted text begin $645,000deleted text end new text begin $923,000new text end plus 13.6 percent of the
excess over $7,100,000
Over $8,100,000 but not over $9,100,000
deleted text begin $781,000deleted text end new text begin $1,059,000new text end plus 14.4 percent of the
excess over $8,100,000
Over $9,100,000 but not over $10,100,000
deleted text begin $925,000deleted text end new text begin $1,203,000new text end plus 15.2 percent of the
excess over $9,100,000
Over $10,100,000
deleted text begin $1,077,000deleted text end new text begin $1,355,000new text end plus 16 percent of the
excess over $10,100,000

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for estates of decedents
dying after December 31, 2016.
new text end

Sec. 42.

Minnesota Statutes 2016, section 297I.20, is amended by adding a subdivision
to read:


new text begin Subd. 4. new text end

new text begin Minnesota housing tax credit. new text end

new text begin An insurance company may claim a credit
against the premiums tax imposed under this chapter equal to the amount indicated on the
eligibility statement issued to the company under section 462A.39, subdivision 3. If the
amount of the credit exceeds the liability for tax under this chapter, the excess is a credit
carryover to each of the 11 succeeding taxable years. The entire amount of the excess unused
credit for the taxable year must be carried first to the earliest of the taxable years to which
the credit may be carried and then to each successive year to which the credit may be carried.
This credit does not affect the calculation of police and fire aid under section 69.021.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016.
new text end

Sec. 43.

new text begin [462A.39] MINNESOTA HOUSING TAX CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given unless the context clearly requires otherwise.
new text end

new text begin (b) "Compliance agreement" means an agreement:
new text end

new text begin (1) between the owner of a qualified Minnesota project and the agency or suballocator;
new text end

new text begin (2) that is recorded as an affordable housing restriction on the real property on which
the qualified Minnesota project is located; and
new text end

new text begin (3) that requires the project to be operated under the requirements of this section for the
compliance period.
new text end

new text begin The agreement may be subordinated to the lien of a bank or other institutional lender
providing financing to the qualified Minnesota project upon the request of the bank or
lender.
new text end

new text begin (c) "Compliance period" means the 15-year period beginning with the first taxable year
a credit is allowed under this section.
new text end

new text begin (d) "Eligibility statement" means a statement issued by the agency or suballocator to the
owner certifying that a project is a qualified Minnesota project and documenting allocation
of the Minnesota housing tax credit. The eligibility statement must specify the annual amount
of the credit allocated to the project for the taxable year and for the five following taxable
years and be in a form prescribed by the commissioner of the agency, in consultation with
the commissioner of revenue.
new text end

new text begin (e) " Previous Federal Next low-income housing tax credit" means the Previous federal Next tax credit provided in
section 42 of the Internal Revenue Code.
new text end

new text begin (f) "Greater Minnesota" means the area of Minnesota located outside of the metropolitan
area as defined in section 473.121, subdivision 2.
new text end

new text begin (g) "Internal Revenue Code" has the meaning given in section 290.01, subdivision 31.
new text end

new text begin (h) "Minnesota credit period" means the six taxable years beginning in the taxable year
in which a credit is allocated under subdivision 2.
new text end

new text begin (i) "Owner" means the owner of a qualified Minnesota project.
new text end

new text begin (j) "Qualified Minnesota project" means a low-income housing project that is:
new text end

new text begin (1) located in Minnesota;
new text end

new text begin (2) financed with tax-exempt bonds pursuant to section 42(i)(2) of the Internal Revenue
Code;
new text end

new text begin (3) determined by the agency to be eligible for a Previous federal Next low-income housing tax credit
without regard to whether or not a Previous federal Next low-income housing credit is allocated to the
project; and
new text end

new text begin (4) a project for which the owner has entered into a compliance agreement with the
agency or the suballocator that is enforceable by state and local agencies.
new text end

new text begin (k) "Suballocator" means an allocating agency, other than the agency, of low-income
Previous federal Next housing credits and credits under this section as provided in section 462A.222.
new text end

new text begin (l) "Taxpayer" has the meaning given in section 290.0683, subdivision 1.
new text end

new text begin (m) Terms not otherwise defined in this subdivision have the meanings given in section
42 of the Internal Revenue Code.
new text end

new text begin Subd. 2. new text end

new text begin Minnesota housing tax credit; allocation. new text end

new text begin (a) The agency and all suballocators
may annually allocate credits during a four-year period beginning January 1, 2017, and
ending December 31, 2020. The amount of credits that may be allocated each year is the
sum of:
new text end

new text begin (1) $7,000,000; and
new text end

new text begin (2) any unused tax credits, if any, for the preceding calendar years.
new text end

new text begin (b) The agency shall allocate credits only to qualified Minnesota projects that the agency
determines:
new text end

new text begin (1) are eligible for the Previous federal Next low-income housing tax credit; and
new text end

new text begin (2) are not financially feasible without the credit.
new text end

new text begin (c) The agency must allocate 50 percent of the total amount allocated to qualified
Minnesota projects in greater Minnesota.
new text end

new text begin (d) The agency may not allocate more than one credit to any one qualified Minnesota
project.
new text end

new text begin (e) The allocation to any one qualified Minnesota project equals one-sixth of the total
Previous federal Next low-income housing tax credit allowable over the ten-year Previous federal Next credit period,
without regard to whether the project was allowed a Previous federal Next low-income housing tax credit.
new text end

new text begin Subd. 3. new text end

new text begin Credit allowed. new text end

new text begin When the agency or a suballocator allocates a credit amount
to the owner of a project, the agency or suballocator must issue an eligibility statement to
the owner. The owner may claim the amount allocated in each year of the Minnesota credit
period.
new text end

new text begin Subd. 4. new text end

new text begin Credit duration. new text end

new text begin Except for unused credits carried forward under section
290.0683, the agency may allocate a credit and issue an eligibility statement to a taxpayer
for a Minnesota housing tax credit for a project one time, with the credit allowed in each
year of the Minnesota credit period.
new text end

new text begin Subd. 5. new text end

new text begin Recapture; repayment. new text end

new text begin (a) If within the Minnesota credit period the agency
or suballocator finds that a qualified project issued an eligibility statement is not meeting
the terms of the compliance agreement, the owner must repay the following percentage of
the credit awarded to the project by the agency or the suballocator:
new text end

new text begin Year of the
new text end
new text begin Percentage of credit required
new text end
new text begin compliance period:
new text end
new text begin to be repaid:
new text end
new text begin First
new text end
new text begin 100 percent
new text end
new text begin Second
new text end
new text begin 83 percent
new text end
new text begin Third
new text end
new text begin 66 percent
new text end
new text begin Fourth
new text end
new text begin 49 percent
new text end
new text begin Fifth
new text end
new text begin 32 percent
new text end
new text begin Sixth and later
new text end
new text begin 16 percent
new text end

new text begin (b) No holder of the credit other than the owner is responsible for repayment of the
credit.
new text end

new text begin (c) Amounts repaid under this subdivision are credited to the general fund.
new text end

new text begin Subd. 6. new text end

new text begin Data privacy. new text end

new text begin Data related to Minnesota housing tax credits are nonpublic
data, or private data on individuals, as defined in section 13.02, subdivision 9 or 12, except
that for each eligibility statement issued under subdivision 3 the location of the qualified
Minnesota housing project is public.
new text end

new text begin Subd. 7. new text end

new text begin Report. new text end

new text begin (a) By January 15 of each year following a year in which the agency
allocates a credit under this section, the agency shall submit a written report to the chairs
and ranking minority members of the legislative committees with jurisdiction over housing
and taxes, in compliance with sections 3.195 and 3.197, on the success and efficiency of
the Minnesota housing tax credit program.
new text end

new text begin (b) The report must:
new text end

new text begin (1) specify the number of qualified Minnesota projects that were allocated tax credits
in the year and the total number of housing units supported in each project;
new text end

new text begin (2) provide descriptive information about each qualified Minnesota housing project that
was allocated credits, including:
new text end

new text begin (i) the geographic location of the project; and
new text end

new text begin (ii) demographic information about residents intended to be served by the project,
including household type, income levels, and rents or set-asides; and
new text end

new text begin (3) provide housing market and demographic information that demonstrates how the
qualified Minnesota projects that were allocated tax credits address the need for affordable
housing in the communities they serve as well as information about any remaining disparities
in affordability of housing in those communities.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment with
credit allocations allowed for taxable years beginning after December 31, 2016.
new text end

Sec. 44.

new text begin [462D.01] CITATION.
new text end

new text begin This chapter may be cited as the "First-Time Home Buyer Savings Account Act."
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 45.

new text begin [462D.02] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this chapter, the following terms have the
meanings given.
new text end

new text begin Subd. 2. new text end

new text begin Account holder. new text end

new text begin "Account holder" means an individual who establishes,
individually or jointly with one or more other individuals, a first-time home buyer savings
account.
new text end

new text begin Subd. 3. new text end

new text begin Allowable closing costs. new text end

new text begin "Allowable closing costs" means a disbursement listed
on a settlement statement for the purchase of a single-family residence in Minnesota by a
qualified beneficiary.
new text end

new text begin Subd. 4. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of revenue.
new text end

new text begin Subd. 5. new text end

new text begin Eligible costs. new text end

new text begin "Eligible costs" means the down payment and allowable closing
costs for the purchase of a single-family residence in Minnesota by a qualified beneficiary.
Eligible costs include paying for the cost of construction of or financing the construction
of a single-family residence.
new text end

new text begin Subd. 6. new text end

new text begin Financial institution. new text end

new text begin "Financial institution" means a bank, bank and trust,
trust company with banking powers, savings bank, savings association, or credit union,
organized under the laws of this state, any other state, or the United States; an industrial
loan and thrift under chapter 53 or the laws of another state and authorized to accept deposits;
or a money market mutual fund registered under the Previous federal Next Investment Company Act of
1940 and regulated under rule 2a-7, promulgated by the Securities and Exchange Commission
under that act.
new text end

new text begin Subd. 7. new text end

new text begin First-time home buyer. new text end

new text begin "First-time home buyer" means an individual, and if
married, the individual's spouse, who has no present ownership interest in a principal
residence during the three-year period ending on the earlier of:
new text end

new text begin (1) the date of the purchase of the single-family residence funded, in part, with proceeds
from the first-time home buyer savings account; or
new text end

new text begin (2) the close of the taxable year for which a subtraction is claimed under sections
290.0132 and 462D.06.
new text end

new text begin Subd. 8. new text end

new text begin First-time home buyer savings account. new text end

new text begin "First-time home buyer savings
account" or "account" means an account with a financial institution that an account holder
designates as a first-time home buyer savings account, as provided in section 462D.03, to
pay or reimburse eligible costs for the purchase of a single-family residence by a qualified
beneficiary.
new text end

new text begin Subd. 9. new text end

new text begin Internal Revenue Code. new text end

new text begin "Internal Revenue Code" has the meaning given in
section 290.01.
new text end

new text begin Subd. 10. new text end

new text begin Principal residence. new text end

new text begin "Principal residence" has the meaning given in section
121 of the Internal Revenue Code.
new text end

new text begin Subd. 11. new text end

new text begin Qualified beneficiary. new text end

new text begin "Qualified beneficiary" means a first-time home buyer
who is a Minnesota resident and is designated as the qualified beneficiary of a first-time
home buyer savings account by the account holder.
new text end

new text begin Subd. 12. new text end

new text begin Single-family residence. new text end

new text begin "Single-family residence" means a single-family
residence located in this state and owned and occupied by or to be occupied by a qualified
beneficiary as the qualified beneficiary's principal residence, which may include a
manufactured home, trailer, mobile home, condominium unit, townhome, or cooperative.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 46.

new text begin [462D.03] ESTABLISHMENT OF ACCOUNTS.
new text end

new text begin Subdivision 1. new text end

new text begin Accounts established. new text end

new text begin An individual may open an account with a financial
institution and designate the account as a first-time home buyer savings account to be used
to pay or reimburse the designated qualified beneficiary's eligible costs.
new text end

new text begin Subd. 2. new text end

new text begin Designation of qualified beneficiary. new text end

new text begin (a) The account holder must designate
a first-time home buyer as the qualified beneficiary of the account by April 15 of the year
following the taxable year in which the account was established. The account holder may
be the qualified beneficiary. The account holder may change the designated qualified
beneficiary at any time, but no more than one qualified beneficiary may be designated for
an account at any one time. For purposes of the one beneficiary restriction, a married couple
qualifies as one beneficiary. Changing the designated qualified beneficiary of an account
does not affect computation of the ten-year period under section 462D.06, subdivision 2.
new text end

new text begin (b) The commissioner shall establish a process for account holders to notify the state
that permits recording of the account, the account holder or holders, any transfers under
section 462D.04, subdivision 2, and the designated qualified beneficiary for each account.
This may be done upon filing the account holder's income tax return or in any other way
the commissioner determines to be appropriate.
new text end

new text begin Subd. 3. new text end

new text begin Joint account holders. new text end

new text begin An individual may jointly own a first-time home buyer
account with another person if the joint account holders file a married joint income tax
return.
new text end

new text begin Subd. 4. new text end

new text begin Multiple accounts. new text end

new text begin (a) An individual may be the account holder of more than
one first-time home buyer savings account, but must not hold or own multiple accounts that
designate the same qualified beneficiary.
new text end

new text begin (b) An individual may be designated as the qualified beneficiary on more than one
first-time home buyer savings account.
new text end

new text begin Subd. 5. new text end

new text begin Contributions. new text end

new text begin Only cash may be contributed to a first-time home buyer savings
account. Individuals other than the account holder may contribute to an account. No limitation
applies to the amount of contributions that may be made to or retained in a first-time home
buyer savings account.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 47.

new text begin [462D.04] ACCOUNT HOLDER RESPONSIBILITIES.
new text end

new text begin Subdivision 1. new text end

new text begin Expenses; reporting. new text end

new text begin The account holder must:
new text end

new text begin (1) not use funds in a first-time home buyer savings account to pay expenses of
administering the account, except that a service fee may be deducted from the account by
the financial institution in which the account is held; and
new text end

new text begin (2) submit to the commissioner, in the form and manner required by the commissioner:
new text end

new text begin (i) detailed information regarding the first-time home buyer savings account, including
a list of transactions for the account during the taxable year and the Form 1099 issued by
the financial institution for the account for the taxable year; and
new text end

new text begin (ii) upon withdrawal of funds from the account, a detailed account of the eligible costs
for which the account funds were expended and a statement of the amount of funds remaining
in the account, if any.
new text end

new text begin Subd. 2. new text end

new text begin Transfers. new text end

new text begin An account holder may withdraw funds, in whole or part, from a
first-time home buyer savings account and deposit the funds in another first-time home
buyer savings account held by a different financial institution or the same financial institution.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 48.

new text begin [462D.05] FINANCIAL INSTITUTIONS.
new text end

new text begin (a) A financial institution is not required to take any action to ensure compliance with
this chapter, including to:
new text end

new text begin (1) designate an account, designate qualified beneficiaries, or modify the financial
institution's account contracts or systems in any way;
new text end

new text begin (2) track the use of money withdrawn from a first-time home buyer savings account;
new text end

new text begin (3) allocate funds in a first-time home buyer savings account among joint account holders
or multiple qualified beneficiaries; or
new text end

new text begin (4) report any information to the commissioner or any other government that is not
otherwise required by law.
new text end

new text begin (b) A financial institution is not responsible or liable for:
new text end

new text begin (1) determining or ensuring that an account satisfies the requirements of this chapter or
that its funds are used for eligible costs; or
new text end

new text begin (2) reporting or remitting taxes or penalties related to the use of a first-time home buyer
savings account.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 49.

new text begin [462D.06] SUBTRACTION; ADDITION; ADDITIONAL TAX.
new text end

new text begin Subdivision 1. new text end

new text begin Subtraction. new text end

new text begin (a) An account holder is allowed a subtraction from Previous federal Next
taxable income equal to the sum of:
new text end

new text begin (1) the amount the individual contributed to a first-time home buyer savings account
during the taxable year not to exceed $5,000, or $10,000 for a married couple filing a joint
return; and
new text end

new text begin (2) interest or dividends earned on the first-time home buyer savings account during the
taxable year.
new text end

new text begin (b) The subtraction under paragraph (a) is allowed each year in which a contribution is
made for the ten taxable years including and following the taxable year in which the account
was established. The total subtraction for all taxable years and for all first-time home buyer
accounts established by the individual for a qualified beneficiary is limited to $50,000. No
person other than the account holder who deposits funds in a first-time home buyer savings
account is allowed a subtraction under this section.
new text end

new text begin Subd. 2. new text end

new text begin Addition. new text end

new text begin (a) An account holder must add to Previous federal Next taxable income the sum
of the following amounts:
new text end

new text begin (1) any amount withdrawn from a first-time home buyer savings account during the
taxable year and used neither to pay eligible costs nor for a transfer permitted under section
462D.04, subdivision 2; and
new text end

new text begin (2) any amount remaining in the first-time home buyer savings account at the close of
the tenth taxable year after the taxable year in which the account was established.
new text end

new text begin (b) For an account that received a transfer under section 462D.04, subdivision 2, the
ten-year period under paragraph (a), clause (2), ends at the close of the earliest taxable year
that applies to either account under that clause.
new text end

new text begin Subd. 3. new text end

new text begin Additional tax. new text end

new text begin The account holder is liable for an additional tax equal to ten
percent of the addition under subdivision 2 for the taxable year. This amount must be added
to the amount due under section 290.06. The tax under this subdivision does not apply to:
new text end

new text begin (1) a withdrawal because of the account holder's or designated qualified beneficiary's
death or disability; and
new text end

new text begin (2) a disbursement of assets of the account under Previous federal Next bankruptcy law.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016.
new text end

Sec. 50. new text begin RECAPTURE TAX; EMINENT DOMAIN.
new text end

new text begin The tax under Minnesota Statutes, section 291.03, subdivision 11, does not apply to
acquisition of title or possession of the qualified property by a Previous federal Next , state, or local
government unit, or any other entity with the power of eminent domain for a public purpose,
as defined in Minnesota Statutes, section 117.025, subdivision 11, within the three-year
holding period.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for estates of decedents
dying after June 30, 2011, and before January 1, 2017.
new text end

Sec. 51. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2016, sections 289A.10, subdivision 1a; 289A.12, subdivision
18; 289A.18, subdivision 3a; 289A.20, subdivision 3a; and 291.03, subdivisions 8, 9, 10,
and 11,
new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2016, section 290.067, subdivision 2, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) is effective retroactively for estates of decedents
dying after December 31, 2016. Paragraph (b) is effective for taxable years beginning after
December 31, 2016.
new text end

ARTICLE 2

PROPERTY TAX

Section 1.

Minnesota Statutes 2016, section 40A.18, subdivision 2, is amended to read:


Subd. 2.

Allowed commercial and industrial operations.

new text begin (a) new text end Commercial and industrial
operations are not allowed on land within an agricultural preserve except:

(1) small on-farm commercial or industrial operations normally associated with and
important to farming in the agricultural preserve area;

(2) storage use of existing farm buildings that does not disrupt the integrity of the
agricultural preserve; deleted text begin and
deleted text end

(3) small commercial use of existing farm buildings for trades not disruptive to the
integrity of the agricultural preserve such as a carpentry shop, small scale mechanics shop,
and similar activities that a farm operator might conductdeleted text begin .deleted text end new text begin ; and
new text end

new text begin (4) wireless communication installments and related equipment and structure capable
of providing technology potentially beneficial to farming activities.
new text end

new text begin (b) For purposes of paragraph (a), clauses (2) and (3), new text end "existing" deleted text begin in clauses (2) and (3)deleted text end
means existing on August 1, 1989.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

new text begin [103C.333] COUNTY LEVY AUTHORITY.
new text end

new text begin Notwithstanding any other law to the contrary, a county levying a tax under section
103C.331 shall not include any taxes levied under those authorities in the levy certified
under section 275.07, subdivision 1, paragraph (a). A county levying under section 103C.331
shall separately certify that amount, and the auditor shall extend that levy as a special taxing
district levy under sections 275.066 and 275.07, subdivision 1, paragraph (b).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for certifications made in 2017 and
thereafter.
new text end

Sec. 3.

Minnesota Statutes 2016, section 272.02, subdivision 23, is amended to read:


Subd. 23.

new text begin Secondary liquid new text end agricultural new text begin chemical new text end containment deleted text begin facilitiesdeleted text end .

new text begin Secondary
new text end containment tanks, cache basins, and deleted text begin that portion of the structure needed for the containment
facility used to confine agricultural chemicals as defined in section 18D.01, subdivision 3,
as required by the commissioner of agriculture under chapter 18B or 18C,
deleted text end new text begin berms used by
a reseller to contain agricultural chemical spills from primary storage containers and prevent
runoff or leaching of liquid agricultural chemicals as defined in section 18D.01, subdivision
3,
new text end are exempt.new text begin For purposes of this subdivision, "reseller" means a person licensed by the
commissioner of agriculture under section 18B.316 or 18C.415.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2016
provided that nothing in this section shall cause property that was classified as exempt
property for taxes payable in 2016 to lose its exempt status for taxes payable in that year.
new text end

Sec. 4.

Minnesota Statutes 2016, section 272.02, subdivision 86, is amended to read:


Subd. 86.

Apprenticeship training facilities.

All or a portion of a building used
exclusively for a state-approved apprenticeship program through the Department of Labor
and Industry is exempt if:

(1) it is owned by a nonprofit organization or a nonprofit trust, and operated by a nonprofit
organization or a nonprofit trust;

(2) the program participants receive no compensation; and

(3) it is located:

(i) in the Minneapolis and St. Paul standard metropolitan statistical area as determined
by the 2000 Previous federal Next census;

(ii) in a city outside the Minneapolis and St. Paul standard metropolitan statistical area
that has a population of 7,400 or greater according to the most recent Previous federal Next census; or

(iii) in a township that has a population greater than deleted text begin 2,000deleted text end new text begin 1,400 new text end but less than 3,000
determined by the 2000 Previous federal Next census and the building was previously used by a school
and was exempt for taxes payable in 2010.

Use of the property for advanced skills training of incumbent workers does not disqualify
the property for the exemption under this subdivision. This exemption includes up to five
acres of the land on which the building is located and associated parking areas on that land,
except that if the building meets the requirements of clause (3), item (iii), then the exemption
includes up to ten acres of land on which the building is located and associated parking
areas on that land. If a parking area associated with the facility is used for the purposes of
the facility and for other purposes, a portion of the parking area shall be exempt in proportion
to the square footage of the facility used for purposes of apprenticeship training.

Sec. 5.

Minnesota Statutes 2016, section 272.02, is amended by adding a subdivision to
read:


new text begin Subd. 100. new text end

new text begin Electric generation facility; personal property. new text end

new text begin (a) Notwithstanding
subdivision 9, clause (a), attached machinery and other personal property that is part of an
electric generation facility with more than 35 megawatts and less than 40 megawatts of
installed capacity and that meets the requirements of this subdivision is exempt from taxation
and payments in lieu of taxation. The facility must:
new text end

new text begin (1) be designed to utilize natural gas as a primary fuel;
new text end

new text begin (2) be owned and operated by a municipal power agency as defined in section 453.52,
subdivision 8;
new text end

new text begin (3) be located within 800 feet of an existing natural gas pipeline;
new text end

new text begin (4) satisfy a resource deficiency identified in an approved integrated resource plan filed
under section 216B.2422;
new text end

new text begin (5) be located outside the metropolitan area as defined under section 473.121, subdivision
2; and
new text end

new text begin (6) have received, by resolution, the approval of the governing bodies of the city and
county in which it is located for the exemption of personal property provided by this
subdivision.
new text end

new text begin (b) Construction of the facility must have been commenced after January 1, 2015, and
before January 1, 2017. Property eligible for this exemption does not include electric
transmission lines and interconnections or gas pipelines and interconnections appurtenant
to the property or the facility.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2016, section 272.0213, is amended to read:


272.0213 LEASED SEASONAL-RECREATIONAL LAND.

(a) deleted text begin A county board may elect, by resolution, todeleted text end new text begin Qualified lands, as defined in this section,
are
new text end exempt from taxation, including the tax under section 273.19deleted text begin , qualified landsdeleted text end . "Qualified
lands" for purposes of this section means deleted text begin propertydeleted text end new text begin landnew text end that:

(1) is owned by a county, city, town, or the state;new text begin and
new text end

(2) is rented by the entity for noncommercial seasonal-recreational deleted text begin ordeleted text end new text begin ,new text end noncommercial
seasonal-recreational residential usedeleted text begin ; anddeleted text end new text begin , or class 1c commercial seasonal-recreational
residential use.
new text end

deleted text begin (3) was rented for the purposes specified in clause (2) and was exempt from taxation
for property taxes payable in 2008.
deleted text end

(b) Lands owned by the Previous federal Next government and rented for noncommercial
seasonal-recreational deleted text begin ordeleted text end new text begin ,new text end noncommercial seasonal-recreational residentialnew text begin , or class 1c
commercial seasonal-recreational residential
new text end use are exempt from taxation, including the
tax under section 273.19.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2018.
new text end

Sec. 7.

Minnesota Statutes 2016, section 272.029, subdivision 2, is amended to read:


Subd. 2.

Definitions.

(a) For the purposes of this section, the term:

(1) "wind energy conversion system" has the meaning given in section 216C.06,
subdivision 19
, and also includes a substation that is used and owned by one or more wind
energy conversion facilities;

(2) "large scale wind energy conversion system" means a wind energy conversion system
of more than 12 megawatts, as measured by the nameplate capacity of the system or as
combined with other systems as provided in paragraph (b);

(3) "medium scale wind energy conversion system" means a wind energy conversion
system of over two and not more than 12 megawatts, as measured by the nameplate capacity
of the system or as combined with other systems as provided in paragraph (b); and

(4) "small scale wind energy conversion system" means a wind energy conversion system
of two megawatts and under, as measured by the nameplate capacity of the system or as
combined with other systems as provided in paragraph (b).

(b) For systems installed and contracted for after January 1, 2002, the total size of a
wind energy conversion system under this subdivision shall be determined according to this
paragraph. Unless the systems are interconnected with different distribution systems, the
nameplate capacity of one wind energy conversion system shall be combined with the
nameplate capacity of any other wind energy conversion system that is:

(1) located within five miles of the wind energy conversion system;

(2) constructed within the same calendar year as the wind energy conversion system;
and

(3) under common ownership.

In the case of a dispute, the commissioner of commerce shall determine the total size of
the systemdeleted text begin , and shall draw all reasonable inferences in favor of combining the systemsdeleted text end .

(c) In making a determination under paragraph (b), the commissioner of commerce may
determine that two wind energy conversion systems are under common ownership when
the underlying ownership structure contains deleted text begin similardeleted text end new text begin the same new text end persons or entities, even if the
ownership shares differ between the two systems. Wind energy conversion systems are not
under common ownership solely because the same person or entity provided equity financing
for the systemsnew text begin . Wind energy conversion systems that were determined by the commissioner
of commerce to be eligible for a renewable energy production incentive under section
216C.41 are not under common ownership unless a change in the qualifying owner was
made to an owner of another wind energy conversion system subsequent to the determination
by the commissioner of commerce
new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Minnesota Statutes 2016, section 272.162, is amended to read:


272.162 RESTRICTIONS ON TRANSFERS OF SPECIFIC PARTS.

Subdivision 1.

Conditions restricting transfer.

When a deed or other instrument
conveying a parcel of land is presented to the county auditor for transfer or division under
sections 272.12, 272.16, and 272.161, the auditor shall not transfer or divide the land or its
net tax capacity in the official records and shall not certify the instrument as provided in
section 272.12, if:

(a) The land conveyed is less than a whole parcel of land as charged in the tax lists;

(b) The part conveyed appears within the area of application of municipal new text begin or countynew text end
subdivision regulations adopted and filed under new text begin section 394.35 or new text end section 462.36, subdivision
1
; and

(c) The part conveyed is part of or constitutes a subdivision as defined in section 462.352,
subdivision 12
.

Subd. 2.

Conditions allowing transfer.

new text begin (a) new text end Notwithstanding the provisions of subdivision
1, the county auditor may transfer or divide the land and its net tax capacity and may certify
the instrument if the instrument contains a certification by the clerk of the municipalitynew text begin or
designated county planning official
new text end :

deleted text begin (a)deleted text end new text begin (1)new text end that the municipality'snew text begin or county'snew text end subdivision regulations do not apply;

deleted text begin (b)deleted text end new text begin (2)new text end that the subdivision has been approved by the governing body of the municipalitynew text begin
or county
new text end ; or

deleted text begin (c)deleted text end new text begin (3)new text end that the restrictions on the division of taxes and filing and recording have been
waived by resolution of the governing body of the municipality new text begin or county new text end in the particular
case because compliance would create an unnecessary hardship and failure to comply would
not interfere with the purpose of the regulations.

new text begin (b) new text end If any of the conditions for certification by the municipalitynew text begin or countynew text end as provided
in this subdivision exist and the municipalitynew text begin or countynew text end does not certify that they exist within
24 hours after the instrument of conveyance has been presented to the clerk of the
municipalitynew text begin or designated county planning officialnew text end , the provisions of subdivision 1 do not
apply.

new text begin (c) new text end If an unexecuted instrument is presented to the municipality new text begin or county new text end and any of
the conditions for certification by the municipality new text begin or county new text end as provided in this subdivision
exist, the unexecuted instrument must be certified by the clerk of the municipalitynew text begin or the
designated county planning official
new text end .

Subd. 3.

Applicability of restrictions.

new text begin (a) new text end This section does not apply to the exceptions
set forth in section 272.12.

new text begin (b) new text end This section applies only to land within municipalities new text begin or counties new text end which choose to
be governed by its provisions. A municipality new text begin or county new text end may choose to have this section
apply to the property within its boundaries by filing a certified copy of a resolution of its
governing body making that choice with the auditor and recorder of the county in which it
is located.

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2016, section 273.124, subdivision 3a, is amended to read:


Subd. 3a.

Manufactured home park cooperative.

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

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

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

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

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

(d) "Homestead treatment" under this subdivision means the classification rate provided
for class 4c property classified under section 273.13, subdivision 25, paragraph (d), clause
(5), item (ii)deleted text begin .deleted text end new text begin , andnew text end the homestead market value exclusion under section 273.13, subdivision
35, does not apply deleted text begin and the property taxes assessed against the park shall not be included in
the determination of taxes payable for rent paid under section 290A.03
deleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with claims for taxes payable
in 2018.
new text end

Sec. 10.

Minnesota Statutes 2016, section 273.124, subdivision 14, is amended to read:


Subd. 14.

Agricultural homesteads; special provisions.

(a) Real estate of less than ten
acres that is the homestead of its owner must be classified as class 2a under section 273.13,
subdivision 23
, paragraph (a), if:

(1) the parcel on which the house is located is contiguous on at least two sides to (i)
agricultural land, (ii) land owned or administered by the United States Fish and Wildlife
Service, or (iii) land administered by the Department of Natural Resources on which in lieu
taxes are paid under sections 477A.11 to 477A.14;

(2) its owner also owns a noncontiguous parcel of agricultural land that is at least 20
acres;

(3) the noncontiguous land is located not farther than four townships or cities, or a
combination of townships or cities from the homestead; and

(4) the agricultural use value of the noncontiguous land and farm buildings is equal to
at least 50 percent of the market value of the house, garage, and one acre of land.

Homesteads initially classified as class 2a under the provisions of this paragraph shall
remain classified as class 2a, irrespective of subsequent changes in the use of adjoining
properties, as long as the homestead remains under the same ownership, the owner owns a
noncontiguous parcel of agricultural land that is at least 20 acres, and the agricultural use
value qualifies under clause (4). Homestead classification under this paragraph is limited
to property that qualified under this paragraph for the 1998 assessment.

(b)(i) Agricultural property shall be classified as the owner's homestead, to the same
extent as other agricultural homestead property, if all of the following criteria are met:

(1) the agricultural property consists of at least 40 acres including undivided government
lots and correctional 40's;

(2) the owner, the owner's spouse, or a grandchild, child, sibling, or parent of the owner
or of the owner's spouse, is actively farming the agricultural property, either on the person's
own behalf as an individual or on behalf of a partnership operating a family farm, family
farm corporation, joint family farm venture, or limited liability company of which the person
is a partner, shareholder, or member;

(3) both the owner of the agricultural property and the person who is actively farming
the agricultural property under clause (2), are Minnesota residents;

(4) neither the owner nor the spouse of the owner claims another agricultural homestead
in Minnesota; and

(5) neither the owner nor the person actively farming the agricultural property lives
farther than four townships or cities, or a combination of four townships or cities, from the
agricultural property, except that if the owner or the owner's spouse is required to live in
employer-provided housing, the owner or owner's spouse, whichever is actively farming
the agricultural property, may live more than four townships or cities, or combination of
four townships or cities from the agricultural property.

The relationship under this paragraph may be either by blood or marriage.

(ii) deleted text begin Agricultural property held by a trustee under a trust is eligible for agricultural
homestead classification under this paragraph if the qualifications in clause (i) are met,
except that "owner" means the grantor of the trust.
deleted text end

deleted text begin (iii)deleted text end Property containing the residence of an owner who owns qualified property under
clause (i) shall be classified as part of the owner's agricultural homestead, if that property
is also used for noncommercial storage or drying of agricultural crops.

deleted text begin (iv)deleted text end new text begin (iii)new text end As used in this paragraph, "agricultural property" means class 2a property and
any class 2b property that is contiguous to and under the same ownership as the class 2a
property.

(c) Noncontiguous land shall be included as part of a homestead under section 273.13,
subdivision 23
, paragraph (a), only if the homestead is classified as class 2a and the detached
land is located in the same township or city, or not farther than four townships or cities or
combination thereof from the homestead. Any taxpayer of these noncontiguous lands must
notify the county assessor that the noncontiguous land is part of the taxpayer's homestead,
and, if the homestead is located in another county, the taxpayer must also notify the assessor
of the other county.

(d) Agricultural land used for purposes of a homestead and actively farmed by a person
holding a vested remainder interest in it must be classified as a homestead under section
273.13, subdivision 23, paragraph (a). If agricultural land is classified class 2a, any other
dwellings on the land used for purposes of a homestead by persons holding vested remainder
interests who are actively engaged in farming the property, and up to one acre of the land
surrounding each homestead and reasonably necessary for the use of the dwelling as a home,
must also be assessed class 2a.

(e) Agricultural land and buildings that were class 2a homestead property under section
273.13, subdivision 23, paragraph (a), for the 1997 assessment shall remain classified as
agricultural homesteads for subsequent assessments if:

(1) the property owner abandoned the homestead dwelling located on the agricultural
homestead as a result of the April 1997 floods;

(2) the property is located in the county of Polk, Clay, Kittson, Marshall, Norman, or
Wilkin;

(3) the agricultural land and buildings remain under the same ownership for the current
assessment year as existed for the 1997 assessment year and continue to be used for
agricultural purposes;

(4) the dwelling occupied by the owner is located in Minnesota and is within 30 miles
of one of the parcels of agricultural land that is owned by the taxpayer; and

(5) the owner notifies the county assessor that the relocation was due to the 1997 floods,
and the owner furnishes the assessor any information deemed necessary by the assessor in
verifying the change in dwelling. Further notifications to the assessor are not required if the
property continues to meet all the requirements in this paragraph and any dwellings on the
agricultural land remain uninhabited.

(f) Agricultural land and buildings that were class 2a homestead property under section
273.13, subdivision 23, paragraph (a), for the 1998 assessment shall remain classified
agricultural homesteads for subsequent assessments if:

(1) the property owner abandoned the homestead dwelling located on the agricultural
homestead as a result of damage caused by a March 29, 1998, tornado;

(2) the property is located in the county of Blue Earth, Brown, Cottonwood, LeSueur,
Nicollet, Nobles, or Rice;

(3) the agricultural land and buildings remain under the same ownership for the current
assessment year as existed for the 1998 assessment year;

(4) the dwelling occupied by the owner is located in this state and is within 50 miles of
one of the parcels of agricultural land that is owned by the taxpayer; and

(5) the owner notifies the county assessor that the relocation was due to a March 29,
1998, tornado, and the owner furnishes the assessor any information deemed necessary by
the assessor in verifying the change in homestead dwelling. For taxes payable in 1999, the
owner must notify the assessor by December 1, 1998. Further notifications to the assessor
are not required if the property continues to meet all the requirements in this paragraph and
any dwellings on the agricultural land remain uninhabited.

(g) Agricultural property of a family farm corporation, joint family farm venture, family
farm limited liability company, or partnership operating a family farm as described under
subdivision 8 shall be classified homestead, to the same extent as other agricultural homestead
property, if all of the following criteria are met:

(1) the property consists of at least 40 acres including undivided government lots and
correctional 40's;

(2) a shareholder, member, or partner of that entity is actively farming the agricultural
property;

(3) that shareholder, member, or partner who is actively farming the agricultural property
is a Minnesota resident;

(4) neither that shareholder, member, or partner, nor the spouse of that shareholder,
member, or partner claims another agricultural homestead in Minnesota; and

(5) that shareholder, member, or partner does not live farther than four townships or
cities, or a combination of four townships or cities, from the agricultural property.

Homestead treatment applies under this paragraph for property leased to a family farm
corporation, joint farm venture, limited liability company, or partnership operating a family
farm if legal title to the property is in the name of an individual who is a member, shareholder,
or partner in the entity.

(h) To be eligible for the special agricultural homestead under this subdivision, an initial
full application must be submitted to the county assessor where the property is located.
Owners and the persons who are actively farming the property shall be required to complete
only a one-page abbreviated version of the application in each subsequent year provided
that none of the following items have changed since the initial application:

(1) the day-to-day operation, administration, and financial risks remain the same;

(2) the owners and the persons actively farming the property continue to live within the
four townships or city criteria and are Minnesota residents;

(3) the same operator of the agricultural property is listed with the Farm Service Agency;

(4) a Schedule F or equivalent income tax form was filed for the most recent year;

(5) the property's acreage is unchanged; and

(6) none of the property's acres have been enrolled in a Previous federal Next or state farm program
since the initial application.

The owners and any persons who are actively farming the property must include the
appropriate Social Security numbers, and sign and date the application. If any of the specified
information has changed since the full application was filed, the owner must notify the
assessor, and must complete a new application to determine if the property continues to
qualify for the special agricultural homestead. The commissioner of revenue shall prepare
a standard reapplication form for use by the assessors.

(i) Agricultural land and buildings that were class 2a homestead property under section
273.13, subdivision 23, paragraph (a), for the 2007 assessment shall remain classified
agricultural homesteads for subsequent assessments if:

(1) the property owner abandoned the homestead dwelling located on the agricultural
homestead as a result of damage caused by the August 2007 floods;

(2) the property is located in the county of Dodge, Fillmore, Houston, Olmsted, Steele,
Wabasha, or Winona;

(3) the agricultural land and buildings remain under the same ownership for the current
assessment year as existed for the 2007 assessment year;

(4) the dwelling occupied by the owner is located in this state and is within 50 miles of
one of the parcels of agricultural land that is owned by the taxpayer; and

(5) the owner notifies the county assessor that the relocation was due to the August 2007
floods, and the owner furnishes the assessor any information deemed necessary by the
assessor in verifying the change in homestead dwelling. For taxes payable in 2009, the
owner must notify the assessor by December 1, 2008. Further notifications to the assessor
are not required if the property continues to meet all the requirements in this paragraph and
any dwellings on the agricultural land remain uninhabited.

(j) Agricultural land and buildings that were class 2a homestead property under section
273.13, subdivision 23, paragraph (a), for the 2008 assessment shall remain classified as
agricultural homesteads for subsequent assessments if:

(1) the property owner abandoned the homestead dwelling located on the agricultural
homestead as a result of the March 2009 floods;

(2) the property is located in the county of Marshall;

(3) the agricultural land and buildings remain under the same ownership for the current
assessment year as existed for the 2008 assessment year and continue to be used for
agricultural purposes;

(4) the dwelling occupied by the owner is located in Minnesota and is within 50 miles
of one of the parcels of agricultural land that is owned by the taxpayer; and

(5) the owner notifies the county assessor that the relocation was due to the 2009 floods,
and the owner furnishes the assessor any information deemed necessary by the assessor in
verifying the change in dwelling. Further notifications to the assessor are not required if the
property continues to meet all the requirements in this paragraph and any dwellings on the
agricultural land remain uninhabited.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning for property taxes payable in
2018.
new text end

Sec. 11.

Minnesota Statutes 2016, section 273.124, subdivision 21, is amended to read:


Subd. 21.

Trust property; homestead.

Real or personal propertynew text begin , including agricultural
property,
new text end held by a trustee under a trust is eligible for classification as homestead property
if the property satisfies the requirements of paragraph (a), (b), (c), deleted text begin ordeleted text end (d)new text begin , or (e)new text end .

(a) The grantor or surviving spouse of the grantor of the trust occupies and uses the
property as a homestead.

(b) A relative or surviving relative of the grantor who meets the requirements of
subdivision 1, paragraph (c), in the case of residential real estate; or subdivision 1, paragraph
(d), in the case of agricultural property, occupies and uses the property as a homestead.

(c) A family farm corporation, joint farm venture, limited liability company, or partnership
operating a family farm in which the grantor or the grantor's surviving spouse is a
shareholder, member, or partner rents the property; and, either (1) a shareholder, member,
or partner of the corporation, joint farm venture, limited liability company, or partnership
occupies and uses the property as a homestead; or (2) the property is at least 40 acres,
including undivided government lots and correctional 40's, and a shareholder, member, or
partner of the tenant-entity is actively farming the property on behalf of the corporation,
joint farm venture, limited liability company, or partnership.

(d) A person who has received homestead classification for property taxes payable in
2000 on the basis of an unqualified legal right under the terms of the trust agreement to
occupy the property as that person's homestead and who continues to use the property as a
homestead; or, a person who received the homestead classification for taxes payable in 2005
under paragraph (c) who does not qualify under paragraph (c) for taxes payable in 2006 or
thereafter but who continues to qualify under paragraph (c) as it existed for taxes payable
in 2005.

new text begin (e) The qualifications under subdivision 14, paragraph (b), clause (i), are met. For
purposes of this paragraph, "owner" means the grantor of the trust or the surviving spouse
of the grantor.
new text end

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

new text begin (1) "agricultural property" means the house, garage, other farm buildings and structures,
and agricultural land;
new text end

new text begin (2) "agricultural land" has the meaning given in section 273.13, subdivision 23, except
that the phrases "owned by same person" or "under the same ownership" as used in that
subdivision mean and include contiguous tax parcels owned by:
new text end

new text begin (i) an individual and a trust of which the individual, the individual's spouse, or the
individual's deceased spouse is the grantor; or
new text end

new text begin (ii) different trusts of which the grantors of each trust are any combination of an
individual, the individual's spouse, or the individual's deceased spouse; and
new text end

deleted text begin For purposes of this subdivision,deleted text end new text begin (3)new text end "grantor" deleted text begin is defined asdeleted text end new text begin meansnew text end the person creating
or establishing a testamentary, inter Vivos, revocable or irrevocable trust by written
instrument or through the exercise of a power of appointment.

new text begin (g) Noncontiguous land is included as part of a homestead under this subdivision, only
if the homestead is classified as class 2a, as defined in section 273.13, subdivision 23, and
the detached land is located in the same township or city, or not farther than four townships
or cities or combination thereof from the homestead. Any taxpayer of these noncontiguous
lands must notify the county assessor that the noncontiguous land is part of the taxpayer's
homestead, and, if the homestead is located in another county, the taxpayer must also notify
the assessor of the other county.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning for property taxes payable in
2018.
new text end

Sec. 12.

Minnesota Statutes 2016, section 273.125, subdivision 8, is amended to read:


Subd. 8.

Manufactured homes; sectional structures.

(a) In this section, "manufactured
home" means a structure transportable in one or more sections, which is built on a permanent
chassis, and designed to be used as a dwelling with or without a permanent foundation when
connected to the required utilities, and contains the plumbing, heating, air conditioning, and
electrical systems in it. Manufactured home includes any accessory structure that is an
addition or supplement to the manufactured home and, when installed, becomes a part of
the manufactured home.

(b) Except as provided in paragraph (c), a manufactured home that meets each of the
following criteria must be valued and assessed as an improvement to real property, the
appropriate real property classification applies, and the valuation is subject to review and
the taxes payable in the manner provided for real property:

(1) the owner of the unit holds title to the land on which it is situated;

(2) the unit is affixed to the land by a permanent foundation or is installed at its location
in accordance with the Manufactured Home Building Code in sections 327.31 to 327.34,
and rules adopted under those sections, or is affixed to the land like other real property in
the taxing district; and

(3) the unit is connected to public utilities, has a well and septic tank system, or is serviced
by water and sewer facilities comparable to other real property in the taxing district.

(c) A manufactured home that meets each of the following criteria must be assessed at
the rate provided by the appropriate real property classification but must be treated as
personal property, and the valuation is subject to review and the taxes payable in the manner
provided in this section:

(1) the owner of the unit is a lessee of the land under the terms of a lease, or the unit is
located in a manufactured home park but is not the homestead of the park owner;

(2) the unit is affixed to the land by a permanent foundation or is installed at its location
in accordance with the Manufactured Home Building Code contained in sections 327.31 to
327.34, and the rules adopted under those sections, or is affixed to the land like other real
property in the taxing district; and

(3) the unit is connected to public utilities, has a well and septic tank system, or is serviced
by water and sewer facilities comparable to other real property in the taxing district.

(d) Sectional structures must be valued and assessed as an improvement to real property
if the owner of the structure holds title to the land on which it is located or is a qualifying
lessee of the land under section 273.19. In this paragraph "sectional structure" means a
building or structural unit that has been in whole or substantial part manufactured or
constructed at an off-site location to be wholly or partially assembled on site alone or with
other units and attached to a permanent foundation.

(e) The commissioner of revenue may adopt rules under the Previous Administrative Next Procedure
Act to establish additional criteria for the classification of manufactured homes and sectional
structures under this subdivision.

(f) A storage shed, deck, or similar improvement constructed on property that is leased
or rented as a site for a manufactured home, sectional structure, park trailer, or travel trailer
is taxable as provided in this section. In the case of property that is leased or rented as a site
for a travel trailer, a storage shed, deck, or similar improvement on the site that is considered
personal property under this paragraph is taxable only if its total estimated market value is
over deleted text begin $1,000deleted text end new text begin $10,000new text end . The property is taxable as personal property to the lessee of the site
if it is not owned by the owner of the site. The property is taxable as real estate if it is owned
by the owner of the site. As a condition of permitting the owner of the manufactured home,
sectional structure, park trailer, or travel trailer to construct improvements on the leased or
rented site, the owner of the site must obtain the permanent home address of the lessee or
user of the site. The site owner must provide the name and address to the assessor upon
request.

Sec. 13.

Minnesota Statutes 2016, section 273.13, subdivision 22, is amended to read:


Subd. 22.

Class 1.

(a) Except as provided in subdivision 23 and in paragraphs (b) and
(c), real estate which is residential and used for homestead purposes is class 1a. In the case
of a duplex or triplex in which one of the units is used for homestead purposes, the entire
property is deemed to be used for homestead purposes. The market value of class 1a property
must be determined based upon the value of the house, garage, and land.

The first $500,000 of market value of class 1a property has a net classification rate of
one percent of its market value; and the market value of class 1a property that exceeds
$500,000 has a classification rate of 1.25 percent of its market value.

(b) Class 1b property includes homestead real estate or homestead manufactured homes
used for the purposes of a homestead by:

(1) any person who is blind as defined in section 256D.35, or the blind person and the
blind person's spouse;

(2) any person who is permanently and totally disabled or by the disabled person and
the disabled person's spouse; or

(3) the surviving spouse of a permanently and totally disabled veteran homesteading a
property classified under this paragraph for taxes payable in 2008.

Property is classified and assessed under clause (2) only if the government agency or
income-providing source certifies, upon the request of the homestead occupant, that the
homestead occupant satisfies the disability requirements of this paragraph, and that the
property is not eligible for the valuation exclusion under subdivision 34.

Property is classified and assessed under paragraph (b) only if the commissioner of
revenue or the county assessor certifies that the homestead occupant satisfies the requirements
of this paragraph.

Permanently and totally disabled for the purpose of this subdivision means a condition
which is permanent in nature and totally incapacitates the person from working at an
occupation which brings the person an income. The first $50,000 market value of class 1b
property has a net classification rate of .45 percent of its market value. The remaining market
value of class 1b property has a classification rate using the rates for class 1a or class 2a
property, whichever is appropriate, of similar market value.

(c) Class 1c property is commercial use real and personal property that abuts public
water as defined in section 103G.005, subdivision 15, new text begin or abuts a state trail administered by
the Department of Natural Resources,
new text end and is devoted to temporary and seasonal residential
occupancy for recreational purposes but not devoted to commercial purposes for more than
250 days in the year preceding the year of assessment, and that includes a portion used as
a homestead by the owner, which includes a dwelling occupied as a homestead by a
shareholder of a corporation that owns the resort, a partner in a partnership that owns the
resort, or a member of a limited liability company that owns the resort deleted text begin even ifdeleted text end new text begin , whethernew text end the
title to the homestead is held by the corporation, partnership, or limited liability companynew text begin ,
or by a shareholder of a corporation who owns the resort, a partner in a partnership who
owns the resort, or a member of a limited liability company who owns the resort
new text end . For
purposes of this paragraph, property is devoted to a commercial purpose on a specific day
if any portion of the property, excluding the portion used exclusively as a homestead, is
used for residential occupancy and a fee is charged for residential occupancy. Class 1c
property must contain three or more rental units. A "rental unit" is defined as a cabin,
condominium, townhouse, sleeping room, or individual camping site equipped with water
and electrical hookups for recreational vehicles. Class 1c property must provide recreational
activities such as the rental of ice fishing houses, boats and motors, snowmobiles, downhill
or cross-country ski equipment; provide marina services, launch services, or guide services;
or sell bait and fishing tackle. Any unit in which the right to use the property is transferred
to an individual or entity by deeded interest, or the sale of shares or stock, no longer qualifies
for class 1c even though it may remain available for rent. A camping pad offered for rent
by a property that otherwise qualifies for class 1c is also class 1c, regardless of the term of
the rental agreement, as long as the use of the camping pad does not exceed 250 days. If
the same owner owns two separate parcels that are located in the same township, and one
of those properties is classified as a class 1c property and the other would be eligible to be
classified as a class 1c property if it was used as the homestead of the owner, both properties
will be assessed as a single class 1c property; for purposes of this sentence, properties are
deemed to be owned by the same owner if each of them is owned by a limited liability
company, and both limited liability companies have the same membership. The portion of
the property used as a homestead is class 1a property under paragraph (a). The remainder
of the property is classified as follows: the first $600,000 of market value is tier I, the next
$1,700,000 of market value is tier II, and any remaining market value is tier III. The
classification rates for class 1c are: tier I, 0.50 percent; tier II, 1.0 percent; and tier III, 1.25
percent. Owners of real and personal property devoted to temporary and seasonal residential
occupancy for recreation purposes in which all or a portion of the property was devoted to
commercial purposes for not more than 250 days in the year preceding the year of assessment
desiring classification as class 1c, must submit a declaration to the assessor designating the
cabins or units occupied for 250 days or less in the year preceding the year of assessment
by January 15 of the assessment year. Those cabins or units and a proportionate share of
the land on which they are located must be designated as class 1c as otherwise provided.
The remainder of the cabins or units and a proportionate share of the land on which they
are located must be designated as class 3a commercial. The owner of property desiring
designation as class 1c property must provide guest registers or other records demonstrating
that the units for which class 1c designation is sought were not occupied for more than 250
days in the year preceding the assessment if so requested. The portion of a property operated
as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5)
other nonresidential facility operated on a commercial basis not directly related to temporary
and seasonal residential occupancy for recreation purposes does not qualify for class 1c.

(d) Class 1d property includes structures that meet all of the following criteria:

(1) the structure is located on property that is classified as agricultural property under
section 273.13, subdivision 23;

(2) the structure is occupied exclusively by seasonal farm workers during the time when
they work on that farm, and the occupants are not charged rent for the privilege of occupying
the property, provided that use of the structure for storage of farm equipment and produce
does not disqualify the property from classification under this paragraph;

(3) the structure meets all applicable health and safety requirements for the appropriate
season; and

(4) the structure is not salable as residential property because it does not comply with
local ordinances relating to location in relation to streets or roads.

The market value of class 1d property has the same classification rates as class 1a property
under paragraph (a).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2018.
new text end

Sec. 14.

Minnesota Statutes 2016, section 273.13, subdivision 23, is amended to read:


Subd. 23.

Class 2.

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

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

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

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

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

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

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

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

"Agricultural purposes" as used in this section means the raising, cultivation, drying, or
storage of agricultural products for sale, or the storage of machinery or equipment used in
support of agricultural production by the same farm entity. For a property to be classified
as agricultural based only on the drying or storage of agricultural products, the products
being dried or stored must have been produced by the same farm entity as the entity operating
the drying or storage facility. "Agricultural purposes" also includes enrollment in the Reinvest
in Minnesota program under sections 103F.501 to 103F.535 or the Previous federal Next Conservation
Reserve Program as contained in Public Law 99-198 or a similar new text begin local, new text end statenew text begin ,new text end or Previous federal Next
conservation program if the property was classified as agricultural (i) under this subdivision
for taxes payable in 2003 because of its enrollment in a qualifying program and the land
remains enrolled or (ii) in the year prior to its enrollmentnew text begin . For purposes of this section, a
local conservation program means a program administered by a town, statutory or home
rule charter city, or county, including a watershed district, water management organization,
or soil and water conservation district, in which landowners voluntarily enroll land and
receive incentive payments in exchange for use or other restrictions placed on the land
new text end .
Agricultural classification shall not be based upon the market value of any residential
structures on the parcel or contiguous parcels under the same ownership.

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

(f) Agricultural land under this section also includes:

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

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

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

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

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

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

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

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

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

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

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

(2) deleted text begin fish breddeleted text end new text begin aquacultural productsnew text end for sale and consumptionnew text begin , as defined under section
17.47,
new text end if the deleted text begin fish breedingdeleted text end new text begin aquaculturenew text end occurs on land zoned for agricultural use;

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

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

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

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

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

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

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

(1) wholesale and retail sales;

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

(3) warehousing or storage of processed goods; and

(4) office facilities for the support of the activities enumerated in clauses (1), (2), and
(3),

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

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

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

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

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

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

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

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

(1) a legal description of the property;

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2018.
new text end

Sec. 15.

Minnesota Statutes 2016, section 273.13, subdivision 25, is amended to read:


Subd. 25.

Class 4.

(a) Class 4a is residential real estate containing four or more units
and used or held for use by the owner or by the tenants or lessees of the owner as a residence
for rental periods of 30 days or more, excluding property qualifying for class 4d. Class 4a
also includes hospitals licensed under sections 144.50 to 144.56, other than hospitals exempt
under section 272.02, and contiguous property used for hospital purposes, without regard
to whether the property has been platted or subdivided. The market value of class 4a property
has a classification rate of 1.25 percent.

(b) Class 4b includes:

(1) residential real estate containing less than four units that does not qualify as class
4bb, other than seasonal residential recreational property;

(2) manufactured homes not classified under any other provision;

(3) a dwelling, garage, and surrounding one acre of property on a nonhomestead farm
classified under subdivision 23, paragraph (b) containing two or three units; and

(4) unimproved property that is classified residential as determined under subdivision
33.

The market value of class 4b property has a classification rate of 1.25 percent.

(c) Class 4bb includesnew text begin :
new text end

new text begin (1)new text end nonhomestead residential real estate containing one unit, other than seasonal
residential recreational propertydeleted text begin , and a single family dwelling, garage,deleted text end new text begin ;
new text end

new text begin (2) single-family dwellings including garagesnew text end and new text begin the new text end surrounding one acre of property
on deleted text begin adeleted text end nonhomestead deleted text begin farmdeleted text end new text begin farmsnew text end classified under subdivision 23, paragraph (b)new text begin ; and
new text end

new text begin (3) condominium-type storage units having individual legal descriptions that are not
used for commercial purposes
new text end .

Class 4bb property has the same classification rates as class 1a property under subdivision
22.

Property that has been classified as seasonal residential recreational property at any time
during which it has been owned by the current owner or spouse of the current owner does
not qualify for class 4bb.

(d) Class 4c property includes:

(1) except as provided in subdivision 22, paragraph (c), real and personal property
devoted to commercial temporary and seasonal residential occupancy for recreation purposes,
for not more than 250 days in the year preceding the year of assessment. For purposes of
this clause, property is devoted to a commercial purpose on a specific day if any portion of
the property is used for residential occupancy, and a fee is charged for residential occupancy.
Class 4c property under this clause must contain three or more rental units. A "rental unit"
is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site
equipped with water and electrical hookups for recreational vehicles. A camping pad offered
for rent by a property that otherwise qualifies for class 4c under this clause is also class 4c
under this clause regardless of the term of the rental agreement, as long as the use of the
camping pad does not exceed 250 days. In order for a property to be classified under this
clause, either (i) the business located on the property must provide recreational activities,
at least 40 percent of the annual gross lodging receipts related to the property must be from
business conducted during 90 consecutive days, and either (A) at least 60 percent of all paid
bookings by lodging guests during the year must be for periods of at least two consecutive
nights; or (B) at least 20 percent of the annual gross receipts must be from charges for
providing recreational activities, or (ii) the business must contain 20 or fewer rental units,
and must be located in a township or a city with a population of 2,500 or less located outside
the metropolitan area, as defined under section 473.121, subdivision 2, that contains a portion
of a state trail administered by the Department of Natural Resources. For purposes of item
(i)(A), a paid booking of five or more nights shall be counted as two bookings. Class 4c
property also includes commercial use real property used exclusively for recreational
purposes in conjunction with other class 4c property classified under this clause and devoted
to temporary and seasonal residential occupancy for recreational purposes, up to a total of
two acres, provided the property is not devoted to commercial recreational use for more
than 250 days in the year preceding the year of assessment and is located within two miles
of the class 4c property with which it is used. In order for a property to qualify for
classification under this clause, the owner must submit a declaration to the assessor
designating the cabins or units occupied for 250 days or less in the year preceding the year
of assessment by January 15 of the assessment year. Those cabins or units and a proportionate
share of the land on which they are located must be designated class 4c under this clause
as otherwise provided. The remainder of the cabins or units and a proportionate share of
the land on which they are located will be designated as class 3a. The owner of property
desiring designation as class 4c property under this clause must provide guest registers or
other records demonstrating that the units for which class 4c designation is sought were not
occupied for more than 250 days in the year preceding the assessment if so requested. The
portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center
or meeting room, and (5) other nonresidential facility operated on a commercial basis not
directly related to temporary and seasonal residential occupancy for recreation purposes
does not qualify for class 4c. For the purposes of this paragraph, "recreational activities"
means renting ice fishing houses, boats and motors, snowmobiles, downhill or cross-country
ski equipment; providing marina services, launch services, or guide services; or selling bait
and fishing tackle;

(2) qualified property used as a golf course if:

(i) it is open to the public on a daily fee basis. It may charge membership fees or dues,
but a membership fee may not be required in order to use the property for golfing, and its
green fees for golfing must be comparable to green fees typically charged by municipal
courses; and

(ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d).

A structure used as a clubhouse, restaurant, or place of refreshment in conjunction with
the golf course is classified as class 3a property;

(3) real property up to a maximum of three acres of land owned and used by a nonprofit
community service oriented organization and not used for residential purposes on either a
temporary or permanent basis, provided that:

(i) the property is not used for a revenue-producing activity for more than six days in
the calendar year preceding the year of assessment; or

(ii) the organization makes annual charitable contributions and donations at least equal
to the property's previous year's property taxes and the property is allowed to be used for
public and community meetings or events for no charge, as appropriate to the size of the
facility.

For purposes of this clause:

(A) "charitable contributions and donations" has the same meaning as lawful gambling
purposes under section 349.12, subdivision 25, excluding those purposes relating to the
payment of taxes, assessments, fees, auditing costs, and utility payments;

(B) "property taxes" excludes the state general tax;

(C) a "nonprofit community service oriented organization" means any corporation,
society, association, foundation, or institution organized and operated exclusively for
charitable, religious, fraternal, civic, or educational purposes, and which is exempt from
Previous federal Next income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal
Revenue Code; and

(D) "revenue-producing activities" shall include but not be limited to property or that
portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt
liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling
alley, a retail store, gambling conducted by organizations licensed under chapter 349, an
insurance business, or office or other space leased or rented to a lessee who conducts a
for-profit enterprise on the premises.

Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The
use of the property for social events open exclusively to members and their guests for periods
of less than 24 hours, when an admission is not charged nor any revenues are received by
the organization shall not be considered a revenue-producing activity.

The organization shall maintain records of its charitable contributions and donations
and of public meetings and events held on the property and make them available upon
request any time to the assessor to ensure eligibility. An organization meeting the requirement
under item (ii) must file an application by May 1 with the assessor for eligibility for the
current year's assessment. The commissioner shall prescribe a uniform application form
and instructions;

(4) postsecondary student housing of not more than one acre of land that is owned by a
nonprofit corporation organized under chapter 317A and is used exclusively by a student
cooperative, sorority, or fraternity for on-campus housing or housing located within two
miles of the border of a college campus;

(5)(i) manufactured home parks as defined in section 327.14, subdivision 3, excluding
manufactured home parks described in section 273.124, subdivision 3a, and (ii) manufactured
home parks as defined in section 327.14, subdivision 3, that are described in section 273.124,
subdivision 3a
;

(6) real property that is actively and exclusively devoted to indoor fitness, health, social,
recreational, and related uses, is owned and operated by a not-for-profit corporation, and is
located within the metropolitan area as defined in section 473.121, subdivision 2;

(7) a leased or privately owned noncommercial aircraft storage hangar not exempt under
section 272.01, subdivision 2, and the land on which it is located, provided that:

(i) the land is on an airport owned or operated by a city, town, county, Metropolitan
Airports Commission, or group thereof; and

(ii) the land lease, or any ordinance or signed agreement restricting the use of the leased
premise, prohibits commercial activity performed at the hangar.

If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must be
filed by the new owner with the assessor of the county where the property is located within
60 days of the sale;

(8) a privately owned noncommercial aircraft storage hangar not exempt under section
272.01, subdivision 2, and the land on which it is located, provided that:

(i) the land abuts a public airport; and

(ii) the owner of the aircraft storage hangar provides the assessor with a signed agreement
restricting the use of the premises, prohibiting commercial use or activity performed at the
hangar; and

(9) residential real estate, a portion of which is used by the owner for homestead purposes,
and that is also a place of lodging, if all of the following criteria are met:

(i) rooms are provided for rent to transient guests that generally stay for periods of 14
or fewer days;

(ii) meals are provided to persons who rent rooms, the cost of which is incorporated in
the basic room rate;

(iii) meals are not provided to the general public except for special events on fewer than
seven days in the calendar year preceding the year of the assessment; and

(iv) the owner is the operator of the property.

The market value subject to the 4c classification under this clause is limited to five rental
units. Any rental units on the property in excess of five, must be valued and assessed as
class 3a. The portion of the property used for purposes of a homestead by the owner must
be classified as class 1a property under subdivision 22;

(10) real property up to a maximum of three acres and operated as a restaurant as defined
under section 157.15, subdivision 12, provided it: (i) is located on a lake as defined under
section 103G.005, subdivision 15, paragraph (a), clause (3); and (ii) is either devoted to
commercial purposes for not more than 250 consecutive days, or receives at least 60 percent
of its annual gross receipts from business conducted during four consecutive months. Gross
receipts from the sale of alcoholic beverages must be included in determining the property's
qualification under item (ii). The property's primary business must be as a restaurant and
not as a bar. Gross receipts from gift shop sales located on the premises must be excluded.
Owners of real property desiring 4c classification under this clause must submit an annual
declaration to the assessor by February 1 of the current assessment year, based on the
property's relevant information for the preceding assessment year;

(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used as
a marina, as defined in section 86A.20, subdivision 5, which is made accessible to the public
and devoted to recreational use for marina services. The marina owner must annually provide
evidence to the assessor that it provides services, including lake or river access to the public
by means of an access ramp or other facility that is either located on the property of the
marina or at a publicly owned site that abuts the property of the marina. No more than 800
feet of lakeshore may be included in this classification. Buildings used in conjunction with
a marina for marina services, including but not limited to buildings used to provide food
and beverage services, fuel, boat repairs, or the sale of bait or fishing tackle, are classified
as class 3a property; and

(12) real and personal property devoted to noncommercial temporary and seasonal
residential occupancy for recreation purposes.

Class 4c property has a classification rate of 1.5 percent of market value, except that (i)
each parcel of noncommercial seasonal residential recreational property under clause (12)
has the same classification rates as class 4bb property, (ii) manufactured home parks assessed
under clause (5), item (i), have the same classification rate as class 4b property, and the
market value of manufactured home parks assessed under clause (5), item (ii), has a
classification rate of 0.75 percent if more than 50 percent of the lots in the park are occupied
by shareholders in the cooperative corporation or association and a classification rate of
one percent if 50 percent or less of the lots are so occupied, (iii) commercial-use seasonal
residential recreational property and marina recreational land as described in clause (11),
has a classification rate of one percent for the first $500,000 of market value, and 1.25
percent for the remaining market value, (iv) the market value of property described in clause
(4) has a classification rate of one percent, (v) the market value of property described in
clauses (2), (6), and (10) has a classification rate of 1.25 percent, deleted text begin anddeleted text end (vi) that portion of
the market value of property in clause (9) qualifying for class 4c property has a classification
rate of 1.25 percentnew text begin , and (vii) property qualifying for classification under clause (3) that is
owned or operated by a congressionally chartered veterans organization has a classification
rate of one percent. The commissioner of veterans affairs must provide a list of
congressionally chartered veterans organizations to the commissioner of revenue by June
30, 2017, and by January 1, 2018, and each year thereafter
new text end .

(e) Class 4d property is qualifying low-income rental housing certified to the assessor
by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion of
the units in the building qualify as low-income rental housing units as certified under section
273.128, subdivision 3, only the proportion of qualifying units to the total number of units
in the building qualify for class 4d. The remaining portion of the building shall be classified
by the assessor based upon its use. Class 4d also includes the same proportion of land as
the qualifying low-income rental housing units are to the total units in the building. For all
properties qualifying as class 4d, the market value determined by the assessor must be based
on the normal approach to value using normal unrestricted rents.

(f) The first tier of market value of class 4d property has a classification rate of 0.75
percent. The remaining value of class 4d property has a classification rate of 0.25 percent.
For the purposes of this paragraph, the "first tier of market value of class 4d property" means
the market value of each housing unit up to the first tier limit. For the purposes of this
paragraph, all class 4d property value must be assigned to individual housing units. The
first tier limit is $100,000 for assessment year 2014. For subsequent years, the limit is
adjusted each year by the average statewide change in estimated market value of property
classified as class 4a and 4d under this section for the previous assessment year, excluding
valuation change due to new construction, rounded to the nearest $1,000, provided, however,
that the limit may never be less than $100,000. Beginning with assessment year 2015, the
commissioner of revenue must certify the limit for each assessment year by November 1
of the previous year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes assessed in 2017
and payable in 2018.
new text end

Sec. 16.

Minnesota Statutes 2016, section 273.13, subdivision 34, is amended to read:


Subd. 34.

Homestead of disabled veteran or family caregiver.

(a) All or a portion of
the market value of property owned by a veteran and serving as the veteran's homestead
under this section is excluded in determining the property's taxable market value if the
veteran has a service-connected disability of 70 percent or more as certified by the United
States Department of Veterans Affairs. To qualify for exclusion under this subdivision, the
veteran must have been honorably discharged from the United States armed forces, as
indicated by United States Government Form DD214 or other official military discharge
papers.

(b)(1) For a disability rating of 70 percent or more, $150,000 of market value is excluded,
except as provided in clause (2); and

(2) for a total (100 percent) and permanent disability, $300,000 of market value is
excluded.

(c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b), clause
(2), predeceases the veteran's spouse, and if upon the death of the veteran the spouse holds
the legal or beneficial title to the homestead and permanently resides there, the exclusion
shall carry over to the benefit of the veteran's spouse for the current taxes payable year and
for eight additional taxes payable years or until such time as the spouse remarries, or sells,
transfers, or otherwise disposes of the property, whichever comes first. Qualification under
this paragraph requires an deleted text begin annualdeleted text end application under paragraph (h)new text begin , and a spouse must notify
the assessor if there is a change in the spouse's marital status, ownership of the property, or
use of the property as a permanent residence
new text end .

(d) If the spouse of a member of any branch or unit of the United States armed forces
who dies due to a service-connected cause while serving honorably in active service, as
indicated on United States Government Form DD1300 or DD2064, holds the legal or
beneficial title to a homestead and permanently resides there, the spouse is entitled to the
benefit described in paragraph (b), clause (2), for eight taxes payable years, or until such
time as the spouse remarries or sells, transfers, or otherwise disposes of the property,
whichever comes first.

(e) If a veteran meets the disability criteria of paragraph (a) but does not own property
classified as homestead in the state of Minnesota, then the homestead of the veteran's primary
family caregiver, if any, is eligible for the exclusion that the veteran would otherwise qualify
for under paragraph (b).

(f) In the case of an agricultural homestead, only the portion of the property consisting
of the house and garage and immediately surrounding one acre of land qualifies for the
valuation exclusion under this subdivision.

(g) A property qualifying for a valuation exclusion under this subdivision is not eligible
for the market value exclusion under subdivision 35, or classification under subdivision 22,
paragraph (b).

(h) To qualify for a valuation exclusion under this subdivision a property owner must
apply to the assessor by July 1 deleted text begin of each assessment year, except that an annual reapplication
is not required once a property has been accepted for a valuation exclusion under paragraph
(a) and qualifies for the benefit described in paragraph (b), clause (2), and the property
continues to qualify until there is a change in ownership
deleted text end new text begin of the first assessment year for
which the exclusion is sought
new text end . For an application received after July 1 deleted text begin of any calendar yeardeleted text end ,
the exclusion shall become effective for the following assessment year.new text begin Except as provided
in paragraph (c), the owner of a property that has been accepted for a valuation exclusion
must notify the assessor if there is a change in ownership of the property or in the use of
the property as a homestead.
new text end

(i) A first-time application by a qualifying spouse for the market value exclusion under
paragraph (d) must be made any time within two years of the death of the service member.

(j) For purposes of this subdivision:

(1) "active service" has the meaning given in section 190.05;

(2) "own" means that the person's name is present as an owner on the property deed;

(3) "primary family caregiver" means a person who is approved by the secretary of the
United States Department of Veterans Affairs for assistance as the primary provider of
personal care services for an eligible veteran under the Program of Comprehensive Assistance
for Family Caregivers, codified as United States Code, title 38, section 1720G; and

(4) "veteran" has the meaning given the term in section 197.447.

(k)new text begin If a veteran dying after December 31, 2011, did not apply for or receive the exclusion
under paragraph (b), clause (2), before dying, the veteran's spouse is entitled to the benefit
under paragraph (b), clause (2), for eight taxes payable years or until the spouse remarries
or sells, transfers, or otherwise disposes of the property if:
new text end

new text begin (1) the spouse files a first-time application within two years of the death of the service
member or by June 1, 2019, whichever is later;
new text end

new text begin (2) upon the death of the veteran, the spouse holds the legal or beneficial title to the
homestead and permanently resides there;
new text end

new text begin (3) the veteran met the honorable discharge requirements of paragraph (a); and
new text end

new text begin (4) the United States Department of Veterans Affairs certifies that:
new text end

new text begin (i) the veteran met the total (100 percent) and permanent disability requirement under
paragraph (b), clause (2); or
new text end

new text begin (ii) the spouse has been awarded dependency and indemnity compensation.
new text end

new text begin (l)new text end The purpose of this provision of law providing a level of homestead property tax
relief for gravely disabled veterans, their primary family caregivers, and their surviving
spouses is to help ease the burdens of war for those among our state's citizens who bear
those burdens most heavily.

new text begin (m) By July 1, the county veterans service officer must certify the disability rating of
each veteran receiving the benefit under paragraph (b) to the assessor.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2018.
new text end

Sec. 17.

new text begin [274.132] PROPERTY OVERVALUED.
new text end

new text begin Subdivision 1. new text end

new text begin Valuation appeals. new text end

new text begin Notwithstanding any other law to the contrary, when
the value of a property is reduced by a local, special, or county board of appeal and
equalization, the state board of equalization, an order from the Minnesota Tax Court, or an
abatement to correct an error in valuation, a property owner may appeal the valuation of
the property for the taxes payable year immediately preceding the year for which the value
is reduced, provided that the valuation of the property for the immediately preceding taxes
payable year was not previously appealed. An appeal under this subdivision may only be
taken to the Minnesota Tax Court.
new text end

new text begin Subd. 2. new text end

new text begin Credit for overpayment of tax. new text end

new text begin (a) The county auditor shall credit any refund
determined by the Minnesota Tax Court under subdivision 1 against the succeeding year's
tax payable on the property according to the following schedule:
new text end

new text begin (1) if the refund is less than 25 percent of the total tax payable on the property for the
current year, it shall be credited to the tax payable on the property in the succeeding taxes
payable year; or
new text end

new text begin (2) if the refund is 25 percent or more of the total tax payable on the property for the
current year, beginning in the succeeding taxes payable year, it shall be credited to the tax
payable on the property at a rate of 25 percent of the property taxes due per year until
credited in full.
new text end

new text begin (b) The credit under this subdivision shall reduce the tax payable to each jurisdiction in
proportion to the total tax payable on the property.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for appeals, orders, and abatements in
2018 and thereafter.
new text end

Sec. 18.

Minnesota Statutes 2016, section 275.025, subdivision 1, is amended to read:


Subdivision 1.

Levy amount.

The state general levy is levied against
commercial-industrial property and seasonal residential recreational property, as defined
in this section. The state general levy deleted text begin base amount is $592,000,000deleted text end new text begin for commercial-industrial
property is $713,050,000
new text end for taxes payable in deleted text begin 2002deleted text end new text begin 2018 and thereafternew text end . deleted text begin For taxes payable
in subsequent years, the levy base amount is increased each year by multiplying the levy
base amount for the prior year by the sum of one plus the rate of increase, if any, in the
implicit price deflator for government consumption expenditures and gross investment for
state and local governments prepared by the Bureau of Economic Analysts of the United
States Department of Commerce for the 12-month period ending March 31 of the year prior
to the year the taxes are payable.
deleted text end new text begin The state general levy for seasonal-recreational property
is $43,130,000 for taxes payable in 2018 and thereafter.
new text end The tax under this section is not
treated as a local tax rate under section 469.177 and is not the levy of a governmental unit
under chapters 276A and 473F.

The commissioner shall increase or decrease the preliminary or final rate for a year as
necessary to account for errors and tax base changes that affected a preliminary or final rate
for either of the two preceding years. Adjustments are allowed to the extent that the necessary
information is available to the commissioner at the time the rates for a year must be certified,
and for the following reasons:

(1) an erroneous report of taxable value by a local official;

(2) an erroneous calculation by the commissioner; and

(3) an increase or decrease in taxable value for commercial-industrial or seasonal
residential recreational property reported on the abstracts of tax lists submitted under section
275.29 that was not reported on the abstracts of assessment submitted under section 270C.89
for the same year.

The commissioner may, but need not, make adjustments if the total difference in the tax
levied for the year would be less than $100,000.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2018 and thereafter.
new text end

Sec. 19.

Minnesota Statutes 2016, section 275.025, subdivision 2, is amended to read:


Subd. 2.

Commercial-industrial tax capacity.

For the purposes of this section,
"commercial-industrial tax capacity" means the tax capacity of all taxable property classified
as class 3 or class 5(1) under section 273.13, deleted text begin except fordeleted text end new text begin excluding:
new text end

new text begin (1) the tax capacity attributable to the first $200,000 of market value of each parcel of
commercial-industrial property as defined under section 273.13, subdivision 24, clauses (1)
and (2);
new text end

new text begin (2)new text end electric generation attached machinery under class 3new text begin ;new text end and

new text begin (3)new text end property described in section 473.625.

County commercial-industrial tax capacity amounts are not adjusted for the captured
net tax capacity of a tax increment financing district under section 469.177, subdivision 2,
the net tax capacity of transmission lines deducted from a local government's total net tax
capacity under section 273.425, or fiscal disparities contribution and distribution net tax
capacities under chapter 276A or 473F.new text begin For purposes of this subdivision, the procedures
for determining eligibility for tier 1 under section 273.13, subdivision 24, clauses (1) and
(2), shall apply in determining the portion of a property eligible to be considered within the
first $200,000 of market value.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2018 and thereafter.
new text end

Sec. 20.

Minnesota Statutes 2016, section 275.025, subdivision 4, is amended to read:


Subd. 4.

Apportionment and levy of state general tax.

deleted text begin Ninety-five percent ofdeleted text end The
state general tax must be levied by applying a uniform rate to all commercial-industrial tax
capacity and deleted text begin five percent of the state general tax must be levied by applyingdeleted text end a uniform rate
to all seasonal residential recreational tax capacity. On or before October 1 each year, the
commissioner of revenue shall certify the preliminary state general levy rates to each county
auditor that must be used to prepare the notices of proposed property taxes for taxes payable
in the following year. By January 1 of each year, the commissioner shall certify the final
state general levy deleted text begin ratedeleted text end new text begin ratesnew text end to each county auditor that shall be used in spreading taxes.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2018 and thereafter.
new text end

Sec. 21.

Minnesota Statutes 2016, section 275.025, is amended by adding a subdivision
to read:


new text begin Subd. 5. new text end

new text begin Underserved municipalities distribution. new text end

new text begin (a) Any municipality that:
new text end

new text begin (1) lies wholly or partially within the metropolitan area as defined under section 473.121,
subdivision 2, but outside the transit taxing district as defined under section 473.446,
subdivision 2; and
new text end

new text begin (2) has a net fiscal disparities contribution equal to or greater than eight percent of its
total taxable net tax capacity,
new text end

new text begin is eligible for a distribution from the proceeds of the state general levy imposed on taxpayers
within the municipality.
new text end

new text begin (b) The distribution is equal to (1) the municipality's net tax capacity tax rate, times (2)
the municipality's net fiscal disparities contribution in excess of eight percent of its total
taxable net tax capacity; provided, however, that the distribution may not exceed the tax
under this section imposed on taxpayers within the municipality.
new text end

new text begin (c) The distribution under this subdivision must be paid to the qualifying municipality
at the same time taxes are settled under sections 276.09 to 276.111.
new text end

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

new text begin (1) "Municipality" means a home rule or statutory city, or a town, except that in the case
of a city that lies only partially within the metropolitan area, municipality means the portion
of the city lying within the metropolitan area.
new text end

new text begin (2) "Net fiscal disparities contribution" means a municipality's fiscal disparities
contribution tax capacity minus its distribution net tax capacity.
new text end

new text begin (3) "Total taxable net tax capacity" means the total net tax capacity of all properties in
the municipality under section 273.13 minus (i) the net fiscal disparities contribution, and
(ii) the municipality's tax increment captured net tax capacity.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2018 and thereafter.
new text end

Sec. 22.

Minnesota Statutes 2016, section 275.066, is amended to read:


275.066 SPECIAL TAXING DISTRICTS; DEFINITION.

For the purposes of property taxation and property tax state aids, the term "special taxing
districts" includes the following entities:

(1) watershed districts under chapter 103D;

(2) sanitary districts under sections 442A.01 to 442A.29;

(3) regional sanitary sewer districts under sections 115.61 to 115.67;

(4) regional public library districts under section 134.201;

(5) park districts under chapter 398;

(6) regional railroad authorities under chapter 398A;

(7) hospital districts under sections 447.31 to 447.38;

(8) St. Cloud Metropolitan Transit Commission under sections 458A.01 to 458A.15;

(9) Duluth Transit Authority under sections 458A.21 to 458A.37;

(10) regional development commissions under sections 462.381 to 462.398;

(11) housing and redevelopment authorities under sections 469.001 to 469.047;

(12) port authorities under sections 469.048 to 469.068;

(13) economic development authorities under sections 469.090 to 469.1081;

(14) Metropolitan Council under sections 473.123 to 473.549;

(15) Metropolitan Airports Commission under sections 473.601 to 473.679;

(16) Metropolitan Mosquito Control Commission under sections 473.701 to 473.716;

(17) Morrison County Rural Development Financing Authority under Laws 1982, chapter
437, section 1;

(18) Croft Historical Park District under Laws 1984, chapter 502, article 13, section 6;

(19) East Lake County Medical Clinic District under Laws 1989, chapter 211, sections
1 to 6;

(20) Floodwood Area Ambulance District under Laws 1993, chapter 375, article 5,
section 39;

(21) Middle Mississippi River Watershed Management Organization under sections
103B.211 and 103B.241;

(22) emergency medical services special taxing districts under section 144F.01;

(23) a county levying under the authority of section 103B.241, 103B.245, deleted text begin ordeleted text end 103B.251new text begin ,
or 103C.331
new text end
;

(24) Southern St. Louis County Special Taxing District; Chris Jensen Nursing Home
under Laws 2003, First Special Session chapter 21, article 4, section 12;

(25) an airport authority created under section 360.0426; and

(26) any other political subdivision of the state of Minnesota, excluding counties, school
districts, cities, and towns, that has the power to adopt and certify a property tax levy to the
county auditor, as determined by the commissioner of revenue.

Sec. 23.

Minnesota Statutes 2016, section 276.017, subdivision 3, is amended to read:


Subd. 3.

deleted text begin United States Postal Service postmarkdeleted text end new text begin Proof of timely paymentnew text end .

The
postmarknew text begin or registration marknew text end of the United States Postal Service qualifies as proof of timely
mailing deleted text begin for this sectiondeleted text end . deleted text begin If the payment is sent by United States registered mail, the date of
registration is the postmark date. If the payment is sent by United States certified mail, the
date of the United States Postal Service postmark on the receipt given to the person presenting
the payment for delivery is the date of mailing.
deleted text end Mailing, or the time of mailing, may also
be established by new text begin a delivery service's records or new text end other available evidence deleted text begin except thatdeleted text end new text begin .new text end The
postmark of a private postage meter new text begin or internet stamp new text end may not be used as proof of a timely
mailing made under this section.

Sec. 24.

Minnesota Statutes 2016, section 279.01, subdivision 1, is amended to read:


Subdivision 1.

Due dates; penalties.

deleted text begin Except as provided in subdivisions 3 to 5, on May
16 or 21 days after the postmark date on the envelope containing the property tax statement,
whichever is later, a penalty accrues and thereafter is charged upon all unpaid taxes on real
estate on the current lists in the hands of the county treasurer. The
deleted text end new text begin (a) When the taxes against
any tract or lot exceed $100, one-half of the amount of tax due must be paid prior to May
16, and the remaining one-half must be paid prior to the following October 16. If either tax
amount is unpaid as of its due date, a
new text end penalty is new text begin imposed new text end at a rate of two percent on homestead
property deleted text begin until May 31deleted text end and fournew text begin percent on nonhomestead property. If complete payment
has not been made by the first day of the month following either due date, an additional
penalty of two
new text end percent on deleted text begin June 1. The penalty on nonhomestead property is at a rate of four
percent until May 31
deleted text end new text begin homestead property new text end and deleted text begin eightdeleted text end new text begin fournew text end percent on deleted text begin June 1. This penalty
does not accrue until June 1 of each year, or 21 days after the postmark date on the envelope
containing the property tax statements, whichever is later, on commercial use real property
used for seasonal residential recreational purposes and classified as class 1c or 4c, and on
other commercial use real property classified as class 3a, provided that over 60 percent of
the gross income earned by the enterprise on the class 3a property is earned during the
months of May, June, July, and August. In order for the first half of the tax due on class 3a
property to be paid after May 15 and before June 1, or 21 days after the postmark date on
the envelope containing the property tax statement, whichever is later, without penalty, the
owner of the property must attach an affidavit to the payment attesting to compliance with
the income provision of this subdivision
deleted text end new text begin nonhomestead property is imposednew text end . Thereafter,
for both homestead and nonhomestead property, on the first day of each new text begin subsequent new text end month
deleted text begin beginning July 1, up to and including October 1 followingdeleted text end new text begin through Decembernew text end , an additional
penalty of one percent for each month accrues and is charged on all such unpaid taxes
provided that deleted text begin if the due date was extended beyond May 15 as the result of any delay in
mailing property tax statements no additional penalty shall accrue if the tax is paid by the
extended due date. If the tax is not paid by the extended due date, then all penalties that
would have accrued if the due date had been May 15 shall be charged. When the taxes
against any tract or lot exceed $100, one-half thereof may be paid prior to May 16 or 21
days after the postmark date on the envelope containing the property tax statement, whichever
is later; and, if so paid, no penalty attaches; the remaining one-half may be paid at any time
prior to October 16 following, without penalty; but, if not so paid, then a penalty of two
percent accrues thereon for homestead property and a penalty of four percent on
nonhomestead property. Thereafter, for homestead property, on the first day of November
an additional penalty of four percent accrues and on the first day of December following,
an additional penalty of two percent accrues and is charged on all such unpaid taxes.
Thereafter, for nonhomestead property, on the first day of November and December
following, an additional penalty of four percent for each month accrues and is charged on
all such unpaid taxes. If one-half of such taxes are not paid prior to May 16 or 21 days after
the postmark date on the envelope containing the property tax statement, whichever is later,
the same may be paid at any time prior to October 16, with accrued penalties to the date of
payment added, and thereupon no penalty attaches to the remaining one-half until October
16 following
deleted text end new text begin the penalty must not exceed eight percent in the case of homestead property,
or 12 percent in the case of nonhomestead property
new text end .

new text begin (b) If the property tax statement was not postmarked prior to April 25, the first half
payment due date in paragraph (a) shall be 21 days from the postmark date of the property
tax statement, and all penalties referenced in paragraph (a) shall be determined with regard
to the later due date.
new text end

new text begin (c) In the case of a tract or lot with taxes of $100 or less, the due date and penalties as
specified in paragraph (a) or (b) for the first half payment shall apply to the entire amount
of the tax due.
new text end

new text begin (d) For commercial use real property used for seasonal residential recreational purposes
and classified as class 1c or 4c, and on other commercial use real property classified as class
3a, provided that over 60 percent of the gross income earned by the enterprise on the class
3a property is earned during the months of May, June, July, and August, the first half
payment is due prior to June 1. For a class 3a property to qualify for the later due date, the
owner of the property must attach an affidavit to the payment attesting to compliance with
the income requirements of this paragraph.
new text end

new text begin (e) new text end This section applies to payment of personal property taxes assessed against
improvements to leased property, except as provided by section 277.01, subdivision 3.

new text begin (f) new text end A county may provide by resolution that in the case of a property owner that has
multiple tracts or parcels with aggregate taxes exceeding $100, payments may be made in
installments as provided in this subdivision.

new text begin (g) new text end The county treasurer may accept payments of more or less than the exact amount of
a tax installment due. Payments must be applied first to the oldest installment that is due
but which has not been fully paid. If the accepted payment is less than the amount due,
payments must be applied first to the penalty accrued for the year or the installment being
paid. Acceptance of partial payment of tax does not constitute a waiver of the minimum
payment required as a condition for filing an appeal under section 278.03 or any other law,
nor does it affect the order of payment of delinquent taxes under section 280.39.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2018.
new text end

Sec. 25.

Minnesota Statutes 2016, section 279.01, subdivision 2, is amended to read:


Subd. 2.

Abatement of penalty.

new text begin (a) new text end The county board may, with the concurrence of the
county treasurer, delegate to the county treasurer the power to abate the penalty provided
for late payment of taxes in the current year. Notwithstanding section 270C.86, if any county
board so elects, the county treasurer may abate the penalty on finding that the imposition
of the penalty would be unjust and unreasonable.

new text begin (b) The county treasurer shall abate the penalty provided for late payment of taxes in
the current year if the property tax payment is delivered by mail to the county treasurer and
the envelope containing the payment is postmarked by the United States Postal Service
within one business day of the due date prescribed under this section, but only if the property
owner requesting the abatement has not previously received an abatement of penalty for
late payment of tax under this paragraph.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property taxes payable in 2018 and
thereafter.
new text end

Sec. 26.

Minnesota Statutes 2016, section 279.01, subdivision 3, is amended to read:


Subd. 3.

Agricultural property.

deleted text begin (a)deleted text end In the case of class 1b agricultural homestead, class
2a agricultural homestead property, deleted text begin anddeleted text end class 2a agricultural nonhomestead property, new text begin and
class 2b rural vacant land,
new text end no penalties shall attach to the second one-half property tax
payment as provided in this section if paid by November 15. Thereafter deleted text begin for class 1b
agricultural homestead and class 2a homestead property, on November 16 following, a
penalty of six percent shall accrue and be charged on all such unpaid taxes and on December
1 following, an additional two percent shall be charged on all such unpaid taxes. Thereafter
for class 2a agricultural nonhomestead property, on November 16 following, a penalty of
eight percent shall accrue and be charged on all such unpaid taxes and on December 1
following, an additional four percent shall be charged on all such unpaid taxes
deleted text end new text begin , penalties
shall attach as provided in subdivision 1
new text end .

If the owner of class 1b agricultural homestead or class 2a agricultural property receives
a consolidated property tax statement that shows only an aggregate of the taxes and special
assessments due on that property and on other property not classified as class 1b agricultural
homestead or class 2a agricultural property, the aggregate tax and special assessments shown
due on the property by the consolidated statement will be due on November 15.

deleted text begin (b) Notwithstanding paragraph (a), for taxes payable in 2010 and 2011, for any class 2b
property that was subject to a second-half due date of November 15 for taxes payable in
2009, the county shall not impose, or if imposed, shall abate penalty amounts in excess of
those that would apply as if the second-half due date were November 15.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin (a) Except as provided in paragraph (b), this section is effective
beginning with taxes payable in 2018.
new text end

new text begin (b) For property in the northern forest region, the provisions in this section applicable
to class 2b rural vacant land are effective beginning with taxes payable in 2019.
new text end

Sec. 27.

Minnesota Statutes 2016, section 279.37, is amended by adding a subdivision to
read:


new text begin Subd. 1b. new text end

new text begin Conditions. new text end

new text begin The county auditor may offer on a voluntary basis financial
literacy counseling as part of entering into a confession of judgment. The county auditor
may fund the financial literacy counseling using the fee in subdivision 8. The counseling
shall not be at taxpayer expense.
new text end

Sec. 28.

Minnesota Statutes 2016, section 281.17, is amended to read:


281.17 PERIOD deleted text begin FORdeleted text end new text begin OF new text end REDEMPTION.

new text begin (a) new text end Except for propertiesnew text begin described in paragraphs (b) and (c), or propertiesnew text end for which the
period of redemption has been limited under sections 281.173 and 281.174, the deleted text begin following
periods for
deleted text end new text begin period of new text end redemption deleted text begin apply.
deleted text end

deleted text begin The period of redemptiondeleted text end for deleted text begin alldeleted text end lands sold to the state at a tax judgment sale shall be
three years from the date of sale to the state of Minnesota.

deleted text begin The period of redemption for homesteaded lands as defined in section 273.13, subdivision
22
, located in a targeted neighborhood as defined in Laws 1987, chapter 386, article 6,
section 4, and sold to the state at a tax judgment sale is three years from the date of sale.
deleted text end

new text begin (b) new text end The period of redemption for all lands located in a targeted deleted text begin neighborhooddeleted text end new text begin communitynew text end
as defined in deleted text begin Laws 1987, chapter 386, article 6, section 4deleted text end new text begin section 469.201, subdivision 10new text end ,
except homesteaded lands as defined in section 273.13, subdivision 22, is one year from
the date of sale.

new text begin (c) new text end The period of redemption for all real property constituting a mixed municipal solid
waste disposal facility that is a qualified facility under section 115B.39, subdivision 1, is
one year from the date of the sale to the state of Minnesota.

new text begin (d) In determining the period of redemption, the county must use the property's
classification and homestead classification for the assessment year on which the tax judgment
is based. Any change in the property's classification or homestead classification after the
assessment year on which the tax judgment is based does not affect the period of redemption.
new text end

Sec. 29.

Minnesota Statutes 2016, section 281.173, subdivision 2, is amended to read:


Subd. 2.

Summons and complaint.

Any city,new text begin county,new text end housing and redevelopment
authority, port authority, or economic development authority, in which the premises are
located may commence an action in district court to reduce the period otherwise allowed
for redemption under this chapter. The action must be commenced by the filing of a
complaint, naming as defendants the record fee owners or the owner's personal representative,
or the owner's heirs as determined by a court of competent jurisdiction, contract for deed
purchasers, mortgagees, assigns of any of the above, the taxpayers as shown on the records
of the county auditor, the Internal Revenue Service of the United States and the Revenue
Department of the state of Minnesota if tax liens against the owners or contract for deed
purchasers have been recorded or filed; and any other person the plaintiff determines should
be made a party. The action shall be filed in district court for the county in which the premises
are located. The complaint must identify the premises by legal description. The complaint
must allege (1) that the premises are abandoned, (2) that the tax judgment sale pursuant to
section 280.01 has been made, and (3) notice of expiration of the time for redemption has
not been given.

