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Capital IconMinnesota Legislature

HF 4385

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 05/18/2018 10:50am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 1st Engrossment

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 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 4.1 4.2
4.3 4.4
4.5 4.6 4.7 4.8 4.9
4.10 4.11
4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31 4.32 5.1 5.2 5.3
5.4 5.5
5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21 5.22 5.23 5.24 5.25 5.26 5.27 5.28 5.29 5.30 5.31 5.32 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13 6.14 6.15 6.16 6.17 6.18 6.19 6.20 6.21 6.22
6.23 6.24
6.25 6.26 6.27 6.28 6.29 6.30 6.31 6.32 6.33 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 8.31 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 9.10 9.11 9.12 9.13 9.14 9.15 9.16 9.17 9.18 9.19 9.20 9.21 9.22 9.23 9.24 9.25 9.26
9.27 9.28 9.29 9.30 9.31
10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8
10.9
10.10 10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 10.20 10.21 10.22 10.23
10.24 10.25
10.26 10.27 10.28 10.29 10.30 10.31 10.32 11.1 11.2
11.3 11.4 11.5 11.6
11.7 11.8 11.9 11.10 11.11 11.12 11.13 11.14 11.15
11.16 11.17
11.18 11.19 11.20 11.21 11.22 11.23 11.24 11.25 11.26 11.27 11.28 11.29
11.30 11.31
12.1 12.2 12.3 12.4 12.5 12.6 12.7
12.8 12.9
12.10 12.11 12.12 12.13 12.14
12.15 12.16
12.17 12.18 12.19 12.20 12.21 12.22 12.23 12.24 12.25 12.26 12.27
12.28 12.29
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
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 14.32 14.33 15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8
15.9 15.10
15.11 15.12 15.13 15.14 15.15
15.16 15.17
15.18 15.19 15.20 15.21 15.22
15.23 15.24
15.25 15.26 15.27 15.28 15.29 15.30 15.31
16.1 16.2
16.3 16.4 16.5 16.6 16.7 16.8 16.9
16.10 16.11
16.12 16.13 16.14 16.15 16.16
16.17 16.18
16.19 16.20 16.21 16.22 16.23 16.24 16.25 16.26 16.27 16.28 16.29 16.30 16.31
17.1 17.2
17.3 17.4 17.5 17.6 17.7 17.8 17.9 17.10 17.11 17.12 17.13 17.14 17.15 17.16 17.17 17.18 17.19 17.20 17.21 17.22 17.23 17.24 17.25 17.26 17.27 17.28 17.29 17.30 17.31 18.1 18.2 18.3 18.4 18.5 18.6 18.7
18.8 18.9
18.10 18.11 18.12 18.13 18.14 18.15
18.16 18.17
18.18 18.19 18.20 18.21 18.22 18.23 18.24 18.25 18.26 18.27 18.28 18.29 18.30 18.31 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 20.1 20.2 20.3 20.4 20.5 20.6
20.7 20.8
20.9 20.10 20.11 20.12 20.13 20.14 20.15 20.16 20.17 20.18 20.19 20.20 20.21 20.22 20.23 20.24 20.25 20.26 20.27 20.28 20.29 20.30
20.31 20.32
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 23.1 23.2 23.3 23.4 23.5 23.6 23.7 23.8 23.9 23.10 23.11 23.12 23.13 23.14 23.15 23.16 23.17 23.18 23.19 23.20 23.21 23.22 23.23 23.24 23.25 23.26 23.27 23.28 23.29 23.30 23.31 24.1 24.2 24.3 24.4 24.5 24.6 24.7 24.8 24.9 24.10 24.11 24.12 24.13 24.14 24.15 24.16 24.17 24.18 24.19 24.20 24.21 24.22 24.23 24.24 24.25
24.26 24.27
24.28 24.29 24.30 24.31 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 25.31 25.32 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
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 29.31 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 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
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 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 36.1 36.2 36.3 36.4 36.5 36.6 36.7 36.8 36.9 36.10 36.11 36.12 36.13 36.14 36.15 36.16 36.17 36.18 36.19 36.20 36.21 36.22 36.23 36.24 36.25 36.26 36.27 36.28 36.29 36.30 36.31 37.1 37.2 37.3 37.4 37.5 37.6 37.7 37.8 37.9 37.10 37.11 37.12 37.13 37.14 37.15 37.16 37.17 37.18 37.19 37.20 37.21 37.22 37.23 37.24 37.25 37.26 37.27 37.28 37.29 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 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 40.1 40.2 40.3 40.4 40.5 40.6 40.7 40.8 40.9 40.10 40.11 40.12 40.13 40.14
40.15 40.16
40.17 40.18 40.19 40.20 40.21 40.22 40.23 40.24 40.25 40.26 40.27 40.28 40.29 40.30 40.31 40.32 41.1 41.2 41.3 41.4
41.5 41.6
41.7 41.8 41.9 41.10 41.11 41.12 41.13 41.14 41.15 41.16 41.17 41.18 41.19 41.20 41.21 41.22 41.23 41.24 41.25 41.26 41.27
41.28 41.29
42.1 42.2 42.3 42.4 42.5 42.6 42.7 42.9 42.8 42.11 42.10 42.13 42.12 42.15 42.14 42.17 42.16 42.19 42.18 42.20 42.21 42.22 42.23 42.24 42.25 42.26 42.27 42.28 42.29 42.30 42.32 42.31 42.34 42.33 42.36 42.35 42.38 42.37 42.40 42.39 42.42 42.41 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 43.32 43.33
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 44.32 44.33 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 45.32 45.33
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 47.1 47.2 47.3 47.4 47.5 47.6 47.7 47.8 47.9 47.10 47.11 47.12 47.13 47.14 47.15 47.16 47.17 47.18 47.19 47.20 47.21 47.22 47.23