The complaint must request an order reducing the redemption period to five weeks.
When the complaint has been filed, the court shall issue a summons commanding the person
or persons named in the complaint to appear before the court on a day and at a place stated
in the summons. The appearance date shall be not less than 15 nor more than 25 days from
the date of the issuing of the summons. A copy of the filed complaint must be attached to
the summons.

Sec. 30.

Minnesota Statutes 2016, section 281.174, subdivision 3, is amended to read:


Subd. 3.

Summons and complaint.

Any city,new text begin county,new text end housing and redevelopment
authority, port authority, or economic development authority in which the property is located
may commence an action in district court to reduce the period otherwise allowed for
redemption under this chapter from the date of the requested order. The action must be
commenced by the filing of a complaint, naming as defendants the record fee owners or the
owner's personal representative, or the owner's heirs as determined by a court of competent
jurisdiction, contract for deed purchasers, mortgagees, assigns of any of the above, the
taxpayers as shown on the records of the county auditor, the Internal Revenue Service of
the United States and the revenue department of the state of Minnesota if tax liens against
the owners or contract for deed purchasers have been recorded or filed, and any other person
the plaintiff determines should be made a party. The action shall be filed in district court
for the county in which the property is located. The complaint must identify the property
by legal description. The complaint must allege (1) that the property is vacant, (2) that the
tax judgment sale under section 280.01 has been made, and (3) notice of expiration of the
time for redemption has not been given.

The complaint must request an order reducing the redemption period to five weeks.
When the complaint has been filed, the court shall issue a summons commanding the person
or persons named in the complaint to appear before the court on a day and at a place stated
in the summons. The appearance date shall be not less than 15 nor more than 25 days from
the date of the issuing of the summons, except that, when the United States of America is
a party, the date shall be set in accordance with applicable Previous federal Next law. A copy of the filed
complaint must be attached to the summons.

Sec. 31.

new text begin [281.231] MAINTENANCE; EXPENDITURE OF PUBLIC FUNDS.
new text end

new text begin If the county auditor provides notice as required by section 281.23, the state, agency,
political subdivision, or other entity that becomes the fee owner or manager of a property
as a result of forfeiture due to nonpayment of real property taxes is not required to expend
public funds to maintain any servitude, agreement, easement, or other encumbrance affecting
the property. The fee owner or manager of a property may, at its discretion, spend public
funds necessary for the maintenance, security, or management of the property.
new text end

Sec. 32.

new text begin [281.70] LIMITED RIGHT OF ENTRY.
new text end

new text begin Subdivision 1. new text end

new text begin Limited right of entry. new text end

new text begin If premises described in a real estate tax judgment
sale are vacant or unoccupied, the county auditor or a person acting on behalf of the county
auditor may, but is not obligated to, enter the premises to protect the premises from waste
or trespass until the county auditor is notified that the premises are occupied. An affidavit
of the sheriff, the county auditor, or a person acting on behalf of the county auditor describing
the premises and stating that the premises are vacant and unoccupied is prima facie evidence
of the facts stated in the affidavit. If the affidavit contains a legal description of the premises,
the affidavit may be recorded in the office of the county recorder or the registrar of titles in
the county where the premises are located.
new text end

new text begin Subd. 2. new text end

new text begin Authorized actions. new text end

new text begin (a) The county auditor may take one or more of the
following actions to protect the premises from waste or trespass:
new text end

new text begin (1) install or change locks on doors and windows;
new text end

new text begin (2) board windows; and
new text end

new text begin (3) other actions to prevent or minimize damage to the premises from the elements,
vandalism, trespass, or other illegal activities.
new text end

new text begin (b) If the county auditor installs or changes locks on premises under paragraph (a), the
county auditor must promptly deliver a key to the premises to the taxpayer or any person
lawfully claiming through the taxpayer upon request.
new text end

new text begin Subd. 3. new text end

new text begin Costs. new text end

new text begin Costs incurred by the county auditor in protecting the premises from
waste or trespass under this section may be added to the delinquent taxes due. The costs
may bear interest to the extent provided, and interest may be added to the delinquent taxes
due.
new text end

new text begin Subd. 4. new text end

new text begin Scope. new text end

new text begin The actions authorized under this section are in addition to, and do not
limit or replace, any other rights or remedies available to the county auditor under Minnesota
law.
new text end

Sec. 33.

Minnesota Statutes 2016, section 282.01, subdivision 4, is amended to read:


Subd. 4.

Saledeleted text begin :deleted text end new text begin ;new text end methoddeleted text begin ,deleted text end new text begin ;new text end requirementsdeleted text begin ,deleted text end new text begin ;new text end effects.

new text begin (a) new text end The sale authorized under
subdivision 3 must be conducted by the county auditor at the county seat of the county in
which the parcels lie, except that in St. Louis and Koochiching Counties, the sale may be
conducted in any county facility within the county. The sale must not be for less than the
appraised value except as provided in subdivision 7a. The parcels must be sold for cash
only, unless the county board of the county has adopted a resolution providing for their sale
on terms, in which event the resolution controls with respect to the sale. When the sale is
made on terms other than for cash only (1) a payment of at least ten percent of the purchase
price must be made at the time of purchase, and the balance must be paid in no more than
ten equal annual installments, or (2) the payments must be made in accordance with county
board policy, but in no event may the board require more than 12 installments annually,
and the contract term must not be for more than ten years. Standing timber or timber products
must not be removed from these lands until an amount equal to the appraised value of all
standing timber or timber products on the lands at the time of purchase has been paid by
the purchaser. If a parcel of land bearing standing timber or timber products is sold at public
auction for more than the appraised value, the amount bid in excess of the appraised value
must be allocated between the land and the timber in proportion to their respective appraised
values. In that case, standing timber or timber products must not be removed from the land
until the amount of the excess bid allocated to timber or timber products has been paid in
addition to the appraised value of the land. The purchaser is entitled to immediate possession,
subject to the provisions of any existing valid lease made in behalf of the state.

new text begin (b) new text end For sales occurring on or after July 1, 1982, the unpaid balance of the purchase price
is subject to interest at the rate determined pursuant to section 549.09. The unpaid balance
of the purchase price for sales occurring after December 31, 1990, is subject to interest at
the rate determined in section 279.03, subdivision 1a. The interest rate is subject to change
each year on the unpaid balance in the manner provided for rate changes in section 549.09
or 279.03, subdivision 1a, whichever, is applicable. Interest on the unpaid contract balance
on sales occurring before July 1, 1982, is payable at the rate applicable to the sale at the
time that the sale occurred.

new text begin (c) Notwithstanding subdivision 7, a county board may by resolution provide for the
listing and sale of individual parcels by other means, including through a real estate broker.
However, if the buyer under this paragraph could have repurchased a parcel of property
under section 282.012 or 282.241, that buyer may not purchase that same parcel of property
at the sale under this subdivision for a purchase price less than the sum of all taxes,
assessments, penalties, interest, and costs due at the time of forfeiture computed under
section 282.251, and any special assessments for improvements certified as of the date of
sale. This subdivision shall be liberally construed to encourage the sale and utilization of
tax-forfeited land in order to eliminate nuisances and dangerous conditions and to increase
compliance with land use ordinances.
new text end

Sec. 34.

Minnesota Statutes 2016, section 282.01, subdivision 6, is amended to read:


Subd. 6.

Duties of commissioner after sale.

new text begin (a) new text end When any sale has been made by the
county auditor under sections 282.01 to 282.13, the auditor shall immediately certify to the
commissioner of revenue such information relating to such sale, on such forms as the
commissioner of revenue may prescribe as will enable the commissioner of revenue to
prepare an appropriate deed if the sale is for cash, or keep necessary records if the sale is
on terms; and not later than October 31 of each year the county auditor shall submit to the
commissioner of revenue a statement of all instances wherein any payment of principal,
interest, or current taxes on lands held under certificate, due or to be paid during the preceding
calendar years, are still outstanding at the time such certificate is made. When such statement
shows that a purchaser or the purchaser's assignee is in default, the commissioner of revenue
may instruct the county board of the county in which the land is located to cancel said
certificate of sale in the manner provided by subdivision 5, provided that upon
recommendation of the county board, and where the circumstances are such that the
commissioner of revenue after investigation is satisfied that the purchaser has made every
effort reasonable to make payment of both the annual installment and said taxes, and that
there has been no willful neglect on the part of the purchaser in meeting these obligations,
then the commissioner of revenue may extend the time for the payment for such period as
the commissioner may deem warranted, not to exceed one year. On payment in full of the
purchase price, appropriate conveyance in fee, in such form as may be prescribed by the
attorney general, shall be issued by the commissioner of revenue, which conveyance must
be recorded by the county and shall have the force and effect of a patent from the state
subject to easements and restrictions of record at the date of the tax judgment sale, including,
but without limitation, permits for telephone and electric power lines either by underground
cable or conduit or otherwise, sewer and water lines, highways, railroads, and pipe lines for
gas, liquids, or solids in suspension.

new text begin (b) The commissioner of revenue shall issue an appropriate conveyance in fee upon the
receipt of a loan commitment or approval from the county auditor. For purposes of this
paragraph, "loan commitment" or "loan approval" means a written commitment or approval
to make a mortgage loan from a lender approved to make mortgage loans in Minnesota.
The conveyance shall be issued to the county auditor where the land is located. Upon receipt
of the conveyance, the county auditor shall hold the conveyance until such time as the
conveyance is requested from a title company licensed to do business in Minnesota. If a
request for the conveyance is not made within 45 days of the date the conveyance is issued
by the commissioner of revenue, the county auditor shall return the conveyance to the
commissioner. The title company making the request for the conveyance shall certify to the
county auditor that the conveyance is necessary to close the purchase of the subject property
within five days of the request. If the conveyance is delivered to the title company and the
closing does not occur within five days of the request, the title company shall immediately
return the conveyance to the county auditor, and upon receipt, the county auditor shall return
the deed to the commissioner of revenue. The commissioner of revenue shall destroy all
deeds returned by the county auditor pursuant to this subdivision.
new text end

Sec. 35.

Minnesota Statutes 2016, section 282.01, is amended by adding a subdivision to
read:


new text begin Subd. 13. new text end

new text begin Online auction. new text end

new text begin A county board, or a county auditor if the auditor has been
delegated such authority under section 282.135, may sell tax-forfeited lands through an
online auction. When an online auction is used to sell tax-forfeited lands, the county auditor
shall post a physical notice of the online auction and shall publish a notice of the online
auction on its Web site not less than ten days before the online auction begins, in addition
to any other notice required.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales of tax-forfeited property that
occur on or after August 1, 2017.
new text end

Sec. 36.

Minnesota Statutes 2016, section 282.016, is amended to read:


282.016 PROHIBITED PURCHASERS.

(a) A county auditor, county treasurer, county attorney, court administrator of the district
court, county assessor, supervisor of assessments, deputy or clerk or an employee of such
officer, a commissioner for tax-forfeited lands or an assistant to such commissioner, must
not become a purchaser, either personally or as an agent or attorney for another person, of
the properties offered for sale under the provisions of this chapter in the county for which
the person performs duties. deleted text begin A person prohibited from purchasing property under this section
must not directly or indirectly have another person purchase it on behalf of the prohibited
purchaser for the prohibited purchaser's benefit or gain.
deleted text end

(b) Notwithstanding paragraph (a), such officer, deputy, clerk, or employee or
commissioner for tax-forfeited lands or assistant to such commissioner may (1) purchase
lands owned by that official at the time the state became the absolute owner thereof or (2)
bid upon and purchase forfeited property offered for sale under the alternate sale procedure
described in section 282.01, subdivision 7a.

new text begin (c) In addition to the persons identified in paragraph (a), a county auditor may prohibit
other persons and entities from becoming a purchaser, either personally or as an agent or
attorney for another person or entity, of the properties offered for sale under this chapter in
the following circumstances: (1) the person or entity owns another property within the
county for which there are delinquent taxes owing; (2) the person or entity has held a rental
license in the county and the license has been revoked within the last five years; (3) the
person or entity has been the vendee of a contract for purchase of a property offered for sale
under this chapter, which contract has been canceled within the last five years; or (4) the
person or entity owns another property within the county for which there is an unresolved
housing code violation, including an unpaid charge or fine.
new text end

new text begin (d) A person prohibited from purchasing property under this section must not directly
or indirectly have another person purchase it on behalf of the prohibited purchaser for the
prohibited purchaser's benefit or gain.
new text end

Sec. 37.

Minnesota Statutes 2016, section 282.018, subdivision 1, is amended to read:


Subdivision 1.

Land on or adjacent to public waters.

(a) All land which is the property
of the state as a result of forfeiture to the state for nonpayment of taxes, regardless of whether
the land is held in trust for taxing districts, and which borders on or is adjacent to meandered
lakes and other public waters and watercourses, and the live timber growing or being thereon,
is hereby withdrawn from sale except as hereinafter provided. The authority having
jurisdiction over the timber on any such lands may sell the timber as otherwise provided by
law for cutting and removal under such conditions as the authority may prescribe in
accordance with approved, sustained yield forestry practices. The authority having jurisdiction
over the timber shall reserve such timber and impose such conditions as the authority deems
necessary for the protection of watersheds, wildlife habitat, shorelines, and scenic features.
Within the area in Cook, Lake, and St. Louis counties described in the Act of Congress
approved July 10, 1930 (46 Stat. 1020), the timber on tax-forfeited lands shall be subject
to like restrictions as are now imposed by that act on Previous federal Next lands.

(b) Of all tax-forfeited land bordering on or adjacent to meandered lakes and other public
waters and watercourses and so withdrawn from sale, a strip two rods in width, the ordinary
high-water mark being the waterside boundary thereof, and the land side boundary thereof
being a line drawn parallel to the ordinary high-water mark and two rods distant landward
therefrom, hereby is reserved for public travel thereon, and whatever the conformation of
the shore line or conditions require, the authority having jurisdiction over such lands shall
reserve a wider strip for such purposes.

(c) Any tract or parcel of land which has 150 feet or less of waterfront may be sold by
the authority having jurisdiction over the land, in the manner otherwise provided by law
for the sale of such lands, if the authority determines that it is in the public interest to do
so. If the authority having jurisdiction over the land is not the commissioner of natural
resources, the land may not be offered for sale without the prior approval of the commissioner
of natural resources.

(d) Where the authority having jurisdiction over lands withdrawn from sale under this
section is not the commissioner of natural resources, the authority may submit proposals
for disposition of the lands to the commissioner. The commissioner of natural resources
shall evaluate the lands and their public benefits and make recommendations on the proposed
dispositions to the committees of the legislature with jurisdiction over natural resources.
The commissioner shall include any recommendations of the commissioner for disposition
of lands withdrawn from sale under this section over which the commissioner has jurisdiction.
The commissioner's recommendations may include a public sale, sale to a private party,
acquisition by the Department of Natural Resources for public purposes, or a cooperative
management agreement with, or transfer to, another unit of government.

new text begin (e) Notwithstanding this subdivision, a county may sell property governed by this section
upon written authorization from the commissioner of natural resources. Prior to the sale or
conveyance of lands under this subdivision, the county board must give notice of its intent
to meet for that purpose as provided in section 282.01, subdivision 1.
new text end

Sec. 38.

Minnesota Statutes 2016, section 282.02, is amended to read:


282.02 LIST OF LANDS FOR SALE; NOTICEnew text begin ; ONLINE AUCTIONS
PERMITTED
new text end .

new text begin (a) new text end Immediately after classification and appraisal of the land, and after approval by the
commissioner of natural resources when required pursuant to section 282.01, subdivision
3
, the county board shall provide and file with the county auditor a list of parcels of land to
be offered for sale. This list shall contain a description of the parcels of land and the appraised
value thereof. The auditor shall publish a notice of the intended public sale of such parcels
of land and a copy of the resolution of the county board fixing the terms of the sale, if other
than for cash only, by publication once a week for two weeks in the official newspaper of
the county, the last publication to be not less than ten days previous to the commencement
of the sale.

new text begin (b) new text end The notice shall include the parcel's description and appraised value. The notice shall
also indicate the amount of any special assessments which may be the subject of a
reassessment or new assessment or which may result in the imposition of a fee or charge
pursuant to sections 429.071, subdivision 4, 435.23, and 444.076. The county auditor shall
also mail notice to the owners of land adjoining the parcel to be sold. For purposes of this
section, "owner" means the taxpayer as listed in the records of the county auditor.

new text begin (c) new text end If the county board deleted text begin of St. Louis or Koochiching Countiesdeleted text end determines that the sale
shall take place in a county facility other than the courthouse, the notice shall specify the
facility and its location.new text begin If the county board determines that the sale shall take place as an
online auction under section 282.01, subdivision 13, the notice shall specify the auction
Web site and the date of the auction.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales of tax-forfeited property that
occur on or after August 1, 2017.
new text end

Sec. 39.

Minnesota Statutes 2016, section 282.241, subdivision 1, is amended to read:


Subdivision 1.

Repurchase requirements.

The owner at the time of forfeiture, or the
owner's heirs, devisees, or representatives, or any person to whom the right to pay taxes
was given by statute, mortgage, or other agreement, may repurchase any parcel of land
claimed by the state to be forfeited to the state for taxes unless before the time repurchase
is made the parcel is sold under installment payments, or otherwise, by the state as provided
by law, or is under mineral prospecting permit or lease, or proceedings have been commenced
by the state or any of its political subdivisions or by the United States to condemn the parcel
of land. The parcel of land may be repurchased for the sum of all delinquent taxes and
assessments computed under section 282.251, together with penalties, interest, and costs,
that accrued or would have accrued if the parcel of land had not forfeited to the state. Except
for property which was homesteaded on the date of forfeiture, repurchase is permitted during
deleted text begin one yeardeleted text end new text begin six monthsnew text end only from the date of forfeiture, and in any case only after the adoption
of a resolution by the board of county commissioners determining that by repurchase undue
hardship or injustice resulting from the forfeiture will be corrected, or that permitting the
repurchase will promote the use of the lands that will best serve the public interest. If the
county board has good cause to believe that a repurchase installment payment plan for a
particular parcel is unnecessary and not in the public interest, the county board may require
as a condition of repurchase that the entire repurchase price be paid at the time of repurchase.
A repurchase is subject to any easement, lease, or other encumbrance granted by the state
before the repurchase, and if the land is located within a restricted area established by any
county under Laws 1939, chapter 340, the repurchase must not be permitted unless the
resolution approving the repurchase is adopted by the unanimous vote of the board of county
commissioners.

The person seeking to repurchase under this section shall pay all maintenance costs
incurred by the county auditor during the time the property was tax-forfeited.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2018.
new text end

Sec. 40.

Minnesota Statutes 2016, section 282.322, is amended to read:


282.322 FORFEITED LANDS LIST.

The county board of any county may file a list of forfeited lands with the county auditor,
if the board is of the opinion that such lands may be acquired by the state or any municipal
subdivision deleted text begin thereofdeleted text end new text begin of the statenew text end for public purposes. Upon the filing of deleted text begin suchdeleted text end new text begin thenew text end listnew text begin of
forfeited lands,
new text end the county auditor shall withhold said lands from repurchase. If no proceeding
deleted text begin shall bedeleted text end new text begin isnew text end started to acquire such lands by the state or some municipal subdivision deleted text begin thereofdeleted text end new text begin
of the state
new text end within one year after the filing of deleted text begin suchdeleted text end new text begin thenew text end listnew text begin of forfeited lands,new text end the county
board shall withdraw deleted text begin saiddeleted text end new text begin thenew text end list and thereafternew text begin , if the property was classified as
nonhomestead at the time of forfeiture,
new text end the owner shall have deleted text begin one yeardeleted text end new text begin not more than six
months
new text end in which to repurchase.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2018.
new text end

Sec. 41.

Minnesota Statutes 2016, section 290A.03, subdivision 13, is amended to read:


Subd. 13.

Property taxes payable.

"Property taxes payable" means the property tax
exclusive of special assessments, penalties, and interest payable on a claimant's homestead
after deductions made under sections 273.135, 273.1384, 273.1391, 273.42, subdivision 2,
and any other state paid property tax credits in any calendar year, and after any refund
claimed and allowable under section 290A.04, subdivision 2h, that is first payable in the
year that the property tax is payable. In the case of a claimant who makes ground lease
payments, "property taxes payable" includes the amount of the payments directly attributable
to the property taxes assessed against the parcel on which the house is located. No
apportionment or reduction of the "property taxes payable" shall be required for the use of
a portion of the claimant's homestead for a business purpose if the claimant does not deduct
any business depreciation expenses for the use of a portion of the homestead in the
determination of Previous federal Next adjusted gross income. For homesteads which are manufactured
homes as defined in section 273.125, subdivision 8, deleted text begin and for homesteads which aredeleted text end new text begin including
manufactured homes located in a manufactured home community owned by a cooperative
organized under chapter 308A or 308B, and
new text end park trailers taxed as manufactured homes
under section 168.012, subdivision 9, "property taxes payable" shall also include 17 percent
of the gross rent paid in the preceding year for the site on which the homestead is located.
When a homestead is owned by two or more persons as joint tenants or tenants in common,
such tenants shall determine between them which tenant may claim the property taxes
payable on the homestead. If they are unable to agree, the matter shall be referred to the
commissioner of revenue whose decision shall be final. Property taxes are considered payable
in the year prescribed by law for payment of the taxes.

In the case of a claim relating to "property taxes payable," the claimant must have owned
and occupied the homestead on January 2 of the year in which the tax is payable and (i) the
property must have been classified as homestead property pursuant to section 273.124, on
or before December 15 of the assessment year to which the "property taxes payable" relate;
or (ii) the claimant must provide documentation from the local assessor that application for
homestead classification has been made on or before December 15 of the year in which the
"property taxes payable" were payable and that the assessor has approved the application.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with claims for taxes payable
in 2018.
new text end

Sec. 42.

Minnesota Statutes 2016, section 473H.09, is amended to read:


473H.09 EARLY TERMINATION.

new text begin Subdivision 1. new text end

new text begin Public emergency. new text end

Termination of an agricultural preserve earlier than
a date derived through application of section 473H.08 may be permitted deleted text begin onlydeleted text end in the event
of a public emergency upon petition from the owner or authority to the governor. The
determination of a public emergency shall be by the governor through executive order
pursuant to sections 4.035 and 12.01 to 12.46. The executive order shall identify the preserve,
the reasons requiring the action and the date of termination.

new text begin Subd. 2. new text end

new text begin Death of owner. new text end

new text begin (a) Within 365 days of the death of an owner, an owner's
spouse, or other qualifying person, the surviving owner may elect to terminate the agricultural
preserve and the covenant allowing the land to be enrolled as an agricultural preserve by
notifying the authority on a form provided by the commissioner of agriculture. Termination
of a covenant under this subdivision must be executed and acknowledged in the manner
required by law to execute and acknowledge a deed.
new text end

new text begin (b) For purposes of this subdivision, the following definitions apply:
new text end

new text begin (1) "qualifying person" includes a partner, shareholder, trustee for a trust that the decedent
was the settlor or a beneficiary of, or member of an entity permitted to own agricultural
land and engage in farming under section 500.24 that owned the agricultural preserve; and
new text end

new text begin (2) "surviving owner" includes the executor of the estate of the decedent, trustee for a
trust that the decedent was the settlor or a beneficiary of, or an entity permitted to own farm
land under section 500.24 of which the decedent was a partner, shareholder, or member.
new text end

new text begin (c) When an agricultural preserve is terminated under this subdivision, the property is
subject to additional taxes in an amount equal to 50 percent of the taxes actually levied
against the property for the current taxes payable year. The additional taxes are extended
against the property on the tax list for taxes payable in the current year. The additional taxes
must be distributed among the jurisdictions levying taxes on the property in proportion to
the current year's taxes.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 43.

Minnesota Statutes 2016, section 473H.17, subdivision 1a, is amended to read:


Subd. 1a.

Allowed commercial and industrial operations.

(a) Commercial and industrial
operations are not allowed on land within an agricultural preserve except:

(1) small on-farm commercial or industrial operations normally associated with and
important to farming in the agricultural preserve area;

(2) storage use of existing farm buildings that does not disrupt the integrity of the
agricultural preserve; deleted text begin and
deleted text end

(3) small commercial use of existing farm buildings for trades not disruptive to the
integrity of the agricultural preserve such as a carpentry shop, small scale mechanics shop,
and similar activities that a farm operator might conductdeleted text begin .deleted text end new text begin ; and
new text end

new text begin (4) wireless communication installments and related equipment and structure capable
of providing technology potentially beneficial to farming activities.
new text end

(b) new text begin For purposes of paragraph (a), clauses (2) and (3), new text end "existing" deleted text begin in paragraph (a), clauses
(2) and (3),
deleted text end means existing on August 1, 1987.

new text begin EFFECTIVE DATE. new text end

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

Sec. 44.

Minnesota Statutes 2016, section 504B.285, subdivision 1, is amended to read:


Subdivision 1.

Grounds.

(a) The person entitled to the premises may recover possession
by eviction when:

(1) any person holds over real property:

(i) after a sale of the property on an execution or judgment; deleted text begin or
deleted text end

(ii) after the expiration of the time for redemption on foreclosure of a mortgage, or after
termination of contract to convey the property;new text begin or
new text end

new text begin (iii) after the expiration of the time for redemption on a real estate tax judgment sale;
new text end

(2) any person holds over real property after termination of the time for which it is
demised or leased to that person or to the persons under whom that person holds possession,
contrary to the conditions or covenants of the lease or agreement under which that person
holds, or after any rent becomes due according to the terms of such lease or agreement; or

(3) any tenant at will holds over after the termination of the tenancy by notice to quit.

(b) A landlord may not commence an eviction action against a tenant or authorized
occupant solely on the basis that the tenant or authorized occupant has been the victim of
any of the acts listed in section 504B.206, subdivision 1, paragraph (a). Nothing in this
paragraph should be construed to prohibit an eviction action based on a breach of the lease.

Sec. 45.

Minnesota Statutes 2016, section 504B.365, subdivision 3, is amended to read:


Subd. 3.

Removal and storage of property.

(a) If the defendant's personal property is
to be stored in a place other than the premises, the officer shall remove all personal property
of the defendant at the expense of the plaintiff.

(b) The defendant must make immediate payment for all expenses of removing personal
property from the premises. If the defendant fails or refuses to do so, the plaintiff has a lien
on all the personal property for the reasonable costs and expenses incurred in removing,
caring for, storing, and transporting it to a suitable storage place.

(c) The plaintiff may enforce the lien by detaining the personal property until paid. If
no payment has been made for 60 days after the execution of the order to vacate, the plaintiff
maynew text begin dispose of the property ornew text end hold a public sale as provided in sections 514.18 to 514.22.

(d) If the defendant's personal property is to be stored on the premises, the officer shall
enter the premises, breaking in if necessary, and the plaintiff may remove the defendant's
personal property. Section 504B.271 applies to personal property removed under this
paragraph. The plaintiff must prepare an inventory and mail a copy of the inventory to the
defendant's last known address or, if the defendant has provided a different address, to the
address provided. The inventory must be prepared, signed, and dated in the presence of the
officer and must include the following:

(1) a list of the items of personal property and a description of their condition;

(2) the date, the signature of the plaintiff or the plaintiff's agent, and the name and
telephone number of a person authorized to release the personal property; and

(3) the name and badge number of the officer.

(e) The officer must retain a copy of the inventory.

(f) The plaintiff is responsible for the proper removal, storage, and care of the defendant's
personal property and is liable for damages for loss of or injury to it caused by the plaintiff's
failure to exercise the same care that a reasonably careful person would exercise under
similar circumstances.

(g) The plaintiff shall notify the defendant of the date and approximate time the officer
is scheduled to remove the defendant, family, and personal property from the premises. The
notice must be sent by first class mail. In addition, the plaintiff must make a good faith
effort to notify the defendant by telephone. The notice must be mailed as soon as the
information regarding the date and approximate time the officer is scheduled to enforce the
order is known to the plaintiff, except that the scheduling of the officer to enforce the order
need not be delayed because of the notice requirement. The notice must inform the defendant
that the defendant and the defendant's personal property will be removed from the premises
if the defendant has not vacated the premises by the time specified in the notice.

Sec. 46.

Laws 1996, chapter 471, article 3, section 51, is amended to read:


Sec. 51. RECREATION LEVY FOR SAWYER BY CARLTON COUNTY.

Subdivision 1.

Levy authorized.

Notwithstanding other law to the contrary, the Carlton
county board of commissioners may levy in and for the unorganized township of Sawyer
an amount up to $1,500 annually for recreational purposesdeleted text begin , beginning with taxes payable
in 1997 and ending with taxes payable in 2006
deleted text end .

deleted text begin Subd. 2. deleted text end

deleted text begin Effective date. deleted text end

deleted text begin This section is effective June 1, 1996, without local approval.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section applies to taxes payable in 2018 and thereafter, and
is effective the day after the Carlton County Board of Commissioners and its chief clerical
officer timely complete their compliance with section 645.021, subdivisions 2 and 3.
new text end

Sec. 47. new text begin SOCCER STADIUM PROPERTY TAX EXEMPTION; SPECIAL
ASSESSMENT.
new text end

new text begin Any real or personal property acquired, owned, leased, controlled, used, or occupied by
the city of St. Paul for the primary purpose of providing a stadium for a Major League
Soccer team is declared to be acquired, owned, leased, controlled, used, and occupied for
public, governmental, and municipal purposes, and is exempt from ad valorem taxation by
the state or any political subdivision of the state, provided that the properties are subject to
special assessments levied by a political subdivision for a local improvement in amounts
proportionate to and not exceeding the special benefit received by the properties from the
improvement. In determining the special benefit received by the properties, no possible use
of any of the properties in any manner different from their intended use for providing a
Major League Soccer stadium at the time may be considered. Notwithstanding Minnesota
Statutes, section 272.01, subdivision 2, or 273.19, real or personal property subject to a
lease or use agreement between the city and another person for uses related to the purposes
of the operation of the stadium and related parking facilities is exempt from taxation
regardless of the length of the lease or use agreement. This section, insofar as it provides
an exemption or special treatment, does not apply to any real property that is leased for
residential, business, or commercial development or other purposes different from those
necessary to the provision and operation of the stadium.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the St. Paul City
Council and compliance with Minnesota Statutes, section 645.021.
new text end

Sec. 48. new text begin LEGISLATIVE PROPERTY TAX REFORM WORKING GROUP.
new text end

new text begin Subdivision 1. new text end

new text begin Membership. new text end

new text begin (a) The Legislative Property Tax Reform Working Group
is created and consists of the following members:
new text end

new text begin (1) two representatives appointed by the chair of the tax committee of the house of
representatives;
new text end

new text begin (2) two representatives appointed by the minority leader of the tax committee of the
house of representatives;
new text end

new text begin (3) two senators appointed by the chair of the senate tax committee; and
new text end

new text begin (4) two senators appointed by the minority leader of the senate tax committee.
new text end

new text begin (b) Any vacancy shall be filled by appointment of the appointing authority for the vacating
member.
new text end

new text begin (c) Members shall be appointed by July 1, 2017.
new text end

new text begin Subd. 2. new text end

new text begin Duties. new text end

new text begin The working group must perform the duties described in section 48.
new text end

new text begin Subd. 3. new text end

new text begin First meeting; chair. new text end

new text begin The first appointee of the chair of the house of
representatives tax committee must convene the initial meeting of the working group by
July 21, 2017. The members of the working group must elect a chair and vice-chair from
the members of the working group at the first meeting.
new text end

new text begin Subd. 4. new text end

new text begin Staff. new text end

new text begin Legislative staff of the house of representatives and senate shall provide
Previous administrative Next and research support. The working group may request the assistance of staff
from the Department of Revenue and Department of Education as necessary to facilitate its
work.
new text end

new text begin Subd. 5. new text end

new text begin Report. new text end

new text begin The working group must submit a report by February 15, 2018, to the
chairs and ranking minority members of the committees in the senate and house of
representatives with primary jurisdiction over taxes, presenting two or more alternatives
for reform of Minnesota's property tax system.
new text end

new text begin Subd. 6. new text end

new text begin Sunset. new text end

new text begin The working group shall sunset the day following the submission of
the report under subdivision 5.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 49. new text begin PROPOSALS FOR REFORM OF MINNESOTA'S PROPERTY TAX
SYSTEM.
new text end

new text begin The Legislative Property Tax Reform Working Group must develop proposals to
restructure Minnesota's property tax system for legislative consideration. The proposals
must provide for a system that reduces the complexity and cost of Minnesota's property tax
system to increase transparency and understanding for taxpayers and assessors while
minimizing the number of properties that experience severe tax changes. The proposals
must include, but are not limited to, a reduction in the number of classifications and tiers
in the current property tax system. The proposals may include a transition period of up to
five years before the final system elements are fully operational. At least one proposal must
be developed where the highest estimated net state cost does not exceed $250,000,000 in
the first year that the proposal is fully phased in. At least one proposal must be developed
where the highest estimated net state cost does not exceed $500,000,000 in the first year
that the proposal is fully phased in. Each proposal should estimate the Previous administrative Next cost
savings to county governments and to the state government.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 50. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, sections 270C.9901; and 281.22, new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 3

TAXPAYER EMPOWERMENT

Section 1.

Minnesota Statutes 2016, section 123B.63, subdivision 3, is amended to read:


Subd. 3.

Capital project levy referendum.

(a) A district may levy the local tax rate
approved by a majority of the electors voting on the question to provide funds for an approved
project. The election must take place no more than five years before the estimated date of
commencement of the project. The referendum deleted text begin mustdeleted text end new text begin maynew text end be deleted text begin held on a date setdeleted text end new text begin callednew text end by
the boardnew text begin and, except as provided in paragraph (g), must be held on the first Tuesday after
the first Monday in November in either an even-numbered or odd-numbered year
new text end . A district
must meet the requirements of section 123B.71 for projects funded under this section. If a
review and comment is required under section 123B.71, subdivision 8, a referendum for a
project not receiving a positive review and comment by the commissioner must be approved
by at least 60 percent of the voters at the election.

(b) deleted text begin Thedeleted text end new text begin Anew text end referendum deleted text begin may bedeleted text end called deleted text begin by the school board anddeleted text end new text begin under this subdivisionnew text end may
be held:

(1) separately, before an election for the issuance of obligations for the project under
chapter 475; or

(2) in conjunction with an election for the issuance of obligations for the project under
chapter 475; or

(3) notwithstanding section 475.59, as a conjunctive question authorizing both the capital
project levy and the issuance of obligations for the project under chapter 475. Any obligations
authorized for a project may be issued within five years of the date of the election.

(c) The ballot must provide a general description of the proposed project, state the
estimated total cost of the project, state whether the project has received a positive or negative
review and comment from the commissioner, state the maximum amount of the capital
project levy as a percentage of net tax capacity, state the amount that will be raised by that
local tax rate in the first year it is to be levied, and state the maximum number of years that
the levy authorization will apply.

The ballot must contain a textual portion with the information required in this section
and a question stating substantially the following:

"Shall the capital project levy proposed by the board of .......... School District No. ..........
be approved?"

If approved, the amount provided by the approved local tax rate applied to the net tax
capacity for the year preceding the year the levy is certified may be certified for the number
of years, not to exceed ten, approved.

(d) If the district proposes a new capital project to begin at the time the existing capital
project expires and at the same maximum tax rate, the general description on the ballot may
state that the capital project levy is being renewed and that the tax rate is not being increased
from the previous year's rate. An election to renew authority under this paragraph may be
called at any time that is otherwise authorized by this subdivision. The ballot notice required
under section 275.60 may be modified to read:

"BY VOTING YES ON THIS BALLOT QUESTION, YOU ARE VOTING TO RENEW
AN EXISTING CAPITAL PROJECTS REFERENDUM THAT IS SCHEDULED TO
EXPIRE."

(e) In the event a conjunctive question proposes to authorize both the capital project
levy and the issuance of obligations for the project, appropriate language authorizing the
issuance of obligations must also be included in the question.

(f) The district must notify the commissioner of the results of the referendum.

new text begin (g) Notwithstanding paragraph (a), a referendum to levy the amount needed to finance
a district's response to a disaster or emergency may be held on a date set by the board.
"Disaster" means a situation that creates an actual or imminent serious threat to the health
and safety of persons, or a situation that has resulted or is likely to result in catastrophic
loss to property or the environment. "Emergency" means an unforeseen combination of
circumstances that calls for immediate action to prevent a disaster, identified in the
referendum, from developing or occurring.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 2.

Minnesota Statutes 2016, section 126C.17, subdivision 9, is amended to read:


Subd. 9.

Referendum revenue.

(a) The revenue authorized by section 126C.10,
subdivision 1
, may be increased in the amount approved by the voters of the district at a
referendum called for the purpose. The referendum may be called by the board. The
referendum must be conducted one or two calendar years before the increased levy authority,
if approved, first becomes payable. Only one election to approve an increase may be held
in a calendar year. Unless the referendum is conducted by mail under subdivision 11,
paragraph (a), the referendum must be held on the first Tuesday after the first Monday in
November. The ballot must state the maximum amount of the increased revenue per adjusted
pupil unit. The ballot may state a schedule, determined by the board, of increased revenue
per adjusted pupil unit that differs from year to year over the number of years for which the
increased revenue is authorized or may state that the amount shall increase annually by the
rate of inflation. new text begin The ballot must state the cumulative amount per pupil of any local optional
revenue, board-approved referendum authority, and previous voter-approved referendum
authority, if any, that the board expects to certify for the next school year.
new text end For this purpose,
the rate of inflation shall be the annual inflationary increase calculated under subdivision
2, paragraph (b). The ballot may state that existing referendum levy authority is expiring.
In this case, the ballot may also compare the proposed levy authority to the existing expiring
levy authority, and express the proposed increase as the amount, if any, over the expiring
referendum levy authority. The ballot must designate the specific number of years, not to
exceed ten, for which the referendum authorization applies. The ballot, including a ballot
on the question to revoke or reduce the increased revenue amount under paragraph (c), must
abbreviate the term "per adjusted pupil unit" as "per pupil." The notice required under section
275.60 may be modified to read, in cases of renewing existing levies at the same amount
per pupil as in the previous year:

"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING TO
EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS SCHEDULED
TO EXPIRE."

The ballot may contain a textual portion with the information required in this subdivision
and a question stating substantially the following:

"Shall the increase in the revenue proposed by (petition to) the board of ........., School
District No. .., be approved?"

If approved, an amount equal to the approved revenue per adjusted pupil unit times the
adjusted pupil units for the school year beginning in the year after the levy is certified shall
be authorized for certification for the number of years approved, if applicable, or until
revoked or reduced by the voters of the district at a subsequent referendum.

(b) The board must prepare and deliver by first class mail at least 15 days but no more
than 30 days before the day of the referendum to each taxpayer a notice of the referendum
and the proposed revenue increase. The board need not mail more than one notice to any
taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be
those shown to be owners on the records of the county auditor or, in any county where tax
statements are mailed by the county treasurer, on the records of the county treasurer. Every
property owner whose name does not appear on the records of the county auditor or the
county treasurer is deemed to have waived this mailed notice unless the owner has requested
in writing that the county auditor or county treasurer, as the case may be, include the name
on the records for this purpose. The notice must project the anticipated amount of tax increase
in annual dollars for typical residential homesteads, agricultural homesteads, apartments,
and commercial-industrial property within the school district.

new text begin The notice must state the cumulative and individual amounts per pupil of any local
optional revenue, board-approved referendum authority, and voter-approved referendum
authority, if any, that the board expects to certify for the next school year.
new text end

The notice for a referendum may state that an existing referendum levy is expiring and
project the anticipated amount of increase over the existing referendum levy in the first
year, if any, in annual dollars for typical residential homesteads, agricultural homesteads,
apartments, and commercial-industrial property within the district.

The notice must include the following statement: "Passage of this referendum will result
in an increase in your property taxes." However, in cases of renewing existing levies, the
notice may include the following statement: "Passage of this referendum extends an existing
operating referendum at the same amount per pupil as in the previous year."

(c) A referendum on the question of revoking or reducing the increased revenue amount
authorized pursuant to paragraph (a) may be called by the board. A referendum to revoke
or reduce the revenue amount must state the amount per adjusted pupil unit by which the
authority is to be reduced. Revenue authority approved by the voters of the district pursuant
to paragraph (a) must be available to the school district at least once before it is subject to
a referendum on its revocation or reduction for subsequent years. Only one revocation or
reduction referendum may be held to revoke or reduce referendum revenue for any specific
year and for years thereafter.

(d) The approval of 50 percent plus one of those voting on the question is required to
pass a referendum authorized by this subdivision.

(e) At least 15 days before the day of the referendum, the district must submit a copy of
the notice required under paragraph (b) to the commissioner and to the county auditor of
each county in which the district is located. Within 15 days after the results of the referendum
have been certified by the board, or in the case of a recount, the certification of the results
of the recount by the canvassing board, the district must notify the commissioner of the
results of the referendum.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 3.

Minnesota Statutes 2016, section 205.10, subdivision 1, is amended to read:


Subdivision 1.

Questions.

Special elections may be held in a city or town on a question
on which the voters are authorized by law or charter to pass judgment. new text begin A special election
on a question may only be held by a city on the first Tuesday after the first Monday in
November in either an even-numbered or odd-numbered year. A special election on a
question held by a town may be held on the same day as the annual town meeting or on the
first Tuesday after the first Monday in November in either an even-numbered or
odd-numbered year.
new text end A special election may be ordered by the governing body of the
municipality on its own motion or, on a question that has not been submitted to the voters
in an election within the previous six months, upon a petition signed by a number of voters
equal to 20 percent of the votes cast at the last municipal general election. A question is
carried only with the majority in its favor required by law or charter. The election officials
for a special election shall be the same as for the most recent municipal general election
unless changed according to law. Otherwise special elections shall be conducted and the
returns made in the manner provided for the municipal general election.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 4.

Minnesota Statutes 2016, section 205A.05, subdivision 1, is amended to read:


Subdivision 1.

Questions.

deleted text begin (a)deleted text end Special elections must be held for a school district on a
question on which the voters are authorized by law to pass judgment. new text begin The special election
on a question may only be held on the first Tuesday after the first Monday in November of
either an even-numbered or odd-numbered year.
new text end The school board may on its own motion
call a special election to vote on any matter requiring approval of the voters of a district.
Upon petition filed with the school board of 50 or more voters of the school district or five
percent of the number of voters voting at the preceding school district general election,
whichever is greater, the school board shall by resolution call a special election to vote on
any matter requiring approval of the voters of a district. A question is carried only with the
majority in its favor required by law. The election officials for a special election are the
same as for the most recent school district general election unless changed according to
law. Otherwise, special elections must be conducted and the returns made in the manner
provided for the school district general election.

deleted text begin (b) A special election may not be held:
deleted text end

deleted text begin (1) during the 56 days before and the 56 days after a regularly scheduled primary or
general election conducted wholly or partially within the school district;
deleted text end

deleted text begin (2) on the date of a regularly scheduled town election or annual meeting in March
conducted wholly or partially within the school district; or
deleted text end

deleted text begin (3) during the 30 days before or the 30 days after a regularly scheduled town election
in March conducted wholly or partially within the school district.
deleted text end

deleted text begin (c) Notwithstanding any other law to the contrary, the time period in which a special
election must be conducted under any other law may be extended by the school board to
conform with the requirements of this subdivision.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 5.

Minnesota Statutes 2016, section 216B.46, is amended to read:


216B.46 MUNICIPAL ACQUISITION PROCEDURES; NOTICE; ELECTION.

Any municipality which desires to acquire the property of a public utility as authorized
under the provisions of section 216B.45 may determine to do so by resolution of the
governing body of the municipality taken after a public hearing of which at least 30 days'
published notice shall be given as determined by the governing body. The determination
shall become effective when ratified by a majority of the qualified electors voting on the
question at a special election to be held for that purposedeleted text begin , not less than 60 nor more than 120
days after the resolution of the governing body of the municipality
deleted text end new text begin on the first Tuesday after
the first Monday in November in either an even-numbered or odd-numbered year
new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 6.

Minnesota Statutes 2016, section 237.19, is amended to read:


237.19 MUNICIPAL TELECOMMUNICATIONS SERVICES.

Any municipality shall have the right to own and operate a telephone exchange within
its own borders, subject to the provisions of this chapter. It may construct such plant, or
purchase an existing plant by agreement with the owner, or where it cannot agree with the
owner on price, it may acquire an existing plant by condemnation, as hereinafter provided,
but in no case shall a municipality construct or purchase such a plant or proceed to acquire
an existing plant by condemnation until such action by it is authorized by a majority of the
electors voting upon the proposition at deleted text begin a generaldeleted text end new text begin annew text end election deleted text begin or a special election called for
that purpose
deleted text end new text begin held on the first Tuesday after the first Monday in November in either an
even-numbered or odd-numbered year
new text end , and if the proposal is to construct a new exchange
where an exchange already exists, it shall not be authorized to do so unless 65 percent of
those voting thereon vote in favor of the undertaking. A municipality that owns and operates
a telephone exchange may enter into a joint venture as a partner or shareholder with a
telecommunications organization to provide telecommunications services within its service
area.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 7.

Minnesota Statutes 2016, section 275.065, subdivision 3, is amended to read:


Subd. 3.

Notice of proposed property taxes.

(a) The county auditor shall prepare and
the county treasurer shall deliver after November 10 and on or before November 24 each
year, by first class mail to each taxpayer at the address listed on the county's current year's
assessment roll, a notice of proposed property taxes. Upon written request by the taxpayer,
the treasurer may send the notice in electronic form or by electronic mail instead of on paper
or by ordinary mail.

(b) The commissioner of revenue shall prescribe the form of the notice.

(c) The notice must inform taxpayers that it contains the amount of property taxes each
taxing authority proposes to collect for taxes payable the following year. In the case of a
town, or in the case of the state general tax, the final tax amount will be its proposed tax.
The notice must clearly state for each city that has a population over 500, county, school
district, regional library authority established under section 134.201, and metropolitan taxing
districts as defined in paragraph (i), the time and place of a meeting for each taxing authority
in which the budget and levy will be discussed and public input allowed, prior to the final
budget and levy determination. The taxing authorities must provide the county auditor with
the information to be included in the notice on or before the time it certifies its proposed
levy under subdivision 1. The public must be allowed to speak at that meeting, which must
occur after November 24 and must not be held before 6:00 p.m. It must provide a telephone
number for the taxing authority that taxpayers may call if they have questions related to the
notice and an address where comments will be received by mail, except that no notice
required under this section shall be interpreted as requiring the printing of a personal
telephone number or address as the contact information for a taxing authority. If a taxing
authority does not maintain public offices where telephone calls can be received by the
authority, the authority may inform the county of the lack of a public telephone number and
the county shall not list a telephone number for that taxing authority.

(d) The notice must state for each parcel:

(1) the market value of the property as determined under section 273.11, and used for
computing property taxes payable in the following year and for taxes payable in the current
year as each appears in the records of the county assessor on November 1 of the current
year; and, in the case of residential property, whether the property is classified as homestead
or nonhomestead. The notice must clearly inform taxpayers of the years to which the market
values apply and that the values are final values;

(2) the items listed below, shown separately by county, city or town, and state general
tax, agricultural homestead credit under section 273.1384, voter approved school levy, other
local school levy, and the sum of the special taxing districts, and as a total of all taxing
authorities:

(i) the actual tax for taxes payable in the current year; and

(ii) the proposed tax amount.

If the county levy under clause (2) includes an amount for a lake improvement district
as defined under sections 103B.501 to 103B.581, the amount attributable for that purpose
must be separately stated from the remaining county levy amount.

In the case of a town or the state general tax, the final tax shall also be its proposed tax
unless the town changes its levy at a special town meeting under section 365.52. If a school
district has certified under section 126C.17, subdivision 9, that a referendum will be held
in the school district at the November general election, the county auditor must note next
to the school district's proposed amount that a referendum is pending and that, if approved
by the voters, the tax amount may be higher than shown on the notice. In the case of the
city of Minneapolis, the levy for Minneapolis Park and Recreation shall be listed separately
from the remaining amount of the city's levy. In the case of the city of St. Paul, the levy for
the St. Paul Library Agency must be listed separately from the remaining amount of the
city's levy. In the case of Ramsey County, any amount levied under section 134.07 may be
listed separately from the remaining amount of the county's levy. In the case of a parcel
where tax increment or the fiscal disparities areawide tax under chapter 276A or 473F
applies, the proposed tax levy on the captured value or the proposed tax levy on the tax
capacity subject to the areawide tax must each be stated separately and not included in the
sum of the special taxing districts; deleted text begin and
deleted text end

(3) the increase or decrease between the total taxes payable in the current year and the
total proposed taxes, expressed as a percentagedeleted text begin .deleted text end new text begin ; and
new text end

new text begin (4) a statement at the top of the notice stating the following: if a county's or city's
proposed levy for next year is greater than its actual levy for the current year, the voters
may have the right to petition for a referendum on next year's levy certification, according
to Minnesota Statutes, section 275.80, provided that the final levy that the local government
certifies in December of this year is also greater than its levy for the current year.
new text end

For purposes of this section, the amount of the tax on homesteads qualifying under the
senior citizens' property tax deferral program under chapter 290B is the total amount of
property tax before subtraction of the deferred property tax amount.

(e) The notice must clearly state that the proposed or final taxes do not include the
following:

(1) special assessments;

(2) levies approved by the voters after the date the proposed taxes are certified, including
bond referenda and school district levy referenda;

(3) a levy limit increase approved by the voters by the first Tuesday after the first Monday
in November of the levy year as provided under section 275.73;

(4) amounts necessary to pay cleanup or other costs due to a natural disaster occurring
after the date the proposed taxes are certified;

(5) amounts necessary to pay tort judgments against the taxing authority that become
final after the date the proposed taxes are certified; and

(6) the contamination tax imposed on properties which received market value reductions
for contamination.

(f) Except as provided in subdivision 7, failure of the county auditor to prepare or the
county treasurer to deliver the notice as required in this section does not invalidate the
proposed or final tax levy or the taxes payable pursuant to the tax levy.

(g) If the notice the taxpayer receives under this section lists the property as
nonhomestead, and satisfactory documentation is provided to the county assessor by the
applicable deadline, and the property qualifies for the homestead classification in that
assessment year, the assessor shall reclassify the property to homestead for taxes payable
in the following year.

(h) In the case of class 4 residential property used as a residence for lease or rental
periods of 30 days or more, the taxpayer must either:

(1) mail or deliver a copy of the notice of proposed property taxes to each tenant, renter,
or lessee; or

(2) post a copy of the notice in a conspicuous place on the premises of the property.

The notice must be mailed or posted by the taxpayer by November 27 or within three
days of receipt of the notice, whichever is later. A taxpayer may notify the county treasurer
of the address of the taxpayer, agent, caretaker, or manager of the premises to which the
notice must be mailed in order to fulfill the requirements of this paragraph.

(i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing
districts" means the following taxing districts in the seven-county metropolitan area that
levy a property tax for any of the specified purposes listed below:

(1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 473.446,
473.521, 473.547, or 473.834;

(2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; and

(3) Metropolitan Mosquito Control Commission under section 473.711.

For purposes of this section, any levies made by the regional rail authorities in the county
of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A
shall be included with the appropriate county's levy.

(j) The governing body of a county, city, or school district may, with the consent of the
county board, include supplemental information with the statement of proposed property
taxes about the impact of state aid increases or decreases on property tax increases or
decreases and on the level of services provided in the affected jurisdiction. This supplemental
information may include information for the following year, the current year, and for as
many consecutive preceding years as deemed appropriate by the governing body of the
county, city, or school district. It may include only information regarding:

(1) the impact of inflation as measured by the implicit price deflator for state and local
government purchases;

(2) population growth and decline;

(3) state or Previous federal Next government action; and

(4) other financial factors that affect the level of property taxation and local services
that the governing body of the county, city, or school district may deem appropriate to
include.

The information may be presented using tables, written narrative, and graphic
representations and may contain instruction toward further sources of information or
opportunity for comment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2018 and thereafter.
new text end

Sec. 8.

Minnesota Statutes 2016, section 275.07, subdivision 1, is amended to read:


Subdivision 1.

Certification of levy.

(a) Except as provided under paragraph (b), the
taxes voted by cities, counties, school districts, and special districts shall be certified by the
proper authorities to the county auditor on or before five working days after December 20
in each year. A town must certify the levy adopted by the town board to the county auditor
by September 15 each year. If the town board modifies the levy at a special town meeting
after September 15, the town board must recertify its levy to the county auditor on or before
five working days after December 20. new text begin If a city or county levy is subject to a referendum
under section 275.80 and the referendum was approved by the voters, the maximum levy
certified under this section is the proposed levy certified under section 275.065. If the
referendum was not approved, the maximum amount of levy that a city or county may
approve under this section is the maximum alternative levy allowed in section 275.80,
subdivision 2. The city or county may choose to certify a levy less than the allowed maximum
amount.
new text end If a city, town, county, school district, or special district fails to certify its levy by
that date, its levy shall be the amount levied by it for the preceding year.

(b)(i) The taxes voted by counties under sections 103B.241, 103B.245, and 103B.251
shall be separately certified by the county to the county auditor on or before five working
days after December 20 in each year. The taxes certified shall not be reduced by the county
auditor by the aid received under section 273.1398, subdivision 3. If a county fails to certify
its levy by that date, its levy shall be the amount levied by it for the preceding year.

(ii) For purposes of the proposed property tax notice under section 275.065 and the
property tax statement under section 276.04, for the first year in which the county implements
the provisions of this paragraph, the county auditor shall reduce the county's levy for the
preceding year to reflect any amount levied for water management purposes under clause
(i) included in the county's levy.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2018 and thereafter.
new text end

Sec. 9.

Minnesota Statutes 2016, section 275.60, is amended to read:


275.60 LEVY OR BOND REFERENDUM; BALLOT NOTICE.

(a) Notwithstanding any general or special law or any charter provisions, but subject to
section 126C.17, subdivision 9, any question submitted to the voters by any local
governmental subdivision at deleted text begin a general or specialdeleted text end new text begin annew text end election after deleted text begin June 8, 1995deleted text end new text begin June 30,
2017
new text end , authorizing a property tax levy or tax rate increase, including the issuance of debt
obligations payable in whole or in part from property taxes, must include on the ballot the
following notice in boldface type:

"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING FOR A
PROPERTY TAX INCREASE."

(b) For purposes of this section and section 275.61, "local governmental subdivision"
includes counties, home rule and statutory cities, towns, school districts, and all special
taxing districts. This statement is in addition to any general or special laws or any charter
provisions that govern the contents of a ballot question and, in the case of a question on the
issuance of debt obligations, may be supplemented by a description of revenues pledged to
payment of the obligations that are intended as the primary source of payment.

new text begin (c) An election under this section must be held on the first Tuesday after the first Monday
in November of either an even-numbered or odd-numbered year. This paragraph does not
apply to an election on levying a tax or issuing debt obligations to finance the local
government's response to a disaster or emergency. An election for these purposes may be
held on a date set by the governing body. "Disaster" means a situation that creates an actual
or imminent serious threat to the health and safety of persons, or a situation that has resulted
or is likely to result in catastrophic loss to property or the environment. "Emergency" means
an unforeseen combination of circumstances that calls for immediate action to prevent a
disaster, identified in the referendum, from developing or occurring.
new text end

deleted text begin (c)deleted text end new text begin (d)new text end This section does not apply to a school district bond election if the debt service
payments are to be made entirely from transfers of revenue from the capital fund to the debt
service fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 10.

new text begin [275.80] LEVY INCREASE; REVERSE REFERENDUM AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Citation. new text end

new text begin This section shall be known as the "Property Tax Payers'
Empowerment Act."
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

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

new text begin (b) "General levy" means the total levy certified under section 275.07 by the local
governmental unit, excluding any levy that was approved by the voters at a general or special
election.
new text end

new text begin (c) "Local governmental unit" means a county or a statutory or home rule charter city
with a population of 500 or greater.
new text end

new text begin (d) "Maximum alternative levy" for taxes levied in a current year by a local governmental
unit means the sum of (1) its nondebt levy certified two years previous to the current year,
and (2) the amount of its proposed levy for the current year levied for the purposes listed
in section 275.70, subdivision 5, clauses (1) to (5).
new text end

new text begin (e) "Nondebt levy" means the total levy certified under section 275.07 by the local
governmental unit, minus any amount levied for the purposes listed in section 275.70,
subdivision 5, clauses (1) to (5).
new text end

new text begin Subd. 3. new text end

new text begin Levy increase; reverse referendum authority. new text end

new text begin If the certified general levy
exceeds the general levy in the previous year, the voters may petition for a referendum on
the levy to be certified for the following year. The county auditor must publish information
on the right to petition for a referendum as provided in section 276.04, subdivisions 1 and
2. If by June 30, a petition signed by the voters equal in number to ten percent of the votes
cast in the last general election requesting a vote on the levy is filed with the county auditor,
a question on the levy to be certified for the current year must be placed on the ballot at
either the general election or at a special election held on the first Tuesday after the first
Monday in November of the current calendar year.
new text end

new text begin Subd. 4. new text end

new text begin Prohibition against new debt before the election. new text end

new text begin Notwithstanding any other
provision of law, ordinance, or local charter provision, a county or city must not issue any
new debt or obligation from the time the petition for referendum is filed with the county
auditor under subdivision 3 until the day after the referendum required under this section
is held, except as allowed in this subdivision. Refunding bonds and bonds that have already
received voter approval are exempt from the prohibition in this subdivision. For purposes
of this subdivision, "obligation" has the meaning given in section 475.51, subdivision 3.
new text end

new text begin Subd. 5. new text end

new text begin Ballot question; consequence of vote. new text end

new text begin (a) The question submitted to the voters
as required under subdivision 3 shall take the following form:
new text end

new text begin "The governing body of ....... has imposed the following property tax levy in the last
two years and is proposing the following maximum levy increase for the coming year:
new text end

new text begin (previous payable year)
new text end
new text begin (current payable year)
new text end
new text begin (coming payable year)
new text end
new text begin Total levy
new text end
new text begin Total levy
new text end
new text begin Maximum proposed levy
new text end
new text begin $.......
new text end
new text begin $.......
new text end
new text begin $.......
new text end

new text begin Shall the governing body of ....... be allowed to impose the maximum proposed levy
listed above?
new text end

new text begin Yes .
new text end
new text begin No .
new text end

new text begin If the majority of votes cast are "no," its maximum allowed property tax levy for the
coming year will be reduced to its maximum alternative levy of ......."
new text end

new text begin (b) If a city is subject to this provision, it will provide the county auditor with information
on its proposed levy by September 30 necessary to calculate the maximum alternative levy
under subdivision 2.
new text end

new text begin (c) If the majority of votes cast on this question are in the affirmative, the levy certified
by the local governmental unit under section 275.07 must be less than or equal to its proposed
levy under section 275.065. If the question does not receive sufficient affirmative votes,
the levy amount that the local governmental unit certifies under section 275.07 in the current
year must be less than or equal to its maximum alternative levy as defined in subdivision
2.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2018 and thereafter.
new text end

Sec. 11.

Minnesota Statutes 2016, section 276.04, subdivision 1, is amended to read:


Subdivision 1.

Auditor to publish rates.

On receiving the tax lists from the county
auditor, the county treasurer shall, if directed by the county board, give three weeks' published
notice in a newspaper specifying the rates of taxation for all general purposes and the
amounts raised for each specific purpose.new text begin If a city or county is subject to a petition of the
voters due to a general levy increase as provided in section 275.80, the published notice
must also include the general levy for the current year and the previous year for that city or
county along with the following statement:
new text end

new text begin "Because the governing body of ....... increased its nonvoter-approved levy in the current
year, the voters in that jurisdiction have the right to petition for a referendum under Minnesota
Statutes, section 275.80, on that jurisdiction's levy amount. To invoke the referendum, a
petition signed by voters equal to ten percent of the votes cast in the last general election
must be filed with the county auditor by June 30 of the current year."
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2018 and thereafter.
new text end

Sec. 12.

Minnesota Statutes 2016, section 276.04, subdivision 2, is amended to read:


Subd. 2.

Contents of tax statements.

(a) The treasurer shall provide for the printing of
the tax statements. The commissioner of revenue shall prescribe the form of the property
tax statement and its contents. The tax statement must not state or imply that property tax
credits are paid by the state of Minnesota. The statement must contain a tabulated statement
of the dollar amount due to each taxing authority and the amount of the state tax from the
parcel of real property for which a particular tax statement is prepared. The dollar amounts
attributable to the county, the state tax, the voter approved school tax, the other local school
tax, the township or municipality, and the total of the metropolitan special taxing districts
as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated. The
amounts due all other special taxing districts, if any, may be aggregated except that any
levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, Hennepin,
Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate line directly
under the appropriate county's levy. If the county levy under this paragraph includes an
amount for a lake improvement district as defined under sections 103B.501 to 103B.581,
the amount attributable for that purpose must be separately stated from the remaining county
levy amount. In the case of Ramsey County, if the county levy under this paragraph includes
an amount for public library service under section 134.07, the amount attributable for that
purpose may be separated from the remaining county levy amount. The amount of the tax
on homesteads qualifying under the senior citizens' property tax deferral program under
chapter 290B is the total amount of property tax before subtraction of the deferred property
tax amount. The amount of the tax on contamination value imposed under sections 270.91
to 270.98, if any, must also be separately stated. The dollar amounts, including the dollar
amount of any special assessments, may be rounded to the nearest even whole dollar. For
purposes of this section whole odd-numbered dollars may be adjusted to the next higher
even-numbered dollar. The amount of market value excluded under section 273.11,
subdivision 16
, if any, must also be listed on the tax statement.

(b) The property tax statements for manufactured homes and sectional structures taxed
as personal property shall contain the same information that is required on the tax statements
for real property.

(c) Real and personal property tax statements must contain the following information
in the order given in this paragraph. The information must contain the current year tax
information in the right column with the corresponding information for the previous year
in a column on the left:

(1) the property's estimated market value under section 273.11, subdivision 1;

(2) the property's homestead market value exclusion under section 273.13, subdivision
35;

(3) the property's taxable market value under section 272.03, subdivision 15;

(4) the property's gross tax, before credits;

(5) for homestead agricultural properties, the credit under section 273.1384;

(6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135;
273.1391; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of credit
received under section 273.135 must be separately stated and identified as "taconite tax
relief"; and

(7) the net tax payable in the manner required in paragraph (a).

new text begin (d) If a city or county is subject to a petition of the voters due to a general levy increase
as provided in section 275.80, the tax statement must also include the general levy for the
current year and the previous year for that city or county along with the following statement:
new text end

new text begin "Because the governing body of ....... increased its nonvoter-approved levy in the current
year, the voters in that jurisdiction have the right to petition for a referendum on that
jurisdiction's levy amount under Minnesota Statutes, section 275.80. To invoke the
referendum, a petition signed by voters equal to ten percent of the votes cast in the last
general election on this issue must be filed with the county auditor by June 30 of the current
year."
new text end

deleted text begin (d)deleted text end new text begin (e)new text end If the county uses envelopes for mailing property tax statements and if the county
agrees, a taxing district may include a notice with the property tax statement notifying
taxpayers when the taxing district will begin its budget deliberations for the current year,
and encouraging taxpayers to attend the hearings. If the county allows notices to be included
in the envelope containing the property tax statement, and if more than one taxing district
relative to a given property decides to include a notice with the tax statement, the county
treasurer or auditor must coordinate the process and may combine the information on a
single announcement.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2018 and thereafter.
new text end

Sec. 13.

Minnesota Statutes 2016, section 412.221, subdivision 2, is amended to read:


Subd. 2.

Contracts.

The council shall have power to make such contracts as may be
deemed necessary or desirable to make effective any power possessed by the council. The
city may purchase personal property through a conditional sales contract and real property
through a contract for deed under which contracts the seller is confined to the remedy of
recovery of the property in case of nonpayment of all or part of the purchase price, which
shall be payable over a period of not to exceed five years. When the contract price of property
to be purchased by contract for deed or conditional sales contract exceeds 0.24177 percent
of the estimated market value of the city, the city may not enter into such a contract for at
least ten days after publication in the official newspaper of a council resolution determining
to purchase property by such a contract; and, if before the end of that time a petition asking
for an election on the proposition signed by voters equal to ten percent of the number of
voters at the last regular city election is filed with the clerk, the city may not enter into such
a contract until the proposition has been approved by a majority of the votes cast on the
question at deleted text begin a regular or specialdeleted text end new text begin an new text end electionnew text begin held on the first Tuesday after the first Monday
in November of either an even-numbered or odd-numbered year
new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 14.

Minnesota Statutes 2016, section 412.301, is amended to read:


412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.

(a) The council may issue certificates of indebtedness or capital notes subject to the city
debt limits to purchase capital equipment.

(b) For purposes of this section, "capital equipment" means:

(1) public safety equipment, ambulance and other medical equipment, road construction
and maintenance equipment, and other capital equipment; and

(2) computer hardware and software, whether bundled with machinery or equipment or
unbundled, together with application development services and training related to the use
of the computer hardware or software.

(c) The equipment or software must have an expected useful life at least as long as the
terms of the certificates or notes.

(d) Such certificates or notes shall be payable in not more than ten years and shall be
issued on such terms and in such manner as the council may determine.

(e) If the amount of the certificates or notes to be issued to finance any such purchase
exceeds 0.25 percent of the estimated market value of taxable property in the city, they shall
not be issued for at least ten days after publication in the official newspaper of a council
resolution determining to issue them; and if before the end of that time, a petition asking
for an election on the proposition signed by voters equal to ten percent of the number of
voters at the last regular municipal election is filed with the clerk, such certificates or notes
shall not be issued until the proposition of their issuance has been approved by a majority
of the votes cast on the question at deleted text begin a regular or specialdeleted text end new text begin annew text end electionnew text begin held on the first Tuesday
after the first Monday in November of either an even-numbered or odd-numbered year
new text end .

(f) A tax levy shall be made for the payment of the principal and interest on such
certificates or notes, in accordance with section 475.61, as in the case of bonds.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 15.

Minnesota Statutes 2016, section 426.19, subdivision 2, is amended to read:


Subd. 2.

Referendum in certain cases.

Before the pledge of any such revenues to the
payment of any such bonds, warrants or certificates of indebtedness, except bonds, warrants
or certificates of indebtedness to construct, reconstruct, enlarge or equip a municipal liquor
store shall be made, the governing body shall submit to the voters of the city the question
of whether such revenues shall be so pledged and such pledge shall not be binding on the
city until it shall have been approved by a majority of the voters voting on the question at
deleted text begin either a generaldeleted text end new text begin annew text end election deleted text begin or special election called for that purposedeleted text end new text begin held on the first Tuesday
after the first Monday in November of either an even-numbered or odd-numbered year
new text end . No
election shall be required for pledge of such revenues for payment of bonds, warrants or
certificates of indebtedness to construct, reconstruct, enlarge or equip a municipal liquor
store.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 16.

Minnesota Statutes 2016, section 447.045, subdivision 2, is amended to read:


Subd. 2.

Statutory city; on-sale and off-sale store.

If the voters of a statutory city
operating an on-sale and off-sale municipal liquor store, at deleted text begin a general or specialdeleted text end new text begin annew text end electionnew text begin
held on the first Tuesday after the first Monday in November of either an even-numbered
or odd-numbered year
new text end , vote in favor of contributing from its liquor dispensary fund toward
the construction of a community hospital, the city council may appropriate not more than
$60,000 from the fund to any incorporated nonprofit hospital association to build a
community hospital in the statutory city. The hospital must be governed by a board including
two or more members of the statutory city council and be open to all residents of the statutory
city on equal terms. This appropriation must not exceed one-half the total cost of construction
of the hospital. The council must not appropriate the money unless the average net earnings
of the on-sale and off-sale municipal liquor store have been at least $10,000 for the last five
completed fiscal years before the date of the appropriation.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 17.

Minnesota Statutes 2016, section 447.045, subdivision 3, is amended to read:


Subd. 3.

Statutory city; off-sale or on- and off-sale store.

(a) If a statutory city operates
an off-sale, or an on- and off-sale municipal liquor store it may provide for a vote at deleted text begin a general
or special
deleted text end new text begin annew text end electionnew text begin held on the first Tuesday after the first Monday in November of either
an even-numbered or odd-numbered year
new text end on the question of contributing from the city liquor
dispensary fund to build, maintain, and operate a community hospital. If the vote is in favor,
the city council may appropriate money from the fund to an incorporated hospital association
for a period of four years. The appropriation must be from the net profits or proceeds of the
municipal liquor store. It must not exceed $4,000 a year for hospital construction and
maintenance or $1,000 a year for operation. The hospital must be open to all residents of
the community on equal terms.

(b) The council must not appropriate the money unless the average net earnings of the
off-sale, or on- and off-sale municipal liquor store have been at least $8,000 for the last two
completed years before the date of the appropriation.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 18.

Minnesota Statutes 2016, section 447.045, subdivision 4, is amended to read:


Subd. 4.

Fourth class city operating store.

If a city of the fourth class operates a
municipal liquor store, it may provide for a vote at deleted text begin a general or specialdeleted text end new text begin annew text end electionnew text begin held on
the first Tuesday after the first Monday in November of either an even-numbered or
odd-numbered year
new text end on the question of contributing from the profit in the city liquor
dispensary fund to build, equip, and maintain a community hospital within the city limits.
If the vote is in favor, the city council may appropriate not more than $200,000 from profits
in the fund for the purpose. The hospital must be open to all residents of the city on equal
terms.

The city may issue certificates of indebtedness in anticipation of and payable only from
profits from the operation of municipal liquor stores.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 19.

Minnesota Statutes 2016, section 447.045, subdivision 6, is amended to read:


Subd. 6.

Statutory city; fourth class.

If a fourth class statutory city operates a municipal
liquor store, it may provide for a vote at deleted text begin a general or specialdeleted text end new text begin annew text end electionnew text begin held on the first
Tuesday after the first Monday in November of either an even-numbered or odd-numbered
year
new text end on the question of contributing from the city liquor dispensary fund not more than
$15,000 a year for five years to build and maintain a community hospital. If the vote is in
favor the council may appropriate the money from the fund to an incorporated community
hospital association in the city.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 20.

Minnesota Statutes 2016, section 447.045, subdivision 7, is amended to read:


Subd. 7.

Statutory city; any store.

If a statutory city operates a municipal liquor store,
it may provide for a vote at deleted text begin a general or specialdeleted text end new text begin annew text end electionnew text begin held on the first Tuesday after
the first Monday in November of either an even-numbered or odd-numbered year
new text end on the
question of contributing from the statutory city liquor dispensary fund toward the acquisition,
construction, improvement, maintenance, and operation of a community hospital. If the
vote is in favor, the council may appropriate money from time to time out of the net profits
or proceeds of the municipal liquor store to an incorporated nonprofit hospital association
in the statutory city. The hospital association must be governed by a board of directors
elected by donors of $50 or more, who each have one vote. The hospital must be open to
all residents of the community on equal terms.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 21.

Minnesota Statutes 2016, section 452.11, is amended to read:


452.11 SUBMISSION TO VOTERS.

No city of the first class shall acquire or construct any public utility under the terms of
sections 452.08 to 452.13 unless the proposition to acquire or construct same has first been
submitted to the qualified electors of the city at a deleted text begin generaldeleted text end city election deleted text begin or at a special election
called for that purpose,
deleted text end new text begin held on the first Tuesday after the first Monday in November of
either an even-numbered or odd-numbered year
new text end and new text begin has new text end been approved by a majority vote
of all electors voting upon the proposition.

The question of issuing public utility certificates as provided in section 452.09 may, at
the option of the council, be submitted at the same election as the question of the acquisition
or construction of the public utility.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 22.

Minnesota Statutes 2016, section 455.24, is amended to read:


455.24 SUBMISSION TO VOTERS.

Before incurring any expense under the powers conferred by section 455.23, the approval
of the voters of the city shall first be had at deleted text begin a general or specialdeleted text end new text begin annew text end election held deleted text begin thereindeleted text end new text begin on
the first Tuesday after the first Monday in November of either an even-numbered or
odd-numbered year
new text end . If a majority of the voters of the city participating at the election shall
vote in favor of the construction of the system of poles, wires and cables herein authorized
to be made, the council shall proceed with the construction.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 23.

Minnesota Statutes 2016, section 455.29, is amended to read:


455.29 MUNICIPALITIES MAY EXTEND ELECTRIC SERVICE.

Except as otherwise restricted by chapter 216B, the governing body, or the commission
or board charged with the operation of the public utilities, if one exists therein, of any
municipality in the state owning and operating an electric light and power plant for the
purpose of the manufacture and sale of electrical power or for the purchase and redistribution
of electrical power, may, upon a two-thirds vote of the governing body, or the commission
or board, in addition to all other powers now possessed by such municipality, sell electricity
to customers, singly or collectively, outside of such municipality, within the state but not
to exceed a distance of 30 miles from the corporate limits of the municipality. Before any
municipality shall have the power to extend its lines and sell electricity outside of the
municipality as provided by sections 455.29 and 455.30, the governing body shall first
submit to the voters of the municipality, at deleted text begin a general or specialdeleted text end new text begin annew text end electionnew text begin held on the first
Tuesday after the first Monday in November of either an even-numbered or odd-numbered
year
new text end , the general principle of going outside the municipality and fixing the maximum amount
of contemplated expenditures reasonably expected to be made for any and all extensions
then or thereafter contemplated. Three weeks' published notice shall be given of such election
as required by law, and if a majority of those voting upon the proposition favors the same,
then the municipality shall thereafter be considered as having chosen to enter the general
business of extending its electric light and power facilities beyond the corporate limits of
the municipality. It shall not be necessary to submit to a vote of the people the question of
any specific enlargement, extension, or improvement of any outside lines; provided the
voters of the municipality have generally elected to exercise the privileges afforded by
sections 455.29 and 455.30, and, provided, that each and any specific extension, enlargement,
or improvement project is within the limit of the maximum expenditure authorized at the
election. In cities operating under a home rule charter, where a vote of the people is not
now required in order to extend electric light and power lines, no election shall be required
under the provisions of any act. At any election held to determine the attitude of the voters
upon this principle, the question shall be simply stated upon the ballot provided therefor,
and shall be substantially in the following form: "Shall the city of ..................... undertake
the general proposition of extending its electric light and power lines beyond the limits of
the municipality, and limit the maximum expenditures for any and all future extensions to
the sum of $....................?" For this purpose every municipality is authorized and empowered
to extend the lines, wires, and fixtures of its plant to such customers and may issue certificates
of indebtedness therefor in an amount not to exceed the actual cost of the extensions and
for a term not to exceed the reasonable life of the extensions. These certificates of
indebtedness shall in no case be made a charge against the municipality, but shall be payable
and paid out of current revenues of the plant other than taxes.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 24.

Minnesota Statutes 2016, section 459.06, subdivision 1, is amended to read:


Subdivision 1.

Accept donations.

Any county, city, or town may by resolution of its
governing body accept donations of land that the governing body deems to be better adapted
for the production of timber and wood than for any other purpose, for a forest, and may
manage it on forestry principles. The donor of not less than 100 acres of any such land shall
be entitled to have the land perpetually bear the donor's name. The governing body of any
city or town, when funds are available or have been levied therefor, may, when authorized
by a majority vote by ballot of the voters voting at any deleted text begin general or specialdeleted text end city electionnew text begin held
on the first Tuesday after the first Monday in November of either an even-numbered or
odd-numbered year
new text end or new text begin the annual new text end town meeting where the question is properly submitted,
purchase or obtain by condemnation proceedings, and preferably at the sources of streams,
any tract of land for a forest which is better adapted for the production of timber and wood
than for any other purpose, and which is conveniently located for the purpose, and manage
it on forestry principles. The city or town may annually levy a tax on all taxable property
within its boundaries to procure and maintain such forests.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 25.

Minnesota Statutes 2016, section 469.053, subdivision 5, is amended to read:


Subd. 5.

Reverse referendum.

A city may increase its levy for port authority purposes
under subdivision 4 only as provided in this subdivision. Its city council must first pass a
resolution stating the proposed amount of levy increase. The city must then publish the
resolution together with a notice of public hearing on the resolution for two successive
weeks in its official newspaper or, if none exists, in a newspaper of general circulation in
the city. The hearing must be held two to four weeks after the first publication. After the
hearing, the city council may decide to take no action or may adopt a resolution authorizing
the proposed increase or a lesser increase. A resolution authorizing an increase must be
published in the city's official newspaper or, if none exists, in a newspaper of general
circulation in the city. The resolution is not effective if a petition requesting a referendum
on the resolution is filed with the city clerk within 30 days of publication of the resolution.
The petition must be signed by voters equaling five percent of the votes cast in the city in
the last general election. The resolution is effective if approved by a majority of those voting
on the question. The commissioner of revenue shall prepare a suggested form of referendum
question. The referendum must be held at deleted text begin a special or generaldeleted text end new text begin annew text end election deleted text begin before October 1
of the year for which the levy increase is proposed
deleted text end new text begin conducted on the first Tuesday after the
first Monday in November of either an even-numbered or odd-numbered year. If approved
by the voters, the levy increase may take effect no sooner than the next calendar year
new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 26.

Minnesota Statutes 2016, section 469.107, subdivision 2, is amended to read:


Subd. 2.

Reverse referendum.

A city may increase its levy for economic development
authority purposes under subdivision 1 in the following way. Its city council must first pass
a resolution stating the proposed amount of levy increase. The city must then publish the
resolution together with a notice of public hearing on the resolution for two successive
weeks in its official newspaper or if none exists in a newspaper of general circulation in the
city. The hearing must be held two to four weeks after the first publication. After the hearing,
the city council may decide to take no action or may adopt a resolution authorizing the
proposed increase or a lesser increase. A resolution authorizing an increase must be published
in the city's official newspaper or if none exists in a newspaper of general circulation in the
city. The resolution is not effective if a petition requesting a referendum on the resolution
is filed with the city clerk within 30 days of publication of the resolution. The petition must
be signed by voters equaling five percent of the votes cast in the city in the last general
election. The deleted text begin electiondeleted text end new text begin referendumnew text end must be held at deleted text begin a general or specialdeleted text end new text begin annew text end electionnew text begin held on
the first Tuesday after the first Monday in November of either an even-numbered or
odd-numbered year
new text end . Notice of the election must be given in the manner required by law.
The notice must state the purpose and amount of the levy.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 27.

Minnesota Statutes 2016, section 469.190, subdivision 1, is amended to read:


Subdivision 1.

Authorization.

Notwithstanding section 477A.016 or any other law, a
statutory or home rule charter city may by ordinance, and a town may by the affirmative
vote of the electors at the annual town meeting, deleted text begin or at a special town meeting,deleted text end impose a tax
of up to three percent on the gross receipts from the furnishing for consideration of lodging
at a hotel, motel, rooming house, tourist court, or resort, other than the renting or leasing
of it for a continuous period of 30 days or more. A statutory or home rule charter city may
by ordinance impose the tax authorized under this subdivision on the camping site receipts
of a municipal campground.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 28.

Minnesota Statutes 2016, section 469.190, subdivision 5, is amended to read:


Subd. 5.

Reverse referendum.

If the county board passes a resolution under subdivision
4 to impose the tax, the resolution must be published for two successive weeks in a newspaper
of general circulation within the unorganized territory, together with a notice fixing a date
for a public hearing on the proposed tax.

The hearing must be held not less than two weeks nor more than four weeks after the
first publication of the notice. After the public hearing, the county board may determine to
take no further action, or may adopt a resolution authorizing the tax as originally proposed
or approving a lesser rate of tax. The resolution must be published in a newspaper of general
circulation within the unorganized territory. The voters of the unorganized territory may
request a referendum on the proposed tax by filing a petition with the county auditor within
30 days after the resolution is published. The petition must be signed by voters who reside
in the unorganized territory. The number of signatures must equal at least five percent of
the number of persons voting in the unorganized territory in the last general election. If such
a petition is timely filed, the resolution is not effective until it has been submitted to the
voters residing in the unorganized territory at deleted text begin a general or specialdeleted text end new text begin annew text end electionnew text begin held on the
first Tuesday after the first Monday in November of either an even-numbered or
odd-numbered year
new text end and a majority of votes cast on the question of approving the resolution
are in the affirmative. The commissioner of revenue shall prepare a suggested form of
question to be presented at the referendum.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 29.

Minnesota Statutes 2016, section 471.57, subdivision 3, is amended to read:


Subd. 3.

May use fund for other purposes upon vote.

The council of any municipality
which has established a public works reserve fund by an ordinance designating the specific
improvement or type of capital improvement for which the fund may be used may submit
to the voters of the municipality at deleted text begin any regular or specialdeleted text end new text begin an new text end electionnew text begin held on the first Tuesday
after the first Monday in November of either an even-numbered or odd-numbered year
new text end the
question of using the fund for some other purpose. If a majority of the votes cast on the
question are in favor of such diversion from the original purpose of the fund, it may be used
for any purpose so approved by the voters.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 30.

Minnesota Statutes 2016, section 471.571, subdivision 3, is amended to read:


Subd. 3.

Expenditure from fund, limitation.

No expenditure for any one project in
excess of 60 percent of one year's levy or $25,000, whichever is greater, may be made from
such permanent improvement or replacement fund in any year without first obtaining the
approval of a majority of the voters voting at a deleted text begin general or specialdeleted text end municipal electionnew text begin held
on the first Tuesday after the first Monday in November of either an even-numbered or
odd-numbered year
new text end at which the question of making such expenditure has been submitted.
In submitting any proposal to the voters for approval, the amount proposed to be spent and
the purpose thereof shall be stated in the proposal submitted. The proceeds of such levies
may be pledged for the payment of any bonds issued pursuant to law for any purposes
authorized hereby and annual payments upon such bonds or interest may be made without
additional authorization.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 31.

Minnesota Statutes 2016, section 471.572, subdivision 2, is amended to read:


Subd. 2.

Tax levy.

The governing body of a city may establish, by a two-thirds vote of
all its members, by ordinance or resolution a reserve fund and may annually levy a property
tax for the support of the fund. The proceeds of taxes levied for its support must be paid
into the reserve fund. Any other revenue from a source not required by law to be paid into
another fund for purposes other than those provided for the use of the reserve fund may be
paid into the fund. Before a tax is levied under this section, the city must publish in the
official newspaper of the city an initial resolution authorizing the tax levy. If within ten
days after the publication a petition is filed with the city clerk requesting an election on the
tax levy signed by a number of qualified voters greater than ten percent of the number who
voted in the city at the last general election, the tax may not be levied until the levy has
been approved by a majority of the votes cast on it at deleted text begin a regular or specialdeleted text end new text begin annew text end electionnew text begin held
on the first Tuesday after the first Monday in November of either an even-numbered or
odd-numbered year
new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 32.

Minnesota Statutes 2016, section 471.572, subdivision 4, is amended to read:


Subd. 4.

Use of fund for a specific purpose.

If the city has established a reserve fund,
it may submit to the voters at deleted text begin a regular or specialdeleted text end new text begin annew text end electionnew text begin held on the first Tuesday after
the first Monday in November of either an even-numbered or odd-numbered year
new text end the question
of whether use of the fund should be restricted to a specific improvement or type of capital
improvement. If a majority of the votes cast on the question are in favor of the limitation
on the use of the reserve fund, it may be used only for the purpose approved by the voters.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 33.

Minnesota Statutes 2016, section 475.59, is amended to read:


475.59 MANNER OF SUBMISSION; NOTICE.

new text begin Subdivision 1. new text end

new text begin Generally; notice. new text end

When the governing body of a municipality resolves
to issue bonds for any purpose requiring the approval of the electors, it shall provide for
submission of the proposition of their issuance at a general or special election or town or
school district meeting. Notice of such election or meeting shall be given in the manner
required by law and shall state the maximum amount and the purpose of the proposed issue.
In any school district, the school board or board of education may, according to its judgment
and discretion, submit as a single ballot question or as two or more separate questions in
the notice of election and ballots the proposition of their issuance for any one or more of
the following, stated conjunctively or in the alternative: acquisition or enlargement of sites,
acquisition, betterment, erection, furnishing, equipping of one or more new schoolhouses,
remodeling, repairing, improving, adding to, betterment, furnishing, equipping of one or
more existing schoolhouses. In any city, town, or county, the governing body may, according
to its judgment and discretion, submit as a single ballot question or as two or more separate
questions in the notice of election and ballots the proposition of their issuance, stated
conjunctively or in the alternative, for the acquisition, construction, or improvement of any
facilities at one or more locations.

new text begin Subd. 2. new text end

new text begin Election date. new text end

new text begin An election to approve issuance of bonds under this section held
by a municipality other than a town must be held on the first Tuesday after the first Monday
in November of either an even-numbered or odd-numbered year. An election under this
section held by a town may be held on the same day as the annual town meeting or on the
first Tuesday after the first Monday in November of either an even-numbered or
odd-numbered year.
new text end

new text begin Subd. 3. new text end

new text begin Special laws. new text end

new text begin If a referendum on the issuance of bonds or other debt obligations
authorized in a special law is required, it must be held on a date as provided in subdivision
2, notwithstanding any provision in the special law authorizing the referendum to be held
at any other time.
new text end

new text begin Subd. 4. new text end

new text begin Exception for disaster or emergency. new text end

new text begin Subdivisions 2 and 3, and any other
law requiring an election to approve issuance of bonds or other debt obligations to be held
on the first Tuesday after the first Monday in November of either an even-numbered or
odd-numbered year, do not apply to issuance of bonds or other debt obligations to finance
the municipality's response to an emergency or disaster. "Disaster" means a situation that
creates an actual or imminent serious threat to the health and safety of persons, or a situation
that has resulted or is likely to result in catastrophic loss to property or the environment.
"Emergency" means an unforeseen combination of circumstances that calls for immediate
action to prevent a disaster, identified in the referendum, from developing or occurring.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 34. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, section 205.10, subdivision 3, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017.
new text end

ARTICLE 4

SALES AND USE TAXES

Section 1.

new text begin [88.068] VOLUNTEER FIRE ASSISTANCE GRANT ACCOUNT.
new text end

new text begin A volunteer fire assistance grant account is established in the special revenue fund. Sales
taxes allocated under section 297A.94, for making grants under section 88.067, must be
deposited in the special revenue fund and credited to the volunteer fire assistance grant
account. Money in the account, including interest, is appropriated to the commissioner for
making grants under that section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with deposits made in fiscal
year 2018.
new text end

Sec. 2.

Minnesota Statutes 2016, section 128C.24, is amended to read:


128C.24 LEAGUE FUNDS TRANSFER.

Beginning July 1, 2007, the Minnesota State High School League shall annually determine
the sales tax savings attributable to section 297A.70, subdivision deleted text begin 11deleted text end new text begin 11anew text end , and annually
transfer that amount to a nonprofit charitable foundation created for the purpose of promoting
high school extracurricular activities. The funds must be used by the foundation to make
grants to fund, assist, recognize, or promote high school students' participation in
extracurricular activities. The first priority for funding will be grants for scholarships to
individuals to offset athletic fees. The foundation must equitably award grants based on
considerations of gender balance, school size, and geographic location, to the extent feasible.

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2016, section 297A.66, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

(a) To the extent allowed by the United States Constitution
and the laws of the United States, "retailer maintaining a place of business in this state," or
a similar term, means a retailer:

(1) having or maintaining within this state, directly or by a subsidiary or an affiliate, an
office, place of distribution, salesnew text begin , storage,new text end or sample room or place, warehouse, or other
place of businessnew text begin , including the employment of a resident of this state who works from a
home office in this state
new text end ; or

(2) having a representative, including, but not limited to, an affiliate, agent, salesperson,
canvasser, deleted text begin ordeleted text end new text begin marketplace provider,new text end solicitornew text begin , or other third party new text end operating in this state
under the authority of the retailer or its subsidiary, for any purpose, including the repairing,
selling, delivering, installing, new text begin facilitating sales, processing sales, new text end or soliciting of orders for
the retailer's goods or services, or the leasing of tangible personal property located in this
state, whether the place of business or agent, representative, affiliate, salesperson, canvasser,
or solicitor is located in the state permanently or temporarily, or whether or not the retailer,
subsidiary, or affiliate is authorized to do business in this state.new text begin A retailer is represented by
a marketplace provider in this state if the retailer makes sales in this state facilitated by a
marketplace provider that maintains a place of business in this state.
new text end

(b) "Destination of a sale" means the location to which the retailer makes delivery of
the property sold, or causes the property to be delivered, to the purchaser of the property,
or to the agent or designee of the purchaser. The delivery may be made by any means,
including the United States Postal Service or a for-hire carrier.

new text begin (c) "Marketplace provider" means any person who facilitates a retail sale by a retailer
by:
new text end

new text begin (1) listing or advertising for sale by the retailer in any forum, tangible personal property,
services, or digital goods that are subject to tax under this chapter; and
new text end

new text begin (2) either directly or indirectly through agreements or arrangements with third parties
collecting payment from the customer and transmitting that payment to the retailer regardless
of whether the marketplace provider receives compensation or other consideration in
exchange for its services.
new text end

new text begin (d) "Total taxable retail sales" means the gross receipts from the sale of all tangible
goods, services, and digital goods subject to sales and use tax under this chapter.
new text end

Sec. 4.

Minnesota Statutes 2016, section 297A.66, subdivision 2, is amended to read:


Subd. 2.

Retailer maintaining place of business in this state.

new text begin (a) Except as provided
in paragraph (b),
new text end a retailer maintaining a place of business in this state who makes retail
sales in Minnesota or to a destination in Minnesota shall collect sales and use taxes and
remit them to the commissioner under section 297A.77.

new text begin (b) A retailer with total taxable retail sales to customers in this state of less than $10,000
in the 12-month period ending on the last day of the most recently completed calendar
quarter is not required to collect and remit sales tax if it is determined to be a retailer
maintaining a place of business in the state solely because it made sales through one or more
marketplace providers. The provisions of this paragraph do not apply to a retailer that is or
was registered to collect sales and use tax in this state.
new text end

Sec. 5.

Minnesota Statutes 2016, section 297A.66, subdivision 4, is amended to read:


Subd. 4.

Affiliated entities.

(a) An entity is an "affiliate" of the retailer for purposes of
subdivision 1, paragraph (a), ifnew text begin the entitynew text end :

(1) deleted text begin the entitydeleted text end uses its facilities or employees in this state to advertise, promote, or facilitate
the establishment or maintenance of a market for sales of items by the retailer to purchasers
in this state or for the provision of services to the retailer's purchasers in this state, such as
accepting returns of purchases for the retailer, providing assistance in resolving customer
complaints of the retailer, or providing other services; deleted text begin and
deleted text end

(2) deleted text begin the retailer and the entity are related parties.deleted text end new text begin has the same or a similar business name
to the retailer and sells, from a location or locations in this state, tangible personal property,
digital goods, or services, taxable under this chapter, that are similar to that sold by the
retailer;
new text end

new text begin (3) maintains an office, distribution facility, salesroom, warehouse, storage place, or
other similar place of business in this state to facilitate the delivery of tangible personal
property, digital goods, or services sold by the retailer to its customers in this state;
new text end

new text begin (4) maintains a place of business in this state and uses trademarks, service marks, or
trade names in this state that are the same or substantially similar to those used by the retailer,
and that use is done with the express or implied consent of the holder of the marks or names;
new text end

new text begin (5) delivers, installs, or assembles tangible personal property in this state, or performs
maintenance or repair services on tangible personal property in this state, for tangible
personal property sold by the retailer;
new text end

new text begin (6) facilitates the delivery of tangible personal property to customers of the retailer by
allowing the customers to pick up tangible personal property sold by the retailer at a place
of business the entity maintains in this state; or
new text end

new text begin (7) shares management, business systems, business practices, or employees with the
retailer, or engages in intercompany transactions with the retailer related to the activities
that establish or maintain the market in this state of the retailer.
new text end

(b) Two entities are related parties under this section if one of the entities meets at least
one of the following tests with respect to the other entity:

(1) one or both entities is a corporation, and one entity and any party related to that entity
in a manner that would require an attribution of stock from the corporation to the party or
from the party to the corporation under the attribution rules of section 318 of the Internal
Revenue Code owns directly, indirectly, beneficially, or constructively at least 50 percent
of the value of the corporation's outstanding stock;

(2) one or both entities is a partnership, estate, or trust and any partner or beneficiary,
and the partnership, estate, or trust and its partners or beneficiaries own directly, indirectly,
beneficially, or constructively, in the aggregate, at least 50 percent of the profits, capital,
stock, or value of the other entity or both entities; deleted text begin or
deleted text end

(3) an individual stockholder and the members of the stockholder's family (as defined
in section 318 of the Internal Revenue Code) owns directly, indirectly, beneficially, or
constructively, in the aggregate, at least 50 percent of the value of both entities' outstanding
stockdeleted text begin .deleted text end new text begin ;
new text end

new text begin (4) the entities are related within the meaning of subsections (b) and (c) of section 267
or 707(b)(1) of the Internal Revenue Code; or
new text end

new text begin (5) the entities have one or more ownership relationships and the relationships were
designed with a principal purpose of avoiding the application of this section.
new text end

(c) An entity is an affiliate under the provisions of this subdivision if the requirements
of paragraphs (a) and (b) are met during any part of the 12-month period ending on the first
day of the month before the month in which the sale was made.

Sec. 6.

Minnesota Statutes 2016, section 297A.66, is amended by adding a subdivision to
read:


new text begin Subd. 4b. new text end

new text begin Collection and remittance requirements for marketplace providers and
marketplace retailers.
new text end

new text begin (a) A marketplace provider shall collect sales and use taxes and
remit them to the commissioner under section 297A.77 for all facilitated sales for a retailer,
and is subject to audit on the retail sales it facilitates unless either:
new text end

new text begin (1) the retailer provides a copy of the retailer's registration to collect sales and use tax
in this state to the marketplace provider before the marketplace provider facilitates a sale;
or
new text end

new text begin (2) upon inquiry by the marketplace provider or its agent, the commissioner discloses
that the retailer is registered to collect sales and use taxes in this state.
new text end

new text begin (b) Nothing in this subdivision shall be construed to interfere with the ability of a
marketplace provider and a retailer to enter into an agreement regarding fulfillment of the
requirements of this chapter.
new text end

new text begin (c) A marketplace provider is not liable under this subdivision for failure to file and
collect and remit sales and use taxes if the marketplace provider demonstrates that the error
was due to incorrect or insufficient information given to the marketplace provider by the
retailer. This paragraph does not apply if the marketplace provider and the marketplace
retailer are related as defined in subdivision 4, paragraph (b).
new text end

Sec. 7.

Minnesota Statutes 2016, section 297A.67, subdivision 13a, is amended to read:


Subd. 13a.

Instructional materials.

new text begin (a) new text end Instructional materials, other than textbooks,
that are prescribed for use in conjunction with a course of study in a postsecondary school,
college, university, or private career school to students who are regularly enrolled at such
institutions are exempt. For purposes of this subdivision, "instructional materials" means
materials required to be used directly in the completion of the course of study, including,
but not limited todeleted text begin ,deleted text end new text begin :
new text end

new text begin (1) new text end interactive CDs, tapes, digital audio works, digital audiovisual works, and computer
softwaredeleted text begin .deleted text end new text begin ;
new text end

new text begin (2) charts and models used in the course of study; and
new text end

new text begin (3) specialty pens, pencils, inks, paint, paper, and other art supplies for art classes.
new text end

new text begin (b) Notwithstanding paragraph (c), if the course of study is necessary to obtaining a
degree or certification for a trade or career, any equipment, tools, and supplies required
during the course of study that are generally used directly in the practice of the career or
trade are also exempt.
new text end

new text begin (c) new text end Instructional materials do not include general reference works or other items incidental
to the instructional process such as pens, pencils, paper, folders, or computersnew text begin that are of
general use outside of the course of study
new text end .

new text begin (d) new text end For purposes of this subdivision, "school" and "private career school" have the
meanings given in subdivision 13.

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Minnesota Statutes 2016, section 297A.67, is amended by adding a subdivision to
read:


new text begin Subd. 34. new text end

new text begin Certain herbicides. new text end

new text begin Purchases of herbicides authorized for use pursuant to
an invasive aquatic plant management permit as defined under section 103G.615 are exempt
if purchased by a lakeshore property owner, an association of lakeshore property owners
organized under chapter 317A, or by a contractor hired by a lakeshore owner or association
to provide invasive aquatic plant management under the permit. For purposes of this
subdivision, "herbicides" means all herbicides that meet the following requirements:
new text end

new text begin (1) are labeled for use in water;
new text end

new text begin (2) are registered for use in this state by the Minnesota Department of Agriculture under
section 18B.26; and
new text end

new text begin (3) are listed as one of the herbicides proposed for use on the invasive aquatic plant
management permit.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2016, section 297A.68, subdivision 5, is amended to read:


Subd. 5.

Capital equipment.

(a) Capital equipment is exempt.

"Capital equipment" means machinery and equipment purchased or leased, and used in
this state by the purchaser or lessee primarily for manufacturing, fabricating, mining, or
refining tangible personal property to be sold ultimately at retail if the machinery and
equipment are essential to the integrated production process of manufacturing, fabricating,
mining, or refining. Capital equipment also includes machinery and equipment used primarily
to electronically transmit results retrieved by a customer of an online computerized data
retrieval system.

(b) Capital equipment includes, but is not limited to:

(1) machinery and equipment used to operate, control, or regulate the production
equipment;

(2) machinery and equipment used for research and development, design, quality control,
and testing activities;

(3) environmental control devices that are used to maintain conditions such as
temperature, humidity, light, or air pressure when those conditions are essential to and are
part of the production process;

(4) materials and supplies used to construct and install machinery or equipment;

(5) repair and replacement parts, including accessories, whether purchased as spare parts,
repair parts, or as upgrades or modifications to machinery or equipment;

(6) materials used for foundations that support machinery or equipment;

(7) materials used to construct and install special purpose buildings used in the production
process;

(8) ready-mixed concrete equipment in which the ready-mixed concrete is mixed as part
of the delivery process regardless if mounted on a chassis, repair parts for ready-mixed
concrete trucks, and leases of ready-mixed concrete trucks; and

(9) machinery or equipment used for research, development, design, or production of
computer software.

(c) Capital equipment does not include the following:

(1) motor vehicles taxed under chapter 297B;

(2) machinery or equipment used to receive or store raw materials;

(3) building materials, except for materials included in paragraph (b), clauses (6) and
(7);

(4) machinery or equipment used for nonproduction purposes, including, but not limited
to, the following: plant security, fire prevention, first aid, and hospital stations; support
operations or administration; pollution control; and plant cleaning, disposal of scrap and
waste, plant communications, space heating, cooling, lighting, or safety;

(5) farm machinery and aquaculture production equipment as defined by section 297A.61,
subdivisions 12 and 13;

(6) machinery or equipment purchased and installed by a contractor as part of an
improvement to real property;

(7) machinery and equipment used by restaurants in the furnishing, preparing, or serving
of prepared foods as defined in section 297A.61, subdivision 31;

(8) machinery and equipment used to furnish the services listed in section 297A.61,
subdivision 3
, paragraph (g), clause (6), items (i) to (vi) and (viii);

(9) machinery or equipment used in the transportation, transmission, or distribution of
petroleum, liquefied gas, natural gas, water, or steam, in, by, or through pipes, lines, tanks,
mains, or other means of transporting those products. This clause does not apply to machinery
or equipment used to blend petroleum or biodiesel fuel as defined in section 239.77; or

(10) any other item that is not essential to the integrated process of manufacturing,
fabricating, mining, or refining.

(d) For purposes of this subdivision:

(1) "Equipment" means independent devices or tools separate from machinery but
essential to an integrated production process, including computers and computer software,
used in operating, controlling, or regulating machinery and equipment; and any subunit or
assembly comprising a component of any machinery or accessory or attachment parts of
machinery, such as tools, dies, jigs, patterns, and molds.

(2) "Fabricating" means to make, build, create, produce, or assemble components or
property to work in a new or different manner.

(3) "Integrated production process" means a process or series of operations through
which tangible personal property is manufactured, fabricated, mined, or refined. For purposes
of this clause, (i) manufacturing begins with the removal of raw materials from inventory
and ends when the last process prior to loading for shipment has been completed; (ii)
fabricating begins with the removal from storage or inventory of the property to be assembled,
processed, altered, or modified and ends with the creation or production of the new or
changed product; (iii) mining begins with the removal of overburden from the site of the
ores, minerals, stone, peat deposit, or surface materials and ends when the last process before
stockpiling is completed; and (iv) refining begins with the removal from inventory or storage
of a natural resource and ends with the conversion of the item to its completed form.

(4) "Machinery" means mechanical, electronic, or electrical devices, including computers
and computer software, that are purchased or constructed to be used for the activities set
forth in paragraph (a), beginning with the removal of raw materials from inventory through
completion of the product, including packaging of the product.

(5) "Machinery and equipment used for pollution control" means machinery and
equipment used solely to eliminate, prevent, or reduce pollution resulting from an activity
described in paragraph (a).

(6) "Manufacturing" means an operation or series of operations where raw materials are
changed in form, composition, or condition by machinery and equipment and which results
in the production of a new article of tangible personal property. For purposes of this
subdivision, "manufacturing" includes the generation of electricity or steam to be sold at
retail.

(7) "Mining" means the extraction of minerals, ores, stone, or peat.

(8) "Online data retrieval system" means a system whose cumulation of information is
equally available and accessible to all its customers.

(9) "Primarily" means machinery and equipment used 50 percent or more of the time in
an activity described in paragraph (a).

(10) "Refining" means the process of converting a natural resource to an intermediate
or finished product, including the treatment of water to be sold at retail.

(11) This subdivision does not apply to telecommunications equipment as provided in
subdivision 35adeleted text begin , and does not apply to wire, cable, fiber, poles, or conduit for
telecommunications services
deleted text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 10.

Minnesota Statutes 2016, section 297A.68, subdivision 9, is amended to read:


Subd. 9.

Super Bowl admissionsnew text begin and related eventsnew text end .

new text begin (a) new text end The granting of the privilege
of admission to a world championship football game sponsored by the National Football
League deleted text begin isdeleted text end new text begin and to related events sponsored by the National Football League or its affiliates,
or the Minnesota Super Bowl Host Committee, are
new text end exempt.

new text begin (b) The sale of nonresidential parking by the National Football League for attendance
at a world championship football game sponsored by the National Football League and for
related events sponsored by the National Football League or its affiliates, or the Minnesota
Super Bowl Host Committee, is exempt. Purchases of nonresidential parking services by
the Super Bowl Host Committee are purchases made exempt for resale.
new text end

new text begin (c) For the purposes of this subdivision:
new text end

new text begin (1) "related events sponsored by the National Football League or its affiliates" includes
but is not limited to preparatory advance visits, NFL Experience, NFL Tailgate, NFL On
Location, and NFL House; and
new text end

new text begin (2) "affiliates" does not include National Football League teams.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin The amendments to this section are effective for sales and
purchases made after June 30, 2016, and before March 1, 2018.
new text end

Sec. 11.

Minnesota Statutes 2016, section 297A.68, subdivision 35a, is amended to read:


Subd. 35a.

Telecommunications or pay television services machinery and equipment.

(a) Telecommunications or pay television services machinery and equipment purchased or
leased for use directly by a telecommunications or pay television services provider primarily
in the provision of telecommunications or pay television services that are ultimately to be
sold at retail are exempt, regardless of whether purchased by the owner, a contractor, or a
subcontractor.

(b) For purposes of this subdivision, "telecommunications or pay television machinery
and equipment" includes, but is not limited to:

(1) machinery, equipment, and fixtures utilized in receiving, initiating, amplifying,
processing, transmitting, retransmitting, recording, switching, or monitoring
telecommunications or pay television services, such as computers, transformers, amplifiers,
routers, bridges, repeaters, multiplexers, and other items performing comparable functions;

(2) machinery, equipment, and fixtures used in the transportation of telecommunications
or pay television services, such as radio transmitters and receivers, satellite equipment,
microwave equipment, and other transporting media, deleted text begin but notdeleted text end new text begin includingnew text end wire, cable, fiber,
poles, or conduit;

(3) ancillary machinery, equipment, and fixtures that regulate, control, protect, or enable
the machinery in clauses (1) and (2) to accomplish its intended function, such as auxiliary
power supply, test equipment, towers, heating, ventilating, and air conditioning equipment
necessary to the operation of the telecommunications or pay television equipment; and
software necessary to the operation of the telecommunications or pay television equipment;
and

(4) repair and replacement parts, including accessories, whether purchased as spare parts,
repair parts, or as upgrades or modifications to qualified machinery or equipment.

new text begin EFFECTIVE DATE. new text end

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

Sec. 12.

Minnesota Statutes 2016, section 297A.70, subdivision 4, is amended to read:


Subd. 4.

Sales to nonprofit groups.

(a) All sales, except those listed in paragraph (b),
to the following "nonprofit organizations" are exempt:

(1) a corporation, society, association, foundation, or institution organized and operated
exclusively for charitable, religious, or educational purposes if the item purchased is used
in the performance of charitable, religious, or educational functions; deleted text begin and
deleted text end

(2) any senior citizen group or association of groups that:

(i) in general limits membership to persons who are either age 55 or older, or physically
disabled;

(ii) is organized and operated exclusively for pleasure, recreation, and other nonprofit
purposes, not including housing, no part of the net earnings of which inures to the benefit
of any private shareholders; and

(iii) is an exempt organization under section 501(c) of the Internal Revenue Codedeleted text begin .deleted text end new text begin ; and
new text end

new text begin (3) an organization that qualifies for an exemption for memberships under subdivision
12 if the item is purchased and used in the performance of the organization's mission.
new text end

For purposes of this subdivision, charitable purpose includes the maintenance of a cemetery
owned by a religious organization.

(b) This exemption does not apply to the following sales:

(1) building, construction, or reconstruction materials purchased by a contractor or a
subcontractor as a part of a lump-sum contract or similar type of contract with a guaranteed
maximum price covering both labor and materials for use in the construction, alteration, or
repair of a building or facility;

(2) construction materials purchased by tax-exempt entities or their contractors to be
used in constructing buildings or facilities that will not be used principally by the tax-exempt
entities;

(3) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause (2),
and prepared food, candy, soft drinks, and alcoholic beverages as defined in section 297A.67,
subdivision 2
, except wine purchased by an established religious organization for sacramental
purposes or as allowed under subdivision 9a; and

(4) leasing of a motor vehicle as defined in section 297B.01, subdivision 11, except as
provided in paragraph (c).

(c) This exemption applies to the leasing of a motor vehicle as defined in section 297B.01,
subdivision 11
, only if the vehicle is:

(1) a truck, as defined in section 168.002, a bus, as defined in section 168.002, or a
passenger automobile, as defined in section 168.002, if the automobile is designed and used
for carrying more than nine persons including the driver; and

(2) intended to be used primarily to transport tangible personal property or individuals,
other than employees, to whom the organization provides service in performing its charitable,
religious, or educational purpose.

(d) A limited liability company also qualifies for exemption under this subdivision if
(1) it consists of a sole member that would qualify for the exemption, and (2) the items
purchased qualify for the exemption.

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

Minnesota Statutes 2016, section 297A.70, is amended by adding a subdivision
to read:


new text begin Subd. 11a. new text end

new text begin Minnesota State High School League tickets and admissions. new text end

new text begin Tickets and
admissions to games, events, and activities sponsored by the Minnesota State High School
League under chapter 128C are exempt.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 14.

Minnesota Statutes 2016, section 297A.70, subdivision 12, is amended to read:


Subd. 12.

YMCA, YWCA, deleted text begin anddeleted text end JCCnew text begin , and similarnew text end memberships.

new text begin (a) new text end The sale of
memberships, meaning both onetime initiation fees and periodic membership dues, to an
association incorporated under section 315.44 or an organization defined under section
315.51, new text begin or a nonprofit organization offering similar services new text end are exempt. However, all
separate charges made for the privilege of having access to and the use of the association's
sports and athletic facilities are taxable.

new text begin (b) For purposes of this subdivision, a "nonprofit organization offering similar services"
means an organization described in section 501(c)(3) of the Internal Revenue Code, whose
mission is to support youth and families through a variety of activities, including membership
allowing access to athletic facilities, and who provide free or reduced-price memberships
to seniors or low-income persons or families.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 15.

Minnesota Statutes 2016, section 297A.70, subdivision 14, is amended to read:


Subd. 14.

Fund-raising events sponsored by nonprofit groups.

(a) Sales of tangible
personal property or services at, and admission charges for fund-raising events sponsored
by, a nonprofit organization are exempt if:

(1) all gross receipts are recorded as such, in accordance with generally accepted
accounting practices, on the books of the nonprofit organization; and

(2) the entire proceeds, less the necessary expenses for the event, will be used solely
and exclusively for charitable, religious, or educational purposes. Exempt sales include the
sale of prepared food, candy, and soft drinks at the fund-raising event.

(b) This exemption is limited in the following manner:

(1) it does not apply to admission charges for events involving bingo or other gambling
activities or to charges for use of amusement devices involving bingo or other gambling
activities;

(2) all gross receipts are taxable if the profits are not used solely and exclusively for
charitable, religious, or educational purposes;

(3) it does not apply unless the organization keeps a separate accounting record, including
receipts and disbursements from each fund-raising event that documents all deductions from
gross receipts with receipts and other records;

(4) it does not apply to any sale made by or in the name of a nonprofit corporation as
the active or passive agent of a person that is not a nonprofit corporation;

(5) all gross receipts are taxable if fund-raising events exceed 24 days per year;

(6) it does not apply to fund-raising events conducted on premises leased for more than
deleted text begin fivedeleted text end new text begin tennew text end days but less than 30 days; and

(7) it does not apply if the risk of the event is not borne by the nonprofit organization
and the benefit to the nonprofit organization is less than the total amount of the state and
local tax revenues forgone by this exemption.

(c) For purposes of this subdivision, a "nonprofit organization" means any unit of
government, corporation, society, association, foundation, or institution organized and
operated for charitable, religious, educational, civic, fraternal, and senior citizens' or veterans'
purposes, no part of the net earnings of which inures to the benefit of a private individual.

(d) For purposes of this subdivision, "fund-raising events" means activities of limited
duration, not regularly carried out in the normal course of business, that attract patrons for
community, social, and entertainment purposes, such as auctions, bake sales, ice cream
socials, block parties, carnivals, competitions, concerts, concession stands, craft sales,
bazaars, dinners, dances, door-to-door sales of merchandise, fairs, fashion shows, festivals,
galas, special event workshops, sporting activities such as marathons and tournaments, and
similar events. Fund-raising events do not include the operation of a regular place of business
in which services are provided or sales are made during regular hours such as bookstores,
thrift stores, gift shops, restaurants, ongoing Internet sales, regularly scheduled classes, or
other activities carried out in the normal course of business.

new text begin EFFECTIVE DATE. new text end

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

Sec. 16.

Minnesota Statutes 2016, section 297A.70, is amended by adding a subdivision
to read:


new text begin Subd. 20. new text end

new text begin City celebrations. new text end

new text begin (a) Sales of tangible personal property or services and
admissions charges to a city-designated annual city celebration designed to promote
community spirit and cooperation are exempt. Exempt sales include the sale of prepared
food, candy, soft drinks, malt liquor and wine as defined in section 340A.101, subdivisions
16, 19, and 27, at the event. The governing board of a statutory or home rule charter city
with a population of less than 30,000 may designate one event in each calendar year as the
annual city celebration that qualifies for the exemption under this subdivision. For a
celebration to qualify, it must meet the following requirements:
new text end

new text begin (1) the event must be held on consecutive days, not to exceed ten days in total;
new text end

new text begin (2) the event must be run either by the city or by a nonprofit organization designated by
the city;
new text end

new text begin (3) all gross receipts of the event are recorded as such, in accordance with generally
accepted accounting practice on the books of the city or the designated nonprofit organization;
and
new text end

new text begin (4) the entire proceeds, less the necessary expenses, will be distributed to one or more
of the following for charitable, educational, civic, or governmental purposes:
new text end

new text begin (i) the city's general fund;
new text end

new text begin (ii) a nonprofit 501(c)(3) organization to promote its primary mission; or
new text end

new text begin (iii) a nonprofit 501(c)(4) organization to promote its primary mission, however, no
revenues from this event may be used by the organization for lobbying or political activities.
new text end

new text begin (b) This exemption is limited in the following manner:
new text end

new text begin (1) it does not apply to admission charges for events involving bingo or other gambling
activities or to charges for use of amusement devices involving bingo or other gambling
activities;
new text end

new text begin (2) all gross receipts are taxable if the profits are not used solely and exclusively for
charitable, educational, civic, or governmental purposes; and
new text end

new text begin (3) it does not apply unless the city or designated nonprofit organization keeps a separate
accounting record, including receipts and disbursements for all events included in the
celebration that documents all deductions from gross receipts with receipts and other records.
new text end

new text begin (c) For purposes of this subdivision, "nonprofit organization" means any unit of
government, corporation, society, association, foundation, or institution organized and
operated for charitable, religious, educational, civic, fraternal, and senior citizens' or veterans'
purposes, no part of the net earnings of which inures to the benefit of a private individual.
new text end

new text begin (d) For purposes of this subdivision, "city celebration" means any of the following
activities or combination of activities of limited duration, not regularly carried out in the
normal course of business, that attract patrons for community, social, and entertainment
purposes, such as parades, auctions, bake sales, ice cream socials, block parties, carnivals,
competitions, concerts, concession stands, craft sales, bazaars, dinners, dances, fairs, fashion
shows, festivals, galas, special event workshops, sporting activities such as marathons and
tournaments, and similar events. A city celebration does not include the operation of a
regular place of business in which services are provided or sales are made during regular
hours such as bookstores, thrift stores, gift shops, restaurants, ongoing Internet sales, or
regularly scheduled activities carried out in the normal course of business.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 17.

Minnesota Statutes 2016, section 297A.70, is amended by adding a subdivision
to read:


new text begin Subd. 21. new text end

new text begin Ice arenas and rinks. new text end

new text begin Sales to organizations that exist primarily for the purpose
of operating ice arenas or rinks that are part of the Duluth Heritage Sports Center and are
used for youth and high school programs are exempt if the organization is a private, nonprofit
corporation exempt from Previous federal Next income taxation under section 501(c)(3) of the Internal
Revenue Code.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 18.

Minnesota Statutes 2016, section 297A.71, subdivision 44, is amended to read:


Subd. 44.

Building materials, capital projects.

new text begin (a) new text end Materials and supplies used or
consumed in and equipment incorporated into the construction or improvement of a capital
project funded partially or wholly under section 297A.9905 are exempt, provided that the
project has a total construction cost of at least $40,000,000 within a 24-month period.

new text begin (b) Materials and supplies used or consumed in and equipment incorporated into the
construction, remodeling, expansion, or improvement of an ice arena or other buildings or
facilities owned and operated by the city of Plymouth are exempt. For purposes of this
paragraph, "facilities" include municipal streets and facilities associated with streets including
but not limited to lighting, curbs and gutters, and sidewalks. The total amount of refund on
all building materials, supplies, and equipment that the city may apply for under this
paragraph is $2,500,000.
new text end

new text begin (c)new text end The tax on purchases exempt under this provision must be imposed and collected as
if the rate under section 297A.62, subdivision 1, applied and then refunded in the manner
provided in section 297A.75.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after January 1, 2013.
new text end

Sec. 19.

Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision
to read:


new text begin Subd. 49. new text end

new text begin Construction materials purchased by contractors; exemption for certain
entities.
new text end

new text begin (a) Building, construction, or reconstruction materials, supplies, and equipment
purchased by a contractor, subcontractor, or builder and used or consumed in or incorporated
into buildings or facilities used principally by the following entities are exempt:
new text end

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

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

new text begin (3) hospitals and nursing homes owned and operated by political subdivisions of the
state, as defined under section 297A.70, subdivision 2, paragraph (a), clause (3);
new text end

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

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

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

new text begin (7) nursing homes and boarding care homes, as defined under section 297A.70,
subdivision 18.
new text end

new text begin (b) Materials, supplies, and equipment used in the construction, reconstruction, repair,
maintenance, or improvement of public infrastructure of any kind including, but not limited
to, roads, bridges, culverts, drinking water facilities, and wastewater facilities purchased
by a contractor or subcontractor of the following entities are exempt:
new text end

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

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

new text begin (c) The tax on purchases exempt under this subdivision must be imposed and collected
as if the rate under section 297A.62, subdivision 1, applied, and then refunded in the manner
provided in section 297A.75.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 20.

Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision
to read:


new text begin Subd. 50. new text end

new text begin Properties destroyed by fire. new text end

new text begin Building materials and supplies used in, and
equipment incorporated into, the construction or replacement of real property that is located
in Madelia affected by the fire on February 3, 2016, are exempt. The tax must be imposed
and collected as if the rate under section 297A.62, subdivision 1, applied and then refunded
in the manner provided in section 297A.75.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after December 31, 2015, and before July 1, 2018.
new text end

Sec. 21.

Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision
to read:


new text begin Subd. 51. new text end

new text begin Properties destroyed by fire. new text end

new text begin (a) Building materials and supplies used in,
and equipment incorporated into, the construction or replacement of real property that is
located in Melrose affected by the fire on September 8, 2016, are exempt.
new text end

new text begin (b) For sales and purchases made after September 30, 2016, and before April 1, 2017,
the tax must be imposed and collected as if the rate under section 297A.62, subdivision 1,
applied and then refunded in the manner provided in section 297A.75.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after September 30, 2016, and before January 1, 2019, except that the refund provisions
of paragraph (b) are effective for sales and purchases made after September 30, 2016, and
before April 1, 2017.
new text end

Sec. 22.

Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision
to read:


new text begin Subd. 52. new text end

new text begin Building materials; Major League Soccer stadium. new text end

new text begin Materials and supplies
used or consumed in, and equipment incorporated into, the construction of a Major League
Soccer stadium and related infrastructure constructed in the city of St. Paul are exempt.
This subdivision expires one year after the date the first Major League Soccer game is played
in the stadium.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after the
day following final enactment.
new text end

Sec. 23.

Minnesota Statutes 2016, section 297A.75, subdivision 1, is amended to read:


Subdivision 1.

Tax collected.

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

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

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

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

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

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

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

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

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

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

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

(11) materials, supplies, and equipment for construction, improvement, or expansion
ofdeleted text begin :
deleted text end

(i) an aerospace defense manufacturing facility exempt under new text begin Minnesota Statutes 2014,
new text end section 297A.71, subdivision 42;

(ii) a biopharmaceutical manufacturing facility exempt under section 297A.71, subdivision
45
;

(iii) a research and development facility exempt under new text begin Minnesota Statutes 2014, new text end section
297A.71, subdivision 46; and

(iv) an industrial measurement manufacturing and controls facility exempt under
new text begin Minnesota Statutes 2014, new text end section 297A.71, subdivision 47;

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

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

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

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

new text begin (16) building construction or reconstruction materials, supplies, and equipment purchased
by an entity eligible under section 297A.71, subdivision 49;
new text end

new text begin (17) building materials, equipment, and supplies for constructing or replacing real
property exempt under section 297A.71, subdivision 50; and
new text end

new text begin (18) building materials, equipment, and supplies for constructing or replacing real
property exempt under section 297A.71, subdivision 51, paragraph (b).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin (a) The amendment adding clause (16) is effective for sales and
purchases made after June 30, 2017.
new text end

new text begin (b) The amendment adding clause (17) is effective retroactively for sales and purchases
made after December 31, 2015.
new text end

new text begin (c) The amendment adding clause (18) is effective retroactively for sales and purchases
made after September 30, 2016.
new text end

Sec. 24.

Minnesota Statutes 2016, section 297A.75, subdivision 2, is amended to read:


Subd. 2.

Refund; eligible persons.

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

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

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

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

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

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

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

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

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

new text begin (9) for subdivision 1, clause (16), the applicant must be the entity eligible under section
297A.71, subdivision 49;
new text end

new text begin (10) for subdivision 1, clause (17), the applicant must be the owner or developer of the
building or project; and
new text end

new text begin (11) for subdivision 1, clause (18), the applicant must be the owner or developer of the
building or project.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin (a) The amendment adding clause (9) is effective for sales and
purchases made after June 30, 2017.
new text end

new text begin (b) The amendment adding clause (10) is effective retroactively for sales and purchases
made after December 31, 2015.
new text end

new text begin (c) The amendment adding clause (11) is effective retroactively for sales and purchases
made after September 30, 2016.
new text end

Sec. 25.

Minnesota Statutes 2016, section 297A.75, subdivision 3, is amended to read:


Subd. 3.

Application.

(a) The application must include sufficient information to permit
the commissioner to verify the tax paid. If the tax was paid by a contractor, subcontractor,
or builder, under subdivision 1, clauses (3) to (13), deleted text begin ordeleted text end (15), new text begin (16), (17), or (18), new text end the contractor,
subcontractor, or builder must furnish to the refund applicant a statement including the cost
of the exempt items and the taxes paid on the items unless otherwise specifically provided
by this subdivision. The provisions of sections 289A.40 and 289A.50 apply to refunds under
this section.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 26.

Minnesota Statutes 2016, section 297A.75, subdivision 5, is amended to read:


Subd. 5.

Appropriation.

new text begin (a) new text end The amount required to make the refunds is annually
appropriated to the commissioner.

new text begin (b) For fiscal years 2018 and 2019 only, revenues dedicated under the Minnesota
Constitution, article XI, section 15, shall not be reduced for any portion of the refunds paid
for the following exemptions:
new text end

new text begin (1) the exemption under section 297A.71, subdivision 44, paragraph (b);
new text end

new text begin (2) the expansion of the exemption under section 297A.68, subdivision 44, due to section
30; and
new text end

new text begin (3) the exemptions in section 297A.71, subdivisions 49, 50, and 51.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 27.

Minnesota Statutes 2016, section 297A.94, is amended to read:


297A.94 DEPOSIT OF REVENUES.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

new text begin (3) the remainder to the general fund.
new text end

new text begin For purposes of this paragraph, the percentage of total sales and use tax revenue derived
from the sale of items regulated under section 624.20, subdivision 1, that are allowed to be
sold to persons 18 years old or older and are not prohibited from use by the general public
under section 624.21, is a set percentage of the total sales and use tax revenues collected in
the state, with the percentage determined under section 28.
new text end

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
December 31, 2017.
new text end

Sec. 28. new text begin CALCULATION OF THE PERCENT OF SALES TAX REVENUE
ATTRIBUTABLE TO THE SALE OF CERTAIN FIREWORKS-RELATED ITEMS.
new text end

new text begin By December 1, 2017, the commissioner of revenue must estimate the percentage of
total sales tax revenues collected in calendar year 2016 that is attributable to the sales and
purchases of items regulated under Minnesota Statutes, section 624.20, subdivision 1, that
are allowed to be sold to persons 18 years old or older and that are not prohibited from use
by the general public under section 624.21. When making the determination, the
commissioner may consult with representatives from producers and retailers, industry trade
groups, and the most recently available national and state information. The commissioner's
decision is final. The commissioner's determination under this section is not a rule and is
not subject to Minnesota Statutes, chapter 14, including section 14.386.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 29. new text begin SALES TAX EXEMPTION FOR CONSTRUCTION MATERIALS USED
BY A NONPROFIT ECONOMIC DEVELOPMENT CORPORATION.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin Materials and supplies used or consumed in and
equipment incorporated into the construction of a retail development consisting of retail
space for a grocery store, fueling center, or other retail space by a nonprofit economic
development corporation that is a 501(c)(3) organization are exempt from sales and use tax
under Minnesota Statutes, chapter 297A, provided that the development is located in a city
with no grocery store and the city is at least 20 miles from another city with a grocery store.
The exemption applies to materials, supplies, and equipment purchased after January 1,
2013, and before January 1, 2017. The tax must be imposed and collected as if the rate in
Minnesota Statutes, section 297A.62, applied and the nonprofit economic development
corporation must apply for the refund of the tax in the same manner as provided under
Minnesota Statutes, section 297A.75, subdivision 1, clause (11).
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin The amount required to pay the refunds under subdivision 1
is appropriated from the general fund to the commissioner of revenue.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies retroactively to sales and purchases made after January 1, 2013, and before January
1, 2017.
new text end

Sec. 30. new text begin EXEMPTION FROM JOB EXPANSION PROGRAM PROVISIONS.
new text end

new text begin (a) Notwithstanding the seven-year certification period under Minnesota Statutes, section
116J.8738, subdivision 3, the certification period for an eligible wholesale electronic
component distribution center investing a minimum of $200,000,000 and constructing a
facility at least 700,000 square feet in size is effective for the ten-year period beginning on
the first day of the calendar month immediately following the date that the commissioner
informs the business of the award of the benefit.
new text end

new text begin (b) Notwithstanding the sales tax exemption limitations under Minnesota Statutes, section
116J.8738, subdivision 4, the sales tax exemption for an eligible electronic component
distribution center investing a minimum of $200,000,000 and constructing a facility at least
700,000 square feet in size may be authorized up to $5,000,000 annually and up to
$30,000,000 during the total period of the agreement.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 31. new text begin CERTAIN REIMBURSEMENT AUTHORIZED; CONSIDERED
OPERATING OR CAPITAL EXPENSES.
new text end

new text begin Subdivision 1. new text end

new text begin Reimbursement authorized. new text end

new text begin (a) An amount equivalent to the taxes paid
under Minnesota Statutes, chapter 297A, and any local taxes administered by the Department
of Revenue, on purchases of tangible personal property, nonresidential parking services,
and lodging, as these terms are defined in Minnesota Statutes, chapter 297A, used and
consumed in connection with Super Bowl LII or related events sponsored by the National
Football League or its affiliates, will be reimbursed by the Minnesota Sports Facilities
Authority up to $1,600,000, if made after June 30, 2016, and before March 1, 2018. Only
purchases made by the Minnesota Super Bowl Host Committee, the National Football
League or its affiliates, or their employees or independent contractors, qualify to be
reimbursed under this section.
new text end

new text begin (b) For purposes of this subdivision:
new text end

new text begin (1) "employee or independent contractor" means only those employees or independent
contractors that make qualifying purchases that are reimbursed by the Minnesota Super
Bowl Host Committee or the National Football League or its affiliates; and
new text end

new text begin (2) "related events sponsored by the National Football League or its affiliates" includes
but is not limited to preparatory advance visits, NFL Experience, NFL Tailgate, NFL Honors,
and NFL House.
new text end

new text begin Subd. 2. new text end

new text begin Operating reserve and capital reserve fund. new text end

new text begin Notwithstanding the requirements
of Minnesota Statutes, section 473J.13, subdivisions 2 and 4, up to $1,600,000 of the balance
in the operating reserve or capital reserve fund may be used for the purposes of paying
reimbursements authorized under subdivision 1.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after June
30, 2016, and before March 1, 2018.
new text end

Sec. 32. new text begin REIMBURSEMENTS TO CERTAIN CONSTITUTIONALLY DEDICATED
FUNDS FOR EXPANDED SALES TAX EXEMPTIONS.
new text end

new text begin The commissioner of management and budget, by June 15 in fiscal years 2018 and 2019
only, shall increase the revenues transferred from the general fund as required under the
Minnesota Constitution, article XI, section 15, an amount equal to the estimated amount of
reduction to these revenues for that fiscal year due to the enactment of new sales tax
exemptions or the expansion of existing sales tax exemptions under sections 7, 8, 10 to 17,
and 22, and to changes in tobacco taxes under Minnesota Statutes, chapter 297F, in article
10. The commissioner of revenue shall make the estimate of this revenue reduction by June
1 of each fiscal year and inform the commissioner of management and budget. The
appropriations under this section are onetime and not added to the base budget.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 33. new text begin REPORT ON TAXATION OF STADIUM SUITES.
new text end

new text begin The commissioner of revenue shall prepare a report on the sales and use tax treatment
of the sale of suites and suite licenses in professional athletic facilities in other states. The
report must be completed on or before February 1, 2018, and provided to the chairs and
ranking minority members of the legislative committees with jurisdiction over taxes. The
purpose of the report is to determine the range of sales and use tax treatment of these items
across the country, and how Minnesota's current tax treatment of suites and suite licenses
fits into that range.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 34. new text begin SEVERABILITY.
new text end

new text begin If any provision of sections 3 to 6 or the application thereof is held invalid, such invalidity
shall not affect the provisions or applications of the sections that can be given effect without
the invalid provisions or applications.
new text end

new text begin EFFECTIVE DATE. new text end

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

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

new text begin $1,392,258 in fiscal year 2018 is appropriated from the general fund to the commissioner
of revenue for a grant to the city of Melrose for the following purposes:
new text end

new text begin (1) $450,000 for municipal street and utility reconstruction;
new text end

new text begin (2) $250,000 for unreimbursed costs of hazardous materials removal; and
new text end

new text begin (3) $692,258 for tax abatements for reconstructed buildings.
new text end

new text begin The appropriation under this section is onetime and is not added to the base budget.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 36. new text begin EFFECTIVE DATE.
new text end

new text begin (a) The provisions of sections 3 to 6 are effective at the earlier of:
new text end

new text begin (1) a decision by the United States Supreme Court modifying its decision in Quill Corp.
v. North Dakota, 504 U.S. 298 (1992) so that a state may require retailers without a physical
presence in the state to collect and remit sales tax; or
new text end

new text begin (2) July 1, 2020.
new text end

new text begin (b) Notwithstanding paragraph (a) or the provisions of sections 3 to 6, if a Previous federal Next law
is enacted authorizing a state to impose a requirement to collect and remit sales tax on
retailers without a physical presence in the state, the commissioner must enforce the
provisions of this section and sections 3 to 6 to the extent allowed under Previous federal Next law.
new text end

new text begin (c) The commissioner of revenue shall notify the revisor of statutes when either of the
provisions in paragraph (a) or (b) apply.
new text end

ARTICLE 5

AIDS, CREDITS, AND REFUNDS

Section 1.

Minnesota Statutes 2016, section 127A.45, subdivision 10, is amended to read:


Subd. 10.

Payments to school nonoperating funds.

Each fiscal year state general fund
payments for a district nonoperating fund must be made at the current year aid payment
percentage of the estimated entitlement during the fiscal year of the entitlement. This amount
shall be paid in deleted text begin 12deleted text end new text begin sixnew text end equal monthly installmentsnew text begin beginning in Julynew text end . The amount of the
actual entitlement, after adjustment for actual data, minus the payments made during the
fiscal year of the entitlement must be paid prior to October 31 of the following school year.
The commissioner may make advance payments of debt service equalization aid and
state-paid tax credits for a district's debt service fund earlier than would occur under the
preceding schedule if the district submits evidence showing a serious cash flow problem in
the fund. The commissioner may make earlier payments during the year and, if necessary,
increase the percent of the entitlement paid to reduce the cash flow problem.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with fiscal year 2019.
new text end

Sec. 2.

Minnesota Statutes 2016, section 127A.45, subdivision 13, is amended to read:


Subd. 13.

Aid payment percentage.

Except as provided in subdivisions new text begin 10, new text end 11, 12, 12a,
and 14, each fiscal year, all education aids and credits in this chapter and chapters 120A,
120B, 121A, 122A, 123A, 123B, 124D, 124E, 125A, 125B, 126C, 134, and section 273.1392,
shall be paid at the current year aid payment percentage of the estimated entitlement during
the fiscal year of the entitlement. For the purposes of this subdivision, a district's estimated
entitlement for special education aid under section 125A.76 for fiscal year 2014 and later
equals 97.4 percent of the district's entitlement for the current fiscal year. The final adjustment
payment, according to subdivision 9, must be the amount of the actual entitlement, after
adjustment for actual data, minus the payments made during the fiscal year of the entitlement.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with fiscal year 2019.
new text end

Sec. 3.

new text begin [273.1387] SCHOOL BUILDING BOND AGRICULTURAL CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Eligibility. new text end

new text begin All class 2a, 2b, and 2c property under section 273.13,
subdivision 23, other than property consisting of the house, garage, and immediately
surrounding one acre of land of an agricultural homestead, is eligible to receive the credit
under this section.
new text end

new text begin Subd. 2. new text end

new text begin Credit amount. new text end

new text begin For each qualifying property, the school building bond
agricultural credit is equal to 50 percent of the property's eligible net tax capacity multiplied
by the school debt tax rate determined under section 275.08, subdivision 1b.
new text end

new text begin Subd. 3. new text end

new text begin Credit reimbursements. new text end

new text begin The county auditor shall determine the tax reductions
allowed under this section within the county for each taxes payable year and shall certify
that amount to the commissioner of revenue as a part of the abstracts of tax lists submitted
under section 275.29. Any prior year adjustments shall also be certified on the abstracts of
tax lists. The commissioner shall review the certifications for accuracy, and may make such
changes as are deemed necessary, or return the certification to the county auditor for
correction. The credit under this section must be used to reduce the school district net tax
capacity-based property tax as provided in section 273.1393.
new text end

new text begin Subd. 4. new text end

new text begin Payment. new text end

new text begin The commissioner of revenue shall certify the total of the tax
reductions granted under this section for each taxes payable year within each school district
to the commissioner of education, who shall pay the reimbursement amounts to each school
district as provided in section 273.1392.
new text end

new text begin Subd. 5. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to make the payments required by this
section is annually appropriated from the general fund to the commissioner of education.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2018.
new text end

Sec. 4.

Minnesota Statutes 2016, section 273.1392, is amended to read:


273.1392 PAYMENT; SCHOOL DISTRICTS.

The amounts of bovine tuberculosis credit reimbursements under section 273.113;
conservation tax credits under section 273.119; disaster or emergency reimbursement under
sections 273.1231 to 273.1235; deleted text begin homestead anddeleted text end agricultural credits under deleted text begin sectiondeleted text end new text begin sectionsnew text end
273.1384new text begin and 273.1387new text end ; aids and credits under section 273.1398; enterprise zone property
credit payments under section 469.171; and metropolitan agricultural preserve reduction
under section 473H.10 for school districts, shall be certified to the Department of Education
by the Department of Revenue. The amounts so certified shall be paid according to section
127A.45, subdivisions 9new text begin , 10,new text end and 13.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2018.
new text end

Sec. 5.

Minnesota Statutes 2016, section 273.1393, is amended to read:


273.1393 COMPUTATION OF NET PROPERTY TAXES.

Notwithstanding any other provisions to the contrary, "net" property taxes are determined
by subtracting the credits in the order listed from the gross tax:

(1) disaster credit as provided in sections 273.1231 to 273.1235;

(2) powerline credit as provided in section 273.42;

(3) agricultural preserves credit as provided in section 473H.10;

(4) enterprise zone credit as provided in section 469.171;

(5) disparity reduction credit;

(6) conservation tax credit as provided in section 273.119;

(7) new text begin the school bond credit as provided in section 273.1387;
new text end

new text begin (8) new text end agricultural credit as provided in section 273.1384;

deleted text begin (8)deleted text end new text begin (9)new text end taconite homestead credit as provided in section 273.135;

deleted text begin (9)deleted text end new text begin (10)new text end supplemental homestead credit as provided in section 273.1391; and

deleted text begin (10)deleted text end new text begin (11)new text end the bovine tuberculosis zone credit, as provided in section 273.113.

The combination of all property tax credits must not exceed the gross tax amount.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2018.
new text end

Sec. 6.

Minnesota Statutes 2016, section 275.065, subdivision 3, is amended to read:


Subd. 3.

Notice of proposed property taxes.

(a) The county auditor shall prepare and
the county treasurer shall deliver after November 10 and on or before November 24 each
year, by first class mail to each taxpayer at the address listed on the county's current year's
assessment roll, a notice of proposed property taxes. Upon written request by the taxpayer,
the treasurer may send the notice in electronic form or by electronic mail instead of on paper
or by ordinary mail.

(b) The commissioner of revenue shall prescribe the form of the notice.

(c) The notice must inform taxpayers that it contains the amount of property taxes each
taxing authority proposes to collect for taxes payable the following year. In the case of a
town, or in the case of the state general tax, the final tax amount will be its proposed tax.
The notice must clearly state for each city that has a population over 500, county, school
district, regional library authority established under section 134.201, and metropolitan taxing
districts as defined in paragraph (i), the time and place of a meeting for each taxing authority
in which the budget and levy will be discussed and public input allowed, prior to the final
budget and levy determination. The taxing authorities must provide the county auditor with
the information to be included in the notice on or before the time it certifies its proposed
levy under subdivision 1. The public must be allowed to speak at that meeting, which must
occur after November 24 and must not be held before 6:00 p.m. It must provide a telephone
number for the taxing authority that taxpayers may call if they have questions related to the
notice and an address where comments will be received by mail, except that no notice
required under this section shall be interpreted as requiring the printing of a personal
telephone number or address as the contact information for a taxing authority. If a taxing
authority does not maintain public offices where telephone calls can be received by the
authority, the authority may inform the county of the lack of a public telephone number and
the county shall not list a telephone number for that taxing authority.

(d) The notice must state for each parcel:

(1) the market value of the property as determined under section 273.11, and used for
computing property taxes payable in the following year and for taxes payable in the current
year as each appears in the records of the county assessor on November 1 of the current
year; and, in the case of residential property, whether the property is classified as homestead
or nonhomestead. The notice must clearly inform taxpayers of the years to which the market
values apply and that the values are final values;

(2) the items listed below, shown separately by county, city or town, and state general
tax, agricultural homestead credit under section 273.1384, new text begin school building bond agricultural
credit under section 273.1387,
new text end voter approved school levy, other local school levy, and the
sum of the special taxing districts, and as a total of all taxing authorities:

(i) the actual tax for taxes payable in the current year; and

(ii) the proposed tax amount.

If the county levy under clause (2) includes an amount for a lake improvement district
as defined under sections 103B.501 to 103B.581, the amount attributable for that purpose
must be separately stated from the remaining county levy amount.

In the case of a town or the state general tax, the final tax shall also be its proposed tax
unless the town changes its levy at a special town meeting under section 365.52. If a school
district has certified under section 126C.17, subdivision 9, that a referendum will be held
in the school district at the November general election, the county auditor must note next
to the school district's proposed amount that a referendum is pending and that, if approved
by the voters, the tax amount may be higher than shown on the notice. In the case of the
city of Minneapolis, the levy for Minneapolis Park and Recreation shall be listed separately
from the remaining amount of the city's levy. In the case of the city of St. Paul, the levy for
the St. Paul Library Agency must be listed separately from the remaining amount of the
city's levy. In the case of Ramsey County, any amount levied under section 134.07 may be
listed separately from the remaining amount of the county's levy. In the case of a parcel
where tax increment or the fiscal disparities areawide tax under chapter 276A or 473F
applies, the proposed tax levy on the captured value or the proposed tax levy on the tax
capacity subject to the areawide tax must each be stated separately and not included in the
sum of the special taxing districts; and

(3) the increase or decrease between the total taxes payable in the current year and the
total proposed taxes, expressed as a percentage.

For purposes of this section, the amount of the tax on homesteads qualifying under the
senior citizens' property tax deferral program under chapter 290B is the total amount of
property tax before subtraction of the deferred property tax amount.

(e) The notice must clearly state that the proposed or final taxes do not include the
following:

(1) special assessments;

(2) levies approved by the voters after the date the proposed taxes are certified, including
bond referenda and school district levy referenda;

(3) a levy limit increase approved by the voters by the first Tuesday after the first Monday
in November of the levy year as provided under section 275.73;

(4) amounts necessary to pay cleanup or other costs due to a natural disaster occurring
after the date the proposed taxes are certified;

(5) amounts necessary to pay tort judgments against the taxing authority that become
final after the date the proposed taxes are certified; and

(6) the contamination tax imposed on properties which received market value reductions
for contamination.

(f) Except as provided in subdivision 7, failure of the county auditor to prepare or the
county treasurer to deliver the notice as required in this section does not invalidate the
proposed or final tax levy or the taxes payable pursuant to the tax levy.

(g) If the notice the taxpayer receives under this section lists the property as
nonhomestead, and satisfactory documentation is provided to the county assessor by the
applicable deadline, and the property qualifies for the homestead classification in that
assessment year, the assessor shall reclassify the property to homestead for taxes payable
in the following year.

(h) In the case of class 4 residential property used as a residence for lease or rental
periods of 30 days or more, the taxpayer must either:

(1) mail or deliver a copy of the notice of proposed property taxes to each tenant, renter,
or lessee; or

(2) post a copy of the notice in a conspicuous place on the premises of the property.

The notice must be mailed or posted by the taxpayer by November 27 or within three
days of receipt of the notice, whichever is later. A taxpayer may notify the county treasurer
of the address of the taxpayer, agent, caretaker, or manager of the premises to which the
notice must be mailed in order to fulfill the requirements of this paragraph.

(i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing
districts" means the following taxing districts in the seven-county metropolitan area that
levy a property tax for any of the specified purposes listed below:

(1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 473.446,
473.521, 473.547, or 473.834;

(2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; and

(3) Metropolitan Mosquito Control Commission under section 473.711.

For purposes of this section, any levies made by the regional rail authorities in the county
of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A
shall be included with the appropriate county's levy.

(j) The governing body of a county, city, or school district may, with the consent of the
county board, include supplemental information with the statement of proposed property
taxes about the impact of state aid increases or decreases on property tax increases or
decreases and on the level of services provided in the affected jurisdiction. This supplemental
information may include information for the following year, the current year, and for as
many consecutive preceding years as deemed appropriate by the governing body of the
county, city, or school district. It may include only information regarding:

(1) the impact of inflation as measured by the implicit price deflator for state and local
government purchases;

(2) population growth and decline;

(3) state or Previous federal Next government action; and

(4) other financial factors that affect the level of property taxation and local services
that the governing body of the county, city, or school district may deem appropriate to
include.

The information may be presented using tables, written narrative, and graphic
representations and may contain instruction toward further sources of information or
opportunity for comment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2018.
new text end

Sec. 7.

Minnesota Statutes 2016, section 275.07, subdivision 2, is amended to read:


Subd. 2.

School district deleted text begin in more than one countydeleted text end new text begin levies; special requirementsnew text end .

new text begin (a) new text end In
school districts lying in more than one county, the clerk shall certify the tax levied to the
auditor of the county in which the Previous administrative Next offices of the school district are located.

new text begin (b) The district must identify the portion of the school district levy that is levied for debt
service at the time the levy is certified under this section. For the purposes of this paragraph,
"levied for debt service" means levies authorized under sections 123B.53, 123B.535, and
123B.55, as adjusted by sections 126C.46 and 126C.48, net of any debt excess levy reductions
under section 475.61, subdivision 4, excluding debt service amounts necessary for repayment
of other postemployment benefits under section 475.52, subdivision 6.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2018.
new text end

Sec. 8.

Minnesota Statutes 2016, section 275.08, subdivision 1b, is amended to read:


Subd. 1b.

Computation of tax rates.

new text begin (a) new text end The amounts certified to be levied against net
tax capacity under section 275.07 by an individual local government unit shall be divided
by the total net tax capacity of all taxable properties within the local government unit's
taxing jurisdiction. The resulting ratio, the local government's local tax rate, multiplied by
each property's net tax capacity shall be each property's net tax capacity tax for that local
government unit before reduction by any credits.

new text begin (b) The auditor must also determine the school debt tax rate for each school district equal
to (1) the school debt service levy certified under section 275.07, subdivision 2, divided by
(2) the total net tax capacity of all taxable property within the district.
new text end

new text begin (c) new text end Any amount certified to the county auditor to be levied against market value shall
be divided by the total referendum market value of all taxable properties within the taxing
district. The resulting ratio, the taxing district's new referendum tax rate, multiplied by each
property's referendum market value shall be each property's new referendum tax before
reduction by any credits. For the purposes of this subdivision, "referendum market value"
means the market value as defined in section 126C.01, subdivision 3.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2018.
new text end

Sec. 9.

Minnesota Statutes 2016, section 276.04, subdivision 2, is amended to read:


Subd. 2.

Contents of tax statements.

(a) The treasurer shall provide for the printing of
the tax statements. The commissioner of revenue shall prescribe the form of the property
tax statement and its contents. The tax statement must not state or imply that property tax
credits are paid by the state of Minnesota. The statement must contain a tabulated statement
of the dollar amount due to each taxing authority and the amount of the state tax from the
parcel of real property for which a particular tax statement is prepared. The dollar amounts
attributable to the county, the state tax, the voter approved school tax, the other local school
tax, the township or municipality, and the total of the metropolitan special taxing districts
as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated. The
amounts due all other special taxing districts, if any, may be aggregated except that any
levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, Hennepin,
Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate line directly
under the appropriate county's levy. If the county levy under this paragraph includes an
amount for a lake improvement district as defined under sections 103B.501 to 103B.581,
the amount attributable for that purpose must be separately stated from the remaining county
levy amount. In the case of Ramsey County, if the county levy under this paragraph includes
an amount for public library service under section 134.07, the amount attributable for that
purpose may be separated from the remaining county levy amount. The amount of the tax
on homesteads qualifying under the senior citizens' property tax deferral program under
chapter 290B is the total amount of property tax before subtraction of the deferred property
tax amount. The amount of the tax on contamination value imposed under sections 270.91
to 270.98, if any, must also be separately stated. The dollar amounts, including the dollar
amount of any special assessments, may be rounded to the nearest even whole dollar. For
purposes of this section whole odd-numbered dollars may be adjusted to the next higher
even-numbered dollar. The amount of market value excluded under section 273.11,
subdivision 16
, if any, must also be listed on the tax statement.

(b) The property tax statements for manufactured homes and sectional structures taxed
as personal property shall contain the same information that is required on the tax statements
for real property.

(c) Real and personal property tax statements must contain the following information
in the order given in this paragraph. The information must contain the current year tax
information in the right column with the corresponding information for the previous year
in a column on the left:

(1) the property's estimated market value under section 273.11, subdivision 1;

(2) the property's homestead market value exclusion under section 273.13, subdivision
35;

(3) the property's taxable market value under section 272.03, subdivision 15;

(4) the property's gross tax, before credits;

(5) for deleted text begin homesteaddeleted text end agricultural properties, the deleted text begin creditdeleted text end new text begin creditsnew text end under deleted text begin sectiondeleted text end new text begin sectionsnew text end
273.1384new text begin and 273.1387new text end ;

(6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135;
273.1391; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of credit
received under section 273.135 must be separately stated and identified as "taconite tax
relief"; and

(7) the net tax payable in the manner required in paragraph (a).

(d) If the county uses envelopes for mailing property tax statements and if the county
agrees, a taxing district may include a notice with the property tax statement notifying
taxpayers when the taxing district will begin its budget deliberations for the current year,
and encouraging taxpayers to attend the hearings. If the county allows notices to be included
in the envelope containing the property tax statement, and if more than one taxing district
relative to a given property decides to include a notice with the tax statement, the county
treasurer or auditor must coordinate the process and may combine the information on a
single announcement.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2018.
new text end

Sec. 10.

Minnesota Statutes 2016, section 290A.03, subdivision 11, is amended to read:


Subd. 11.

Rent constituting property taxes.

new text begin (a) new text end "Rent constituting property taxes"
means deleted text begin 17 percentdeleted text end new text begin a percentagenew text end of the gross rent actually paid in cash, or its equivalent, or
the portion of rent paid in lieu of property taxes, in any calendar year by a claimant for the
right of occupancy of the claimant's Minnesota homestead in the calendar year, and which
rent constitutes the basis, in the succeeding calendar year of a claim for relief under this
chapter by the claimant.

new text begin (b) The percentage in paragraph (a) is set by major geographic regions as follows:
new text end

new text begin (1) for the city of Minneapolis, 16.5 percent;
new text end

new text begin (2) for the city of St. Paul, 14 percent;
new text end

new text begin (3) for the counties of Anoka; Dakota; Hennepin, excluding the city of Minneapolis;
and Ramsey, excluding the city of St. Paul, 15 percent; and
new text end

new text begin (4) for the remainder of the state, 14 percent.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for refunds based on rent paid in 2017
and following years.
new text end

Sec. 11.

Minnesota Statutes 2016, section 290A.03, subdivision 13, is amended to read:


Subd. 13.

Property taxes payable.

"Property taxes payable" means the property tax
exclusive of special assessments, penalties, and interest payable on a claimant's homestead
after deductions made under sections 273.135, 273.1384, 273.1391, 273.42, subdivision 2,
and any other state paid property tax credits in any calendar year, and after any refund
claimed and allowable under section 290A.04, subdivision 2h, that is first payable in the
year that the property tax is payable. In the case of a claimant who makes ground lease
payments, "property taxes payable" includes the amount of the payments directly attributable
to the property taxes assessed against the parcel on which the house is located. No
apportionment or reduction of the "property taxes payable" shall be required for the use of
a portion of the claimant's homestead for a business purpose if the claimant does not deduct
any business depreciation expenses for the use of a portion of the homestead in the
determination of Previous federal Next adjusted gross income. For homesteads which are manufactured
homes as defined in section 273.125, subdivision 8, and for homesteads which are park
trailers taxed as manufactured homes under section 168.012, subdivision 9, "property taxes
payable" shall also include deleted text begin 17 percentdeleted text end new text begin a percentagenew text end of the gross rent paid in the preceding
year for the site on which the homestead is located. new text begin The percentage equals the percentage
set under subdivision 11 for the geographic region in which the homestead is located.
new text end When
a homestead is owned by two or more persons as joint tenants or tenants in common, such
tenants shall determine between them which tenant may claim the property taxes payable
on the homestead. If they are unable to agree, the matter shall be referred to the commissioner
of revenue whose decision shall be final. Property taxes are considered payable in the year
prescribed by law for payment of the taxes.

In the case of a claim relating to "property taxes payable," the claimant must have owned
and occupied the homestead on January 2 of the year in which the tax is payable and (i) the
property must have been classified as homestead property pursuant to section 273.124, on
or before December 15 of the assessment year to which the "property taxes payable" relate;
or (ii) the claimant must provide documentation from the local assessor that application for
homestead classification has been made on or before December 15 of the year in which the
"property taxes payable" were payable and that the assessor has approved the application.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for refunds based on rent paid in 2017
and following years.
new text end

Sec. 12.

Minnesota Statutes 2016, section 469.169, is amended by adding a subdivision
to read:


new text begin Subd. 20. new text end

new text begin Additional border city allocations. new text end

new text begin (a) In addition to the tax reductions
authorized in subdivisions 12 to 19, the commissioner shall allocate $3,000,000 for tax
reductions to border city enterprise zones in cities located on the western border of the state.
The commissioner shall allocate this amount among cities on a per capita basis. Allocations
under this subdivision may be used for tax reductions under sections 469.171, 469.1732,
and 469.1734, or for other offsets of taxes imposed on or remitted by businesses located in
the enterprise zone, but only if the municipality determines that the granting of the tax
reduction or offset is necessary to retain a business within or attract a business to the zone.
new text end

new text begin (b) The allocations under this subdivision do not cancel or expire, but remain available
until used by the city.
new text end

Sec. 13.

Minnesota Statutes 2016, section 477A.011, subdivision 34, is amended to read:


Subd. 34.

City revenue need.

(a) For a city with a population equal to or greater than
10,000, "city revenue need" is 1.15 times the sum of (1) 4.59 times the pre-1940 housing
percentage; plus (2) 0.622 times the percent of housing built between 1940 and 1970; plus
(3) 169.415 times the jobs per capita; plus (4) the sparsity adjustment; plus (5) 307.664.

(b) For a city with a population equal to or greater than 2,500 and less than 10,000, "city
revenue need" is 1.15 times the sum of (1) 572.62; plus (2) 5.026 times the pre-1940 housing
percentage; minus (3) 53.768 times household size; plus (4) 14.022 times peak population
declinenew text begin ; plus (5) the sparsity adjustmentnew text end .

(c) For a city with a population less than 2,500, "city revenue need" is the sum ofnew text begin (1) new text end
410 plusnew text begin ; (2)new text end 0.367 times the city's population over 100new text begin ; plus (3) the sparsity adjustmentnew text end .
The city revenue need new text begin for a city new text end under this paragraph shall not exceed 630new text begin plus the city's
sparsity adjustment
new text end .

(d) For a city with a population of at least 2,500 but less than 3,000, the "city revenue
need" equals (1) the transition factor times the city's revenue need calculated in paragraph
(b); plus (2) 630 times the difference between one and the transition factor. For a city with
a population of at least 10,000 but less than deleted text begin 10,500deleted text end new text begin 11,000new text end , the "city revenue need" equals
(1) the transition factor times the city's revenue need calculated in paragraph (a); plus (2)
the city's revenue need calculated under the formula in paragraph (b) times the difference
between one and the transition factor. For purposes of new text begin the first sentence ofnew text end this paragraph
"transition factor" is 0.2 percent times the amount that the city's population exceeds the
deleted text begin minimum threshold in either of the first two sentencesdeleted text end .new text begin For purposes of the second sentence
of this paragraph, "transition factor" is 0.1 percent times the amount that the city's population
exceeds the minimum threshold.
new text end

(e) The city revenue need cannot be less than zero.

(f) For calendar year 2015 and subsequent years, the city revenue need for a city, as
determined in paragraphs (a) to (e), is multiplied by the ratio of the annual implicit price
deflator for government consumption expenditures and gross investment for state and local
governments as prepared by the United States Department of Commerce, for the most
recently available year to the 2013 implicit price deflator for state and local government
purchases.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2018
and thereafter.
new text end

Sec. 14.

Minnesota Statutes 2016, section 477A.011, subdivision 45, is amended to read:


Subd. 45.

Sparsity adjustment.

For a city with a population of 10,000 or more, the
sparsity adjustment is 100 for any city with an average population density less than 150 per
square mile, according to the most recent Previous federal Next censusdeleted text begin , anddeleted text end new text begin . For a city with a population
less than 10,000, the sparsity adjustment is 200 for any city with an average population
density less than 30 per square mile, according to the most recent Previous federal Next census.
new text end The sparsity
adjustment is zero for all other cities.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2018
and thereafter.
new text end

Sec. 15.

new text begin [477A.0126] REIMBURSEMENT OF COUNTY AND TRIBES FOR
CERTAIN OUT-OF-HOME PLACEMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For purposes of this section, "out-of-home placement" means
24-hour substitute care for an Indian child as defined by section 260C.007, subdivision 21,
placed under chapter 260C and the Indian Child Welfare Act (ICWA), away from the child's
parent or guardian and for whom the county social services agency or county correctional
agency has been assigned responsibility for the child's placement and care, which includes
placement in foster care under section 260C.007, subdivision 18, and a correctional facility
pursuant to a court order.
new text end

new text begin Subd. 2. new text end

new text begin Determination of nonfederal share of costs. new text end

new text begin (a) By July 1, 2017, each county
shall report the following information to the commissioners of human services and
corrections:
new text end

new text begin (1) the separate amounts paid out of the county's social service agency and its corrections
budget for out-of-home placement of children under the ICWA in calendar years 2013,
2014, and 2015; and
new text end

new text begin (2) the number of case days associated with the expenditures from each budget.
new text end

new text begin The commissioner of human services shall prescribe the format of the report. By July 15,
2017, the commissioner of human services, in consultation with the commissioner of
corrections, shall certify to the commissioner of revenue and to the legislative committees
with jurisdiction over local government aids and out-of-home placement funding whether
the data reported under this subdivision accurately reflect total expenditures by counties for
out-of-home placement costs of children under the ICWA.
new text end

new text begin (b) By January 1, 2018, and each January 1 thereafter, each county shall report to the
commissioners of human services and corrections the separate amounts paid out of the
county's social service agency and its corrections budget for out-of-home placement of
children under the ICWA in the calendar years two years before the current calendar year
along with the number of case days associated with the expenditures from each budget. The
commissioner of human services shall prescribe the format of the report.
new text end

new text begin (c) Until the commissioner of human services develops another mechanism for collecting
and verifying data on out-of-home placements of children under the ICWA, and the
legislature authorizes the use of that data, the data collected under this subdivision must be
used to calculate payments under subdivision 3. The commissioner of human services shall
certify the nonfederal out-of-home placement costs for the three prior calendar years for
each county and the amount of any Previous federal Next reimbursement received by a tribe under the
ICWA for the three prior calendar years to the commissioner of revenue by June 1 of the
year before the aid payment.
new text end

new text begin Subd. 3. new text end

new text begin Aid for counties. new text end

new text begin For aids payable in calendar year 2018 and thereafter, the
amount of reimbursement to each county is a county's proportionate share of the appropriation
in subdivision 6 that remains after the aid for tribes has been paid. Each county's
proportionate share is based on the county's average nonfederal share of the cost for
out-of-home placement of children under the ICWA for the three calendar years that were
certified by the commissioner of human services by June 1 of the prior year, provided that
the commissioner of human services, in consultation with the commissioner of corrections,
certifies to the commissioner of revenue that accurate data are available to make the aid
determination under this section. For aids payable in calendar year 2018, each county's
proportionate share is based on the county's nonfederal share of the cost for out-of-home
placement of children under the ICWA that was certified by the commissioner of human
services by July 15, 2017.
new text end

new text begin Subd. 4. new text end

new text begin Aid for tribes. new text end

new text begin For aids payable in 2018 and thereafter, the amount of
reimbursement to each tribe shall be the greater of:
new text end

new text begin (1) five percent of the average reimbursement amount received from the Previous federal Next
government for out-of-home placement costs for the three calendar years that were certified
by June 1 of the prior year; or
new text end

new text begin (2) $200,000.
new text end

new text begin Subd. 5. new text end

new text begin Payments. new text end

new text begin The commissioner of revenue must compute the amount of the
reimbursement aid payable to each county and tribe under this section. On or before August
1 of each year, the commissioner shall certify the amount to be paid to each county and
tribe in the following year. The commissioner shall pay reimbursement aid annually at the
times provided in section 477A.015.
new text end

new text begin Subd. 6. new text end

new text begin Appropriation. new text end

new text begin $10,000,000 is annually appropriated to the commissioner of
revenue from the general fund to pay aid under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with aids payable in 2018.
new text end

Sec. 16.

Minnesota Statutes 2016, section 477A.013, subdivision 8, is amended to read:


Subd. 8.

City formula aid.

(a) For aids payable in deleted text begin 2015deleted text end new text begin 2018new text end and thereafter, the formula
aid for a city is equal to deleted text begin the sum of (1) its formula aid in the previous year and (2)deleted text end the product
of (i) the difference between its unmet need and its deleted text begin formuladeleted text end new text begin certifiednew text end aid in the previous
yearnew text begin before any aid adjustment under subdivision 13new text end , and (ii) the aid gap percentage.

deleted text begin (b) For aids payable in 2015 and thereafter, if a city's certified aid from the previous
year is greater than the sum of its unmet need plus its aid adjustment under subdivision 13,
its formula aid is adjusted to equal its unmet need.
deleted text end

deleted text begin (c)deleted text end new text begin (b)new text end No city may have a formula aid amount less than zero. The aid gap percentage
must be the same for all cities subject to paragraph (a).

deleted text begin (d)deleted text end new text begin (c)new text end The applicable aid gap percentage must be calculated by the Department of
Revenue so that the total of the aid under subdivision 9 equals the total amount available
for aid under section 477A.03. new text begin The aid gap percentage must be the same for all cities subject
to paragraph (a).
new text end Data used in calculating aids to cities under sections 477A.011 to 477A.013
shall be the most recently available data as of January 1 in the year in which the aid is
calculated.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2018
and thereafter.
new text end

Sec. 17.

Minnesota Statutes 2016, section 477A.013, subdivision 9, is amended to read:


Subd. 9.

City aid distribution.

(a) In calendar year deleted text begin 2014deleted text end new text begin 2018 new text end and thereafter, deleted text begin each citydeleted text end
new text begin if a city's certified aid before any aid adjustment under subdivision 13 for the previous year
is less than its current unmet need, the city
new text end shall receive an aid distribution equal to the sum
of (1) new text begin its certified aid in the previous year before any aid adjustment under subdivision 13,
(2)
new text end the city formula aid under subdivision 8, and deleted text begin (2)deleted text end new text begin (3)new text end its aid adjustment under subdivision
13.

(b) For aids payable in deleted text begin 2015deleted text end new text begin 2018 new text end and thereafter, new text begin if a city's certified aid before any aid
adjustment under subdivision 13 for the previous year is equal to or greater than its current
unmet need,
new text end the total aid for a city deleted text begin must not be less thandeleted text end new text begin is equal to the greater of (1) its
unmet need plus any aid adjustment under subdivision 13, or (2)
new text end the amount it was certified
to receive in the previous year minus the lesser of $10 multiplied by its population, or five
percent of its net levy in the year prior to the aid distribution.new text begin No city may have a total aid
amount less than zero.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2018
and thereafter.
new text end

Sec. 18.

new text begin [477A.0135] AID REDUCTIONS FOR PAYMENTS TO A WORLD FAIR
OR EXPO.
new text end

new text begin If a county, statutory or home rule charter city, or town makes a payment or contribution
to Expo2023 or any similar organization with the mission of advocating, promoting, or
running a world fair or expo in the state of Minnesota in any year, it must report that amount
to the commissioner by January 15 of the year following the year in which the payment or
contribution is made. The commissioner shall reduce the aid paid to a county, city, or town
under section 477A.014 from the amount certified to the county under section 477A.0124;
to the city under section 477A.013, subdivision 9; or to the town under section 477A.013,
subdivision 1, in the calendar year following the year in which the payment or contribution
was made. The reduction is equal to the amount of the payment or contribution, but the aid
paid to any county, city, or town may not be less than zero. Any savings in aid payments
under this section shall stay in the general fund and shall not be redistributed to other
counties, cities, or towns.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2018
and thereafter.
new text end

Sec. 19.

new text begin [477A.0175] AID REDUCTIONS FOR OPERATING AN UNAUTHORIZED
DIVERSION PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Penalty for operating an unauthorized diversion program.
new text end

new text begin Notwithstanding any other law to the contrary, a county or city that operated a pretrial
diversion program that a court determines was not authorized under section 169.999 or
another statute or law must have its aid under sections 477A.011 to 477A.03 reduced by
the amount of fees paid by participants into the program for the years in which the program
operated. A court shall report any order that enjoins a county or city from operating a pretrial
diversion program to the commissioner as required under subdivision 2. The commissioner
shall, with the assistance of the state auditor, determine the amount of fees collected under
the diversion program and reduce the county program aid paid to a county or the local
government aid paid to a city by this amount beginning with the first aid payment made
after the reduction amount is determined. No aid payment may be less than zero but the
amount of the reduction that cannot be made out of that payment shall be applied to future
payments until the total amount has been deducted.
new text end

new text begin Subd. 2. new text end

new text begin Court challenge to authority to operate a pretrial diversion program. new text end

new text begin Any
taxpayer may challenge a city or county operation of a pretrial diversion program by filing
a declaratory judgment action or seeking other appropriate relief in the district court for the
county where the city is located or in any other court of competent jurisdiction. If the court
finds that the county or city has exceeded its authority under law in operating the pretrial
diversion program, the court must transmit a copy of the court order to the commissioner
of revenue.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies beginning with the second aid payments under Minnesota Statutes, section 477A.015
in calendar year 2017.
new text end

Sec. 20.

new text begin [477A.09] MAXIMUM EFFORT LOAN AID.
new text end

new text begin (a) For fiscal years 2018 to 2022, each school district with a maximum effort loan under
sections 126C.61 to 126C.72, outstanding as of June 30, 2016, is eligible for an aid payment
equal to one-fifth of the amount of interest that was paid on the loan between December 1,
1990, and June 30, 2016. A school district with a maximum effort capital loan outstanding
as of June 30, 2017, is eligible for an annual aid payment equal to one-fifth of the estimated
amount of interest that will be paid by the district on the loan between June 30, 2017, and
June 30, 2021. Aid payments under this section must be used to reduce current year property
taxes levied on net tax capacity within the district or to reduce future years' tax levies by:
new text end

new text begin (1) retaining payments made under this section in the district's debt redemption fund for
up to 20 years, notwithstanding the two-year limit under section 475.61, subdivision 3; or
new text end

new text begin (2) financing a defeasance of any future payments on outstanding bonded debt.
new text end

new text begin (b) Aid under this section must be paid in fiscal years 2018 to 2022. An amount sufficient
to make aid payments under this section is annually appropriated from the general fund to
the commissioner of education.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal years 2018 to 2022.
new text end

Sec. 21. new text begin ONETIME ADJUSTMENT FOR CERTAIN CITIES; AIDS PAYABLE IN
2017.
new text end

new text begin (a) The amount of aid payable in 2017 to a city shall be increased to equal the amount
of aid it received under Minnesota Statutes, section 477A.013, subdivision 9, for aids payable
in 2016 if the following conditions are met:
new text end

new text begin (1) its certified aid under Minnesota Statutes, section 477A.013, subdivision 9, for aids
payable in 2017, is less than its certified aid for aids payable in 2016; and
new text end

new text begin (2) its certified aid under Minnesota Statutes, section 477A.013, subdivision 9, for aids
payable in 2016, is less than its unmet need under Minnesota Statutes, section 477A.011,
subdivision 34, for aids payable in 2017.
new text end

new text begin (b) Any adjustment under this section shall be treated as an aid correction under
Minnesota Statutes, section 477A.014, subdivision 3. The amount computed under this
section shall be used as an affected city's 2017 certified aid amount when calculating its
formula aid under Minnesota Statutes, section 477A.013, subdivision 8, for aids payable in
2018.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar years 2017
and 2018.
new text end

Sec. 22. new text begin BASE YEAR FORMULA AID FOR NEWLY INCORPORATED CITY.
new text end

new text begin For a city that incorporated on October 13, 2015, and first qualifies for aid under
Minnesota Statutes, section 477A.013, subdivisions 8 and 9, in 2017, the city's certified aid
for 2017, used in calculating aid payable in 2018, shall be deemed to equal the lesser of (1)
25 percent of its net levy for taxes payable in 2016, or (2) 50 percent of its unmet need as
defined in Minnesota Statutes, section 477A.011, subdivision 43.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2018.
new text end

Sec. 23. new text begin 2013 CITY AID PENALTY FORGIVENESS; CITY OF OSLO.
new text end

new text begin Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of Oslo
shall receive the portion of its aid payment for calendar year 2013 under Minnesota Statutes,
section 477A.013, that was withheld under Minnesota Statutes, section 477A.017, subdivision
3, provided that the state auditor certifies to the commissioner of revenue that it received
audited financial statements from the city for calendar year 2012 by December 31, 2013.
The commissioner of revenue shall make a payment of $37,473.50 with the first payment
of aids under Minnesota Statutes, section 477A.015. $37,473.50 is appropriated from the
general fund to the commissioner of revenue in fiscal year 2018 to make this payment.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 24. new text begin 2014 AID PENALTY FORGIVENESS.
new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the cities of
Dundee, Jeffers, and Woodstock shall receive all of their calendar year 2014 aid payment
that was withheld under Minnesota Statutes, section 477A.017, subdivision 3, provided that
the state auditor certifies to the commissioner of revenue that the city complied with all
reporting requirements under Minnesota Statutes, section 477A.017, subdivision 3, for
calendar years 2013 and 2014 by June 1, 2015.
new text end

new text begin (b) The commissioner of revenue shall make payment to each city no later than July 20,
2017. Up to $101,570 in fiscal year 2018 is appropriated from the general fund to the
commissioner of revenue to make the payments under this section.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 25. new text begin LAKE MILLE LACS AREA PROPERTY TAX ABATEMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Abatements authorized. new text end

new text begin (a) Notwithstanding Minnesota Statutes, section
375.192, the county boards of Aitkin, Crow Wing, and Mille Lacs Counties may grant an
abatement of local property taxes for taxes payable in 2017, provided that:
new text end

new text begin (1) the property is classified as 1c, 3a (excluding utility real and personal property),
4c(1), 4c(10), or 4c(11);
new text end

new text begin (2) on or before December 31, 2017, the taxpayer submits a written application to the
county auditor in the county in which abatement is sought; and
new text end

new text begin (3) the taxpayer meets qualification requirements established in subdivision 3.
new text end

new text begin Subd. 2. new text end

new text begin Appeals. new text end

new text begin An appeal may not be taken to the Tax Court from any order of the
county board made pursuant to the exercise of the discretionary authority granted in this
section.
new text end

new text begin Subd. 3. new text end

new text begin Qualification requirements. new text end

new text begin To qualify for abatements under this section, a
taxpayer must:
new text end

new text begin (1) be located within one of the following municipalities surrounding Lake Mille Lacs:
new text end

new text begin (i) in Crow Wing County, the city of Garrison, township of Garrison, or township of
Roosevelt;
new text end

new text begin (ii) in Aitkin County, the township of Hazelton, township of Wealthwood, township of
Malmo, or township of Lakeside; or
new text end

new text begin (iii) in Mille Lacs County, the city of Isle, city of Wahkon, city of Onamia, township of
East Side, township of Isle Harbor, township of South Harbor, or township of Kathio;
new text end

new text begin (2) document a reduction in gross receipts of five percent or greater between two
successive calendar years beginning in 2010 or later; and
new text end

new text begin (3) be a business in one of the following industries, as defined within the North American
Industry Classification System: accommodation, restaurants, bars, amusement and recreation,
food and beverages retail, sporting goods, miscellaneous retail, general retail, museums,
historical sites, health and personal care, gas station, general merchandise, business and
professional membership, movies, or nonstore retailer, as determined by the county in
consultation with the commissioner of employment and economic development.
new text end

new text begin Subd. 4. new text end

new text begin State general levy in relief area. new text end

new text begin The counties of Aitkin, Crow Wing, and
Mille Lacs must refund the state general levy levied upon a property classified as 1c, 3a
(excluding utility real and personal property), or 4c(1) that is located in the area described
by subdivision 3, clause (1), for taxes payable in 2017.
new text end

new text begin Subd. 5. new text end

new text begin Certification and transfer of funds. new text end

new text begin (a) By February 1, 2018, a county granting
a refund as required under subdivision 4 must certify the total amount of state general tax
refunded to Mille Lacs County and the commissioner of revenue. By March 1, 2018, Mille
Lacs County must transfer an amount equal to the amount certified under this paragraph to
the county making the certification.
new text end

new text begin (b) By February 1, 2018, a county that has received an application for an abatement
authorized under subdivision 1 must certify to Mille Lacs County the total amount of
abatements for which applications have been received and approved. By March 1, 2018,
Mille Lacs County must transfer an amount equal to the amount certified under this paragraph
to the county making the certification. By April 30, 2018, the county must issue refunds of
local property tax amounts to qualified taxpayers.
new text end

new text begin Subd. 6. new text end

new text begin Commissioner of revenue; appropriation. new text end

new text begin An amount sufficient to make the
transfers required under subdivision 5 in fiscal year 2018 is appropriated from the general
fund to the commissioner of revenue for transfer to Mille Lacs County. This is a onetime
appropriation.
new text end

new text begin Subd. 7. new text end

new text begin Report to legislature. new text end

new text begin The commissioner of revenue must make a written report
to the chairs and ranking minority members of the legislative committees with jurisdiction
over taxes stating the amount of abatements and refunds given under this section by taxing
jurisdictions by February 1, 2019. The counties must provide the commissioner with the
information necessary to make the report.
new text end

new text begin Subd. 8. new text end

new text begin Refund eligibility. new text end

new text begin Only a taxpayer making all payments of property taxes for
taxes payable in 2017 is eligible to receive a refund under subdivisions 4 and 5.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 26. new text begin SUPPLEMENTAL PAYMENTS FOR OTHER NATURAL RESOURCES
LAND.
new text end

new text begin Subdivision 1. new text end

new text begin Supplemental payments. new text end

new text begin For aids payable in calendar years 2017 and
2018 only, each county must receive a supplemental aid payment equal to 50 cents per acre
for other natural resources land, as defined in Minnesota Statutes, section 477A.11,
subdivision 4, located in the county. The payment shall be made at the same time as payments
under Minnesota Statutes, section 477A.13, and the counties shall distribute this payment
as if it was part of the aids subject to the general distribution for that year under Minnesota
Statutes, section 477A.014, subdivision 1.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin The amount necessary to make the payments under subdivision
1 in each year is appropriated from the general fund to the commissioner of revenue for
fiscal years 2018 and 2019 only. The appropriations under this section are onetime and not
added to the base budget.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar years 2017
and 2018 only.
new text end

Sec. 27. new text begin 2017 SUPPLEMENTAL HOMESTEAD CREDIT REFUND.
new text end

new text begin (a) By October 1, 2017, the commissioner of revenue shall adjust the schedule for the
homestead credit refund allowed under Minnesota Statutes, section 290A.04, subdivision
2, so as to increase the total amount of refunds based on taxes payable in 2018. The
commissioner must adjust the schedule by:
new text end

new text begin (1) first proportionately increasing the maximum refund allowed for each income bracket
in the schedule so that the increase in refunds projected to be paid based on taxes payable
in 2018 equals $5,000,000; and
new text end

new text begin (2) second proportionately decreasing the percent of tax above the income threshold
paid by the claimant, or the "co-payment percentage," for each income bracket in the schedule
so that the increase in refunds projected to be paid based on taxes payable in 2018 under
this clause and clause (1) equals $58,000,000.
new text end

new text begin (b) The amount necessary to pay the refunds required under this section is appropriated
from the general fund to the commissioner of revenue in fiscal year 2019.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for refunds based on taxes payable in
2018 only.
new text end

Sec. 28. new text begin 2017 SUPPLEMENTAL RENTER PROPERTY TAX REFUND.
new text end

new text begin (a) By October 1, 2017, the commissioner of revenue shall adjust the schedule for the
property tax refund for renters allowed under Minnesota Statutes, section 290A.04,
subdivision 2a, so as to increase the total amount of refunds based on rent paid in 2017. The
commissioner must adjust the schedule by:
new text end

new text begin (1) first proportionately increasing the maximum refund allowed for each income bracket
in the schedule so that the increase in refunds projected to be paid based on rent paid in
2017 equals $1,500,000;
new text end

new text begin (2) second proportionately decreasing the percent of income, or the "threshold
percentage," for each income bracket in the schedule so that the increase in refunds projected
to be paid based on rent paid in 2017 under this clause and clause (1) equals $21,750,000;
and
new text end

new text begin (3) third proportionately decreasing the percent of tax above the income threshold paid
by the claimant, or the "co-payment percentage," for each income bracket in the schedule
so that the total increase in refunds projected to be paid based on rent paid in 2017 under
this clause and clauses (1) to (2) equals $42,000,000.
new text end

new text begin (b) The amount necessary to pay the refunds required under this section is appropriated
from the general fund to the commissioner of revenue in fiscal year 2019.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for refunds based on rent paid in 2017
only.
new text end

Sec. 29. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, section 477A.085, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with aids payable in 2018.
new text end

ARTICLE 6

IN PERPETUITY PAYMENTS ON LAND PURCHASES

Section 1.

new text begin [11A.237] ACCOUNT FOR COUNTY JOINT TRUST FUND PAYMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The State Board of Investment, when requested by a
county as required under sections 97A.056, subdivision 1b, and 116P.045, subdivision 2,
shall invest the funds deposited by the commissioner of revenue, acting as an agent on the
board's behalf, under section 97A.056, subdivision 1b, or 116P.045, subdivision 2, in a
special account for that purpose in the combined investment funds established in section
11A.14, subject to the policy and procedures of the State Board of Investment. Use of the
funds is restricted to payments to the commissioner of revenue, acting as an agent on behalf
of the counties, for distributions to counties under sections 97A.056, subdivision 1b, and
116P.045, subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Account maintenance and investment. new text end

new text begin The commissioner of revenue may
deposit money into the account on behalf of the counties and may withdraw money from
the account to make distributions to the counties under sections 97A.056, subdivision 1b,
and 116P.045, subdivision 2, only. The commissioner of revenue shall make one payment
under each section each year for all counties eligible for a payment in that year. The
commissioner shall make one withdrawal annually at a time negotiated with the executive
director of the State Board of Investment, but no later than November 15, to cover
distributions to counties under section 477A.30, up to the limit allowed under that section.
The transactions must be in the manner required by the executive director of the State Board
of Investment. Investment earnings must be credited to the account.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2018.
new text end

Sec. 2.

Minnesota Statutes 2016, section 97A.056, subdivision 1a, is amended to read:


Subd. 1a.

Definitions.

deleted text begin For the purpose ofdeleted text end new text begin (a) The definitions in this subdivision apply
to this section and
new text end appropriations from the outdoor heritage funddeleted text begin ,deleted text end new text begin .
new text end

new text begin (b) "Land acquisition costs" means acquisition coordination costs, costs of engineering
services, appraisal fees, attorney fees, taxes, assessments required at the time of purchase,
onetime trust fund payments under subdivision 1b, and recording fees.
new text end

new text begin (c) "Land-related property taxes" means property taxes collected on behalf of local
governments providing land-related services.
new text end

new text begin (d) "Local governments providing land-related services" means counties, townships,
home rule charter and statutory cities, watershed districts under chapter 103D, sanitary
districts under sections 442A.01 to 442A.29, and regional sanitary sewer districts under
sections 115.61 to 115.67.
new text end

new text begin (e)new text end "Recipient" means the entity responsible for deliverables financed by the outdoor
heritage fund.

new text begin (f) "Total payment for the land" means the total price paid for the land including land
acquisition costs, but excluding any in-kind services provided by nongovernmental entities
at no cost to the state.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 3.

Minnesota Statutes 2016, section 97A.056, is amended by adding a subdivision to
read:


new text begin Subd. 1b. new text end

new text begin Outdoor heritage trust fund payment account; trust fund payments. new text end

new text begin (a)
An outdoor heritage trust fund account is created in the special revenue fund. The State
Board of Investment must ensure the account is invested under section 11A.24. The
commissioner of management and budget must credit to the account all money appropriated
to the account and all money earned by the account. The principal of the account and any
unexpended earnings must be invested and reinvested by the State Board of Investment.
Nothing in this section limits the source of contributions to the account. Money in the
account must be used only for the purposes of this subdivision.
new text end

new text begin (b) State land acquired in fee simple in whole or in part with money appropriated from
the outdoor heritage fund is eligible for a onetime trust fund payment as provided under
this subdivision. The percentage of the total acres acquired in any purchase that is eligible
for a trust fund payment under this subdivision is equal to the percentage of the total payment
for the land funded from outdoor heritage fund revenues. If the percentage of the total
payment for the land from the outdoor heritage fund is ten percent or less, the parcel is
ineligible for a payment under this subdivision; if the percentage is 90 percent or more, the
entire parcel is eligible for the payment under this subdivision. The commissioner of natural
resources must certify to the commissioner of revenue and the county in which land eligible
for a payment under this section is purchased the total number of acres purchased, the total
payment for the land, and the amount of outdoor heritage fund revenues used for the purchase.
The trust fund payment is equal to 30 times the land-related property taxes assessed on the
eligible portion of the land in the year prior to the year in which the land is acquired. If the
land was acquired from a private party that was exempt from paying property taxes, the
payments must be based on 30 times the property taxes assessed on comparable land in the
year prior to the year in which the land is acquired. By September 1 each year, the county
in which the land is acquired must provide the commissioner of revenue with information
necessary in a form determined by the commissioner of revenue to make this determination
for all lands acquired for the 12-month period ending on June 30 of that year. The
commissioner of revenue must make a trust fund payment on behalf of each county on the
same date as the first payment under section 273.1384, subdivision 4, each year for all land
acquired in that county in the 12-month period ending on June 30 of that year to the State
Board of Investment as required under this paragraph. The money so deposited is money
paid to the counties and may only be withdrawn for the purposes allowed under section
477A.30. The commissioner of revenue must inform each county by October 15 each year
of the amount deposited on the county's behalf with the State Board of Investment under
this subdivision.
new text end

new text begin (c) The amount necessary to make the payments required under this subdivision is
annually appropriated from the outdoor heritage trust fund payment account to the
commissioner of revenue for deposit in the account for county joint trust fund payments in
section 11A.237.
new text end

new text begin (d) To receive a trust fund payment under this subdivision, a county board must enter
into an agreement with the State Board of Investment to allow the commissioner of revenue
to make deposits and withdrawals on behalf of the county into and out of the county joint
trust fund account under section 11A.237.
new text end

new text begin (e) The portion of land receiving a trust fund payment under this subdivision is not
eligible for payments under sections 477A.11 to 477A.14, but is eligible for distribution of
withdrawals from the county joint trust fund account under section 477A.30.
new text end

new text begin (f) If the land for which a payment under this subdivision is made is subsequently sold
to another entity and is no longer available for the use for which it was purchased, the
original amount of the payment for that land under paragraph (b) must be withdrawn by the
commissioner of revenue from the account established under section 11A.237 and returned
to the outdoor heritage fund. If only a portion of the land is sold and no longer available for
the use for which it was purchased, the amount of the original trust fund payment returned
is reduced proportionately based on the portion of the original purchase that is sold. The
holder of the land must inform the commissioner of revenue and the county in which the
land is sold of the sale and provide them with any information necessary to calculate the
required withdrawal from the account. The withdrawal is made along with withdrawals
under section 477A.30 in the calendar year after the year in which the land is sold.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017, and applies to land acquired
with money appropriated on or after that date.
new text end

Sec. 4.

Minnesota Statutes 2016, section 97A.056, subdivision 3, is amended to read:


Subd. 3.

Council recommendations.

(a) The council shall make recommendations to
the legislature on appropriations of money from the outdoor heritage fund that are consistent
with the Constitution and state law and that will achieve the outcomes of existing natural
resource plans, including, but not limited to, the Minnesota Statewide Conservation and
Preservation Plan, that directly relate to the restoration, protection, and enhancement of
wetlands, prairies, forests, and habitat for fish, game, and wildlife, and that prevent forest
fragmentation, encourage forest consolidation, and expand restored native prairie. In making
recommendations, the council shall consider a range of options that would best restore,
protect, and enhance wetlands, prairies, forests, and habitat for fish, game, and wildlife.
new text begin The council recommendations each year on appropriation of money from the outdoor heritage
fund must include amounts adequate to make the required transfers to the outdoor heritage
trust fund payment account according to subdivision 1b.
new text end The council's recommendations
shall be submitted no later than January 15 each year. The council shall present its
recommendations to the senate and house of representatives committees with jurisdiction
over the environment and natural resources budget by February 15 in odd-numbered years,
and within the first four weeks of the legislative session in even-numbered years. The
council's budget recommendations to the legislature shall be separate from the Department
of Natural Resource's budget recommendations.

(b) To encourage and support local conservation efforts, the council shall establish a
conservation partners program. Local, regional, state, or national organizations may apply
for matching grants for restoration, protection, and enhancement of wetlands, prairies,
forests, and habitat for fish, game, and wildlife, prevention of forest fragmentation,
encouragement of forest consolidation, and expansion of restored native prairie.

(c) The council may work with the Clean Water Council to identify projects that are
consistent with both the purpose of the outdoor heritage fund and the purpose of the clean
water fund.

(d) The council may make recommendations to the Legislative-Citizen Commission on
Minnesota Resources on scientific research that will assist in restoring, protecting, and
enhancing wetlands, prairies, forests, and habitat for fish, game, and wildlife, preventing
forest fragmentation, encouraging forest consolidation, and expanding restored native prairie.

(e) Recommendations of the council, including approval of recommendations for the
outdoor heritage fund, require an affirmative vote of at least nine members of the council.

(f) The council may work with the Clean Water Council, the Legislative-Citizen
Commission on Minnesota Resources, the Board of Water and Soil Resources, soil and
water conservation districts, and experts from Minnesota State Colleges and Universities
and the University of Minnesota in developing the council's recommendations.

(g) The council shall develop and implement a process that ensures that citizens and
potential recipients of funds are included throughout the process, including the development
and finalization of the council's recommendations. The process must include a fair, equitable,
and thorough process for reviewing requests for funding and a clear and easily understood
process for ranking projects.

(h) The council shall use the regions of the state based upon the ecological sections and
subsections developed by the Department of Natural Resources and establish objectives for
each region and subregion to achieve the purposes of the fund outlined in the state
constitution.

(i) The council shall develop and submit to the Legislative Coordinating Commission
plans for the first ten years of funding, and a framework for 25 years of funding, consistent
with statutory and constitutional requirements. The council may use existing plans from
other legislative, state, and Previous federal Next sources, as applicable.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017, and applies to lands acquired
with money appropriated on or after that date.
new text end

Sec. 5.

Minnesota Statutes 2016, section 97A.056, is amended by adding a subdivision to
read:


new text begin Subd. 15a. new text end

new text begin State acquisition of land; restrictions. new text end

new text begin The state may not use money from
the outdoor heritage fund to acquire in fee simple in whole or in part any land subject to
property taxes or any land owned by a nonprofit organization that was subject to property
taxes before the land's acquisition by the nonprofit organization if (1) subdivision 1b is void,
or (2) sufficient funds to cover the onetime trust fund payment required under subdivision
1b have not been appropriated or are not available.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017, and applies to land acquired
with money appropriated on or after that date.
new text end

Sec. 6.

Minnesota Statutes 2016, section 116P.02, subdivision 1, is amended to read:


Subdivision 1.

Applicability.

The definitions in this section apply to this chapternew text begin , except
that the definition in subdivision 6 does not apply to section 116P.045
new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 7.

Minnesota Statutes 2016, section 116P.02, is amended by adding a subdivision to
read:


new text begin Subd. 4a. new text end

new text begin Land acquisition costs. new text end

new text begin "Land acquisition costs" means acquisition
coordination costs, costs of engineering services, appraisal fees, attorney fees, taxes,
assessments required at the time of purchase, payments under section 116P.045, and recording
fees.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 8.

Minnesota Statutes 2016, section 116P.02, is amended by adding a subdivision to
read:


new text begin Subd. 4b. new text end

new text begin Land-related property taxes. new text end

new text begin "Land-related property taxes" means property
taxes collected on behalf of local governments providing land-related services.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 9.

Minnesota Statutes 2016, section 116P.02, is amended by adding a subdivision to
read:


new text begin Subd. 4c. new text end

new text begin Local governments providing land-related services. new text end

new text begin "Local governments
providing land-related services" means counties, townships, home rule charter and statutory
cities, watershed districts under chapter 103D, sanitary districts under sections 442A.01 to
442A.29, and regional sanitary sewer districts under sections 115.61 to 115.67.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 10.