47.24
47.25 47.26 47.27 47.28 47.29 47.30 47.31 47.32 47.33 48.1 48.2 48.3 48.4 48.5 48.6 48.7 48.8 48.9 48.10 48.11 48.12 48.13 48.14 48.15 48.16 48.17 48.18 48.19 48.20 48.21 48.22 48.23 48.24 48.25 48.26 48.27 48.28 48.29 48.30 48.31 49.1 49.2 49.3 49.4 49.5 49.6 49.7 49.8 49.9 49.10 49.11 49.12 49.13 49.14 49.15 49.16 49.17 49.18 49.19 49.20 49.21 49.22 49.23 49.24 49.25 49.26 49.27 49.28 49.29 49.30 49.31 50.1 50.2 50.3 50.4 50.5 50.6 50.7 50.8 50.9 50.10 50.11 50.12
50.13 50.14
50.15 50.16 50.17 50.18 50.19 50.20 50.21 50.22 50.23 50.24 50.25 50.26 50.27 50.28 50.29 50.30 50.31 50.32 51.1 51.2 51.3 51.4 51.5 51.6 51.7
51.8 51.9
51.10 51.11 51.12 51.13
51.14 51.15
51.16 51.17 51.18 51.19 51.20 51.21 51.22 51.23 51.24 51.25 51.26 51.27 51.28 51.29 51.30 51.31 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 53.32 53.33 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 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 56.30 56.31 56.32 56.33 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
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 59.29 59.30 59.31
60.1 60.2
60.3 60.4
60.5 60.6 60.7 60.8 60.9 60.10 60.11 60.12 60.13 60.14 60.15 60.16 60.17 60.18 60.19 60.20 60.21 60.22 60.23 60.24 60.25 60.26 60.27 60.28 60.29 60.30 60.31 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 61.32 61.33 61.34 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 62.32
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 63.32 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 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 68.1 68.2 68.3 68.4 68.5 68.6 68.7 68.8 68.9 68.10
68.11 68.12
68.13 68.14 68.15 68.16 68.17 68.18 68.19 68.20 68.21 68.22 68.23 68.24 68.25 68.26 68.27 68.28 68.29 68.30 68.31 69.1 69.2 69.3 69.4 69.5 69.6
69.7 69.8
69.9 69.10 69.11 69.12 69.13 69.14 69.15 69.16 69.17 69.18 69.19 69.20 69.21 69.22 69.23 69.24 69.25 69.26 69.27 69.28 69.29 69.30 69.31 70.1 70.2 70.3 70.4 70.5 70.6 70.7 70.8 70.9 70.10 70.11 70.12 70.13 70.14 70.15 70.16 70.17 70.18 70.19 70.20 70.21 70.22 70.23
70.24 70.25
70.26 70.27 70.28 70.29 70.30 70.31 70.32 70.33 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 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 73.1 73.2 73.3 73.4 73.5 73.6 73.7 73.8 73.9 73.10 73.11 73.12 73.13 73.14 73.15 73.16 73.17 73.18 73.19 73.20 73.21 73.22 73.23 73.24 73.25 73.26 73.27 73.28 73.29 73.30 73.31 73.32 73.33 73.34 73.35 74.1 74.2 74.3 74.4 74.5 74.6 74.7 74.8 74.9 74.10 74.11 74.12 74.13 74.14 74.15 74.16 74.17 74.18 74.19 74.20 74.21 74.22 74.23 74.24 74.25 74.26 74.27 74.28 74.29 74.30 74.31 74.32 74.33 74.34
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 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
77.1 77.2
77.3 77.4 77.5 77.6 77.7 77.8 77.9 77.10 77.11 77.12 77.13 77.14 77.15 77.16 77.17 77.18 77.19 77.20 77.21 77.22 77.23 77.24 77.25
77.26 77.27
77.28 77.29 77.30 77.31 78.1 78.2 78.3 78.4 78.5 78.6 78.7 78.8 78.9 78.10 78.11 78.12 78.13 78.14 78.15 78.16 78.17 78.18 78.19 78.20 78.21 78.22 78.23 78.24 78.25 78.26 78.27 78.28 78.29 78.30
78.31 78.32 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 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 85.1 85.2 85.3 85.4 85.5 85.6 85.7 85.8 85.9 85.10 85.11 85.12 85.13 85.14 85.15 85.16 85.17 85.18 85.19 85.20 85.21 85.22 85.23 85.24 85.25 85.26 85.27 85.28 85.29 85.30 85.31 85.32 85.33 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 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 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
91.1 91.2
91.3 91.4 91.5 91.6 91.7 91.8 91.9 91.10 91.11 91.12 91.13 91.14 91.15
91.16 91.17
91.18 91.19 91.20 91.21 91.22 91.23 91.24
91.25 91.26
91.27 91.28 91.29 91.30 91.31 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 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 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
95.1 95.2 95.3 95.4 95.5 95.6 95.7 95.8 95.9 95.10 95.11 95.12 95.13 95.14 95.15 95.16 95.17 95.18 95.19 95.20 95.21 95.22
95.23 95.24
95.25 95.26 95.27 95.28 95.29 95.30 95.31 96.1 96.2 96.3 96.4
96.5 96.6
96.7 96.8 96.9 96.10 96.11 96.12 96.13 96.14 96.15 96.16 96.17 96.18 96.19 96.20 96.21 96.22 96.23 96.24 96.25 96.26 96.27 96.28 96.29 96.30 96.31
96.32
97.1 97.2
97.3 97.4 97.5
97.6
97.7 97.8 97.9 97.10 97.11 97.12 97.13 97.14 97.15 97.16 97.17 97.18 97.19 97.20 97.21 97.22 97.23 97.24 97.25 97.26 97.27
97.28 97.29
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 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
100.1 100.2 100.3 100.4 100.5 100.6 100.7 100.8 100.9
100.10 100.11