Minnesota Statutes 2016, section 116P.02, is amended by adding a subdivision
to read:


new text begin Subd. 4d. new text end

new text begin Total payment for the land. new text end

new text begin "Total payment for the land" means the total
price paid for the land including land acquisition costs, but excluding any in-kind services
provided by nongovernmental entities at no cost to the state.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 11.

new text begin [116P.045] ENVIRONMENT AND NATURAL RESOURCES TRUST FUND
PAYMENT ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Account created. new text end

new text begin An environment and natural resources trust fund
payment account is created in the special revenue fund. The State Board of Investment must
ensure the account is invested under section 11A.24. The commissioner of management
and budget must credit to the account all money appropriated to the account and all money
earned by the account. The principal of the account and any unexpended earnings must be
invested and reinvested by the State Board of Investment. Nothing in this section limits the
source of contributions to the account. Money in the account must be used only for the
purposes of this section.
new text end

new text begin Subd. 2. new text end

new text begin Trust fund payment; appropriation. new text end

new text begin (a) State land acquired in fee simple in
whole or in part with money appropriated from the environment and natural resources trust
fund is eligible for a onetime trust fund payment as provided under this subdivision. The
percentage of the total acres acquired in any purchase that is eligible for a trust fund payment
under this section is equal to the percentage of the total payment for the land funded from
environment and natural resources trust fund revenues. If the percentage of the total payment
for the land from the environment and natural resources trust fund is ten percent or less, the
parcel is ineligible for a payment under this section; if the percentage is 90 percent or more,
the entire parcel is eligible for the payment under this section. The commissioner of natural
resources must certify to the commissioner of revenue and the county in which land eligible
for a payment under this section is purchased the total number of acres purchased, the total
payment for the land, and the amount of environmental and natural resources trust fund
revenues used for the purchase. The trust fund payment is equal to 30 times the land-related
property taxes assessed on the eligible portion of the land in the year prior to the year in
which the land is acquired. If the land was acquired from a private party that was exempt
from paying property taxes, the payments must be based on 30 times the property taxes
assessed on comparable land in the year prior to the year in which the land is acquired. By
September 1 each year, the county in which the land is acquired must provide the
commissioner of revenue with information necessary in a form determined by the
commissioner of revenue to make this determination for all lands acquired for the 12-month
period ending on June 30 of that year. The commissioner of revenue must make a trust fund
payment on behalf of each county on the same date as the first payment under section
273.1384, subdivision 4, each year for all land acquired in that county in the 12-month
period ending on June 30 of that year to the State Board of Investment as required under
this section. The money so deposited is money paid to the counties and may only be
withdrawn for the purposes allowed under section 477A.30. The commissioner of revenue
must inform each county by October 15 each year of the amount deposited on the county's
behalf with the State Board of Investment under this subdivision.
new text end

new text begin (b) The amount necessary to make the payments required under this subdivision is
annually appropriated from the environment and natural resources trust fund payment
account to the commissioner of revenue for deposit in the account for county joint trust
fund payments in section 11A.237.
new text end

new text begin (c) If the land for which a payment under this subdivision is made is subsequently sold
to another entity and is no longer available for the use for which it was purchased, the
original amount of the payment for that land under paragraph (a) must be withdrawn by the
commissioner of revenue from the account established under section 11A.237 and returned
to the environment and natural resources trust fund. If only a portion of the land is sold and
no longer available for the use for which it was purchased, the amount of the original trust
fund payment returned is reduced proportionately based on the portion of the original
purchase that is sold. The holder of the land must inform the commissioner of revenue and
the county in which the land is sold of the sale and provide them with any information
necessary to calculate the required withdrawal from the account. The withdrawal is made
along with withdrawals under section 477A.30 in the calendar year after the year in which
the land is sold.
new text end

new text begin Subd. 3. new text end

new text begin County requirements. new text end

new text begin To receive a trust fund payment under this section, a
county board must enter into an agreement with the State Board of Investment to allow the
commissioner of revenue to make deposits and withdrawals on behalf of the county into
and out of the county joint trust fund account under section 11A.237.
new text end

new text begin Subd. 4. new text end

new text begin Ineligible for other payments. new text end

new text begin Land receiving a trust fund payment under this
section is not eligible for payments under sections 477A.11 to 477A.14, but is eligible for
distribution of withdrawals from the county joint trust fund account under section 477A.30.
new text end

new text begin Subd. 5. new text end

new text begin State acquisition of land; restrictions. new text end

new text begin The state may not use money from the
environment and natural resources trust fund to acquire in fee simple in whole or in part
any land subject to property taxes or any land owned by a nonprofit organization that was
subject to property taxes before the land's acquisition by the nonprofit organization if (1)
subdivision 2 is void, or (2) sufficient funds to cover the onetime trust fund payment required
under subdivision 2 have not been appropriated or are not available.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017, and applies to land acquired
with money appropriated on or after that date.
new text end

Sec. 12.

Minnesota Statutes 2016, section 116P.08, subdivision 1, is amended to read:


Subdivision 1.

Expenditures.

Money in the trust fund may be spent only for:

(1) the reinvest in Minnesota program as provided in section 84.95, subdivision 2;

(2) research that contributes to increasing the effectiveness of protecting or managing
the state's environment or natural resources;

(3) collection and analysis of information that assists in developing the state's
environmental and natural resources policies;

(4) enhancement of public education, awareness, and understanding necessary for the
protection, conservation, restoration, and enhancement of air, land, water, forests, fish,
wildlife, and other natural resources;

(5) capital projects for the preservation and protection of unique natural resources;

(6) activities that preserve or enhance fish, wildlife, land, air, water, and other natural
resources that otherwise may be substantially impaired or destroyed in any area of the state;

(7) Previous administrative Next and investment expenses incurred by the State Board of Investment
in investing deposits to the trust fund; deleted text begin and
deleted text end

(8) Previous administrative Next expenses subject to the limits in section 116P.09deleted text begin .deleted text end new text begin ; and
new text end

new text begin (9) payments to the environment and natural resources trust fund payment account as
required in section 116P.045.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017, and applies to lands acquired
with money appropriated on or after that date.
new text end

Sec. 13.

Minnesota Statutes 2016, section 116P.08, subdivision 4, is amended to read:


Subd. 4.

Legislative recommendations.

(a) Funding may be provided only for those
projects that meet the categories established in subdivision 1.

(b) The commission must recommend an annual or biennial legislative bill to make
appropriations from the trust fund for the purposes provided in subdivision 1. The
recommendations must be submitted to the governor for inclusion in the biennial budget
and supplemental budget submitted to the legislature.

(c) The commission may recommend regional block grants for a portion of trust fund
expenditures to partner with existing regional organizations that have strong citizen
involvement, to address unique local needs and capacity, and to leverage all available funding
sources for projects.

(d) The commission may recommend the establishment of an emerging issues account
in its legislative bill for funding emerging issues, which come up unexpectedly, but which
still adhere to the commission's strategic plan, to be approved by the governor after initiation
and recommendation by the commission.

(e)new text begin The council must recommend an appropriation of money from the environment and
natural resources trust fund adequate to make the required transfers to the environment and
natural resources trust fund payment account according to section 116P.045.
new text end

new text begin (f) new text end Money in the trust fund may not be spent except under an appropriation by law.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017, and applies to lands acquired
with money appropriated on or after that date.
new text end

Sec. 14.

Minnesota Statutes 2016, section 477A.10, is amended to read:


477A.10 NATURAL RESOURCES LAND PAYMENTS IN LIEU; PURPOSE.

The purposes of sections 477A.11 to 477A.14 are:

(1) to compensate local units of government for the loss of tax base from state ownership
of landnew text begin , except land acquired on or after July 1, 2017, receiving trust fund payments from
the outdoor heritage trust fund payment account or the environment and natural resources
trust fund payment account,
new text end and the need to provide services for state land;

(2) to address the disproportionate impact of state land ownership on local units of
government with a large proportion of state land; and

(3) to address the need to manage state lands held in trust for the local taxing districts.

new text begin EFFECTIVE DATE. new text end

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

Sec. 15.

Minnesota Statutes 2016, section 477A.11, is amended by adding a subdivision
to read:


new text begin Subd. 9. new text end

new text begin Environment and natural resources trust fund lands. new text end

new text begin Notwithstanding any
other provision of law to the contrary, parcels or portions of parcels of land purchased on
or after July 1, 2017, and eligible for a trust fund payment under section 116P.045 are not
included in the definitions of the lands described in subdivisions 3 to 7 and are excluded
from payments under sections 477A.11 to 477A.14.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with aids payable in 2018.
new text end

Sec. 16.

Minnesota Statutes 2016, section 477A.11, is amended by adding a subdivision
to read:


new text begin Subd. 10. new text end

new text begin Outdoor heritage lands. new text end

new text begin Notwithstanding any other provision of law to the
contrary, parcels or portions of parcels of land purchased on or after July 1, 2017, and
eligible for a trust fund payment under section 97A.056, subdivision 1b, are not included
in the definitions of the lands described in subdivisions 3 to 7 and are excluded from
payments under sections 477A.11 to 477A.14.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with aids payable in 2018.
new text end

Sec. 17.

new text begin [477A.30] ANNUAL COUNTY JOINT TRUST FUND WITHDRAWALS
AND DISTRIBUTION FOR ENVIRONMENT AND NATURAL RESOURCES
TRUST FUND LANDS AND OUTDOOR HERITAGE LANDS.
new text end

new text begin Subdivision 1. new text end

new text begin Commissioner of revenue; withdrawals and payments. new text end

new text begin No later than
November 15 each year, the commissioner of revenue shall make a withdrawal on behalf
of all eligible counties from the county joint trust fund account established under section
11A.237 equal to the lesser of (1) the total amount of necessary withdrawals certified by
the counties under subdivision 2 for the year, or (2) 5-1/2 percent of the amount in that
account as of September 1 of that year as determined by the executive director of the State
Board of Investment. The commissioner shall distribute the certified withdrawal amounts
to each county by November 30. If the amount of the withdrawal is less than the total
certified withdrawal amounts under subdivision 2, the commissioner shall reduce the
distribution to each county proportionately.
new text end

new text begin Subd. 2. new text end

new text begin Certification of needed withdrawal; distribution of funds. new text end

new text begin (a) Beginning in
calendar year 2018, by September 1 each year, a county for whom a trust fund payment has
been made on its behalf under section 97A.056, subdivision 1b, or 116P.045, subdivision
2, shall calculate and certify to the commissioner of revenue the amount of trust fund
withdrawals needed under this section. The amount of the withdrawal for each parcel of
land for which a county received a trust fund payment under either provision is as follows:
new text end

new text begin (1) for the year in which a trust fund payment is made to a county for a parcel of land,
the withdrawal for that parcel is equal to:
new text end

new text begin (i) the remaining taxes owed to the local governments providing land-related services
for taxes spread that year for a parcel acquired between January 1 and June 30; or
new text end

new text begin (ii) the amount of taxes paid to the local governments providing land-related services
on the parcel in the previous year if the parcel was acquired before January 1 of the current
year. The county must distribute the amount by December 15 to all local governments
providing land-related services based on the location of the parcel and the local governments'
share of the total tax; and
new text end

new text begin (2) for all subsequent years, the withdrawal for a parcel is equal to the taxes that would
be owed based on the appraised value of the land and the taxes assessed by local governments
providing land-related services on comparable, privately owned adjacent land. For purposes
of this subdivision, "appraised value" is determined in the manner described in section
477A.12, subdivision 3. The county treasurer must allocate the withdrawn funds among the
local governments providing land-related services on the same basis as if the funds were
taxes on the land received in that year. The county treasurer must pay the allocation to all
eligible local governments by December 15 of the year in which the withdrawal is made.
The county's share of the payment must be deposited in the county general fund.
new text end

new text begin (b) If the distribution to a county under subdivision 1 is less than its total withdrawal
amounts certified under this subdivision, all distributions under paragraph (a) are reduced
proportionately.
new text end

new text begin (c) The local governments receiving a payment under this section must use the money
to fund land-related services. For purposes of this paragraph, "land-related services" means
services used to restore, enhance, and protect the land and its fish and wildlife habitat and
provide any other public services benefiting the land and users of the land, including access
and services to the public accessing and using the land and direct and indirect capital and
operating costs for (1) roads, bridges, and trails; (2) public safety and emergency response
services; (3) environmental, recreational, and resource development and management; and
(4) similar costs.
new text end

new text begin (d) For purposes of this subdivision, "local governments providing land-related services"
has the meaning given in section 116P.02, subdivision 4c.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2018, and applies to land
acquired with money appropriated on or after July 1, 2017.
new text end

Sec. 18. new text begin DELAYED REQUIREMENT FOR TRUST FUND PAYMENTS FOR
APPROPRIATIONS MADE FOR FISCAL YEAR 2018.
new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 97A.056, subdivision 15a, the state
may appropriate money for fiscal year 2018 from the outdoor heritage fund to purchase
land without appropriating sufficient funds to cover the onetime trust fund payment required
under Minnesota Statutes, section 97A.056, subdivision 1b. The amount necessary to make
the payment required under Minnesota Statutes, section 97A.056, subdivision 1b, for all
fiscal year 2018 appropriations for land purchases must be deposited in the outdoor heritage
trust fund payment account by August 1, 2018, or the restriction on land acquisition under
Minnesota Statutes, section 97A.056, subdivision 15a, applies to any land acquisition
authorized with fiscal year 2018 funds that have not yet been acquired.
new text end

new text begin (b) Notwithstanding Minnesota Statutes, section 116P.045, subdivision 5, the state may
appropriate money in fiscal year 2018 from the environment and natural resources trust
fund to purchase land without appropriating sufficient funds to cover the onetime trust fund
payment required under Minnesota Statutes, section 116P.045, subdivision 2. The amount
necessary to make the payment required under Minnesota Statutes, section 116P.045,
subdivision 2, for all fiscal year 2018 appropriations for land purchases must be deposited
in the environment and natural resources trust fund payment account by August 1, 2018, or
the restriction on land acquisition under Minnesota Statutes, section 116P.045, subdivision
5, applies to any land acquisition authorized with fiscal year 2018 funds that have not yet
been acquired.
new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 7

LOCAL OPTION SALES AND USE TAXES

Section 1.

new text begin [471.9998] MERCHANT BAGS; PROHIBITION ON FEE OR TAX.
new text end

new text begin Notwithstanding any other provision of law, no political subdivision may impose or
require the imposition of any fee or tax, other than a local sales tax subject to section
297A.99, upon the use of paper, plastic, or reusable bags for packaging of any item or good
purchased from a merchant, itinerant vendor, or peddler.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective May 31, 2017. Ordinances existing on
the effective date of this section that would be prohibited under this section are invalid as
of the effective date of this section.
new text end

Sec. 2.

Laws 1980, chapter 511, section 1, subdivision 2, as amended by Laws 1991,
chapter 291, article 8, section 22, Laws 1998, chapter 389, article 8, section 25, Laws 2003,
First Special Session chapter 21, article 8, section 11, Laws 2008, chapter 154, article 5,
section 2, and Laws 2014, chapter 308, article 3, section 21, is amended to read:


Subd. 2.

(a) Notwithstanding Minnesota Statutes, section 477A.016, or any other law,
ordinance, or city charter provision to the contrary, the city of Duluth may, by ordinance,
impose an additional sales tax of up to one and three-quarter percent on sales transactions
which are described in Minnesota Statutes 2000, section 297A.01, subdivision 3, clause (c).
The imposition of this tax shall not be subject to voter referendum under either state law or
city charter provisions. When the city council determines that the taxes imposed under this
paragraph at a rate of three-quarters of one percent and other sources of revenue produce
revenue sufficient to pay debt service on bonds in the principal amount of $40,285,000 plus
issuance and discount costs, issued for capital improvements at the Duluth Entertainment
and Convention Center, which include a new arena, the rate of tax under this subdivision
must be reduced by three-quarters of one percent.

(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, section
477A.016, or any other law, ordinance, or city charter provision to the contrary, the city of
Duluth may, by ordinance, impose an additional sales tax of up to one-half of one percent
on sales transactions which are described in Minnesota Statutes 2000, section 297A.01,
subdivision 3, clause (c). This tax expires when the city council determines that the tax
imposed under this paragraph, along with the tax imposed under section 22, paragraph (b),
has produced revenues sufficient to pay the debt service on bonds in a principal amount of
no more than $18,000,000, plus issuance and discount costs, to finance capital improvements
to public facilities to support tourism and recreational activities in that portion of the city
west of deleted text begin 34thdeleted text end new text begin 14thnew text end Avenue West new text begin and the area south of and including Skyline Parkwaynew text end .

(c) The city of Duluth may sell and issue up to $18,000,000 in general obligation bonds
under Minnesota Statutes, chapter 475, plus an additional amount to pay for the costs of
issuance and any premiums. The proceeds may be used to finance capital improvements to
public facilities that support tourism and recreational activities in the portion of the city
west of deleted text begin 34thdeleted text end new text begin 14thnew text end Avenue West new text begin and the area south of and including Skyline Parkwaynew text end , as
described in paragraph (b). The issuance of the bonds is subject to the provisions of
Minnesota Statutes, chapter 475, except no election shall be required unless required by the
city charter. The bonds shall not be included in computing net debt. The revenues from the
taxes that the city of Duluth may impose under paragraph (b) and under section 22, paragraph
(b), may be pledged to pay principal of and interest on such bonds.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Duluth and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 3.

Laws 1980, chapter 511, section 2, as amended by Laws 1998, chapter 389, article
8, section 26, Laws 2003, First Special Session chapter 21, article 8, section 12, and Laws
2014, chapter 308, article 3, section 22, is amended to read:


Sec. 22. CITY OF DULUTH; TAX ON RECEIPTS BY HOTELS AND MOTELS.

(a) Notwithstanding Minnesota Statutes, section 477A.016, or any other law, or ordinance,
or city charter provision to the contrary, the city of Duluth may, by ordinance, impose an
additional tax of one percent upon the gross receipts from the sale of lodging for periods of
less than 30 days in hotels and motels located in the city. The tax shall be collected in the
same manner as the tax set forth in the Duluth city charter, section 54(d), paragraph one.
The imposition of this tax shall not be subject to voter referendum under either state law or
city charter provisions.

(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, section
477A.016, or any other law, ordinance, or city charter provision to the contrary, the city of
Duluth may, by ordinance, impose an additional sales tax of up to one-half of one percent
on the gross receipts from the sale of lodging for periods of less than 30 days in hotels and
motels located in the city. This tax expires when the city council first determines that the
tax imposed under this paragraph, along with the tax imposed under section 21, paragraph
(b), has produced revenues sufficient to pay the debt service on bonds in a principal amount
of no more than $18,000,000, plus issuance and discount costs, to finance capital
improvements to public facilities to support tourism and recreational activities in that portion
of the city west of deleted text begin 34thdeleted text end new text begin 14thnew text end Avenue West new text begin and the area south of and including Skyline
Parkway
new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Duluth and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 4.

Laws 1991, chapter 291, article 8, section 27, subdivision 3, as amended by Laws
1998, chapter 389, article 8, section 28, Laws 2008, chapter 366, article 7, section 9, and
Laws 2009, chapter 88, article 4, section 14, is amended to read:


Subd. 3.

Use of revenues.

new text begin (a) new text end Revenues received from taxes authorized by subdivisions
1 and 2 shall be used by the city to pay the cost of collecting the tax and to pay all or a
portion of the expenses of constructing and improving facilities as part of an urban
revitalization project in downtown Mankato known as Riverfront 2000. Authorized expenses
include, but are not limited to, acquiring property and paying relocation expenses related
to the development of Riverfront 2000 and related facilities, and securing or paying debt
service on bonds or other obligations issued to finance the construction of Riverfront 2000
and related facilities. For purposes of this section, "Riverfront 2000 and related facilities"
means a civic-convention center, an arena, a riverfront park, a technology center and related
educational facilities, and all publicly owned real or personal property that the governing
body of the city determines will be necessary to facilitate the use of these facilities, including
but not limited to parking, skyways, pedestrian bridges, lighting, and landscaping. It also
includes the performing arts theatre and the Southern Minnesota Women's Hockey Exposition
Center, for use by Minnesota State University, Mankato.

new text begin (b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and as approved
by voters at the November 8, 2016, general election, the city may by ordinance also use
revenues from taxes authorized under subdivisions 1 and 2, up to a maximum of $47,000,000,
plus associated bond costs, to pay all or a portion of the expenses of the following capital
projects:
new text end

new text begin (1) construction and improvements to regional recreational facilities including existing
hockey and curling rinks, a baseball park, youth athletic fields and facilities, the municipal
swimming pool including improvements to make the pool compliant with the Americans
with Disabilities Act, and indoor regional athletic facilities;
new text end

new text begin (2) improvements to flood control and the levee system;
new text end

new text begin (3) water quality improvement projects in Blue Earth and Nicollet Counties;
new text end

new text begin (4) expansion of the regional transit building and related multimodal transit
improvements;
new text end

new text begin (5) regional public safety and emergency communications improvements and equipment;
and
new text end

new text begin (6) matching funds for improvements to publicly owned regional facilities including a
historic museum, supportive housing, and a senior center.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Mankato and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 5.

Laws 1991, chapter 291, article 8, section 27, subdivision 4, as amended by Laws
2005, First Special Session chapter 3, article 5, section 25, and Laws 2008, chapter 366,
article 7, section 10, is amended to read:


Subd. 4.

Expiration of taxing authority and expenditure limitation.

The authority
granted by subdivisions 1 and 2 to the city to impose a sales tax and an excise tax shall
expire deleted text begin ondeleted text end new text begin at the earlier of when revenues are sufficient to pay off the bonds, including
interest and all other associated bond costs authorized under subdivision 5, or
new text end December
31, deleted text begin 2022deleted text end new text begin 2038new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment without
local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.
new text end

Sec. 6.

Laws 1991, chapter 291, article 8, section 27, subdivision 5, is amended to read:


Subd. 5.

Bonds.

new text begin (a) new text end The city of Mankato may issue general obligation bonds of the city
in an amount not to exceed $25,000,000 for Riverfront 2000 and related facilities, without
election under Minnesota Statutes, chapter 475, on the question of issuance of the bonds or
a tax to pay them. The debt represented by bonds issued for Riverfront 2000 and related
facilities shall not be included in computing any debt limitations applicable to the city of
Mankato, and the levy of taxes required by section 475.61 to pay principal of and interest
on the bonds shall not be subject to any levy limitation or be included in computing or
applying any levy limitation applicable to the city.

new text begin (b) The city of Mankato may issue general obligation bonds of the city in an amount not
to exceed $47,000,000 for the projects listed under subdivision 3, paragraph (b), without
election under Minnesota Statutes, chapter 475, on the question of issuance of the bonds or
a tax to pay them. The debt represented by bonds under this paragraph shall not be included
in computing any debt limitations applicable to the city of Mankato, and the levy of taxes
required by Minnesota Statutes, section 475.61, to pay principal of and interest on the bonds,
and shall not be subject to any levy limitation or be included in computing or applying any
levy limitation applicable to the city. The city may use tax revenue in excess of one year's
principal interest reserve for intended annual bond payments to pay all or a portion of the
cost of capital improvements authorized in subdivision 3.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment without
local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.
new text end

Sec. 7.

Laws 1996, chapter 471, article 2, section 29, subdivision 1, as amended by Laws
2006, chapter 259, article 3, section 3, and Laws 2011, First Special Session chapter 7,
article 4, section 4, is amended to read:


Subdivision 1.

Sales tax authorized.

(a) Notwithstanding Minnesota Statutes, section
477A.016, or any other contrary provision of law, ordinance, or city charter, the city of
Hermantown may, by ordinance, impose an additional sales tax of up to one percent on
sales transactions taxable pursuant to Minnesota Statutes, chapter 297A, that occur within
the city. The proceeds of the tax imposed under this section must be used to meet the costs
of:

(1) extending a sewer interceptor line;

(2) construction of a booster pump station, reservoirs, and related improvements to the
water system; and

(3) construction of a building containing a police and fire station and an Previous administrative Next
services facility.

(b) If the city imposed a sales tax of only one-half of one percent under paragraph (a),
it may increase the tax to one percent to fund the purposes under paragraph (a) provided it
is approved by the voters at a general election held before December 31, 2012.

new text begin (c) As approved by the voters at the November 8, 2016, general election, the proceeds
under this section may also be used to meet the costs of debt service payments for
construction of the Hermantown Wellness Center.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Hermantown and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 8.

Laws 1996, chapter 471, article 2, section 29, subdivision 4, as amended by Laws
2006, chapter 259, article 3, section 4, is amended to read:


Subd. 4.

Termination.

The tax authorized under this section terminates deleted text begin on March 31,
2026
deleted text end new text begin at the earlier of (1) December 31, 2036, or (2) when the Hermantown City Council
first determines that sufficient funds have been received from the tax to fund the costs,
including bonds and associated bond costs for the uses specified in subdivision 1
new text end . Any funds
remaining after completion of the improvements and retirement or redemption of the bonds
may be placed in the general fund of the city.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment without
local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.
new text end

Sec. 9.

Laws 1999, chapter 243, article 4, section 17, subdivision 3, is amended to read:


Subd. 3.

Use of revenues.

new text begin (a) new text end Revenues received from taxes authorized by subdivisions
1 and 2 must be used by the city to pay the cost of collecting the taxes and to pay for
construction and improvement of a civic and community center and recreational facilities
to serve all ages, including seniors and youth. Authorized expenses include, but are not
limited to, acquiring property, paying construction and operating expenses related to the
development of an authorized facility, funding facilities replacement reserves, and paying
debt service on bonds or other obligations issued to finance the construction or expansion
of an authorized facility. The capital expenses for all projects authorized under this
subdivision that may be paid with these taxes are limited to $9,000,000, plus an amount
equal to the costs related to issuance of the bonds and funding facilities replacement reserves.

new text begin (b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and as approved
by the voters at the November 8, 2016, general election, the city of New Ulm may by
ordinance also use revenues from taxes authorized under subdivisions 1 and 2, up to a
maximum of $14,800,000, plus associated bond costs, to pay all or a portion of the expenses
of the following capital projects:
new text end

new text begin (1) constructing an indoor water park and making safety improvements to the existing
recreational center pool;
new text end

new text begin (2) constructing an indoor playground, a wellness center, and a gymnastics facility;
new text end

new text begin (3) constructing a winter multipurpose dome;
new text end

new text begin (4) making improvements to Johnson Park Grandstand; and
new text end

new text begin (5) making improvements to the entrance road and parking at Hermann Heights Park.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of New Ulm and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 10.

Laws 1999, chapter 243, article 4, section 17, is amended by adding a subdivision
to read:


new text begin Subd. 4a. new text end

new text begin Bonding authority; additional use and extension of tax. new text end

new text begin As approved by
the voters at the November 8, 2016, general election, and in addition to the bonds issued
under subdivision 4, the city of New Ulm may issue general obligation bonds of the city in
an amount not to exceed $14,800,000 for the projects listed in subdivision 3, paragraph (b).
The debt represented by bonds under this subdivision shall not be included in computing
any debt limitations applicable to the city of New Ulm, and the levy of taxes required by
Minnesota Statutes, section 475.61, to pay principal of and interest on the bonds, and shall
not be subject to any levy limitation or be included in computing or applying any levy
limitation applicable to the city.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of New Ulm and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 11.

Laws 1999, chapter 243, article 4, section 17, subdivision 5, is amended to read:


Subd. 5.

Termination of taxes.

The taxes imposed under subdivisions 1 and 2 expire
when the city council determines that sufficient funds have been received from the taxes to
finance the capital and Previous administrative Next costs for the acquisition, construction, and improvement
of facilities described in subdivision 3new text begin , including the additional use of revenues under
subdivision 3, paragraph (b), as approved by the voters at the November 8, 2016, general
election
new text end , and to prepay or retire at maturity the principal, interest, and premium due on any
bonds issued for the facilities under deleted text begin subdivision 4deleted text end new text begin subdivisions 4 and 4anew text end . Any funds remaining
after completion of the project and retirement or redemption of the bonds may be placed in
the general fund of the city. The taxes imposed under subdivisions 1 and 2 may expire at
an earlier time if the city so determines by ordinance.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of New Ulm and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 12.

Laws 1999, chapter 243, article 4, section 18, subdivision 1, as amended by Laws
2008, chapter 366, article 7, section 12, is amended to read:


Subdivision 1.

Sales and use tax.

new text begin (a) new text end Notwithstanding Minnesota Statutes, section
477A.016, or any other provision of law, ordinance, or city charter, if approved by the city
voters at the first municipal general election held after the date of final enactment of this
act or at a special election held November 2, 1999, the city of Proctor may impose by
ordinance a sales and use tax of up to one-half of one percent for the purposes specified in
subdivision 3. The provisions of Minnesota Statutes, section 297A.99, govern the imposition,
administration, collection, and enforcement of the tax authorized under this subdivision.

new text begin (b) Notwithstanding Minnesota Statutes, section 477A.016, or any other provision of
law, ordinance, or city charter, the city of Proctor may impose by ordinance an additional
sales and use tax of up to one-half of one percent as approved by the voters at the November
4, 2014, election. The revenues received from the additional tax must be used for the purposes
specified in subdivision 3, paragraph (b).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Proctor and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 13.

Laws 2005, First Special Session chapter 3, article 5, section 38, subdivision 2,
as amended by Laws 2006, chapter 259, article 3, section 6, is amended to read:


Subd. 2.

Use of revenues.

The proceeds of the tax imposed under this section shall be
used to pay for deleted text begin lakedeleted text end new text begin water qualitynew text end improvement projects as detailed in the Shell Rock River
watershed plan and as directed by the Shell Rock River Watershed Board. Notwithstanding
any provision of statute, other law, or city charter to the contrary, the city shall transfer all
revenues from the tax imposed under subdivision 1, as soon as they are received, to the
Shell Rock River Watershed District. deleted text begin The city is not required to review the intended uses
of the revenues by the watershed district, nor is the watershed district required to submit to
the city proposed budgets, statements, or invoices explaining the intended uses of the
revenues as a prerequisite for the transfer of the revenues.
deleted text end new text begin The Shell Rock River Watershed
District shall appear before the city of Albert Lea City Council on a biannual basis to present
a report of its activities, expenditures, and intended uses of the city sales tax revenue.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Albert Lea and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 14.

Laws 2005, First Special Session chapter 3, article 5, section 38, subdivision 4,
as amended by Laws 2014, chapter 308, article 3, section 23, is amended to read:


Subd. 4.

Termination of taxes.

The taxes imposed under this section expire at the earlier
of (1) deleted text begin 15deleted text end new text begin 30new text end years after the taxes are first imposed, or (2) when the city council first
determines that the amount of revenues raised to pay for the projects under subdivision 2,
shall meet or exceed the sum of deleted text begin $15,000,000deleted text end new text begin $30,000,000new text end . Any funds remaining after
completion of the projects may be placed in the general fund of the city.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Albert Lea and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 15.

Laws 2008, chapter 366, article 7, section 20, is amended to read:


Sec. 20. CITY OF NORTH MANKATO; TAXES AUTHORIZED.

Subdivision 1.

Sales and use tax authorized.

Notwithstanding Minnesota Statutes,
section 477A.016, or any other provision of law, ordinance, or city charter, pursuant to the
approval of the voters on November 7, 2006, the city of North Mankato may impose by
ordinance a sales and use tax of one-half of one percent for the purposes specified in
subdivision 2. The provisions of Minnesota Statutes, section 297A.99, govern the imposition,
administration, collection, and enforcement of the taxes authorized under this subdivision.

Subd. 2.

Use of revenues.

Revenues received from the tax authorized by subdivision 1
must be used to pay all or part of the capital costs of the following projects:

(1) the local share of the Trunk Highway 14/County State-Aid Highway 41 interchange
project;

(2) development of regional parks and hiking and biking trailsnew text begin , including construction
of indoor regional athletic facilities
new text end ;

(3) expansion of the North Mankato Taylor Library;

(4) riverfront redevelopment; and

(5) lake improvement projects.

The total amount of revenues from the tax in subdivision 1 that may be used to fund
these projects is deleted text begin $6,000,000deleted text end new text begin $15,000,000new text end plus any associated bond costs.

new text begin Subd. 2a. new text end

new text begin Authorization to extend the tax. new text end

new text begin Notwithstanding Minnesota Statutes, section
297A.99, subdivision 3, the North Mankato city council may, by resolution, extend the tax
authorized under subdivision 1 to cover an additional $9,000,000 in bonds, plus associated
bond costs, to fund the projects in subdivision 2 as approved by the voters at the November
8, 2016, general election.
new text end

Subd. 3.

Bonds.

(a) The city of North Mankato, pursuant to the approval of the voters
at the November 7, 2006 referendum authorizing the imposition of the taxes in this section,
may issue bonds under Minnesota Statutes, chapter 475, to pay capital and Previous administrative Next
expenses for the projects described in subdivision 2, in an amount that does not exceed
$6,000,000. A separate election to approve the bonds under Minnesota Statutes, section
475.58, is not required.

new text begin (b) The city of North Mankato, pursuant to approval of the voters at the November 8,
2016, referendum extending the tax fee to provide additional revenue to be spent for the
projects in subdivision 2, may issue additional bonds under Minnesota Statutes, chapter
475, to pay capital and Previous administrative Next expenses for those projects in an amount that does
not exceed $9,000,000. A separate election to approve the bonds under Minnesota Statutes,
section 475.58, is not required.
new text end

deleted text begin (b)deleted text end new text begin (c)new text end The debt represented by the bonds is not included in computing any debt limitation
applicable to the city, and any levy of taxes under Minnesota Statutes, section 475.61, to
pay principal and interest on the bonds is not subject to any levy limitation.

Subd. 4.

Termination of taxes.

The tax imposed under subdivision 1 expires deleted text begin when the
city council determines that the amount of revenues received from the taxes to pay for the
projects under subdivision 2 first equals or exceeds $6,000,000 plus the additional amount
needed to pay the costs related to issuance of bonds under subdivision 3, including interest
on the bonds
deleted text end new text begin at the earlier of December 31, 2038, or when revenues from the taxes first
equal or exceed $15,000,000 plus the additional amount needed to pay costs related to
issuance of bonds under subdivision 3, including interest
new text end . Any funds remaining after
completion of the projects and retirement or redemption of the bonds shall be placed in a
capital facilities and equipment replacement fund of the city. The tax imposed under
subdivision 1 may expire at an earlier time if the city so determines by ordinance.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of North Mankato and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 16. new text begin CITY OF EAST GRAND FORKS; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city
charter, and as approved by the voters at a special election on March 7, 2016, the city of
East Grand Forks may impose, by ordinance, a sales and use tax of up to one percent for
the purposes specified in subdivision 2. Except as otherwise provided in this section, the
provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
collection, and enforcement of the tax authorized under this subdivision.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city of East Grand Forks to pay the costs of
collecting and administering the tax and to finance the capital and Previous administrative Next costs of
improvement to the city public swimming pool. Authorized expenses include, but are not
limited to, paying construction expenses related to the renovation and the development of
these facilities and improvements, and securing and paying debt service on bonds issued
under subdivision 3 or other obligations issued to finance improvement of the public
swimming pool in the city of East Grand Forks
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of East Grand Forks may issue bonds under
Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities
authorized in subdivision 2. The aggregate principal amount of bonds issued under this
subdivision may not exceed $2,820,000, plus an amount to be applied to the payment of
the costs of issuing the bonds. The bonds may be paid from or secured by any funds available
to the city of East Grand Forks, including the tax authorized under subdivision 1. The
issuance of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60
and 275.61.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the city
of East Grand Forks, and any levy of taxes under Minnesota Statutes, section 475.61, to
pay principal and interest on the bonds is not subject to any levy limitation. A separate
election to approve the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin The tax imposed under subdivision 1 expires at the later
of: (1) five years after the tax is first imposed; or (2) when the city council determines that
$2,820,000 has been received from the tax to pay for the cost of the projects authorized
under subdivision 2, plus an amount sufficient to pay the costs related to issuance of the
bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining
after payment of all such costs and retirement or redemption of the bonds shall be placed
in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier
time if the city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of East Grand Forks and its chief clerical officer comply with Minnesota Statutes,
section 645.021, subdivisions 2 and 3.
new text end

Sec. 17. new text begin CITY OF FAIRMONT; LOCAL TAX AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city
charter, and as approved by the voters at the general election of November 8, 2016, the city
of Fairmont may impose, by ordinance, a sales and use tax of one-half of one percent for
the purposes specified in subdivision 2. Except as otherwise provided in this section, the
provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
collection, and enforcement of the tax authorized under this subdivision.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Fairmont to pay the costs of collecting and
administering the tax and to finance the capital and Previous administrative Next costs of constructing and
funding recreational amenities, trails, and a community center. The total that may be raised
from the tax to pay for these projects is limited to $15,000,000, plus the costs related to the
issuance and paying debt service on bonds for these projects.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of Fairmont may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in
subdivision 2. The aggregate principal amount of bonds issued under this subdivision may
not exceed $15,000,000, plus an amount to be applied to the payment of the costs of issuing
the bonds. The bonds may be paid from or secured by any funds available to the city of
Fairmont, including the tax authorized under subdivision 1. The issuance of bonds under
this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the city
of Fairmont, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
and interest on the bonds is not subject to any levy limitation. A separate election to approve
the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin The tax imposed under subdivision 1 expires at the
earlier of: (1) 25 years after the tax is first imposed; or (2) when the city council determines
that $15,000,000, plus an amount sufficient to pay the costs related to issuing the bonds
authorized under subdivision 3, including interest on the bonds, has been received from the
tax to pay for the cost of the projects authorized under subdivision 2. Any funds remaining
after payment of all such costs and retirement or redemption of the bonds shall be placed
in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier
time if the city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Fairmont and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 18. new text begin CITY OF FERGUS FALLS; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorized. new text end

new text begin Notwithstanding Minnesota Statutes,
section 297A.99, subdivision 1, section 477A.016, or any other law, ordinance, or city
charter, and as approved by the voters at the November 8, 2016, general election, the city
of Fergus Falls may impose, by ordinance, a sales and use tax of up to one-half of one
percent for the purposes specified in subdivision 2. Except as otherwise provided in this
section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition,
administration, collection, and enforcement of the tax authorized under this subdivision.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues from the tax authorized under
subdivision 1 must be used by the city of Fergus Falls to pay the costs of collecting and
administering the tax and securing and paying debt service on bonds issued to finance all
or part of the costs of the expansion and betterment of the Fergus Falls Public Library located
at 205 East Hampden Avenue in the city of Fergus Falls.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of Fergus Falls may issue bonds under
Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the project
authorized in subdivision 2. The aggregate principal amount of bonds issued under this
subdivision may not exceed $9,800,000, plus an amount applied to the payment of costs of
issuing the bonds. The bonds may be paid from or secured by any funds available to the
city of Fergus Falls, including the tax authorized under subdivision 1. The issuance of bonds
under this subdivision is not subject to Minnesota Statutes, section 275.60 and 275.61.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the city,
and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and
interest on the bonds is not subject to any levy limitation. A separate election to approve
the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin The tax imposed under subdivision 1 expires at the
earlier of: (1) 12 years after the tax is first imposed, or (2) when the city council determines
that $9,800,000 has been received from the tax to pay for the cost of the project authorized
under subdivision 2, plus an amount sufficient to pay the costs related to the issuance of the
bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining
after payment of all such costs and retirement or redemption of the bonds shall be placed
in the general fund of the city. The tax imposed under subdivision 1 may expire at any
earlier time if the city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Fergus Falls and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 19. new text begin CITY OF MOOSE LAKE; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
as approved by the voters at the November 6, 2012, general election, the city of Moose Lake
may impose, by ordinance, a sales and use tax of up to one-half of one percent for the
purposes specified in subdivision 2. Except as otherwise provided in this section, the
provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
collection, and enforcement of the tax authorized under this subdivision.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Moose Lake to pay the costs of collecting
and administering the tax and to finance the costs of: (1) improvements to the city's park
system; (2) street and related infrastructure improvements; and (3) municipal arena
improvements. Authorized costs include construction and engineering costs and associated
bond costs.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin The city of Moose Lake may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in
subdivision 2. The aggregate principal amount of bonds issued under this subdivision may
not exceed $3,000,000, plus an amount to be applied to the payment of the costs of issuing
the bonds. The bonds may be paid from or secured by any funds available to the city of
Moose Lake, including the tax authorized under subdivision 1. The issuance of bonds under
this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin The bonds are not included in computing any debt limitation applicable to the city of
Moose Lake, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
and interest on the bonds is not subject to any levy limitation. A separate election to approve
the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin The tax imposed under subdivision 1 expires at the
earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council determines
that $3,000,000 has been received from the tax to pay for the cost of the projects authorized
under subdivision 2, plus an amount sufficient to pay the costs related to issuance of the
bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining
after payment of all such costs and retirement or redemption of the bonds shall be placed
in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier
time if the city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Moose Lake and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 20. new text begin CITY OF NEW LONDON; TAX AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city
charter, and as approved by the voters at the general election of November 8, 2016, the city
of New London may impose, by ordinance, a sales and use tax of one-half of one percent
for the purposes specified in subdivision 2. Except as otherwise provided in this section,
the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
collection, and enforcement of the tax authorized under this subdivision.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city of New London to pay the costs of collecting
and administering the tax and to finance the capital and Previous administrative Next costs of the following
projects:
new text end

new text begin (1) construction and equipping of a new library and community room;
new text end

new text begin (2) construction of an ambulance bay at the fire hall; and
new text end

new text begin (3) improvements to the New London Senior Citizen Center.
new text end

new text begin The total that may be raised from the tax to pay for these projects is limited to $872,000
plus the costs related to the issuance and paying debt service on bonds for these projects.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of New London may issue bonds under
Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities
authorized in subdivision 2. The aggregate principal amount of bonds issued under this
subdivision may not exceed $872,000, plus an amount to be applied to the payment of the
costs of issuing the bonds. The bonds may be paid from or secured by any funds available
to the city of New London, including the tax authorized under subdivision 1. The issuance
of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 and
275.61.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the city
of New London, and any levy of taxes under Minnesota Statutes, section 475.61, to pay
principal and interest on the bonds is not subject to any levy limitation. A separate election
to approve the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin The tax imposed under subdivision 1 expires at the
earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council determines
that $872,000, plus an amount sufficient to pay the costs related to issuing the bonds
authorized under subdivision 3, including interest on the bonds, has been received from the
tax to pay for the cost of the projects authorized under subdivision 2. Any funds remaining
after payment of all such costs and retirement or redemption of the bonds shall be placed
in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier
time if the city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of New London and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 21. new text begin CITY OF SLEEPY EYE; LODGING TAX.
new text end

new text begin Notwithstanding Minnesota Statutes, section 477A.016, or any other provision of law,
ordinance, or city charter, the city council for the city of Sleepy Eye may impose, by
ordinance, a tax of up to two percent on the gross receipts subject to the lodging tax under
Minnesota Statutes, section 469.190. This tax is in addition to any tax imposed under
Minnesota Statutes, section 469.190, and the total tax imposed under that section and this
provision must not exceed five percent. Revenue from the tax imposed under this section
may only be used for the same purposes as a tax imposed under Minnesota Statutes, section
469.190.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Sleepy Eye and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 22. new text begin CITY OF SPICER; TAX AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city
charter, and as approved by the voters at the general election of November 8, 2016, the city
of Spicer may impose, by ordinance, a sales and use tax of one-half of one percent for the
purposes specified in subdivision 2. Except as otherwise provided in this section, the
provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
collection, and enforcement of the tax authorized under this subdivision.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Spicer to pay the costs of collecting and
administering the tax and to finance the capital and Previous administrative Next costs of the following
projects:
new text end

new text begin (1) pedestrian public safety improvements such as a pedestrian bridge or crosswalk
signals at marked Trunk Highway 23;
new text end

new text begin (2) park and trail capital improvements including signage for bicycle share the road
improvements and replacement of playground and related facilities; and
new text end

new text begin (3) capital improvements to regional community facilities such as the Dethelfs roof and
window replacement and the Pioneerland branch library roof replacement.
new text end

new text begin Subd. 3. new text end

new text begin Termination of taxes. new text end

new text begin The tax imposed under subdivision 1 expires at the
earlier of: (1) ten years after the tax is first imposed; or (2) December 31, 2027. All funds
not used to pay collection and administration costs of the tax must be used for projects listed
in subdivision 2. The tax imposed under subdivision 1 may expire at an earlier time if the
city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Spicer and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 23. new text begin CITY OF WALKER; LOCAL TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorized. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any ordinance, city charter, or other provision of law, pursuant to the
approval of the voters at the general election on November 6, 2012, the city of Walker may
impose by ordinance a sales and use tax of 1-1/2 percent for the purposes specified in
subdivision 2. The provisions of Minnesota Statutes, section 297A.99, govern the imposition,
administration, collection, and enforcement of the taxes authorized under this subdivision.
new text end

new text begin Subd. 2. new text end

new text begin Use of revenues. new text end

new text begin Revenues received from the tax authorized by subdivision 1
must be used to pay all or part of the capital and Previous administrative Next costs of underground utility,
street, curb, gutter, and sidewalk improvements in the city of Walker as outlined in the 2012
capital improvement plan of the engineer of the city of Walker.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin The city of Walker, pursuant to the approval of the voters
at the November 6, 2012, referendum authorizing the imposition of the taxes in this section,
may issue bonds under Minnesota Statutes, chapter 475, to pay capital and Previous administrative Next
expenses for the projects described in subdivision 2, in an amount that does not exceed
$20,000,000. A separate election to approve the bonds under Minnesota Statutes, section
475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of tax. new text end

new text begin (a) The tax authorized under subdivision 1 terminates at
the earlier of:
new text end

new text begin (1) 20 years after the date of initial imposition of the tax; or
new text end

new text begin (2) when the city council determines that sufficient funds have been raised from the tax
to finance the capital and Previous administrative Next costs of the improvements described in subdivision
2, plus the additional amount needed to pay the costs related to issuance of bonds under
subdivision 3, including interest on the bonds.
new text end

new text begin (b) Any funds remaining after completion of the projects specified in subdivision 2 and
retirement or redemption of bonds in subdivision 3 shall be placed in the general fund of
the city. The tax imposed under subdivision 1 may expire at an earlier time if the city so
determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Walker and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 24. new text begin CITY OF WINDOM; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorized. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other provision of law, ordinance, or city charter, as approved by
the voters at the general election held on November 8, 2016, the city of Windom may impose
by ordinance a sales and use tax of up to one percent for the purposes specified in subdivision
3. Except as provided in this section, the provisions of Minnesota Statutes, section 297A.99,
govern the imposition, administration, collection, and enforcement of the tax authorized
under this subdivision.
new text end

new text begin Subd. 2. new text end

new text begin Use of revenues. new text end

new text begin The proceeds of the tax imposed under this section must be
used to pay for the cost of collecting the tax and to pay all or a portion of the expenses of
constructing and improving a fire hall and a public safety facility, including any associated
bond costs.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin The city of Windom, pursuant to the approval of the voters
at the referendum authorizing the imposition of tax in this section, may issue bonds under
Minnesota Statutes, chapter 475, to pay capital and Previous administrative Next expenses for the project
described in subdivision 2. A separate election to approve the bonds under Minnesota
Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of tax. new text end

new text begin (a) The tax authorized under subdivision 1 terminates at
the earlier of:
new text end

new text begin (1) 15 years after the date of initial imposition of the tax; or
new text end

new text begin (2) when $3,500,000 has been collected.
new text end

new text begin (b) new text end new text begin Any funds remaining after completion of the projects specified in subdivision 2 may
be placed in the general fund of the city. The tax imposed under subdivision 1 may expire
at an earlier time if the city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Windom and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 25. new text begin CLAY COUNTY; TAX AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law or ordinance, and as
approved by the voters at the November 8, 2016, general election, Clay County may impose,
by ordinance, a sales and use tax of up to one-half of one percent for the purposes specified
in subdivision 2. Except as otherwise provided in this section, the provisions of Minnesota
Statutes, section 297A.99, govern the imposition, administration, collection, and enforcement
of the tax authorized under this subdivision.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by Clay County to pay the costs of collecting and
administering the tax and to finance the capital and Previous administrative Next costs of constructing and
equipping a new correctional facility, law enforcement center, and related parking facility.
Authorized expenses include but are not limited to paying design, development, and
construction costs related to these facilities and improvements, and securing and paying
debt service on bonds issued under subdivision 3 or other obligations issued to finance the
facilities listed in this subdivision.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin Clay County may issue bonds under Minnesota Statutes,
chapter 475, to finance all or a portion of the costs of the facilities authorized in subdivision
2. The aggregate principal amount of bonds issued under this subdivision may not exceed
$52,000,000, plus an amount to be applied to the payment of the costs of issuing the bonds.
The bonds may be paid from or secured by any funds available to Clay County, including
the tax authorized under subdivision 1. The issuance of bonds under this subdivision is not
subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin The tax imposed under subdivision 1 expires at the
earlier of: (1) 20 years after the tax is first imposed; or (2) when the county board determines
that $52,000,000, plus an amount sufficient to pay the costs related to issuance of the bonds
authorized under subdivision 3, including interest on the bonds, has been received from the
tax to pay for the cost of the projects authorized under subdivision 2. Any funds remaining
after payment of all such costs and retirement or redemption of the bonds shall be placed
in the general fund of the county. The tax imposed under subdivision 1 may expire at an
earlier time if the county so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of Clay
County and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 26. new text begin GARRISON, KATHIO, WEST MILLE LACS LAKE SANITARY
DISTRICT; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, and as approved by
the voters at the November 8, 2016, general election, the Garrison, Kathio, West Mille Lacs
Lake Sanitary District may impose, by majority vote of the governing body of the district,
a sales and use tax of up to one percent for the purposes specified in subdivision 2. Except
as otherwise provided in this section, the provisions of Minnesota Statutes, section 297A.99,
govern the imposition, administration, collection, and enforcement of the tax authorized
under this subdivision.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the Garrison, Kathio, West Mille Lacs Lake Sanitary
District to pay the costs of collecting and administering the tax and to repay general obligation
revenue notes issued or other debt incurred for the construction of the wastewater collection
system through the Minnesota Public Facilities Authority, general obligation disposal system
bonds issued to finance the expense incurred in financing construction of sewer system
improvements, and notes payable issued for costs associated with the sewer services
agreement between the Garrison, Kathio, West Mille Lacs Lake Sanitary District and ML
Wastewater Inc., and any other costs associated with system maintenance and improvements,
including extension of the system to unserved customers as determined by the governing
body of the district.
new text end

new text begin Subd. 3. new text end

new text begin Bonds. new text end

new text begin The Garrison, Kathio, West Mille Lacs Lake Sanitary District, pursuant
to the approval of the voters at the November 8, 2016, referendum authorizing the imposition
of the tax under this section, may issue general obligation disposal system bonds for financing
construction of sewer system improvements without a separate election required under
Minnesota Statutes, section 442.25 or 475.58. The amount of bonds that may be issued
without a separate election is equal to $10,000,000 minus the amount of the tax revenue
under this section committed to repay other notes as allowed under subdivision 2.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin The tax imposed under subdivision 1 expires at the
earlier of: (1) 20 years after the tax is first imposed; or (2) when the governing body of the
Garrison, Kathio, West Mille Lacs Lake Sanitary District determines that $10,000,000 has
been received from the tax to pay for the costs authorized under subdivision 2. Any funds
remaining after payment of all such costs and retirement or redemption of the bonds shall
be placed in the general fund of the district. The tax imposed under subdivision 1 may expire
at an earlier time if the governing body of the district so determines.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
Garrison, Kathio, West Mille Lacs Lake Sanitary District and its chief clerical officer comply
with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 27. new text begin EFFECTIVE DATE; VALIDATION OF PRIOR ACT.
new text end

new text begin Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city of
Proctor may approve Laws 2008, chapter 366, article 7, section 13, and Laws 2010, chapter
389, article 5, sections 1 and 2, and file its approval with the secretary of state by January
1, 2015. If approved under this paragraph, actions undertaken by the city pursuant to the
approval of the voters on November 2, 2010, and otherwise in accordance with those laws
are validated.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Proctor and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

ARTICLE 8

TAX INCREMENT FINANCING

Section 1.

Minnesota Statutes 2016, section 469.174, subdivision 12, is amended to read:


Subd. 12.

Economic development district.

"Economic development district" means a
type of tax increment financing district which consists of any project, or portions of a project,
which the authority finds to be in the public interest because:

(1) it will discourage commerce, industry, or manufacturing from moving their operations
to another state or municipality; deleted text begin or
deleted text end

(2) it will result in increased employment in the state; deleted text begin or
deleted text end

(3) it will result in preservation and enhancement of the tax base of the statenew text begin ; or
new text end

new text begin (4) it satisfies the requirements of a workforce housing project under section 469.176,
subdivision 4c, paragraph (d)
new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for districts for which the request for
certification was made after June 30, 2017.
new text end

Sec. 2.

Minnesota Statutes 2016, section 469.175, subdivision 3, is amended to read:


Subd. 3.

Municipality approval.

(a) A county auditor shall not certify the original net
tax capacity of a tax increment financing district until the tax increment financing plan
proposed for that district has been approved by the municipality in which the district is
located. If an authority that proposes to establish a tax increment financing district and the
municipality are not the same, the authority shall apply to the municipality in which the
district is proposed to be located and shall obtain the approval of its tax increment financing
plan by the municipality before the authority may use tax increment financing. The
municipality shall approve the tax increment financing plan only after a public hearing
thereon after published notice in a newspaper of general circulation in the municipality at
least once not less than ten days nor more than 30 days prior to the date of the hearing. The
published notice must include a map of the area of the district from which increments may
be collected and, if the project area includes additional area, a map of the project area in
which the increments may be expended. The hearing may be held before or after the approval
or creation of the project or it may be held in conjunction with a hearing to approve the
project.

(b) Before or at the time of approval of the tax increment financing plan, the municipality
shall make the following findings, and shall set forth in writing the reasons and supporting
facts for each determination:

(1) that the proposed tax increment financing district is a redevelopment district, a
renewal or renovation district, a housing district, a soils condition district, or an economic
development district; if the proposed district is a redevelopment district or a renewal or
renovation district, the reasons and supporting facts for the determination that the district
meets the criteria of section 469.174, subdivision 10, paragraph (a), clauses (1) and (2), or
subdivision 10a, must be documented in writing and retained and made available to the
public by the authority until the district has been terminated;

(2) that, in the opinion of the municipality:

(i) the proposed development or redevelopment would not reasonably be expected to
occur solely through private investment within the reasonably foreseeable future; and

(ii) the increased market value of the site that could reasonably be expected to occur
without the use of tax increment financing would be less than the increase in the market
value estimated to result from the proposed development after subtracting the present value
of the projected tax increments for the maximum duration of the district permitted by the
plan. The requirements of this item do not apply if the district is a housing district;

(3) that the tax increment financing plan conforms to the general plan for the development
or redevelopment of the municipality as a whole;

(4) that the tax increment financing plan will afford maximum opportunity, consistent
with the sound needs of the municipality as a whole, for the development or redevelopment
of the project by private enterprise;

(5) that the municipality elects the method of tax increment computation set forth in
section 469.177, subdivision 3, paragraph (b), if applicable.

(c) When the municipality and the authority are not the same, the municipality shall
approve or disapprove the tax increment financing plan within 60 days of submission by
the authority. When the municipality and the authority are not the same, the municipality
may not amend or modify a tax increment financing plan except as proposed by the authority
pursuant to subdivision 4. Once approved, the determination of the authority to undertake
the project through the use of tax increment financing and the resolution of the governing
body shall be conclusive of the findings therein and of the public need for the financing.

(d) For a district that is subject to the requirements of paragraph (b), clause (2), item
(ii), the municipality's statement of reasons and supporting facts must include all of the
following:

(1) an estimate of the amount by which the market value of the site will increase without
the use of tax increment financing;

(2) an estimate of the increase in the market value that will result from the development
or redevelopment to be assisted with tax increment financing; and

(3) the present value of the projected tax increments for the maximum duration of the
district permitted by the tax increment financing plan.

(e) For purposes of this subdivision, "site" means the parcels on which the development
or redevelopment to be assisted with tax increment financing will be located.

new text begin (f) Before or at the time of approval of the tax increment financing plan for a district to
be used to fund a workforce housing project under section 469.176, subdivision 4c, paragraph
(d), the municipality shall make the following findings and set forth in writing the reasons
and supporting facts for each determination:
new text end

new text begin (1) the city is located outside of the metropolitan area, as defined in section 473.121,
subdivision 2;
new text end

new text begin (2) the average vacancy rate for rental housing located in the municipality and in any
statutory or home rule charter city located within 15 miles or less of the boundaries of the
municipality has been three percent or less for at least the immediately preceding two-year
period;
new text end

new text begin (3) at least one business located in the municipality or within 15 miles of the municipality
that employs a minimum of 20 full-time equivalent employees in aggregate has provided a
written statement to the municipality indicating that the lack of available rental housing has
impeded the ability of the business to recruit and hire employees; and
new text end

new text begin (4) the municipality and the development authority intend to use increments from the
district for the development of rental housing to serve employees of businesses located in
the municipality or surrounding area.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for districts for which the request for
certification was made after June 30, 2017.
new text end

Sec. 3.

Minnesota Statutes 2016, section 469.176, subdivision 4c, is amended to read:


Subd. 4c.

Economic development districts.

(a) Revenue derived from tax increment
from an economic development district may not be used to provide improvements, loans,
subsidies, grants, interest rate subsidies, or assistance in any form to developments consisting
of buildings and ancillary facilities, if more than 15 percent of the buildings and facilities
(determined on the basis of square footage) are used for a purpose other than:

(1) the manufacturing or production of tangible personal property, including processing
resulting in the change in condition of the property;

(2) warehousing, storage, and distribution of tangible personal property, excluding retail
sales;

(3) research and development related to the activities listed in clause (1) or (2);

(4) telemarketing if that activity is the exclusive use of the property;

(5) tourism facilities; deleted text begin or
deleted text end

(6) space necessary for and related to the activities listed in clauses (1) to (5)new text begin ; or
new text end

new text begin (7) a workforce housing project that satisfies the requirements of paragraph (d)new text end .

(b) Notwithstanding the provisions of this subdivision, revenues derived from tax
increment from an economic development district may be used to provide improvements,
loans, subsidies, grants, interest rate subsidies, or assistance in any form for up to 15,000
square feet of any separately owned commercial facility located within the municipal
jurisdiction of a small city, if the revenues derived from increments are spent only to assist
the facility directly or for Previous administrative Next expenses, the assistance is necessary to develop
the facility, and all of the increments, except those for Previous administrative Next expenses, are spent
only for activities within the district.

(c) A city is a small city for purposes of this subdivision if the city was a small city in
the year in which the request for certification was made and applies for the rest of the
duration of the district, regardless of whether the city qualifies or ceases to qualify as a
small city.

new text begin (d) A project qualifies as a workforce housing project under this subdivision if:
new text end

new text begin (1) increments from the district are used exclusively to assist in the acquisition of
property; construction of improvements; and provision of loans or subsidies, grants, interest
rate subsidies, public infrastructure, and related financing costs for rental housing
developments in the municipality; and
new text end

new text begin (2) the governing body of the municipality made the findings for the project required
by section 469.175, subdivision 3, paragraph (f).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for districts for which the request for
certification was made after June 30, 2017.
new text end

Sec. 4.

Minnesota Statutes 2016, section 469.1761, is amended by adding a subdivision
to read:


new text begin Subd. 5. new text end

new text begin Income limits; Minnesota Housing Finance Agency challenge program.
new text end

new text begin For a project receiving a loan or grant from the Minnesota Housing Finance Agency challenge
program under section 462A.33, the income limits under section 462A.33 are substituted
for the applicable income limits for the project under subdivision 2 or 3.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for districts for which the request for
certification was made after June 30, 2017.
new text end

Sec. 5.

Minnesota Statutes 2016, section 469.1763, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have
the meanings given.

(b) "Activities" means acquisition of property, clearing of land, site preparation, soils
correction, removal of hazardous waste or pollution, installation of utilities, construction
of public or private improvements, and other similar activities, but only to the extent that
tax increment revenues may be spent for such purposes under other law.

(c) "Third party" means an entity other than (1) the person receiving the benefit of
assistance financed with tax increments, or (2) the municipality or the development authority
or other person substantially under the control of the municipality.

(d) "Revenues derived from tax increments paid by properties in the district" means only
tax increment as defined in section 469.174, subdivision 25, clause (1), and does not include
tax increment as defined in section 469.174, subdivision 25, clauses (2)deleted text begin , (3), and (4)deleted text end new text begin to (5)new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2016, section 469.1763, subdivision 2, is amended to read:


Subd. 2.

Expenditures outside district.

(a) For each tax increment financing district,
an amount equal to at least 75 percent of the total revenue derived from tax increments paid
by properties in the district must be expended on activities in the district or to pay bonds,
to the extent that the proceeds of the bonds were used to finance activities in the district or
to pay, or secure payment of, debt service on credit enhanced bonds. For districts, other
than redevelopment districts for which the request for certification was made after June 30,
1995, the in-district percentage for purposes of the preceding sentence is 80 percent. Not
more than 25 percent of the total revenue derived from tax increments paid by properties
in the district may be expended, through a development fund or otherwise, on activities
outside of the district but within the defined geographic area of the project except to pay,
or secure payment of, debt service on credit enhanced bonds. For districts, other than
redevelopment districts for which the request for certification was made after June 30, 1995,
the pooling percentage for purposes of the preceding sentence is 20 percent. The deleted text begin revenuedeleted text end new text begin
revenues
new text end derived from tax increments deleted text begin fordeleted text end new text begin paid by properties innew text end the district that are expended
on costs under section 469.176, subdivision 4h, paragraph (b), may be deducted first before
calculating the percentages that must be expended within and without the district.

(b) In the case of a housing district, a housing project, as defined in section 469.174,
subdivision 11
, is an activity in the district.

(c) All Previous administrative Next expenses are for activities outside of the district, except that if the
only expenses for activities outside of the district under this subdivision are for the purposes
described in paragraph (d), Previous administrative Next expenses will be considered as expenditures for
activities in the district.

(d) The authority may elect, in the tax increment financing plan for the district, to increase
by up to ten percentage points the permitted amount of expenditures for activities located
outside the geographic area of the district under paragraph (a). As permitted by section
469.176, subdivision 4k, the expenditures, including the permitted expenditures under
paragraph (a), need not be made within the geographic area of the project. Expenditures
that meet the requirements of this paragraph are legally permitted expenditures of the district,
notwithstanding section 469.176, subdivisions 4b, 4c, and 4j. To qualify for the increase
under this paragraph, the expenditures must:

(1) be used exclusively to assist housing that meets the requirement for a qualified
low-income building, as that term is used in section 42 of the Internal Revenue Code; and

(2) not exceed the qualified basis of the housing, as defined under section 42(c) of the
Internal Revenue Code, less the amount of any credit allowed under section 42 of the Internal
Revenue Code; and

(3) be used to:

(i) acquire and prepare the site of the housing;

(ii) acquire, construct, or rehabilitate the housing; or

(iii) make public improvements directly related to the housing; or

(4) be used to develop housing:

(i) if the market value of the housing does not exceed the lesser of:

(A) 150 percent of the average market value of single-family homes in that municipality;
or

(B) $200,000 for municipalities located in the metropolitan area, as defined in section
473.121, or $125,000 for all other municipalities; and

(ii) if the expenditures are used to pay the cost of site acquisition, relocation, demolition
of existing structures, site preparation, and pollution abatement on one or more parcels, if
the parcel contains a residence containing one to four family dwelling units that has been
vacant for six or more months and is in foreclosure as defined in section 325N.10, subdivision
7
, but without regard to whether the residence is the owner's principal residence, and only
after the redemption period has expired.

(e) The authority under paragraph (d), clause (4), expires on December 31, 2016.
Increments may continue to be expended under this authority after that date, if they are used
to pay bonds or binding contracts that would qualify under subdivision 3, paragraph (a), if
December 31, 2016, is considered to be the last date of the five-year period after certification
under that provision.

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

Minnesota Statutes 2016, section 469.1763, subdivision 3, is amended to read:


Subd. 3.

Five-year rule.

(a) Revenues derived from tax increments new text begin paid by properties
in the district
new text end are considered to have been expended on an activity within the district under
subdivision 2 only if one of the following occurs:

(1) before or within five years after certification of the district, the revenues are actually
paid to a third party with respect to the activity;

(2) bonds, the proceeds of which must be used to finance the activity, are issued and
sold to a third party before or within five years after certification, the revenues are spent to
repay the bonds, and the proceeds of the bonds either are, on the date of issuance, reasonably
expected to be spent before the end of the later of (i) the five-year period, or (ii) a reasonable
temporary period within the meaning of the use of that term under section 148(c)(1) of the
Internal Revenue Code, or are deposited in a reasonably required reserve or replacement
fund;

(3) binding contracts with a third party are entered into for performance of the activity
before or within five years after certification of the district and the revenues are spent under
the contractual obligation;

(4) costs with respect to the activity are paid before or within five years after certification
of the district and the revenues are spent to reimburse a party for payment of the costs,
including interest on unreimbursed costs; or

(5) expenditures are made for housing purposes as permitted by subdivision 2, paragraphs
(b) and (d), or for public infrastructure purposes within a zone as permitted by subdivision
2, paragraph (e).

(b) For purposes of this subdivision, bonds include subsequent refunding bonds if the
original refunded bonds meet the requirements of paragraph (a), clause (2).

(c) For a redevelopment district or a renewal and renovation district certified after June
30, 2003, and before April 20, 2009, the five-year periods described in paragraph (a) are
extended to ten years after certification of the district. For a redevelopment district certified
after April 20, 2009, and before June 30, 2012, the five-year periods described in paragraph
(a) are extended to eight years after certification of the district. This extension is provided
primarily to accommodate delays in development activities due to unanticipated economic
circumstances.

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Minnesota Statutes 2016, section 469.178, subdivision 7, is amended to read:


Subd. 7.

Interfund loans.

new text begin (a) new text end The authority or municipality may advance or loan money
to finance expenditures under section 469.176, subdivision 4, from its general fund or any
other fund under which it has legal authority to do so.

new text begin (b) Not later than 60 days after money is transferred, advanced, or spent, whichever is
earliest,
new text end the loan or advance must be authorizeddeleted text begin ,deleted text end by resolution of the governing body or of
the authority, whichever has jurisdiction over the fund from which the advance or loan is
authorizeddeleted text begin , before money is transferred, advanced, or spent, whichever is earliestdeleted text end .

new text begin (c)new text end The resolution may generally grant to new text begin the municipality or new text end the authority the power to
make interfund loans under one or more tax increment financing plans or for one or more
districts.new text begin The resolution may be adopted before or after the adoption of the tax increment
financing plan or the creation of the tax increment financing district from which the advance
or loan is to be repaid.
new text end

new text begin (d)new text end The terms and conditions for repayment of the loan must be provided in writing deleted text begin anddeleted text end new text begin .
The written terms and conditions may be in any form, but must
new text end include, at a minimum, the
principal amount, the interest rate, and maximum term.new text begin Written terms may be modified or
amended in writing by the municipality or the authority before the latest decertification of
any tax increment financing district from which the interfund loan is to be repaid.
new text end The
maximum rate of interest permitted to be charged is limited to the greater of the rates
specified under section 270C.40 or 549.09 as of the date the loan or advance is authorized,
unless the written agreement states that the maximum interest rate will fluctuate as the
interest rates specified under section 270C.40 or 549.09 are from time to time adjusted.new text begin
Loans or advances may be structured as draw-down or line-of-credit obligations of the
lending fund.
new text end

new text begin (e) The authority shall report in the annual report submitted under section 469.175,
subdivision 6:
new text end

new text begin (1) the amount of any interfund loan or advance made in a calendar year; and
new text end

new text begin (2) any amendment of an interfund loan or advance made in a calendar year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to all districts, regardless of when the request for certification was made.
new text end

Sec. 9.

Laws 2008, chapter 154, article 9, section 21, subdivision 2, is amended to read:


Subd. 2.

Special rules.

(a) If the city elects, upon the adoption of the tax increment
financing plan for a district, the rules under this section apply to a redevelopment district,
renewal and renovation district, new text begin economic development district, new text end soil condition district, or
a soil deficiency district established by the city or a development authority of the city in the
project area.

(b) Prior to or upon the adoption of the first tax increment plan subject to the special
rules under this subdivision, the city must find by resolution that parcels consisting of at
least 80 percent of the acreage of the project area (excluding street and railroad right of
way) are characterized by one or more of the following conditions:

(1) peat or other soils with geotechnical deficiencies that impair development of
residential or commercial buildings or infrastructure;

(2) soils or terrain that requires substantial filling in order to permit the development of
commercial or residential buildings or infrastructure;

(3) landfills, dumps, or similar deposits of municipal or private waste;

(4) quarries or similar resource extraction sites;

(5) floodway; and

(6) substandard buildings within the meaning of Minnesota Statutes, section 469.174,
subdivision 10
.

(c) For the purposes of paragraph (b), clauses (1) through (5), a parcel is deemed to be
characterized by the relevant condition if at least 70 percent of the area of the parcel contains
the relevant condition. For the purposes of paragraph (b), clause (6), a parcel is deemed to
be characterized by substandard buildings if the buildings occupy at least 30 percent of the
area of the parcel.

(d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to ten years for any district, and section 469.1763, subdivision 4, does not apply
to any district.

(e) Notwithstanding anything to the contrary in section 469.1763, subdivision 2, paragraph
(a), not more than 80 percent of the total revenue derived from tax increments paid by
properties in any district (measured over the life of the district) may be expended on activities
outside the district but within the project area.

(f) For a soil deficiency district:

(1) increments may be collected through 20 years after the receipt by the authority of
the first increment from the district; and

(2) except as otherwise provided in this subdivision, increments may be used only to:

(i) acquire parcels on which the improvements described in item (ii) will occur;

(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the additional
cost of installing public improvements directly caused by the deficiencies; and

(iii) pay for the Previous administrative Next expenses of the authority allocable to the district.

(g) Increments spent for any infrastructure costs, whether inside a district or outside a
district but within the project area, are deemed to satisfy the requirements of paragraph (f)
and Minnesota Statutes, section 469.176, subdivisions 4bnew text begin , 4c,new text end and 4j.

(h) Increments from any district may not be used to pay the costs of landfill closure or
public infrastructure located on the following parcels within the plat known as Burnsville
Amphitheater: Lot 1, Block 1; Lots 1 and 2, Block 2; and Outlots A, B, C and D.

(i) new text begin The four-year rule under Minnesota Statutes, section 469.176, subdivision 6, is
extended to nine years.
new text end

new text begin (j) The city may specify in the tax increment financing plan for any district the first year
in which it elects to receive increment, which may be up to eight years following approval
of the district.
new text end

new text begin (k) Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, paragraph (c),
the city may waive any increment received in 2017 and, if so, it shall not be used in
determining the duration limit for any district created under this section.
new text end

new text begin (l) new text end The authority to approve tax increment financing plans to establish tax increment
financing districts under this section expires on deleted text begin December 31, 2018deleted text end new text begin March 20, 2023new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the governing body
of the city of Burnsville and compliance with the requirements of Minnesota Statutes, section
645.021.
new text end

Sec. 10.

Laws 2009, chapter 88, article 5, section 17, as amended by Laws 2010, chapter
382, section 84, is amended to read:


Sec. 17. SEAWAY PORT AUTHORITY OF DULUTH; TAX INCREMENT
FINANCING DISTRICT; SPECIAL RULES.

(a) If the Seaway Port Authority of Duluth adopts a tax increment financing plan and
the governing body of the city of Duluth approves the plan for the tax increment financing
district consisting of one or more parcels identified as: 010-2730-00010; 010-2730-00020;
010-2730-00040; 010-2730-00050; 010-2730-00070; 010-2730-00080; 010-2730-00090;
010-2730-00100; new text begin 010-02730-00120; 010-02730-00130; 010-02730-00140; new text end 010-2730-00160;
010-2730-00180; 010-2730-00200; 010-2730-00300;new text begin 010-02730-00320; new text end 010-2746-01250;
010-2746-1330; 010-2746-01340; 010-2746-01350; 010-2746-1440; 010-2746-1380;
010-2746-01490; 010-2746-01500; 010-2746-01510; 010-2746-01520; 010-2746-01530;
010-2746-01540; 010-2746-01550; 010-2746-01560; 010-2746-01570; 010-2746-01580;
010-2746-01590; 010-3300-4560; 010-3300-4565; 010-3300-04570; 010-3300-04580;
010-3300-04640; 010-3300-04645; and 010-3300-04650, the five-year rule under Minnesota
Statutes, section 469.1763, subdivision 3, that activities must be undertaken within a five-year
period from the date of certification of the tax increment financing district, must be
considered to be met if the activities are undertaken within five years after the date all
qualifying parcels are delisted from the Previous Federal Next Superfund list.

(b) The requirements of Minnesota Statutes, section 469.1763, subdivision 4, beginning
in the sixth year following certification of the district requirement, will begin in the sixth
year following the date all qualifying parcels are delisted from the Previous Federal Next Superfund list.

(c) The action required under Minnesota Statutes, section 469.176, subdivision 6, are
satisfied if the action is commenced within four years after the date all qualifying parcels
are delisted from the Previous Federal Next Superfund list and evidence of the action required is submitted
to the county auditor by February 1 of the fifth year following the year in which all qualifying
parcels are delisted from the Previous Federal Next Superfund list.

(d) For purposes of this section, "qualifying parcels" means United States Steel parcels
listed in paragraph (a) and shown by the Minnesota Pollution Control Agency as part of the
deleted text begin USSdeleted text end new text begin St. Louis River-U.S. Steel Superfundnew text end Site (USEPA OU 02) that are included in the
tax increment financing district.

(e) In addition to the reporting requirements of Minnesota Statutes, section 469.175,
subdivision 5
, the Seaway Port Authority of Duluth shall report the status of all parcels
listed in paragraph (a) and shown as part of the deleted text begin USSdeleted text end new text begin St. Louis River-U.S. Steel Superfundnew text end
Site (USEPA OU 02). The status report must show the parcel numbers, the listed or delisted
status, and if delisted, the delisting date.

new text begin (f) Notwithstanding Minnesota Statutes, section 469.178, subdivision 7, or any other
law to the contrary, the Seaway Port Authority of Duluth may establish an interfund loan
program before approval of the tax increment financing plan for or the establishment of the
district authorized by this section. The authority may make loans under this program. The
proceeds of the loans may be used for any permitted use of increments under this law or
Minnesota Statutes, section 469.176, for the district and may be repaid with increments
from the district established under this section. This paragraph applies to any action
authorized by the Seaway Port Authority of Duluth on or after March 25, 2010.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Duluth and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivision 3.
new text end

Sec. 11.

Laws 2014, chapter 308, article 6, section 8, subdivision 1, is amended to read:


Subdivision 1.

Authority to create districts.

(a) The governing body of the city of
Edina or its development authority may establish one or more tax increment financing
housing districts in the Southeast Edina Redevelopment Project Area, as the boundaries
exist on March 31, 2014.

(b) The authority to request certification of districts under this section expires on June
30, deleted text begin 2017deleted text end new text begin 2020new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective on the day following final enactment
without local approval under Minnesota Statutes, section 645.023, subdivision 1, paragraph
(a).
new text end

Sec. 12.

Laws 2014, chapter 308, article 6, section 9, is amended to read:


Sec. 9. CITY OF MAPLE GROVE; TAX INCREMENT FINANCING DISTRICT.

Subdivision 1.

Definitions.

(a) For the purposes of this section, the following terms have
the meanings given them.

(b) "City" means the city of Maple Grove.

(c) "Project area" means new text begin all or a portion of new text end the area in the city commencing at a point
130 feet East and 120 feet North of the southwest corner of the Southeast Quarter of Section
23, Township 119, Range 22, Hennepin County, said point being on the easterly right-of-way
line of Hemlock Lane; thence northerly along said easterly right-of-way line of Hemlock
Lane to a point on the west line of the east one-half of the Southeast Quarter of section 23,
thence south along said west line a distance of 1,200 feet; thence easterly to the east line of
Section 23, 1,030 feet North from the southeast corner thereof; thence South 74 degrees
East 1,285 feet; thence East a distance of 1,000 feet; thence North 59 degrees West a distance
of 650 feet; thence northerly to a point on the northerly right-of-way line of 81st Avenue
North, 650 feet westerly measured at right angles, from the east line of the Northwest Quarter
of Section 24; thence North 13 degrees West a distance of 795 feet; thence West to the west
line of the Southeast Quarter of the Northwest Quarter of Section 24; thence North 55
degrees West to the south line of the Northwest Quarter of the Northwest Quarter of Section
24; thence West along said south line to the east right-of-way line of Zachary Lane; thence
North along the east right-of-way line of Zachary Lane to the southwest corner of Lot 1,
Block 1, Metropolitan Industrial Park 5th Addition; thence East along the south line of said
Lot 1 to the northeast corner of Outlot A, Metropolitan Industrial Park 5th Addition; thence
South along the east line of said Outlot A and its southerly extension to the south right-of-way
line of County State-Aid Highway (CSAH) 109; thence easterly along the south right-of-way
line of CSAH 109 to the east line of the Northwest Quarter of the Northeast Quarter of
Section 24; thence South along said east line to the north line of the South Half of the
Northeast Quarter of Section 24; thence East along said north line to the westerly right-of-way
line of Jefferson Highway North; thence southerly along the westerly right-of-way line of
Jefferson Highway to the centerline of CSAH 130; thence continuing South along the west
right-of-way line of Pilgrim Lane North to the westerly extension of the north line of Outlot
A, Park North Fourth Addition; thence easterly along the north line of Outlot A, Park North
Fourth Addition to the northeast corner of said Outlot A; thence southerly along the east
line of said Outlot A to the southeast corner of said Outlot A; thence easterly along the south
line of Lot 1, Block 1, Park North Fourth Addition to the westerly right-of-way line of State
Highway 169; thence southerly, southwesterly, westerly, and northwesterly along the
westerly right-of-way line of State Highway 169 and the northerly right-of-way line of
Interstate 694 to its intersection with the southerly extension of the easterly right-of-way
line of Zachary Lane North; thence northerly along the easterly right-of-way line of Zachary
Lane North and its northerly extension to the north right-of-way line of CSAH 130; thence
westerly, southerly, northerly, southwesterly, and northwesterly to the point of beginning
and there terminating, provided that the project area includes the rights-of-way for all present
and future highway interchanges abutting the area described in this paragraphnew text begin , and may
include any additional property necessary to cause the property included in the tax increment
financing district to consist of complete parcels
new text end .

(d) "Soil deficiency district" means a type of tax increment financing district consisting
of a portion of the project area in which the city finds by resolution that the following
conditions exist:

(1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage in
the district require substantial filling, grading, or other physical preparation for use; and

(2) the estimated cost of the physical preparation under clause (1), but excluding costs
directly related to roads as defined in Minnesota Statutes, section 160.01, and local
improvements as described in Minnesota Statutes, sections 429.021, subdivision 1, clauses
(1) to (7), (11), and (12), and 430.01, exceeds the fair market value of the land before
completion of the preparation.

Subd. 2.

Special rules.

(a) If the city elects, upon the adoption of the tax increment
financing plan for a district, the rules under this section apply to a redevelopment district,
renewal and renovation district, soil condition district, or soil deficiency district established
by the city or a development authority of the city in the project area.

(b) Prior to or upon the adoption of the first tax increment plan subject to the special
rules under this subdivision, the city must find by resolution that parcels consisting of at
least 80 percent of the acreage of the project area, excluding street and railroad rights-of-way,
are characterized by one or more of the following conditions:

(1) peat or other soils with geotechnical deficiencies that impair development of
commercial buildings or infrastructure;

(2) soils or terrain that require substantial filling in order to permit the development of
commercial buildings or infrastructure;

(3) landfills, dumps, or similar deposits of municipal or private waste;

(4) quarries or similar resource extraction sites;

(5) floodway; and

(6) substandard buildings, within the meaning of Minnesota Statutes, section 469.174,
subdivision 10
.

(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by the
relevant condition if at least 70 percent of the area of the parcel contains the relevant
condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by
substandard buildings if substandard buildings occupy at least 30 percent of the area of the
parcel.

(d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to eight years for any district, and Minnesota Statutes, section 469.1763, subdivision
4
, does not apply to any district.

(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section 469.1763,
subdivision 2
, paragraph (a), not more than 40 percent of the total revenue derived from tax
increments paid by properties in any district, measured over the life of the district, may be
expended on activities outside the district but within the project area.

(f) For a soil deficiency district:

(1) increments may be collected through 20 years after the receipt by the authority of
the first increment from the district;

(2) increments may be used only to:

(i) acquire parcels on which the improvements described in item (ii) will occur;

(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the additional
cost of installing public improvements directly caused by the deficiencies; and

(iii) pay for the Previous administrative Next expenses of the authority allocable to the district; and

(3) any parcel acquired with increments from the district must be sold at no less than
their fair market value.

(g) Increments spent for any infrastructure costs, whether inside a district or outside a
district but within the project area, are deemed to satisfy the requirements of Minnesota
Statutes, section 469.176, subdivision 4j.

(h) The authority to approve tax increment financing plans to establish tax increment
financing districts under this section expires June 30, 2020.

new text begin (i) Notwithstanding the restrictions in paragraph (f), clause (2), the city may use
increments from a soil deficiency district to acquire parcels and for other infrastructure costs
either inside or outside of the district, but within the project area, if the acquisition or
infrastructure is for a qualified development. For purposes of this paragraph, a development
is a qualified development only if all of the following requirements are satisfied:
new text end

new text begin (1) the city finds, by resolution, that the land acquisition and infrastructure are undertaken
primarily to serve the development;
new text end

new text begin (2) the city has a binding, written commitment and adequate financial assurances from
the developer that the development will be constructed; and
new text end

new text begin (3) the development does not consist of retail trade or housing improvements.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the governing body
of the city of Maple Grove and its compliance with the requirements of Minnesota Statutes,
section 645.021.
new text end

Sec. 13. new text begin CITY OF ANOKA; GREENS OF ANOKA TIF DISTRICT.
new text end

new text begin For purposes of Minnesota Statutes, section 469.1763, subdivision 3, paragraph (c), the
city of Anoka's Greens of Anoka redevelopment tax increment financing district is deemed
to be certified on June 29, 2012, rather than its actual certification date of July 2, 2012, and
the provisions of Minnesota Statutes, section 469.1763, subdivisions 3 and 4, apply as if
the district were certified on that date.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the governing body
of the city of Anoka and upon compliance by the city with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 14. new text begin CITY OF COON RAPIDS; TIF DISTRICT 6-1; PORT RIVERWALK.
new text end

new text begin Notwithstanding the provisions of Minnesota Statutes, section 469.176, subdivision 1b,
or any other law to the contrary, the city of Coon Rapids may collect tax increment from
District 6-1 Port Riverwalk through December 31, 2038.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon compliance by the governing bodies
of the city of Coon Rapids, Anoka County, and Independent School District No. 11 with
the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021,
subdivision 3.
new text end

Sec. 15. new text begin CITY OF COTTAGE GROVE; TIF DISTRICT 1-12; GATEWAY NORTH.
new text end

new text begin The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that activities
must be undertaken within a five-year period from the date of certification of a tax increment
financing district, is considered to be met for Tax Increment Financing District No. 1-12
(Gateway North), administered by the Cottage Grove Economic Development Authority,
if the activities are undertaken prior to January 1, 2017.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon compliance by the chief clerical
officer of the governing body of the city of Cottage Grove with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 16. new text begin CITY OF EDINA; APPROVAL OF 2014 SPECIAL LAW.
new text end

new text begin Notwithstanding the provisions of Minnesota Statutes, section 645.021, subdivision 3,
the chief clerical officer of the city of Edina may file with the secretary of state certificate
of approval of Laws 2014, chapter 308, article 6, section 8, by December 31, 2017, and, if
the certificate is so filed and the requirements of Minnesota Statutes, section 645.021,
subdivision 3, are otherwise complied with, the special law is deemed approved, and all
actions taken by the city before the effective date of this section in reliance on Laws 2014,
chapter 308, article 6, section 8, are deemed consistent with Laws 2014, chapter 308, article
6, section 8, and this act.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment without
local approval as an amendment to the provisions of Laws 2014, chapter 308, article 6,
section 8.
new text end

Sec. 17. new text begin CITY OF MOORHEAD; TIF DISTRICT; FIRST AVENUE NORTH.
new text end

new text begin For purposes of Minnesota Statutes, section 469.1763, subdivision 3, paragraph (c), the
city of Moorhead's 1st Avenue North (Central Corridors) Redevelopment Tax Increment
Financing District is deemed to be certified on June 29, 2012, rather than its actual
certification date of July 12, 2012, and Minnesota Statutes, section 469.1763, subdivisions
3 and 4, apply as if the district were certified on that date.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the governing body
of the city of Moorhead and upon compliance by the city with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 18. new text begin CITY OF RICHFIELD; EXTENSION OF CEDAR AVENUE TIF
DISTRICT.
new text end

new text begin Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, or any other law
to the contrary, the city of Richfield and the Housing and Redevelopment Authority in and
for the city of Richfield may elect to extend the duration limit of the redevelopment tax
increment financing district known as the Cedar Avenue Tax Increment Financing District
established by Laws 2005, chapter 152, article 2, section 25, by ten years.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon compliance by the city of Richfield,
Hennepin County, and Independent School District No. 280 with the requirements of
Minnesota Statutes, sections 469.1782, subdivision 2; and 645.021, subdivisions 2 and 3.
new text end

Sec. 19. new text begin CITY OF RICHFIELD; LYNDALE GARDENS TIF DISTRICT.
new text end

new text begin The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that activities
must be undertaken within a five-year period from the date of certification of a tax increment
financing district, are considered to be met for the Lyndale Gardens Tax Increment Financing
District established by the city of Richfield and the housing and redevelopment authority
in and for the city of Richfield if the activities are undertaken within eight years from the
date of certification.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This act is effective upon the city of Richfield's compliance with
the requirements of Minnesota Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 20. new text begin CITY OF ROCHESTER; TIF DISTRICT 36; BIOSCIENCE PROJECT.
new text end

new text begin Notwithstanding the provisions of Minnesota Statutes, sections 469.174 and 469.176,
the city of Rochester may spend the proceeds from the sale or lease of any property
purchased, in whole or part, with tax increments derived from tax increment financing
district number 36 (Bioscience Project) for the costs of operating, maintaining, and improving
any part of that property, including funding and maintaining reserves for capital or operating
expenses and paying debt service on bonds or any obligations issued to finance that property.
Following the close of the third calendar year after decertification of the district, none of
the proceeds are subject to restrictions that apply to tax increments under Minnesota Statutes,
sections 469.174 to 469.1794.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment without
local approval under Minnesota Statutes, section 645.023, subdivision 1, clause (a).
new text end

Sec. 21. new text begin CITY OF SOUTH ST. PAUL; EXTENSION OF TIME TO ADOPT
INTERFUND LOAN RESOLUTION FOR 4TH AVENUE VILLAGE TIF DISTRICT.
new text end

new text begin Notwithstanding Minnesota Statutes, section 469.178, subdivision 7, the governing body
of the South St. Paul Economic Development Authority, successor to the Housing and
Redevelopment Authority in and for the city of South St. Paul, may retroactively approve
a previously established interfund loan for the 4th Avenue Village Tax Increment District
in the city of South St. Paul if the governing body adopts a resolution approving that loan
by August 1, 2017, and if the requirements of Minnesota Statutes, section 469.178,
subdivision 7, are otherwise complied with, the interfund loan authorization is deemed to
satisfy Minnesota Statutes, section 469.178, subdivision 7.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective without local approval under Minnesota
Statutes, section 645.023, subdivision 1, paragraph (a), on the day following final enactment.
new text end

Sec. 22. new text begin CITY OF ST. LOUIS PARK; ELMWOOD VILLAGE TIF DISTRICT.
new text end

new text begin For purposes of the Elmwood Village Tax Increment Financing District in the city of
St. Louis Park, including during the duration extension authorized by Laws 2009, chapter
88, article 5, section 19, the period under Minnesota Statutes, section 469.1763, subdivision
3, is extended through December 31, 2019, and calendar year 2020 is the first year to which
Minnesota Statutes, section 469.1763, subdivision 4, applies. In addition, the permitted
percentage of increments that may be expended under Minnesota Statutes, section 469.1763,
subdivision 2, on activities outside of the district is increased to 45 percent for the district.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon compliance by the governing body
of the city of St. Louis Park with the requirements of Minnesota Statutes, section 645.021,
subdivision 3.
new text end

Sec. 23. new text begin CITY OF ST. PAUL; FORD SITE REDEVELOPMENT TIF DISTRICT.
new text end

new text begin (a) For purposes of computing the duration limits under Minnesota Statutes, section
469.176, subdivision 1b, the housing and redevelopment authority of the city of St. Paul
may waive receipt of increment for the Ford Site Redevelopment Tax Increment Financing
District. This authority is limited to the first four years of increment or increments derived
from taxes payable in 2023, whichever occurs first.
new text end

new text begin (b) If the city elects to waive receipt of increment under paragraph (a), for purposes of
applying any limits based on when the district was certified under Minnesota Statutes,
section 469.176, subdivision 6, or 469.1763, the date of certification for the district is deemed
to be January 2 of the property tax assessment year for which increment is first received
under the waiver.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017, without local approval
under Minnesota Statutes, section 645.023, subdivision 1, paragraph (a).
new text end

Sec. 24. new text begin WASHINGTON COUNTY; NEWPORT REDROCK CROSSING PROJECT
TIF DISTRICT; SPECIAL RULES.
new text end

new text begin (a) If Washington County elects, upon the adoption of a tax increment financing plan
for a district, the rules under this section apply to one or more tax increment financing
districts established by the county or the community development agency of the county.
The area within which the tax increment districts may be created is located in the city of
Newport and is south of marked Interstate Highway 494, north of 15th Street extended to
the Mississippi River, east of the Mississippi River, and west of marked Trunk Highway
61 and the adjacent rights-of-way and shall be referred to as the "Newport Red Rock Crossing
Project Area" or "project area."
new text end

new text begin (b) The requirements for qualifying a redevelopment district under Minnesota Statutes,
section 469.174, subdivision 10, do not apply to the parcels identified by parcel identification
numbers: 2602822440051, 260282244050, 260282244049, 260282244048, 2602822440046,
2602822440045, 260282244044, 2602822440043, 2602822440026, 2602822440025,
260282244024, and 2602822440023, which are deemed substandard for the purpose of
qualifying the district as a redevelopment district.
new text end

new text begin (c) Increments spent outside a district shall only be spent within the project area and on
costs described in Minnesota Statutes, section 469.176, subdivision 4j.
new text end

new text begin (d) Notwithstanding anything to the contrary in Minnesota Statutes, section 469.1763,
subdivision 2, paragraph (a), not more than 80 percent of the total revenue derived from tax
increments paid by properties in any district, measured over the life of the district, may be
expended on activities outside the district but within the project area. The five-year rule
under Minnesota Statutes, section 469.1763, subdivision 3, applies as if the limit is nine
years.
new text end

new text begin (e) The authority to approve a tax increment financing plan and to establish a tax
increment financing district under this section expires December 31, 2027.
new text end

new text begin (f) The use of revenues for decertification in Minnesota Statutes, section 469.1763,
subdivision 4, does not apply to the project area.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective and shall retroactively include the
redevelopment district in the project area approved by Washington County on November
8, 2016, upon approval by the governing body of the city of Newport and Washington
County and upon compliance by the county with Minnesota Statutes, section 645.021,
subdivision 3.
new text end

Sec. 25. new text begin CITY OF WAYZATA; TIF DISTRICT 3; WIDSTEN.
new text end

new text begin (a) The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that
activities must be undertaken within a five-year period from the date of certification of a
tax increment financing district, are considered to be met for Tax Increment Financing
District 3 (Widsten) in the city of Wayzata if the revenues derived from tax increments from
the district are expended for any project contemplated by the original tax increment financing
plan for the district, including, without limitation, a municipal parking ramp within the
district.
new text end

new text begin (b) The requirements of Minnesota Statutes, section 469.1763, subdivision 4, do not
apply to the district if the revenues derived from tax increment from the district are expended
for any project contemplated by the original tax increment financing plan for the district,
including, without limitation, a municipal parking ramp within the district.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon compliance by the chief clerical
officer of the governing body of the city of Wayzata with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

ARTICLE 9

PUBLIC FINANCE

Section 1.

Minnesota Statutes 2016, section 366.095, subdivision 1, is amended to read:


Subdivision 1.

Certificates of indebtedness.

The town board may issue certificates of
indebtedness within the debt limits for a town purpose otherwise authorized by law. The
certificates shall be payable in not more than ten years and be issued on the terms and in
the manner as the board may determinenew text begin , provided that notes issued for projects that eliminate
R-22, as defined in section 240A.09, paragraph (b), clause (2), must be payable in not more
than 20 years
new text end . If the amount of the certificates to be issued exceeds 0.25 percent of the
estimated market value of the town, they shall not be issued for at least ten days after
publication in a newspaper of general circulation in the town of the board's resolution
determining to issue them. If within that time, a petition asking for an election on the
proposition signed by voters equal to ten percent of the number of voters at the last regular
town election is filed with the clerk, the certificates shall not be issued until their issuance
has been approved by a majority of the votes cast on the question at a regular or special
election. A tax levy shall be made to pay the principal and interest on the certificates as in
the case of bonds.

Sec. 2.

Minnesota Statutes 2016, section 383B.117, subdivision 2, is amended to read:


Subd. 2.

Equipment acquisition; capital notes.

The board may, by resolution and
without public referendum, issue capital notes within existing debt limits for the purpose
of purchasing ambulance and other medical equipment, road construction or maintenance
equipment, public safety equipment and other capital equipment having an expected useful
life at least equal to the term of the notes issued. The notes shall be payable in not more
than ten years and shall be issued on terms and in a manner as the board determinesnew text begin , provided
that notes issued for projects that eliminate R-22, as defined in section 240A.09, paragraph
(b), clause (2), must be payable in not more than 20 years
new text end . The total principal amount of
the notes issued for any fiscal year shall not exceed one percent of the total annual budget
for that year and shall be issued solely for the purchases authorized in this subdivision. A
tax levy shall be made for the payment of the principal and interest on such notes as in the
case of bonds. For purposes of this subdivision, "equipment" includes computer hardware
and software, whether bundled with machinery or equipment or unbundled. For purposes
of this subdivision, the term "medical equipment" includes computer hardware and software
and other intellectual property for use in medical diagnosis, medical procedures, research,
record keeping, billing, and other hospital applications, together with application development
services and training related to the use of the computer hardware and software and other
intellectual property, all without regard to their useful life. For purposes of determining the
amount of capital notes which the county may issue in any year, the budget of the county
and Hennepin Healthcare System, Inc. shall be combined and the notes issuable under this
subdivision shall be in addition to obligations issuable under section 373.01, subdivision
3
.

Sec. 3.

Minnesota Statutes 2016, section 410.32, is amended to read:


410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.

(a) Notwithstanding any contrary provision of other law or charter, a home rule charter
city may, by resolution and without public referendum, issue capital notes subject to the
city debt limit to purchase capital equipment.

(b) For purposes of this section, "capital equipment" means:

(1) public safety equipment, ambulance and other medical equipment, road construction
and maintenance equipment, and other capital equipment; and

(2) computer hardware and software, whether bundled with machinery or equipment or
unbundled, together with application development services and training related to the use
of the computer hardware and software.

(c) The equipment or software must have an expected useful life at least as long as the
term of the notes.

(d) The notes shall be payable in not more than ten years and be issued on terms and in
the manner the city determinesnew text begin , provided that notes issued for projects that eliminate R-22,
as defined in section 240A.09, paragraph (b), clause (2), must be payable in not more than
20 years
new text end . The total principal amount of the capital notes issued in a fiscal year shall not
exceed 0.03 percent of the estimated market value of taxable property in the city for that
year.

(e) A tax levy shall be made for the payment of the principal and interest on the notes,
in accordance with section 475.61, as in the case of bonds.

(f) Notes issued under this section shall require an affirmative vote of two-thirds of the
governing body of the city.

(g) Notwithstanding a contrary provision of other law or charter, a home rule charter
city may also issue capital notes subject to its debt limit in the manner and subject to the
limitations applicable to statutory cities pursuant to section 412.301.

Sec. 4.

Minnesota Statutes 2016, section 412.301, is amended to read:


412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.

(a) The council may issue certificates of indebtedness or capital notes subject to the city
debt limits to purchase capital equipment.

(b) For purposes of this section, "capital equipment" means:

(1) public safety equipment, ambulance and other medical equipment, road construction
and maintenance equipment, and other capital equipment; and

(2) computer hardware and software, whether bundled with machinery or equipment or
unbundled, together with application development services and training related to the use
of the computer hardware or software.

(c) The equipment or software must have an expected useful life at least as long as the
terms of the certificates or notes.

(d) Such certificates or notes shall be payable in not more than ten years and shall be
issued on such terms and in such manner as the council may determinenew text begin , provided, however,
that notes issued for projects that eliminate R-22, as defined in section 240A.09, paragraph
(b), clause (2), must be payable in not more than 20 years
new text end .

(e) If the amount of the certificates or notes to be issued to finance any such purchase
exceeds 0.25 percent of the estimated market value of taxable property in the city, they shall
not be issued for at least ten days after publication in the official newspaper of a council
resolution determining to issue them; and if before the end of that time, a petition asking
for an election on the proposition signed by voters equal to ten percent of the number of
voters at the last regular municipal election is filed with the clerk, such certificates or notes
shall not be issued until the proposition of their issuance has been approved by a majority
of the votes cast on the question at a regular or special election.

(f) A tax levy shall be made for the payment of the principal and interest on such
certificates or notes, in accordance with section 475.61, as in the case of bonds.

Sec. 5.

new text begin [416.17] VOTER APPROVAL REQUIRED; LEASES OF PUBLIC
BUILDINGS.
new text end

new text begin Subdivision 1. new text end

new text begin Reverse referendum; certain leases. new text end

new text begin (a) Before executing a qualified
lease, a municipality must publish notice of its intention to execute the lease and the date
and time of a hearing to obtain public comment on the matter. The notice must be published
in the official newspaper of the municipality or in a newspaper of general circulation in the
municipality and must include a statement of the amount of the obligations to be issued by
the authority and the maximum amount of annual rent to be paid by the municipality under
the qualified lease. The notice must be published at least 14, but not more than 28, days
before the date of the hearing.
new text end

new text begin (b) A municipality may enter a lease subject to paragraph (a) only upon obtaining the
approval of a majority of the voters voting on the question of issuing the obligations, if a
petition requesting a vote on the issuance is signed by voters equal to ten percent of the
votes cast in the municipality in the last state general election and is filed with the county
auditor within 30 days after the public hearing.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have the
meanings given them.
new text end

new text begin (b) "Authority" includes any of the following governmental units, the boundaries of
which include all or part of the geographic area of the municipality:
new text end

new text begin (1) a housing and redevelopment authority, as defined in section 469.002, subdivision
2;
new text end

new text begin (2) a port authority, as defined in section 469.048;
new text end

new text begin (3) an economic development authority, as established under section 469.091; or
new text end

new text begin (4) an entity established or exercising powers under a special law with powers similar
to those of an entity described in clauses (1) to (3).
new text end

new text begin (c) "Municipality" means a statutory or home rule charter city, a county, or a town
described in section 368.01, but does not include a city of the first class, however organized,
as defined in section 410.01.
new text end

new text begin (d) "Qualified lease" means a lease for use of public land, all or part of a public building,
or other public facilities consisting of real property for a term of three or more years as a
lessee if the property to be leased to the municipality was acquired or improved with the
proceeds of obligations, as defined in section 475.51, subdivision 3, issued by an authority.
new text end

Sec. 6.

Minnesota Statutes 2016, section 469.101, subdivision 1, is amended to read:


Subdivision 1.

Establishment.

An economic development authority may create and
define the boundaries of economic development districts at any place or places within the
city, except that the district boundaries must be contiguous, and may use the powers granted
in sections 469.090 to 469.108 to carry out its purposes. First the authority must hold a
public hearing on the matter. At least ten days before the hearing, the authority shall publish
notice of the hearing in a deleted text begin dailydeleted text end newspaper of general circulation in the city. Also, the authority
shall find that an economic development district is proper and desirable to establish and
develop within the city.

Sec. 7.

Minnesota Statutes 2016, section 473.39, is amended by adding a subdivision to
read:


new text begin Subd. 1u. new text end

new text begin Obligations. new text end

new text begin In addition to other authority in this section, the council may
issue certificates of indebtedness, bonds, or other obligations under this section in an amount
not exceeding $126,000,000 for capital expenditures as prescribed in the council's transit
capital improvement program and for related costs, including the costs of issuance and sale
of the obligations. Of this authorization, after July 1, 2017, the council may issue certificates
of indebtedness, bonds, or other obligations in an amount not exceeding $82,100,000, and
after July 1, 2018, the council may issue certificates of indebtedness, bonds, or other
obligations in an additional amount not exceeding $43,900,000.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
new text end

Sec. 8.

Minnesota Statutes 2016, section 473.39, is amended by adding a subdivision to
read:


new text begin Subd. 6. new text end

new text begin Limitation; light rail transit. new text end

new text begin The council is prohibited from expending any
proceeds from certificates of indebtedness, bonds, or other obligations under this section
for project development, land acquisition, or construction to (1) establish a light rail transit
line; or (2) expand a light rail transit line, including by extending a line or adding additional
stops.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section applies to the expenditures made after the day
following final enactment, but does not apply to amounts expended under binding contracts
entered into before March 25, 2017. This section applies in the counties of Anoka, Carver,
Dakota, Hennepin, Ramsey, Scott, and Washington.
new text end

Sec. 9.

Minnesota Statutes 2016, section 475.60, subdivision 2, is amended to read:


Subd. 2.

Requirements waived.

The requirements as to public sale shall not apply:

(1) to obligations issued under the provisions of a home rule charter or of a law
specifically authorizing a different method of sale, or authorizing them to be issued in such
manner or on such terms and conditions as the governing body may determine;

(2) to obligations sold by an issuer in an amount not exceeding the total sum of
$1,200,000 in any 12-month period;

(3) to obligations issued by a governing body other than a school board in anticipation
of the collection of taxes or other revenues appropriated for expenditure in a single year, if
sold in accordance with the most favorable of two or more proposals solicited privately;

(4) to obligations sold to any board, department, or agency of the United States of
America or of the state of Minnesota, in accordance with rules or regulations promulgated
by such board, department, or agency;

(5) to obligations issued to fund pension and retirement fund liabilities under section
475.52, subdivision 6, obligations issued with tender options under section 475.54,
subdivision 5a
, crossover refunding obligations referred to in section 475.67, subdivision
13
, and any issue of obligations comprised in whole or in part of obligations bearing interest
at a rate or rates which vary periodically referred to in section 475.56;

(6) to obligations to be issued for a purpose, in a manner, and upon terms and conditions
authorized by law, if the governing body of the municipality, on the advice of bond counsel
or special tax counsel, determines that interest on the obligations cannot be represented to
be excluded from gross income for purposes of Previous federal Next income taxation;

(7) to obligations issued in the form of an installment purchase contract, lease purchase
agreement, or other similar agreement;

(8) to obligations sold under a bond reinvestment program; and

(9) if the municipality has retained an independent deleted text begin financial advisordeleted text end new text begin municipal advisernew text end ,
obligations which the governing body determines shall be sold by private negotiation.

ARTICLE 10

TOBACCO TAXES

Section 1.

Minnesota Statutes 2016, section 297F.01, subdivision 13a, is amended to read:


Subd. 13a.

Premium cigar.

"Premium cigar" means any cigar that is hand-constructed
deleted text begin and hand-rolleddeleted text end , has a wrapper that is made entirely from whole tobacco leaf, has a filler
and binder that is made entirely of tobacco, except for adhesives or other materials used to
maintain size, texture, or flavor, and has a wholesale price of no less than $2.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 2.

Minnesota Statutes 2016, section 297F.05, subdivision 1, is amended to read:


Subdivision 1.

Rates; cigarettes.

A tax is imposed upon the sale of cigarettes in this
state, upon having cigarettes in possession in this state with intent to sell, upon any person
engaged in business as a distributor, and upon the use or storage by consumers, at the rate
of deleted text begin 141.5deleted text end new text begin 152new text end mills, or deleted text begin 14.15deleted text end new text begin 15.2new text end cents, on each cigarette.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 3.

Minnesota Statutes 2016, section 297F.05, subdivision 3, is amended to read:


Subd. 3.

Rates; tobacco products.

(a) Except as provided in new text begin paragraphs (b) and (c) and
new text end subdivision 3a, a tax is imposed upon all tobacco products in this state and upon any person
engaged in business as a distributor, at the rate of 95 percent of the wholesale sales price
of the tobacco products. The tax is imposed at the time the distributor:

(1) brings, or causes to be brought, into this state from outside the state tobacco products
for sale;

(2) makes, manufactures, or fabricates tobacco products in this state for sale in this state;
or

(3) ships or transports tobacco products to retailers in this state, to be sold by those
retailers.

(b) deleted text begin Notwithstanding paragraph (a),deleted text end A deleted text begin minimumdeleted text end tax equal to new text begin the greater of the tax imposed
under paragraph (a) or a minimum tax equal to
new text end the rate imposed on a pack of 20 cigarettes
weighing not more than three pounds per thousand, as established under subdivision 1, is
imposed on each container of moist snuffnew text begin weighing not more than 1.2 ounces. When more
than one container subject to tax under this paragraph is packaged together, each container
is subject to the minimum tax
new text end .

new text begin (c) Except as provided in paragraph (b), a tax equal to the greater of the tax imposed
under paragraph (a) or a minimum tax equal to the rate imposed on a pack of 20 cigarettes
weighing not more than three pounds per thousand, as established under subdivision 1,
multiplied by the number of ounces of moist snuff in the container, divided by 1.2, is imposed
on each container of moist snuff weighing more than 1.2 ounces.
new text end

new text begin (d) new text end For purposes of this subdivision, a "container" means deleted text begin the smallestdeleted text end new text begin anew text end consumer-size
can, package, or other container that is marketed or packaged deleted text begin by the manufacturer, distributor,
or retailer
deleted text end for deleted text begin separatedeleted text end sale to a retail purchaser. deleted text begin When more than one container is packaged
together, each container is subject to tax.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 4.

Minnesota Statutes 2016, section 297F.05, subdivision 3a, is amended to read:


Subd. 3a.

Rates; premium cigars.

(a) A tax is imposed upon all premium cigars in this
state and upon any person engaged in business as a tobacco product distributor, at the lesser
of:

(1) the rate of 95 percent of the wholesale sales price of the premium cigars; or

(2) deleted text begin $3.50deleted text end new text begin $0.50new text end per premium cigar.

(b) The tax imposed under paragraph (a) is imposed at the time the tobacco products
distributor:

(1) brings, or causes to be brought, into this state from outside the state premium cigars
for sale;

(2) makes, manufactures, or fabricates premium cigars in this state for sale in this state;
or

(3) ships or transports premium cigars to retailers in this state, to be sold by those retailers.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 5.

Minnesota Statutes 2016, section 297F.05, subdivision 4a, is amended to read:


Subd. 4a.

Use tax; premium cigars.

A tax is imposed upon the use or storage by
consumers of all premium cigars in this state, and upon such consumers, at the lesser of:

(1) the rate of 95 percent of the cost to the consumer of the premium cigars; or

(2) deleted text begin $3.50deleted text end new text begin $0.50new text end per premium cigar.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 6. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, section 297F.05, subdivision 1a, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

ARTICLE 11

TAX ADMINISTRATION

Section 1.

new text begin [270C.075] PRIVATE LETTER RULINGS.
new text end

new text begin Subdivision 1. new text end

new text begin Program established. new text end

new text begin By January 1, 2018, the commissioner shall, by
Previous administrative Next rule adopted under chapter 14, establish and implement a program for issuing
private letter rulings to taxpayers to provide guidance as to how the commissioner will apply
Minnesota tax law to a specific transaction or proposed transaction, arrangement, or other
fact situation of the applying taxpayer. The commissioner must include in each ruling an
explanation of the reasoning for the determination. In establishing the terms of the program,
the commissioner may provide that rulings will not be issued in specified subject areas, for
categories of transactions, or under specified provisions of law, if the commissioner
determines doing so is in the best interests of the state and sound tax administration. The
program must include a process for the representative of a taxpayer to apply for a private
letter ruling and to communicate with the commissioner regarding the requested ruling.
new text end

new text begin Subd. 2. new text end

new text begin Application procedure; fees. new text end

new text begin (a) The commissioner shall establish an
application procedure and forms for a taxpayer or the taxpayer's appointed representative
to request a private letter ruling. The commissioner may require the taxpayer to provide any
supporting factual information and certifications that the commissioner determines necessary
or appropriate to issue a private letter ruling. The requirements may vary based on the type
of ruling requested.
new text end

new text begin (b) The commissioner may, in the Previous administrative Next rule, establish a fee schedule to recover
the department's actual cost of preparing private letter rulings. The maximum fee per private
letter ruling is $1,000. The commissioner may require the applicant to pay the required fee
for a private letter ruling before the application is considered. If the Previous administrative Next rule
provides for payment of a fee as a condition for providing a private letter ruling, the rule
must provide a fee structure that varies the amount of the fee by the complexity of the request
or the number and type of issues or both.
new text end

new text begin (c) If the commissioner fails to issue a ruling to the taxpayer within 90 days after the
taxpayer's filing of a completed application, the commissioner must refund the application
fee to the taxpayer; however, the commissioner must issue a private letter ruling unless the
taxpayer withdraws the request.
new text end

new text begin (d) Any fees collected under this section must be deposited in the Revenue Department
service and recovery special revenue fund established under section 270C.15, and are
appropriated to the commissioner to offset the cost of issuing private letter rulings and
related Previous administrative Next costs.
new text end

new text begin Subd. 3. new text end

new text begin Effect. new text end

new text begin (a) A private letter ruling is binding on the commissioner with respect
to the taxpayer to whom the ruling is issued if:
new text end

new text begin (1) there was no misstatement or omission of material facts in the application or other
information provided to the commissioner;
new text end

new text begin (2) the facts that subsequently developed were not materially different from the facts
upon which the ruling was based;
new text end

new text begin (3) the applicable statute, Previous administrative Next rule, Previous federal Next law referenced by state law, or
other relevant law has not changed; and
new text end

new text begin (4) the taxpayer acted in good faith in applying for and relying on the ruling.
new text end

new text begin (b) Private letter rulings have no precedential effect and may not be relied upon by a
taxpayer other than as provided in paragraph (a).
new text end

new text begin Subd. 4. new text end

new text begin Public access. new text end

new text begin The commissioner shall make private letter rulings issued under
this section available to the public on the department's Web site. The commissioner must
organize the private letter rulings by tax type and must make them available in a searchable
format. The published rulings must redact any information that would permit identification
of the requesting taxpayer.
new text end

new text begin Subd. 5. new text end

new text begin Legislative report. new text end

new text begin (a) By January 31 of each odd-numbered year, the
commissioner shall report in writing to the legislature the following information for the
immediately preceding two calendar years:
new text end

new text begin (1) the number of applications for private letter rulings;
new text end

new text begin (2) the number of private letter rulings issued, including the number issued within the
90-day time period under subdivision 2, paragraph (c);
new text end

new text begin (3) the amount of application fees refunded by tax type;
new text end

new text begin (4) the tax types for which rulings were requested;
new text end

new text begin (5) the types and characteristics of taxpayers applying for rulings; and
new text end

new text begin (6) any other information that the commissioner considers relevant to legislative oversight
of the private letter ruling program.
new text end

new text begin (b) The report must be filed as provided in section 3.195, and copies must be provided
to the chairs and ranking minority members of the committees of the house of representatives
and the senate with jurisdiction over taxes and appropriations to the Department of Revenue.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment, except
that the first legislative report under subdivision 5 is due January 31, 2020.
new text end

Sec. 2.

Minnesota Statutes 2016, section 270C.31, is amended by adding a subdivision to
read:


new text begin Subd. 8. new text end

new text begin Authority to request dual examination. new text end

new text begin (a) A qualified taxpayer that is subject
to an on-site examination or audit under this section of the amount of tax due under chapter
290 or 297A may request in writing that the commissioner conduct the examination or audit
of the taxpayer's tax due under both chapters at the same time. The request must be made
within 30 days of the receipt of the commissioner's notice of intent to conduct the on-site
audit or examination in the form prescribed by the commissioner. If a qualified taxpayer
files a timely written request under this subdivision and the commissioner elects to audit or
examine the tax due under only one of the two chapters, the commissioner may not audit
or examine the tax due under the other chapter for each taxable year or period that includes
the taxable year or the period covered by the audit or examination that was conducted.
new text end

new text begin (b) For purposes of this subdivision, "qualified taxpayer" means a taxpayer that meets
each of the following requirements:
new text end

new text begin (1) the taxpayer has been issued a permit to collect tax under section 297A.84;
new text end

new text begin (2) the gross receipts of the taxpayer, as reported on the return filed under chapter 290
for the most recent taxable year, is no more than $150,000. In applying this clause to a
taxpayer that is a member of a unitary business, as defined in section 290.17, gross receipts
include the gross receipts of all members of the unitary business; and
new text end

new text begin (3) the commissioner audited or examined the taxpayer's return filed under chapter 290
or 297A or both for a period that ended no more than five years prior to the taxable year or
the period for which the qualified taxpayer made the request under this subdivision, and the
commissioner determined that no more than the greater of (1) $1,000 or (2) five percent of
the liability for tax in additional tax was owed by the taxpayer as a result of the audit or
examination.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for examinations and audits commenced
after June 30, 2017.
new text end

Sec. 3.

Minnesota Statutes 2016, section 270C.33, is amended by adding a subdivision to
read:


new text begin Subd. 4a. new text end

new text begin Limitations; sales taxes. new text end

new text begin (a) The provisions of this subdivision are a limitation
on the assessment authority of the commissioner under this section.
new text end

new text begin (b) The commissioner must not assess additional tax under chapter 297A if each of the
following requirements are met:
new text end

new text begin (1) the tax reported by the taxpayer is consistent with and based on past reporting or
other practices of the taxpayer that were fully disclosed to the commissioner and were
specifically reviewed by the commissioner, including by issuing an audit assessing no
additional tax liability with respect to that item for a prior taxable period; and
new text end

new text begin (2) effective for a taxable period beginning after the period covered by clause (1), neither
the statute or Previous administrative Next rule on which the reporting or other practice is based has been
materially changed, nor has the commissioner issued a revenue notice or directly notified
the taxpayer in writing of a change in the commissioner's position as to the proper reporting
or other treatment of the relevant transaction or other item.
new text end

new text begin (c) For an audit of a prior taxable period by the commissioner, paragraph (b), clause (1),
applies only to issues within the scope of and specifically addressed by the audit.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessments made after June 30,
2017.
new text end

Sec. 4.

Minnesota Statutes 2016, section 270C.33, is amended by adding a subdivision to
read:


new text begin Subd. 4b. new text end

new text begin Limit on assessments; reasonable cause for failure to collect or withhold.
new text end

new text begin (a) An assessment issued under subdivision 4 is reduced or eliminated to the extent that the
amount that would otherwise be assessed arose from the taxpayer's failure to collect or
withhold a tax from another individual or entity and the taxpayer had reasonable cause for
not collecting or withholding the tax. A taxpayer may raise this ground for prohibition of
an assessment during an audit, upon appeal from an assessment, or by refund claim following
payment of the assessment.
new text end

new text begin (b) For purposes of this subdivision and section 270C.35, subdivision 4:
new text end

new text begin (1) ignorance of the law is not reasonable cause;
new text end

new text begin (2) lack of clarity as to whether the law requires collection or withholding under the
circumstances may be reasonable cause; and
new text end

new text begin (3) failure to collect or withhold in accordance with prior written advice from the
commissioner on the specific question of the requirement to collect or withhold under the
same or similar circumstances that has not been superseded or preempted by a change in
statute or Previous administrative Next rule or a subsequent written notice from the commissioner to the
taxpayer prior to commencement of the period for which the failure to collect or withhold
occurred is reasonable cause.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessments made after June 30,
2017.
new text end

Sec. 5.

Minnesota Statutes 2016, section 270C.34, subdivision 1, is amended to read:


Subdivision 1.

Authority.

(a) The commissioner may abate, reduce, or refund any penalty
or interest that is imposed by a law administered by the commissioner, or imposed by section
270.0725, subdivision 1 or 2, or 270.075, subdivision 2, as a result of the late payment of
tax or late filing of a return, or any part of an additional tax charge under section 289A.25,
subdivision 2
, or 289A.26, subdivision 4, if the failure to timely pay the tax or failure to
timely file the return is due to reasonable cause, or if the taxpayer is located in a presidentially
declared disaster or in a presidentially declared state of emergency area or in an area declared
to be in a state of emergency by the governor under section 12.31.

(b) The commissioner shall abate any part of a penalty or additional tax charge under
section 289A.25, subdivision 2, or 289A.26, subdivision 4, attributable to erroneous advice
given to the taxpayer in writing by an employee of the department acting in an official
capacity, if the advice:

(1) was reasonably relied on and was in response to a specific written request of the
taxpayer; and

(2) was not the result of failure by the taxpayer to provide adequate or accurate
information.

new text begin (c) In addition to the authority under paragraphs (a) and (b), the commissioner may
decline to impose or may abate any penalty under section 289A.60 or other law, or an
additional tax charge under section 289A.25, subdivision 2, or 289A.26, subdivision 4.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2016, section 270C.35, subdivision 4, is amended to read:


Subd. 4.

Time and content for Previous administrative Next appeal.

Within 60 days after the notice
date, the taxpayer must file a written appeal with the commissioner. The appeal need not
be in any particular form but must contain the following information:

(1) name and address of the taxpayer;

(2) if a corporation, the state of incorporation of the taxpayer, and the principal place of
business of the corporation;

(3) the Minnesota identification number or Social Security number of the taxpayer;

(4) the type of tax involved;

(5) the date;

(6) the tax years or periods involved and the amount of tax involved for each year or
period;

(7) the findings in the notice that the taxpayer disputes;

(8) new text begin for a request to reduce or eliminate an assessment under section 270C.33, subdivision
4b, a statement of the taxpayer's grounds, along with a brief statement of the supporting
facts, for the assertion of reasonable cause for the failure to collect or withhold tax from
another individual or entity;
new text end

new text begin (9) new text end a summary statement that the taxpayer relies on for each exception; and

deleted text begin (9)deleted text end new text begin (10)new text end the taxpayer's signature or signature of the taxpayer's duly authorized agent.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessments made after June 30,
2017.
new text end

Sec. 7.

Minnesota Statutes 2016, section 271.06, subdivision 2a, is amended to read:


Subd. 2a.

Timely mailing treated as timely filing.

(a) If, after the period prescribed by
subdivision 2, the original notice of appeal, proof of service upon the commissioner, and
filing fee are delivered by United States mail to the Tax Court administrator or the court
administrator of district court acting as court administrator of the Tax Court, then the date
of filing is the date of the United States postmark stamped on the envelope or other
appropriate wrapper in which the notice of appeal, proof of service upon the commissioner,
and filing fee are mailed.

(b) This subdivision applies only if the postmark date falls within the period prescribed
by subdivision 2 and the original notice of appeal, proof of service upon the commissioner,
and filing fee are, within the time prescribed by subdivision 2, deposited in the mail in the
United States in an envelope or other appropriate wrapper, postage prepaid, properly
addressed to the Tax Court administrator or the court administrator of district court acting
as court administrator of the Tax Court.

(c) Only the postmark of the United States Postal Service qualifies as proof of timely
mailing under this subdivision. Private postage meters do not qualify as proof of timely
filing under this subdivision. If the original notice of appeal, proof of service upon the
commissioner, and filing fee are sent by United States registered mail, the date of registration
is the postmark date. If the original notice of appeal, proof of service upon the commissioner,
and filing fee are sent by United States certified mail and the sender's receipt is postmarked
by the postal employee to whom the envelope containing the original notice of appeal, proof
of service upon the commissioner, and filing fee is presented, the date of the United States
postmark on the receipt is the postmark date.new text begin If the envelope or other wrapper in which the
notice of appeal, proof of service upon the commissioner, and filing fee are mailed does
not contain a postmark of the United States Postal Service but is delivered by United States
mail to the Tax Court administrator or the court administrator of the district court acting as
court administrator of the Tax Court, then the date of mailing qualifies as timely filed under
this subdivision, if proof of mailing within the time prescribed by subdivision 2 is provided
by affidavit of the petitioner or counsel.
new text end

(d) A reference in this section to the United States mail must be treated as including a
reference to any designated delivery service and a reference in this section to a postmark
by the United States Postal Service must be treated as including a reference to any date
recorded or marked by any designated delivery service in accordance with section 7502(f)
of the Internal Revenue Code.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to notices mailed after June 30, 2017.
new text end

Sec. 8.

Minnesota Statutes 2016, section 271.06, subdivision 6, is amended to read:


Subd. 6.

Hearings; determination of issues; default.

new text begin (a) new text end The Tax Court shall hear,
consider, and determine without a jury every appeal de novo. A Tax Court judge may
empanel an advisory jury upon the judge's motion. The Tax Court shall hold a public hearing
in every case. All such parties shall have an opportunity to offer evidence and arguments
at the hearing; provided, that the order of the commissioner or the appropriate unit of
government in every case shall be prima facie valid. When an appeal to the Tax Court has
been taken from an order or determination of the commissioner or from the appropriate unit
of government, the proceeding shall be an original proceeding in the nature of a suit to set
aside or modify the order or determination. In case no appellant shall appear the Tax Court
shall enter its order affirming the order of the commissioner of revenue or the appropriate
unit of government from which the appeal was taken. If the Department of Revenue's sales
ratio study is introduced in Tax Court as evidence, the sales ratio data from the study shall
be admissible as evidence only as provided in section 278.05, subdivision 4.

new text begin (b) The commissioner, the taxpayer, and any other party to an appeal to the Tax Court
may file all necessary notices, documents, and other necessary information with the Tax
Court in a manner approved by the Tax Court.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2016, section 271.08, subdivision 1, is amended to read:


Subdivision 1.

Written order.

The Tax Court, except in Small Claims Division, shall
determine every appeal by written order containing findings of fact and the decision of the
Tax Court. A memorandum of the grounds of the decision shall be appended. Notice of the
entry of the order and of the substance of the decision shall be mailed to all parties. A motion
for rehearing, which includes a motion for amended findings of fact, conclusions of law,
or a new trial, must be served by the moving party within deleted text begin 15deleted text end new text begin 30new text end days after mailing of the
notice by the court as specified in this subdivision, and the motion must be heard within 30
days thereafter, unless the time for hearing is extended by the court within the 30-day period
for good cause shown.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for petitions and appeals filed after June
30, 2017.
new text end

Sec. 10.

Minnesota Statutes 2016, section 271.18, is amended to read:


271.18 EX-JUDGES NOT TO REPRESENT CLIENTS; EXCEPTION;
VIOLATION.

No judge deleted text begin or employeedeleted text end of the Tax Court, except referees appointed for the Small Claims
Division, shall, within one year after the office or employment has terminated, act as counsel,
attorney, or agent deleted text begin for a taxpayerdeleted text end in connection with any claim or proceeding pending deleted text begin in the
department of revenue or
deleted text end in the Tax Court at the time of termination. No judge, referee, or
employee shall, at any time after the termination of the office or employment, act as counsel,
attorney, or agent in connection with any claim or proceeding of which the person terminated
has knowledge which was acquired in the course of a term of office or employment in the
Tax Court. Any violation of the provisions of this section shall be a gross misdemeanor.

new text begin EFFECTIVE DATE. new text end

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

Sec. 11.

Minnesota Statutes 2016, section 289A.40, subdivision 1, is amended to read:


Subdivision 1.

Time limit; generally.

new text begin (a) new text end Unless otherwise provided in this chapter, a
claim for a refund of an overpayment of state tax must be filed within 3-1/2 years from the
date prescribed for filing the return, plus any extension of time granted for filing the return,
but only if filed within the extended time, or deleted text begin one year from the date of an order assessing
tax under section 270C.33 or an order determining an appeal under section 270C.35,
subdivision 8
, or one year from the date of a return made by the commissioner under section
270C.33, subdivision 3, upon payment in full of the tax, penalties, and interest shown on
the order or return made by the commissioner
deleted text end new text begin two years from the time the tax was paidnew text end ,
whichever period expires later. deleted text begin Claims for refund, except for taxes under chapter 297A,
filed after the 3-1/2 year period but within the one-year period are limited to the amount of
the tax, penalties, and interest on the order or return made by the commissioner and to issues
determined by the order or return made by the commissioner.
deleted text end

deleted text begin In the case of assessments under section 289A.38, subdivision 5 or 6, claims for refund
under chapter 297A filed after the 3-1/2 year period but within the one-year period are
limited to the amount of the tax, penalties, and interest on the order or return made by the
commissioner that are due for the period before the 3-1/2 year period.
deleted text end

new text begin (b) For refunds due on a report required to be filed under section 289A.38, subdivision
7, the period under paragraph (a) is extended to the due date for the report required by
section 289A.38, subdivision 7.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims for refund filed after the day
following final enactment.
new text end

Sec. 12.

Minnesota Statutes 2016, section 289A.60, subdivision 1, is amended to read:


Subdivision 1.

Penalty for failure to pay tax.

(a) If a corporate franchise, fiduciary
income, mining company, estate, partnership, S corporation, or nonresident entertainer tax
is not paid within the time specified for payment, a penalty of six percent is added to the
unpaid tax, except that if a corporation or mining company meets the requirements of section
289A.19, subdivision 2, the penalty is not imposed.

(b) For the taxes listed in paragraph (a), in addition to the penalty in that paragraph,
whether imposed or not, if a return or amended return is filed after the due date, without
regard to extensions, and any tax reported as remaining due is not remitted with the return
or amended return, a penalty of five percent of the tax not paid is added to the tax. If the
commissioner issues an order assessing additional tax for a tax listed in paragraph (a), and
the tax is not paid within 60 days after the mailing of the order or, if appealed, within 60
days after final resolution of the appeal, a penalty of five percent of the unpaid tax is added
to the tax.

(c) If an individual income tax is not paid within the time specified for payment, a penalty
of four percent is added to the unpaid tax. There is a presumption of reasonable cause for
the late payment if the individual: (i) pays by the due date of the return at least 90 percent
of the amount of tax, after credits other than withholding and estimated payments, shown
owing on the return; (ii) files the return within six months after the due date; and (iii) pays
the remaining balance of the reported tax when the return is filed.

(d) If the commissioner issues an order assessing additional individual income tax, and
the tax is not paid within 60 days after the mailing of the order or, if appealed, within 60
days after final resolution of the appeal, a penalty of four percent of the unpaid tax is added
to the tax.

(e) If a withholding or sales or use tax is not paid within the time specified for payment,
a penalty must be added to the amount required to be shown as tax. The penalty is five
percent of the tax not paid on or before the date specified for payment of the tax if the failure
is for not more than 30 days, with an additional penalty of five percent of the amount of tax
remaining unpaid during each additional 30 days or fraction of 30 days during which the
failure continues, not exceeding 15 percent in the aggregate.

new text begin (f) No penalty applies under this section if:
new text end

new text begin (1) the total calculated penalty that would otherwise apply under paragraphs (a) to (e)
is less than $150; or
new text end

new text begin (2) for an underpayment of individual income tax under chapter 290 or sales tax under
chapter 297A, the liability for tax on which the penalty is calculated is less than $1,000 and
the taxpayer timely filed any returns required to be filed during the prior three calendar
years and was not subject to a penalty under this section, determined without regard to the
provisions of this paragraph, for any taxes on returns due during that three-year period.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for penalties imposed after January 1,
2019.
new text end

ARTICLE 12

MISCELLANEOUS

Section 1.

new text begin [16A.1246] NO SPENDING FOR CERTAIN RAIL PROJECTS.
new text end

new text begin (a) Except as provided in paragraph (b), no appropriation or other state money, whether
in the general or another fund, must be expended or used for any costs related to studying
the feasibility of, planning for, designing, engineering, acquiring property or constructing
facilities for or related to, or development or operation of intercity or interregional passenger
rail facilities or operations between the city of Rochester or locations in its metropolitan
area and any location in the metropolitan area, as defined in section 473.121, subdivision
2.
new text end

new text begin (b) The restrictions under this section do not apply to funds obtained from contributions,
grants, or other voluntary payments made by nongovernmental entities from private sources.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

new text begin [16B.2965] PROPERTY LEASED FOR RAIL PROJECTS.
new text end

new text begin (a) If a state official leases, loans, or otherwise makes available state lands, air rights,
or any other state property for use in connection with passenger rail facilities, as described
in section 16A.1246, the lease or other agreement must include or be secured by a security
bond or equivalent guarantee that allows the state to recover any costs it incurs in connection
with the rail project from a responsible third party or secure source of capital, if the passenger
rail facilities are not constructed, do not go into operation, or are abandoned, whether or
not the facilities began operations. The security bond or equivalent guarantee must remain
in place for the term of lease, loan, or other agreement that makes state property available
for use by the project. These costs include restoring state property to its original condition.
new text end

new text begin (b) For purposes of this section, "state official" includes the commissioner, the
commissioner of transportation, or any other state official with authority to enter a lease or
other agreement providing for use by a nonstate entity of state property.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

new text begin [117.028] CONDEMNATION FOR CERTAIN RAIL FACILITIES
PROHIBITED.
new text end

new text begin Notwithstanding section 222.27 or any other law to the contrary, no condemning authority
may take property for the development or construction of or for facilities related to intercity
or interregional passenger rail facilities or operations between the city of Rochester or
locations in its metropolitan area and any location in the metropolitan area, as defined in
section 473.121, subdivision 2.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2016, section 216B.36, is amended to read:


216B.36 MUNICIPAL REGULATORY AND TAXING POWERS.

new text begin Subdivision 1. new text end

new text begin Municipal authority to regulate public utilities. new text end

Any public utility
furnishing the utility services enumerated in section 216B.02 or occupying streets, highways,
or other public property within a municipality may be required to obtain a license, permit,
right, or franchise in accordance with the terms, conditions, and limitations of regulatory
acts of the municipality, including the placing of distribution lines and facilities underground.
Under the license, permit, right, or franchise, the utility may be obligated by any municipality
to pay to the municipality fees to raise revenue or defray increased municipal costs accruing
as a result of utility operations, or both.new text begin A fee that raises revenue under a license, permit,
right, or franchise agreement entered into or renewed on or after August 1, 2017, is subject
to the requirements of subdivision 2.
new text end The fee may include but is not limited to a sum of
money based upon gross operating revenues or gross earnings from its operations in the
municipality so long as the public utility shall continue to operate in the municipality, unless
upon request of the public utility it is expressly released from the obligation at any time by
such municipality. Notwithstanding the definition of "public utility" in section 216B.02,
subdivision 4
, a municipality may require payment of a fee under this section by a cooperative
electric association organized under chapter 308A that furnishes utility services within the
municipality. All existing licenses, permits, franchises, and other rights acquired by any
public utility or municipality prior to April 11, 1974, including the payment of existing
franchise fees, shall not be impaired or affected in any respect by the passage of this chapter,
except with respect to matters of rate and service regulation, service area assignments,
securities, and indebtedness that are vested in the jurisdiction of the commission by this
chapter. However, in the event that a court of competent jurisdiction determines, or the
parties by mutual agreement determine, that an existing license, permit, franchise, or other
right has been abrogated or impaired by this chapter, or its execution, the municipality
affected shall impose and the public utility shall collect an excise tax on the utility charges
which from year to year yields an amount which is reasonably equivalent to that amount of
revenue which then would be due as a fee, charges or other thing or service of value to the
municipality under the franchise, license, or permit. The authorization shall be over and
above taxing limitations including, but not limited to, those of section 477A.016. Franchises
granted pursuant to this section shall be exempt from the provisions of chapter 80C. For
purposes of this section, a public utility shall include a cooperative electric association.

new text begin Subd. 2. new text end

new text begin Five-year renewal; reverse referendum. new text end

new text begin (a) A municipality may impose a
fee under subdivision 1 to raise revenue beyond what is needed to defray increased municipal
costs due to utility operations for up to a five-year period, following the procedures in this
subdivision.
new text end

new text begin (b) The municipality must include in its ordinance or license, permit, or franchise
agreement with the public utility what constitutes a cost to the city.
new text end

new text begin (c) The municipality must identify in its ordinance or license, permit, or franchise
agreement the uses of the portion of the fee that is for purposes other than to defray city
costs. The municipality must publish a notice that explains:
new text end

new text begin (1) the fee and its intended uses;
new text end

new text begin (2) that the public utility is likely to pass the fee on to customers and how much that
may increase customers' utility bills;
new text end

new text begin (3) that alternatives to the revenue-raising portion of the fee are to raise the revenue
from another source available to the municipality or forego planned uses of the revenue;
and
new text end

new text begin (4) what revenue raised from another source will cost those paying it.
new text end

new text begin The notice must be published at least once each week for two consecutive weeks in the
official publication of the municipality and must remain posted on the municipality's Web
site throughout the notice period. The notice must also be sent to all affected ratepayers by
either first class mail by the municipality or by including the notice in the affected ratepayers'
billings.
new text end

new text begin (d) Following publication and before imposing the fee, the municipality must provide
an opportunity at its next regular meeting for public comment relating to the issue. No
sooner than 90 days after the public comment opportunity, the municipality may proceed
with imposing the fee, unless a petition is filed as provided in paragraph (e).
new text end

new text begin (e) Within 90 days after the meeting held by the municipality at which public comment
was accepted, a petition requesting a referendum may be filed with the chief clerical officer
of the municipality. The petition must be signed by at least five percent of the registered
voters in the municipality. The petition must meet the requirements of the secretary of state,
as provided in section 204B.071, and any rules adopted to implement that section. If the
petition is sufficient, the question of whether the municipality may impose a fee that raises
revenue as provided in subdivision 1 must be placed on the ballot at the next general election.
If a majority of the voters voting on the question votes in favor of using the fee to raise
revenue, the municipality may proceed with imposing the fee.
new text end

new text begin (f) If a license, permit, right, or franchise agreement is entered into or renewed before
August 1, 2017, and by its terms and the ordinance authorizing it, will be in effect after
August 1, 2022, the municipality must follow the procedures in this subdivision to provide
notice, a public hearing, and opportunity for a petition for a referendum by August 1, 2022.
new text end

new text begin (g) Except as provided in paragraph (f), this subdivision applies to a license, permit,
right, or franchise agreement entered into or renewed on or after August 1, 2017.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

new text begin [222.271] PASSENGER RAIL PROJECTS; ENVIRONMENTAL
INSURANCE REQUIRED.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin (a) This section applies to any person that seeks a Previous federal Next or state
permit or other formal legal authorization to construct or operate a passenger rail project
with an estimated capital cost exceeding $1,000,000,000.
new text end

new text begin (b) This section does not apply to a person whose only action within the scope of
paragraph (a) is an application for a building permit.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, unless the context clearly indicates
otherwise, the following definitions apply.
new text end

new text begin (b) "Commissioner" means the commissioner of the Pollution Control Agency.
new text end

new text begin (c) "Insurance" means a commercial insurance policy, a security bond, or an equivalent
guarantee that provides assurance of the project's ability to pay claims for any liability under
chapter 115B or similar provisions of common law or Previous federal Next law resulting from construction
or operation of the passenger rail project.
new text end

new text begin (d) "Passenger rail project" or "project" means a railroad or a line or lines of a railway
located within or partly within Minnesota intended to provide passenger service, regardless
of whether freight service is also provided, by a common carrier other than a Previous federal Next or state
government unit, a political subdivision of the state, or the National Railroad Passenger
Corporation created under the Rail Passenger Service Act of 1970, Public Law 91-518.
new text end

new text begin (e) "Person" includes a corporation, limited liability company, partnership, other entity,
or an individual.
new text end

new text begin Subd. 3. new text end

new text begin Environmental insurance required. new text end

new text begin (a) Any person subject to this section
must obtain and maintain insurance that is adequate to cover potential claims and meets the
other requirements of this section, as approved by the commissioner under paragraph (b).
The insurance must not contain dollar limits on liability, or if it does contain a dollar limit
the limit must be not less than a reasonable estimate of the potential exposure of the project
for environmental remediation or impairment damages. Any dollar limit must be adjusted
if the scope, size, or cost of the project increases materially. The insurance must cover any
liability incurred during and after the construction and operation of the project and must
not contain exclusions, limitations, or other restrictions that are not standard in comprehensive
environmental remediation insurance or in environmental impairment insurance, as
applicable.
new text end

new text begin (b) In order to satisfy the requirements of this section, the commissioner must determine
that the insurance is adequate and that it meets the other requirements of this section. The
commissioner may require that the project provide any supporting documentation to
determine that insurance is adequate and meets the other requirements of this section and
that the project has the financial ability to maintain insurance during the project's operations.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for passenger rail projects for which
application for a permit or other formal legal authorization to construct is made after the
day following final enactment.
new text end

Sec. 6.

Minnesota Statutes 2016, section 270A.03, subdivision 7, is amended to read:


Subd. 7.

Refund.

"Refund" means an individual income tax refund deleted text begin or political
contribution refund,
deleted text end pursuant to chapter 290, deleted text begin ordeleted text end a property tax credit or refunddeleted text begin ,deleted text end pursuant to
chapter 290A, or a sustainable forest payment to a claimant under chapter 290C.

For purposes of this chapter, lottery prizes, as set forth in section 349A.08, subdivision
8
, and amounts granted to persons by the legislature on the recommendation of the joint
senate-house of representatives Subcommittee on Claims shall be treated as refunds.

In the case of a joint property tax refund payable to spouses under chapter 290A, the
refund shall be considered as belonging to each spouse in the proportion of the total refund
that equals each spouse's proportion of the total income determined under section 290A.03,
subdivision 3
. In the case of a joint income tax refund under chapter 289A, the refund shall
be considered as belonging to each spouse in the proportion of the total refund that equals
each spouse's proportion of the total taxable income determined under section 290.01,
subdivision 29
. The commissioner shall remit the entire refund to the claimant agency,
which shall, upon the request of the spouse who does not owe the debt, determine the amount
of the refund belonging to that spouse and refund the amount to that spouse. For court fines,
fees, and surcharges and court-ordered restitution under section 611A.04, subdivision 2,
the notice provided by the commissioner of revenue under section 270A.07, subdivision 2,
paragraph (b), serves as the appropriate legal notice to the spouse who does not owe the
debt.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for political contribution refund claims
based on contributions made on or after July 1, 2017.
new text end

Sec. 7.

Minnesota Statutes 2016, section 270C.13, subdivision 1, is amended to read:


Subdivision 1.

Biennial report.

The commissioner shall report to the legislature by
March 1 of each odd-numbered year on the overall incidence of the income tax, sales and
excise taxes, and property tax. The report shall present information on the distribution of
the tax burden as follows: (1) for the overall income distribution, using a systemwide
incidence measure such as the Suits index or other appropriate measures of equality and
inequality; (2) by income classes, including at a minimum deciles of the income distribution;
and (3) by other appropriate taxpayer characteristics.new text begin The report must also include information
on the distribution of the burden of Previous federal Next taxes borne by Minnesota residents.
new text end

Sec. 8.

Minnesota Statutes 2016, section 287.08, is amended to read:


287.08 TAX, HOW PAYABLE; RECEIPTS.

(a) The tax imposed by sections 287.01 to 287.12 must be paid to the treasurer of any
county in this state in which the real property or some part is located at or before the time
of filing the mortgage for record. The treasurer shall endorse receipt on the mortgage and
the receipt is conclusive proof that the tax has been paid in the amount stated and authorizes
any county recorder or registrar of titles to record the mortgage. Its form, in substance, shall
be "registration tax hereon of ..................... dollars paid." If the mortgage is exempt from
taxation the endorsement shall, in substance, be "exempt from registration tax." In either
case the receipt must be signed by the treasurer. In case the treasurer is unable to determine
whether a claim of exemption should be allowed, the tax must be paid as in the case of a
taxable mortgage. For documents submitted electronically, the endorsements and tax amount
shall be affixed electronically and no signature by the treasurer will be required. The actual
payment method must be arranged in advance between the submitter and the receiving
county.

(b) The county treasurer may refund in whole or in part any mortgage registry tax
overpayment if a written application by the taxpayer is submitted to the county treasurer
within 3-1/2 years from the date of the overpayment. If the county has not issued a denial
of the application, the taxpayer may bring an action in Tax Court in the county in which
the tax was paid at any time after the expiration of six months from the time that the
application was submitted. A denial of refund may be appealed within 60 days from the
date of the denial by bringing an action in Tax Court in the county in which the tax was
paid. The action is commenced by the serving of a petition for relief on the county treasurer,
and by filing a copy with the court. The county attorney shall defend the action. The county
treasurer shall notify the treasurer of each county that has or would receive a portion of the
tax as paid.

(c) If the county treasurer determines a refund should be paid, or if a refund is ordered
by the court, the county treasurer of each county that actually received a portion of the tax
shall immediately pay a proportionate share of three percent of the refund using any available
county funds. The county treasurer of each county that received, or would have received,
a portion of the tax shall also pay their county's proportionate share of the remaining 97
percent of the court-ordered refund on or before the 20th day of the following month using
solely the mortgage registry tax funds that would be paid to the commissioner of revenue
on that date under section 287.12. If the funds on hand under this procedure are insufficient
to fully fund 97 percent of the court-ordered refund, the county treasurer of the county in
which the action was brought shall file a claim with the commissioner of revenue under
section 16A.48 for the remaining portion of 97 percent of the refund, and shall pay over the
remaining portion upon receipt of a warrant from the state issued pursuant to the claim.

(d) When any mortgage covers real property located in more than one county in this
state the total tax must be paid to the treasurer of the county where the mortgage is first
presented for recording, and the payment must be receipted as provided in paragraph (a).
If the principal debt or obligation secured by such a multiple county mortgage exceeds
$10,000,000, new text begin the tax collected shall be forwarded by the county treasurer receiving it to the
commissioner of revenue and
new text end the nonstate portion of the tax must be divided and paid over
by the deleted text begin county treasurer receiving itdeleted text end new text begin commissioner of revenuenew text end , on or before the 20th day of
each month after receipt, to the county or counties entitled in the ratio that the estimated
market value of the real property covered by the mortgage in each county bears to the
estimated market value of all the real property in this state described in the mortgage. In
making the division and payment the deleted text begin county treasurerdeleted text end new text begin commissioner of revenuenew text end shall send
a statement giving the description of the real property described in the mortgage and the
estimated market value of the part located in each county. For this purpose, the deleted text begin treasurer of
any county
deleted text end new text begin commissioner of revenuenew text end may require the treasurer of any deleted text begin otherdeleted text end county to certify
to the former the estimated market value of any tract of real property in any mortgagenew text begin in
the county
new text end .

(e) The mortgagor must pay the tax imposed by sections 287.01 to 287.12. The mortgagee
may undertake to collect and remit the tax on behalf of the mortgagor. If the mortgagee
collects money from the mortgagor to remit the tax on behalf of the mortgagor, the mortgagee
has a fiduciary duty to remit the tax on behalf of the mortgagor as to the amount of the tax
collected for that purpose and the mortgagor is relieved of any further obligation to pay the
tax as to the amount collected by the mortgagee for this purpose.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for tax collected after June 30, 2017.
new text end

Sec. 9.

Minnesota Statutes 2016, section 289A.50, subdivision 1, is amended to read:


Subdivision 1.

General right to refund.

(a) Subject to the requirements of this section
and section 289A.40, a taxpayer who has paid a tax in excess of the taxes lawfully due and
who files a written claim for refund will be refunded or credited the overpayment of the tax
determined by the commissioner to be erroneously paid.

(b) The claim must specify the name of the taxpayer, the date when and the period for
which the tax was paid, the kind of tax paid, the amount of the tax that the taxpayer claims
was erroneously paid, the grounds on which a refund is claimed, and other information
relative to the payment and in the form required by the commissioner. An income tax, estate
tax, or corporate franchise tax return, or amended return claiming an overpayment constitutes
a claim for refund.

(c) When, in the course of an examination, and within the time for requesting a refund,
the commissioner determines that there has been an overpayment of tax, the commissioner
shall refund or credit the overpayment to the taxpayer and no demand is necessary. If the
overpayment exceeds $1, the amount of the overpayment must be refunded to the taxpayer.
If the amount of the overpayment is less than $1, the commissioner is not required to refund.
In these situations, the commissioner does not have to make written findings or serve notice
by mail to the taxpayer.

(d) If the amount allowable as a credit for withholding, estimated taxes, or dependent
care exceeds the tax against which the credit is allowable, the amount of the excess is
considered an overpayment. deleted text begin The refund allowed by section 290.06, subdivision 23, is also
considered an overpayment.
deleted text end The requirements of section 270C.33 do not apply to the
refunding of such an overpayment shown on the original return filed by a taxpayer.

(e) If the entertainment tax withheld at the source exceeds by $1 or more the taxes,
penalties, and interest reported in the return of the entertainment entity or imposed by section
290.9201, the excess must be refunded to the entertainment entity. If the excess is less than
$1, the commissioner need not refund that amount.

(f) If the surety deposit required for a construction contract exceeds the liability of the
out-of-state contractor, the commissioner shall refund the difference to the contractor.

(g) An action of the commissioner in refunding the amount of the overpayment does not
constitute a determination of the correctness of the return of the taxpayer.

(h) There is appropriated from the general fund to the commissioner of revenue the
amount necessary to pay refunds allowed under this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for political contribution refund claims
based on contributions made on or after July 1, 2017.
new text end

Sec. 10.

Minnesota Statutes 2016, section 290.01, subdivision 6, is amended to read:


Subd. 6.

Taxpayer.

The term "taxpayer" means any person or corporation subject to a
tax imposed by this chapter. deleted text begin For purposes of section 290.06, subdivision 23, the term
"taxpayer" means an individual eligible to vote in Minnesota under section 201.014.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for political contribution refund claims
based on contributions made on or after July 1, 2017.
new text end

Sec. 11.

Minnesota Statutes 2016, section 296A.01, subdivision 12, is amended to read:


Subd. 12.

Compressed natural gas or CNG.

"Compressed natural gas" or "CNG"
means natural gas, primarily methane, condensed under high pressure and stored in specially
designed storage tanks at between 2,000 and 3,600 pounds per square inch. For purposes
of this chapter, the energy content of CNG is considered to be deleted text begin 1,000deleted text end new text begin 900new text end BTUs per cubic
foot.

new text begin EFFECTIVE DATE. new text end

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

Sec. 12.

Minnesota Statutes 2016, section 296A.08, subdivision 2, is amended to read:


Subd. 2.

Rate of tax.

The special fuel excise tax is imposed at the following rates:

(a) Liquefied petroleum gas or propane is taxed at the rate of 18.75 cents per gallon.

(b) Liquefied natural gas is taxed at the rate of 15 cents per gallon.

(c) Compressed natural gas is taxed at the rate of deleted text begin $2.174deleted text end new text begin $1.974new text end per thousand cubic feet;
or 25 cents per gasoline equivalent. For purposes of this paragraph, "gasoline equivalent,"
as defined by the National Conference on Weights and Measures, is 5.66 pounds of natural
gasnew text begin or 126.67 cubic feetnew text end .

(d) All other special fuel is taxed at the same rate as the gasoline excise tax as specified
in section 296A.07, subdivision 2. The tax is payable in the form and manner prescribed
by the commissioner.

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

Minnesota Statutes 2016, section 296A.16, subdivision 2, is amended to read:


Subd. 2.

Fuel used in other vehicle; claim for refund.

Any person who buys and uses
gasoline for a qualifying purpose other than use in motor vehicles, snowmobiles except as
provided in clause (2), or motorboats, or special fuel for a qualifying purpose other than
use in licensed motor vehicles, and who paid the tax directly or indirectly through the amount
of the tax being included in the price of the gasoline or special fuel, or otherwise, shall be
reimbursed and repaid the amount of the tax paid upon filing with the commissioner a claim
for refund in the form and manner prescribed by the commissioner, and containing the
information the commissioner shall require. By signing any such claim which is false or
fraudulent, the applicant shall be subject to the penalties provided in this chapter for
knowingly making a false claim. The claim shall set forth the total amount of the gasoline
so purchased and used by the applicant other than in motor vehicles, or special fuel purchased
and used by the applicant other than in licensed motor vehicles, and shall state when and
for what purpose it was used. When a claim contains an error in computation or preparation,
the commissioner is authorized to adjust the claim in accordance with the evidence shown
on the claim or other information available to the commissioner. The commissioner, on
being satisfied that the claimant is entitled to the payments, shall approve the claim and
transmit it to the commissioner of management and budget. The words "gasoline" or "special
fuel" as used in this subdivision do not include aviation gasoline or special fuel for aircraft.
Gasoline or special fuel bought and used for a "qualifying purpose" means:

(1) Gasoline or special fuel used in carrying on a trade or business, used on a farm
situated in Minnesota, and used for a farming purpose. "Farm" and "farming purpose" have
the meanings given them in section 6420(c)(2), (3), and (4) of the Internal Revenue Code
as defined in section 289A.02, subdivision 7.

(2) Gasoline or special fuel used for off-highway business use.

(i) "Off-highway business use" means any use off the public highway by a person in
that person's trade, business, or activity for the production of income.

(ii) Off-highway business use includes use of a passenger snowmobile off the public
highways as part of the operations of a resort as defined in section 157.15, subdivision 11;
and use of gasoline or special fuel to operate a power takeoff unit on a vehicle, but not
including fuel consumed during idling time.

(iii) Off-highway business use does not include use as a fuel in a motor vehicle which,
at the time of use, is registered or is required to be registered for highway use under the
laws of any state or foreign country; or use of a licensed motor vehicle fuel tank in lieu of
a separate storage tank for storing fuel to be used for a qualifying purpose, as defined in
this section. Fuel purchased to be used for a qualifying purpose cannot be placed in the fuel
tank of a licensed motor vehicle and must be stored in a separate supply tank.

(3) Gasoline or special fuel placed in the fuel tanks of new motor vehicles, manufactured
in Minnesota, and shipped by interstate carrier to destinations in other states or foreign
countries.

new text begin (4) Special fuel used in one of the following:
new text end

new text begin (i) to power a refrigeration unit mounted on a licensed motor vehicle, provided that the
unit has an engine separate from the one used to propel the vehicle and the fuel is used
exclusively for the unit;
new text end

new text begin (ii) to power an unlicensed motor vehicle that is used solely or primarily to move
semitrailers within a cargo yard, warehouse facility, or intermodal facility; or
new text end

new text begin (iii) to operate a power take-off unit or auxiliary engine in or on a licensed motor vehicle,
whether or not the unit or engine is fueled from the same or a different fuel tank as that
from which the motor vehicle is fueled.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 14.

Minnesota Statutes 2016, section 297A.68, subdivision 19, is amended to read:


Subd. 19.

Petroleum products.

The following petroleum products are exempt:

(1) products upon which a tax has been imposed and paid under chapter 296A, and for
which no refund has been or will be allowed because the buyer used the fuel for nonhighway
use;

(2) products that are used in the improvement of agricultural land by constructing,
maintaining, and repairing drainage ditches, tile drainage systems, grass waterways, water
impoundment, and other erosion control structures;

(3) products purchased by a transit system receiving financial assistance under section
174.24, 256B.0625, subdivision 17, or 473.384;

(4) products purchased by an ambulance service licensed under chapter 144E;

(5) products used in a passenger snowmobile, as defined in section 296A.01, subdivision
39
, for off-highway business use as part of the operations of a resort as provided under
section 296A.16, subdivision 2, clause (2);

(6) products purchased by a state or a political subdivision of a state for use in motor
vehicles exempt from registration under section 168.012, subdivision 1, paragraph (b);

(7) products purchased by providers of transportation to recipients of medical assistance
home and community-based services waivers enrolled in day programs, including adult day
care, family adult day care, day treatment and habilitation, prevocational services, and
structured day services; deleted text begin or
deleted text end

(8) products used in a motor vehicle used exclusively as a mobile medical unit for the
provision of medical or dental services by a federally qualified health center, as defined
under title 19 of the Previous federal Next Social Security Act, as amended by Section 4161 of the Omnibus
Budget Reconciliation Act of 1990new text begin ; or
new text end

new text begin (9) special fuels eligible for a motor fuel tax refund under section 296A.16, subdivision
2, clause (4)
new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 15.

Minnesota Statutes 2016, section 297E.02, subdivision 6, is amended to read:


Subd. 6.

Combined net receipts tax.

(a) In addition to the taxes imposed under
subdivision 1, a tax is imposed on the combined net receipts of the organization. As used
in this section, "combined net receipts" is the sum of the organization's gross receipts from
lawful gambling less gross receipts directly derived from the conduct of paper bingo, raffles,
and paddlewheels, as defined in section 297E.01, subdivision 8, and less the net prizes
actually paid, other than prizes actually paid for paper bingo, raffles, and paddlewheels, new text begin and
less six percent of the amounts actually expended for lawful purpose contributions under
section 349.12, subdivision 25, paragraph (a), clauses (1) to (7) and (9) to (26),
new text end for the fiscal
year. The combined net receipts of an organization are subject to a tax computed according
to the following schedule:

If the combined net receipts
for the fiscal year are:
The tax is:
Not over $87,500
nine percent
Over $87,500, but not over
$122,500
$7,875 plus 18 percent of the amount
over $87,500, but not over $122,500
Over $122,500, but not
over $157,500
$14,175 plus 27 percent of the amount
over $122,500, but not over $157,500
Over $157,500
$23,625 plus 36 percent of the amount
over $157,500

(b) On or before April 1, 2016, the commissioner shall estimate the total amount of
revenue, including interest and penalties, that will be collected for fiscal year 2016 from
taxes imposed under this chapter. If the amount estimated by the commissioner equals or
exceeds $94,800,000, the commissioner shall certify that effective July 1, 2016, the rates
under this paragraph apply in lieu of the rates under paragraph (a) and shall publish a notice
to that effect in the State Register and notify each taxpayer by June 1, 2016. If the rates
under this section apply, the combined net receipts of an organization are subject to a tax
computed according to the following schedule:

If the combined net receipts
for the fiscal year are:
The tax is:
Not over $87,500
8.5 percent
Over $87,500, but not over
$122,500
$7,438 plus 17 percent of the amount
over $87,500, but not over $122,500
Over $122,500, but not
over $157,500
$13,388 plus 25.5 percent of the
amount over $122,500, but not over
$157,500
Over $157,500
$22,313 plus 34 percent of the amount
over $157,500

(c) Gross receipts derived from sports-themed tipboards are exempt from taxation under
this section. For purposes of this paragraph, a sports-themed tipboard means a sports-themed
tipboard as defined in section 349.12, subdivision 34, under which the winning numbers
are determined by the numerical outcome of a professional sporting event.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 16.

Minnesota Statutes 2016, section 298.225, subdivision 1, is amended to read:


Subdivision 1.

Guaranteed distribution.

(a) new text begin Except as provided under paragraph (c),
new text end the distribution of the taconite production tax as provided in section 298.28, subdivisions
3 to 5, 6, paragraph (b), 7, and 8, shall equal the lesser of the following amounts:

(1) the amount distributed pursuant to this section and section 298.28, with respect to
1983 production if the production for the year prior to the distribution year is no less than
42,000,000 taxable tons. If the production is less than 42,000,000 taxable tons, the amount
of the distributions shall be reduced proportionately at the rate of two percent for each
1,000,000 tons, or part of 1,000,000 tons by which the production is less than 42,000,000
tons; or

(2)(i) for the distributions made pursuant to section 298.28, subdivisions 4, paragraphs
(b)
and (c), and 6, paragraph (c), 31.2 percent of the amount distributed pursuant to this
section and section 298.28, with respect to 1983 production;

(ii) for the distributions made pursuant to section 298.28, subdivision 5, paragraphs (b)
and (d), 75 percent of the amount distributed pursuant to this section and section 298.28,
with respect to 1983 production provided that the aid guarantee for distributions under
section 298.28, subdivision 5, paragraph (b), shall be reduced by five cents per taxable ton
for production years 2014 and thereafter.

(b) The distribution of the taconite production tax as provided in section 298.28,
subdivision 2
, shall equal the following amount:

(1) if the production for the year prior to the distribution year is at least 42,000,000
taxable tons, the amount distributed pursuant to this section and section 298.28 with respect
to 1999 production; or

(2) if the production for the year prior to the distribution year is less than 42,000,000
taxable tons, the amount distributed pursuant to this section and section 298.28 with respect
to 1999 production, reduced proportionately at the rate of two percent for each 1,000,000
tons or part of 1,000,000 tons by which the production is less than 42,000,000 tons.

new text begin (c) The distribution of the taconite production tax under section 298.28, subdivision 3,
paragraph (a), guaranteed under this section is equal to the amount distributed under section
298.28, with respect to 1983 production.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for distributions in 2018 and thereafter.
new text end

Sec. 17.

Minnesota Statutes 2016, section 298.28, subdivision 3, is amended to read:


Subd. 3.

Cities; towns.

(a) 12.5 cents per taxable ton, less any amount distributed under
subdivision 8, and paragraph (b), must be allocated to the taconite municipal aid account
to be distributed as provided in section 298.282.new text begin The amount allocated to the taconite
municipal aid account must be annually increased in the same proportion as the increase in
the implicit price deflator as provided in section 298.24, subdivision 1.
new text end

(b) An amount must be allocated to towns or cities that is annually certified by the county
auditor of a county containing a taconite tax relief area as defined in section 273.134,
paragraph (b)
, within which there is (1) an organized township if, as of January 2, 1982,
more than 75 percent of the assessed valuation of the township consists of iron ore or (2) a
city if, as of January 2, 1980, more than 75 percent of the assessed valuation of the city
consists of iron ore.

(c) The amount allocated under paragraph (b) will be the portion of a township's or city's
certified levy equal to the proportion of (1) the difference between 50 percent of January
2, 1982, assessed value in the case of a township and 50 percent of the January 2, 1980,
assessed value in the case of a city and its current assessed value to (2) the sum of its current
assessed value plus the difference determined in (1), provided that the amount distributed
shall not exceed $55 per capita in the case of a township or $75 per capita in the case of a
city. For purposes of this limitation, population will be determined according to the 1980
decennial census conducted by the United States Bureau of the Census. If the current assessed
value of the township exceeds 50 percent of the township's January 2, 1982, assessed value,
or if the current assessed value of the city exceeds 50 percent of the city's January 2, 1980,
assessed value, this paragraph shall not apply. For purposes of this paragraph, "assessed
value," when used in reference to years other than 1980 or 1982, means the appropriate net
tax capacities multiplied by 10.2.

(d) In addition to other distributions under this subdivision, three cents per taxable ton
for distributions in 2009 must be allocated for distribution to towns that are entirely located
within the taconite tax relief area defined in section 273.134, paragraph (b). For distribution
in 2010 through 2014 and for distribution in 2018 and subsequent years, the three-cent
amount must be annually increased in the same proportion as the increase in the implicit
price deflator as provided in section 298.24, subdivision 1. The amount available under this
paragraph will be distributed to eligible towns on a per capita basis, provided that no town
may receive more than $50,000 in any year under this paragraph. Any amount of the
distribution that exceeds the $50,000 limitation for a town under this paragraph must be
redistributed on a per capita basis among the other eligible towns, to whose distributions
do not exceed $50,000.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for distributions in 2018 and thereafter.
new text end

Sec. 18.

new text begin [459.36] NO SPENDING OF PUBLIC MONEY FOR CERTAIN RAIL
PROJECTS.
new text end

new text begin (a) Except as provided in paragraph (b), a governmental unit must not spend or use any
money for any costs related to studying the feasibility of, planning for, designing,
engineering, acquiring property or constructing facilities for or related to, or development
or operation of intercity or interregional passenger rail facilities or operations between the
city of Rochester, or locations in its metropolitan area, and any location in the metropolitan
area, as defined in section 473.121, subdivision 2.
new text end

new text begin (b) The restrictions under this section do not apply to:
new text end

new text begin (1) funds the governmental unit obtains from contributions, grants, or other voluntary
payments made by nongovernmental entities from private sources; and
new text end

new text begin (2) expenditures for costs of public infrastructure, including public utilities, parking
facilities, a multimode transit hub, or similar projects located within the area of the
development district, as defined under section 469.40, and reflected in the development
plan adopted before the enactment of this section, that are intended to serve, and that are
made following the completed construction and commencement of operation of privately
financed and operated intercity or interregional passenger rail facilities.
new text end

new text begin (c) For purposes of this section, "governmental unit" means any of the following, located
in development regions 10 and 11, as designated under section 462.385, subdivision 1:
new text end

new text begin (1) statutory or home rule charter city;
new text end

new text begin (2) county;
new text end

new text begin (3) special taxing district, as defined in section 275.066;
new text end

new text begin (4) metropolitan planning organization; or
new text end

new text begin (5) destination medical center entity, which includes the Destination Medical Center
Corporation and agency, as those terms are defined in section 469.40, and any successor or
related entity.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment without
local approval under Minnesota Statutes, section 645.023, subdivision 1, clause (c).
new text end

Sec. 19.

Minnesota Statutes 2016, section 462.353, subdivision 4, is amended to read:


Subd. 4.

Fees.

(a) A municipality may prescribe fees sufficient to defray the costs incurred
by it in reviewing, investigating, and administering an application for an amendment to an
official control established pursuant to sections 462.351 to 462.364 or an application for a
permit or other approval required under an official control established pursuant to those
sections. Except as provided in subdivision 4a, fees as prescribed must be by ordinance.
Fees must be fair, reasonable, and proportionate and have a nexus to the actual cost of the
service for which the fee is imposed.

(b) A municipality must adopt management and accounting procedures to ensure that
fees are maintained and used only for the purpose for which they are collected. Upon request,
a municipality must explain the basis of its fees.

(c) Except as provided in this paragraph, a fee ordinance or amendment to a fee ordinance
is effective January 1 after its adoption. A municipality may adopt a fee ordinance or an
amendment to a fee ordinance with an effective date other than the next January 1, but the
ordinance or amendment does not apply if an application for final approval has been
submitted to the municipality.

(d) If a dispute arises over a specific fee imposed by a municipality related to a specific
application, the person aggrieved by the fee may appeal under section 462.361, provided
that the appeal must be brought within 60 days after approval of an application under this
section and deposit of the fee into escrow. A municipality must not condition the approval
of any proposed subdivision or development on an agreement to waive the right to challenge
the validity of a fee. An approved application may proceed as if the fee had been paid,
pending a decision on the appeal. This paragraph must not be construed to preclude the
municipality from conditioning approval of any proposed subdivision or development on
an agreement to waive a challenge to the cost associated with municipally installed
improvements of the type described in section 429.021.

new text begin (e) A municipality may not impose a fee to review or investigate a use if the use is
allowed without any permit, approval, or amendment to an official control. This limitation
does not apply to a fee for a review or investigation:
new text end

new text begin (1) of compliance with health and safety requirements; or
new text end

new text begin (2) that results in finding a violation, unless the finding is overturned on appeal or a
penalty, fine, or other charge is imposed for the violation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to fees
imposed on or after that date.
new text end

Sec. 20.

new text begin [473.1467] NO SPENDING FOR CERTAIN RAIL PROJECTS.
new text end

new text begin (a) Except as provided in paragraph (b), the council must not spend or use any money
for any costs related to studying the feasibility of, planning for, designing, engineering,
acquiring property or constructing facilities for or related to, or development or operation
of intercity or interregional passenger rail facilities or operations between the city of
Rochester or locations in its metropolitan area and any location in the metropolitan area, as
defined in section 473.121, subdivision 2.
new text end

new text begin (b) The restrictions under this section do not apply to funds the council obtains from
contributions, grants, or other voluntary payments made by nongovernmental entities from
private sources.
new text end

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective the day following
final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
Scott, and Washington.
new text end

Sec. 21. new text begin CLARIFYING AUTHORITY TO USE PREVIOUSLY DISTRIBUTED
TACONITE TAX PROCEEDS.
new text end

new text begin The commissioner of Iron Range resources and rehabilitation may use unspent amounts
allocated under Minnesota Statutes 2014, section 298.2961, subdivision 5, clause (19),
remaining as of May 22, 2016, for the specific purposes identified in that section.
Notwithstanding Minnesota Statutes, section 298.28, subdivision 11, paragraph (a), or any
other law to the contrary, interest accrued on this amount shall also be distributed to the
recipient. Amounts under this section are available until expended and do not lapse or cancel
under Minnesota Statutes, section 16A.28.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from May 22, 2016.
new text end

Sec. 22. new text begin CITY OF TAYLORS FALLS; DEVELOPMENT ZONE.
new text end

new text begin Subdivision 1. new text end

new text begin Authorization. new text end

new text begin The governing body of the city of Taylors Falls may
designate all or any part of the city as a development zone under Minnesota Statutes, section
469.1731.
new text end

new text begin Subd. 2. new text end

new text begin Application of general law. new text end

new text begin (a) Minnesota Statutes, sections 469.1731 to
469.1735, apply to the development zones designated under this section. The governing
body of the city may exercise the powers granted under Minnesota Statutes, sections 469.1731
to 469.1735, including powers that apply outside of the zones.
new text end

new text begin (b) The allocation under subdivision 3 for purposes of Minnesota Statutes, section
469.1735, subdivision 2, is appropriated to the commissioner of revenue.
new text end

new text begin Subd. 3. new text end

new text begin Allocation of state tax reductions. new text end

new text begin (a) The cumulative total amount of the
state portion of the tax reductions for all years of the program under Minnesota Statutes,
sections 469.1731 to 469.1735, for the city of Taylors Falls, is limited to $100,000. To
provide the authority under this section, the amount of the allocation for border cities under
Minnesota Statutes, section 469.169, in this act is reduced by $100,000.
new text end

new text begin (b) This allocation may be used for tax reductions provided in Minnesota Statutes, section
469.1732 or 469.1734, or for reimbursements under Minnesota Statutes, section 469.1735,
subdivision 3, but only if the governing body of the city of Taylors Falls determines that
the tax reduction or offset is necessary to enable a business to expand within the city or to
attract a business to the city.
new text end

new text begin (c) The commissioner of revenue may waive the limit under this subdivision using the
same rules and standards provided in Minnesota Statutes, section 469.169, subdivision 12,
paragraph (b).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017, and does not require local
approval pursuant to Minnesota Statutes, section 645.023, subdivision 1, paragraph (a).
new text end

Sec. 23. new text begin SUPPLEMENT TO 2017 REPORT.
new text end

new text begin By January 2, 2018, the commissioner of revenue shall prepare a supplement to the 2017
tax incidence report containing the information required by section 7.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 24. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2016, sections 10A.322, subdivision 4; 13.4967, subdivision 2;
and 290.06, subdivision 23,
new text end new text begin and new text end new text begin Minnesota Rules, part 4503.1400, subpart 4, new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2016, section 477A.20, new text end new text begin is repealed.
new text end

new text begin (c) new text end new text begin Minnesota Statutes 2016, sections 136A.129; and 290.06, subdivision 36, new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) is effective for contributions made after June 30,
2017, and refund claims filed after June 30, 2017. Paragraph (b) is effective the day following
final enactment. Paragraph (c) is effective for agreements entered into after June 30, 2017,
and for taxable years beginning after December 31, 2017.
new text end

ARTICLE 13

TRANSPORTATION-RELATED TAXES

Section 1.

new text begin [174.54] TRANSPORTATION PRIORITIES FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Fund established. new text end

new text begin A transportation priorities fund is established in the
state treasury, under the budgetary jurisdiction of the legislative committees having
jurisdiction over transportation finance. The fund consists of money provided by law, and
any other funds donated, allotted, transferred, or otherwise provided. Money in the fund
must be allocated solely for transportation purposes as specified in this section and as
provided by law.
new text end

Sec. 2.

Minnesota Statutes 2016, section 297A.815, subdivision 3, is amended to read:


Subd. 3.

Motor vehicle lease sales tax revenue.

deleted text begin (a) For purposes of this subdivision,
"net revenue" means an amount equal to the revenues, including interest and penalties,
collected under this section, during the fiscal year; less $32,000,000 in each fiscal year.
deleted text end

deleted text begin (b)deleted text end new text begin (a)new text end On or before June 30 of each fiscal year, the commissioner of revenue shall
estimate the amount of deleted text begin the net revenuedeleted text end new text begin revenues, including interest and penalties, collected
under this section
new text end for the current fiscal year.

deleted text begin (c)deleted text end new text begin (b)new text end On or after July 1 of the subsequent fiscal year, the commissioner of management
and budget shall transfer the deleted text begin net revenue asdeleted text end new text begin revenuesnew text end estimated in paragraph deleted text begin (b)deleted text end new text begin (a)new text end from
the general funddeleted text begin , as follows:
deleted text end

deleted text begin (1) $9,000,000 annually until January 1, 2015, and 50 percent annually thereafter to the
county state-aid highway fund. Notwithstanding any other law to the contrary, the
commissioner of transportation shall allocate the funds transferred under this clause to the
counties in the metropolitan area, as defined in section 473.121, subdivision 4, excluding
the counties of Hennepin and Ramsey, so that each county shall receive of such amount the
percentage that its population, as defined in section 477A.011, subdivision 3, estimated or
established by July 15 of the year prior to the current calendar year, bears to the total
population of the counties receiving funds under this clause; and
deleted text end

deleted text begin (2) the remainder to the greater Minnesota transit accountdeleted text end new text begin to the transportation priorities
fund
new text end .

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies beginning with transfers recognized in fiscal year 2018.
new text end

Sec. 3.

Minnesota Statutes 2016, section 297A.94, is amended to read:


297A.94 DEPOSIT OF REVENUES.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

new text begin (g) Beginning with sales taxes remitted after July 1, 2017, the commissioner shall deposit
the revenues, including interest and penalties, derived from the taxes imposed on the lease
or rental of a motor vehicle under section 297A.64, subdivision 1, into the state treasury
and credit the revenues to the transportation priorities fund.
new text end

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

new text begin (i) $156,800,000 in fiscal year 2018, $151,100,000 in fiscal year 2019, $266,618,000
in fiscal year 2020, and $287,718,000 in fiscal year 2021 are transferred from the general
fund to the commissioner for deposit in the transportation priorities fund. Annually in fiscal
year 2022 and thereafter, 4.293 percent of the revenues generated by the sales tax imposed
under section 297A.62, subdivision 1, is transferred from the general fund to the
commissioner for deposit in the transportation priorities fund. The commissioner must make
transfers under this paragraph by July 15 in each year. Transfers in this paragraph represent
revenues attributable to sales and purchases of motor vehicle repair and replacement parts.
new text end

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 4.

Minnesota Statutes 2016, section 297A.992, subdivision 6a, is amended to read:


Subd. 6a.

Priority of fund uses.

new text begin (a) new text end The joint powers board shall allocate all revenues
from the taxes imposed under this section in conformance with the following priority order:

(1) payment of debt service necessary for the fiscal year on bonds or other obligations
issued prior to January 1, 2011, under subdivision 7; deleted text begin and
deleted text end

(2) new text begin payment to the Metropolitan Council of 100 percent, or a portion that is not paid by
counties under section 297A.993, subdivision 2a, of the annual net operating and capital
maintenance costs, as certified by the Metropolitan Council, for all light rail transit lines in
which a grant award for project development, capital, capital maintenance, or operating
expenditures has been provided under this section; and
new text end

new text begin (3) new text end as otherwise authorized under this section.

new text begin (b) Project development in this subdivision includes but is not limited to feasibility and
alternatives analysis, design, engineering, environmental analysis, property acquisition, and
construction.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies for costs occurring on or after July 1, 2017.
new text end

Sec. 5.

Minnesota Statutes 2016, section 297A.993, subdivision 1, is amended to read:


Subdivision 1.

Authorization; rates.

Notwithstanding section 297A.99, subdivisions
1, 2, 3, 5, and 13, or 477A.016, or any other law, the board of a county outside the
metropolitan transportation area, as defined under section 297A.992, subdivision 1, or more
than one county outside the metropolitan transportation area acting under a joint powers
agreement, new text begin except when subject to voter approval, as provided in subdivision 1a, new text end may by
resolution of the county board, or each of the county boards, following a public hearing
impose (1) a transportation sales tax at a rate of up to one-half of one percent on retail sales
and uses taxable under this chapter, and (2) an excise tax of $20 per motor vehicle, as defined
in section 297B.01, subdivision 11, purchased or acquired from any person engaged in the
business of selling motor vehicles at retail, occurring within the jurisdiction of the taxing
authority.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective after March 31, 2017, and applies to new
taxes or expansions of the use of existing taxes after that date.
new text end

Sec. 6.

Minnesota Statutes 2016, section 297A.993, is amended by adding a subdivision
to read:


new text begin Subd. 1a. new text end

new text begin Certain counties; voter approval; limitations. new text end

new text begin (a) Notwithstanding
subdivision 1, a county that had imposed a tax under section 297A.992 may not impose a
tax under this section greater than one quarter of one percent unless approved at a general
election by the majority of voters who vote on the question to impose the taxes.
new text end

new text begin (b) Notwithstanding subdivision 2, a county that had imposed a tax under section
297A.992 may not expand the use of revenue from an existing tax under this section for
any new transit project that will require an operating subsidy of $10,000,000 or more per
year, unless the new use is approved by the majority of voters voting on the question at a
general election.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from March 15, 2017.
new text end

Sec. 7.

Minnesota Statutes 2016, section 297A.993, subdivision 2, is amended to read:


Subd. 2.

Allocation; termination.

The proceeds of the taxes must be dedicated
exclusively to: (1) payment of the capital cost of a specific transportation project or
improvement; (2) payment of the costs, which may include both capital and operating costs,
of a specific transit project or improvement; (3) payment of the capital costs of a safe routes
to school program under section 174.40; or (4) payment of transit operatingnew text begin and capital
maintenance
new text end costsnew text begin , including as provided in subdivision 2anew text end . The transportation or transit
project or improvement must be designated by the board of the county, or more than one
county acting under a joint powers agreement. Except for taxes for operating costs of a
transit project or improvement, or for transit operations, the taxes must terminate when
revenues raised are sufficient to finance the project.

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Minnesota Statutes 2016, section 297A.993, is amended by adding a subdivision
to read:


new text begin Subd. 2a. new text end

new text begin Allocation for certain transitways. new text end

new text begin (a) This subdivision applies to a county:
new text end

new text begin (1) that has previously imposed and is no longer imposing a local sales tax as part of a
joint powers agreement under section 297A.992;
new text end

new text begin (2) that imposes the tax under this section; and
new text end

new text begin (3) in which a light rail transit line is located, whether wholly or partially.
new text end

new text begin (b) All counties subject to this subdivision, and the joint powers board under section
297A.992 if the joint powers agreement under section 297A.992, subdivision 3, is not
terminated, must collectively enter into an agreement that determines and allocates payments
to the Metropolitan Council that, in total, equal at least the amount required to be provided
under section 297A.992, subdivision 6a, paragraph (a), clause (2). Nothing in this paragraph
prevents payments from other entities or sources of funds.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2016, section 398A.10, subdivision 3, is amended to read:


Subd. 3.

Application.

This section only applies to a county that has imposed the
metropolitan transportation sales and use tax under section 297A.992new text begin and applies whether
the tax is currently in effect or not
new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 10.

Minnesota Statutes 2016, section 398A.10, subdivision 4, is amended to read:


Subd. 4.

Definition.

For purposes of this section, "project" means the initial construction
new text begin or extension new text end of a minimum operable segment of a new light rail transit or commuter rail
line, but does not include infill stations, project enhancements, deleted text begin extensions,deleted text end or supportive
infrastructure, constructed after the rail transit is operational.

new text begin EFFECTIVE DATE. new text end

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

Sec. 11. new text begin MOTOR VEHICLE PARTS SALES TAXES ESTIMATION.
new text end

new text begin (a) By January 15, 2019, the commissioner of revenue must submit a report on state
general sales taxes attributable to motor vehicle repair and replacement parts to the chairs
and ranking minority members of the legislative committees with jurisdiction over taxes
and transportation policy and finance.
new text end

new text begin (b) The report must provide an estimate, based on Previous federal Next data and department
consumption models, of the percentage of total sales tax revenues collected in a calendar
year from the tax rate imposed under Minnesota Statutes, section 297A.62, subdivision 1,
that is attributable to sales and purchases of motor vehicle repair and replacement parts.
new text end

new text begin (c) For purposes of this section, "motor vehicle repair and replacement parts" includes:
new text end

new text begin (1) all parts, motor vehicle tires, accessories, and equipment incorporated into or affixed
to the motor vehicle as part of the motor vehicle maintenance or repair; and
new text end

new text begin (2) paint, oil, and other fluids that remain on or in the motor vehicle as part of the motor
vehicle maintenance or repair.
new text end

new text begin (d) For purposes of this section, "motor vehicle tire" means any tire of the type used on
highway vehicles if wholly or partially made of rubber and if marked according to Previous federal Next
regulations for highway use. For purposes of this section, "motor vehicle" has the meaning
given in Minnesota Statutes, section 297B.01, subdivision 11.
new text end

Sec. 12. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, section 297A.992, subdivision 12, new text end new text begin is repealed.
new text end

ARTICLE 14

VEHICLE TAXES AND FEES

Section 1.

Minnesota Statutes 2016, section 168.013, subdivision 1a, is amended to read:


Subd. 1a.

Passenger automobile; hearse.

(a) On passenger automobiles as defined in
section 168.002, subdivision 24, and hearses, except as otherwise provided, the tax deleted text begin shall bedeleted text end new text begin
is
new text end $10 plus an additional tax equal to 1.25 percent of the base value.

(b) Subject to the classification provisions herein, "base value" means the manufacturer's
suggested retail price of the vehicle including destination charge using list price information
published by the manufacturer or determined by the registrar if no suggested retail price
exists, and shall not include the cost of each accessory or item of optional equipment
separately added to the vehicle and the suggested retail price.

(c) If the manufacturer's list price information contains a single vehicle identification
number followed by various descriptions and suggested retail prices, the registrar shall
select from those listings only the lowest price for determining base value.

(d) If unable to determine the base value because the vehicle is specially constructed,
or for any other reason, the registrar may establish such value upon the cost price to the
purchaser or owner as evidenced by a certificate of cost but not including Minnesota sales
or use tax or any local sales or other local tax.

(e) The registrar shall classify every vehicle in its proper base value class as follows:

FROM
TO
$
0
$ 199.99
$
200
$ 399.99

and thereafter a series of classes successively set in brackets having a spread of $200
consisting of such number of classes as will permit classification of all vehicles.

(f) The base value for purposes of this section shall be the middle point between the
extremes of its class.

(g) The registrar shall establish the base value, when new, of every passenger automobile
and hearse registered prior to the effective date of Extra Session Laws 1971, chapter 31,
using list price information published by the manufacturer or any nationally recognized
firm or association compiling such data for the automotive industry. If unable to ascertain
the base value of any registered vehicle in the foregoing manner, the registrar may use any
other available source or method. The registrar shall calculate tax using base value
information available to dealers and deputy registrars at the time the application for
registration is submitted. The tax on all previously registered vehicles shall be computed
upon the base value thus determined taking into account the depreciation provisions of
paragraph (h).

(h) The annual additional tax must be computed upon a percentage of the base value as
follows: during the first year of vehicle life, upon 100 percent of the base value; for the
second year, 90 percent of such value; for the third year, 80 percent of such value; for the
fourth year, 70 percent of such value; for the fifth year, 60 percent of such value; for the
sixth year, 50 percent of such value; for the seventh year, 40 percent of such value; for the
eighth year, 30 percent of such value; for the ninth year, 20 percent of such value; for the
tenth year, ten percent of such value; for the 11th and each succeeding year, the sum of $25.

(i) In no event shall the annual additional tax be less than $25.

(j) For any vehicle previously registered in Minnesotanew text begin and regardless of prior ownershipnew text end ,
the deleted text begin annual additional taxdeleted text end new text begin total amountnew text end due under this subdivision new text begin and subdivision 1m new text end must
not exceed the smallestnew text begin totalnew text end amount deleted text begin of annual additional taxdeleted text end previously paid or due on the
vehicle.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment, and
applies to taxes payable for a registration period starting on or after January 1, 2018.
new text end

Sec. 2.

Minnesota Statutes 2016, section 168.013, is amended by adding a subdivision to
read:


new text begin Subd. 1m. new text end

new text begin Electric vehicle. new text end

new text begin In addition to the tax under subdivision 1a, a surcharge of
$75 is imposed for an all-electric vehicle, as defined in section 169.011, subdivision 1a.
Notwithstanding subdivision 8, revenue from the fee imposed under this subdivision must
be deposited in the highway user tax distribution fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment, and
applies to a registration period starting on or after January 1, 2018.
new text end

Sec. 3.

Minnesota Statutes 2016, section 169.011, is amended by adding a subdivision to
read:


new text begin Subd. 1a. new text end

new text begin All-electric vehicle. new text end

new text begin (a) "All-electric vehicle" means an electric vehicle that
is solely able to be powered by an electric motor drawing current from rechargeable storage
batteries, fuel cells, or other portable sources of electrical current.
new text end

new text begin (b) All-electric vehicle excludes a plug-in hybrid electric vehicle.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment, and
applies to a registration period starting on or after January 1, 2018.
new text end

ARTICLE 15

DEPARTMENT OF REVENUE 2015-2016 SALES SUPPRESSION PROVISIONS

Section 1.

new text begin [289A.14] USE OF AUTOMATED SALES SUPPRESSION DEVICES;
DEFINITIONS.
new text end

new text begin (a) For the purposes of sections 289A.60, subdivision 32, 289A.63, subdivision 12, and
609.5316, subdivision 3, the following terms have the meanings given.
new text end

new text begin (b) "Automated sales suppression device" or "zapper" means a software program, carried
on any tangible medium, or accessed through any other means, that falsifies the electronic
records of electronic cash registers and other point-of-sale systems including, but not limited
to, transaction data and transaction reports.
new text end

new text begin (c) "Electronic cash register" means a device that keeps a register or supporting documents
through the means of an electronic device or computer system designed to record transaction
data for the purpose of computing, compiling, or processing retail sales transaction data in
whatever manner.
new text end

new text begin (d) "Phantom-ware" means hidden preinstalled or later-installed programming option
embedded in the operating system of an electronic cash register or hardwired into the
electronic cash register that can be used to create a virtual second electronic cash register
or may eliminate or manipulate transaction records that may or may not be preserved in
digital formats to represent the true or manipulated record of transactions in the electronic
cash register.
new text end

new text begin (e) "Transaction data" includes items purchased by a customer, the price of each item,
the taxability determination for each item, a segregated tax amount for each of the taxed
items, the date and time of the purchase, the name, address, and identification number of
the vendor, and the receipt or invoice number of the transaction.
new text end

new text begin (f) "Transaction report" means a report documenting, but not limited to, the sales, taxes
collected, media totals, and discount voids at an electronic cash register that is printed on
cash register tape at the end of a day or shift, or a report documenting every action at an
electronic cash register that is stored electronically.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for activities enumerated in Minnesota
Statutes, section 289A.63, subdivision 12, or 289A.60, subdivision 32, that occur on or after
August 1, 2017.
new text end

Sec. 2.

Minnesota Statutes 2016, section 289A.60, is amended by adding a subdivision to
read:


new text begin Subd. 32. new text end

new text begin Sales suppression. new text end

new text begin (a) A person who:
new text end

new text begin (1) sells;
new text end

new text begin (2) transfers;
new text end

new text begin (3) develops;
new text end

new text begin (4) manufactures; or
new text end

new text begin (5) possesses with the intent to sell or transfer
new text end

new text begin an automated sales suppression device, zapper, phantom-ware, or similar device capable of
being used to commit tax fraud or suppress sales is liable for a civil penalty calculated under
paragraph (b).
new text end

new text begin (b) The amount of the civil penalty equals the greater of (1) $2,000, or (2) the total
amount of all taxes and penalties due that are attributable to the use of any automated sales
suppression device, zapper, phantom-ware, or similar device facilitated by the sale, transfer,
development, or manufacture of the automated sales suppression device, zapper,
phantom-ware, or similar device by the person.
new text end

new text begin (c) The definitions in section 289A.14 apply to this subdivision.
new text end

new text begin (d) This subdivision does not apply to the commissioner, a person acting at the direction
of the commissioner, an agent of the commissioner, law enforcement agencies, or
postsecondary education institutions that possess an automated sales suppression device,
zapper, or phantom-ware for study to combat the evasion of taxes by use of the automated
sales suppression devices, zappers, or phantom-ware.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for activities enumerated that occur on
or after August 1, 2017.
new text end

Sec. 3.

Minnesota Statutes 2016, section 289A.63, is amended by adding a subdivision to
read:


new text begin Subd. 12. new text end

new text begin Felony. new text end

new text begin (a) A person who sells, purchases, installs, transfers, develops,
manufactures, or uses an automated sales suppression device, zapper, phantom-ware, or
similar device knowing that the device or phantom-ware is capable of being used to commit
tax fraud or suppress sales is guilty of a felony and may be sentenced to imprisonment for
not more than five years or to a payment of a fine of not more than $10,000, or both.
new text end

new text begin (b) An automated sales suppression device, zapper, phantom-ware, and any other device
containing an automated sales suppression, zapper, or phantom-ware device or software is
contraband and subject to forfeiture under section 609.5316.
new text end

new text begin (c) The definitions in section 289A.14 apply to this subdivision.
new text end

new text begin (d) This subdivision does not apply to the commissioner, a person acting at the direction
of the commissioner, an agent of the commissioner, law enforcement agencies, or
postsecondary education institutions that possess an automated sales suppression device,
zapper, or phantom-ware for study to combat the evasion of taxes by use of the automated
sales suppression devices, zappers, or phantom-ware.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for activities enumerated that occur on
or after August 1, 2017.
new text end

Sec. 4.

Minnesota Statutes 2016, section 609.5316, subdivision 3, is amended to read:


Subd. 3.

Weapons, telephone cloning paraphernalia, new text begin automated sales suppression
devices,
new text end and bullet-resistant vests.