100.12 100.13 100.14 100.15 100.16 100.17 100.18 100.19 100.20 100.21 100.22 100.23 100.24 100.25 100.26 100.27 100.28 100.29 100.30 100.31 100.32 100.33 101.1 101.2 101.3 101.4 101.5 101.6 101.7 101.8 101.9 101.10 101.11 101.12 101.13 101.14 101.15 101.16 101.17 101.18 101.19 101.20 101.21 101.22 101.23 101.24 101.25 101.26 101.27 101.28 101.29 101.30 101.31 101.32 101.33 101.34 102.1 102.2 102.3 102.4 102.5 102.6 102.7
102.8
102.9 102.10 102.11 102.12 102.13 102.14 102.15 102.16 102.17 102.18 102.19 102.20 102.21 102.22 102.23 102.24 102.25 102.26 102.27 102.28 102.29 102.30 102.31 102.32 103.1 103.2 103.3 103.4 103.5 103.6 103.7 103.8 103.9 103.10 103.11 103.12 103.13 103.14 103.15 103.16 103.17 103.18 103.19 103.20 103.21 103.22 103.23 103.24 103.25 103.26 103.27 103.28 103.29 103.30 103.31 103.32 104.1 104.2 104.3 104.4 104.5 104.6 104.7 104.8 104.9 104.10 104.11 104.12 104.13 104.14 104.15 104.16 104.17 104.18 104.19 104.20 104.21 104.22 104.23 104.24 104.25 104.26 104.27 104.28 104.29 104.30 104.31 104.32 104.33 105.1 105.2 105.3 105.4 105.5 105.6 105.7 105.8 105.9 105.10 105.11 105.12 105.13 105.14 105.15 105.16 105.17 105.18 105.19 105.20 105.21 105.22 105.23 105.24 105.25 105.26 105.27 105.28 105.29 105.30 105.31 105.32 106.1 106.2 106.3 106.4 106.5 106.6 106.7 106.8 106.9 106.10 106.11 106.12 106.13 106.14 106.15 106.16 106.17 106.18 106.19 106.20 106.21 106.22 106.23 106.24 106.25 106.26 106.27 106.28 106.29 106.30 106.31 107.1 107.2 107.3 107.4 107.5 107.6 107.7 107.8 107.9 107.10 107.11 107.12 107.13 107.14 107.15 107.16 107.17 107.18 107.19 107.20 107.21 107.22 107.23 107.24 107.25 107.26 107.27 107.28 107.29 107.30 107.31 108.1 108.2
108.3 108.4
108.5 108.6 108.7 108.8 108.9 108.10 108.11 108.12 108.13 108.14 108.15 108.16 108.17 108.18 108.19 108.20 108.21 108.22 108.23 108.24 108.25 108.26 108.27 108.28 108.29 108.30 108.31 108.32 109.1 109.2 109.3 109.4 109.5 109.6 109.7 109.8 109.9 109.10 109.11 109.12 109.13 109.14 109.15 109.16 109.17 109.18 109.19
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
110.2 110.3 110.4 110.5 110.6 110.7 110.8 110.9 110.10 110.11 110.12 110.13 110.14 110.15 110.16 110.17 110.18 110.19 110.20 110.21 110.22 110.23 110.24 110.25 110.26 110.27 110.28 110.29 110.30 110.31 110.32 111.1 111.2 111.3 111.4 111.5 111.6 111.7 111.8 111.9 111.10 111.11 111.12 111.13 111.14 111.15 111.16 111.17 111.18 111.19 111.20 111.21 111.22 111.23 111.24 111.25 111.26 111.27 111.28 111.29 111.30 111.31 111.32 111.33 111.34 111.35 111.36 112.1 112.2 112.3 112.4 112.5 112.6 112.7 112.8 112.9 112.10 112.11 112.12 112.13 112.14 112.15 112.16 112.17 112.18 112.19 112.20 112.21 112.22 112.23 112.24 112.25 112.26
112.27
112.28 112.29 112.30 112.31 112.32 112.33 113.1 113.2 113.3 113.4 113.5 113.6 113.7 113.8 113.9 113.10 113.11 113.12 113.13 113.14 113.15 113.16 113.17 113.18 113.19 113.20 113.21 113.22 113.23 113.24 113.25 113.26 113.27 113.28 113.29 113.30 113.31 113.32 113.33 113.34 113.35 114.1 114.2 114.3 114.4 114.5 114.6 114.7 114.8 114.9 114.10 114.11 114.12 114.13 114.14 114.15 114.16 114.17 114.18 114.19 114.20 114.21 114.22 114.23 114.24 114.25 114.26 114.27 114.28 114.29 114.30 114.31 114.32 114.33 114.34 115.1 115.2 115.3 115.4 115.5 115.6 115.7 115.8 115.9 115.10 115.11 115.12 115.13 115.14 115.15 115.16 115.17 115.18 115.19 115.20 115.21 115.22 115.23 115.24 115.25 115.26 115.27 115.28 115.29 115.30 115.31 116.1 116.2 116.3 116.4 116.5 116.6 116.7 116.8 116.9 116.10 116.11 116.12 116.13 116.14 116.15 116.16 116.17 116.18 116.19 116.20 116.21 116.22 116.23 116.24 116.25 116.26 116.27 116.28 116.29 116.30 116.31 116.32 117.1 117.2 117.3 117.4 117.5 117.6 117.7 117.8 117.9 117.10 117.11 117.12 117.13 117.14 117.15 117.16 117.17 117.18 117.19 117.20 117.21 117.22 117.23 117.24 117.25 117.26 117.27 117.28 117.29 117.30 117.31 117.32 117.33 118.1 118.2 118.3 118.4 118.5 118.6 118.7 118.8 118.9 118.10 118.11 118.12 118.13 118.14 118.15 118.16 118.17 118.18 118.19 118.20 118.21 118.22 118.23 118.24 118.25 118.26 118.27 118.28 118.29 118.30 118.31 118.32 118.33 119.1 119.2 119.3 119.4 119.5
119.6
119.7 119.8 119.9 119.10 119.11 119.12 119.13 119.14 119.15 119.16 119.17 119.18 119.19 119.20 119.21 119.22 119.23 119.24 119.25 119.26 119.27 119.28 119.29 119.30 119.31 120.1 120.2 120.3 120.4 120.5 120.6 120.7 120.8 120.9 120.10 120.11 120.12 120.13 120.14 120.15 120.16 120.17 120.18 120.19 120.20 120.21 120.22 120.23 120.24 120.25 120.26 120.27 120.28 120.29 120.30 120.31 120.32 120.33 120.34 120.35 121.1 121.2 121.3 121.4 121.5 121.6 121.7 121.8 121.9 121.10 121.11 121.12 121.13 121.14 121.15 121.16 121.17 121.18 121.19 121.20 121.21 121.22 121.23 121.24 121.25 121.26 121.27 121.28 121.29 121.30 121.31 121.32 121.33 122.1 122.2 122.3 122.4 122.5 122.6 122.7 122.8 122.9 122.10 122.11 122.12 122.13 122.14 122.15 122.16 122.17 122.18 122.19 122.20 122.21 122.22 122.23 122.24 122.25 122.26 122.27 122.28 122.29 122.30 122.31 122.32 122.33 122.34 123.1 123.2 123.3 123.4 123.5 123.6 123.7 123.8 123.9 123.10 123.11 123.12 123.13 123.14 123.15 123.16 123.17 123.18 123.19 123.20 123.21 123.22 123.23 123.24 123.25 123.26 123.27 123.28 123.29 123.30 123.31 124.1 124.2 124.3 124.4 124.5 124.6 124.7 124.8 124.9 124.10 124.11 124.12 124.13 124.14 124.15 124.16 124.17 124.18 124.19 124.20 124.21 124.22 124.23 124.24 124.25 124.26 124.27 124.28 124.29 124.30 124.31 124.32 124.33 124.34 124.35 125.1 125.2 125.3 125.4 125.5 125.6 125.7 125.8 125.9 125.10 125.11 125.12 125.13 125.14 125.15 125.16 125.17 125.18 125.19 125.20 125.21 125.22 125.23 125.24 125.25 125.26 125.27 125.28 125.29