Weapons used are contraband and must be summarily
forfeited to the appropriate agency upon conviction of the weapon's owner or possessor for
a controlled substance crime; for any offense of this chapter or chapter 624, or for a violation
of an order for protection under section 518B.01, subdivision 14. Bullet-resistant vests, as
defined in section 609.486, worn or possessed during the commission or attempted
commission of a crime are contraband and must be summarily forfeited to the appropriate
agency upon conviction of the owner or possessor for a controlled substance crime or for
any offense of this chapter. Telephone cloning paraphernalia used in a violation of section
609.894new text begin , and automated sales suppression devices, phantom-ware, and other devices
containing an automated sales suppression or phantom-ware device or software used in
violation of section 289A.63, subdivision 12,
new text end are contraband and must be summarily forfeited
to the appropriate agency upon a conviction.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for activities enumerated in Minnesota
Statutes, section 289A.63, subdivision 12, that occur on or after August 1, 2017.
new text end

ARTICLE 16

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

Section 1.

Minnesota Statutes 2016, section 289A.08, subdivision 11, is amended to read:


Subd. 11.

Information included in income tax return.

(a) The return must state:

(1) the name of the taxpayer, or taxpayers, if the return is a joint return, and the address
of the taxpayer in the same name or names and same address as the taxpayer has used in
making the taxpayer's income tax return to the United States;

(2) the date or dates of birth of the taxpayer or taxpayers;

(3) the Social Security number of the taxpayer, or taxpayers, if a Social Security number
has been issued by the United States with respect to the taxpayers; and

(4) the amount of the taxable income of the taxpayer as it appears on the Previous federal Next return
for the taxable year to which the Minnesota state return applies.

(b) The taxpayer must attach to the taxpayer's Minnesota state income tax return a copy
of the Previous federal Next income tax return that the taxpayer has filed or is about to file for the perioddeleted text begin ,
unless the taxpayer is eligible to telefile the Previous federal Next return and does file the Minnesota return
by telefiling
deleted text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2016, section 289A.08, subdivision 16, is amended to read:


Subd. 16.

Tax refund or return preparers; electronic filing; paper filing fee imposed.

(a) A "tax refund or return preparer," as defined in section 289A.60, deleted text begin subdivision deleted text end deleted text begin 13deleted text end deleted text begin , paragraph
(f),
deleted text end who is a tax return preparer for purposes of section 6011(e) of the Internal Revenue
Code, and who reasonably expects to prepare more than ten Minnesota individual incomenew text begin ,
corporate franchise, S corporation, partnership, or fiduciary income
new text end tax returns for the prior
deleted text begin calendardeleted text end year must file all Minnesota individual incomenew text begin , corporate franchise, S corporation,
partnership, or fiduciary income
new text end tax returns prepared for that deleted text begin calendardeleted text end year by electronic
means.

(b) Paragraph (a) does not apply to a return if the taxpayer has indicated on the return
that the taxpayer did not want the return filed by electronic means.

(c) For each return that is not filed electronically by a tax refund or return preparer under
this subdivision, including returns filed under paragraph (b), a paper filing fee of $5 is
imposed upon the preparer. The fee is collected from the preparer in the same manner as
income tax. The fee does not apply to returns that the commissioner requires to be filed in
paper form.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016.
new text end

Sec. 3.

Minnesota Statutes 2016, section 289A.09, subdivision 2, is amended to read:


Subd. 2.

Withholding statement.

(a) A person required to deduct and withhold from
an employee a tax under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, or
who would have been required to deduct and withhold a tax under section 290.92, subdivision
2a
or 3, or persons required to withhold tax under section 290.923, subdivision 2, determined
without regard to section 290.92, subdivision 19, if the employee or payee had claimed no
more than one withholding exemption, or who paid wages or made payments not subject
to withholding under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, to an
employee or person receiving royalty payments in excess of $600, or who has entered into
a voluntary withholding agreement with a payee under section 290.92, subdivision 20, must
give every employee or person receiving royalty payments in respect to the remuneration
paid by the person to the employee or person receiving royalty payments during the calendar
year, on or before January 31 of the succeeding year, or, if employment is terminated before
the close of the calendar year, within 30 days after the date of receipt of a written request
from the employee if the 30-day period ends before January 31, a written statement showing
the following:

(1) name of the person;

(2) the name of the employee or payee and the employee's or payee's Social Security
account number;

(3) the total amount of wages as that term is defined in section 290.92, subdivision 1,
paragraph (1); the total amount of remuneration subject to withholding under section 290.92,
subdivision 20
; the amount of sick pay as required under section 6051(f) of the Internal
Revenue Code; and the amount of royalties subject to withholding under section 290.923,
subdivision 2
; and

(4) the total amount deducted and withheld as tax under section 290.92, subdivision 2a
or 3, or 290.923, subdivision 2.

(b) The statement required to be furnished by paragraph (a) with respect to any
remuneration must be furnished at those times, must contain the information required, and
must be in the form the commissioner prescribes.

(c) The commissioner may prescribe rules providing for reasonable extensions of time,
not in excess of 30 days, to employers or payers required to give the statements to their
employees or payees under this subdivision.

(d) A duplicate of any statement made under this subdivision and in accordance with
rules prescribed by the commissionerdeleted text begin , along with a reconciliation in the form the
commissioner prescribes of the statements for the calendar year, including a reconciliation
of the quarterly returns required to be filed under subdivision 1,
deleted text end must be filed with the
commissioner on or before deleted text begin February 28deleted text end new text begin January 31new text end of the year after the payments were
made.

(e) If an employer cancels the employer's Minnesota withholding account number required
by section 290.92, subdivision 24, the information required by paragraph (d), must be filed
with the commissioner within 30 days of the end of the quarter in which the employer
cancels its account number.

(f) The employer must submit the statements required to be sent to the commissioner deleted text begin in
the same manner required to satisfy the Previous federal Next reporting requirements of section 6011(e)
of the Internal Revenue Code and the regulations issued under it. An employer must submit
statements to the commissioner required by this section by electronic means if the employer
is required to send more than 25 statements to the commissioner, even though the employer
is not required to submit the returns federally by electronic means. For statements issued
for wages paid in 2011 and after, the threshold is ten. All statements issued for withholding
required under section 290.92 are aggregated for purposes of determining whether the
electronic submission threshold is met
deleted text end .new text begin The commissioner shall prescribe the content, format,
and manner of the statement pursuant to section 270C.30.
new text end

(g) A "third-party bulk filer" as defined in section 290.92, subdivision 30, paragraph
(a), clause (2), must submit the returns required by this subdivision and subdivision 1,
paragraph (a), with the commissioner by electronic means.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for statements required to be sent to the
commissioner after December 31, 2017, except that the date change in paragraph (d) is
effective for wages paid after December 31, 2016.
new text end

Sec. 4.

Minnesota Statutes 2016, section 289A.12, subdivision 14, is amended to read:


Subd. 14.

deleted text begin Regulated investment companies;deleted text end Reportingnew text begin exempt interest andnew text end
exempt-interest dividends.

(a) A regulated investment company paying $10 or more in
exempt-interest dividends to an individual who is a resident of Minnesotanew text begin , or any person
receiving $10 or more of exempt interest or exempt-interest dividends and paying as nominee
to an individual who is a resident of Minnesota,
new text end must make a return indicating the amount
of thenew text begin exempt interest ornew text end exempt-interest dividends, the name, address, and Social Security
number of the recipient, and any other information that the commissioner specifies. The
return must be provided to the deleted text begin shareholderdeleted text end new text begin recipientnew text end by February 15 of the year following
the year of the payment. The return provided to the deleted text begin shareholderdeleted text end new text begin recipientnew text end must include a
clear statement, in the form prescribed by the commissioner, that thenew text begin exempt interest ornew text end
exempt-interest dividends must be included in the computation of Minnesota taxable income.
By June 1 of each year, the deleted text begin regulated investment companydeleted text end new text begin payornew text end must file a copy of the
return with the commissioner.

(b) For purposes of this subdivision, the following definitions apply.

(1) "Exempt-interest dividends" mean exempt-interest dividends as defined in section
852(b)(5) of the Internal Revenue Code, but does not include the portion of exempt-interest
dividends that are not required to be added to Previous federal Next taxable income under section 290.0131,
subdivision 2
, paragraph (b).

(2) "Regulated investment company" means regulated investment company as defined
in section 851(a) of the Internal Revenue Code or a fund of the regulated investment company
as defined in section 851(g) of the Internal Revenue Code.

new text begin (3) "Exempt interest" means income on obligations of any state other than Minnesota,
or a political or governmental subdivision, municipality, or governmental agency or
instrumentality of any state other than Minnesota, and exempt from Previous federal Next income taxes
under the Internal Revenue Code or any other Previous federal Next statute.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for reports required to be filed after
December 31, 2017.
new text end

Sec. 5.

Minnesota Statutes 2016, section 289A.18, is amended by adding a subdivision to
read:


new text begin Subd. 2a. new text end

new text begin Annual withholding returns; eligible employers. new text end

new text begin (a) An employer who
deducts and withholds an amount required to be withheld by section 290.92 may file an
annual return and make an annual payment of the amount required to be deducted and
withheld for that calendar year if the employer has received a notification under paragraph
(b). The ability to elect to file an annual return continues through the year following the
year where an employer is required to deduct and withhold more than $500.
new text end

new text begin (b) The commissioner is authorized to determine which employers are eligible to file
an annual return and to notify employers who newly qualify to file an annual return because
the amount an employer is required to deduct and withhold for that calendar year is $500
or less based on the most recent period of four consecutive quarters for which the
commissioner has compiled data on that employer's withholding tax for that period. At the
time of notification, eligible employers may still decide to file returns and make deposits
quarterly. An employer who decides to file returns and make deposits quarterly is required
to make all returns and deposits required by this chapter and, notwithstanding paragraph
(a), is subject to all applicable penalties for failing to do so.
new text end

new text begin (c) If, at the end of any calendar month other than the last month of the calendar year,
the aggregate amount of undeposited tax withheld by an employer who has elected to file
an annual return exceeds $500, the employer must deposit the aggregate amount with the
commissioner within 30 days of the end of the calendar month.
new text end

new text begin (d) If an employer who has elected to file an annual return ceases to pay wages for which
withholding is required, the employer must file a final return and deposit any undeposited
tax within 30 days of the end of the calendar month following the month in which the
employer ceased paying wages.
new text end

new text begin (e) An employer not subject to paragraph (c) or (d) who elects to file an annual return
must file the return and pay the tax not previously deposited before February 1 of the year
following the year in which the tax was withheld.
new text end

new text begin (f) A notification to an employer regarding eligibility to file an annual return under
Minnesota Rules, part 8092.1400, is considered a notification under paragraph (a).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016.
new text end

Sec. 6.

Minnesota Statutes 2016, section 289A.20, subdivision 2, is amended to read:


Subd. 2.

Withholding from wages, entertainer withholding, withholding from
payments to out-of-state contractors, and withholding by partnerships, small business
corporations, trusts.

(a) new text begin Except as provided in section 289A.18, subdivision 2a, new text end a tax
required to be deducted and withheld during the quarterly period must be paid on or before
the last day of the month following the close of the quarterly period, unless an earlier time
for payment is provided. A tax required to be deducted and withheld from compensation
of an entertainer and from a payment to an out-of-state contractor must be paid on or before
the date the return for such tax must be filed under section 289A.18, subdivision 2. Taxes
required to be deducted and withheld by partnerships, S corporations, and trusts must be
paid on a quarterly basis as estimated taxes under section 289A.25 for partnerships and
trusts and under section 289A.26 for S corporations.

(b) An employer who, during the previous quarter, withheld more than $1,500 of tax
under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, must deposit tax
withheld under those sections with the commissioner within the time allowed to deposit the
employer's Previous federal Next withheld employment taxes under Code of Previous Federal Next Regulations, title 26,
section 31.6302-1, as amended through December 31, 2001, without regard to the safe
harbor or de minimis rules in paragraph (f) or the one-day rule in paragraph (c)(3). Taxpayers
must submit a copy of their Previous federal Next notice of deposit status to the commissioner upon request
by the commissioner.

(c) The commissioner may prescribe by rule other return periods or deposit requirements.
In prescribing the reporting period, the commissioner may classify payors according to the
amount of their tax liability and may adopt an appropriate reporting period for the class that
the commissioner judges to be consistent with efficient tax collection. In no event will the
duration of the reporting period be more than one year.

(d) If less than the correct amount of tax is paid to the commissioner, proper adjustments
with respect to both the tax and the amount to be deducted must be made, without interest,
in the manner and at the times the commissioner prescribes. If the underpayment cannot be
adjusted, the amount of the underpayment will be assessed and collected in the manner and
at the times the commissioner prescribes.

(e) If the aggregate amount of the tax withheld is $10,000 or more in a fiscal year ending
June 30, the employer must remit each required deposit for wages paid in all subsequent
calendar years by electronic means.

(f) A third-party bulk filer as defined in section 290.92, subdivision 30, paragraph (a),
clause (2), who remits withholding deposits must remit all deposits by electronic means as
provided in paragraph (e), regardless of the aggregate amount of tax withheld during a fiscal
year for all of the employers.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016.
new text end

Sec. 7.

Minnesota Statutes 2016, section 289A.31, subdivision 1, is amended to read:


Subdivision 1.

Individual income, fiduciary income, mining company, corporate
franchise, and entertainment taxes.

(a) Individual income, fiduciary income, mining
company, and corporate franchise taxes, and interest and penalties, must be paid by the
taxpayer upon whom the tax is imposed, except in the following cases:

(1) The tax due from a decedent for that part of the taxable year in which the decedent
died during which the decedent was alive and the taxes, interest, and penalty due for the
prior years must be paid by the decedent's personal representative, if any. If there is no
personal representative, the taxes, interest, and penalty must be paid by the transferees, as
defined in section 270C.58, subdivision 3, to the extent they receive property from the
decedent;

(2) The tax due from an infant or other incompetent person must be paid by the person's
guardian or other person authorized or permitted by law to act for the person;

(3) The tax due from the estate of a decedent must be paid by the estate's personal
representative;

(4) The tax due from a trust, including those within the definition of a corporation, as
defined in section 290.01, subdivision 4, must be paid by a trustee; and

(5) The tax due from a taxpayer whose business or property is in charge of a receiver,
trustee in bankruptcy, assignee, or other conservator, must be paid by the person in charge
of the business or property so far as the tax is due to the income from the business or property.

(b) Entertainment taxes are the joint and several liability of the entertainer and the
entertainment entity. The payor is liable to the state for the payment of the tax required to
be deducted and withheld under section 290.9201, subdivision 7, and is not liable to the
entertainer for the amount of the payment.

(c) The deleted text begin taxdeleted text end new text begin taxesnew text end imposed under deleted text begin sectiondeleted text end new text begin sections 289A.35 andnew text end 290.0922 on partnerships
deleted text begin isdeleted text end new text begin arenew text end the joint and several liability of the partnership and the general partners.

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Minnesota Statutes 2016, section 289A.35, is amended to read:


289A.35 ASSESSMENTS ON RETURNS.

(a) The commissioner may audit and adjust the taxpayer's computation of Previous federal Next taxable
income, items of Previous federal Next tax preferences, or Previous federal Next credit amounts to make them conform
with the provisions of chapter 290 or section 298.01. If a return has been filed, the
commissioner shall enter the liability reported on the return and may make any audit or
investigation that is considered necessary.

new text begin (b) Upon petition by a taxpayer, and when the commissioner determines that it is in the
best interest of the state, the commissioner may allow S corporations and partnerships to
receive orders of assessment issued under section 270C.33, subdivision 4, on behalf of their
owners, and to pay liabilities shown on such orders. In such cases, the owners' liability must
be calculated using the method provided in section 289A.08, subdivision 7, paragraph (b).
new text end

new text begin (c) A taxpayer may petition the commissioner for the use of the method described in
paragraph (b) after the taxpayer is notified that an audit has been initiated and before an
order of assessment has been issued.
new text end

new text begin (d) A determination of the commissioner under paragraph (b) to grant or deny the petition
of a taxpayer cannot be appealed to the Tax Court or any other court.
new text end

deleted text begin (b)deleted text end new text begin (e)new text end The commissioner may audit and adjust the taxpayer's computation of tax under
chapter 291. In the case of a return filed pursuant to section 289A.10, the commissioner
shall notify the estate no later than nine months after the filing date, as provided by section
289A.38, subdivision 2, whether the return is under examination or the return has been
processed as filed.

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2016, section 289A.60, subdivision 28, is amended to read:


Subd. 28.

Preparer identification number.

Any Minnesota deleted text begin individualdeleted text end income tax return
or claim for refund prepared by a "tax refund or return preparer" as defined in subdivision
13, paragraph (f), shall bear the identification number the preparer is required to use federally
under section 6109(a)(4) of the Internal Revenue Code. A tax refund or return preparer who
prepares a Minnesota deleted text begin individual income taxdeleted text end returnnew text begin required by section 289A.08, subdivisions
1, 2, 3, and 7; or 289A.12, subdivision 3,
new text end or claim for refund and fails to include the required
number on the return or claim is subject to a penalty of $50 for each failure.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016.
new text end

Sec. 10.

Minnesota Statutes 2016, section 290.0672, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have
the meanings given.

(b) "Long-term care insurance" means a policy that:

(1) qualifies for a deduction under section 213 of the Internal Revenue Code, disregarding
the deleted text begin 7.5 percentdeleted text end new text begin adjusted grossnew text end income test; or meets the requirements given in section 62A.46;
or provides similar coverage issued under the laws of another jurisdiction; and

(2) has a lifetime long-term care benefit limit of not less than $100,000; and

(3) has been offered in compliance with the inflation protection requirements of section
62S.23.

(c) "Qualified beneficiary" means the taxpayer or the taxpayer's spouse.

(d) "Premiums deducted in determining Previous federal Next taxable income" means the lesser of (1)
long-term care insurance premiums that qualify as deductions under section 213 of the
Internal Revenue Code; and (2) the total amount deductible for medical care under section
213 of the Internal Revenue Code.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2012.
new text end

Sec. 11.

Minnesota Statutes 2016, section 290.068, subdivision 2, is amended to read:


Subd. 2.

Definitions.

For purposes of this section, the following terms have the meanings
given.

(a) "Qualified research expenses" means (i) qualified research expenses and basic research
payments as defined in section 41(b) and (e) of the Internal Revenue Code, except it does
not include expenses incurred for qualified research or basic research conducted outside
the state of Minnesota pursuant to section 41(d) and (e) of the Internal Revenue Code; and
(ii) contributions to a nonprofit corporation established and operated pursuant to the
provisions of chapter 317A for the purpose of promoting the establishment and expansion
of business in this state, provided the contributions are invested by the nonprofit corporation
for the purpose of providing funds for small, technologically innovative enterprises in
Minnesota during the early stages of their development.

(b) "Qualified research" means qualified research as defined in section 41(d) of the
Internal Revenue Code, except that the term does not include qualified research conducted
outside the state of Minnesota.

(c) "Base amount" means base amount as defined in section 41(c) of the Internal Revenue
Code, except that the average annual gross receipts new text begin and aggregate gross receipts new text end must be
calculated using Minnesota sales or receipts under section 290.191 and the definitions
contained in deleted text begin clausesdeleted text end new text begin paragraphsnew text end (a) and (b) shall apply.

new text begin EFFECTIVE DATE. new text end

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

Sec. 12.

Minnesota Statutes 2016, section 290.17, subdivision 2, is amended to read:


Subd. 2.

Income not derived from conduct of a trade or business.

The income of a
taxpayer subject to the allocation rules that is not derived from the conduct of a trade or
business must be assigned in accordance with paragraphs (a) to (f):

(a)(1) Subject to paragraphs (a)(2) and (a)(3), income from wages as defined in section
3401(a) and (f) of the Internal Revenue Code is assigned to this state if, and to the extent
that, the work of the employee is performed within it; all other income from such sources
is treated as income from sources without this state.

Severance pay shall be considered income from labor or personal or professional services.

(2) In the case of an individual who is a nonresident of Minnesota and who is an athlete
or entertainer, income from compensation for labor or personal services performed within
this state shall be determined in the following manner:

(i) The amount of income to be assigned to Minnesota for an individual who is a
nonresident salaried athletic team employee shall be determined by using a fraction in which
the denominator contains the total number of days in which the individual is under a duty
to perform for the employer, and the numerator is the total number of those days spent in
Minnesota. For purposes of this paragraph, off-season training activities, unless conducted
at the team's facilities as part of a team imposed program, are not included in the total number
of duty days. Bonuses earned as a result of play during the regular season or for participation
in championship, play-off, or all-star games must be allocated under the formula. Signing
bonuses are not subject to allocation under the formula if they are not conditional on playing
any games for the team, are payable separately from any other compensation, and are
nonrefundable; and

(ii) The amount of income to be assigned to Minnesota for an individual who is a
nonresident, and who is an athlete or entertainer not listed in clause (i), for that person's
athletic or entertainment performance in Minnesota shall be determined by assigning to this
state all income from performances or athletic contests in this state.

(3) For purposes of this section, amounts received by a nonresident as "retirement income"
as defined in section (b)(1) of the State Income Taxation of Pension Income Act, Public
Law 104-95, are not considered income derived from carrying on a trade or business or
from wages or other compensation for work an employee performed in Minnesota, and are
not taxable under this chapter.

(b) Income or gains from tangible property located in this state that is not employed in
the business of the recipient of the income or gains must be assigned to this state.

(c) Income or gains from intangible personal property not employed in the business of
the recipient of the income or gains must be assigned to this state if the recipient of the
income or gains is a resident of this state or is a resident trust or estate.

Gain on the sale of a partnership interest is allocable to this state in the ratio of the
original cost of partnership tangible property in this state to the original cost of partnership
tangible property everywhere, determined at the time of the sale. If more than 50 percent
of the value of the partnership's assets consists of intangibles, gain or loss from the sale of
the partnership interest is allocated to this state in accordance with the sales factor of the
partnership for its first full tax period immediately preceding the tax period of the partnership
during which the partnership interest was sold.

Gain on the sale of an interest in a single member limited liability company that is
disregarded for Previous federal Next income tax purposes is allocable to this state as if the single member
limited liability company did not exist and the assets of the limited liability company are
personally owned by the sole member.

Gain on the sale of goodwill or income from a covenant not to compete that is connected
with a business operating all or partially in Minnesota is allocated to this state to the extent
that the income from the business in the year preceding the year of sale was deleted text begin assignabledeleted text end new text begin
allocable
new text end to Minnesota under subdivision 3.

When an employer pays an employee for a covenant not to compete, the income allocated
to this state is in the ratio of the employee's service in Minnesota in the calendar year
preceding leaving the employment of the employer over the total services performed by the
employee for the employer in that year.

(d) Income from winnings on a bet made by an individual while in Minnesota is assigned
to this state. In this paragraph, "bet" has the meaning given in section 609.75, subdivision
2
, as limited by section 609.75, subdivision 3, clauses (1), (2), and (3).

(e) All items of gross income not covered in paragraphs (a) to (d) and not part of the
taxpayer's income from a trade or business shall be assigned to the taxpayer's domicile.

(f) For the purposes of this section, working as an employee shall not be considered to
be conducting a trade or business.

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

Minnesota Statutes 2016, section 290.31, subdivision 1, is amended to read:


Subdivision 1.

Partners, not partnership, subject to tax.

new text begin Except as provided under
section 289A.35, paragraph (b),
new text end a partnership as such shall not be subject to the income tax
imposed by this chapter, but is subject to the tax imposed under section 290.0922. Persons
carrying on business as partners shall be liable for income tax only in their separate or
individual capacities.

new text begin EFFECTIVE DATE. new text end

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

Sec. 14.

Minnesota Statutes 2016, section 290A.19, is amended to read:


290A.19 OWNER OR MANAGING AGENT TO FURNISH RENT CERTIFICATE.

new text begin (a) new text end The owner or managing agent of any property for which rent is paid for occupancy
as a homestead must furnish a certificate of rent paid to a person who is a renter on December
31, in the form prescribed by the commissioner. If the renter moves before December 31,
the owner or managing agent may give the certificate to the renter at the time of moving,
or mail the certificate to the forwarding address if an address has been provided by the
renter. The certificate must be made available to the renter before February 1 of the year
following the year in which the rent was paid. The owner or managing agent must retain a
duplicate of each certificate or an equivalent record showing the same information for a
period of three years. The duplicate or other record must be made available to the
commissioner upon request.

new text begin (b) The commissioner may require the owner or managing agent, through a simple
process, to furnish to the commissioner on or before March 1 a copy of each certificate of
rent paid furnished to a renter for rent paid in the prior year, in the content, format, and
manner prescribed by the commissioner pursuant to section 270C.30. Prior to implementation,
the commissioner, after consulting with representatives of owners or managing agents, shall
develop an implementation and administration plan for the requirements of this paragraph
that attempts to minimize financial burdens, administration and compliance costs, and takes
into consideration existing systems of owners and managing agents.
new text end

new text begin (c)new text end For the purposes of this section, "owner" includes a park owner as defined under
section 327C.01, subdivision 6, and "property" includes a lot as defined under section
327C.01, subdivision 3.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for certificates of rent paid furnished to
a renter for rent paid after December 31, 2016.
new text end

Sec. 15.

Minnesota Statutes 2016, section 291.016, subdivision 2, is amended to read:


Subd. 2.

Additions.

The following amounts, to the extent deducted in computingnew text begin or
otherwise excluded from
new text end the Previous federal Next taxable estate, must be added in computing the
Minnesota taxable estate:

(1) the amount of the deduction for state death taxes allowed under section 2058 of the
Internal Revenue Code;

(2) the amount of the deduction for foreign death taxes allowed under section 2053(d)
of the Internal Revenue Code; and

(3) the aggregate amount of taxable gifts as defined in section 2503 of the Internal
Revenue Code, made by the decedent within three years of the date of death. For purposes
of this clause, the amount of the addition equals the value of the gift under section 2512 of
the Internal Revenue Code and excludes any value of the gift included in the Previous federal Next estate.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for estates of decedents
dying after June 30, 2013.
new text end

Sec. 16.

Minnesota Statutes 2016, section 291.016, subdivision 3, is amended to read:


Subd. 3.

Subtraction.

new text begin The following amounts, to the extent included in computing the
Previous federal Next taxable estate, may be subtracted in computing the Minnesota taxable estate but
must not reduce the Minnesota taxable estate to less than zero:
new text end

new text begin (1) the value of property subject to an election under section 291.03, subdivision 1d;
and
new text end

new text begin (2) new text end the value of qualified small business property under section 291.03, subdivision 9,
and the value of qualified farm property under section 291.03, subdivision 10, or the result
of $5,000,000 minus the amount for the year of death listed in deleted text begin clauses (1) to (5) deleted text end new text begin items (i)
to (v)
new text end , whichever is lessdeleted text begin , may be subtracted in computing the Minnesota taxable estate but
must not reduce the Minnesota taxable estate to less than zero
deleted text end :

deleted text begin (1)deleted text end new text begin (i)new text end $1,200,000 for estates of decedents dying in 2014;

deleted text begin (2)deleted text end new text begin (ii)new text end $1,400,000 for estates of decedents dying in 2015;

deleted text begin (3)deleted text end new text begin (iii)new text end $1,600,000 for estates of decedents dying in 2016;

deleted text begin (4)deleted text end new text begin (iv)new text end $1,800,000 for estates of decedents dying in 2017; and

deleted text begin (5)deleted text end new text begin (v)new text end $2,000,000 for estates of decedents dying in 2018 and thereafter.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for estates of decedents
dying after June 30, 2011.
new text end

Sec. 17.

Minnesota Statutes 2016, section 291.03, subdivision 9, is amended to read:


Subd. 9.

Qualified small business property.

Property satisfying all of the following
requirements is qualified small business property:

(1) The value of the property was included in the Previous federal Next adjusted taxable estate.

(2) The property consists of the assets of a trade or business or shares of stock or other
ownership interests in a corporation or other entity engaged in a trade or business. Shares
of stock in a corporation or an ownership interest in another type of entity do not qualify
under this subdivision if the shares or ownership interests are traded on a public stock
exchange at any time during the three-year period ending on the decedent's date of death.
For purposes of this subdivision, an ownership interest includes the interest the decedent is
deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code.

(3) During the taxable year that ended before the decedent's death, the trade or business
must not have been a passive activity within the meaning of section 469(c) of the Internal
Revenue Code, and the decedent or the decedent's spouse must have materially participated
in the trade or business within the meaning of section 469(h) of the Internal Revenue Code,
excluding section 469(h)(3) of the Internal Revenue Code and any other provision provided
by United States Treasury Department regulation that substitutes material participation in
prior taxable years for material participation in the taxable year that ended before the
decedent's death.

(4) The gross annual sales of the trade or business were $10,000,000 or less for the last
taxable year that ended before the date of the death of the decedent.

(5) The property does not deleted text begin consist ofdeleted text end new text begin include:
new text end

new text begin (i)new text end cashdeleted text begin ,deleted text end new text begin ;
new text end

new text begin (ii)new text end cash equivalentsdeleted text begin ,deleted text end new text begin ;
new text end

new text begin (iii)new text end publicly traded securitiesdeleted text begin ,deleted text end new text begin ;new text end or

new text begin (iv) anynew text end assets not used in the operation of the trade or business.

new text begin (6)new text end For property consisting of shares of stock or other ownership interests in an entity,
the value of deleted text begin cash, cash equivalents, publicly traded securities, or assets not used in the
operation of the trade or business held by the corporation or other entity
deleted text end new text begin items described in
clause (5)
new text end must be deleted text begin deducted from the value of the property qualifying under this subdivision
in proportion to the decedent's share of ownership of the entity on the date of death
deleted text end new text begin excluded
in the valuation of the decedent's interest in the entity
new text end .

deleted text begin (6)deleted text end new text begin (7)new text end The decedent continuously owned the property, including property the decedent
is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code, for
the three-year period ending on the date of death of the decedent. In the case of a sole
proprietor, if the property replaced similar property within the three-year period, the
replacement property will be treated as having been owned for the three-year period ending
on the date of death of the decedent.

deleted text begin (7)deleted text end new text begin (8)new text end For three years following the date of death of the decedent, the trade or business
is not a passive activity within the meaning of section 469(c) of the Internal Revenue Code,
and a family member materially participates in the operation of the trade or business within
the meaning of section 469(h) of the Internal Revenue Code, excluding section 469(h)(3)
of the Internal Revenue Code and any other provision provided by United States Treasury
Department regulation that substitutes material participation in prior taxable years for
material participation in the three years following the date of death of the decedent.

deleted text begin (8)deleted text end new text begin (9)new text end The estate and the qualified heir elect to treat the property as qualified small
business property and agree, in the form prescribed by the commissioner, to pay the recapture
tax under subdivision 11, if applicable.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for estates of decedents
dying after June 30, 2011.
new text end

Sec. 18.

Minnesota Statutes 2016, section 291.03, subdivision 11, is amended to read:


Subd. 11.

Recapture tax.

(a) If, within three years after the decedent's death and before
the death of the qualified heir, the qualified heir disposes of any interest in the qualified
property, other than by a disposition to a family member, or a family member ceases to
satisfy the requirement under subdivision 9, clause (7); or 10, clause (5), an additional estate
tax is imposed on the property. In the case of a sole proprietor, if the qualified heir replaces
qualified small business property excluded under subdivision 9 with similar property, then
the qualified heir will not be treated as having disposed of an interest in the qualified property.

(b) The amount of the additional tax equals the amount of the exclusion claimed by the
estate under subdivision 8, paragraph (d), multiplied by 16 percent.

(c) The additional tax under this subdivision is due on the day which is six months after
the date of the disposition or cessation in paragraph (a).

new text begin (d) This subdivision shall not apply as a result of any of the following:
new text end

new text begin (1) a portion of qualified farm property consisting of less than one-fifth of the acreage
of the property is reclassified as class 2b property under section 273.13, subdivision 23, and
the qualified heir has not substantially altered the reclassified property during the three-year
holding period; or
new text end

new text begin (2) a portion of qualified farm property classified as 2a property at the death of the
decedent pursuant to section 273.13, subdivision 23, paragraph (a), consisting of a residence,
garage, and immediately surrounding one acre of land is reclassified as 4bb property during
the three-year holding period, and the qualified heir has not substantially altered the property.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for estates of decedents
dying after June 30, 2011.
new text end

Sec. 19. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Rules, part 8092.1400, new text end new text begin is repealed.
new text end

new text begin (b) new text end new text begin Minnesota Rules, part 8092.2000, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) is effective for taxable years beginning after
December 31, 2016, except that notifications from the Department of Revenue to employers
regarding eligibility to file an annual return for taxes withheld in calendar year 2017 remain
in force. Paragraph (b) is effective the day following final enactment.
new text end

ARTICLE 17

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

Section 1.

Minnesota Statutes 2016, section 69.021, subdivision 5, is amended to read:


Subd. 5.

Calculation of state aid.

(a) The amount of fire state aid available for
apportionment, before the addition of the minimum fire state aid allocation amount under
subdivision 7, is equal to 107 percent of the amount of premium taxes paid to the state upon
the fire, lightning, sprinkler leakage, and extended coverage premiums reported to the
commissioner by insurers on the Minnesota Firetown Premium Report. This amount must
be reduced by the amount required to pay the state auditor's costs and expenses of the audits
or exams of the firefighters relief associations.

The total amount for apportionment in respect to fire state aid must not be less than two
percent of the premiums reported to the commissioner by insurers on the Minnesota Firetown
Premium Report after subtracting the following amounts:

(1) the amount required to pay the state auditor's costs and expenses of the audits or
exams of the firefighters relief associations; and

(2) one percent of the premiums reported by deleted text begin town and farmers'deleted text end new text begin townshipnew text end mutual insurance
companies and mutual property and casualty companies with total assets of $5,000,000 or
less.

(b) The total amount for apportionment as police state aid is equal to 104 percent of the
amount of premium taxes paid to the state on the premiums reported to the commissioner
by insurers on the Minnesota Aid to Police Premium Report. The total amount for
apportionment in respect to the police state aid program must not be less than two percent
of the amount of premiums reported to the commissioner by insurers on the Minnesota Aid
to Police Premium Report.

(c) The commissioner shall calculate the percentage of increase or decrease reflected in
the apportionment over or under the previous year's available state aid using the same
premiums as a basis for comparison.

(d) In addition to the amount for apportionment of police state aid under paragraph (b),
each year $100,000 must be apportioned for police state aid. An amount sufficient to pay
this increase is annually appropriated from the general fund.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2016, section 289A.38, subdivision 6, is amended to read:


Subd. 6.

Omission in excess of 25 percent.

Additional taxes may be assessed within
6-1/2 years after the due date of the return or the date the return was filed, whichever is
later, if:

(1) the taxpayer omits from gross income an amount properly includable in it that is in
excess of 25 percent of the amount of gross income stated in the return;

(2) the taxpayer omits from a sales, use, or withholding tax returnnew text begin , or a return for a tax
imposed under section 295.52,
new text end an amount of taxes in excess of 25 percent of the taxes
reported in the return; or

(3) the taxpayer omits from the gross estate assets in excess of 25 percent of the gross
estate reported in the return.

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2016, section 290.0922, subdivision 2, is amended to read:


Subd. 2.

Exemptions.

The following entities are exempt from the tax imposed by this
section:

(1) corporations exempt from tax under section 290.05;

(2) real estate investment trusts;

(3) regulated investment companies or a fund thereof; and

(4) entities having a valid election in effect under section 860D(b) of the Internal Revenue
Code;

(5) deleted text begin town and farmers'deleted text end new text begin townshipnew text end mutual insurance companies;

(6) cooperatives organized under chapter 308A or 308B that provide housing exclusively
to persons age 55 and over and are classified as homesteads under section 273.124,
subdivision 3
; and

(7) a qualified business as defined under section 469.310, subdivision 11, if for the
taxable year all of its property is located in a job opportunity building zone designated under
section 469.314 and all of its payroll is a job opportunity building zone payroll under section
469.310.

Entities not specifically exempted by this subdivision are subject to tax under this section,
notwithstanding section 290.05.

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2016, section 295.54, subdivision 2, is amended to read:


Subd. 2.

Pharmacy refund.

A pharmacy may claim an annual refund against the total
amount of tax, if any, the pharmacy owes during that calendar year under section 295.52,
subdivision
4. The refund shall equal the amount paid by the pharmacy to a wholesale drug
distributor subject to tax under section 295.52, subdivision 3, for legend drugs delivered by
the pharmacy outside of Minnesota, multiplied by the tax percentage specified in section
295.52, subdivision 3. If the amount of the refund exceeds the tax liability of the pharmacy
under section 295.52, subdivision 4, the commissioner shall provide the pharmacy with a
refund equal to the excess amount. Each qualifying pharmacy must apply for the refund on
the annual return as deleted text begin provided under section 295.55, subdivision 5deleted text end new text begin prescribed by the
commissioner, on or before March 15 of the year following the calendar year the legend
drugs were delivered outside Minnesota
new text end . The refund deleted text begin must be claimed within 18 months
from the date the drugs were delivered outside of Minnesota
deleted text end new text begin shall not be allowed if the
initial claim for refund is filed more than one year after the original due date of the return
new text end .
Interest on refunds paid under this subdivision will begin to accrue 60 days after the date a
claim for refund is filed. For purposes of this subdivision, the date a claim is filed is the due
date of the return if a return is due or the date of the actual claim for refund, whichever is
later.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for qualifying legend drugs delivered
outside Minnesota after December 31, 2017.
new text end

Sec. 5.

Minnesota Statutes 2016, section 296A.01, is amended by adding a subdivision to
read:


new text begin Subd. 9a. new text end

new text begin Bulk storage or bulk storage facility. new text end

new text begin "Bulk storage" or "bulk storage facility"
means a single property, or contiguous or adjacent properties used for a common purpose
and owned or operated by the same person, on or in which are located one or more stationary
tanks that are used singularly or in combination for the storage or containment of more than
1,100 gallons of petroleum.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2016, section 296A.01, subdivision 33, is amended to read:


Subd. 33.

Motor fuel.

"Motor fuel" means a liquidnew text begin or gaseous form of fuelnew text end , regardless
of its composition or properties, used to propel a motor vehicle.

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

Minnesota Statutes 2016, section 296A.01, subdivision 42, is amended to read:


Subd. 42.

Petroleum products.

"Petroleum products" means all of the products defined
in subdivisions 2, 7, 8, 8a,new text begin 8b,new text end 10, 14, 16, 19, 20, 22 to 26, 28, 32, and 35.

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Minnesota Statutes 2016, section 296A.07, subdivision 1, is amended to read:


Subdivision 1.

Tax imposed.

There is imposed an excise tax on gasoline, gasoline
blended with ethanol, and agricultural alcohol gasoline used in producing and generating
power for propelling motor vehicles used on the public highways of this state. The tax is
imposed on the first licensed distributor who received the product in Minnesota. For purposes
of this section, gasoline is defined in section 296A.01, subdivisions new text begin 8b, new text end 10, 18, 20, 23, 24,
25, 32, and 34
. The tax is payable at the time and in the form and manner prescribed by the
commissioner. The tax is payable at the rates specified in subdivision 3, subject to the
exceptions and reductions specified in section 296A.17.

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2016, section 297A.82, subdivision 4, is amended to read:


Subd. 4.

Exemptions.

(a) The following transactions are exempt from the tax imposed
in this chapter to the extent provided.

(b) The purchase or use of aircraft previously registered in Minnesota by a corporation
or partnership is exempt if the transfer constitutes a transfer within the meaning of section
351 or 721 of the Internal Revenue Code.

(c) The sale to or purchase, storage, use, or consumption by a licensed aircraft dealer of
an aircraft for which a commercial use permit has been issued pursuant to section 360.654
is exempt, if the aircraft is resold while the permit is in effect.

(d) Air flight equipment when sold to, or purchased, stored, used, or consumed by airline
companies, as defined in section 270.071, subdivision 4, is exempt. For purposes of this
subdivision, "air flight equipment" includes airplanes and parts necessary for the repair and
maintenance of such air flight equipment, and flight simulators, but does not include deleted text begin airplanesdeleted text end new text begin
aircraft
new text end with a deleted text begin grossdeleted text end new text begin maximum takeoffnew text end weight of less than 30,000 pounds deleted text begin that are used on
intermittent or irregularly timed flights
deleted text end .

(e) Sales of, and the storage, distribution, use, or consumption of aircraft, as defined in
section 360.511 and approved by the Previous Federal Next Aviation Administration, and which the seller
delivers to a purchaser outside Minnesota or which, without intermediate use, is shipped or
transported outside Minnesota by the purchaser are exempt, but only if the purchaser is not
a resident of Minnesota and provided that the aircraft is not thereafter returned to a point
within Minnesota, except in the course of interstate commerce or isolated and occasional
use, and will be registered in another state or country upon its removal from Minnesota.
This exemption applies even if the purchaser takes possession of the aircraft in Minnesota
and uses the aircraft in the state exclusively for training purposes for a period not to exceed
ten days prior to removing the aircraft from this state.

(f) The sale or purchase of the following items that relate to aircraft operated under
Previous Federal Next Aviation Regulations, Parts 91 and 135, and associated installation charges:
equipment and parts necessary for repair and maintenance of aircraft; and equipment and
parts to upgrade and improve aircraft.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
December 31, 2017.
new text end

Sec. 10.

Minnesota Statutes 2016, section 297A.82, subdivision 4a, is amended to read:


Subd. 4a.

Deposit in state airports fund.

Tax revenuenew text begin , including interest and penalties,new text end
collected from the sale or purchase of an aircraft taxable under this chapter must be deposited
in the state airports fund established in section 360.017.new text begin For purposes of this subdivision,
"revenue" does not include the revenue, including interest and penalties, generated by the
sales tax imposed under section 297A.62, subdivision 1a, which must be deposited as
provided under article XI, section 15, of the Minnesota Constitution.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 11.

Minnesota Statutes 2016, section 297E.02, subdivision 7, is amended to read:


Subd. 7.

Untaxed gambling product.

(a) In addition to penalties or criminal sanctions
imposed by this chapter, a person, organization, or business entity possessing or selling a
pull-tab, electronic pull-tab game, raffle board, or tipboard upon which the tax imposed by
this chapter has not been paid is liable for a tax of six percent of the ideal gross of each
pull-tab, electronic pull-tab game, raffle board, or tipboard. The tax on a partial deal must
be assessed as if it were a full deal.

(b) In addition to penalties and criminal sanctions imposed by this chapter, a personnew text begin (1)new text end
not licensed by the board who conducts bingo, linked bingo, electronic linked bingo, raffles,
or paddlewheel gamesnew text begin , or (2) who conducts gambling prohibited under sections 609.75 to
609.763, other than activities subject to tax under section 297E.03,
new text end is liable for a tax of six
percent of the gross receipts from that activity.

(c) The tax deleted text begin mustdeleted text end new text begin maynew text end be assessed by the commissioner. An assessment must be considered
a jeopardy assessment or jeopardy collection as provided in section 270C.36. The
commissioner shall assess the tax based on personal knowledge or information available to
the commissioner. The commissioner shall mail to the taxpayer at the taxpayer's last known
address, or serve in person, a written notice of the amount of tax, demand its immediate
payment, and, if payment is not immediately made, collect the tax by any method described
in chapter 270C, except that the commissioner need not await the expiration of the times
specified in chapter 270C. The tax assessed by the commissioner is presumed to be valid
and correctly determined and assessed. The burden is upon the taxpayer to show its
incorrectness or invalidity. The tax imposed under this subdivision does not apply to gambling
that is exempt from taxation under subdivision 2.

new text begin (d) A person, organization, or business entity conducting gambling activity under this
subdivision must file monthly tax returns with the commissioner, in the form required by
the commissioner. The returns must be filed on or before the 20th day of the month following
the month in which the gambling activity occurred. The tax imposed by this section is due
and payable at the time when the returns are required to be filed.
new text end

new text begin (e) Notwithstanding any law to the contrary, neither the commissioner nor a public
employee may reveal facts contained in a tax return filed with the commissioner of revenue
as required by this subdivision, nor can any information contained in the report or return
be used against the tax obligor in any criminal proceeding, unless independently obtained,
except in connection with a proceeding involving taxes due under this section, or as provided
in section 270C.055, subdivision 1. However, this paragraph does not prohibit the
commissioner from publishing statistics that do not disclose the identity of tax obligors or
the contents of particular returns or reports. Any person violating this paragraph is guilty
of a gross misdemeanor.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for games played or purchased after June
30, 2017.
new text end

Sec. 12.

Minnesota Statutes 2016, section 297H.06, subdivision 2, is amended to read:


Subd. 2.

Materials.

The tax is not imposed upon charges to generators of mixed municipal
solid waste or upon the volume of nonmixed municipal solid waste for waste management
services to manage the following materials:

(1) mixed municipal solid waste and nonmixed municipal solid waste generated outside
of Minnesota;

(2) recyclable materials that are separated for recycling by the generator, collected
separately from other waste, and recycled, to the extent the price of the service for handling
recyclable material is separately itemizednew text begin on a bill to the generatornew text end ;

(3) recyclable nonmixed municipal solid waste that is separated for recycling by the
generator, collected separately from other waste, delivered to a waste facility for the purpose
of recycling, and recycled;

(4) industrial waste, when it is transported to a facility owned and operated by the same
person that generated it;

(5) mixed municipal solid waste from a recycling facility that separates or processes
recyclable materials and reduces the volume of the waste by at least 85 percent, provided
that the exempted waste is managed separately from other waste;

(6) recyclable materials that are separated from mixed municipal solid waste by the
generator, collected and delivered to a waste facility that recycles at least 85 percent of its
waste, and are collected with mixed municipal solid waste that is segregated in leakproof
bags, provided that the mixed municipal solid waste does not exceed five percent of the
total weight of the materials delivered to the facility and is ultimately delivered to a waste
facility identified as a preferred waste management facility in county solid waste plans
under section 115A.46;

(7) source-separated compostable deleted text begin wastedeleted text end new text begin materialsnew text end , if the deleted text begin waste isdeleted text end new text begin materials are new text end delivered
to a facility exempted as described in this clause. To initially qualify for an exemption, a
facility must apply for an exemption in its application for a new or amended solid waste
permit to the Pollution Control Agency. The first time a facility applies to the agency it
must certify in its application that it will comply with the criteria in items (i) to (v) and the
commissioner of the agency shall so certify to the commissioner of revenue who must grant
the exemption. The facility must annually apply to the agency for certification to renew its
exemption for the following year. The application must be filed according to the procedures
of, and contain the information required by, the agency. The commissioner of revenue shall
grant the exemption if the commissioner of the Pollution Control Agency finds and certifies
to the commissioner of revenue that based on an evaluation of the composition of incoming
waste and residuals and the quality and use of the product:

(i) generators separate materials at the source;

(ii) the separation is performed in a manner appropriate to the technology specific to the
facility that:

(A) maximizes the quality of the product;

(B) minimizes the toxicity and quantity of deleted text begin residualsdeleted text end new text begin rejectsnew text end ; and

(C) provides an opportunity for significant improvement in the environmental efficiency
of the operation;

(iii) the operator of the facility educates generators, in coordination with each county
using the facility, about separating the waste to maximize the quality of the waste stream
for technology specific to the facility;

(iv) process deleted text begin residualsdeleted text end new text begin rejectsnew text end do not exceed 15 percent of the weight of the total material
delivered to the facility; and

(v) the final product is accepted for use;

(8) waste and waste by-products for which the tax has been paid; and

(9) daily cover for landfills that has been approved in writing by the Minnesota Pollution
Control Agency.

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

Minnesota Statutes 2016, section 297I.05, subdivision 2, is amended to read:


Subd. 2.

deleted text begin Town and farmers'deleted text end new text begin Townshipnew text end mutual insurance.

A tax is imposed on deleted text begin town
and farmers'
deleted text end new text begin townshipnew text end mutual insurance companies. The rate of tax is equal to one percent
of gross premiums less return premiums on all direct business received by the insurer or
agents of the insurer in Minnesota, in cash or otherwise, during the year.

new text begin EFFECTIVE DATE. new text end

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

Sec. 14.

Minnesota Statutes 2016, section 297I.10, subdivision 1, is amended to read:


Subdivision 1.

Cities of the first class.

(a) The commissioner shall order and direct a
surcharge to be collected of two percent of the fire, lightning, and sprinkler leakage gross
premiums, less return premiums, on all direct business received by any licensed foreign or
domestic fire insurance company on property in a city of the first class, or by its agents for
it, in cash or otherwise.

(b) By July 31 and December 31 of each year, the commissioner deleted text begin of management and
budget
deleted text end shall pay to each city of the first class a warrant for an amount equal to the total
amount of the surcharge on the premiums collected within that city since the previous
payment.

(c) The treasurer of the city shall place the money received under this subdivision in a
special account or fund to defray all or a portion of the employer contribution requirement
of public employees police and fire plan coverage for city firefighters.

new text begin EFFECTIVE DATE. new text end

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

Sec. 15.

Minnesota Statutes 2016, section 297I.10, subdivision 3, is amended to read:


Subd. 3.

Appropriation.

The amount necessary to make the payments required under
this section is appropriated to the commissioner deleted text begin of management and budgetdeleted text end from the general
fund.

new text begin EFFECTIVE DATE. new text end

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

Sec. 16.

Minnesota Statutes 2016, section 298.01, subdivision 4c, is amended to read:


Subd. 4c.

Special deductions; net operating loss.

deleted text begin (a)deleted text end For purposes of determining
taxable income under subdivision 4, the provisions of sections 290.0133, subdivisions 7
and 9, and 290.0134, subdivisions 7 and 9, are not used to determine taxable income.

deleted text begin (b) The amount of net operating loss incurred in a taxable year beginning before January
1, 1990, that may be carried over to a taxable year beginning after December 31, 1989, is
the amount of net operating loss carryover determined in the calculation of the hypothetical
corporate franchise tax under Minnesota Statutes 1988, sections 298.40 and 298.402.
deleted text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 18

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

Section 1.

Minnesota Statutes 2016, section 13.51, subdivision 2, is amended to read:


Subd. 2.

Income property assessment data.

The following data collected by political
subdivisions new text begin and the state new text end from individuals or business entities concerning income properties
are classified as private or nonpublic data pursuant to section 13.02, subdivisions 9 and 12:

(a) detailed income and expense figures;

(b) average vacancy factors;

(c) verified net rentable areas or net usable areas, whichever is appropriate;

(d) anticipated income and expenses;

(e) projected vacancy factors; and

(f) lease information.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2016, section 270.071, subdivision 2, is amended to read:


Subd. 2.

Air commerce.

deleted text begin (a)deleted text end "Air commerce" means the transportation by aircraft of
persons or property for hire in interstate, intrastate, or international transportation on regularly
scheduled flights or on intermittent or irregularly timed flights by airline companiesnew text begin and
includes transportation by any airline company making three or more flights in or out of
Minnesota, or within Minnesota, during a calendar year
new text end .

deleted text begin (b) "Air commerce" includes but is not limited to an intermittent or irregularly timed
flight, a flight arranged at the convenience of an airline and the person contracting for the
transportation, or a charter flight. It includes any airline company making three or more
flights in or out of Minnesota during a calendar year.
deleted text end

deleted text begin (c) "Air commerce" does not include casual transportation for hire by aircraft commonly
owned and used for private air flight purposes if the person furnishing the transportation
does not hold out to be engaged regularly in transportation for hire.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2018 and thereafter.
new text end

Sec. 3.

Minnesota Statutes 2016, section 270.071, subdivision 7, is amended to read:


Subd. 7.

Flight property.

"Flight property" means all aircraft and flight equipment used
in connection therewith, including spare flight equipment. Flight property also includes
computers and computer software used in operating, controlling, or regulating aircraft and
flight equipment.new text begin Flight property does not include aircraft with a maximum takeoff weight
of less than 30,000 pounds.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2018 and thereafter.
new text end

Sec. 4.

Minnesota Statutes 2016, section 270.071, subdivision 8, is amended to read:


Subd. 8.

Person.

"Person" means deleted text begin anydeleted text end new text begin annew text end individual, deleted text begin corporation, firm, copartnership,
company, or association, and includes any guardian, trustee, executor, administrator, receiver,
conservator, or any person acting in any fiduciary capacity therefor
deleted text end new text begin trust, estate, fiduciary,
partnership, company, corporation, limited liability company, association, governmental
unit or agency, public or private organization of any kind, or other legal entity
new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2018 and thereafter.
new text end

Sec. 5.

Minnesota Statutes 2016, section 270.071, is amended by adding a subdivision to
read:


new text begin Subd. 10. new text end

new text begin Intermittent or irregularly timed flights. new text end

new text begin "Intermittently or irregularly timed
flights" means any flight in which the departure time, departure location, and arrival location
are specifically negotiated with the customer or the customer's representative, including but
not limited to charter flights.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2018 and thereafter.
new text end

Sec. 6.

Minnesota Statutes 2016, section 270.072, subdivision 2, is amended to read:


Subd. 2.

Assessment of flight property.

Flight property that is owned by, or is leased,
loaned, or otherwise made available to an airline company operating in Minnesota shall be
assessed and appraised annually by the commissioner with reference to its value on January
2 of the assessment year in the manner prescribed by sections 270.071 to 270.079. deleted text begin Aircraft
with a gross weight of less than 30,000 pounds and used on intermittent or irregularly timed
flights shall be excluded from the provisions of sections 270.071 to 270.079.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2018 and thereafter.
new text end

Sec. 7.

Minnesota Statutes 2016, section 270.072, subdivision 3, is amended to read:


Subd. 3.

Report by airline company.

new text begin (a) new text end Each year, on or before July 1, every airline
company engaged in air commerce in this state shall file with the commissioner a report
under oath setting forth specifically the information prescribed by the commissioner to
enable the commissioner to make the assessment required in sections 270.071 to 270.079,
unless the commissioner determines that the airline company deleted text begin or person should be excluded
from
deleted text end new text begin is exempt fromnew text end filing deleted text begin because its activities do not constitute air commerce as defined
herein
deleted text end .

new text begin (b) The commissioner shall prescribe the content, format, and manner of the report
pursuant to section 270C.30, except that a "law administered by the commissioner" includes
the property tax laws. If a report is made by electronic means, the taxpayer's signature is
defined pursuant to section 270C.304, except that a "law administered by the commissioner"
includes the property tax laws.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin The amendment to paragraph (a) is effective for reports filed in
2018 and thereafter. The amendment adding paragraph (b) is effective the day following
final enactment.
new text end

Sec. 8.

Minnesota Statutes 2016, section 270.072, is amended by adding a subdivision to
read:


new text begin Subd. 3a. new text end

new text begin Commissioner filed reports. new text end

new text begin If an airline company fails to file a report required
by subdivision 3, the commissioner may, from information in the commissioner's possession
or obtainable by the commissioner, make and file a report for the airline company, or may
issue a notice of net tax capacity and tax under section 270.075, subdivision 2.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2018 and thereafter.
new text end

Sec. 9.

Minnesota Statutes 2016, section 270.12, is amended by adding a subdivision to
read:


new text begin Subd. 6. new text end

new text begin Reassessment orders. new text end

new text begin If the State Board of Equalization determines that a
considerable amount of property has been undervalued or overvalued compared to like
property such that the assessment is grossly unfair or inequitable, the State Board of
Equalization may, pursuant to its responsibilities under subdivisions 2 and 3, issue orders
to the county assessor to reassess all parcels or an identified set of parcels in a county.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2018 and thereafter.
new text end

Sec. 10.

Minnesota Statutes 2016, section 270C.89, subdivision 1, is amended to read:


Subdivision 1.

Initial report.

Each county assessor shall file by April 1 with the
commissioner a copy of the abstract that will be acted upon by the local and county boards
of review. The abstract must list the real and personal property in the county itemized by
assessment districts. The assessor of each county in the state shall file with the commissioner,
within ten working days following final action of the local board of review or equalization
and within five days following final action of the county board of equalization, any changes
made by the local or county board. The information must be filed in the manner prescribed
by the commissioner. deleted text begin It must be accompanied by a printed or typewritten copy of the
proceedings of the appropriate board.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for local and county boards of appeal
and equalization meetings held in 2017 and thereafter.
new text end

Sec. 11.

Minnesota Statutes 2016, section 272.02, subdivision 9, is amended to read:


Subd. 9.

Personal property; exceptions.

Except for the taxable personal property
enumerated below, all personal property and the property described in section 272.03,
subdivision 1
, paragraphs (c) and (d), shall be exempt.

The following personal property shall be taxable:

(a) personal property which is part of new text begin (1) new text end an electric generating, transmission, or
distribution system deleted text begin ordeleted text end new text begin ; (2)new text end a pipeline system transporting or distributing deleted text begin water, gas, crude
oil, or petroleum
deleted text end productsnew text begin ;new text end or new text begin (3) new text end mains and pipes used in the distribution of steam or hot
or chilled water for heating or cooling buildings and structures;

(b) railroad docks and wharves which are part of the operating property of a railroad
company as defined in section 270.80;

(c) personal property defined in section 272.03, subdivision 2, clause (3);

(d) leasehold or other personal property interests which are taxed pursuant to section
272.01, subdivision 2; 273.124, subdivision 7; or 273.19, subdivision 1; or any other law
providing the property is taxable as if the lessee or user were the fee owner;

(e) manufactured homes and sectional structures, including storage sheds, decks, and
similar removable improvements constructed on the site of a manufactured home, sectional
structure, park trailer or travel trailer as provided in section 273.125, subdivision 8, paragraph
(f); and

(f) flight property as defined in section 270.071.

new text begin EFFECTIVE DATE. new text end

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

Sec. 12.

Minnesota Statutes 2016, section 272.029, subdivision 2, is amended to read:


Subd. 2.

Definitions.

(a) For the purposes of this sectiondeleted text begin , the termdeleted text end :

(1) "wind energy conversion system" has the meaning given in section 216C.06,
subdivision 19, and also includes a substation that is used and owned by one or more wind
energy conversion facilities;

(2) "large scale wind energy conversion system" means a wind energy conversion system
of more than 12 megawatts, as measured by the nameplate capacity of the system or as
combined with other systems as provided in paragraph (b);

(3) "medium scale wind energy conversion system" means a wind energy conversion
system of over two and not more than 12 megawatts, as measured by the nameplate capacity
of the system or as combined with other systems as provided in paragraph (b); and

(4) "small scale wind energy conversion system" means a wind energy conversion system
of two megawatts and under, as measured by the nameplate capacity of the system or as
combined with other systems as provided in paragraph (b).

(b) For systems installed and contracted for after January 1, 2002, the total size of a
wind energy conversion system under this subdivision shall be determined according to this
paragraph. Unless the systems are interconnected with different distribution systems, the
nameplate capacity of one wind energy conversion system shall be combined with the
nameplate capacity of any other wind energy conversion system that is:

(1) located within five miles of the wind energy conversion system;

(2) constructed within the same deleted text begin calendar yeardeleted text end new text begin 12-month periodnew text end as the wind energy
conversion system; and

(3) under common ownership.

In the case of a dispute, the commissioner of commerce shall determine the total size of
the system, and shall draw all reasonable inferences in favor of combining the systems.

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for reports filed in 2018 and thereafter.
new text end

Sec. 13.

Minnesota Statutes 2016, section 272.029, is amended by adding a subdivision
to read:


new text begin Subd. 8. new text end

new text begin Extension. new text end

new text begin The commissioner may, for good cause, extend the time for filing
the report required by subdivision 4. The extension must not exceed 15 days.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for reports filed in 2018 and thereafter.
new text end

Sec. 14.

Minnesota Statutes 2016, section 273.061, subdivision 7, is amended to read:


Subd. 7.

Division of duties between local and county assessor.

The duty of the duly
appointed local assessor shall be to view and appraise the value of all property as provided
by law, but all the book work shall be done by the county assessor, or the assessor's assistants,
and the value of all property subject to assessment and taxation shall be determined by the
county assessor, except as otherwise hereinafter provided. If directed by the county assessor,
the local assessor deleted text begin shalldeleted text end new text begin mustnew text end perform the duties enumerated in subdivision 8, clause (16)new text begin ,
and must enter construction and valuation data into the records in the manner prescribed
by the county assessor
new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2018 and thereafter.
new text end

Sec. 15.

Minnesota Statutes 2016, section 273.08, is amended to read:


273.08 ASSESSOR'S DUTIES.

The assessor shall actually view, and determine the market value of each tract or lot of
real property listed for taxation, including the value of all improvements and structures
thereon, at maximum intervals of five years and shall enter the value opposite each
description.new text begin When directed by the county assessor, local assessors must enter construction
and valuation data into the records in the manner prescribed by the county assessor.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2018 and thereafter.
new text end

Sec. 16.

Minnesota Statutes 2016, section 273.121, is amended by adding a subdivision
to read:


new text begin Subd. 3. new text end

new text begin Compliance. new text end

new text begin A county assessor, or a city assessor having the powers of a
county assessor, who does not comply with the timely notice requirement under subdivision
1 must:
new text end

new text begin (1) mail an additional valuation notice to each person who was not provided timely
notice; and
new text end

new text begin (2) convene a supplemental local board of appeal and equalization or local review session
no sooner than ten days after sending the additional notices required by clause (1).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for valuation notices sent in 2018 and
thereafter.
new text end

Sec. 17.

Minnesota Statutes 2016, section 273.13, subdivision 22, is amended to read:


Subd. 22.

Class 1.

(a) Except as provided in subdivision 23 and in paragraphs (b) and
(c), real estate which is residential and used for homestead purposes is class 1a. In the case
of a duplex or triplex in which one of the units is used for homestead purposes, the entire
property is deemed to be used for homestead purposes. The market value of class 1a property
must be determined based upon the value of the house, garage, and land.

The first $500,000 of market value of class 1a property has a net classification rate of
one percent of its market value; and the market value of class 1a property that exceeds
$500,000 has a classification rate of 1.25 percent of its market value.

(b) Class 1b property includes homestead real estate or homestead manufactured homes
used for the purposes of a homestead by:

(1) any person who is blind as defined in section 256D.35, or the blind person and the
blind person's spouse;

(2) any person who is permanently and totally disabled or by the disabled person and
the disabled person's spouse; or

(3) the surviving spouse of a permanently and totally disabled veteran homesteading a
property classified under this paragraph for taxes payable in 2008.

Property is classified and assessed under clause (2) only if the government agency or
income-providing source certifies, upon the request of the homestead occupant, that the
homestead occupant satisfies the disability requirements of this paragraph, and that the
property is not eligible for the valuation exclusion under subdivision 34.

Property is classified and assessed under paragraph (b) only if the commissioner of
revenue or the county assessor certifies that the homestead occupant satisfies the requirements
of this paragraph.

Permanently and totally disabled for the purpose of this subdivision means a condition
which is permanent in nature and totally incapacitates the person from working at an
occupation which brings the person an income. The first $50,000 market value of class 1b
property has a net classification rate of .45 percent of its market value. The remaining market
value of class 1b property deleted text begin has a classification rate using the rates fordeleted text end new text begin is classified asnew text end class
1a or class 2a property, whichever is appropriatedeleted text begin , of similar market valuedeleted text end .

(c) Class 1c property is commercial use real and personal property that abuts public
water as defined in section 103G.005, subdivision 15, and is devoted to temporary and
seasonal residential occupancy for recreational purposes but not devoted to commercial
purposes for more than 250 days in the year preceding the year of assessment, and that
includes a portion used as a homestead by the owner, which includes a dwelling occupied
as a homestead by a shareholder of a corporation that owns the resort, a partner in a
partnership that owns the resort, or a member of a limited liability company that owns the
resort even if the title to the homestead is held by the corporation, partnership, or limited
liability company. For purposes of this paragraph, property is devoted to a commercial
purpose on a specific day if any portion of the property, excluding the portion used
exclusively as a homestead, is used for residential occupancy and a fee is charged for
residential occupancy. Class 1c property must contain three or more rental units. A "rental
unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual camping
site equipped with water and electrical hookups for recreational vehicles. Class 1c property
must provide recreational activities such as the rental of ice fishing houses, boats and motors,
snowmobiles, downhill or cross-country ski equipment; provide marina services, launch
services, or guide services; or sell bait and fishing tackle. Any unit in which the right to use
the property is transferred to an individual or entity by deeded interest, or the sale of shares
or stock, no longer qualifies for class 1c even though it may remain available for rent. A
camping pad offered for rent by a property that otherwise qualifies for class 1c is also class
1c, regardless of the term of the rental agreement, as long as the use of the camping pad
does not exceed 250 days. If the same owner owns two separate parcels that are located in
the same township, and one of those properties is classified as a class 1c property and the
other would be eligible to be classified as a class 1c property if it was used as the homestead
of the owner, both properties will be assessed as a single class 1c property; for purposes of
this sentence, properties are deemed to be owned by the same owner if each of them is
owned by a limited liability company, and both limited liability companies have the same
membership. The portion of the property used as a homestead is class 1a property under
paragraph (a). The remainder of the property is classified as follows: the first $600,000 of
market value is tier I, the next $1,700,000 of market value is tier II, and any remaining
market value is tier III. The classification rates for class 1c are: tier I, 0.50 percent; tier II,
1.0 percent; and tier III, 1.25 percent. Owners of real and personal property devoted to
temporary and seasonal residential occupancy for recreation purposes in which all or a
portion of the property was devoted to commercial purposes for not more than 250 days in
the year preceding the year of assessment desiring classification as class 1c, must submit a
declaration to the assessor designating the cabins or units occupied for 250 days or less in
the year preceding the year of assessment by January 15 of the assessment year. Those
cabins or units and a proportionate share of the land on which they are located must be
designated as class 1c as otherwise provided. The remainder of the cabins or units and a
proportionate share of the land on which they are located must be designated as class 3a
commercial. The owner of property desiring designation as class 1c property must provide
guest registers or other records demonstrating that the units for which class 1c designation
is sought were not occupied for more than 250 days in the year preceding the assessment
if so requested. The portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop,
(4) conference center or meeting room, and (5) other nonresidential facility operated on a
commercial basis not directly related to temporary and seasonal residential occupancy for
recreation purposes does not qualify for class 1c.

(d) Class 1d property includes structures that meet all of the following criteria:

(1) the structure is located on property that is classified as agricultural property under
section 273.13, subdivision 23;

(2) the structure is occupied exclusively by seasonal farm workers during the time when
they work on that farm, and the occupants are not charged rent for the privilege of occupying
the property, provided that use of the structure for storage of farm equipment and produce
does not disqualify the property from classification under this paragraph;

(3) the structure meets all applicable health and safety requirements for the appropriate
season; and

(4) the structure is not salable as residential property because it does not comply with
local ordinances relating to location in relation to streets or roads.

The market value of class 1d property has the same classification rates as class 1a property
under paragraph (a).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2018 and thereafter.
new text end

Sec. 18.

Minnesota Statutes 2016, section 273.33, subdivision 1, is amended to read:


Subdivision 1.

Listing and assessment in county.

The personal property of express,
stage and transportation companies, and of pipeline companies engaged in the business of
transporting deleted text begin natural gas, gasoline, crude oil, or other petroleumdeleted text end productsnew text begin ,new text end except as otherwise
provided by law, shall be listed and assessed in the county, town or district where the same
is usually kept.

new text begin EFFECTIVE DATE. new text end

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

Sec. 19.

Minnesota Statutes 2016, section 273.33, subdivision 2, is amended to read:


Subd. 2.

Listing and assessment by commissioner.

The personal property, consisting
of the pipeline system of mains, pipes, and equipment attached thereto, of pipeline companies
and others engaged in the operations or business of transporting deleted text begin natural gas, gasoline, crude
oil, or other petroleum
deleted text end products by pipelines, shall be listed with and assessed by the
commissioner of revenue and the values provided to the city or county assessor by order.
This subdivision shall not apply to the assessment of the products transported through the
pipelines nor to the lines of local commercial gas companies engaged primarily in the
business of distributing deleted text begin gasdeleted text end new text begin productsnew text end to consumers at retail nor to pipelines used by the
owner thereof to supply deleted text begin natural gas or other petroleum deleted text end products exclusively for such owner's
own consumption and not for resale to others. If more than 85 percent of the deleted text begin natural gas or
other petroleum
deleted text end products actually transported over the pipeline is used for the owner's own
consumption and not for resale to others, then this subdivision shall not apply; provided,
however, that in that event, the pipeline shall be assessed in proportion to the percentage
of deleted text begin gasdeleted text end new text begin productsnew text end actually transported over such pipeline that is not used for the owner's own
consumption. On or before August 1, the commissioner shall certify to the auditor of each
county, the amount of such personal property assessment against each company in each
district in which such property is located. If the commissioner determines that the amount
of personal property assessment certified on or before August 1 is in error, the commissioner
may issue a corrected certification on or before October 1. The commissioner may correct
errors that are merely clerical in nature until December 31.

new text begin EFFECTIVE DATE. new text end

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

Sec. 20.

Minnesota Statutes 2016, section 273.372, subdivision 2, is amended to read:


Subd. 2.

Contents and filing of petition.

(a) In all appeals to court that are required to
be brought against the commissioner under this section, the petition initiating the appeal
must be served on the commissioner and must be filed with the Tax Court in Ramsey County,
as provided in paragraph (b) or (c).

(b) If the appeal to court is from an order of the commissioner, it must be brought under
chapter 271new text begin and filed within the time period prescribed in section 271.06, subdivision 2new text end ,
except that when the provisions of this section conflict with chapter 271new text begin or 278new text end , this section
prevails. In addition, the petition must include all the parcels encompassed by that order
which the petitioner claims have been partially, unfairly, or unequally assessed, assessed
at a valuation greater than their real or actual value, misclassified, or are exempt. For this
purpose, an order of the commissioner is either (1) a certification or notice of value by the
commissioner for property described in subdivision 1, or (2) the final determination by the
commissioner of either an Previous administrative Next appeal conference or informal Previous administrative Next
appeal described in subdivision 4.

(c) If the appeal is from the tax that results from implementation of the commissioner's
order, certification, or recommendation, it must be brought under chapter 278, and the
provisions in that chapter apply, except that service shall be on the commissioner only and
not on the local officials specified in section 278.01, subdivision 1, and if any other provision
of this section conflicts with chapter 278, this section prevails. In addition, the petition must
include either all the utility parcels or all the railroad parcels in the state in which the
petitioner claims an interest and which the petitioner claims have been partially, unfairly,
or unequally assessed, assessed at a valuation greater than their real or actual value,
misclassified, or are exempt.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2018 and thereafter.
new text end

Sec. 21.

Minnesota Statutes 2016, section 273.372, subdivision 4, is amended to read:


Subd. 4.

Previous Administrative Next appeals.

(a) Companies that submit the reports under section
270.82 or 273.371 by the date specified in that section, or by the date specified by the
commissioner in an extension, may appeal administratively to the commissioner prior to
bringing an action in court.

(b) Companies deleted text begin thatdeleted text end must deleted text begin submit reports under section 270.82 must submitdeleted text end new text begin filenew text end a written
request deleted text begin todeleted text end new text begin for an appeal withnew text end the commissioner deleted text begin for a conferencedeleted text end within deleted text begin tendeleted text end new text begin 30 new text end days after
the new text begin notice new text end date of the commissioner's valuation certification or new text begin other new text end notice to the companydeleted text begin ,
or by June 15, whichever is earlier
deleted text end .new text begin For purposes of this section, "notice date" means the
notice date of the valuation certification, commissioner's order, recommendation, or other
notice.
new text end

(c) deleted text begin Companies that submit reports under section 273.371 must submit a written request
to the commissioner for a conference within ten days after the date of the commissioner's
valuation certification or notice to the company, or by July 1, whichever is earlier.
deleted text end new text begin The
appeal need not be in any particular form but must contain the following information:
new text end

new text begin (1) name and address of the company;
new text end

new text begin (2) the date;
new text end

new text begin (3) its Minnesota identification number;
new text end

new text begin (4) the assessment year or period involved;
new text end

new text begin (5) the findings in the valuation that the company disputes;
new text end

new text begin (6) a summary statement specifying its reasons for disputing each item; and
new text end

new text begin (7) the signature of the company's duly authorized agent or representative.
new text end

new text begin (d) When requested in writing and within the time allowed for filing an Previous administrative Next
appeal, the commissioner may extend the time for filing an appeal for a period of not more
than 15 days from the expiration of the time for filing the appeal.
new text end

deleted text begin (d)deleted text end new text begin (e)new text end The commissioner shall conduct the conference new text begin either in person or by telephone
new text end upon the commissioner's entire files and records and such further information as may be
offered. The conference must be held no later than 20 days after the date of the
deleted text begin commissioner's valuation certification or notice to the company, or by the date specified by
the commissioner in an extension
deleted text end new text begin request for an appealnew text end . Within deleted text begin 60deleted text end new text begin 30new text end days after the
conference the commissioner shall make a final determination of the matter and shall notify
the company promptly of the determination. The conference is not a contested case hearingnew text begin
subject to chapter 14
new text end .

deleted text begin (e) In addition to the opportunity for a conference under paragraph (a), the commissioner
shall also provide the railroad and utility companies the opportunity to discuss any questions
or concerns relating to the values established by the commissioner through certification or
notice in a less formal manner. This does not change or modify the deadline for requesting
a conference under paragraph (a), the deadline in section 271.06 for appealing an order of
the commissioner, or the deadline in section 278.01 for appealing property taxes in court.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2018 and thereafter.
new text end

Sec. 22.

Minnesota Statutes 2016, section 273.372, is amended by adding a subdivision
to read:


new text begin Subd. 5. new text end

new text begin Agreement determining valuation. new text end

new text begin When it appears to be in the best interest
of the state, the commissioner may settle any matter under consideration regarding an appeal
filed under this section. The agreement must be in writing and signed by the commissioner
and the company or the company's authorized representative. The agreement is final and
conclusive, and except upon a showing of fraud, malfeasance, or misrepresentation of a
material fact, the case may not be reopened as to the matters agreed upon.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2018 and thereafter.
new text end

Sec. 23.

Minnesota Statutes 2016, section 273.372, is amended by adding a subdivision
to read:


new text begin Subd. 6. new text end

new text begin Dismissal of Previous administrative Next appeal. new text end

new text begin If a taxpayer files an Previous administrative Next appeal
from an order of the commissioner and also files an appeal to the tax court for that same
order of the commissioner, the Previous administrative Next appeal is dismissed and the commissioner is
no longer required to make the determination of appeal under subdivision 4.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2017.
new text end

Sec. 24.

new text begin [273.88] EQUALIZATION OF PUBLIC UTILITY STRUCTURES.
new text end

new text begin After making the apportionment provided in Minnesota Rules, part 8100.0600, the
commissioner must equalize the values of the operating structures to the level accepted by
the State Board of Equalization if the appropriate sales ratio for each county, as conducted
by the Department of Revenue pursuant to section 270.12, subdivision 2, clause (6), is
outside the range accepted by the State Board of Equalization. The commissioner must not
equalize the value of the operating structures if the sales ratio determined pursuant to this
subdivision is within the range accepted by the State Board of Equalization.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2017.
new text end

Sec. 25.

Minnesota Statutes 2016, section 274.01, subdivision 1, is amended to read:


Subdivision 1.

Ordinary board; meetings, deadlines, grievances.

(a) The town board
of a town, or the council or other governing body of a city, is the new text begin local new text end board of appeal and
equalization except (1) in cities whose charters provide for a board of equalization or (2)
in any city or town that has transferred its local board of review power and duties to the
county board as provided in subdivision 3. The county assessor shall fix a day and time
when deleted text begin the board ordeleted text end the new text begin local new text end board of equalization shall meet in the assessment districts of
the county. Notwithstanding any law or city charter to the contrary, a city board of
equalization shall be referred to as a new text begin local new text end board of appeal and equalization. On or before
February 15 of each year the assessor shall give written notice of the time to the city or
town clerk. Notwithstanding the provisions of any charter to the contrary, the meetings must
be held between April 1 and May 31 each year. The clerk shall give published and posted
notice of the meeting at least ten days before the date of the meeting.

The board shall meet either at a central location within the county or at the office of the
clerk to review the assessment and classification of property in the town or city. No changes
in valuation or classification which are intended to correct errors in judgment by the county
assessor may be made by the county assessor after the board has adjourned in those cities
or towns that hold a local board of review; however, corrections of errors that are merely
clerical in nature or changes that extend homestead treatment to property are permitted after
adjournment until the tax extension date for that assessment year. The changes must be fully
documented and maintained in the assessor's office and must be available for review by any
person. A copy of the changes made during this period in those cities or towns that hold a
local board of review must be sent to the county board no later than December 31 of the
assessment year.

(b) The board shall determine whether the taxable property in the town or city has been
properly placed on the list and properly valued by the assessor. If real or personal property
has been omitted, the board shall place it on the list with its market value, and correct the
assessment so that each tract or lot of real property, and each article, parcel, or class of
personal property, is entered on the assessment list at its market value. No assessment of
the property of any person may be raised unless the person has been duly notified of the
intent of the board to do so. On application of any person feeling aggrieved, the board shall
review the assessment or classification, or both, and correct it as appears just. The board
may not make an individual market value adjustment or classification change that would
benefit the property if the owner or other person having control over the property has refused
the assessor access to inspect the property and the interior of any buildings or structures as
provided in section 273.20. A board member shall not participate in any actions of the board
which result in market value adjustments or classification changes to property owned by
the board member, the spouse, parent, stepparent, child, stepchild, grandparent, grandchild,
brother, sister, uncle, aunt, nephew, or niece of a board member, or property in which a
board member has a financial interest. The relationship may be by blood or marriage.

(c) A local board may reduce assessments upon petition of the taxpayer but the total
reductions must not reduce the aggregate assessment made by the county assessor by more
than one percent. If the total reductions would lower the aggregate assessments made by
the county assessor by more than one percent, none of the adjustments may be made. The
assessor shall correct any clerical errors or double assessments discovered by the board
without regard to the one percent limitation.

(d) A local board does not have authority to grant an exemption or to order property
removed from the tax rolls.

(e) A majority of the members may act at the meeting, and adjourn from day to day until
they finish hearing the cases presented. The assessor shall attend and take part in the
proceedings, but must not vote. The county assessor, or an assistant delegated by the county
assessor shall attend the meetings. The board shall list separately all omitted property added
to the list by the board and all items of property increased or decreased, with the market
value of each item of property, added or changed by the board. The county assessor shall
enter all changes made by the board.

(f) Except as provided in subdivision 3, if a person fails to appear in person, by counsel,
or by written communication before the board after being duly notified of the board's intent
to raise the assessment of the property, or if a person feeling aggrieved by an assessment
or classification fails to apply for a review of the assessment or classification, the person
may not appear before the county board of appeal and equalization for a review. This
paragraph does not apply if an assessment was made after the local board meeting, as
provided in section 273.01, or if the person can establish not having received notice of
market value at least five days before the local board meeting.

(g) The local board must complete its work and adjourn within 20 days from the time
of convening stated in the notice of the clerk, unless a longer period is approved by the
commissioner of revenue. No action taken after that date is valid. All complaints about an
assessment or classification made after the meeting of the board must be heard and
determined by the county board of equalization. A nonresident may, at any time, before the
meeting of the board file written objections to an assessment or classification with the county
assessor. The objections must be presented to the board at its meeting by the county assessor
for its consideration.

new text begin EFFECTIVE DATE. new text end

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

Sec. 26.

Minnesota Statutes 2016, section 274.13, subdivision 1, is amended to read:


Subdivision 1.

Members; meetings; rules for equalizing assessments.

The county
commissioners, or a majority of them, with the county auditor, or, if the auditor cannot be
present, the deputy county auditor, or, if there is no deputy, the court administrator of the
district court, shall form a board for the equalization of the assessment of the property of
the county, including the property of all cities whose charters provide for a board of
equalization. This board shall be referred to as the county board of appeal and equalization.
The board shall meet annually, on the date specified in section 274.14, at the office of the
auditor. Each member shall take an oath to fairly and impartially perform duties as a member.
Members shall not participate in any actions of the board which result in market value
adjustments or classification changes to property owned by the board member, the spouse,
parent, stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt,
nephew, or niece of a board member, or property in which a board member has a financial
interest. The relationship may be by blood or marriage. The board shall examine and compare
the returns of the assessment of property of the towns or districts, and equalize them so that
each tract or lot of real property and each article or class of personal property is entered on
the assessment list at its market value, subject to the following rules:

(1) The board shall raise the valuation of each tract or lot of real property which in its
opinion is returned below its market value to the sum believed to be its market value. The
board must first give notice of intention to raise the valuation to the person in whose name
it is assessed, if the person is a resident of the county. The notice must fix a time and place
for a hearing.

(2) The board shall reduce the valuation of each tract or lot which in its opinion is returned
above its market value to the sum believed to be its market value.

(3) The board shall raise the valuation of each class of personal property which in its
opinion is returned below its market value to the sum believed to be its market value. It
shall raise the aggregate value of the personal property of individuals, firms, or corporations,
when it believes that the aggregate valuation, as returned, is less than the market value of
the taxable personal property possessed by the individuals, firms, or corporations, to the
sum it believes to be the market value. The board must first give notice to the persons of
intention to do so. The notice must set a time and place for a hearing.

(4) The board shall reduce the valuation of each class of personal property that is returned
above its market value to the sum it believes to be its market value. Upon complaint of a
party aggrieved, the board shall reduce the aggregate valuation of the individual's personal
property, or of any class of personal property for which the individual is assessed, which
in its opinion has been assessed at too large a sum, to the sum it believes was the market
value of the individual's personal property of that class.

(5) The board must not reduce the aggregate value of all the property of its county, as
submitted to the county board of equalization, with the additions made by the auditor under
this chapter, by more than one percent of its whole valuation. The board may raise the
aggregate valuation of real property, and of each class of personal property, of the county,
or of any town or district of the county, when it believes it is below the market value of the
property, or class of property, to the aggregate amount it believes to be its market value.

(6) The board shall change the classification of any property which in its opinion is not
properly classified.

(7) The board does not have the authority to grant an exemption or to order property
removed from the tax rolls.

new text begin (8) The board may not make an individual market value adjustment or classification
change that would benefit property if the owner or other person having control over the
property has refused the assessor access to inspect the property and the interior of any
buildings or structures as provided in section 273.20.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for county board of appeal and
equalization meetings in 2018 and thereafter.
new text end

Sec. 27.

Minnesota Statutes 2016, section 274.135, subdivision 3, is amended to read:


Subd. 3.

Proof of compliance; transfer of duties.

(a) Any county that conducts county
boards of appeal and equalization meetings must provide proof to the commissioner by
deleted text begin December 1, 2009, and each year thereafter,deleted text end new text begin February 1 new text end that it is in compliance with the
requirements of subdivision 2. deleted text begin Beginning in 2009,deleted text end This notice must also verify that there
was a quorum of voting members at each meeting of the board of appeal and equalization
in the deleted text begin currentdeleted text end new text begin previousnew text end year. A county that does not comply with these requirements is
deemed to have transferred its board of appeal and equalization powers to the special board
of equalization appointed pursuant to section 274.13, subdivision 2, beginning with the
following year's assessment and continuing unless the powers are reinstated under paragraph
(c). A county that does not comply with the requirements of subdivision 2 and has not
appointed a special board of equalization shall appoint a special board of equalization before
the following year's assessment.

(b) The county shall notify the taxpayers when the board of appeal and equalization for
a county has been transferred to the special board of equalization under this subdivision
and, prior to the meeting time of the special board of equalization, the county shall make
available to those taxpayers a procedure for a review of the assessments, including, but not
limited to, open book meetings. This alternate review process must take place in April and
May.

(c) A county board whose powers are transferred to the special board of equalization
under this subdivision may be reinstated by resolution of the county board and upon proof
of compliance with the requirements of subdivision 2. The resolution and proofs must be
provided to the commissioner by deleted text begin Decemberdeleted text end new text begin Februarynew text end 1 in order to be effective for the
deleted text begin followingdeleted text end new text begin currentnew text end year's assessment.

(d) If a person who was entitled to appeal to the county board of appeal and equalization
or to the county special board of equalization is not able to do so in a particular year because
the county board or special board did not meet the quorum and training requirements in this
section and section 274.13, or because the special board was not appointed, that person may
instead appeal to the commissioner of revenue, provided that the appeal is received by the
commissioner prior to August 1. The appeal is not subject to either chapter 14 or section
270C.92. The commissioner must issue an appropriate order to the county assessor in
response to each timely appeal, either upholding or changing the valuation or classification
of the property. Prior to October 1 of each year, the commissioner must charge and bill the
county where the property is located $500 for each tax parcel covered by an order issued
under this paragraph in that year. Amounts received by the commissioner under this paragraph
must be deposited in the state's general fund. If payment of a billed amount is not received
by the commissioner before December 1 of the year when billed, the commissioner must
deduct that unpaid amount from any state aid the commissioner would otherwise pay to the
county under chapter 477A in the next year. Late payments may either be returned to the
county uncashed and undeposited or may be accepted. If a late payment is accepted, the
state aid paid to the county under chapter 477A must be adjusted within 12 months to
eliminate any reduction that occurred because the payment was late. Amounts needed to
make these adjustments are included in the appropriation under section 477A.03, subdivision
2
.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for county boards of appeal and
equalization meetings held in 2018 and thereafter.
new text end

Sec. 28.

Minnesota Statutes 2016, section 275.065, subdivision 1, is amended to read:


Subdivision 1.

Proposed levy.

(a) Notwithstanding any law or charter to the contrary,
on or before September 30, each county and each home rule charter or statutory city shall
certify to the county auditor the proposed property tax levy for taxes payable in the following
year.

(b) Notwithstanding any law or charter to the contrary, on or before September 15, each
town and each special taxing district shall adopt and certify to the county auditor a proposed
property tax levy for taxes payable in the following year. For towns, the final certified levy
shall also be considered the proposed levy.

(c) On or before September 30, each school district that has not mutually agreed with
its home county to extend this date shall certify to the county auditor the proposed property
tax levy for taxes payable in the following year. Each school district that has agreed with
its home county to delay the certification of its proposed property tax levy must certify its
proposed property tax levy for the following year no later than October 7. The school district
shall certify the proposed levy as:

(1) a specific dollar amount by school district fund, broken down between voter-approved
and non-voter-approved levies and between referendum market value and tax capacity
levies; or

(2) the maximum levy limitation certified by the commissioner of education according
to section 126C.48, subdivision 1.

(d) If the board of estimate and taxation or any similar board that establishes maximum
tax levies for taxing jurisdictions within a first class city certifies the maximum property
tax levies for funds under its jurisdiction by charter to the county auditor by the date specified
in paragraph (a), the city shall be deemed to have certified its levies for those taxing
jurisdictions.

(e) For purposes of this section, "special taxing district" means a special taxing district
as defined in section 275.066. Intermediate school districts that levy a tax under chapter
124 or 136D, joint powers boards established under sections 123A.44 to 123A.446, and
Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special
taxing districts for purposes of this section.

(f) At the meeting at which a taxing authority, other than a town, adopts its proposed
tax levy under this subdivision, the taxing authority shall announce the time and place of
deleted text begin itsdeleted text end new text begin anynew text end subsequent regularly scheduled meetings at which the budget and levy will be
discussed and at which the public will be allowed to speak. The time and place of those
meetings must be included in the proceedings or summary of proceedings published in the
official newspaper of the taxing authority under section 123B.09, 375.12, or 412.191.

new text begin EFFECTIVE DATE. new text end

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

Sec. 29.

Minnesota Statutes 2016, section 275.62, subdivision 2, is amended to read:


Subd. 2.

Local governments required to report.

For purposes of this section, "local
governmental unit" means a county, home rule charter or statutory city with a population
greater than 2,500deleted text begin , a town with a population greater than 5,000, or a home rule charter or
statutory city or town that receives a distribution from the taconite municipal aid account
in the levy year
deleted text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 30.

Minnesota Statutes 2016, section 278.01, subdivision 1, is amended to read:


Subdivision 1.

Determination of validity.

(a) Any person having personal property, or
any estate, right, title, or interest in or lien upon any parcel of land, who claims that such
property has been partially, unfairly, or unequally assessed in comparison with other property
in the (1) city, or (2) county, or (3) in the case of a county containing a city of the first class,
the portion of the county excluding the first class city, or that the parcel has been assessed
at a valuation greater than its real or actual value, or that the tax levied against the same is
illegal, in whole or in part, or has been paid, or that the property is exempt from the tax so
levied, may have the validity of the claim, defense, or objection determined by the district
court of the county in which the tax is levied or by the Tax Court by serving one copy of a
petition for such determination upon the county auditor, one copy on the county attorney,
one copy on the county treasurer, and three copies on the county assessor. The county
assessor shall immediately forward one copy of the petition to the appropriate governmental
authority in a home rule charter or statutory city or town in which the property is located if
that city or town employs its own certified assessor. A copy of the petition shall also be
forwarded by the assessor to the school board of the school district in which the property
is located.

(b) In counties where the office of county treasurer has been combined with the office
of county auditor, the county may elect to require the petitioner to serve the number of
copies as determined by the county. The county assessor shall immediately forward one
copy of the petition to the appropriate governmental authority in a home rule charter or
statutory city or town in which the property is located if that city or town employs its own
certified assessor. A list of petitioned properties, including the name of the petitioner, the
identification number of the property, and the estimated market value, shall be sent on or
before the first day of July by the county auditor/treasurer to the school board of the school
district in which the property is located.

(c) For all counties, the petitioner must file the copies with proof of service, in the office
of the court administrator of the district court on or before April 30 of the year in which the
tax becomes payable. A petition for determination under this section may be transferred by
the district court to the Tax Court. An appeal may also be taken to the Tax Court under
chapter 271 at any time following receipt of the valuation noticenew text begin that county assessors or
city assessors having the powers of a county assessor are
new text end required by section 273.121new text begin to
send to persons whose property is to be included on the assessment roll that year,
new text end but prior
to May 1 of the year in which the taxes are payable.

new text begin EFFECTIVE DATE. new text end

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

Sec. 31.

Minnesota Statutes 2016, section 282.01, subdivision 1a, is amended to read:


Subd. 1a.

Conveyance to public entities.

(a) Upon written request from a state agency
or a governmental subdivision of the state, a parcel of unsold tax-forfeited land must be
withheld from sale or lease to others for a maximum of six months. The request must be
submitted to the county auditor. Upon receipt, the county auditor must withhold the parcel
from sale or lease to any other party for six months, and must confirm the starting date of
the six-month withholding period to the requesting agency or subdivision. If the request is
from a governmental subdivision of the state, the governmental subdivision must pay the
maintenance costs incurred by the county during the period the parcel is withheld. The
county board may approve a sale or conveyance to the requesting party during the
withholding period. A conveyance of the property to the requesting party terminates the
withholding period.

A governmental subdivision of the state must not make, and a county auditor must not
act upon, a second request to withhold a parcel from sale or lease within 18 months of a
previous request for that parcel. A county may reject a request made under this paragraph
if the request is made more than 30 days after the county has given notice to the requesting
state agency or governmental subdivision of the state that the county intends to sell or
otherwise dispose of the property.

(b) Nonconservation tax-forfeited lands may be sold by the county board, for their market
value as determined by the county board, to an organized or incorporated governmental
subdivision of the state for any public purpose for which the subdivision is authorized to
acquire property. When the term "market value" is used in this section, it means an estimate
of the full and actual market value of the parcel as determined by the county board, but in
making this determination, the board and the persons employed by or under contract with
the board in order to perform, conduct, or assist in the determination, are exempt from the
licensure requirements of chapter 82B.

(c) Nonconservation tax-forfeited lands may be deleted text begin released from the trust in favor of the
taxing districts on application to
deleted text end new text begin sold by new text end the county board deleted text begin bydeleted text end new text begin , for their market value as
determined by the county board, to
new text end a state agency for deleted text begin an authorized use at not less than their
market value as determined by the county board
deleted text end new text begin any public purpose for which the agency
is authorized to acquire property
new text end .

(d) Nonconservation tax-forfeited lands may be sold by the county board to an organized
or incorporated governmental subdivision of the state or state agency for less than their
market value if:

(1) the county board determines that a sale at a reduced price is in the public interest
because a reduced price is necessary to provide an incentive to correct the blighted conditions
that make the lands undesirable in the open market, or the reduced price will lead to the
development of affordable housing; and

(2) the governmental subdivision or state agency has documented its specific plans for
correcting the blighted conditions or developing affordable housing, and the specific law
or laws that empower it to acquire real property in furtherance of the plans.

If the sale under this paragraph is to a governmental subdivision of the state, the
commissioner of revenue must convey the property on behalf of the state by quitclaim deed.
If the sale under this paragraph is to a state agency, new text begin the property is released from the trust
in favor of the taxing districts and
new text end the commissioner new text begin of revenue new text end must deleted text begin issue a conveyance
document that releases the property from the trust in favor of the taxing districts
deleted text end new text begin convey the
property on behalf of the state by quitclaim deed to the agency
new text end .

(e) Nonconservation tax-forfeited land held in trust in favor of the taxing districts may
be conveyed by the commissioner of revenue in the name of the state to a governmental
subdivision for an authorized public use, if an application is submitted to the commissioner
which includes a statement of facts as to the use to be made of the tract and the favorable
recommendation of the county board. For the purposes of this paragraph, "authorized public
use" means a use that allows an indefinite segment of the public to physically use and enjoy
the property in numbers appropriate to its size and use, or is for a public service facility.
Authorized public uses as defined in this paragraph are limited to:

(1) a road, or right-of-way for a road;

(2) a park that is both available to, and accessible by, the public that contains
improvements such as campgrounds, playgrounds, athletic fields, trails, or shelters;

(3) trails for walking, bicycling, snowmobiling, or other recreational purposes, along
with a reasonable amount of surrounding land maintained in its natural state;

(4) transit facilities for buses, light rail transit, commuter rail or passenger rail, including
transit ways, park-and-ride lots, transit stations, maintenance and garage facilities, and other
facilities related to a public transit system;

(5) public beaches or boat launches;

(6) public parking;

(7) civic recreation or conference facilities; and

(8) public service facilities such as fire halls, police stations, lift stations, water towers,
sanitation facilities, water treatment facilities, and Previous administrative Next offices.

No monetary compensation or consideration is required for the conveyance, except as
provided in subdivision 1g, but the conveyance is subject to the conditions provided in law,
including, but not limited to, the reversion provisions of subdivisions 1c and 1d.

(f) The commissioner of revenue shall convey a parcel of nonconservation tax-forfeited
land to a local governmental subdivision of the state by quitclaim deed on behalf of the state
upon the favorable recommendation of the county board if the governmental subdivision
has certified to the board that prior to forfeiture the subdivision was entitled to the parcel
under a written development agreement or instrument, but the conveyance failed to occur
prior to forfeiture. No compensation or consideration is required for, and no conditions
attach to, the conveyance.

(g) The commissioner of revenue shall convey a parcel of nonconservation tax-forfeited
land to the association of a common interest community by quitclaim deed upon the favorable
recommendation of the county board if the association certifies to the board that prior to
forfeiture the association was entitled to the parcel under a written agreement, but the
conveyance failed to occur prior to forfeiture. No compensation or consideration is required
for, and no conditions attach to, the conveyance.

(h) Conservation tax-forfeited land may be sold to a governmental subdivision of the
state for less than its market value for either: (1) creation or preservation of wetlands; (2)
drainage or storage of storm water under a storm water management plan; or (3) preservation,
or restoration and preservation, of the land in its natural state. The deed must contain a
restrictive covenant limiting the use of the land to one of these purposes for 30 years or
until the property is reconveyed back to the state in trust. At any time, the governmental
subdivision may reconvey the property to the state in trust for the taxing districts. The deed
of reconveyance is subject to approval by the commissioner of revenue. No part of a purchase
price determined under this paragraph shall be refunded upon a reconveyance, but the
amount paid for a conveyance under this paragraph may be taken into account by the county
board when setting the terms of a future sale of the same property to the same governmental
subdivision under paragraph (b) or (d). If the lands are unplatted and located outside of an
incorporated municipality and the commissioner of natural resources determines there is a
mineral use potential, the sale is subject to the approval of the commissioner of natural
resources.

(i) A park and recreation board in a city of the first class is a governmental subdivision
for the purposes of this section.

(j) Tax-forfeited land held in trust in favor of the taxing districts may be conveyed by
the commissioner of revenue in the name of the state to a governmental subdivision for a
school forest under section 89.41. An application that includes a statement of facts as to the
use to be made of the tract and the favorable recommendation of the county board and the
commissioner of natural resources must be submitted to the commissioner of revenue. No
monetary compensation or consideration is required for the conveyance, but the conveyance
is subject to the conditional use and reversion provisions of subdivisions 1c and 1d, paragraph
(e). At any time, the governmental subdivision may reconvey the property back to the state
in trust for the taxing districts. The deed of reconveyance is subject to approval by the
commissioner of revenue.

new text begin EFFECTIVE DATE. new text end

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

Sec. 32.

Minnesota Statutes 2016, section 282.01, subdivision 1d, is amended to read:


Subd. 1d.

Reverter for failure to use; conveyance to state.

(a) After three years from
the date of any conveyance of tax-forfeited land to a governmental subdivision for an
authorized public use as provided in this section, regardless of when the deed for the
authorized public use was executed, if the governmental subdivision has failed to put the
land to that use, or abandons that use, the governing body of the subdivision must: (1) with
the approval of the county board, purchase the property for an authorized public purpose
at the present market value as determined by the county board, or (2) authorize the proper
officers to convey the land, or the part of the land not required for an authorized public use,
to the state of Minnesota in trust for the taxing districts. If the governing body purchases
the property under clause (1), the commissioner of revenue shall, upon proper application
submitted by the county auditornew text begin and upon the reconveyance of the land subject to the
conditional use deed to the state
new text end , convey the property on behalf of the state by quitclaim
deed to the subdivision free of a use restriction and the possibility of reversion or
defeasement. If the governing body decides to reconvey the property to the state under this
clause, the officers shall execute a deed of conveyance immediately. The conveyance is
subject to the approval of the commissioner and its form must be approved by the attorney
general. For 15 years from the date of the conveyance, there is no failure to put the land to
the authorized public use and no abandonment of that use if a formal plan of the governmental
subdivision, including, but not limited to, a comprehensive plan or land use plan, shows an
intended future use of the land for the authorized public use.

(b) Property held by a governmental subdivision of the state under a conditional use
deed executed under this section by the commissioner of revenue on or after January 1,
2007, may be acquired by that governmental subdivision after 15 years from the date of the
conveyance if the commissioner determines upon written application from the subdivision
that the subdivision has in fact put the property to the authorized public use for which it
was conveyed, and the subdivision has made a finding that it has no current plans to change
the use of the lands. Prior to conveying the property, the commissioner shall inquire whether
the county board where the land is located objects to a conveyance of the property to the
subdivision without conditions and without further act by or obligation of the subdivision.
If the county does not object within 60 days, and the commissioner makes a favorable
determination, the commissioner shall issue a quitclaim deed on behalf of the state
unconditionally conveying the property to the governmental subdivision. For purposes of
this paragraph, demonstration of an intended future use for the authorized public use in a
formal plan of the governmental subdivision does not constitute use for that authorized
public use.

(c) Property held by a governmental subdivision of the state under a conditional use
deed executed under this section by the commissioner of revenue before January 1, 2007,
is released from the use restriction and possibility of reversion on January 1, 2022, if the
county board records a resolution describing the land and citing this paragraph. The county
board may authorize the county treasurer to deduct the amount of the recording fees from
future settlements of property taxes to the subdivision.

(d) Except for tax-forfeited land conveyed to establish a school forest under section
89.41, property conveyed under a conditional use deed executed under this section by the
commissioner of revenue, regardless of when the deed for the authorized public use was
executed, is released from the use restriction and reverter, and any use restriction or reverter
for which no declaration of reversion has been recorded with the county recorder or registrar
of titles, as appropriate, is nullified on the later of: (1) January 1, 2015; (2) 30 years from
the date the deed was acknowledged; or (3) final resolution of an appeal to district court
under subdivision 1e, if a lis pendens related to the appeal is recorded in the office of the
county recorder or registrar of titles, as appropriate, prior to January 1, 2015.

(e) Notwithstanding paragraphs (a) to (d), tax-forfeited land conveyed to establish a
school forest under section 89.41 is subject to a perpetual conditional use deed and reverter.
The property reverts to the state in trust for the taxing districts by operation of law if the
commissioner of natural resources determines and reports to the commissioner of revenue
under section 89.41, subdivision 3, that the governmental subdivision has failed to use the
land for school forest purposes for three consecutive years. The commissioner of revenue
shall record a declaration of reversion for land that has reverted under this paragraph.

new text begin EFFECTIVE DATE. new text end

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

Sec. 33.

Minnesota Statutes 2016, section 477A.013, is amended by adding a subdivision
to read:


new text begin Subd. 14. new text end

new text begin Communication by electronic mail. new text end

new text begin Prior to receiving aid pursuant to this
section, a city must register an official electronic mail address with the commissioner, which
the commissioner may use as an exclusive means to communicate with the city.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2018 and thereafter.
new text end

Sec. 34.

Minnesota Statutes 2016, section 477A.19, is amended by adding a subdivision
to read:


new text begin Subd. 3a. new text end

new text begin Certification. new text end

new text begin On or before June 1 of each year, the commissioner of natural
resources shall certify to the commissioner of revenue the number of watercraft launches
and the number of watercraft trailer parking spaces in each county.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2018 and thereafter.
new text end

Sec. 35.

Minnesota Statutes 2016, section 477A.19, is amended by adding a subdivision
to read:


new text begin Subd. 3b. new text end

new text begin Certification. new text end

new text begin On or before June 1 of each year, the commissioner of natural
resources shall certify to the commissioner of revenue the counties that complied with the
requirements of subdivision 3 the prior year and are eligible to receive aid under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2018 and thereafter.
new text end

Sec. 36.

Minnesota Statutes 2016, section 559.202, subdivision 2, is amended to read:


Subd. 2.

Exception.

This section does not applynew text begin to sales made under chapter 282 or new text end if
the purchaser is represented throughout the transaction by either:

(1) a person licensed to practice law in this state; or

(2) a person licensed as a real estate broker or salesperson under chapter 82, provided
that the representation does not create a dual agency, as that term is defined in section 82.55,
subdivision 6
.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales of tax-forfeited land occurring
the day following final enactment and thereafter.
new text end

Sec. 37.

Laws 2014, chapter 308, article 9, section 94, is amended to read:


Sec. 94. REPEALER.

(a) Minnesota Statutes 2012, sections 273.1398, subdivision 4b; 290.01, subdivision
19e; 290.0674, subdivision 3; 290.191, subdivision 4; and 290.33, and Minnesota Rules,
part 8007.0200, are repealed.

(b) Minnesota Statutes 2012, sections 16D.02, subdivisions 5 and 8; 16D.11, subdivision
2; 270C.53; 270C.991, subdivision 4; 272.02, subdivisions 1, 1a, 43, 48, 51, 53, 67, 72, and
82; deleted text begin 272.027, subdivision 2;deleted text end 272.031; 273.015, subdivision 1; 273.03, subdivision 3; 273.075;
273.13, subdivision 21a; 273.1383; 273.1386; 273.80; 275.77; 279.32; 281.173, subdivision
8; 281.174, subdivision 8; 281.328; 282.10; 282.23; 287.20, subdivision 4; 287.27,
subdivision 2; 290.01, subdivisions 4b and 20e; 295.52, subdivision 7; 297A.666; 297A.71,
subdivisions 4, 5, 7, 9, 10, 17, 18, 20, 32, and 41; 297F.08, subdivision 11; 297H.10,
subdivision 2; 469.174, subdivision 10c; 469.175, subdivision 2b; 469.176, subdivision 1i;
469.177, subdivision 10; 477A.0124, subdivisions 1 and 6; and 505.173, Minnesota Statutes
2013 Supplement, section 273.1103, Laws 1993, chapter 375, article 9, section 47, and
Minnesota Rules, parts 8002.0200, subpart 8; 8100.0800; and 8130.7500, subpart 7, are
repealed.

(c) Minnesota Statutes 2012, section 469.1764, is repealed.

(d) Minnesota Statutes 2012, sections 289A.56, subdivision 7; 297A.68, subdivision 38;
469.330; 469.331; 469.332; 469.333; 469.334; 469.335; 469.336; 469.337; 469.338; 469.339;
469.340, subdivisions 1, 2, 3, and 5; and 469.341, and Minnesota Statutes 2013 Supplement,
section 469.340, subdivision 4, are repealed.

(e) Minnesota Statutes 2012, section 290.06, subdivisions 30 and 31, are repealed.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from May 20, 2014, and
pursuant to Minnesota Statutes, section 645.36, Minnesota Statutes, section 272.027,
subdivision 2, is revived and reenacted as of that date.
new text end

Sec. 38. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2016, section 281.22, new text end new text begin is repealed.
new text end

new text begin (b) new text end new text begin Minnesota Rules, part 8100.0700, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) is effective the day following final enactment.
Paragraph (b) is effective for assessment year 2017 and thereafter.
new text end

ARTICLE 19

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

Section 1.

Minnesota Statutes 2016, section 270.82, subdivision 1, is amended to read:


Subdivision 1.

Annual report required.

Every railroad company doing business in
Minnesota shall annually file with the commissioner on or before March 31 a report under
oath setting forth the information prescribed by the commissioner to enable the commissioner
to make the valuation and equalization required by sections 270.80 to 270.87.new text begin The
commissioner shall prescribe the content, format, and manner of the report pursuant to
section 270C.30, except that a "law administered by the commissioner" includes the property
tax laws. If a report is made by electronic means, the taxpayer's signature is defined pursuant
to section 270C.304, except that a "law administered by the commissioner" includes the
property tax laws.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2016, section 270A.03, subdivision 5, is amended to read:


Subd. 5.

Debt.

(a) "Debt" means a legal obligation of a natural person to pay a fixed and
certain amount of money, which equals or exceeds $25 and which is due and payable to a
claimant agency. The term includes criminal fines imposed under section 609.10 or 609.125,
fines imposed for petty misdemeanors as defined in section 609.02, subdivision 4a, and
restitution. A debt may arise under a contractual or statutory obligation, a court order, or
other legal obligation, but need not have been reduced to judgment.

A debt includes any legal obligation of a current recipient of assistance which is based
on overpayment of an assistance grant where that payment is based on a client waiver or
an Previous administrative Next or judicial finding of an intentional program violation; or where the debt
is owed to a program wherein the debtor is not a client at the time notification is provided
to initiate recovery under this chapter and the debtor is not a current recipient of food support,
transitional child care, or transitional medical assistance.

(b) A debt does not include any legal obligation to pay a claimant agency for medical
care, including hospitalization if the income of the debtor at the time when the medical care
was rendered does not exceed the following amount:

(1) for an unmarried debtor, an income of deleted text begin $8,800deleted text end new text begin $12,560new text end or less;

(2) for a debtor with one dependent, an income of deleted text begin $11,270deleted text end new text begin $16,080new text end or less;

(3) for a debtor with two dependents, an income of deleted text begin $13,330deleted text end new text begin $19,020new text end or less;

(4) for a debtor with three dependents, an income of deleted text begin $15,120deleted text end new text begin $21,580new text end or less;

(5) for a debtor with four dependents, an income of deleted text begin $15,950deleted text end new text begin $22,760new text end or less; and

(6) for a debtor with five or more dependents, an income of deleted text begin $16,630deleted text end new text begin $23,730new text end or less.

new text begin For purposes of this paragraph, "debtor" means the individual whose income, together
with the income of the individual's spouse, other than a separated spouse, brings the
individual within the income provisions of this paragraph. For purposes of this paragraph,
a spouse, other than a separated spouse, shall be considered a dependent.
new text end

(c) The commissioner shall adjust the income amounts in paragraph (b) by the percentage
determined pursuant to the provisions of section 1(f) of the Internal Revenue Code, except
that in section 1(f)(3)(B) the word "deleted text begin 1999deleted text end new text begin 2014new text end " shall be substituted for the word "1992."
For deleted text begin 2001deleted text end new text begin 2016new text end , the commissioner shall then determine the percent change from the 12
months ending on August 31, deleted text begin 1999deleted text end new text begin 2014new text end , to the 12 months ending on August 31, deleted text begin 2000deleted text end new text begin 2015new text end ,
and in each subsequent year, from the 12 months ending on August 31, deleted text begin 1999deleted text end new text begin 2014new text end , to the
12 months ending on August 31 of the year preceding the taxable year. The determination
of the commissioner pursuant to this subdivision shall not be considered a "rule" and shall
not be subject to the Previous Administrative Next Procedure Act contained in chapter 14. The income
amount as adjusted must be rounded to the nearest $10 amount. If the amount ends in $5,
the amount is rounded up to the nearest $10 amount.

(d) Debt also includes an agreement to pay a MinnesotaCare premium, regardless of the
dollar amount of the premium authorized under section 256L.15, subdivision 1a.

new text begin EFFECTIVE DATE. new text end

new text begin The section is effective retroactively for debts incurred after
December 31, 2014.
new text end

Sec. 3.

Minnesota Statutes 2016, section 270B.14, subdivision 1, is amended to read:


Subdivision 1.

Disclosure to commissioner of human services.

(a) On the request of
the commissioner of human services, the commissioner shall disclose return information
regarding taxes imposed by chapter 290, and claims for refunds under chapter 290A, to the
extent provided in paragraph (b) and for the purposes set forth in paragraph (c).

(b) Data that may be disclosed are limited to data relating to the identity, whereabouts,
employment, income, and property of a person owing or alleged to be owing an obligation
of child support.

(c) The commissioner of human services may request data only for the purposes of
carrying out the child support enforcement program and to assist in the location of parents
who have, or appear to have, deserted their children. Data received may be used only as set
forth in section 256.978.

(d) The commissioner shall provide the records and information necessary to administer
the supplemental housing allowance to the commissioner of human services.

(e) At the request of the commissioner of human services, the commissioner of revenue
shall electronically match the Social Security numbers and names of participants in the
telephone assistance plan operated under sections 237.69 to 237.71, with those of property
tax refund filers, and determine whether each participant's household income is within the
eligibility standards for the telephone assistance plan.

(f) The commissioner may provide records and information collected under sections
295.50 to 295.59 to the commissioner of human services for purposes of the Medicaid
Voluntary Contribution and Provider-Specific Tax Amendments of 1991, Public Law
102-234. Upon the written agreement by the United States Department of Health and Human
Services to maintain the confidentiality of the data, the commissioner may provide records
and information collected under sections 295.50 to 295.59 to the Centers for Medicare and
Medicaid Services section of the United States Department of Health and Human Services
for purposes of meeting Previous federal Next reporting requirements.

(g) The commissioner may provide records and information to the commissioner of
human services as necessary to administer the early refund of refundable tax credits.

(h) The commissioner may disclose information to the commissioner of human services
new text begin as new text end necessary deleted text begin to verify incomedeleted text end new text begin for income verificationnew text end for eligibility and premium payment
under the MinnesotaCare program, under section 256L.05, subdivision 2new text begin , as well as the
medical assistance program under chapter 256B
new text end .

(i) The commissioner may disclose information to the commissioner of human services
necessary to verify whether applicants or recipients for the Minnesota family investment
program, general assistance, food support, Minnesota supplemental aid program, and child
care assistance have claimed refundable tax credits under chapter 290 and the property tax
refund under chapter 290A, and the amounts of the credits.

(j) The commissioner may disclose information to the commissioner of human services
necessary to verify income for purposes of calculating parental contribution amounts under
section 252.27, subdivision 2a.

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2016, section 270C.30, is amended to read:


270C.30 RETURNS AND OTHER DOCUMENTS; FORMAT; FURNISHING.

new text begin Except as otherwise provided by law,new text end the commissioner shall prescribe the content deleted text begin anddeleted text end new text begin ,new text end
formatnew text begin , and mannernew text end of all returns and other forms required to be filed under a law
administered by the commissioner, and may furnish them subject to charge on application.

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2016, section 270C.33, subdivision 5, is amended to read:


Subd. 5.

Prohibition against collection during appeal period of an order.

No collection
action can be taken on an order of assessment, or any other order imposing a liability,
including the filing of liens under section 270C.63, and no late payment penalties may be
imposed when a return has been filed for the tax type and period upon which the order is
based, during the appeal period of an order. The appeal period of an order ends: (1) 60 days
after the deleted text begin order has been mailed to the taxpayerdeleted text end new text begin notice date designatednew text end by the commissionernew text begin
on the order
new text end ; (2) if an Previous administrative Next appeal is filed under section 270C.35, 60 days afternew text begin
the notice date designated by the commissioner on the written
new text end determination of the
Previous administrative Next appeal; (3) if an appeal to Tax Court is filed under chapter 271, when the
decision of the Tax Court is made; or (4) if an appeal to Tax Court is filed and the appeal
is based upon a constitutional challenge to the tax, 60 days after final determination of the
appeal. This subdivision does not apply to a jeopardy assessment under section 270C.36,
or a jeopardy collection under section 270C.36.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for orders dated after December 31,
2017.
new text end

Sec. 6.

Minnesota Statutes 2016, section 270C.33, subdivision 8, is amended to read:


Subd. 8.

Sufficiency of notice.

An assessment of tax made by the commissioner, sent
postage prepaid by United States mail to the taxpayer at the taxpayer's last known address,
or sent by electronic mail to the taxpayer's last known electronic mailing address as provided
for in section 325L.08, is sufficient even if the taxpayer is deceased or is under a legal
disability, or, in the case of a corporation, has terminated its existence, unless the
commissioner has been provided with a new address by a party authorized to receive notices
of assessment.new text begin Notice of an assessment is sufficient if it is sent on or before the notice date
designated by the commissioner on the assessment.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessments dated after December
31, 2017.
new text end

Sec. 7.

Minnesota Statutes 2016, section 270C.34, subdivision 2, is amended to read:


Subd. 2.

Procedure.

(a) A request for abatement of penalty under subdivision 1 or
section 289A.60, subdivision 4, or a request for abatement of interest or additional tax
charge, must be filed with the commissioner within 60 days of the new text begin notice new text end date new text begin of new text end the deleted text begin notice
was mailed to the taxpayer's last known address, stating that a
deleted text end penalty deleted text begin has been imposed deleted text end new text begin or
additional tax charge. For purposes of this section, "notice date" means the notice date
designated by the commissioner on the order or other notice that a penalty or additional tax
charge has been imposed
new text end .

(b) If the commissioner issues an order denying a request for abatement of penalty,
interest, or additional tax charge, the taxpayer may file an Previous administrative Next appeal as provided
in section 270C.35 or appeal to Tax Court as provided in section 271.06.

(c) If the commissioner does not issue an order on the abatement request within 60 days
from the date the request is received, the taxpayer may appeal to Tax Court as provided in
section 271.06.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for orders and notices dated after
December 31, 2017.
new text end

Sec. 8.

Minnesota Statutes 2016, section 270C.35, subdivision 3, is amended to read:


Subd. 3.

Notice date.

For purposes of this section, deleted text begin the termdeleted text end "notice date" means thenew text begin
notice
new text end date deleted text begin ofdeleted text end new text begin designated by the commissioner onnew text end the order adjusting the tax or order denying
a request for abatement, or, in the case of a denied refund, the new text begin notice new text end date deleted text begin ofdeleted text end new text begin designated by
the commissioner on
new text end the notice of denial.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for orders and notices dated after
December 31, 2017.
new text end

Sec. 9.

Minnesota Statutes 2016, section 270C.35, is amended by adding a subdivision to
read:


new text begin Subd. 11. new text end

new text begin Dismissal of Previous administrative Next appeal. new text end

new text begin If a taxpayer files an Previous administrative Next
appeal for an order of the commissioner and also files an appeal to the Tax Court for that
same order of the commissioner, the Previous administrative Next appeal is dismissed and the commissioner
is no longer required to make a determination of appeal under subdivision 6.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for all Previous administrative Next appeals filed after
June 30, 2017.
new text end

Sec. 10.

Minnesota Statutes 2016, section 270C.38, subdivision 1, is amended to read:


Subdivision 1.

Sufficient notice.

(a) If no method of notification of a written
determination or action of the commissioner is otherwise specifically provided for by law,
notice of the determination or action sent postage prepaid by United States mail to the
taxpayer or other person affected by the determination or action at the taxpayer's or person's
last known address, is sufficient. If the taxpayer or person being notified is deceased or is
under a legal disability, or, in the case of a corporation being notified that has terminated
its existence, notice to the last known address of the taxpayer, person, or corporation is
sufficient, unless the department has been provided with a new address by a party authorized
to receive notices from the commissioner.

(b) If a taxpayer or other person agrees to accept notification by electronic means, notice
of a determination or action of the commissioner sent by electronic mail to the taxpayer's
or person's last known electronic mailing address as provided for in section 325L.08 is
sufficient.

new text begin (c) Notice of a determination or action of the commissioner is sufficient if it is sent on
or before the notice date designated by the commissioner on the notice.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for notices dated after December 31,
2017.
new text end

Sec. 11.

Minnesota Statutes 2016, section 270C.445, is amended by adding a subdivision
to read:


new text begin Subd. 9. new text end

new text begin Enforcement; limitations. new text end

new text begin (a) Notwithstanding any other law, the imposition
of a penalty or any other action against a tax preparer authorized by subdivision 6 with
respect to a return may be taken by the commissioner within the period provided by section
289A.38 to assess tax on that return.
new text end

new text begin (b) Imposition of a penalty or other action against a tax preparer authorized by subdivision
6 other than with respect to a return must be taken by the commissioner within five years
of the violation of statute.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for tax preparation services provided
after the day following final enactment.
new text end

Sec. 12.

Minnesota Statutes 2016, section 270C.446, subdivision 5, is amended to read:


Subd. 5.

Removal from list.

The commissioner shall remove the name of a tax preparer
from the list of tax preparers published under this section:

(1) when the commissioner determines that the name was included on the list in error;

(2) within deleted text begin 90 daysdeleted text end new text begin three yearsnew text end after the preparer has demonstrated to the commissioner
that the preparer fully paid all finesnew text begin or penaltiesnew text end imposed, served any suspension, satisfied
any sentence imposed,new text begin successfully completed any probationary period imposed,new text end and
successfully completed any remedial actions required by the commissioner, the State Board
of Accountancy, or the Lawyers Board of Professional Responsibility; or

(3) when the commissioner has been notified that the tax preparer is deceased.

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

Minnesota Statutes 2016, section 270C.72, subdivision 4, is amended to read:


Subd. 4.

Licensing authority; duties.

All licensing authorities must require the applicant
to provide the applicant's Social Security number new text begin or individual taxpayer identification
number
new text end and Minnesota business identification numbernew text begin , as applicable,new text end on all license
applications. Upon request of the commissioner, the licensing authority must provide the
commissioner with a list of all applicants, including the name, address, business name and
address, new text begin and new text end Social Security numberdeleted text begin ,deleted text end new text begin or individual taxpayer identification numbernew text end and
business identification numbernew text begin , as applicable,new text end of each applicant. The commissioner may
request from a licensing authority a list of the applicants no more than once each calendar
year.

new text begin EFFECTIVE DATE. new text end

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

Sec. 14.

Minnesota Statutes 2016, section 271.06, subdivision 2, is amended to read:


Subd. 2.

Time; notice; intervention.

Except as otherwise provided by law, within 60
days after new text begin the new text end notice deleted text begin of the making and filingdeleted text end new text begin datenew text end of an order of the commissioner of revenue,
the appellant, or the appellant's attorney, shall serve a notice of appeal upon the commissioner
and file the original, with proof of such service, with the Tax Court administrator or with
the court administrator of district court acting as court administrator of the Tax Court;
provided, that the Tax Court, for cause shown, may by written order extend the time for
appealing for an additional period not exceeding 30 days.new text begin For purposes of this section,
"notice date" means the notice date designated by the commissioner on the order.
new text end The notice
of appeal shall be in the form prescribed by the Tax Court. Within five days after receipt,
the commissioner shall transmit a copy of the notice of appeal to the attorney general. The
attorney general shall represent the commissioner, if requested, upon all such appeals except
in cases where the attorney general has appealed in behalf of the state, or in other cases
where the attorney general deems it against the interests of the state to represent the
commissioner, in which event the attorney general may intervene or be substituted as an
appellant in behalf of the state at any stage of the proceedings.

Upon a final determination of any other matter over which the court is granted jurisdiction
under section 271.01, subdivision 5, the taxpayer or the taxpayer's attorney shall file a
petition or notice of appeal as provided by law with the court administrator of district court,
acting in the capacity of court administrator of the Tax Court, with proof of service of the
petition or notice of appeal as required by law and within the time required by law. As used
in this subdivision, "final determination" includes a notice of assessment and equalization
for the year in question received from the local assessor, an order of the local board of
equalization, or an order of a county board of equalization.

The Tax Court shall prescribe a filing system so that the notice of appeal or petition filed
with the district court administrator acting as court administrator of the Tax Court is
forwarded to the Tax Court administrator. In the case of an appeal or a petition concerning
property valuation for which the assessor, a local board of equalization, a county board of
equalization or the commissioner of revenue has issued an order, the officer issuing the
order shall be notified of the filing of the appeal. The notice of appeal or petition shall be
in the form prescribed by the Tax Court.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for orders dated after December 31,
2017.
new text end

Sec. 15.

Minnesota Statutes 2016, section 271.06, subdivision 7, is amended to read:


Subd. 7.

Rules.

Except as provided in section 278.05, subdivision 6, the Rules of
Evidence and Civil Procedure for the district court of Minnesota shall govern the procedures
in the Tax Court, where practicable. new text begin The Rules of Civil Procedure do not apply to alter the
60-day period of time to file a notice of appeal provided in subdivision 2.
new text end The Tax Court
may adopt rules under chapter 14.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for orders dated after December 31,
2017.
new text end

Sec. 16.

Minnesota Statutes 2016, section 272.02, subdivision 10, is amended to read:


Subd. 10.

Personal property used for pollution control.

Personal property used
primarily for the abatement and control of air, water, or land pollution is exempt to the
extent that it is so used, and real property is exempt if it is used primarily for abatement and
control of air, water, or land pollution as part of an agricultural operation, as a part of a
centralized treatment and recovery facility operating under a permit issued by the Minnesota
Pollution Control Agency pursuant to chapters 115 and 116 and Minnesota Rules, parts
7001.0500 to 7001.0730, and 7045.0020 to 7045.1030, as a wastewater treatment facility
and for the treatment, recovery, and stabilization of metals, oils, chemicals, water, sludges,
or inorganic materials from hazardous industrial wastes, or as part of an electric generation
system. For purposes of this subdivision, personal property includes ponderous machinery
and equipment used in a business or production activity that at common law is considered
real property.

Any taxpayer requesting exemption of all or a portion of any real property or any
equipment or device, or part thereof, operated primarily for the control or abatement of air,
water, or land pollution shall file an application with the commissioner of revenue. The
commissioner shall develop an electronic means to notify interested parties when electric
power generation facilities have filed an application.new text begin The commissioner shall prescribe the
content, format, and manner of the application pursuant to section 270C.30, except that a
"law administered by the commissioner" includes the property tax laws, and if an application
is made by electronic means, the taxpayer's signature is defined pursuant to section 270C.304,
except that a "law administered by the commissioner" includes the property tax laws.
new text end The
Minnesota Pollution Control Agency shall upon request of the commissioner furnish
information and advice to the commissioner.

The information and advice furnished by the Minnesota Pollution Control Agency must
include statements as to whether the equipment, device, or real property meets a standard,
rule, criteria, guideline, policy, or order of the Minnesota Pollution Control Agency, and
whether the equipment, device, or real property is installed or operated in accordance with
it. On determining that property qualifies for exemption, the commissioner shall issue an
order exempting the property from taxation. The commissioner shall develop an electronic
means to notify interested parties when the commissioner has issued an order exempting
property from taxation under this subdivision. The equipment, device, or real property shall
continue to be exempt from taxation as long as the order issued by the commissioner remains
in effect.

new text begin EFFECTIVE DATE. new text end

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

Sec. 17.

Minnesota Statutes 2016, section 272.0211, subdivision 1, is amended to read:


Subdivision 1.

Efficiency determination and certification.

An owner or operator of a
new or existing electric power generation facility, excluding wind energy conversion systems,
may apply to the commissioner of revenue for a market value exclusion on the property as
provided for in this section. This exclusion shall apply only to the market value of the
equipment of the facility, and shall not apply to the structures and the land upon which the
facility is located. The commissioner of revenue shall prescribe the deleted text begin forms deleted text end new text begin content, format,
manner,
new text end and procedures for this applicationnew text begin pursuant to section 270C.30, except that a "law
administered by the commissioner" includes the property tax laws. If an application is made
by electronic means, the taxpayer's signature is defined pursuant to section 270C.304, except
that a "law administered by the commissioner" includes the property tax laws
new text end . Upon receiving
the application, the commissioner of revenue shall: (1) request the commissioner of commerce
to make a determination of the efficiency of the applicant's electric power generation facility;
and (2) shall develop an electronic means to notify interested parties when electric power
generation facilities have filed an application. The commissioner of commerce shall calculate
efficiency as the ratio of useful energy outputs to energy inputs, expressed as a percentage,
based on the performance of the facility's equipment during normal full load operation. The
commissioner must include in this formula the energy used in any on-site preparation of
materials necessary to convert the materials into the fuel used to generate electricity, such
as a process to gasify petroleum coke. The commissioner shall use the Higher Heating Value
(HHV) for all substances in the commissioner's efficiency calculations, except for wood
for fuel in a biomass-eligible project under section 216B.2424; for these instances, the
commissioner shall adjust the heating value to allow for energy consumed for evaporation
of the moisture in the wood. The applicant shall provide the commissioner of commerce
with whatever information the commissioner deems necessary to make the determination.
Within 30 days of the receipt of the necessary information, the commissioner of commerce
shall certify the findings of the efficiency determination to the commissioner of revenue
and to the applicant. The commissioner of commerce shall determine the efficiency of the
facility and certify the findings of that determination to the commissioner of revenue every
two years thereafter from the date of the original certification.

new text begin EFFECTIVE DATE. new text end

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

Sec. 18.

Minnesota Statutes 2016, section 272.025, subdivision 1, is amended to read:


Subdivision 1.

Statement of exemption.

(a) Except in the case of property owned by
the state of Minnesota or any political subdivision thereof, and property exempt from taxation
under section 272.02, subdivisions 9, 10, 13, 15, 18, 20, and 22 to 25, and at the times
provided in subdivision 3, a taxpayer claiming an exemption from taxation on property
described in section 272.02, subdivisions 2 to 33, must file a statement of exemption with
the assessor of the assessment district in which the property is located.

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

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

(d) The commissioner of revenue shall prescribe the deleted text begin form and contentsdeleted text end new text begin content, format,
and manner
new text end of the statement of exemptionnew text begin pursuant to section 270C.30, except that a "law
administered by the commissioner" includes the property tax laws
new text end .

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 19.

Minnesota Statutes 2016, section 272.029, subdivision 4, is amended to read:


Subd. 4.

Reports.

(a) An owner of a wind energy conversion system subject to tax under
subdivision 3 shall file a report with the commissioner of revenue annually on or before
deleted text begin February 1deleted text end new text begin January 15new text end detailing the amount of electricity in kilowatt-hours that was produced
by the wind energy conversion system for the previous calendar year. The commissioner
shall prescribe the deleted text begin formdeleted text end new text begin content, format, and mannernew text end of the reportnew text begin pursuant to section
270C.30, except that a "law administered by the commissioner" includes the property tax
laws
new text end . The report must contain the information required by the commissioner to determine
the tax due to each county under this section for the current year. If an owner of a wind
energy conversion system subject to taxation under this section fails to file the report by
the due date, the commissioner of revenue shall determine the tax based upon the nameplate
capacity of the system multiplied by a capacity factor of 60 percent.

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

deleted text begin (b)deleted text end new text begin (c)new text end On or before February 28, the commissioner of revenue shall notify the owner
of the wind energy conversion systems of the tax due to each county for the current year
and shall certify to the county auditor of each county in which the systems are located the
tax due from each owner for the current year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment, except
that the amendment in paragraph (a) moving the date to file the report is effective for reports
filed in 2018 and thereafter.
new text end

Sec. 20.

Minnesota Statutes 2016, section 272.0295, subdivision 4, is amended to read:


Subd. 4.

Reports.

An owner of a solar energy generating system subject to tax under
this section shall file a report with the commissioner of revenue annually on or before
January 15 detailing the amount of electricity in megawatt-hours that was produced by the
system in the previous calendar year. The commissioner shall prescribe the deleted text begin form deleted text end new text begin content,
format, and manner
new text end of the reportnew text begin pursuant to section 270C.30new text end . The report must contain the
information required by the commissioner to determine the tax due to each county under
this section for the current year. If an owner of a solar energy generating system subject to
taxation under this section fails to file the report by the due date, the commissioner of
revenue shall determine the tax based upon the nameplate capacity of the system multiplied
by a capacity factor of 30 percent.

new text begin EFFECTIVE DATE. new text end

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

Sec. 21.

Minnesota Statutes 2016, section 272.115, subdivision 2, is amended to read:


Subd. 2.

Form; information required.

The certificate of value shall require such facts
and information as may be determined by the commissioner to be reasonably necessary in
the administration of the state education aid formulas. The deleted text begin form deleted text end new text begin commissioner shall prescribe
the content, format, and manner
new text end of the certificate of value deleted text begin shall be prescribed by the
Department of Revenue which shall provide an adequate supply of forms to each county
auditor
deleted text end new text begin pursuant to section 270C.30, except that a "law administered by the commissioner"
includes the property tax laws
new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 22.

Minnesota Statutes 2016, section 273.124, subdivision 13, is amended to read:


Subd. 13.

Homestead application.

(a) A person who meets the homestead requirements
under subdivision 1 must file a homestead application with the county assessor to initially
obtain homestead classification.

(b) deleted text begin The format and contents of a uniform homestead application shall be prescribed by
the commissioner of revenue.
deleted text end new text begin The commissioner shall prescribe the content, format, and
manner of the homestead application required to be filed under this chapter pursuant to
section 270C.30.
new text end The application must clearly inform the taxpayer that this application must
be signed by all owners who occupy the property or by the qualifying relative and returned
to the county assessor in order for the property to receive homestead treatment.

(c) Every property owner applying for homestead classification must furnish to the
county assessor the Social Security number of each occupant who is listed as an owner of
the property on the deed of record, the name and address of each owner who does not occupy
the property, and the name and Social Security number of each owner's spouse who occupies
the property. The application must be signed by each owner who occupies the property and
by each owner's spouse who occupies the property, or, in the case of property that qualifies
as a homestead under subdivision 1, paragraph (c), by the qualifying relative.

If a property owner occupies a homestead, the property owner's spouse may not claim
another property as a homestead unless the property owner and the property owner's spouse
file with the assessor an affidavit or other proof required by the assessor stating that the
property qualifies as a homestead under subdivision 1, paragraph (e).

Owners or spouses occupying residences owned by their spouses and previously occupied
with the other spouse, either of whom fail to include the other spouse's name and Social
Security number on the homestead application or provide the affidavits or other proof
requested, will be deemed to have elected to receive only partial homestead treatment of
their residence. The remainder of the residence will be classified as nonhomestead residential.
When an owner or spouse's name and Social Security number appear on homestead
applications for two separate residences and only one application is signed, the owner or
spouse will be deemed to have elected to homestead the residence for which the application
was signed.

(d) If residential real estate is occupied and used for purposes of a homestead by a relative
of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in order for
the property to receive homestead status, a homestead application must be filed with the
assessor. The Social Security number of each relative and spouse of a relative occupying
the property shall be required on the homestead application filed under this subdivision. If
a different relative of the owner subsequently occupies the property, the owner of the property
must notify the assessor within 30 days of the change in occupancy. The Social Security
number of a relative or relative's spouse occupying the property is private data on individuals
as defined by section 13.02, subdivision 12, but may be disclosed to the commissioner of
revenue, or, for the purposes of proceeding under the Revenue Recapture Act to recover
personal property taxes owing, to the county treasurer.

(e) The homestead application shall also notify the property owners that if the property
is granted homestead status for any assessment year, that same property shall remain
classified as homestead until the property is sold or transferred to another person, or the
owners, the spouse of the owner, or the relatives no longer use the property as their
homestead. Upon the sale or transfer of the homestead property, a certificate of value must
be timely filed with the county auditor as provided under section 272.115. Failure to notify
the assessor within 30 days that the property has been sold, transferred, or that the owner,
the spouse of the owner, or the relative is no longer occupying the property as a homestead,
shall result in the penalty provided under this subdivision and the property will lose its
current homestead status.

(f) If a homestead application has not been filed with the county by December 15, the
assessor shall classify the property as nonhomestead for the current assessment year for
taxes payable in the following year, provided that the owner may be entitled to receive the
homestead classification by proper application under section 375.192.

new text begin EFFECTIVE DATE. new text end

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

Sec. 23.

Minnesota Statutes 2016, section 273.371, is amended to read:


273.371 REPORTS OF UTILITY COMPANIES.

Subdivision 1.

Report required.

Every electric light, power, gas, water, express, stage,
deleted text begin anddeleted text end transportation deleted text begin companydeleted text end new text begin ,new text end and pipelinenew text begin companynew text end doing business in Minnesota shall
annually file with the commissioner on or before March 31 a report under oath setting forth
the information prescribed by the commissioner to enable the commissioner to make
valuations, recommended valuations, and equalization required under sections 273.33,
273.35, 273.36, 273.37, and 273.3711.new text begin The commissioner shall prescribe the content, format,
and manner of the report pursuant to section 270C.30, except that a "law administered by
the commissioner" includes the property tax laws.
new text end If all the required information is not
available on March 31, the company or pipeline shall file the information that is available
on or before March 31, and the balance of the information as soon as it becomes available.new text begin
If a report is made by electronic means, the taxpayer's signature is defined pursuant to section
270C.304, except that a "law administered by the commissioner" includes the property tax
laws.
new text end

Subd. 2.

Extension.

The commissioner for good cause may extend the time for filing
the report required by subdivision 1. The extension deleted text begin maydeleted text end new text begin mustnew text end not exceed 15 days.

new text begin Subd. 3. new text end

new text begin Reports filed by the commissioner. new text end

new text begin If a company fails to file a report required
by subdivision 1, the commissioner may, from information in the commissioner's possession
or obtainable by the commissioner, make and file a report for the company or make the
valuations, recommended valuations, and equalizations required under sections 273.33,
273.35 to 273.37, and 273.3711.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 24.

Minnesota Statutes 2016, section 287.2205, is amended to read:


287.2205 TAX-FORFEITED LAND.

Before a state deed for tax-forfeited land may be issued, the deed tax must be paid by
the purchaser of tax-forfeited land whether the purchase is the result of a public auction or
private sale or a repurchase of tax-forfeited land. State agencies and local units of government
that acquire tax-forfeited land by purchase or any other means are subject to this section.
The deed tax is $1.65 for a conveyance of tax-forfeited lands to a governmental subdivision
for an authorized public use under section 282.01, subdivision 1a,new text begin for a school forest under
section 282.01, subdivision 1a,
new text end or for redevelopment purposes under section 282.01,
subdivision 1b
.

new text begin EFFECTIVE DATE. new text end

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

Sec. 25.

Minnesota Statutes 2016, section 289A.08, is amended by adding a subdivision
to read:


new text begin Subd. 17. new text end

new text begin Format. new text end

new text begin The commissioner shall prescribe the content, format, and manner
of the returns and other documents pursuant to section 270C.30. This does not authorize
the commissioner to require individual income taxpayers to file individual income tax returns
electronically.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 26.

Minnesota Statutes 2016, section 289A.09, subdivision 1, is amended to read:


Subdivision 1.

Returns.

(a) An employer who is required to deduct and withhold tax
under section 290.92, subdivision 2a or 3, and a person required to deduct and withhold tax
under section 290.923, subdivision 2, must file a return with the commissioner for each
quarterly period unless otherwise prescribed by the commissioner.

(b) A person or corporation required to make deposits under section 290.9201, subdivision
8
, must file an entertainer withholding tax return with the commissioner.

(c) A person required to withhold an amount under section 290.9705, subdivision 1,
must file a return.

(d) A partnership required to deduct and withhold tax under section 290.92, subdivision
4b
, must file a return.

(e) An S corporation required to deduct and withhold tax under section 290.92,
subdivision 4c
, must also file a return.

(f) deleted text begin Returns must be filed in the form and manner, and contain the information prescribed
by the commissioner.
deleted text end new text begin The commissioner shall prescribe the content, format, and manner
of the returns pursuant to section 270C.30.
new text end Every return for taxes withheld must be signed
by the employer, entertainment entity, contract payor, partnership, or S corporation, or a
designee.

new text begin EFFECTIVE DATE. new text end

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

Sec. 27.

Minnesota Statutes 2016, section 289A.11, subdivision 1, is amended to read:


Subdivision 1.

Return required.

(a) Except as provided in section 289A.18, subdivision
4
, for the month in which taxes imposed by chapter 297A are payable, or for which a return
is due, a return for the preceding reporting period must be filed with the commissioner deleted text begin in
the form and manner the commissioner prescribes
deleted text end . new text begin The commissioner shall prescribe the
content, format, and manner of the returns pursuant to section 270C.30.
new text end A person making
sales at retail at two or more places of business may file a consolidated return subject to
rules prescribed by the commissioner. In computing the dollar amount of items on the return,
the amounts are rounded off to the nearest whole dollar, disregarding amounts less than 50
cents and increasing amounts of 50 cents to 99 cents to the next highest dollar.

(b) Notwithstanding this subdivision, a person who is not required to hold a sales tax
permit under chapter 297A and who makes annual purchases, for use in a trade or business,
of less than $18,500, or a person who is not required to hold a sales tax permit and who
makes purchases for personal use, that are subject to the use tax imposed by section 297A.63,
may file an annual use tax return deleted text begin on a form prescribed by the commissionerdeleted text end . new text begin The
commissioner shall prescribe the content, format, and manner of the return pursuant to
section 270C.30.
new text end If a person who qualifies for an annual use tax reporting period is required
to obtain a sales tax permit or makes use tax purchases, for use in a trade or business, in
excess of $18,500 during the calendar year, the reporting period must be considered ended
at the end of the month in which the permit is applied for or the purchase in excess of
$18,500 is made and a return must be filed for the preceding reporting period.

(c) Notwithstanding deleted text begin paragraphdeleted text end new text begin paragraphsnew text end (a)new text begin and (b)new text end , a person prohibited by the person's
religious beliefs from using electronics shall be allowed to file by mail, without any additional
fees. The filer must notify the commissioner of revenue of the intent to file by mail on a
form prescribed by the commissioner. A return filed under this paragraph must be postmarked
no later than the day the return is due in order to be considered filed on a timely basis.

new text begin EFFECTIVE DATE. new text end

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

Sec. 28.

Minnesota Statutes 2016, section 289A.18, subdivision 1, is amended to read:


Subdivision 1.

Individual income, fiduciary income, corporate franchise, and
entertainment taxes; partnership and S corporation returns; information returns;
mining company returns.

The returns required to be made under sections 289A.08 and
289A.12 must be filed at the following times:

(1) returns made on the basis of the calendar year must be filed on April 15 following
the close of the calendar year, except that returns of corporationsnew text begin and partnershipsnew text end must be
filed on the due date for filing the Previous federal Next income tax return;

(2) returns made on the basis of the fiscal year must be filed on the 15th day of the fourth
month following the close of the fiscal year, except that returns of corporationsnew text begin and
partnerships
new text end must be filed on the due date for filing the Previous federal Next income tax return;

(3) returns for a fractional part of a year must be filed on the due date for filing the
Previous federal Next income tax return;

(4) in the case of a final return of a decedent for a fractional part of a year, the return
must be filed on the 15th day of the fourth month following the close of the 12-month period
that began with the first day of that fractional part of a year;

(5) in the case of the return of a cooperative association, returns must be filed on or
before the 15th day of the ninth month following the close of the taxable year;

(6) if a corporation has been divested from a unitary group and files a return for a
fractional part of a year in which it was a member of a unitary business that files a combined
report under section 290.17, subdivision 4, the divested corporation's return must be filed
on the 15th day of the third month following the close of the common accounting period
that includes the fractional year;

(7) returns of entertainment entities must be filed on April 15 following the close of the
calendar year;

(8) returns required to be filed under section 289A.08, subdivision 4, must be filed on
the 15th day of the fifth month following the close of the taxable year;

(9) returns of mining companies must be filed on May 1 following the close of the
calendar year; and

(10) returns required to be filed with the commissioner under section 289A.12,
subdivision 2
, 4 to 10, or 16 must be filed within 30 days after being demanded by the
commissioner.

new text begin EFFECTIVE DATE. new text end

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

Sec. 29.

Minnesota Statutes 2016, section 289A.37, subdivision 2, is amended to read:


Subd. 2.

Erroneous refunds.

deleted text begin An erroneous refund is considered an underpayment of
tax on the date made. An assessment of a deficiency arising out of an erroneous refund may
be made at any time within two years from the making of the refund. If part of the refund
was induced by fraud or misrepresentation of a material fact, the assessment may be made
at any time.
deleted text end new text begin (a) Except as provided in paragraph (b), an erroneous refund occurs when the
commissioner issues a payment to a person that exceeds the amount the person is entitled
to receive under law. An erroneous refund is considered an underpayment of tax on the date
issued.
new text end

new text begin (b) To the extent that the amount paid does not exceed the amount claimed by the
taxpayer, an erroneous refund does not include the following:
new text end

new text begin (1) any amount of a refund or credit paid pursuant to a claim for refund filed by a
taxpayer, including but not limited to refunds of claims made under section 290.06,
subdivision 23; 290.067; 290.0671; 290.0672; 290.0674; 290.0675; 290.0677; 290.068;
290.0681; or 290.0692; or chapter 290A; or
new text end

new text begin (2) any amount paid pursuant to a claim for refund of an overpayment of tax filed by a
taxpayer.
new text end

new text begin (c) The commissioner may make an assessment to recover an erroneous refund at any
time within two years from the issuance of the erroneous refund. If all or part of the erroneous
refund was induced by fraud or misrepresentation of a material fact, the assessment may
be made at any time.
new text end

new text begin (d) Assessments of amounts that are not erroneous refunds under paragraph (b) must be
conducted under section 289A.38.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to all refunds issued after that date. Notwithstanding any law to the contrary, the
changes in this section do not invalidate any assessments made by the commissioner prior
to this effective date.
new text end

Sec. 30.

Minnesota Statutes 2016, section 289A.50, subdivision 7, is amended to read:


Subd. 7.

Remedies.

(a) If the taxpayer is notified by the commissioner that the refund
claim is denied in whole or in part, the taxpayer may:

(1) file an Previous administrative Next appeal as provided in section 270C.35, or an appeal with the
Tax Court, within 60 days after deleted text begin issuancedeleted text end new text begin the notice datenew text end of the commissioner's notice of
denial; or

(2) file an action in the district court to recover the refund.

(b) An action in the district court on a denied claim for refund must be brought within
18 months of the new text begin notice new text end date of the denial of the claim by the commissioner.new text begin For the purposes
of this section, "notice date" has the meaning given in section 270C.35, subdivision 3.
new text end

(c) No action in the district court or the Tax Court shall be brought within six months
of the filing of the refund claim unless the commissioner denies the claim within that period.

(d) If a taxpayer files a claim for refund and the commissioner has not issued a denial
of the claim, the taxpayer may bring an action in the district court or the Tax Court at any
time after the expiration of six months from the time the claim was filed.

(e) The commissioner and the taxpayer may agree to extend the period for bringing an
action in the district court.

(f) An action for refund of tax by the taxpayer must be brought in the district court of
the district in which lies the county of the taxpayer's residence or principal place of business.
In the case of an estate or trust, the action must be brought at the principal place of its
administration. Any action may be brought in the district court for Ramsey County.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims for refund denied after
December 31, 2017.
new text end

Sec. 31.

new text begin [290B.11] FORMS.
new text end

new text begin The commissioner shall prescribe the content, format, and manner of all forms and other
documents required to be filed under this chapter pursuant to section 270C.30.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 32.

new text begin [293.15] FORMS.
new text end

new text begin The commissioner shall prescribe the content, format, and manner of all forms and other
documents required to be filed under this chapter pursuant to section 270C.30.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 33.

Minnesota Statutes 2016, section 295.55, subdivision 6, is amended to read:


Subd. 6.

Form of returns.

deleted text begin The estimated payments and annual return must contain the
information and be in the form prescribed by the commissioner.
deleted text end new text begin The commissioner shall
prescribe the content, format, and manner of the estimated payment forms and annual return
pursuant to section 270C.30.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 34.

Minnesota Statutes 2016, section 296A.02, is amended by adding a subdivision
to read:


new text begin Subd. 5. new text end

new text begin Forms. new text end

new text begin The commissioner shall prescribe the content, format, and manner of
all forms and other documents required to be filed under this chapter pursuant to section
270C.30.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 35.

Minnesota Statutes 2016, section 296A.22, subdivision 9, is amended to read:


Subd. 9.

Abatement of penalty.

(a) The commissioner may by written order abate any
penalty imposed under this section, if in the commissioner's opinion there is reasonable
cause to do so.

(b) A request for abatement of penalty must be filed with the commissioner within 60
days of the new text begin notice new text end date new text begin of new text end the deleted text begin notice stating that adeleted text end penalty deleted text begin has been imposed was mailed to
the taxpayer's last known address
deleted text end .new text begin For purposes of this section, "notice date" means the
notice date designated by the commissioner on the order or other notice that a penalty has
been imposed.
new text end

(c) If the commissioner issues an order denying a request for abatement of penalty, the
taxpayer may file an Previous administrative Next appeal as provided in section 270C.35 or appeal to Tax
Court as provided in section 271.06. If the commissioner does not issue an order on the
abatement request within 60 days from the date the request is received, the taxpayer may
appeal to Tax Court as provided in section 271.06.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for orders and notices dated after
December 31, 2017.
new text end

Sec. 36.

Minnesota Statutes 2016, section 296A.26, is amended to read:


296A.26 JUDICIAL REVIEW; APPEAL TO TAX COURT.

In lieu of an Previous administrative Next appeal under section 270C.35, any person aggrieved by an
order of the commissioner fixing a tax, penalty, or interest under this chapter may, within
60 days from the new text begin notice new text end date of deleted text begin the notice ofdeleted text end the order, appeal to the Tax Court in the manner
provided under section 271.06.new text begin For purposes of this section, "notice date" means the notice
date designated by the commissioner on the order fixing a tax, penalty, or interest.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for orders dated after December 31,
2017.
new text end

Sec. 37.

Minnesota Statutes 2016, section 297D.02, is amended to read:


297D.02 ADMINISTRATION.

The commissioner of revenue shall administer this chapter.new text begin The commissioner shall
prescribe the content, format, and manner of all forms and other documents required to be
filed under this chapter pursuant to section 270C.30.
new text end Payments required by this chapter
must be made to the commissioner on the form provided by the commissioner. Tax obligors
are not required to give their name, address, Social Security number, or other identifying
information on the form. The commissioner shall collect all taxes under this chapter.

new text begin EFFECTIVE DATE. new text end

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

Sec. 38.

Minnesota Statutes 2016, section 297E.02, subdivision 3, is amended to read:


Subd. 3.

Collection; disposition.

(a) Taxes imposed by this section are due and payable
to the commissioner when the gambling tax return is required to be filed. Distributors must
file their monthly sales figures with the commissioner on a form prescribed by the
commissioner. Returns covering the taxes imposed under this section must be filed with
the commissioner on or before the 20th day of the month following the close of the previous
calendar month. deleted text begin The commissioner may require that the returns be filed via magnetic media
or electronic data transfer.
deleted text end new text begin The commissioner shall prescribe the content, format, and manner
of returns or other documents pursuant to section 270C.30.
new text end The proceeds, along with the
revenue received from all license fees and other fees under sections 349.11 to 349.191,
349.211, and 349.213, must be paid to the commissioner of management and budget for
deposit in the general fund.

(b) The sales tax imposed by chapter 297A on the sale of pull-tabs and tipboards by the
distributor is imposed on the retail sales price. The retail sale of pull-tabs or tipboards by
the organization is exempt from taxes imposed by chapter 297A and is exempt from all
local taxes and license fees except a fee authorized under section 349.16, subdivision 8.

(c) One-half of one percent of the revenue deposited in the general fund under paragraph
(a), is appropriated to the commissioner of human services for the compulsive gambling
treatment program established under section 245.98. One-half of one percent of the revenue
deposited in the general fund under paragraph (a), is appropriated to the commissioner of
human services for a grant to the state affiliate recognized by the National Council on
Problem Gambling to increase public awareness of problem gambling, education and training
for individuals and organizations providing effective treatment services to problem gamblers
and their families, and research relating to problem gambling. Money appropriated by this
paragraph must supplement and must not replace existing state funding for these programs.

new text begin EFFECTIVE DATE. new text end

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

Sec. 39.

Minnesota Statutes 2016, section 297E.04, subdivision 1, is amended to read:


Subdivision 1.

Reports of sales.

A manufacturer who sells gambling product for use or
resale in this state, or for receipt by a person or entity in this state, shall file with the
commissioner, on a form prescribed by the commissioner, a report of gambling product
sold to any person in the state, including the established governing body of an Indian tribe
recognized by the United States Department of the Interior. The report must be filed monthly
on or before the 20th day of the month succeeding the month in which the sale was made.
deleted text begin The commissioner may require that the report be submitted via magnetic media or electronic
data transfer.
deleted text end new text begin The commissioner shall prescribe the content, format, and manner of returns
or other documents pursuant to section 270C.30.
new text end The commissioner may inspect the premises,
books, records, and inventory of a manufacturer without notice during the normal business
hours of the manufacturer. A person violating this section is guilty of a misdemeanor.

new text begin EFFECTIVE DATE. new text end

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

Sec. 40.

Minnesota Statutes 2016, section 297E.05, subdivision 4, is amended to read:


Subd. 4.

Reports.

A distributor shall report monthly to the commissioner, on a form the
commissioner prescribes, its sales of each type of gambling product. This report must be
filed monthly on or before the 20th day of the month succeeding the month in which the
sale was made. deleted text begin The commissioner may require that a distributor submit the monthly report
and invoices required in this subdivision via magnetic media or electronic data transfer.
deleted text end new text begin
The commissioner shall prescribe the content, format, and manner of returns or other
documents pursuant to section 270C.30.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 41.

Minnesota Statutes 2016, section 297E.06, subdivision 1, is amended to read:


Subdivision 1.

Reports.

An organization must file with the commissioner, on a form
prescribed by the commissioner, a report showing all gambling activity conducted by that
organization for each month. Gambling activity includes all gross receipts, prizes, all
gambling taxes owed or paid to the commissioner, all gambling expenses, and all lawful
purpose and board-approved expenditures. The report must be filed with the commissioner
on or before the 20th day of the month following the month in which the gambling activity
takes place. deleted text begin The commissioner may require that the reports be filed via magnetic media or
electronic data transfer.
deleted text end new text begin The commissioner shall prescribe the content, format, and manner
of returns or other documents pursuant to section 270C.30.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 42.

Minnesota Statutes 2016, section 297F.09, subdivision 1, is amended to read:


Subdivision 1.

Monthly return; cigarette distributor.

On or before the 18th day of
each calendar month, a distributor with a place of business in this state shall file a return
with the commissioner showing the quantity of cigarettes manufactured or brought in from
outside the state or purchased during the preceding calendar month and the quantity of
cigarettes sold or otherwise disposed of in this state and outside this state during that month.
A licensed distributor outside this state shall in like manner file a return showing the quantity
of cigarettes shipped or transported into this state during the preceding calendar month.
deleted text begin Returns must be made in the form and manner prescribed by deleted text end The commissioner new text begin shall
prescribe the content, format, and manner of returns pursuant to section 270C.30,
new text end and new text begin the
returns
new text end must contain any other information required by the commissioner. The return must
be accompanied by a remittance for the full unpaid tax liability shown by it. For distributors
subject to the accelerated tax payment requirements in subdivision 10, the return for the
May liability is due two business days before June 30th of the year and the return for the
June liability is due on or before August 18th of the year.

new text begin EFFECTIVE DATE. new text end

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

Sec. 43.

Minnesota Statutes 2016, section 297F.23, is amended to read:


297F.23 JUDICIAL REVIEW.

In lieu of an Previous administrative Next appeal under section 270C.35, a person aggrieved by an
order of the commissioner fixing a tax, penalty, or interest under this chapter may, within
60 days from the new text begin notice new text end date of deleted text begin the notice ofdeleted text end the order, appeal to the Tax Court in the manner
provided under section 271.06.new text begin For purposes of this section, "notice date" means the notice
date designated by the commissioner on the order fixing a tax, penalty, or interest.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for orders dated after December 31,
2017.
new text end

Sec. 44.

Minnesota Statutes 2016, section 297G.09, subdivision 1, is amended to read:


Subdivision 1.

Monthly returns; manufacturers, wholesalers, brewers, or importers.

On or before the 18th day of each calendar month following the month in which a licensed
manufacturer or wholesaler first sells wine and distilled spirits within the state, or a brewer
or importer first sells or imports fermented malt beverages, or a wholesaler knowingly
acquires title to or possession of untaxed fermented malt beverages, the licensed
manufacturer, wholesaler, brewer, or importer liable for the excise tax must file a return
with the commissioner, and in addition must keep records and render reports as required
by the commissioner. deleted text begin Returns must be made in a form and manner prescribed by the
commissioner, and
deleted text end new text begin The commissioner shall prescribe the content, format, and manner of
returns pursuant to section 270C.30. The returns
new text end must contain any other information required
by the commissioner. Returns must be accompanied by a remittance for the full unpaid tax
liability. Returns must be filed regardless of whether a tax is due.

new text begin EFFECTIVE DATE. new text end

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

Sec. 45.

Minnesota Statutes 2016, section 297G.22, is amended to read:


297G.22 JUDICIAL REVIEW.

In lieu of an Previous administrative Next appeal under this chapter, a person aggrieved by an order of
the commissioner fixing a tax, penalty, or interest under this chapter may, within 60 days
from deleted text begin the date ofdeleted text end the notice new text begin date new text end of the order, appeal to the Tax Court in the manner provided
under section 271.06.new text begin For purposes of this section, "notice date" means the notice date
designated by the commissioner on the order fixing a tax, penalty, or interest.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for orders dated after December 31,
2017.
new text end

Sec. 46.

Minnesota Statutes 2016, section 297I.30, is amended by adding a subdivision
to read:


new text begin Subd. 11. new text end

new text begin Format. new text end

new text begin The commissioner shall prescribe the content, format, and manner
of returns or other documents pursuant to section 270C.30.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 47.

Minnesota Statutes 2016, section 297I.60, subdivision 2, is amended to read:


Subd. 2.

Remedies.

(a) If the taxpayer is notified that the refund claim is denied in whole
or in part, the taxpayer may contest the denial by:

(1) filing an Previous administrative Next appeal with the commissioner under section 270C.35;

(2) filing an appeal in Tax Court within 60 days of the new text begin notice new text end date of the deleted text begin notice of deleted text end denial;
or

(3) filing an action in the district court to recover the refund.

(b) An action in the district court must be brought within 18 months deleted text begin followingdeleted text end new text begin ofnew text end the
new text begin notice new text end date of the deleted text begin notice ofdeleted text end denial.new text begin For purposes of this section, "notice date" has the meaning
given in section 270C.35, subdivision 3.
new text end An action for refund of tax or surcharge must be
brought in the district court of the district in which lies the taxpayer's principal place of
business or in the District Court for Ramsey County. If a taxpayer files a claim for refund
and the commissioner has not issued a denial of the claim, the taxpayer may bring an action
in the district court or the Tax Court at any time after the expiration of six months from the
time the claim was filed.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims for refund denied after
December 31, 2017.
new text end

Sec. 48.

Minnesota Statutes 2016, section 469.319, subdivision 5, is amended to read:


Subd. 5.

Waiver authority.

(a) The commissioner may waive all or part of a repayment
required under subdivision 1, if the commissioner, in consultation with the commissioner
of employment and economic development and appropriate officials from the local
government units in which the qualified business is located, determines that requiring
repayment of the tax is not in the best interest of the state or the local government units and
the business ceased operating as a result of circumstances beyond its control including, but
not limited to:

(1) a natural disaster;

(2) unforeseen industry trends; or

(3) loss of a major supplier or customer.

(b)(1) The commissioner shall waive repayment required under subdivision 1a if the
commissioner has waived repayment by the operating business under subdivision 1, unless
the person that received benefits without having to operate a business in the zone was a
contributing factor in the qualified business becoming subject to repayment under subdivision
1;

(2) the commissioner shall waive the repayment required under subdivision 1a, even if
the repayment has not been waived for the operating business if:

(i) the person that received benefits without having to operate a business in the zone and
the business that operated in the zone are not related parties as defined in section 267(b) of
the Internal Revenue Code of 1986, as amended through December 31, 2007; and

(ii) actions of the person were not a contributing factor in the qualified business becoming
subject to repayment under subdivision 1.

(c) Requests for waiver must be made no later than 60 days after the earlier of the notice
date of an order issued under subdivision 4, paragraph (d), or the date of a tax statement
issued under subdivision 4, paragraph (c).new text begin For purposes of this section, "notice date" means
the notice date designated by the commissioner on the order.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for orders of the commissioner of revenue
dated after December 31, 2017.
new text end

Sec. 49.

Laws 2016, chapter 187, section 5, the effective date, is amended to read:


EFFECTIVE DATE.

This section is effective for orders and notices dated after
deleted text begin September 30, 2015deleted text end new text begin December 31, 2017new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from September 30, 2015.
new text end

ARTICLE 20

DEPARTMENT OF REVENUE 2015-2016 SUSTAINABLE FOREST INCENTIVE
ACT PROVISIONS

Section 1.

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


290C.03 ELIGIBILITY REQUIREMENTS.

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

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

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

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

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

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

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

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

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

new text begin EFFECTIVE DATE. new text end

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

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

new text begin Minnesota Statutes 2016, sections 290C.02, subdivisions 5 and 9; and 290C.06, new text end new text begin are
repealed.
new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 21

DEPARTMENT OF REVENUE INDIVIDUAL INCOME, CORPORATE
FRANCHISE, AND ESTATE TAX TECHNICAL PROVISIONS

Section 1.

Minnesota Statutes 2016, section 290.0132, subdivision 21, is amended to read:


Subd. 21.

Military service pension; retirement pay.

To the extent included in Previous federal Next
taxable income, compensation received from a pension or other retirement pay from the
Previous federal Next government for service in the military, as computed under United States Code, title
10, sections 1401 to 1414, 1447 to 1455, and 12733, is a subtraction. The subtraction deleted text begin must
not include any amount used to claim the credit allowed under section 290.0677
deleted text end new text begin is limited
to individuals who do not claim the credit under section 290.0677
new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2015.
new text end

Sec. 2.

Minnesota Statutes 2016, section 290A.03, subdivision 3, is amended to read:


Subd. 3.

Income.

(a) "Income" means the sum of the following:

(1) Previous federal Next adjusted gross income as defined in the Internal Revenue Code; and

(2) the sum of the following amounts to the extent not included in clause (1):

(i) all nontaxable income;

(ii) the amount of a passive activity loss that is not disallowed as a result of section 469,
paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss
carryover allowed under section 469(b) of the Internal Revenue Code;

(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a
solvent individual excluded from gross income under section 108(g) of the Internal Revenue
Code;

(iv) cash public assistance and relief;

(v) any pension or annuity (including railroad retirement benefits, all payments received
under the Previous federal Next Social Security Act, Supplemental Security Income, and veterans benefits),
which was not exclusively funded by the claimant or spouse, or which was funded exclusively
by the claimant or spouse and which funding payments were excluded from Previous federal Next adjusted
gross income in the years when the payments were made;

(vi) interest received from the Previous federal Next or a state government or any instrumentality or
political subdivision thereof;

(vii) workers' compensation;

(viii) nontaxable strike benefits;

(ix) the gross amounts of payments received in the nature of disability income or sick
pay as a result of accident, sickness, or other disability, whether funded through insurance
or otherwise;

(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
1986, as amended through December 31, 1995;

(xi) contributions made by the claimant to an individual retirement account, including
a qualified voluntary employee contribution; simplified employee pension plan;
self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of
the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal
Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for
the claimant and spouse;

(xii) to the extent not included in Previous federal Next adjusted gross income, distributions received
by the claimant or spouse from a traditional or Roth style retirement account or plan;

(xiii) nontaxable scholarship or fellowship grants;

(xiv) the amount of deduction allowed under section 199 of the Internal Revenue Code;

(xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue
Code;

(xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue
Code; and

(xvii) the amount deducted for certain expenses of elementary and secondary school
teachers under section 62(a)(2)(D) of the Internal Revenue Code.

In the case of an individual who files an income tax return on a fiscal year basis, the
term " Previous federal Next adjusted gross income" shall mean Previous federal Next adjusted gross income reflected in
the fiscal year ending in the calendar year. Previous Federal Next adjusted gross income shall not be reduced
by the amount of a net operating loss carryback or carryforward or a capital loss carryback
or carryforward allowed for the year.

(b) "Income" does not include:

(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;

(2) amounts of any pension or annuity which was exclusively funded by the claimant
or spouse and which funding payments were not excluded from Previous federal Next adjusted gross
income in the years when the payments were made;

(3) to the extent included in Previous federal Next adjusted gross income, amounts contributed by the
claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed
the retirement base amount reduced by the amount of contributions excluded from Previous federal Next
adjusted gross income, but not less than zero;

(4) surplus food or other relief in kind supplied by a governmental agency;

(5) relief granted under this chapter;

(6) child support payments received under a temporary or final decree of dissolution or
legal separation; or

(7) restitution payments received by eligible individuals and excludable interest as
defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001,
Public Law 107-16.

(c) The sum of the following amounts may be subtracted from income:

(1) for the claimant's first dependent, the exemption amount multiplied by 1.4;

(2) for the claimant's second dependent, the exemption amount multiplied by 1.3;

(3) for the claimant's third dependent, the exemption amount multiplied by 1.2;

(4) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;

(5) for the claimant's fifth dependent, the exemption amount; and

(6) if the claimant or claimant's spouse was disabled or attained the age of 65 on or
before December 31 of the year for which the taxes were levied or rent paid, the exemption
amount.

(d) For purposes of this subdivision, the "exemption amount" means the exemption
amount under section 151(d) of the Internal Revenue Code for the taxable year for which
the income is reported; "retirement base amount" means the deductible amount for the
taxable year for the claimant and spouse under section 219(b)(5)(A) of the Internal Revenue
Code, adjusted for inflation as provided in section 219(b)(5)deleted text begin (D)deleted text end new text begin (C)new text end of the Internal Revenue
Code, without regard to whether the claimant or spouse claimed a deduction; and "traditional
or Roth style retirement account or plan" means retirement plans under sections 401, 403,
408, 408A, and 457 of the Internal Revenue Code.

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2016, section 290A.10, is amended to read:


290A.10 PROOF OF TAXES PAID.

deleted text begin Everydeleted text end new text begin If requested by the commissioner of revenue, anew text end claimant who files a claim for
relief for property taxes payable shall deleted text begin include with the claimdeleted text end new text begin providenew text end a property tax statement
or a reproduction thereof in a form deemed satisfactory by the commissioner of revenue
indicating that there are no delinquent property taxes on the homestead. Indication on the
property tax statement from the county treasurer that there are no delinquent taxes on the
homestead shall be sufficient proof. Taxes included in a confession of judgment under
section 277.23 or 279.37 shall not constitute delinquent taxes as long as the claimant is
current on the payments required to be made under section 277.23 or 279.37.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for refunds based on rent paid after
December 31, 2015, and property taxes payable after December 31, 2016.
new text end

Sec. 4.

Minnesota Statutes 2016, section 291.075, is amended to read:


291.075 SPECIAL USE VALUATION OF QUALIFIED PROPERTY.

If, after the final determination of the tax imposed by this chapter, the property valued
pursuant to section 2032A of the Internal Revenue Code is disposed of or fails to qualify
and an additional tax is imposed pursuant to section 2032A(c), any increase in deleted text begin the credit
for state death taxes
deleted text end new text begin Previous federal Next gross or taxable estatenew text end shall be reported to the commissioner
within 90 days deleted text begin after final determination of the increased creditdeleted text end new text begin of the Previous federal Next adjustmentnew text end .
Upon notification the commissioner may assess an additional tax in accordance with section
291.03, subdivision 1.

new text begin EFFECTIVE DATE. new text end

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

Sec. 5. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, sections 290.9743; and 290.9744, new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 22

DEPARTMENT OF REVENUE PROPERTY TAX AND LOCAL GOVERNMENT
AID TECHNICAL PROVISIONS

Section 1.

Minnesota Statutes 2016, section 270.078, subdivision 1, is amended to read:


Subdivision 1.

Conformance to Previous federal Next law.

If any provision of sections 270.071 to
270.079 is contrary to any provision of any law of the United States of America, hereinafter
enacted, providing for or relating to the ad valorem taxation by a state of aircraft or flying
equipment of an airline company, such provision shall be of no effect and the commissioner
is authorized and directed to prescribe by rule such provisions as may be necessary to make
sections 270.071 to 270.079 conform to the Previous federal Next act and to effectuate the purposes of
sections 270.071 to 270.079, provided such rules do not prescribe a rate of taxation higher
than that provided in section 270.075 or a net tax capacity based on a percentage higher
than that provided in section 270.074, subdivision deleted text begin 2deleted text end new text begin 3new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2016, section 273.0755, is amended to read:


273.0755 TRAINING AND EDUCATION OF PROPERTY TAX PERSONNEL.

(a) Beginning with the four-year period starting on July 1, 2000, every person licensed
by the state Board of Assessors at the Accredited Minnesota Assessor level or higher, shall
successfully complete a weeklong Minnesota laws course sponsored by the Department of
Revenue at least once in every four-year period. An assessor need not attend the course if
they successfully pass the test for the course.

(b) The commissioner of revenue may require that each county, and each city for which
the city assessor performs the duties of county assessor, have (i) a person on the assessor's
staff who is certified by the Department of Revenue in sales ratio calculations, (ii) an officer
or employee who is certified by the Department of Revenue in tax calculations, and (iii) an
officer or employee who is certified by the Department of Revenue in the proper preparation
of abstracts of assessment. The commissioner of revenue may require that each county have
an officer or employee who is certified by the Department of Revenue in the proper
preparation of abstracts of tax lists.new text begin Certifications under this paragraph expire after four
years.
new text end

(c) Beginning with the four-year educational licensing period starting on July 1, 2004,
every Minnesota assessor licensed by the State Board of Assessors must attend and participate
in a seminar that focuses on ethics, professional conduct and the need for standardized
assessment practices developed and presented by the commissioner of revenue. This
requirement must be met at least once in every subsequent four-year period. This requirement
applies to all assessors licensed for one year or more in the four-year period.

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2016, section 273.135, subdivision 1, is amended to read:


Subdivision 1.

Reduction in tax; tax relief area.

The property tax to be paid in respect
to property taxable within a tax relief area as defined in section 273.134, paragraph (b), on
homestead property, as otherwise determined by law and regardless of the market value of
the property,new text begin and on nonhomestead portions of property classified as both homestead and
nonhomestead property as provided in section 273.124, subdivision 11,
new text end for all purposes
shall be reduced in the amount prescribed by subdivision 2, subject to the limitations
contained therein.

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2016, section 414.09, subdivision 2, is amended to read:


Subd. 2.

Transmittal of order.

The chief Previous administrative Next law judge shall see that copies
of the order are mailed to all parties entitled to mailed notice of hearing under subdivision
1, the secretary of state, deleted text begin the Department of Revenue,deleted text end the state demographer, individual
property owners if initiated in that manner, affected county auditor, and any other party of
record. The affected county auditor shall record the order against the affected property.

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2016, section 477A.0124, subdivision 2, is amended to read:


Subd. 2.

Definitions.

(a) For the purposes of this section, the following terms have the
meanings given them.

(b) "County program aid" means the sum of "county need aid," "county tax base
equalization aid," and "county transition aid."

(c) "Age-adjusted population" means a county's population multiplied by the county age
index.

(d) "County age index" means the percentage of the population deleted text begin overdeleted text end age 65 new text begin and over
new text end within the county divided by the percentage of the population deleted text begin overdeleted text end age 65 new text begin and over new text end within
the state, except that the age index for any county may not be greater than 1.8 nor less than
0.8.

(e) "Population deleted text begin overdeleted text end age 65new text begin and overnew text end " means the population deleted text begin overdeleted text end age 65 new text begin and over
new text end established as of July 15 in an aid calculation year by the most recent Previous federal Next census, by a
special census conducted under contract with the United States Bureau of the Census, by a
population estimate made by the Metropolitan Council, or by a population estimate of the
state demographer made pursuant to section 4A.02, whichever is the most recent as to the
stated date of the count or estimate for the preceding calendar year and which has been
certified to the commissioner of revenue on or before July 15 of the aid calculation year. A
revision to an estimate or count is effective for these purposes only if certified to the
commissioner on or before July 15 of the aid calculation year. Clerical errors in the
certification or use of estimates and counts established as of July 15 in the aid calculation
year are subject to correction within the time periods allowed under section 477A.014.

(f) "Part I crimes" means the three-year average annual number of Part I crimes reported
for each county by the Department of Public Safety for the most recent years available. By
July 1 of each year, the commissioner of public safety shall certify to the commissioner of
revenue the number of Part I crimes reported for each county for the three most recent
calendar years available.

(g) "Households receiving food stamps" means the average monthly number of
households receiving food stamps for the three most recent years for which data is available.
By July 1 of each year, the commissioner of human services must certify to the commissioner
of revenue the average monthly number of households in the state and in each county that
receive food stamps, for the three most recent calendar years available.

(h) "County net tax capacity" means the county's adjusted net tax capacity under section
273.1325.

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2016, section 477A.013, subdivision 1, is amended to read:


Subdivision 1.

Towns.

new text begin (a) new text end In 2014 and thereafter, each town is eligible for a distribution
under this subdivision equal to the product of (i) its agricultural property factor, (ii) its town
area factor, (iii) its population factor, and (iv) 0.0045. As used in this subdivision, the
following terms have the meanings given them:

(1) "agricultural property factor" means the ratio of the adjusted net tax capacity of
agricultural property located in a town, deleted text begin divided bydeleted text end new text begin tonew text end the adjusted net tax capacity of all
other property located in the town. The agricultural property factor cannot exceed eight;

(2) "agricultural property" means property classified under section 273.13, as homestead
and nonhomestead agricultural property, rural vacant land, and noncommercial seasonal
recreational property;

(3) "town area factor" means the most recent estimate of total acreage, not to exceed
50,000 acres, located in the township available as of July 1 in the aid calculation year,
estimated or established by:

(i) the United States Bureau of the Census;

(ii) the State Land Management Information Center; or

(iii) the secretary of state; and

(4) "population factor" means the square root of the towns' population.

new text begin (b) new text end If the sum of the aids payable to all towns under this subdivision exceeds the limit
under section 477A.03, subdivision 2c, the distribution to each town must be reduced
proportionately so that the total amount of aids distributed under this section does not exceed
the limit in section 477A.03, subdivision 2c.

new text begin (c) Data used in calculating aids to towns under this subdivision, other than acreage,
shall be the most recently available data as of January 1 in the year in which the aid is
calculated.
new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 23

DEPARTMENT OF REVENUE SALES AND USE, AND SPECIAL TAXES
TECHNICAL PROVISIONS

Section 1.

Minnesota Statutes 2016, section 270C.171, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

(a) If a special law grants a local government unit or group
of units the authority to impose a local tax other than sales tax, including but not limited to
taxes such as lodging, entertainment, admissions, or food and beverage taxes, and the
Department of Revenue either has agreed to or is required to administer the tax, such that
the tax is reported and paid with the chapter 297A taxes, then deleted text begin the local government unit or
group of units must adopt
deleted text end each deleted text begin definitiondeleted text end new text begin termnew text end used in the special lawnew text begin is definednew text end as follows:

(1) deleted text begin the definition must be identical to the definition founddeleted text end new text begin as definednew text end in chapter 297A
or in Minnesota Rules, chapter 8130; or

(2) if the specific term is not defined either in chapter 297A or in Minnesota Rules,
chapter 8130, then deleted text begin the definition must bedeleted text end new text begin definednew text end consistent with the position of the
Department of Revenue as to the extent of the tax base.

(b) This subdivision does not apply to terms that are defined by the authorizing special
law.

new text begin (c) This subdivision applies notwithstanding whether a local government unit or group
of units adopts consistent definitions into local law.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2016, section 298.01, subdivision 3, is amended to read:


Subd. 3.

Occupation tax; other ores.

Every person engaged in the business of mining,
refining, or producing ores, metals, or minerals in this state, except iron ore or taconite
concentrates, shall pay an occupation tax to the state of Minnesota as provided in this
subdivision. For purposes of this subdivision, mining includes the application of
hydrometallurgical processes. Hydrometallurgical processes are processes that extract the
ores, metals, or minerals, by use of aqueous solutions that leach, concentrate, and recover
the ore, metal, or mineral. The tax is determined in the same manner as the tax imposed by
section 290.02, except that sections 290.05, subdivision 1, clause (a), 290.17, subdivision
4
, and 290.191, subdivision 2, do not apply, and the occupation tax must be computed by
applying to taxable income the rate of 2.45 percent. deleted text begin A person subject to occupation tax
under this section shall apportion its net income on the basis of the percentage obtained by
taking the sum of:
deleted text end

deleted text begin (1) 75 percent of the percentage which the sales made within this state in connection
with the trade or business during the tax period are of the total sales wherever made in
connection with the trade or business during the tax period;
deleted text end

deleted text begin (2) 12.5 percent of the percentage which the total tangible property used by the taxpayer
in this state in connection with the trade or business during the tax period is of the total
tangible property, wherever located, used by the taxpayer in connection with the trade or
business during the tax period; and
deleted text end

deleted text begin (3) 12.5 percent of the percentage which the taxpayer's total payrolls paid or incurred
in this state or paid in respect to labor performed in this state in connection with the trade
or business during the tax period are of the taxpayer's total payrolls paid or incurred in
connection with the trade or business during the tax period.
deleted text end

The tax is in addition to all other taxes.

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2016, section 298.01, subdivision 4, is amended to read:


Subd. 4.

Occupation tax; iron ore; taconite concentrates.

A person engaged in the
business of mining or producing of iron ore, taconite concentrates or direct reduced ore in
this state shall pay an occupation tax to the state of Minnesota. The tax is determined in the
same manner as the tax imposed by section 290.02, except that sections 290.05, subdivision
1
, clause (a), 290.17, subdivision 4, and 290.191, subdivision 2, do not apply, and the
occupation tax shall be computed by applying to taxable income the rate of 2.45 percent.
deleted text begin A person subject to occupation tax under this section shall apportion its net income on the
basis of the percentage obtained by taking the sum of:
deleted text end

deleted text begin (1) 75 percent of the percentage which the sales made within this state in connection
with the trade or business during the tax period are of the total sales wherever made in
connection with the trade or business during the tax period;
deleted text end

deleted text begin (2) 12.5 percent of the percentage which the total tangible property used by the taxpayer
in this state in connection with the trade or business during the tax period is of the total
tangible property, wherever located, used by the taxpayer in connection with the trade or
business during the tax period; and
deleted text end

deleted text begin (3) 12.5 percent of the percentage which the taxpayer's total payrolls paid or incurred
in this state or paid in respect to labor performed in this state in connection with the trade
or business during the tax period are of the taxpayer's total payrolls paid or incurred in
connection with the trade or business during the tax period.
deleted text end

The tax is in addition to all other taxes.

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2016, section 298.24, subdivision 1, is amended to read:


Subdivision 1.

Imposed; calculation.

(a) For concentrate produced in 2013, there is
imposed upon taconite and iron sulphides, and upon the mining and quarrying thereof, and
upon the production of iron ore concentrate therefrom, and upon the concentrate so produced,
a tax of $2.56 per gross ton of merchantable iron ore concentrate produced therefrom. deleted text begin The
tax is also imposed upon other iron-bearing material.
deleted text end

(b) For concentrates produced in 2014 and subsequent years, the tax rate shall be equal
to the preceding year's tax rate plus an amount equal to the preceding year's tax rate multiplied
by the percentage increase in the implicit price deflator from the fourth quarter of the second
preceding year to the fourth quarter of the preceding year. "Implicit price deflator" means
the implicit price deflator for the gross domestic product prepared by the Bureau of Economic
Analysis of the United States Department of Commerce.

(c) An additional tax is imposed equal to three cents per gross ton of merchantable iron
ore concentrate for each one percent that the iron content of the product exceeds 72 percent,
when dried at 212 degrees Fahrenheit.

(d) The tax on taconite and iron sulphides shall be imposed on the average of the
production for the current year and the previous two years. The rate of the tax imposed will
be the current year's tax rate. This clause shall not apply in the case of the closing of a
taconite facility if the property taxes on the facility would be higher if this clause and section
298.25 were not applicable. deleted text begin The tax on other iron-bearing material shall be imposed on the
current year production.
deleted text end

new text begin (e) The tax under paragraph (a) is also imposed upon other iron-bearing material. The
tax on other iron-bearing material shall be imposed on the current year production. The rate
of the tax imposed is the current year's tax rate.
new text end

deleted text begin (e)deleted text end new text begin (f)new text end If the tax or any part of the tax imposed by this subdivision is held to be
unconstitutional, a tax of $2.56 per gross ton of merchantable iron ore concentrate produced
shall be imposed.

deleted text begin (f)deleted text end new text begin (g)new text end Consistent with the intent of this subdivision to impose a tax based upon the
weight of merchantable iron ore concentrate, the commissioner of revenue may indirectly
determine the weight of merchantable iron ore concentrate included in fluxed pellets by
subtracting the weight of the limestone, dolomite, or olivine derivatives or other basic flux
additives included in the pellets from the weight of the pellets. For purposes of this paragraph,
"fluxed pellets" are pellets produced in a process in which limestone, dolomite, olivine, or
other basic flux additives are combined with merchantable iron ore concentrate. No
subtraction from the weight of the pellets shall be allowed for binders, mineral and chemical
additives other than basic flux additives, or moisture.

deleted text begin (g)deleted text end new text begin (h)new text end (1) Notwithstanding any other provision of this subdivision, for the first two years
of a plant's commercial production of direct reduced ore from ore mined in this state, no
tax is imposed under this section. As used in this paragraph, "commercial production" is
production of more than 50,000 tons of direct reduced ore in the current year or in any prior
year, "noncommercial production" is production of 50,000 tons or less of direct reduced
ore in any year, and "direct reduced ore" is ore that results in a product that has an iron
content of at least 75 percent. For the third year of a plant's commercial production of direct
reduced ore, the rate to be applied to direct reduced ore is 25 percent of the rate otherwise
determined under this subdivision. For the fourth commercial production year, the rate is
50 percent of the rate otherwise determined under this subdivision; for the fifth commercial
production year, the rate is 75 percent of the rate otherwise determined under this subdivision;
and for all subsequent commercial production years, the full rate is imposed.

(2) Subject to clause (1), production of direct reduced ore in this state is subject to the
tax imposed by this section, but if that production is not produced by a producer of taconite,
iron sulfides, or other iron-bearing material, the production of taconite, iron sulfides, or
other iron-bearing material, that is consumed in the production of direct reduced deleted text begin irondeleted text end new text begin orenew text end
in this state is not subject to the tax imposed by this section on taconite, iron sulfides, or
other iron-bearing material.

(3) Notwithstanding any other provision of this subdivision, no tax is imposed on direct
reduced ore under this section during the facility's noncommercial production of direct
reduced ore. The taconite or iron sulphides consumed in the noncommercial production of
direct reduced ore is subject to the tax imposed by this section on taconite and iron sulphides.
Three-year average production of direct reduced ore does not include production of direct
reduced ore in any noncommercial year. Three-year average production for a direct reduced
ore facility that has noncommercial production is the average of the commercial production
of direct reduced ore for the current year and the previous two commercial years.

(4) This paragraph applies only to plants for which all environmental permits have been
obtained and construction has begun before July 1, 2008.

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2016, section 298.28, subdivision 2, is amended to read:


Subd. 2.

City or town where quarried or produced.

(a) 4.5 cents per gross ton of
merchantable iron ore concentrate, hereinafter referred to as "taxable ton," plus the amount
provided in paragraph (c), must be allocated to the city or town in the county in which the
lands from which taconite was mined or quarried were located or within which the
concentrate was produced. If the mining, quarrying, and concentration, or different steps
in either thereof are carried on in more than one taxing district, the commissioner shall
apportion equitably the proceeds of the part of the tax going to cities and towns among such
subdivisions upon the basis of attributing 50 percent of the proceeds of the tax to the operation
of mining or quarrying the taconite, and the remainder to the concentrating plant and to the
processes of concentration, and with respect to each thereof giving due consideration to the
relative extent of such operations performed in each such taxing district. The commissioner's
order making such apportionment shall be subject to review by the Tax Court at the instance
of any of the interested taxing districts, in the same manner as other orders of the
commissioner.

(b)new text begin (1)new text end Four cents per taxable ton shall be allocated to cities and organized townships
affected by mining because their boundaries are within three miles of a taconite mine pit
thatnew text begin :
new text end

new text begin (i) was actively mined by LTV Steel Mining Company in 1999; or
new text end

new text begin (ii) new text end has been actively mined in at least one of the prior three years.

new text begin (2)new text end If a city or town is located near more than one mine meeting deleted text begin thesedeleted text end new text begin thenew text end criterianew text begin under
this paragraph
new text end , the city or town is eligible to receive aid calculated from only the mine
producing the largest taxable tonnage. When more than one municipality qualifies for aid
based on one company's production, the aid must be apportioned among the municipalities
in proportion to their populations. The amounts distributed under this paragraph to each
municipality must be used for infrastructure improvement projects.

(c) The amount that would have been computed for the current year under Minnesota
Statutes 2008, section 126C.21, subdivision 4, for a school district shall be distributed to
the cities and townships within the school district in the proportion that their taxable net tax
capacity within the school district bears to the taxable net tax capacity of the school district
for property taxes payable in the year prior to distribution.

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2016, section 298.28, subdivision 5, is amended to read:


Subd. 5.

Counties.

(a) 21.05 cents per taxable ton for distributions in 2015 through 2023,
and 26.05 cents per taxable ton for distributions beginning in 2024, is allocated to counties
to be distributed, based upon certification by the commissioner of revenue, under paragraphs
(b) to (d).

(b) 10.525 cents per taxable ton shall be distributed to the county in which the taconite
is mined or quarried or in which the concentrate is produced, less any amount which is to
be distributed pursuant to paragraph (c). The apportionment formula prescribed in subdivision
2 is the basis for the distribution.

(c) deleted text begin Ifdeleted text end new text begin 1.0 cent per taxable ton of the tax distributed to the counties under paragraph (b)
shall be paid to a county that received a distribution under this section in 2000 because there
was located in the county
new text end an electric power plant owned by and providing the primary source
of power for a taxpayer mining and concentrating taconite deleted text begin is locateddeleted text end in a new text begin different new text end county
deleted text begin other than the county in which the mining and the concentrating processes are conducted,
one cent per taxable ton of the tax distributed to the counties pursuant to paragraph (b) and
imposed on and collected from such taxpayer shall be paid to the county in which the power
plant is located
deleted text end .

(d) 10.525 cents per taxable ton for distributions in 2015 through 2023, and 15.525 cents
per taxable ton for distributions beginning in 2024, shall be paid to the county from which
the taconite was mined, quarried or concentrated to be deposited in the county road and
bridge fund. If the mining, quarrying and concentrating, or separate steps in any of those
processes are carried on in more than one county, the commissioner shall follow the
apportionment formula prescribed in subdivision 2.

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 24

DEPARTMENT OF REVENUE PROPERTY TAX AND LOCAL GOVERNMENT
AID POLICY PROVISIONS

Section 1.

Minnesota Statutes 2016, section 270.074, subdivision 1, is amended to read:


Subdivision 1.

Valuation.

The commissioner shall determine the market valuation of
all flight property operated or used by every airline company in air commerce in this state.
The valuation apportioned to this state of such flight property shall be the proportion of the
total valuation thereof determined on the basis of the total of the following percentages:

deleted text begin (1) 33-1/3 percent of the percentage which the total tonnage of passengers, express and
freight first received by the airline company in this state during the preceding calendar year
plus the total tonnage of passengers, express and freight finally discharged by it within this
state during the preceding calendar year is of the total of such tonnage first received by the
airline company or finally discharged by it, within and without this state during the preceding
calendar year.
deleted text end

deleted text begin (2) 33-1/3 percent of the percentage which, in equated plane hours, the total time of all
aircraft of the airline company in flight in this state during the preceding calendar year, is
of the total of such time in flight within and without this state during the preceding calendar
year.
deleted text end

deleted text begin (3) 33-1/3deleted text end new text begin (1) 50new text end percent of the percentage which the number of revenue ton miles of
passengers, mail, express and freight flown by the airline company within this state during
the preceding calendar year is of the total number of such miles flown by it within and
without this state during the preceding calendar year.

new text begin (2) 50 percent of the percentage that the total departures performed by the airline company
within this state during the preceding calendar year is of the total departures performed
within and without this state during the preceding calendar year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2018 and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2016, section 272.025, subdivision 1, is amended to read:


Subdivision 1.

Statement of exemption.

(a) Except in the case of property owned by
the state of Minnesota or any political subdivision thereof, deleted text begin and property exempt from taxation
under section 272.02, subdivisions 9, 10, 13, 15, 18, 20, and 22 to 25, and at the times
provided in subdivision 3,
deleted text end a taxpayer claiming an exemption from taxation on property
described in section 272.02deleted text begin , subdivisions 2 to 33,deleted text end must file a statement of exemption with
the assessor of the assessment district in which the property is located.new text begin By February 1, 2018,
and by February 1 of each third year thereafter, the commissioner of revenue shall publish
on its Web site a list of the exemptions for which a taxpayer claiming an exemption must
file a statement of exemption. The commissioner's requirement that a taxpayer file a statement
of exemption pursuant to this subdivision shall not be considered a rule and is not subject
to the Previous Administrative Next Procedure Act, chapter 14.
new text end

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

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

(d) The commissioner of revenue shall prescribe the form and contents of the statement
of exemption.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for applications for exemption submitted
in 2018 and thereafter.
new text end

Sec. 3.

Minnesota Statutes 2016, section 272.0295, is amended by adding a subdivision
to read:


new text begin Subd. 8. new text end

new text begin Extension. new text end

new text begin The commissioner may, for good cause, extend the time for filing
the report required by subdivision 4. The extension must not exceed 15 days.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for reports filed in 2018 and thereafter.
new text end

Sec. 4.

Minnesota Statutes 2016, section 272.115, subdivision 1, is amended to read:


Subdivision 1.