125.30
125.31 125.32 125.33 125.34 126.1 126.2 126.3 126.4 126.5 126.6 126.7 126.8 126.9 126.10 126.11 126.12 126.13 126.14 126.15 126.16 126.17 126.18 126.19 126.20 126.21 126.22 126.23 126.24 126.25 126.26 126.27 126.28 126.29 126.30 126.31 126.32 126.33 127.1 127.2 127.3 127.4 127.5 127.6 127.7 127.8 127.9 127.10 127.11 127.12 127.13 127.14 127.15 127.16 127.17 127.18 127.19 127.20 127.21 127.22 127.23 127.24 127.25 127.26 127.27 127.28 127.29 127.30 127.31 127.32 128.1 128.2 128.3 128.4 128.5 128.6 128.7 128.8 128.9 128.10 128.11 128.12 128.13 128.14 128.15 128.16 128.17 128.18 128.19 128.20 128.21 128.22 128.23 128.24 128.25 128.26
128.27 128.28
128.29 128.30 128.31 129.1 129.2 129.3 129.4 129.5 129.6 129.7 129.8 129.9 129.10 129.11 129.12 129.13 129.14 129.15 129.16 129.17 129.18 129.19 129.20
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
131.1 131.2 131.3 131.4 131.5 131.6 131.7 131.8 131.9 131.10 131.11 131.12 131.13 131.14 131.15 131.16 131.17 131.18 131.19 131.20 131.21 131.22 131.23 131.24 131.25 131.26 131.27 131.28 131.29 131.30 131.31 131.32 131.33 131.34 131.35 132.1 132.2 132.3 132.4 132.5 132.6 132.7 132.8 132.9 132.10 132.11 132.12
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
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
134.22 134.23 134.24 134.25 134.26 134.27 134.28 134.29 135.1 135.2 135.3
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
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
136.25 136.26 136.27 136.28 136.29 136.30 137.1 137.2 137.3 137.4 137.5 137.6 137.7 137.8 137.9 137.10 137.11 137.12 137.13 137.14 137.15 137.16 137.17 137.18 137.19 137.20 137.21 137.22 137.23 137.24 137.25 137.26 137.27 137.28 137.29 137.30 137.31 137.32 137.33 137.34 138.1 138.2 138.3 138.4 138.5 138.6 138.7 138.8 138.9 138.10 138.11 138.12 138.13
138.14
138.15 138.16 138.17 138.18 138.19 138.20 138.21 138.22 138.23 138.24 138.25 138.26 138.27 138.28 138.29 138.30 138.31 138.32 138.33 139.1 139.2 139.3 139.4 139.5 139.6 139.7 139.8 139.9 139.10 139.11 139.12 139.13 139.14 139.15 139.16 139.17 139.18 139.19
139.20
139.21 139.22 139.23 139.24 139.25 139.26 139.27
139.28
139.29 139.30 139.31 140.1 140.2 140.3 140.4 140.5 140.6 140.7 140.8 140.9 140.10 140.11 140.12 140.13 140.14 140.15 140.16 140.17 140.18 140.19 140.20 140.21
140.22
140.23 140.24 140.25 140.26 140.27 140.28 140.29 140.30 140.31 140.32 141.1 141.2 141.3 141.4 141.5 141.6
141.7
141.8 141.9 141.10 141.11 141.12 141.13 141.14 141.15 141.16 141.17 141.18 141.19
141.20
141.21 141.22 141.23 141.24 141.25 141.26 141.27 141.28 141.29 141.30 141.31 142.1 142.2 142.3 142.4 142.5 142.6 142.7 142.8 142.9 142.10 142.11 142.12 142.13 142.14 142.15 142.16 142.17 142.18 142.19
142.20
142.21 142.22 142.23 142.24 142.25 142.26 142.27 142.28 142.29 142.30 142.31 142.32 142.33
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
144.1 144.2 144.3 144.4 144.5 144.6 144.7 144.8 144.9 144.10 144.11 144.12 144.13 144.14 144.15 144.16 144.17 144.18 144.19 144.20 144.21 144.22 144.23 144.24 144.25 144.26 144.27 144.28 144.29 144.30 144.31 144.32 145.1 145.2 145.3 145.4 145.5 145.6 145.7 145.8 145.9 145.10 145.11 145.12 145.13 145.14 145.15 145.16 145.17 145.18 145.19 145.20 145.21 145.22 145.23 145.24 145.25 145.26 145.27 145.28 145.29 145.30 145.31 145.32 145.33 146.1 146.2 146.3 146.4 146.5 146.6 146.7 146.8 146.9 146.10 146.11 146.12 146.13 146.14 146.15 146.16 146.17 146.18 146.19 146.20 146.21 146.22 146.23 146.24 146.25 146.26 146.27 146.28 146.29 146.30 146.31 146.32 146.33 146.34
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
147.28 147.29 147.30 147.31 147.32 148.1 148.2 148.3 148.4 148.5 148.6 148.7 148.8 148.9 148.10 148.11 148.12 148.13 148.14 148.15 148.16 148.17 148.18 148.19 148.20 148.21 148.22 148.23 148.24 148.25 148.26 148.27 148.28 148.29 148.30 148.31 148.32 148.33 148.34 149.1 149.2 149.3 149.4 149.5 149.6 149.7 149.8 149.9 149.10 149.11 149.12 149.13 149.14 149.15 149.16 149.17 149.18 149.19 149.20 149.21 149.22 149.23 149.24
149.25
149.26 149.27 149.28 149.29 149.30 149.31 149.32 149.33 150.1 150.2 150.3 150.4 150.5 150.6 150.7 150.8 150.9 150.10 150.11 150.12 150.13 150.14 150.15 150.16 150.17 150.18 150.19 150.20
150.21
150.22 150.23 150.24 150.25 150.26 150.27 150.28 150.29 150.30 150.31 150.32
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
152.7 152.8 152.9 152.10 152.11 152.12 152.13 152.14 152.15 152.16 152.17 152.18 152.19 152.20 152.21 152.22 152.23 152.24 152.25 152.26 152.27 152.28 152.29 152.30 152.31 152.32 153.1 153.2 153.3 153.4 153.5 153.6 153.7 153.8 153.9 153.10 153.11 153.12 153.13 153.14 153.15 153.16 153.17 153.18 153.19 153.20 153.21 153.22 153.23 153.24 153.25 153.26 153.27 153.28 153.29 153.30 153.31 153.32 153.33 153.34 153.35 153.36 154.1 154.2 154.3 154.4 154.5 154.6 154.7 154.8 154.9 154.10 154.11 154.12 154.13 154.14 154.15 154.16 154.17 154.18 154.19 154.20 154.21 154.22 154.23 154.24 154.25 154.26 154.27 154.28 154.29 154.30
154.31
155.1 155.2 155.3 155.4 155.5 155.6 155.7 155.8 155.9 155.10 155.11 155.12 155.13 155.14 155.15 155.16 155.17 155.18 155.19 155.20 155.21 155.22 155.23 155.24 155.25 155.26 155.27 155.28 155.29 155.30 155.31 155.32 155.33 155.34 156.1 156.2 156.3 156.4 156.5 156.6 156.7 156.8 156.9 156.10 156.11 156.12 156.13 156.14 156.15 156.16 156.17 156.18 156.19 156.20 156.21 156.22 156.23 156.24 156.25 156.26 156.27 156.28 156.29 156.30 156.31 156.32 156.33 156.34 156.35 157.1 157.2 157.3 157.4 157.5 157.6 157.7 157.8 157.9 157.10 157.11 157.12 157.13 157.14 157.15 157.16 157.17 157.18 157.19 157.20 157.21 157.22 157.23 157.24 157.25 157.26 157.27 157.28 157.29 157.30 157.31 157.32 158.1 158.2 158.3 158.4 158.5 158.6 158.7 158.8 158.9 158.10 158.11 158.12 158.13 158.14 158.15 158.16 158.17 158.18 158.19 158.20 158.21 158.22 158.23 158.24 158.25 158.26 158.27 158.28 158.29 158.30 158.31 159.1 159.2 159.3 159.4 159.5 159.6 159.7 159.8 159.9 159.10 159.11 159.12 159.13 159.14 159.15 159.16 159.17 159.18 159.19 159.20 159.21 159.22 159.23 159.24 159.25 159.26 159.27 159.28 159.29 159.30 159.31 160.1 160.2 160.3 160.4 160.5 160.6 160.7 160.8 160.9 160.10 160.11 160.12 160.13 160.14 160.15 160.16 160.17 160.18 160.19 160.20 160.21 160.22 160.23 160.24 160.25 160.26 160.27 160.28 160.29 160.30 160.31 160.32 160.33 161.1 161.2 161.3 161.4 161.5 161.6 161.7 161.8 161.9 161.10 161.11 161.12 161.13
161.14
161.15 161.16 161.17 161.18 161.19 161.20 161.21 161.22 161.23 161.24 161.25 161.26 161.27 161.28 161.29 161.30 161.31 161.32 162.1 162.2 162.3 162.4 162.5 162.6 162.7 162.8 162.9 162.10 162.11 162.12 162.13 162.14 162.15 162.16 162.17 162.18 162.19 162.20 162.21 162.22 162.23 162.24 162.25 162.26 162.27 162.28 162.29 162.30 162.31 162.32 162.33 162.34 163.1 163.2 163.3 163.4 163.5 163.6 163.7 163.8 163.9 163.10 163.11 163.12 163.13 163.14 163.15 163.16 163.17 163.18 163.19 163.20 163.21 163.22 163.23 163.24 163.25 163.26 163.27 163.28 163.29 163.30 163.31 163.32 163.33 163.34 163.35 163.36 164.1 164.2 164.3 164.4 164.5 164.6 164.7 164.8 164.9 164.10 164.11 164.12 164.13 164.14 164.15 164.16 164.17 164.18 164.19 164.20 164.21 164.22 164.23 164.24 164.25 164.26 164.27 164.28 164.29 164.30 164.31 164.32 164.33 164.34 165.1 165.2 165.3 165.4 165.5 165.6 165.7 165.8 165.9 165.10 165.11 165.12 165.13 165.14 165.15 165.16 165.17 165.18 165.19 165.20 165.21 165.22 165.23 165.24 165.25 165.26 165.27 165.28 165.29 165.30 165.31 165.32 165.33 166.1 166.2 166.3 166.4 166.5 166.6 166.7 166.8 166.9 166.10 166.11 166.12 166.13 166.14 166.15 166.16 166.17 166.18 166.19 166.20 166.21 166.22 166.23 166.24 166.25 166.26 166.27 166.28 166.29 166.30 166.31 166.32 166.33 167.1 167.2 167.3 167.4 167.5 167.6 167.7 167.8 167.9 167.10 167.11 167.12 167.13 167.14 167.15 167.16 167.17 167.18 167.19 167.20 167.21 167.22 167.23 167.24 167.25 167.26 167.27 167.28 167.29 167.30 167.31 167.32 168.1 168.2 168.3 168.4 168.5 168.6 168.7 168.8 168.9 168.10 168.11 168.12 168.13 168.14 168.15 168.16 168.17 168.18 168.19 168.20 168.21 168.22 168.23 168.24 168.25 168.26 168.27 168.28 168.29 168.30 168.31 168.32 168.33 168.34 169.1 169.2 169.3 169.4 169.5 169.6 169.7 169.8 169.9 169.10 169.11 169.12 169.13 169.14 169.15 169.16 169.17 169.18 169.19 169.20 169.21 169.22 169.23
169.24
169.25 169.26 169.27 169.28 169.29 169.30 169.31 169.32 169.33 170.1 170.2 170.3 170.4 170.5 170.6 170.7 170.8 170.9 170.10 170.11 170.12 170.13
170.14
170.15 170.16 170.17 170.18 170.19 170.20 170.21 170.22 170.23 170.24 170.25 170.26 170.27 170.28 170.29 170.30 170.31 170.32 171.1 171.2 171.3 171.4 171.5 171.6 171.7 171.8 171.9 171.10 171.11 171.12 171.13 171.14 171.15 171.16 171.17 171.18 171.19 171.20 171.21 171.22
171.23