Requirement.

Except as otherwise provided in subdivision 5 or 6,
whenever any real estate is sold for a consideration in excess of deleted text begin $1,000deleted text end new text begin $1,500new text end , whether by
warranty deed, quitclaim deed, contract for deed or any other method of sale, the grantor,
grantee or the legal agent of either shall file a certificate of value with the county auditor
in the county in which the property is located when the deed or other document is presented
for recording. Contract for deeds are subject to recording under section 507.235, subdivision
1
. Value shall, in the case of any deed not a gift, be the amount of the full actual consideration
thereof, paid or to be paid, including the amount of any lien or liens assumed. The items
and value of personal property transferred with the real property must be listed and deducted
from the sale price. The certificate of value shall include the classification to which the
property belongs for the purpose of determining the fair market value of the property, and
shall include any proposed change in use of the property known to the person filing the
certificate that could change the classification of the property. The certificate shall include
financing terms and conditions of the sale which are necessary to determine the actual,
present value of the sale price for purposes of the sales ratio study. If the property is being
acquired as part of a like-kind exchange under section 1031 of the Internal Revenue Code
of 1986, as amended through December 31, 2006, that must be indicated on the certificate.
The commissioner of revenue shall promulgate Previous administrative Next rules specifying the financing
terms and conditions which must be included on the certificate. The certificate of value
must include the Social Security number or the Previous federal Next employer identification number of
the grantors and grantees. However, a married person who is not an owner of record and
who is signing a conveyance instrument along with the person's spouse solely to release
and convey their marital interest, if any, in the real property being conveyed is not a grantor
for the purpose of the preceding sentence. A statement in the deed that is substantially in
the following form is sufficient to allow the county auditor to accept a certificate for filing
without the Social Security number of the named spouse: "(Name) claims no ownership
interest in the real property being conveyed and is executing this instrument solely to release
and convey a marital interest, if any, in that real property." The identification numbers of
the grantors and grantees are private data on individuals or nonpublic data as defined in
section 13.02, subdivisions 9 and 12, but, notwithstanding that section, the private or
nonpublic data may be disclosed to the commissioner of revenue for purposes of tax
administration. The information required to be shown on the certificate of value is limited
to the information required as of the date of the acknowledgment on the deed or other
document to be recorded.new text begin The commissioner's determination of the amount for which a
certificate of value is required pursuant to this subdivision shall not be considered a rule
and is not subject to the Previous Administrative Next Procedure Act, chapter 14.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for certificates of value filed after
December 31, 2017.
new text end

Sec. 5.

Minnesota Statutes 2016, section 272.115, subdivision 2, is amended to read:


Subd. 2.

Form; information required.

The certificate of value shall require such facts
and information as may be determined by the commissioner to be reasonably necessary in
the administration of the state education aid formulas. The form of the certificate of value
shall be prescribed by the Department of Revenue deleted text begin which shall provide an adequate supply
of forms to each county auditor
deleted text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2016, section 272.115, subdivision 3, is amended to read:


Subd. 3.

Copies transmitted; homestead status.

The county auditor shall transmit deleted text begin two
true copies of
deleted text end the certificate of value to the assessor who shall insertnew text begin into the certificate of
value
new text end the most recent market value and when available, the year of original construction of
each parcel of property deleted text begin on both copiesdeleted text end new text begin ,new text end and shall transmit deleted text begin one copydeleted text end new text begin the certificate of value
new text end to the Department of Revenue. Upon the request of a city council located within the county,
a copy of each certificate of value for property located in that city shall be made available
to the governing body of the city. The assessor shall remove the homestead classification
for the following assessment year from a property which is sold or transferred, unless the
grantee or the person to whom the property is transferred completes a homestead application
under section 273.124, subdivision 13, and qualifies for homestead status.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for certificates of value filed after
December 31, 2017.
new text end

Sec. 7.

Minnesota Statutes 2016, section 273.124, subdivision 13, is amended to read:


Subd. 13.

Homestead application.

(a) A person who meets the homestead requirements
under subdivision 1 must file a homestead application with the county assessor to initially
obtain homestead classification.

(b) The format and contents of a uniform homestead application shall be prescribed by
the commissioner of revenue. The application must clearly inform the taxpayer that this
application must be signed by all owners who occupy the property or by the qualifying
relative and returned to the county assessor in order for the property to receive homestead
treatment.

(c) Every property owner applying for homestead classification must furnish to the
county assessor the Social Security number of each occupant who is listed as an owner of
the property on the deed of record, the name and address of each owner who does not occupy
the property, and the name and Social Security number of each owner's spouse deleted text begin who occupies
the property
deleted text end . The application must be signed by each owner who occupies the property and
by each owner's spouse who occupies the property, or, in the case of property that qualifies
as a homestead under subdivision 1, paragraph (c), by the qualifying relative.

If a property owner occupies a homestead, the property owner's spouse may not claim
another property as a homestead unless the property owner and the property owner's spouse
file with the assessor an affidavit or other proof required by the assessor stating that the
property qualifies as a homestead under subdivision 1, paragraph (e).

Owners or spouses occupying residences owned by their spouses and previously occupied
with the other spouse, either of whom fail to include the other spouse's name and Social
Security number on the homestead application or provide the affidavits or other proof
requested, will be deemed to have elected to receive only partial homestead treatment of
their residence. The remainder of the residence will be classified as nonhomestead residential.
When an owner or spouse's name and Social Security number appear on homestead
applications for two separate residences and only one application is signed, the owner or
spouse will be deemed to have elected to homestead the residence for which the application
was signed.

(d) If residential real estate is occupied and used for purposes of a homestead by a relative
of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in order for
the property to receive homestead status, a homestead application must be filed with the
assessor. The Social Security number of each relative new text begin occupying the property new text end and new text begin the name
and Social Security number of the
new text end spouse of a relative occupying the property shall be
required on the homestead application filed under this subdivision. If a different relative of
the owner subsequently occupies the property, the owner of the property must notify the
assessor within 30 days of the change in occupancy. The Social Security number of a relative
new text begin occupying the property new text end or deleted text begin relative'sdeleted text end new text begin thenew text end spouse new text begin of a relative new text end occupying the property is private
data on individuals as defined by section 13.02, subdivision 12, but may be disclosed to the
commissioner of revenue, or, for the purposes of proceeding under the Revenue Recapture
Act to recover personal property taxes owing, to the county treasurer.

(e) The homestead application shall also notify the property owners that if the property
is granted homestead status for any assessment year, that same property shall remain
classified as homestead until the property is sold or transferred to another person, or the
owners, the spouse of the owner, or the relatives no longer use the property as their
homestead. Upon the sale or transfer of the homestead property, a certificate of value must
be timely filed with the county auditor as provided under section 272.115. Failure to notify
the assessor within 30 days that the property has been sold, transferred, or that the owner,
the spouse of the owner, or the relative is no longer occupying the property as a homestead,
shall result in the penalty provided under this subdivision and the property will lose its
current homestead status.

(f) If a homestead application has not been filed with the county by December 15, the
assessor shall classify the property as nonhomestead for the current assessment year for
taxes payable in the following year, provided that the owner may be entitled to receive the
homestead classification by proper application under section 375.192.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for applications for homestead filed in
2018 and thereafter.
new text end

Sec. 8.

Minnesota Statutes 2016, section 273.124, subdivision 13d, is amended to read:


Subd. 13d.

Homestead data.

On or before April 30 each year beginning in 2007, each
county must provide the commissioner with the following data for each parcel of homestead
property by electronic means as defined in section 289A.02, subdivision 8:

(1) the property identification number assigned to the parcel for purposes of taxes payable
in the current year;

(2) the name and Social Security number of each occupant of homestead property who
is the property ownerdeleted text begin , property owner's spouse,deleted text end new text begin or new text end qualifying relative of a property owner,new text begin
and the spouse of the property owner who occupies homestead property
new text end or spouse of a
qualifying relativenew text begin of a property owner who occupies homestead propertynew text end ;

(3) the classification of the property under section 273.13 for taxes payable in the current
year and in the prior year;

(4) an indication of whether the property was classified as a homestead for taxes payable
in the current year because of occupancy by a relative of the owner or by a spouse of a
relative;

(5) the property taxes payable as defined in section 290A.03, subdivision 13, for the
current year and the prior year;

(6) the market value of improvements to the property first assessed for tax purposes for
taxes payable in the current year;

(7) the assessor's estimated market value assigned to the property for taxes payable in
the current year and the prior year;

(8) the taxable market value assigned to the property for taxes payable in the current
year and the prior year;

(9) whether there are delinquent property taxes owing on the homestead;

(10) the unique taxing district in which the property is located; and

(11) such other information as the commissioner decides is necessary.

The commissioner shall use the information provided on the lists as appropriate under
the law, including for the detection of improper claims by owners, or relatives of owners,
under chapter 290A.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for applications for homestead filed in
2018 and thereafter.
new text end

Sec. 9.

Minnesota Statutes 2016, section 274.014, subdivision 3, is amended to read:


Subd. 3.

Proof of compliance; transfer of duties.

(a) Any city or town that conducts
local boards of appeal and equalization meetings must deleted text begin provide proof to the county assessor
by February 1 that it is in compliance
deleted text end new text begin complynew text end with the new text begin training new text end requirements of subdivision
2new text begin by February 1, by having at least one member who has attended an appeals and equalization
course described in subdivision 2 within the last four years
new text end . deleted text begin This notice must also verify
that there was a quorum of voting members at each meeting of the board of appeal and
equalization in the previous year.
deleted text end A city or town that does not comply with these requirements
is deemed to have transferred its board of appeal and equalization powers to the county new text begin for
a minimum of two assessment years,
new text end beginning with the current year's assessment and
continuing new text begin thereafter new text end unless the powers are reinstated under paragraph (c).

(b) The county shall notify the taxpayers when the board of appeal and equalization for
a city or town has been transferred to the county under this subdivision and, prior to the
meeting time of the county board of equalization, the county shall make available to those
taxpayers a procedure for a review of the assessments, including, but not limited to, open
book meetings. This alternate review process shall take place in April and May.

(c) A local board whose powers are transferred to the county under this subdivision may
be reinstated by resolution of the governing body of the city or town and upon proof of
compliance with the requirements of subdivision 2. The resolution and proofs must be
provided to the county assessor by February 1 in order to be effective for the following
year's assessment.

(d) A local board whose powers are transferred to the county under this subdivision may
continue to employ a local assessor and is not deemed to have transferred its powers to
make assessments.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for board of appeal and equalization
meetings held in 2018 and thereafter.
new text end

Sec. 10.

Minnesota Statutes 2016, section 274.135, subdivision 3, is amended to read:


Subd. 3.

Proof of compliance; transfer of duties.

(a) Any county that conducts county
boards of appeal and equalization meetings must deleted text begin provide proof to the commissioner by
December 1, 2009, and each year thereafter, that it is in compliance
deleted text end new text begin complynew text end with the new text begin training
new text end requirements of subdivision 2new text begin by February 1, by having at least one member who has attended
an appeals and equalization course described in subdivision 2 within the last four years
new text end .
deleted text begin Beginning in 2009, this notice must also verify that there was a quorum of voting members
at each meeting of the board of appeal and equalization in the current year.
deleted text end A county that
does not comply with these requirements is deemed to have transferred its board of appeal
and equalization powers to the special board of equalization appointed pursuant to section
274.13, subdivision 2, new text begin for a minimum of two assessment years, new text end beginning with the following
year's assessment and continuing new text begin thereafter new text end unless the powers are reinstated under paragraph
(c). A county that does not comply with the requirements of subdivision 2 and has not
appointed a special board of equalization shall appoint a special board of equalization before
the following year's assessment.

(b) The county shall notify the taxpayers when the board of appeal and equalization for
a county has been transferred to the special board of equalization under this subdivision
and, prior to the meeting time of the special board of equalization, the county shall make
available to those taxpayers a procedure for a review of the assessments, including, but not
limited to, open book meetings. This alternate review process must take place in April and
May.

(c) A county board whose powers are transferred to the special board of equalization
under this subdivision may be reinstated by resolution of the county board and upon proof
of compliance with the requirements of subdivision 2. The resolution and proofs must be
provided to the commissioner by December 1 in order to be effective for the following
year's assessment.

(d) If a person who was entitled to appeal to the county board of appeal and equalization
or to the county special board of equalization is not able to do so in a particular year because
the county board or special board did not meet the quorum and training requirements in this
section and section 274.13, or because the special board was not appointed, that person may
instead appeal to the commissioner of revenue, provided that the appeal is received by the
commissioner prior to August 1. The appeal is not subject to either chapter 14 or section
270C.92. The commissioner must issue an appropriate order to the county assessor in
response to each timely appeal, either upholding or changing the valuation or classification
of the property. Prior to October 1 of each year, the commissioner must charge and bill the
county where the property is located $500 for each tax parcel covered by an order issued
under this paragraph in that year. Amounts received by the commissioner under this paragraph
must be deposited in the state's general fund. If payment of a billed amount is not received
by the commissioner before December 1 of the year when billed, the commissioner must
deduct that unpaid amount from any state aid the commissioner would otherwise pay to the
county under chapter 477A in the next year. Late payments may either be returned to the
county uncashed and undeposited or may be accepted. If a late payment is accepted, the
state aid paid to the county under chapter 477A must be adjusted within 12 months to
eliminate any reduction that occurred because the payment was late. Amounts needed to
make these adjustments are included in the appropriation under section 477A.03, subdivision
2
.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for board of appeal and equalization
meetings held in 2018 and thereafter.
new text end

Sec. 11. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, section 270.074, subdivision 2, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2018 and thereafter.
new text end

ARTICLE 25

DEPARTMENT OF REVENUE SALES AND USE, AND SPECIAL TAXES POLICY
PROVISIONS

Section 1.

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


Subd. 10.

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

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

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

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


Subd. 11.

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

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

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

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


Subd. 12.

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

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

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

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


new text begin Subd. 20. new text end

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

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

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

new text begin (2) to the extent necessary for the Department of Natural Resources or an authorized
deputy registrar of motor vehicles, as agents for the commissioner, to verify that the
applicable sales or use tax has been paid or that a sales tax exemption applies on the purchase
of a snowmobile, all-terrain vehicle, or watercraft, and to administer sections 84.82,
subdivision 10; 84.922, subdivision 11; 86B.401, subdivision 12; and 297A.825, regarding
either their collection of use tax or their issuance of refunds to applicants of use tax paid to
them in error.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

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


new text begin Subd. 21. new text end

new text begin Department of Transportation. new text end

new text begin The commissioner may disclose return
information related to the taxes imposed by chapter 297A to the Department of Transportation
only:
new text end

new text begin (1) if the commissioner has an agreement with the commissioner of transportation under
section 297A.82, subdivision 7; and
new text end

new text begin (2) to the extent necessary for the Department of Transportation, as agent for the
commissioner, to verify that the applicable sales or use tax has been paid or that a sales tax
exemption applies on the lease, purchase, or sale of an aircraft by an individual or business
who owns and operates the aircraft that must be registered or licensed in Minnesota under
section 360.018, and to otherwise administer section 297A.82, regarding the collection of
tax by the Department of Transportation.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2016, section 289A.50, subdivision 2a, is amended to read:


Subd. 2a.

Refund of sales tax to purchasers.

(a) If a vendor has collected from a
purchaser a tax on a transaction that is not subject to the tax imposed by chapter 297A, the
purchaser may apply directly to the commissioner for a refund under this section if:

(1) the purchaser is currently registered or was registered during the period of the claim,
to collect and remit the sales tax or to remit the use tax; and

(2) either

(i) the amount of the refund to be applied for exceeds $500, or

(ii) the amount of the refund to be applied for does not exceed $500, but the purchaser
also applies for a capital equipment claim at the same time, and the total of the two refunds
exceeds $500.

(b) The purchaser may not file more than two applications for refund under this
subdivision in a calendar year.

new text begin (c) Refunds shall not be issued for sales for resale where the vendor has a published no
resale policy.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

Minnesota Statutes 2016, section 296A.01, subdivision 7, is amended to read:


Subd. 7.

Aviation gasoline.

"Aviation gasoline" means any gasoline that is deleted text begin capable of
use for the purpose of producing or generating
deleted text end new text begin used to produce or generatenew text end power for
propelling internal combustion engine aircraftdeleted text begin , that meets the specifications in ASTM
specification D910-11, and that either:
deleted text end new text begin .
new text end

deleted text begin (1) isdeleted text end new text begin Aviation gasoline includes any such gasolinenew text end invoiced and billed by a producer,
manufacturer, refiner, or blender to a distributor or dealer, by a distributor to a dealer or
consumer, or by a dealer to consumer, as "aviation gasoline"deleted text begin ; ordeleted text end new text begin that meets specifications
in ASTM specification D910-16 or any other ASTM specification as gasoline appropriate
for use in producing or generating power for propelling internal combustion engine aircraft.
new text end

deleted text begin (2) whether or not invoiced and billed as provided in clause (1), is received, sold, stored,
or withdrawn from storage by any person, to be used for the purpose of producing or
generating power for propelling internal combustion engine aircraft.
deleted text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

new text begin [297A.825] SNOWMOBILES; ALL-TERRAIN VEHICLES; WATERCRAFT;
PAYMENT OF TAXES; REFUNDS.
new text end

new text begin Subdivision 1. new text end

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

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

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

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

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

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

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

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

new text begin Subd. 2. new text end

new text begin Agents. new text end

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2016, section 297B.07, is amended to read:


297B.07 PRESUMPTIONS.

new text begin Subdivision 1. new text end

new text begin Presumption; sale and registration. new text end

For the purpose of the proper
administration of deleted text begin Laws 1971, chapter 853deleted text end new text begin this chapternew text end , and to prevent evasion of the tax,
the following presumptions shall apply:

(a) Evidence that a motor vehicle was sold for delivery in this state shall be prima facie
evidence that it was sold for use in this state.

(b) When an application for registration plates for a motor vehicle is received by the
motor vehicle registrar within 30 days of the date it was purchased or acquired by the
purchaser, it shall be presumed, until the contrary is shown by the purchaser, that it was
purchased or acquired for use in this state. This presumption shall apply whether or not such
vehicle was previously titled or registered in another state.

new text begin Subd. 2. new text end

new text begin Presumption; ownership. new text end

new text begin (a) When a business entity not organized under the
laws of this state owns a motor vehicle that is under the control of a Minnesota resident, it
is presumed that the Minnesota resident is the owner of the motor vehicle if two or more
of the following are true:
new text end

new text begin (1) the business entity lacks a specific business activity or purpose other than the
avoidance of tax;
new text end

new text begin (2) the business entity maintains no physical location in the jurisdiction where it is
organized;
new text end

new text begin (3) the business entity earns de minimis or no revenue;
new text end

new text begin (4) the business entity maintains minimal or no business records;
new text end

new text begin (5) the business entity fails to employ individual persons and provide those persons with
Previous federal Next income tax W-2 wage and tax statements; or
new text end

new text begin (6) the business entity fails to file Previous federal Next income tax returns or fails to file a required
state tax return where it is organized.
new text end

new text begin (b) For purposes of this subdivision, a motor vehicle is under the control of a Minnesota
resident if the Minnesota resident:
new text end

new text begin (1) is a partner, member, or shareholder of the business entity;
new text end

new text begin (2) is insured to drive the vehicle; and
new text end

new text begin (3) operates or stores the vehicle in Minnesota for any period of time.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 10.

Minnesota Statutes 2016, section 297I.30, subdivision 7, is amended to read:


Subd. 7.

Surcharge.

deleted text begin (a) By April 30 of each year, every company required to pay the
surcharge under section 297I.10, subdivision 1, shall file a return for the five-month period
ending March 31 in the form prescribed by the commissioner.
deleted text end

deleted text begin (b)deleted text end new text begin (a)new text end By June 30 of each year, every company required to pay the surcharge under
section 297I.10, subdivision 1, shall file a return for the deleted text begin two-monthdeleted text end new text begin seven-monthnew text end period
ending May 31 in the form prescribed by the commissioner.

deleted text begin (c)deleted text end new text begin (b)new text end By November 30 of each year, every company required to pay the surcharge
under section 297I.10, subdivision 1, shall file a return for the five-month period ending
October 31 in the form prescribed by the commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for returns due after October 31, 2017.
new text end

Sec. 11. new text begin REPEALER.
new text end

new text begin Minnesota Rules, part 8125.1300, subpart 3, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 26

DEPARTMENT OF REVENUE PAID PREPARER POLICY PROVISIONS

Section 1.

Minnesota Statutes 2016, section 270C.445, subdivision 2, is amended to read:


Subd. 2.

Definitions.

(a) For purposes of this sectionnew text begin and sections 270C.4451 to
270C.447
new text end , the following terms have the meanings given.

(b) "Advertise" means to solicit business through any means or medium.

(c) "Client" means deleted text begin an individualdeleted text end new text begin a personnew text end for whom a tax preparer performs or agrees
to perform tax preparation services.

(d) "Facilitate" means to individually or in conjunction or cooperation with another
person:

(1) accept an application for a refund anticipation loan;

(2) pay to a client the proceeds, through direct deposit, a negotiable instrument, or any
other means, of a refund anticipation loan; or

(3) offer, arrange, process, provide, or in any other manner act to allow the making of,
a refund anticipation loan.

deleted text begin (e) "Person" means an individual, corporation, partnership, limited liability company,
association, trustee, or other legal entity.
deleted text end

deleted text begin (f)deleted text end new text begin (e)new text end "Refund anticipation check" means a negotiable instrument provided to a client
by the tax preparer or another person, which is issued from the proceeds of a taxpayer's
Previous federal Next or state income tax refund or both and represents the net of the refund minus the tax
preparation fee and any other fees. A refund anticipation check includes a refund transfer.

deleted text begin (g)deleted text end new text begin (f)new text end "Refund anticipation loan" means a loan or any other extension of credit, whether
provided by the tax preparer or another entity such as a financial institution, in anticipation
of, and whose payment is secured by, a client's Previous federal Next or state income tax refund or both.

deleted text begin (h)deleted text end new text begin (g)new text end "Tax preparation services" means services provided for deleted text begin a fee or other considerationdeleted text end new text begin
compensation
new text end to a client to:

(1) assist with preparing or filing deleted text begin state or Previous federal Next individual income tax returnsdeleted text end new text begin a returnnew text end ;

(2) assume final responsibility for completed work on deleted text begin an individual income taxdeleted text end new text begin anew text end return
on which preliminary work has been done by another; deleted text begin or
deleted text end

new text begin (3) sign or include on a return the preparer tax identification number required under
section 6109(a)(4) of the Internal Revenue Code; or
new text end

deleted text begin (3)deleted text end new text begin (4)new text end facilitate the provision ofnew text begin anew text end refund anticipation deleted text begin loans anddeleted text end new text begin loan or anew text end refund
anticipation deleted text begin checksdeleted text end new text begin checknew text end .

deleted text begin (i)deleted text end new text begin (h)new text end "Tax preparer" or "preparer" means a person providing tax preparation services
deleted text begin subject to this section.deleted text end new text begin except:
new text end

new text begin (1) an employee who prepares their employer's return;
new text end

new text begin (2) any fiduciary, or the regular employees of a fiduciary, while acting on behalf of the
fiduciary estate, testator, trustor, grantor, or beneficiaries of them;
new text end

new text begin (3) nonprofit organizations providing tax preparation services under the Internal Revenue
Service Volunteer Income Tax Assistance Program or Tax Counseling for the Elderly
Program;
new text end

new text begin (4) a person who merely furnishes typing, reproducing, or other mechanical assistance;
new text end

new text begin (5) a third-party bulk filer as defined in section 290.92, subdivision 30, that is currently
registered with the commissioner; and
new text end

new text begin (6) a certified service provider as defined in section 297A.995, subdivision 2, paragraph
(c), that provides all of the sales tax functions for a retailer not maintaining a place of
business in this state as described in section 297A.66.
new text end

new text begin (i) Except as otherwise provided, "return" means:
new text end

new text begin (1) a return as defined in section 270C.01, subdivision 8;
new text end

new text begin (2) a claim for refund of an overpayment;
new text end

new text begin (3) a claim filed pursuant to chapter 290A; and
new text end

new text begin (4) a claim for a credit filed under section 290.0677, subdivision 1.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims and returns filed after December
31, 2017.
new text end

Sec. 2.

Minnesota Statutes 2016, section 270C.445, subdivision 3, is amended to read:


Subd. 3.

Standards of conduct.

No tax preparer shall:

(1) without good cause fail to promptly, diligently, and without unreasonable delay
complete a client's deleted text begin taxdeleted text end return;

(2) obtain the signature of a client to a deleted text begin taxdeleted text end return or authorizing document that contains
blank spaces to be filled in after it has been signed;

(3) fail to sign a client's deleted text begin taxdeleted text end return when deleted text begin paymentdeleted text end new text begin compensationnew text end for services rendered
has been made;

new text begin (4) fail to provide on a client's return the preparer tax identification number when required
under section 6109(a)(4) of the Internal Revenue Code or section 289A.60, subdivision 28;
new text end

deleted text begin (4)deleted text end new text begin (5)new text end fail or refuse to give a client a copy of any document requiring the client's signature
within a reasonable time after the client signs the document;

deleted text begin (5)deleted text end new text begin (6)new text end fail to retain for at least four years a copy of deleted text begin individual income taxdeleted text end new text begin a client'snew text end
returns;

deleted text begin (6)deleted text end new text begin (7)new text end fail to maintain a confidential relationship with clients or former clients;

deleted text begin (7)deleted text end new text begin (8)new text end fail to take commercially reasonable measures to safeguard a client's nonpublic
personal information;

deleted text begin (8)deleted text end new text begin (9)new text end make, authorize, publish, disseminate, circulate, or cause to make, either directly
or indirectly, any false, deceptive, or misleading statement or representation relating to or
in connection with the offering or provision of tax preparation services;

deleted text begin (9)deleted text end new text begin (10)new text end require a client to enter into a loan arrangement in order to complete a deleted text begin taxdeleted text end new text begin client'snew text end
return;

deleted text begin (10)deleted text end new text begin (11)new text end claim credits or deductions on a client's deleted text begin taxdeleted text end return for which the tax preparer
knows or reasonably should know the client does not qualify;

new text begin (12) report a household income on a client's claim filed under chapter 290A that the tax
preparer knows or reasonably should know is not accurate;
new text end

new text begin (13) engage in any conduct that is subject to a penalty under section 289A.60, subdivision
13, 20, 20a, 26, or 28;
new text end

new text begin (14) whether or not acting as a taxpayer representative, fail to conform to the standards
of conduct required by Minnesota Rules, part 8052.0300, subpart 4;
new text end

new text begin (15) whether or not acting as a taxpayer representative, engage in any conduct that is
incompetent conduct under Minnesota Rules, part 8052.0300, subpart 5;
new text end

new text begin (16) whether or not acting as a taxpayer representative, engage in any conduct that is
disreputable conduct under Minnesota Rules, part 8052.0300, subpart 6;
new text end

deleted text begin (11)deleted text end new text begin (17)new text end charge, offer to accept, or accept a fee based upon a percentage of an anticipated
refund for tax preparation services;

deleted text begin (12)deleted text end new text begin (18)new text end under any circumstances, withhold or fail to return to a client a document
provided by the client for use in preparing the client's deleted text begin taxdeleted text end return;

deleted text begin (13)deleted text end new text begin (19)new text end establish an account in the preparer's name to receive a client's refund through
a direct deposit or any other instrument unless the client's name is also on the account,
except that a taxpayer may assign the portion of a refund representing the Minnesota
education credit available under section 290.0674 to a bank account without the client's
name, as provided under section 290.0679;

deleted text begin (14)deleted text end new text begin (20)new text end fail to act in the best interests of the client;

deleted text begin (15)deleted text end new text begin (21)new text end fail to safeguard and account for any money handled for the client;

deleted text begin (16)deleted text end new text begin (22)new text end fail to disclose all material facts of which the preparer has knowledge which
might reasonably affect the client's rights and interests;

deleted text begin (17)deleted text end new text begin (23)new text end violate any provision of section 332.37;

deleted text begin (18)deleted text end new text begin (24)new text end include any of the following in any document provided or signed in connection
with the provision of tax preparation services:

(i) a hold harmless clause;

(ii) a confession of judgment or a power of attorney to confess judgment against the
client or appear as the client in any judicial proceeding;

(iii) a waiver of the right to a jury trial, if applicable, in any action brought by or against
a debtor;

(iv) an assignment of or an order for payment of wages or other compensation for
services;

(v) a provision in which the client agrees not to assert any claim or defense otherwise
available;

(vi) a waiver of any provision of this section or a release of any obligation required to
be performed on the part of the tax preparer; or

(vii) a waiver of the right to injunctive, declaratory, or other equitable relief or relief on
a class basis; or

deleted text begin (19)deleted text end new text begin (25)new text end if making, providing, or facilitating a refund anticipation loan, fail to provide
all disclosures required by the Previous federal Next Truth in Lending Act, United States Code, title 15,
in a form that may be retained by the client.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims and returns filed after December
31, 2017.
new text end

Sec. 3.

Minnesota Statutes 2016, section 270C.445, subdivision 5a, is amended to read:


Subd. 5a.

Nongame wildlife checkoff.

A tax preparer must give written notice of the
option to contribute to the nongame wildlife management account in section 290.431 to
corporate clients that file an income tax return and to individual clients who file an income
tax return or deleted text begin property tax refunddeleted text end claim deleted text begin formdeleted text end new text begin under chapter 290Anew text end . This notification must be
included with information sent to the client at the same time as the preliminary worksheets
or other documents used in preparing the client's return and must include a line for displaying
contributions.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims and returns filed after December
31, 2017.
new text end

Sec. 4.

Minnesota Statutes 2016, section 270C.445, subdivision 6, is amended to read:


Subd. 6.

Enforcement;new text begin Previous administrative Next order;new text end penaltiesnew text begin ; cease and desistnew text end .

new text begin (a) new text end The
commissioner may impose an Previous administrative Next penalty of not more than $1,000 per violation
of subdivision 3deleted text begin , 3a, 4, 5, or 5bdeleted text end new text begin or 5, or section 270C.4451new text end , provided that a penalty may not
be imposed for any conduct deleted text begin that is also subject to thedeleted text end new text begin for which anew text end tax deleted text begin returndeleted text end preparer deleted text begin penalties
in
deleted text end new text begin penalty is imposed under new text end section 289A.60, subdivision 13. The commissioner may
terminate a tax preparer's authority to transmit returns electronically to the state, if the
commissioner determines the tax preparer engaged in a pattern and practice of violating
this section. Imposition of a penalty under this deleted text begin subdivisiondeleted text end new text begin paragraphnew text end is subject to the
contested case procedure under chapter 14. The commissioner shall collect the penalty in
the same manner as the income tax.new text begin There is no right to make a claim for refund under
section 289A.50 of the penalty imposed under this paragraph.
new text end Penalties imposed under this
deleted text begin subdivisiondeleted text end new text begin paragraphnew text end are public data.

new text begin (b) In addition to the penalty under paragraph (a), if the commissioner determines that
a tax preparer has violated subdivision 3 or 5, or section 270C.4451, the commissioner may
issue an Previous administrative Next order to the tax preparer requiring the tax preparer to cease and
desist from committing the violation. The Previous administrative Next order may include an Previous administrative Next
penalty provided in paragraph (a).
new text end

new text begin (c) If the commissioner issues an Previous administrative Next order under paragraph (b), the
commissioner must send the order to the tax preparer addressed to the last known address
of the tax preparer.
new text end

new text begin (d) A cease and desist order under paragraph (b) must:
new text end

new text begin (1) describe the act, conduct, or practice committed and include a reference to the law
that the act, conduct, or practice violates; and
new text end

new text begin (2) provide notice that the tax preparer may request a hearing as provided in this
subdivision.
new text end

new text begin (e) Within 30 days after the commissioner issues an Previous administrative Next order under paragraph
(b), the tax preparer may request a hearing to review the commissioner's action. The request
for hearing must be made in writing and must be served on the commissioner at the address
specified in the order. The hearing request must specifically state the reasons for seeking
review of the order. The date on which a request for hearing is served by mail is the postmark
date on the envelope in which the request for hearing is mailed.
new text end

new text begin (f) If a tax preparer does not timely request a hearing regarding an Previous administrative Next order
issued under paragraph (b), the order becomes a final order of the commissioner and is not
subject to review by any court or agency.
new text end

new text begin (g) If a tax preparer timely requests a hearing regarding an Previous administrative Next order issued
under paragraph (b), the hearing must be commenced within ten days after the commissioner
receives the request for a hearing.
new text end

new text begin (h) A hearing timely requested under paragraph (e) is subject to the contested case
procedure under chapter 14, as modified by this subdivision. The Previous administrative Next law judge
must issue a report containing findings of fact, conclusions of law, and a recommended
order within ten days after the completion of the hearing, the receipt of late-filed exhibits,
or the submission of written arguments, whichever is later.
new text end

new text begin (i) Within five days of the date of the Previous administrative Next law judge's report issued under
paragraph (h), any party aggrieved by the Previous administrative Next law judge's report may submit
written exceptions and arguments to the commissioner. Within 15 days after receiving the
Previous administrative Next law judge's report, the commissioner must issue an order vacating, modifying,
or making final the Previous administrative Next order.
new text end

new text begin (j) The commissioner and the tax preparer requesting a hearing may by agreement
lengthen any time periods prescribed in paragraphs (g) to (i).
new text end

new text begin (k) An Previous administrative Next order issued under paragraph (b) is in effect until it is modified
or vacated by the commissioner or an appellate court. The Previous administrative Next hearing provided
by paragraphs (e) to (i) and any appellate judicial review as provided in chapter 14 constitute
the exclusive remedy for a tax preparer aggrieved by the order.
new text end

new text begin (l) The commissioner may impose an Previous administrative Next penalty, in addition to the penalty
under paragraph (a), up to $5,000 per violation of a cease and desist order issued under
paragraph (b). Imposition of a penalty under this paragraph is subject to the contested case
procedure under chapter 14. Within 30 days after the commissioner imposes a penalty under
this paragraph, the tax preparer assessed the penalty may request a hearing to review the
penalty order. The request for hearing must be made in writing and must be served on the
commissioner at the address specified in the order. The hearing request must specifically
state the reasons for seeking review of the order. The cease and desist order issued under
paragraph (b) is not subject to review in a proceeding to challenge the penalty order under
this paragraph. The date on which a request for hearing is served by mail is the postmark
date on the envelope in which the request for hearing is mailed. If the tax preparer does not
timely request a hearing, the penalty order becomes a final order of the commissioner and
is not subject to review by any court or agency. A penalty imposed by the commissioner
under this paragraph may be collected and enforced by the commissioner as an income tax
liability. There is no right to make a claim for refund under section 289A.50 of the penalty
imposed under this paragraph. A penalty imposed under this paragraph is public data.
new text end

new text begin (m) If a tax preparer violates a cease and desist order issued under paragraph (b), the
commissioner may terminate the tax preparer's authority to transmit returns electronically
to the state. Termination under this paragraph is public data.
new text end

new text begin (n) A cease and desist order issued under paragraph (b) is public data when it is a final
order.
new text end

new text begin (o) Notwithstanding any other law, the commissioner may impose a penalty or take other
action under this subdivision against a tax preparer, with respect to a return, within the
period to assess tax on that return as provided by section 289A.38.
new text end

new text begin (p) Notwithstanding any other law, the imposition of a penalty or any other action against
a tax preparer under this subdivision, other than with respect to a return, must be taken by
the commissioner within five years of the violation of statute.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims and returns filed after December
31, 2017.
new text end

Sec. 5.

Minnesota Statutes 2016, section 270C.445, subdivision 6a, is amended to read:


Subd. 6a.

Exchange of data; State Board of Accountancy.

The State Board of
Accountancy shall refer to the commissioner complaints it receives about tax preparers who
are not subject to the jurisdiction of the State Board of Accountancy and who are alleged
to have violated the provisions of deleted text begin subdivisions 3, 3a, 4, 4a, 4b, 5, and 5bdeleted text end new text begin this section, except
subdivision 5a, or section 270C.4451
new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims and returns filed after December
31, 2017.
new text end

Sec. 6.

Minnesota Statutes 2016, section 270C.445, subdivision 6b, is amended to read:


Subd. 6b.

Exchange of data; Lawyers Board of Professional Responsibility.

The
Lawyers Board of Professional Responsibility may refer to the commissioner complaints
it receives about tax preparers who are not subject to its jurisdiction and who are alleged to
have violated the provisions of deleted text begin subdivisions 3, 3a, 4, 4a, 4b, 5, and 5bdeleted text end new text begin this section, except
subdivision 5a, or section 270C.4451
new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims and returns filed after December
31, 2017.
new text end

Sec. 7.

Minnesota Statutes 2016, section 270C.445, subdivision 6c, is amended to read:


Subd. 6c.

Exchange of data; commissioner.

The commissioner shall refernew text begin information
and
new text end complaints about tax preparers who are alleged to have violated the provisions of
deleted text begin subdivisions 3, 3a, 4, 4a, 4b, 5, and 5bdeleted text end new text begin this section, except subdivision 5a, or section
270C.4451,
new text end to:

(1) the State Board of Accountancy, if the tax preparer is under its jurisdiction; and

(2) the Lawyers Board of Professional Responsibility, if the tax preparer is under its
jurisdiction.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims and returns filed after December
31, 2017.
new text end

Sec. 8.

Minnesota Statutes 2016, section 270C.445, subdivision 7, is amended to read:


Subd. 7.

Enforcement; civil actions.

(a) Any violation of this sectionnew text begin or section
270C.4451
new text end is an unfair, deceptive, and unlawful trade practice within the meaning of section
8.31. An action taken under this section is in the public interest.

(b) A client may bring a civil action seeking redress for a violation of this section in the
conciliation or the district court of the county in which unlawful action is alleged to have
been committed or where the respondent resides or has a principal place of business.

(c) A court finding for the plaintiff must award:

(1) actual damages;

(2) incidental and consequential damages;

(3) statutory damages of twice the sum of: (i) the tax preparation fees; and (ii) if the
plaintiff violated deleted text begin subdivision 3a, 4, or 5bdeleted text end new text begin section 270C.4451, subdivision 1, 2, or 5new text end , all
interest and fees for a refund anticipation loan;

(4) reasonable attorney fees;

(5) court costs; and

(6) any other equitable relief as the court considers appropriate.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims and returns filed after December
31, 2017.
new text end

Sec. 9.

Minnesota Statutes 2016, section 270C.445, subdivision 8, is amended to read:


Subd. 8.

Limited exemptions.

new text begin (a) Except as provided in paragraph (b),new text end the provisions
of deleted text begin this section, except for subdivisions 3a, 4, and 5b,deleted text end new text begin subdivisions 3; 5; 5a; 6, paragraphs
(a) to (n); and 7,
new text end do not apply to:

(1) an attorney admitted to practice under section 481.01;

(2) a new text begin registered accounting practitioner, a registered accounting practitioner firm, a
new text end certified public accountantnew text begin ,new text end or deleted text begin other person who is subject to the jurisdiction of the State
Board of Accountancy
deleted text end new text begin a certified public accountant firm, licensed in accordance with chapter
326A
new text end ;

(3) an enrolled agent who has passed the special enrollment examination administered
by the Internal Revenue Service; deleted text begin or
deleted text end

(4) deleted text begin anyonedeleted text end new text begin a personnew text end who provides, or assists in providing, tax preparation services within
the scope of duties as an employee deleted text begin or supervisordeleted text end new text begin under the direction or supervisionnew text end of a
person who is exempt under this subdivisiondeleted text begin .deleted text end new text begin ; or
new text end

new text begin (5) a person acting as a supervisor to a tax preparer who is exempt under this subdivision.
new text end

new text begin (b) The provisions of subdivisions 3; 6, paragraphs (a) to (n); and 7, apply to a tax
preparer who would otherwise be exempt under paragraph (a) if the tax preparer has:
new text end

new text begin (1) had a professional license suspended or revoked for cause, not including a failure to
pay a professional licensing fee, by any authority of any state, territory, or possession of
the United States, including a commonwealth, or the District of Columbia, any Previous federal Next court
of record, or any Previous federal Next agency, body, or board;
new text end

new text begin (2) irrespective of whether an appeal has been taken, been convicted of any crime
involving dishonesty or breach of trust;
new text end

new text begin (3) been censured, suspended, or disbarred under United States Treasury Department
Circular 230;
new text end

new text begin (4) been sanctioned by a court of competent jurisdiction, whether in a civil or criminal
proceeding, including suits for injunctive relief, relating to any taxpayer's tax liability or
the tax preparer's own tax liability, for:
new text end

new text begin (i) instituting or maintaining proceedings primarily for delay;
new text end

new text begin (ii) advancing frivolous or groundless arguments; or
new text end

new text begin (iii) failing to pursue available Previous administrative Next remedies; or
new text end

new text begin (5) demonstrated a pattern of willful disreputable conduct by:
new text end

new text begin (i) failing to file a return that the tax preparer was required to file annually for two of
the three immediately preceding tax periods; or
new text end

new text begin (ii) failing to file a return that the tax preparer was required to file more frequently than
annually for three of the six immediately preceding tax periods.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims and returns filed after December
31, 2017.
new text end

Sec. 10.

Minnesota Statutes 2016, section 270C.445, is amended by adding a subdivision
to read:


new text begin Subd. 9. new text end

new text begin Powers additional. new text end

new text begin The powers and authority granted in this section are in
addition to all other powers of the commissioner. The use of the powers granted in this
section does not preclude the use of any other power or authority of the commissioner.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims and returns filed after December
31, 2017.
new text end

Sec. 11.

Minnesota Statutes 2016, section 270C.446, subdivision 2, is amended to read:


Subd. 2.

Required and excluded tax preparers.

(a) Subject to the limitations of
paragraph (b), the commissioner must publish lists of tax preparers as defined in section
deleted text begin 289A.60, subdivision 13, paragraph (f)deleted text end new text begin 270C.445, subdivision 2, paragraph (h)new text end , who have
beennew text begin :
new text end

new text begin (1)new text end convicted under section 289A.63 deleted text begin for returns or claims prepared as a tax preparer ordeleted text end new text begin ;
new text end

new text begin (2)new text end assessed penalties in excess of $1,000 under section 289A.60, subdivision 13,
paragraph (a)deleted text begin .deleted text end new text begin ;
new text end

new text begin (3) convicted for identity theft under section 609.527, or a similar statute, for a return
filed with the commissioner, the Internal Revenue Service, or another state;
new text end

new text begin (4) assessed a penalty under section 270C.445, subdivision 6, paragraph (a), in excess
of $1,000;
new text end

new text begin (5) issued a cease and desist order under section 270C.445, subdivision 6, paragraph
(b), that has become a final order; or
new text end

new text begin (6) assessed a penalty under section 270C.445, subdivision 6, paragraph (l), for violating
a cease and desist order.
new text end

(b) For the purposes of this section, tax preparers are not subject to publication if:

(1) an Previous administrative Next or court action contesting deleted text begin thedeleted text end new text begin or appealing anew text end penaltynew text begin described in
paragraph (a), clause (2), (4), or (6),
new text end has been filed or served and is unresolved at the time
when notice would be given under subdivision 3;

(2) an appeal period to contest deleted text begin thedeleted text end new text begin anew text end penaltynew text begin described in paragraph (a), clause (2), (4),
or (6),
new text end has not expired; deleted text begin or
deleted text end

(3) the commissioner has been notified that the tax preparer is deceaseddeleted text begin .deleted text end new text begin ;
new text end

new text begin (4) an appeal period to contest a cease and desist order issued under section 270C.445,
subdivision 6, paragraph (b), has not expired;
new text end

new text begin (5) an Previous administrative Next or court action contesting or appealing a cease and desist order
issued under section 270C.445, subdivision 6, paragraph (b), has been filed or served and
is unresolved at the time when notice would be given under subdivision 3;
new text end

new text begin (6) a direct appeal of a conviction described in paragraph (a), clause (1) or (3), has been
filed or served and is unresolved at the time when the notice would be given under
subdivision 3; or
new text end

new text begin (7) an appeal period to contest a conviction described in paragraph (a), clause (1) or (3),
has not expired.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims and returns filed after December
31, 2017.
new text end

Sec. 12.

Minnesota Statutes 2016, section 270C.446, subdivision 3, is amended to read:


Subd. 3.

Notice to tax preparer.

(a) At least 30 days before publishing the name of a
tax preparer subject to deleted text begin penaltydeleted text end new text begin publication under this sectionnew text end , the commissioner shall mail
a written notice to the tax preparer, detailing the deleted text begin amount and nature of each penaltydeleted text end new text begin basis
for the publication
new text end and the intended publication of the information listed in subdivision 4
related to the penalty. The notice must be deleted text begin mailed by first class and certified maildeleted text end new text begin sent to the
tax preparer
new text end addressed to the last known address of the tax preparer. The notice must include
information regarding the exceptions listed in subdivision 2, paragraph (b), and must state
that the tax preparer's information will not be published if the tax preparer provides
information establishing that subdivision 2, paragraph (b), prohibits publication of the tax
preparer's name.

(b) Thirty days after the notice is mailed and if the tax preparer has not proved to the
commissioner that subdivision 2, paragraph (b), prohibits publication, the commissioner
may publish in a list of tax preparers subject to penalty the information about the tax preparer
that is listed in subdivision 4.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims and returns filed after December
31, 2017.
new text end

Sec. 13.

Minnesota Statutes 2016, section 270C.446, subdivision 4, is amended to read:


Subd. 4.

Form of list.

The list may be published by any medium or method. The list
must contain the name, associated business name or names, address or addresses, and
violation or violations deleted text begin for which a penalty was imposed ofdeleted text end new text begin that makenew text end each tax preparer
subject to deleted text begin penaltydeleted text end new text begin publicationnew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims and returns filed after December
31, 2017.
new text end

Sec. 14.

Minnesota Statutes 2016, section 270C.446, subdivision 5, is amended to read:


Subd. 5.

Removal from list.

The commissioner shall remove the name of a tax preparer
from the list of tax preparers published under this section:

(1) when the commissioner determines that the name was included on the list in error;

(2) within deleted text begin 90 daysdeleted text end new text begin three yearsnew text end after the preparer has demonstrated to the commissioner
that the preparer fully paid all finesnew text begin and penaltiesnew text end imposed, served any suspension, satisfied
any sentence imposed,new text begin successfully completed any probationary period imposed,new text end and
successfully completed any remedial actions required by the commissioner, the State Board
of Accountancy, or the Lawyers Board of Professional Responsibility; or

(3) when the commissioner has been notified that the tax preparer is deceased.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims and returns filed after December
31, 2017.
new text end

Sec. 15.

Minnesota Statutes 2016, section 270C.447, subdivision 1, is amended to read:


Subdivision 1.

Commencement of action.

new text begin (a) Whenever it appears to the commissioner
that a tax preparer doing business in Minnesota has engaged in any conduct described in
subdivision 2,
new text end a civil action in the name of the state of Minnesota may be commenced to
enjoin deleted text begin any person who is a tax return preparer doing business in this state from further
engaging in any conduct described in subdivision 2
deleted text end new text begin the conduct and enforce compliancenew text end .

new text begin (b)new text end An action under this subdivision must be brought by the attorney general innew text begin :
new text end

new text begin (1)new text end the district court for the judicial district of the tax deleted text begin returndeleted text end preparer's residence or
principal place of businessdeleted text begin , or in which thedeleted text end new text begin ;
new text end

new text begin (2) the district court for the judicial district of the residence of anynew text end taxpayer with respect
to whose deleted text begin taxdeleted text end return the action is brought deleted text begin residesdeleted text end new text begin ; or
new text end

new text begin (3) Ramsey County District Courtnew text end .

new text begin (c)new text end The court may exercise its jurisdiction over the action separate and apart from any
other action brought by the state of Minnesota against the tax deleted text begin returndeleted text end preparer or any taxpayer.new text begin
The court must grant a permanent injunction or other appropriate relief if the commissioner
shows that the person has engaged in conduct constituting a violation of a law administered
by the commissioner or a cease and desist order issued by the commissioner. The
commissioner shall not be required to show irreparable harm.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims and returns filed after December
31, 2017.
new text end

Sec. 16.

Minnesota Statutes 2016, section 270C.447, subdivision 2, is amended to read:


Subd. 2.

Injunction prohibiting specific conduct.

In an action under subdivision 1,new text begin
the court may enjoin the person from further engaging in that conduct
new text end if the court finds that
a tax deleted text begin returndeleted text end preparer has:

(1) engaged in any conduct subject to a civil penalty under section 289A.60 deleted text begin ordeleted text end new text begin ,new text end a criminal
penalty under section 289A.63new text begin , or a criminal penalty under section 609.527 or a similar
statute for a return filed with the commissioner, the Internal Revenue Service, or another
state
new text end ;

(2) misrepresented the preparer's eligibility to practice before the Department of Revenue,
or deleted text begin otherwisedeleted text end misrepresented the preparer's experience or education as a tax deleted text begin returndeleted text end preparer;

(3) guaranteed the payment of any tax refund or the allowance of any tax credit; deleted text begin or
deleted text end

new text begin (4) violated a cease and desist order issued by the commissioner; or
new text end

deleted text begin (4)deleted text end new text begin (5)new text end engaged in any other fraudulent or deceptive conduct that substantially interferes
with the proper administration of a law administered by the commissioner, and injunctive
relief is appropriate to prevent the recurrence of that conductdeleted text begin ,deleted text end new text begin .
new text end

deleted text begin the court may enjoin the person from further engaging in that conduct.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims and returns filed after December
31, 2017.
new text end

Sec. 17.

Minnesota Statutes 2016, section 270C.447, subdivision 3, is amended to read:


Subd. 3.

Injunction prohibiting all business activities.

If the court finds that a tax
deleted text begin returndeleted text end preparer has continually or repeatedly engaged in conduct described in subdivision
2, and that an injunction prohibiting that conduct would not be sufficient to prevent the
person's interference with the proper administration of a law administered by the
commissioner, the court may enjoin the person from acting as a tax deleted text begin returndeleted text end preparer. The
court may not enjoin the employer of a tax deleted text begin returndeleted text end preparer for conduct described in
subdivision 2 engaged in by one or more of the employer's employees unless the employer
was also actively involved in that conduct.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims and returns filed after December
31, 2017.
new text end

Sec. 18.

Minnesota Statutes 2016, section 270C.447, is amended by adding a subdivision
to read:


new text begin Subd. 3a. new text end

new text begin Enforcement of cease and desist orders. new text end

new text begin (a) Whenever the commissioner
under subdivision 1 or 3 seeks to enforce compliance with a cease and desist order, the court
must consider the allegations in the cease and desist order conclusively established if the
order is a final order.
new text end

new text begin (b) If the court finds the tax preparer was not in compliance with a cease and desist order,
the court may impose a further civil penalty against the tax preparer for contempt in an
amount up to $10,000 for each violation and may grant any other relief the court determines
is just and proper in the circumstances. A civil penalty imposed by a court under this section
may be collected and enforced by the commissioner as an income tax liability.
new text end

new text begin (c) The court may not require the commissioner to post a bond in an action or proceeding
under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims and returns filed after December
31, 2017.
new text end

Sec. 19.

Minnesota Statutes 2016, section 289A.60, subdivision 13, is amended to read:


Subd. 13.

Penalties for tax deleted text begin returndeleted text end preparers.

(a) If an understatement of liability with
respect to a return or claim for refund is due to a reckless disregard of laws and rules or
willful attempt in any manner to understate the liability for a tax by a person who is a tax
deleted text begin returndeleted text end preparer with respect to the return or claim, the person shall pay to the commissioner
a penalty of $500. If a part of a deleted text begin property tax refunddeleted text end claim new text begin filed under section 290.0677,
subdivision 1, or chapter 290A
new text end is excessive due to a reckless disregard or willful attempt
in any manner to overstate the claim deleted text begin for reliefdeleted text end allowed deleted text begin under chapter 290Adeleted text end by a person who
is a tax deleted text begin refund or returndeleted text end preparer, the deleted text begin persondeleted text end new text begin tax preparernew text end shall pay to the commissioner a
penalty of $500 with respect to the claim. These penalties may not be assessed against the
employer of a tax deleted text begin returndeleted text end preparer unless the employer was actively involved in the reckless
disregard or willful attempt to understate the liability for a tax or to overstate the claim for
refund. These penalties are income tax liabilities and may be assessed at any time as provided
in section 289A.38, subdivision 5.

(b) A civil action in the name of the state of Minnesota may be commenced to enjoin
any person who is a tax deleted text begin returndeleted text end preparer doing business in this state as provided in section
270C.447.

(c) The commissioner may terminate or suspend a tax preparer's authority to transmit
returns electronically to the state, if the commissioner determines that the tax preparer has
engaged in a pattern and practice of conduct in violation of paragraph (a) of this subdivision
or has been convicted under section 289A.63.

(d) For purposes of this subdivision, the term "understatement of liability" means an
understatement of the net amount payable with respect to a tax imposed by state tax law,
or an overstatement of the net amount creditable or refundable with respect to a tax. The
determination of whether or not there is an understatement of liability must be made without
regard to any Previous administrative Next or judicial action involving the taxpayer. For purposes of this
subdivision, the amount determined for underpayment of estimated tax under either section
289A.25 or 289A.26 is not considered an understatement of liability.

(e) For purposes of this subdivision, the term "overstatement of claim" means an
overstatement of the net amount refundable with respect to a claim deleted text begin for property tax relief
provided by
deleted text end new text begin filed under section 290.0677, subdivision 1, ornew text end chapter 290A. The determination
of whether or not there is an overstatement of a claim must be made without regard to
Previous administrative Next or judicial action involving the claimant.

(f) For purposes of this section, the term deleted text begin "tax refund or return preparer"deleted text end deleted text begin means an
individual who prepares for compensation, or who employs one or more individuals to
prepare for compensation, a return of tax, or a claim for refund of tax. The preparation of
a substantial part of a return or claim for refund is treated as if it were the preparation of
the entire return or claim for refund. An individual is not considered a tax return preparer
merely because the individual:
deleted text end

deleted text begin (1) gives typing, reproducing, or other mechanical assistance;
deleted text end

deleted text begin (2) prepares a return or claim for refund of the employer, or an officer or employee of
the employer, by whom the individual is regularly and continuously employed;
deleted text end

deleted text begin (3) prepares a return or claim for refund of any person as a fiduciary for that person; or
deleted text end

deleted text begin (4) prepares a claim for refund for a taxpayer in response to a tax order issued to the
taxpayer.
deleted text end new text begin "tax preparer" or "preparer" has the meaning given in section 270C.445, subdivision
2, paragraph (h).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims and returns filed after December
31, 2017.
new text end

Sec. 20.

Minnesota Statutes 2016, section 289A.60, subdivision 28, is amended to read:


Subd. 28.

Preparer identification number.

deleted text begin Any Minnesota individual income tax return
or claim for refund prepared by a "tax refund or return preparer" as defined in subdivision
13, paragraph (f), shall bear the identification number the preparer is required to use federally
under section 6109(a)(4) of the Internal Revenue Code.
deleted text end new text begin (a) Each of the following that is
prepared by a tax preparer must include the tax preparer's tax identification number:
new text end

new text begin (1) a tax return required to be filed under this chapter;
new text end

new text begin (2) a claim filed under section 290.0677, subdivision 1, or chapter 290A; and
new text end

new text begin (3) a claim for refund of an overpayment.
new text end

new text begin (b) A tax preparer is not required to include their preparer tax identification number on
a filing if the number is not required in the forms or filing requirements provided by the
commissioner.
new text end

new text begin (c)new text end A tax deleted text begin refund or returndeleted text end preparer who deleted text begin prepares a Minnesota individual income tax
return or claim for refund and
deleted text end fails to include the deleted text begin requireddeleted text end new text begin preparer tax identification new text end number
deleted text begin on the return or claimdeleted text end new text begin as required by this sectionnew text end is subject to a penalty of $50 for each
failure.

new text begin (d) A tax preparer who fails to include the preparer tax identification number as required
by this section, and who is required to have a valid preparer tax identification number issued
under section 6109(a)(4) of the Internal Revenue Code, but does not have one, is subject to
a $500 penalty for each failure. A tax preparer subject to the penalty in this paragraph is
not subject to the penalty in paragraph (c).
new text end

new text begin (e) For the purposes of this subdivision, "tax preparer" has the meaning given in section
270C.445, subdivision 2, paragraph (h), and "preparer tax identification number" means
the number the tax preparer is required to use federally under section 6109(a)(4) of the
Internal Revenue Code.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims and returns filed after December
31, 2017.
new text end

Sec. 21. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin (a) The revisor of statutes shall renumber the provisions of Minnesota Statutes listed in
column A to the references listed in column B.
new text end

new text begin Column A
new text end
new text begin Column B
new text end
new text begin 270C.445, subdivision 3a
new text end
new text begin 270C.4451, subdivision 1
new text end
new text begin 270C.445, subdivision 4
new text end
new text begin 270C.4451, subdivision 2
new text end
new text begin 270C.445, subdivision 4a
new text end
new text begin 270C.4451, subdivision 3
new text end
new text begin 270C.445, subdivision 4b
new text end
new text begin 270C.4451, subdivision 4
new text end
new text begin 270C.445, subdivision 5b
new text end
new text begin 270C.4451, subdivision 5
new text end

new text begin (b) The revisor shall make necessary cross-reference changes in Minnesota Statutes and
Minnesota Rules consistent with the renumbering of Minnesota Statutes, section 270C.445,
subdivisions 3a, 4, 4a, 4b, and 5b.
new text end

new text begin (c) The revisor shall publish the statutory derivations of the laws renumbered in this act
in Laws of Minnesota and report the derivations in Minnesota Statutes.
new text end

new text begin (d) If Minnesota Statutes, section 270C.445, subdivisions 3a, 4, 4a, 4b, and 5b, are further
amended in the 2017 legislative session, the revisor shall codify the amendments in a manner
consistent with this act. The revisor may make necessary changes to sentence structure to
preserve the meaning of the text.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 22. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, sections 270C.445, subdivision 1; and 270C.447, subdivision
4,
new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims and returns filed after December
31, 2017.
new text end

APPENDIX

Repealed Minnesota Statutes: H0004-3

10A.322 SPENDING LIMIT AGREEMENTS.

Subd. 4.

Refund receipt forms; penalty.

(a) The board must make available to a political party on request and to any candidate for whom an agreement under this section is effective, a supply of official refund receipt forms that state in boldface type that:

(1) a contributor who is given a receipt form is eligible to claim a refund as provided in section 290.06, subdivision 23; and

(2) if the contribution is to a candidate, that the candidate has signed an agreement to limit campaign expenditures as provided in this section.

The forms must provide duplicate copies of the receipt to be attached to the contributor's claim.

(b) The willful issuance of an official refund receipt form or a facsimile of one to any of the candidate's contributors by a candidate or treasurer of a candidate who did not sign an agreement under this section is subject to a civil penalty of up to $3,000 imposed by the board.

(c) The willful issuance of an official refund receipt form or a facsimile to an individual not eligible to claim a refund under section 290.06, subdivision 23, is subject to a civil penalty of up to $3,000 imposed by the board.

(d) A violation of paragraph (b) or (c) is a misdemeanor.

13.4967 OTHER TAX DATA CODED ELSEWHERE.

Subd. 2.

Political contribution refund.

Certain political contribution refund data in the Revenue Department are classified under section 290.06, subdivision 23.

136A.129 GREATER MINNESOTA INTERNSHIP PROGRAM.

Subdivision 1.

Definitions.

(a) For the purposes of this section, the terms defined in this subdivision have the meanings given to them.

(b) "Eligible employer" means a taxpayer under section 290.01 with employees located in greater Minnesota.

(c) "Eligible institution" means a Minnesota public postsecondary institution or a Minnesota private, nonprofit, baccalaureate, or graduate degree-granting college or university.

(d) "Eligible student" means a student enrolled in an eligible institution who has completed one-half of the credits necessary for the respective degree or certification, including a graduate degree.

(e) "Greater Minnesota" means the area of the state outside of the counties of Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington, and Wright.

Subd. 2.

Program established.

The office shall administer a greater Minnesota internship program through eligible institutions to provide credit at the eligible institution for internships and tax credits for eligible employers who hire interns for employment in greater Minnesota.

Subd. 3.

Program components.

(a) An intern must be an eligible student who has been admitted to a major program that is related to the intern experience as determined by the eligible institution.

(b) To participate in the program, an eligible institution must:

(1) enter into written agreements with eligible employers to provide internships that are at least eight weeks long and located in greater Minnesota; and

(2) provide academic credit for the successful completion of the internship or ensure that it fulfills requirements necessary to complete a vocational technical education program.

(c) To participate in the program, an eligible employer must enter into a written agreement with an eligible institution specifying that the intern:

(1) would not have been hired without the tax credit described in subdivision 4;

(2) did not work for the employer in the same or a similar job prior to entering the agreement;

(3) does not replace an existing employee;

(4) has not previously participated in the program;

(5) will be employed at a location in greater Minnesota;

(6) will be paid at least minimum wage for a minimum of 16 hours per week for a period of at least eight weeks; and

(7) will be supervised and evaluated by the employer.

(d) The written agreement between the eligible institution and the eligible employer must certify a credit amount to the employer, not to exceed $2,000 per intern. The total dollar amount of credits that an eligible institution certifies to eligible employers in a calendar year may not exceed the amount of its allocation under subdivision 4.

(e) Participating eligible institutions and eligible employers must report annually to the office. The report must include at least the following:

(1) the number of interns hired;

(2) the number of hours and weeks worked by interns; and

(3) the compensation paid to interns.

(f) An internship required to complete an academic program does not qualify for the greater Minnesota internship program under this section.

Subd. 4.

Tax credit allowed.

An employer is entitled to a tax credit as provided in section 290.06, subdivision 36. The total amount of credits allocated in a calendar year must not exceed $2,000,000. The office shall determine relevant criteria to allocate the tax credits including the geographic distribution of credits to work locations outside the metropolitan area, and shall allocate credits to eligible institutions that meet the criteria on a first-come, first-served basis. Any credits allocated to an institution but not used may be reallocated to eligible institutions. The office shall allocate a portion of the Previous administrative Next fee under section 290.06, subdivision 36, to participating eligible institutions for their Previous administrative Next costs.

Subd. 5.

Reports to the legislature.

(a) By February 1, 2016, the office and the Department of Revenue shall report to the legislature on the greater Minnesota internship program. The report must include at least the following:

(1) the number and dollar amount of credits allowed;

(2) the number of interns employed under the program; and

(3) the cost of administering the program.

(b) By February 1, 2017, the office and the Department of Revenue shall report to the legislature with an analysis of the effectiveness of the program in stimulating businesses to hire interns and in assisting participating interns in finding permanent career positions. This report must include the number of students who participated in the program who were subsequently employed full-time by the employer.

205.10 MUNICIPAL SPECIAL ELECTIONS.

Subd. 3.

Prohibition.

No special election authorized under subdivision 1 may be held within 56 days after the state general election.

270.074 VALUATION OF FLIGHT PROPERTY; METHODS OF APPORTIONMENT; RATIO OF TAX.

Subd. 2.

Other apportionment methods.

The method prescribed by subdivision 1 shall be presumed to determine fairly and correctly the value of the flight property of an airline allocable to this state. Any airline aggrieved by the valuation of the flight property or the application to its case of the apportionment methods prescribed by subdivision 1, may petition the commissioner for determination of the valuation or the apportionment thereof to this state by the use of some other method. Thereupon, if the commissioner finds that the application of the methods prescribed by subdivision 1 will be unjust to the airline, the commissioner may allow the use of the methods so petitioned for by the airline, or may determine the valuation or apportionment thereof by other methods if satisfied that such other methods will fairly reflect such valuation or apportionment thereof.

270C.445 TAX PREPARATION SERVICES.

Subdivision 1.

Scope.

This section applies to a person who provides tax preparation services, except:

(1) a person who provides tax preparation services for fewer than ten clients in a calendar year;

(2) a person who provides tax preparation services only to immediate family members. For the purposes of this section, "immediate family members" means a spouse, parent, grandparent, child, or sibling;

(3) an employee who prepares a tax return for an employer's business;

(4) any fiduciary, or the regular employees of a fiduciary, while acting on behalf of the fiduciary estate, testator, trustor, grantor, or beneficiaries of them; and

(5) nonprofit organizations providing tax preparation services under the Internal Revenue Service Volunteer Income Tax Assistance Program or Tax Counseling for the Elderly Program.

270C.447 LEGAL ACTION TO ENJOIN TAX RETURN PREPARER.

Subd. 4.

Tax return preparer.

For purposes of this section, the term "tax return preparer" means an individual who prepares for compensation, or who employs one or more individuals to prepare for compensation, a return of tax or a claim for refund of tax. The preparation of a substantial part of a return or claim for refund is treated as if it were the preparation of the entire return or claim for refund. An individual is not considered a tax return preparer merely because the individual:

(1) gives typing, reproducing, or other mechanical assistance;

(2) prepares a return or claim for refund of the employer, or an officer or employee of the employer, by whom the individual is regularly and continuously employed;

(3) prepares a return or claim for refund of any person as a fiduciary for that person; or

(4) prepares a claim for refund for a taxpayer in response to a tax order issued to the taxpayer.

270C.9901 ASSESSOR ACCREDITATION.

Every individual who appraises or physically inspects real property for the purpose of determining its valuation or classification for property tax purposes must obtain licensure as an accredited Minnesota assessor from the State Board of Assessors by July 1, 2019, or within four years of that person having become licensed as a certified Minnesota assessor, whichever is later.

281.22 COUNTY AUDITOR TO GIVE NOTICE.

281.22 COUNTY AUDITOR TO GIVE NOTICE.

In case any parcel of land bid in for the state at any tax judgment sale heretofore held has not been sold or assigned to an actual purchaser by one year before the expiration of the stated period of redemption of such parcel, it shall be the duty of the county auditor thereupon forthwith to give notice of expiration of the time for redemption of such parcel, as herein provided. Such notice shall be given and all other things done with respect to all such parcels, as provided by section 281.23, except that the notice shall state that the time for redemption will expire one year after service of notice and the filing of proof thereof, instead of 60 days. Otherwise, all the provisions of section 281.23 shall apply to and govern the corresponding matters under this section.

The time for redemption of any parcel of land as to which notice of expiration has been given, as provided in this section, shall expire one year after the giving of such notice and the filing of proof thereof in the office of the county auditor, unless such parcel shall theretofore be assigned to an actual purchaser, as herein provided.

281.22 COUNTY AUDITOR TO GIVE NOTICE.

In case any parcel of land bid in for the state at any tax judgment sale heretofore held has not been sold or assigned to an actual purchaser by one year before the expiration of the stated period of redemption of such parcel, it shall be the duty of the county auditor thereupon forthwith to give notice of expiration of the time for redemption of such parcel, as herein provided. Such notice shall be given and all other things done with respect to all such parcels, as provided by section 281.23, except that the notice shall state that the time for redemption will expire one year after service of notice and the filing of proof thereof, instead of 60 days. Otherwise, all the provisions of section 281.23 shall apply to and govern the corresponding matters under this section.

The time for redemption of any parcel of land as to which notice of expiration has been given, as provided in this section, shall expire one year after the giving of such notice and the filing of proof thereof in the office of the county auditor, unless such parcel shall theretofore be assigned to an actual purchaser, as herein provided.

289A.10 FILING REQUIREMENTS FOR ESTATE TAX RETURNS.

Subd. 1a.

Recapture tax return required.

If a disposition or cessation as provided by section 291.03, subdivision 11, paragraph (a), has occurred, the qualified heir, as defined under section 291.03, subdivision 8, paragraph (c), or personal representative of the decedent's estate must submit a recapture tax return to the commissioner.

289A.12 FILING REQUIREMENTS FOR INFORMATION RETURNS AND REPORTS.

Subd. 18.

Returns by qualified heirs.

A qualified heir, as defined in section 291.03, subdivision 8, paragraph (c), must file two returns with the commissioner attesting that no disposition or cessation as provided by section 291.03, subdivision 11, paragraph (a), occurred. The first return must be filed no earlier than 24 months and no later than 26 months after the decedent's death. The second return must be filed no earlier than 36 months and no later than 39 months after the decedent's death.

289A.18 DUE DATES FOR FILING OF RETURNS.

Subd. 3a.

Recapture tax return.

A recapture tax return must be filed with the commissioner within six months after the date of the disposition or cessation as provided by section 291.03, subdivision 11, paragraph (a).

289A.20 DUE DATES FOR MAKING PAYMENTS OF TAX.

Subd. 3a.

Recapture tax.

The additional estate tax imposed by section 291.03, subdivision 11, paragraph (b), is due and payable on or before the expiration of the date provided by section 291.03, subdivision 11, paragraph (c).

290.06 RATES OF TAX; CREDITS.

Subd. 23.

Refund of contributions to political parties and candidates.

(a) A taxpayer may claim a refund equal to the amount of the taxpayer's contributions made in the calendar year to candidates and to a political party. The maximum refund for an individual must not exceed $50 and for a married couple, filing jointly, must not exceed $100. A refund of a contribution is allowed only if the taxpayer files a form required by the commissioner and attaches to the form a copy of an official refund receipt form issued by the candidate or party and signed by the candidate, the treasurer of the candidate's principal campaign committee, or the chair or treasurer of the party unit, after the contribution was received. The receipt forms must be numbered, and the data on the receipt that are not public must be made available to the campaign finance and public disclosure board upon its request. A claim must be filed with the commissioner no sooner than January 1 of the calendar year in which the contribution was made and no later than April 15 of the calendar year following the calendar year in which the contribution was made. A taxpayer may file only one claim per calendar year. Amounts paid by the commissioner after June 15 of the calendar year following the calendar year in which the contribution was made must include interest at the rate specified in section 270C.405.

(b) No refund is allowed under this subdivision for a contribution to a candidate unless the candidate:

(1) has signed an agreement to limit campaign expenditures as provided in section 10A.322;

(2) is seeking an office for which voluntary spending limits are specified in section 10A.25; and

(3) has designated a principal campaign committee.

This subdivision does not limit the campaign expenditures of a candidate who does not sign an agreement but accepts a contribution for which the contributor improperly claims a refund.

(c) For purposes of this subdivision, "political party" means a major political party as defined in section 200.02, subdivision 7, or a minor political party qualifying for inclusion on the income tax or property tax refund form under section 10A.31, subdivision 3a.

A "major party" or "minor party" includes the aggregate of that party's organization within each house of the legislature, the state party organization, and the party organization within congressional districts, counties, legislative districts, municipalities, and precincts.

"Candidate" means a candidate as defined in section 10A.01, subdivision 10, except a candidate for judicial office.

"Contribution" means a gift of money.

(d) The commissioner shall make copies of the form available to the public and candidates upon request.

(e) The following data collected or maintained by the commissioner under this subdivision are private: the identities of individuals claiming a refund, the identities of candidates to whom those individuals have made contributions, and the amount of each contribution.

(f) The commissioner shall report to the campaign finance and public disclosure board by each August 1 a summary showing the total number and aggregate amount of political contribution refunds made on behalf of each candidate and each political party. These data are public.

(g) The amount necessary to pay claims for the refund provided in this section is appropriated from the general fund to the commissioner of revenue.

(h) For a taxpayer who files a claim for refund via the Internet or other electronic means, the commissioner may accept the number on the official receipt as documentation that a contribution was made rather than the actual receipt as required by paragraph (a).

Subd. 36.

Greater Minnesota internship credit.

(a) A taxpayer who is an eligible employer may take a credit against the tax due under this chapter equal to the lesser of:

(1) 40 percent of the compensation paid to an intern qualifying under the program established under section 136A.129, but not to exceed $2,000 per intern; or

(2) the amount certified to the taxpayer by an eligible institution out of the institution's allocation of credits for the calendar year, as provided in section 136A.129.

(b) Credits allowed to a partnership, a limited liability company taxed as a partnership, an S corporation, or multiple owners of property are passed through to the partners, members, shareholders, or owners, respectively, pro rata to each partner, member, shareholder, or owner based on their share of the entity's income for the taxable year.

(c) If the amount of credit which the taxpayer is eligible to receive under this subdivision exceeds the taxpayer's tax liability under this chapter, the commissioner of revenue shall refund the excess to the taxpayer.

(d) An amount necessary to pay claims for refund provided in this subdivision is appropriated from the general fund to the commissioner of revenue.

(e) An amount equal to one percent of the total amount of the credits authorized under section 136A.129, subdivision 4, for an Previous administrative Next fee for the Office of Higher Education and participating eligible institutions is appropriated from the general fund to the commissioner of revenue, for a transfer to the Office of Higher Education.

(f) For purposes of this subdivision, the terms "eligible employer" and "eligible institution" have the meanings given in section 136A.129.

290.067 DEPENDENT CARE CREDIT.

Subd. 2.

Limitations.

The credit for expenses incurred for the care of each dependent shall not exceed $720 in any taxable year, and the total credit for all dependents of a claimant shall not exceed $1,440 in a taxable year. The maximum total credit shall be reduced according to the amount of the income of the claimant and a spouse, if any, as follows:

income up to $18,040, $720 maximum for one dependent, $1,440 for all dependents;

income over $18,040, the maximum credit for one dependent shall be reduced by $18 for every $350 of additional income, $36 for all dependents.

The commissioner shall construct and make available to taxpayers tables showing the amount of the credit at various levels of income and expenses. The tables shall follow the schedule contained in this subdivision, except that the commissioner may graduate the transitions between expenses and income brackets.

290.9743 ELECTION BY FASIT.

An entity having a valid election as a financial asset securitization investment trust in effect for a taxable year under section 860L(a) of the Internal Revenue Code shall not be subject to the taxes imposed by this chapter, except the tax imposed under section 290.92.

290.9744 FASIT INCOME TAXABLE TO HOLDERS OF INTERESTS.

The income of a financial asset securitization investment trust is taxable to the holders of interests in the financial asset securitization investment trust as provided in sections 860H to 860L of the Internal Revenue Code. The income of the holders must be computed under the provisions of this chapter.

290C.02 DEFINITIONS.

Subd. 5.

Current use value.

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

Subd. 9.

Capitalization rate.

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

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

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

291.03 RATES.

Subd. 8.

Definitions.

(a) For purposes of this section, the following terms have the meanings given in this subdivision.

(b) "Family member" means a family member as defined in section 2032A(e)(2) of the Internal Revenue Code, or a trust whose present beneficiaries are all family members as defined in section 2032A(e)(2) of the Internal Revenue Code.

(c) "Qualified heir" means a family member who acquired qualified property upon the death of the decedent and satisfies the requirement under subdivision 9, clause (7), or subdivision 10, clause (5), for the property.

(d) "Qualified property" means qualified small business property under subdivision 9 and qualified farm property under subdivision 10.

Subd. 9.

Qualified small business property.

Property satisfying all of the following requirements is qualified small business property:

(1) The value of the property was included in the Previous federal Next adjusted taxable estate.

(2) The property consists of the assets of a trade or business or shares of stock or other ownership interests in a corporation or other entity engaged in a trade or business. Shares of stock in a corporation or an ownership interest in another type of entity do not qualify under this subdivision if the shares or ownership interests are traded on a public stock exchange at any time during the three-year period ending on the decedent's date of death. For purposes of this subdivision, an ownership interest includes the interest the decedent is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code.

(3) During the taxable year that ended before the decedent's death, the trade or business must not have been a passive activity within the meaning of section 469(c) of the Internal Revenue Code, and the decedent or the decedent's spouse must have materially participated in the trade or business within the meaning of section 469(h) of the Internal Revenue Code, excluding section 469(h)(3) of the Internal Revenue Code and any other provision provided by United States Treasury Department regulation that substitutes material participation in prior taxable years for material participation in the taxable year that ended before the decedent's death.

(4) The gross annual sales of the trade or business were $10,000,000 or less for the last taxable year that ended before the date of the death of the decedent.

(5) The property does not consist of cash, cash equivalents, publicly traded securities, or assets not used in the operation of the trade or business. For property consisting of shares of stock or other ownership interests in an entity, the value of cash, cash equivalents, publicly traded securities, or assets not used in the operation of the trade or business held by the corporation or other entity must be deducted from the value of the property qualifying under this subdivision in proportion to the decedent's share of ownership of the entity on the date of death.

(6) The decedent continuously owned the property, including property the decedent is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code, for the three-year period ending on the date of death of the decedent. In the case of a sole proprietor, if the property replaced similar property within the three-year period, the replacement property will be treated as having been owned for the three-year period ending on the date of death of the decedent.

(7) For three years following the date of death of the decedent, the trade or business is not a passive activity within the meaning of section 469(c) of the Internal Revenue Code, and a family member materially participates in the operation of the trade or business within the meaning of section 469(h) of the Internal Revenue Code, excluding section 469(h)(3) of the Internal Revenue Code and any other provision provided by United States Treasury Department regulation that substitutes material participation in prior taxable years for material participation in the three years following the date of death of the decedent.

(8) The estate and the qualified heir elect to treat the property as qualified small business property and agree, in the form prescribed by the commissioner, to pay the recapture tax under subdivision 11, if applicable.

Subd. 10.

Qualified farm property.

Property satisfying all of the following requirements is qualified farm property:

(1) The value of the property was included in the Previous federal Next adjusted taxable estate.

(2) The property consists of agricultural land and is owned by a person or entity that is either not subject to or is in compliance with section 500.24.

(3) For property taxes payable in the taxable year of the decedent's death, the property is classified as class 2a property under section 273.13, subdivision 23, and is classified as agricultural homestead, agricultural relative homestead, or special agricultural homestead under section 273.124.

(4) The decedent continuously owned the property, including property the decedent is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code, for the three-year period ending on the date of death of the decedent either by ownership of the agricultural land or pursuant to holding an interest in an entity that is not subject to or is in compliance with section 500.24.

(5) The property is classified for property tax purposes as class 2a property under section 273.13, subdivision 23, for three years following the date of death of the decedent.

(6) The estate and the qualified heir elect to treat the property as qualified farm property and agree, in a form prescribed by the commissioner, to pay the recapture tax under subdivision 11, if applicable.

Subd. 11.

Recapture tax.

(a) If, within three years after the decedent's death and before the death of the qualified heir, the qualified heir disposes of any interest in the qualified property, other than by a disposition to a family member, or a family member ceases to satisfy the requirement under subdivision 9, clause (7); or 10, clause (5), an additional estate tax is imposed on the property. In the case of a sole proprietor, if the qualified heir replaces qualified small business property excluded under subdivision 9 with similar property, then the qualified heir will not be treated as having disposed of an interest in the qualified property.

(b) The amount of the additional tax equals the amount of the exclusion claimed by the estate under subdivision 8, paragraph (d), multiplied by 16 percent.

(c) The additional tax under this subdivision is due on the day which is six months after the date of the disposition or cessation in paragraph (a).

297A.992 METROPOLITAN TRANSPORTATION AREA SALES TAX.

Subd. 12.

Grant awards to Metropolitan Council.

Any grant award under this section made to the Metropolitan Council must supplement, and must not supplant, operating and capital assistance provided by the state.

297F.05 RATES OF TAX; PERSONAL DEBT.

Subd. 1a.

Annual indexing.

(a) Each year the commissioner shall adjust the tax rates under subdivision 1, including any adjustment made in prior years under this subdivision, by multiplying the mill rates for the current calendar year by an adjustment factor and rounding the result to the nearest mill. The adjustment factor equals the in-lieu sales tax rate that applies to the following calendar year divided by the in-lieu sales tax rate for the current calendar year. For purposes of this subdivision, "in-lieu sales tax rate" means the tax rate established under section 297F.25, subdivision 1. For purposes of the calculations under this subdivision to be made in any year in which an increase in the Previous federal Next or state excise tax on cigarettes is implemented, the commissioner shall exclude from the calculated average price for the current year an amount equal to any increase in the state or Previous federal Next excise tax rate.

(b) The commissioner shall publish the resulting rate by November 1 and the rate applies to sales made on or after January 1 of the following year.

(c) The determination of the commissioner under this subdivision is not a rule and is not subject to the Previous Administrative Next Procedure Act in chapter 14.

477A.085 DEBT SERVICE AID; CITY OF MINNEAPOLIS.

On or before November 1, 2016, and the first day of each November thereafter, the commissioner shall pay to the city of Minneapolis an amount equal to 40 percent of the city's otherwise required levy to pay its general obligation library referendum bonds for the following calendar year. The levy excludes any amount to pay bonds, other than refunding bonds, issued after May 1, 2013. An amount sufficient to pay the aid under this section is appropriated from the general fund to the commissioner of revenue.

477A.20 DEBT SERVICE AID; LEWIS AND CLARK JOINT POWERS BOARD.

(a) The Lewis and Clark Joint Powers Board is eligible to receive an aid distribution under this section equal to (1) the principal and interest payable in the succeeding calendar year for bonds issued under section 469.194 minus the sum of (2) the combined adjusted net tax capacity of Rock County and Nobles County for the assessment year prior to the aid payable year multiplied by 1.5 percent and (3) 50 percent of any Previous federal Next aid received to fund the project in the calendar year. The board shall certify to the commissioner of revenue any Previous federal Next aid allocated to the project for the calendar year and the principal and interest due in the succeeding calendar year by June 1 of the aid payable year. The commissioner of revenue shall calculate the aid payable under this section and certify the amount payable before July 1 of the aid distribution year. The commissioner shall pay the aid under this section to the board at the times specified for payments of local government aid in section 477A.015. An amount sufficient to pay the state aid authorized under this section is annually appropriated to the commissioner from the general fund.

(b) The board must allocate the aid to the municipalities issuing bonds under section 469.194 in proportion to their principal and interest payments.

(c) If the deduction under paragraph (a), clause (3), eliminates the aid payment under this section in a calendar year, then the excess of the deduction must be carried over and used to reduce the principal and interest in the succeeding year or years used to calculate aid under paragraph (a).

(d) If Previous federal Next grants and aid received for the project, not deducted under paragraph (a), clause (3), exceed the total debt service payments for bonds issued under section 469.194, other than payments made with state aid under this section, the joint powers board must repay any excess to the commissioner of revenue for deposit in the general fund. The repayment may not exceed the sum of state aid payments under this section and any other grants made by the state for the project.

(e) This section expires at the earlier of January 1, 2039, or when the bonds authorized under section 469.194 have been paid or defeased.

Repealed Minnesota Rule: H0004-3

4503.1400 PUBLIC SUBSIDY AGREEMENTS.

Subp. 4.

Effect on right to participate in political contribution refund program.

The right to issue receipts under the political contribution refund program established in Minnesota Statutes, section 290.06, subdivision 23, arises only when the public subsidy agreement is actually signed.

8092.1400 ANNUAL RETURNS.

Subpart 1.

General rule.

If an employer deducts and withholds an amount required by Minnesota Statutes, chapter 290, for a base year and the amount required is $500 or less, the employer, for the qualifying year, may elect to file an annual return and make an annual payment of the amount required to be deducted and withheld in that calendar year and is thereafter relieved from filing quarterly returns and making quarterly payments. The annual return and payment are due on or before February 28 of the calendar year following the calendar year the amounts were deducted and withheld. The annual return will serve as the reconciliation required in Minnesota Statutes, section 289A.09, subdivision 2, paragraph (d), for those employers who have elected to file an annual return. The Department of Revenue, applying the criteria of this part, will annually determine which employers are eligible to file an annual return and notify those employers who qualify. Employers who have not filed all withholding tax returns required for the base year are not eligible to file an annual return. Only those employers so notified by the Department of Revenue are eligible to elect to file an annual return. At the time of notification, eligible employers may still elect to file returns and make deposits quarterly. Employers who make such election are required to make all returns and deposits required by Minnesota Statutes, chapter 289A, and will be subject to all applicable penalties.

Subp. 2.

Base year.

"Base year" means the most recent period of four consecutive quarters for which the Department of Revenue has compiled data on all employers withholding tax for that period. The first base year is the four-consecutive quarter period beginning January 1990 and ending December 1990.

Subp. 3.

Qualifying year.

"Qualifying year" means the calendar year for which the Department of Revenue notifies the employer that it is eligible to file an annual return. The first qualifying year is the 1992 calendar year.

Subp. 4.

Accelerated deposits.

If, at the end of any calendar month other than the last month of the calendar year, the aggregate amount of undeposited withholding tax withheld by an employer who has elected to file an annual return exceeds $500, the employer must deposit the aggregate amount with the Department of Revenue within 30 days after the close of the calendar month.

Notwithstanding any other provision of this part, employers are subject to the eighth-monthly period deposit requirements of Minnesota Statutes, section 289A.20.

In the event an employer who has elected to file an annual return pursuant to this part permanently ceases to pay wages for which withholding of tax is required, the employer must file a final return and deposit any undeposited tax on or before the last day of the month following the month in which the discontinuance of such activity occurred.

Subp. 5.

Maximum withholding amount.

The commissioner of revenue shall annually recalculate the maximum withholding amount for annual filing, using the percentage calculated pursuant to Minnesota Statutes, section 290.06, subdivision 2d, paragraph (b). If the maximum withholding amount so calculated is more than $100 above the maximum withholding amount for annual filing then in effect, the maximum withholding amount for annual filing must be increased by $100. If the maximum withholding amount so calculated is less than $100 above the maximum withholding amount then in effect, there shall be no change in the maximum withholding amount then in effect. When the maximum withholding amount is adjusted by the commissioner under this subpart, the maximum withholding amounts referred to in subparts 1 and 4 must be adjusted by the same amount by the commissioner.

8092.2000 CONTRACTS WITH STATE; WITHHOLDING; CERTIFICATION.

Minnesota Statutes, section 270C.66 provides that no department of the state of Minnesota nor any political or governmental subdivision thereof shall make final settlement with any contractor, under a contract requiring the employment of employees for wages by said contractor, until satisfactory showing is furnished to said department or governmental subdivision that the contractor in question has complied with the withholding provisions of Minnesota Statutes, section 290.92. The statute further provides that a certificate issued by the commissioner of revenue shall satisfy this requirement.

The provisions of the statute are prospective in their effect and apply only to contracts executed after April 7, 1961. To facilitate the obtaining of the certification provided for by Minnesota Statutes, section 270C.66 the commissioner has made available form IC134. This form is in two parts, the first section thereof is in the form of an affidavit to be executed by a prime contractor or subcontractor and the second portion thereof is the commissioner's certification. The affidavit portion of the form in any event requires that certain identifying information be set forth by the affiant such as the name of the contractor, the address, withholding identification number, the number of the contract or contracts involved and the name of the department of the state or governmental subdivision with whom the contractor has contracted. The affidavit itself is divided into two parts A and B and it is intended that part A will be executed by both a prime contractor or subcontractor with respect to the employees of such prime contractor or subcontractor.

Part B of said affidavit is to be executed only by a prime contractor who has utilized subcontractors in completing a contract with the state or governmental subdivision thereof. In such a case it is contemplated that each subcontractor will execute part A of the affidavit on form IC134 and obtain from the commissioner certification with respect to such subcontractor's own employees. This copy of form IC134 certified to with respect to the subcontractor's employees will be given to the prime contractor who should keep such affidavit and certification in the prime contractor's own files. When the prime contractor has received such an affidavit and certification from all of the subcontractors on the contract, the prime contractor will then be in a position to execute part B of the affidavit as well as part A and obtain a certification from the commissioner as to the prime contractor's own employees. This form IC134, when both parts A and B have been executed by the prime contractor and certified to by the commissioner, should then be delivered to the department or governmental subdivision in satisfaction of the requirements of Minnesota Statutes, section 270C.66.

The withholding section of the Department of Revenue will process these affidavits and any requests for form IC134 or inquiries relative to their use and application should be directed to this part.

8100.0700 EQUALIZATION.

Subpart 1.

In general.

After the apportionment of value referred to in part 8100.0600has been made, the values of structures valued by the commissioner must be equalized to coincide with the assessment levels of commercial and industrial property within each respective county receiving a share of the apportioned utilities value. This equalization will be accomplished through the use of an assessment/sales ratio.

Subp. 2.

Assessment/sales ratio computation.

A comprehensive assessment/sales ratio study compiled annually by the sales ratio section of the Local Government Services Division of the Department of Revenue will be used in this computation. The portions of this study which will be used for purposes of this part are known as the "County Commercial and Industrial Sales Ratio."

This commercial and industrial (C & I) sales ratio is computed through an analysis of the certificates of real estate value filed by the buyers or sellers of commercial or industrial property within each county. The information contained on these certificates of real estate value is compiled pursuant to requests, standards, and methods set forth by the Minnesota Department of Revenue acting upon recommendations of the Minnesota Legislature. The most recent C & I study available will be used for purposes of this part.

The median C & I sales ratio from this County Commercial and Industrial Sales Ratio study will be used as a basis to estimate the current year C & I median ratio for each county.

The process used to estimate this current year median ratio will be as follows:

The State Board of Equalization abstract of market value will be examined. The current estimated market value of commercial and industrial property within each county will be taken from this abstract. The amount of the value of new commercial and industrial construction ("new" meaning since the last assessment period), as well as the value of commercial and industrial property which has changed classification (for example, commercial to tax exempt property) will also be taken from the abstract. The value of new construction will then be deducted from the estimated market value, resulting in a net estimated current year market value for commercial and industrial property within the county. The value of commercial and industrial property which has changed classification will be deducted from the previous years estimated market value to arrive at a net estimated previous year market value for commercial and industrial property within the county. The net current year value will be compared to the net previous year's estimated market value for commercial and industrial property within the county and the difference between the two values noted. This difference will be divided by the previous year's net estimated market value for commercial and industrial property to find the percentage of increase, or decrease, in assessment level for each year. This percent of change will be applied to the most recent C & I median ratio to estimate the current year's C & I median ratio. An example of this calculation for a typical county is shown below.

1990 E.M.V. for Commercial and
Industrial Property $12,000,000
Less: New Construction 1,500,000
_
1990 Net E.M.V. for C & I property $ 10,500,000
1989 E.M.V. for C & I property $10,250,000
Less: Classification changes 250,000
_
1989 Net E.M.V. for C & I property 10,000,000
Difference 1989 vs 1990 E.M.V. 500,000
Percent of change (500,000/10,000,000) 5%
1989 Median C & I ratio 88%
1990 Estimated Median C & I ratio (88% x 105%) 92.4%

This same calculation is performed for each Minnesota county. If there are five or fewer valid sales of commercial and industrial property within a county during the study period, these few sales are insufficient to form the basis for a meaningful C & I ratio. Therefore, the median assessment/sales ratio to be used for purposes of the example computation in this subpart will not be the median C & I ratio but will be the weighted median ratio of all property classes within the county for which a sales ratio is available. This weighted median ratio is computed in the same manner using the same procedures and standards as the C & I ratio. In addition, the example computation in this subpart will not be performed using the commercial and industrial estimated market value but will use the estimated market value for all property within the county. All other aspects of the calculations are identical except for this substitution.

Class of Property Amount of Value Percent of Value Median Ratio Weighted Median Ratio
Residential $ 20,000,000 20% 86% 17.00%
Agricultural 55,000,000 55% 95% 52.25%
Seasonal - Recreational 5,000,000 5% 90% 4.50%
Commercial Industrial 20,000,000 20% 85% 17.00%
Total $100,000,000 100% 90.75%

Subp. 3.

Application of the estimated current year median assessment/sales ratio.

After the estimated current year median ratio has been calculated under subpart 2, it is used to adjust the apportioned estimated market value of utility structures valued by the commissioner. The value of these structures is reduced by the difference between 95 percent and the median ratio as adjusted in subpart 2. This is done by subtracting the current year median ratio, as adjusted, from the 95 percent provided for in Minnesota Statutes, section 278.05, subdivision 4, to arrive at an equalization factor. The estimated market value of utility structures is multiplied by the equalization factor to arrive at the reduction amount. The reduction amount is subtracted from the estimated market value of the utility structures to arrive at the equalized market value of structures. In no instance will any adjustment be made if, after comparing the current year median sales ratio as adjusted to the assessment level of utility structures, the difference between the two is ten percent or less. An example of this adjustment is as follows:

County A County B
Estimated Level of Assessment for Utility Property* 100.00% 100.00%
95 percent provided for in Minnesota Statutes, section 278.05, subdivision 4 95.00% 95.00%
County Commercial/Industrial Sales Ratio 87.00% 93.00%
Equalization Factor 8.00% 0.00%
Estimated Market Value of Structures 1,000,000 1,000,000
Reduction in Value 80,000 0
_ _
Equalized Market Value of Structures 920,000 1,000,000**
========== ==========

*For purposes of this example, assume that utility property is assessed at 100 percent of market value.

**No adjustment is made because the Estimated Current Year Median Sales Ratio is within ten percent of the assessment level of utility property.

All utilities operating within a particular county will be equalized at the same percentage. No adjustment for equalization will be made to machinery or personal property.

These equalized estimated market values of utility structures valued by the commissioner will be forwarded to the county assessor denoting specific utility companies and taxing districts together with personal property and machinery values pursuant to Minnesota Statutes.

8125.1300 REFUNDS AND CREDITS.

Subp. 3.

Gasoline used in aircraft.

Refunds for gasoline, other than aviation gasoline, purchased and used to produce or generate power for propelling aircraft shall be issued only to those claimants who have received approval to use such gasoline from the Previous Federal Aviation Administration as evidenced by a supplemental type certificate.