171.24 171.25 171.26 171.27 171.28 171.29 171.30 171.31 172.1 172.2 172.3 172.4 172.5 172.6 172.7 172.8 172.9 172.10 172.11 172.12 172.13 172.14 172.15 172.16 172.17 172.18 172.19 172.20 172.21 172.22 172.23 172.24 172.25 172.26 172.27 172.28 172.29 172.30 172.31 172.32 172.33 172.34 172.35 173.1 173.2 173.3 173.4 173.5 173.6 173.7 173.8 173.9 173.10 173.11 173.12 173.13 173.14 173.15 173.16 173.17 173.18 173.19 173.20 173.21 173.22 173.23 173.24 173.25 173.26 173.27 173.28 173.29
173.30
173.31 173.32 173.33 174.1 174.2 174.3 174.4
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
174.26 174.27 174.28 174.29 174.30 174.31 175.1 175.2 175.3 175.4 175.5 175.6 175.7 175.8 175.9 175.10 175.11 175.12 175.13 175.14 175.15 175.16 175.17 175.18 175.19 175.20 175.21 175.22 175.23 175.24 175.25 175.26 175.27 175.28 175.29
175.30
175.31 175.32 175.33 175.34 176.1 176.2 176.3 176.4 176.5 176.6 176.7 176.8 176.9 176.10 176.11 176.12 176.13 176.14 176.15 176.16 176.17 176.18 176.19 176.20 176.21 176.22 176.23 176.24 176.25 176.26 176.27 176.28
176.29 176.30
176.31 176.32 176.33 176.34 177.1 177.2 177.3 177.4 177.5 177.6 177.7 177.8 177.9 177.10 177.11 177.12 177.13 177.14 177.15 177.16 177.17 177.18 177.19 177.20 177.21
177.22 177.23
177.24 177.25 177.26 177.27 177.28 177.29 177.30 177.31 177.32 178.1 178.2 178.3 178.4 178.5 178.6 178.7 178.8 178.9 178.10 178.11 178.12 178.13 178.14 178.15 178.16 178.17 178.18 178.19 178.20 178.21
178.22 178.23
178.24 178.25 178.26 178.27 178.28 178.29 178.30 178.31
178.32
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
180.13 180.14 180.15 180.16 180.17 180.18 180.19 180.20 180.21 180.22 180.23 180.24 180.25 180.26 180.27 180.28 180.29 180.30 180.31 181.1 181.2 181.3 181.4 181.5 181.6 181.7 181.8 181.9 181.10 181.11 181.12 181.13 181.14 181.15 181.16 181.17 181.18 181.19 181.20 181.21
181.22
181.23 181.24 181.25 181.26 181.27
181.28 181.29 182.1 182.2
182.3
182.4 182.5
182.6 182.7 182.8 182.9 182.10 182.11 182.12 182.13 182.14 182.15 182.16 182.17 182.18 182.19 182.20 182.21 182.22 182.23 182.24 182.25 182.26 182.27 182.28 182.29 182.30 182.31 183.1 183.2 183.3 183.4 183.5 183.6 183.7 183.8 183.9 183.10 183.11 183.12 183.13 183.14 183.15 183.16 183.17 183.18 183.19 183.20 183.21 183.22 183.23 183.24 183.25 183.26 183.27
183.28
183.29 183.30 183.31 183.32 183.33 184.1 184.2 184.3 184.4 184.5 184.6 184.7 184.8 184.9 184.10 184.11 184.12 184.13 184.14
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
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
186.1 186.2 186.3 186.4 186.5 186.6 186.7 186.8 186.9 186.10 186.11 186.12 186.13 186.14 186.15 186.16 186.17 186.18 186.19 186.20 186.21 186.22 186.23 186.24 186.25 186.26 186.27 186.28 186.29 186.30 186.31 187.1 187.2 187.3 187.4 187.5 187.6 187.7 187.8 187.9 187.10 187.11 187.12 187.13 187.14 187.15 187.16 187.17 187.18 187.19 187.20 187.21 187.22 187.23 187.24
187.25
187.26 187.27
187.28
188.1 188.2
188.3 188.4 188.5 188.6 188.7 188.8 188.9 188.10 188.11 188.12 188.13 188.14 188.15 188.16 188.17 188.18 188.19 188.20 188.21 188.22 188.23 188.24 188.25 188.26 188.27 188.28 188.29 188.30 188.31 188.32 188.33 189.1 189.2 189.3 189.4 189.5 189.6 189.7 189.8 189.9 189.10 189.11 189.12 189.13 189.14 189.15 189.16 189.17 189.18 189.19 189.20 189.21 189.22 189.23 189.24 189.25 189.26 189.27 189.28 189.29 189.30 189.31 189.32 189.33 189.34 190.1 190.2 190.3 190.4 190.5 190.6 190.7 190.8 190.9 190.10 190.11
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
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
191.20 191.21 191.22 191.23 191.24 191.25 191.26 191.27 191.28 191.29 191.30 191.31 191.32 191.33 192.1 192.2 192.3 192.4 192.5 192.6 192.7 192.8 192.9 192.10 192.11 192.12 192.13 192.14 192.15 192.16 192.17 192.18 192.19 192.20 192.21 192.22 192.23 192.24 192.25 192.26 192.27 192.28 192.29 192.30 192.31 192.32 192.33 192.34 193.1 193.2 193.3 193.4 193.5 193.6 193.7 193.8 193.9 193.10 193.11 193.12 193.13 193.14 193.15 193.16 193.17 193.18 193.19 193.20 193.21 193.22 193.23 193.24 193.25
193.26
193.27 193.28 193.29 193.30 193.31 193.32 193.33 194.1 194.2 194.3 194.4 194.5 194.6 194.7 194.8 194.9
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
194.30 194.31 194.32 194.33 195.1 195.2 195.3 195.4 195.5 195.6 195.7 195.8 195.9 195.10 195.11 195.12 195.13 195.14 195.15 195.16 195.17 195.18 195.19 195.20 195.21 195.22 195.23 195.24 195.25 195.26 195.27 195.28
195.29 195.30
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
197.26 197.27 197.28 197.29 197.30 197.31 198.1 198.2
198.3 198.4
198.5 198.6 198.7 198.8 198.9 198.10 198.11 198.12 198.13 198.14 198.15
198.16 198.17
198.18 198.19 198.20 198.21 198.22 198.23 198.24 198.25 198.26 198.27 198.28
198.29 198.30
199.1 199.2 199.3 199.4 199.5 199.6 199.7 199.8
199.9 199.10
199.11 199.12 199.13 199.14 199.15 199.16 199.17 199.18 199.19 199.20 199.21 199.22 199.23 199.24 199.25 199.26 199.27 199.28 199.29 199.30 199.31 199.32 199.33 199.34 200.1 200.2 200.3 200.4 200.5 200.6 200.7 200.8 200.9 200.10 200.11 200.12 200.13 200.14
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
200.28 200.29 200.30 200.31 200.32 201.1 201.2 201.3 201.4 201.5 201.6 201.7 201.8 201.9 201.10 201.11 201.12 201.13 201.14 201.15
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
201.29 201.30 201.31 201.32 201.33 202.1 202.2 202.3 202.4 202.5 202.6 202.7
202.8 202.9
202.10 202.11 202.12 202.13 202.14 202.15 202.16
202.17 202.18
202.19 202.20 202.21 202.22 202.23 202.24 202.25
202.26 202.27
202.28 202.29
202.30 203.1 203.2 203.3 203.4 203.5 203.6 203.7 203.8 203.9 203.10 203.11 203.12 203.13
203.14
203.15 203.16 203.17 203.18 203.19 203.20 203.21 203.22 203.23 203.24 203.25 203.26 203.27
203.28
203.29 203.30 203.31 203.32 204.1 204.2 204.3
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
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
207.1 207.2 207.3 207.4 207.5 207.6 207.7 207.8 207.9
207.10
207.11 207.12 207.13 207.14 207.15 207.16 207.17 207.18 207.19 207.20 207.21 207.22 207.23 207.24 207.25 207.26 207.27 207.28 207.29 207.30 207.31 207.32 207.33 208.1 208.2 208.3 208.4 208.5 208.6 208.7 208.8 208.9 208.10
208.11 208.12
208.13 208.14 208.15 208.16
208.17 208.18
208.19 208.20 208.21 208.22 208.23 208.24 208.25 208.26 208.27 208.28 208.29 208.30 208.31 208.32 209.1 209.2 209.3 209.4 209.5 209.6
209.7 209.8 209.9 209.10 209.11 209.12 209.13 209.14 209.15 209.16 209.17 209.18 209.19 209.20 209.21 209.22 209.23 209.24 209.25 209.26 209.27 209.28 209.29 209.30 209.31 210.1 210.2 210.3 210.4 210.5
210.6
210.7 210.8 210.9 210.10 210.11 210.12 210.13 210.14 210.15 210.16 210.17 210.18 210.19 210.20 210.21 210.22 210.23 210.24 210.25 210.26 210.27 210.28 210.29 210.30 210.31 210.32 210.33 211.1 211.2 211.3 211.4 211.5 211.6 211.7 211.8 211.9
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
211.23 211.24 211.25 211.26 211.27 211.28 211.29 211.30 212.1 212.2
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
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
215.16 215.17 215.18 215.19 215.20 215.21 215.22 215.23 215.24 215.25 215.26 215.27 215.28 215.29 215.30 215.31 215.32 215.33
216.1 216.2
216.3 216.4 216.5 216.6 216.7 216.8 216.9 216.10 216.11 216.12 216.13 216.14 216.15 216.16 216.17 216.18 216.19 216.20 216.21 216.22 216.23 216.24 216.25 216.26 216.27 216.28 216.29
216.30 216.31 216.32
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
217.18 217.19 217.20 217.21 217.22 217.23 217.24 217.25 217.26 217.27 217.28 217.29 217.30 217.31 217.32 217.33 217.34 218.1 218.2 218.3 218.4
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
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
219.24 219.25 219.26 219.27 219.28 219.29 219.30 220.1 220.2 220.3 220.4 220.5 220.6
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
221.8 221.9 221.10 221.11 221.12 221.13 221.14 221.15 221.16 221.17 221.18 221.19 221.20 221.21 221.22 221.23 221.24 221.25 221.26 221.27 221.28 221.29 221.30 221.31 221.32 221.33 221.34 221.35 222.1 222.2 222.3 222.4 222.5 222.6 222.7 222.8
222.9 222.10
222.11 222.12 222.13 222.14 222.15 222.16 222.17 222.18 222.19 222.20 222.21 222.22 222.23 222.24 222.25 222.26 222.27 222.28 222.29 222.30 222.31 222.32 222.33 222.34 223.1 223.2 223.3 223.4 223.5 223.6 223.7 223.8 223.9 223.10 223.11 223.12 223.13 223.14
223.15 223.16
223.17 223.18
223.19 223.20 223.21 223.22 223.23 223.24 223.25
223.26
223.27 223.28 223.29 223.30 223.31 223.32 224.1 224.2 224.3 224.4 224.5 224.6 224.7 224.8 224.9 224.10 224.11 224.12 224.13 224.14 224.15 224.16 224.17 224.18 224.19 224.20 224.21 224.22 224.23
224.24 224.25
224.26 224.27 224.28 224.29 224.30 224.31 224.32 225.1 225.2 225.3
225.4 225.5
225.6 225.7
225.8 225.9 225.10 225.11 225.12 225.13 225.14 225.15 225.16 225.17 225.18 225.19 225.20 225.21 225.22 225.23 225.24 225.25 225.26 225.27 225.28 225.29 225.30 225.31 226.1 226.2 226.3 226.4 226.5 226.6 226.7 226.8 226.9 226.10 226.11 226.12 226.13 226.14 226.15 226.16 226.17 226.18 226.19 226.20 226.21 226.22 226.23 226.24 226.25 226.26 226.27 226.28 226.29 226.30 226.31 226.32 226.33 227.1 227.2 227.3 227.4 227.5 227.6 227.7 227.8 227.9 227.10 227.11 227.12 227.13 227.14 227.15 227.16 227.17 227.18 227.19 227.20 227.21 227.22 227.23 227.24
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
228.29 228.30 228.31 228.32 229.1 229.2 229.3 229.4 229.5 229.6 229.7 229.8 229.9 229.10 229.11 229.12 229.13 229.14 229.15 229.16
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
229.32 229.33 230.1 230.2
230.3 230.4 230.5 230.6 230.7 230.8 230.9 230.10 230.11 230.12 230.13 230.14 230.15 230.16 230.17 230.18 230.19 230.20 230.21 230.22 230.23 230.24 230.25 230.26 230.27 230.28 230.29 230.30 230.31 231.1 231.2 231.3 231.4 231.5 231.6 231.7 231.8 231.9 231.10 231.11 231.12 231.13 231.14 231.15 231.16 231.17 231.18 231.19 231.20 231.21 231.22 231.23 231.24 231.25 231.26 231.27 231.28 231.29 231.30 231.31 231.32 232.1 232.2 232.3 232.4 232.5 232.6 232.7 232.8 232.9 232.10
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
232.30 232.31 233.1 233.2
233.3 233.4 233.5 233.6 233.7 233.8 233.9 233.10 233.11 233.12 233.13 233.14 233.15 233.16 233.17 233.18 233.19 233.20 233.21 233.22 233.23 233.24 233.25 233.26 233.27 233.28 233.29 233.30 233.31 234.1 234.2 234.3 234.4 234.5 234.6 234.7 234.8 234.9 234.10 234.11 234.12 234.13 234.14 234.15 234.16 234.17 234.18 234.19 234.20 234.21 234.22 234.23 234.24 234.25 234.26 234.27 234.28 234.29 234.30 234.31 234.32 234.33 235.1 235.2 235.3 235.4 235.5 235.6 235.7 235.8 235.9 235.10 235.11 235.12 235.13 235.14 235.15 235.16 235.17 235.18 235.19 235.20 235.21 235.22 235.23 235.24 235.25 235.26 235.27 235.28 235.29 235.30 235.31 235.32 236.1 236.2 236.3 236.4 236.5 236.6 236.7 236.8 236.9 236.10 236.11 236.12 236.13 236.14 236.15
236.16 236.17 236.18 236.19
236.20 236.21 236.22 236.23 236.24 236.25 236.26 236.27 236.28 236.29 236.30 236.31 236.32 237.1 237.2 237.3 237.4 237.5 237.6 237.7 237.8
237.9 237.10 237.11 237.12
237.13 237.14 237.15 237.16 237.17 237.18 237.19
237.20 237.21 237.22 237.23
237.24 237.25 237.26 237.27 237.28 237.29 237.30 237.31 238.1 238.2 238.3 238.4 238.5 238.6 238.7 238.8 238.9 238.10 238.11 238.12 238.13 238.14
238.15 238.16 238.17 238.18
238.19 238.20 238.21 238.22 238.23 238.24
238.25 238.26 238.27 238.28
238.29 238.30 238.31 238.32 239.1 239.2 239.3
239.4 239.5 239.6 239.7
239.8 239.9 239.10 239.11 239.12 239.13
239.14 239.15 239.16 239.17
239.18 239.19 239.20 239.21 239.22
239.23 239.24 239.25 239.26
239.27 239.28 239.29 239.30 239.31 240.1 240.2 240.3 240.4 240.5 240.6 240.7 240.8 240.9 240.10 240.11 240.12 240.13 240.14 240.15 240.16 240.17 240.18 240.19 240.20 240.21 240.22 240.23 240.24 240.25 240.26 240.27 240.28 240.29 240.30 240.31 240.32 240.33 240.34 241.1 241.2 241.3 241.4 241.5 241.6 241.7 241.8 241.9 241.10 241.11
241.12 241.13 241.14 241.15
241.16 241.17
241.18 241.19 241.20 241.21
241.22 241.23 241.24
241.25 241.26 241.27 241.28 241.29 241.30 241.31 241.32 241.33 242.1 242.2 242.3 242.4 242.5 242.6 242.7 242.8 242.9 242.10 242.11
242.12
242.13 242.14 242.15 242.16 242.17 242.18 242.19 242.20 242.21 242.22 242.23 242.24 242.25 242.26 242.27 242.28 242.29 242.30 242.31 242.32 242.33 243.1 243.2 243.3 243.4 243.5 243.6 243.7 243.8 243.9 243.10 243.11 243.12 243.13 243.14 243.15
243.16
243.17 243.18 243.19 243.20 243.21 243.22 243.23 243.24 243.25 243.26 243.27 243.28 243.29 243.30 243.31 244.1 244.2 244.3 244.4 244.5 244.6 244.7 244.8 244.9 244.10 244.11 244.12 244.13 244.14 244.15 244.16 244.17 244.18 244.19 244.20 244.21 244.22 244.23 244.24 244.25 244.26 244.27 244.28 244.29 244.30 244.31 245.1 245.2 245.3 245.4
245.5 245.6 245.7
245.8 245.9 245.10 245.11 245.12 245.13 245.14 245.15 245.16 245.17 245.18 245.19 245.20 245.21 245.22 245.23 245.24 245.25 245.26 245.27 245.28 245.29 245.30 245.31
245.32 245.33
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
246.19 246.20 246.21 246.22 246.23 246.24 246.25 246.26 246.27 246.28 246.29 246.30 246.31 246.32 246.33 246.34
247.1
247.2 247.3
247.4 247.5 247.6 247.7 247.8 247.9
247.10
247.11 247.12 247.13 247.14 247.15 247.16 247.17 247.18 247.19 247.20 247.21 247.22 247.23 247.24 247.25 247.26 247.27 247.28 247.29 247.30 248.1 248.2 248.3 248.4 248.5 248.6 248.7 248.8 248.9 248.10 248.11 248.12 248.13 248.14 248.15 248.16 248.17
248.18
248.19 248.20 248.21 248.22 248.23 248.24 248.25 248.26 248.27 248.28 248.29 248.30 248.31 249.1 249.2 249.3 249.4 249.5 249.6 249.7 249.8 249.9 249.10 249.11 249.12 249.13 249.14 249.15 249.16 249.17
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
251.8 251.9 251.10 251.11 251.12 251.13 251.14 251.15 251.16 251.17 251.18 251.19 251.20 251.21 251.22 251.23 251.24 251.25 251.26 251.27 251.28 251.29 251.30 251.31 252.1 252.2 252.3 252.4 252.5 252.6 252.7 252.8 252.9 252.10 252.11 252.12
252.13
252.14 252.15 252.16 252.17 252.18 252.19 252.20 252.21 252.22 252.23 252.24
252.25
252.26 252.27 252.28 252.29 252.30 252.31 253.1 253.2 253.3
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
253.30 253.31 253.32 254.1 254.2 254.3 254.4 254.5 254.6 254.7 254.8 254.9 254.10 254.11 254.12 254.13 254.14 254.15 254.16 254.17 254.18 254.19 254.20 254.21 254.22 254.23 254.24 254.25
254.26
254.27 254.28 254.29 254.30 254.31 255.1 255.2 255.3 255.4 255.5 255.6 255.7 255.8 255.9 255.10 255.11 255.12 255.13 255.14 255.15 255.16 255.17 255.18 255.19 255.20 255.21 255.22 255.23 255.24 255.25 255.26 255.27
255.28
255.29 255.30 255.31 255.32 255.33 255.34 256.1 256.2 256.3 256.4 256.5 256.6 256.7 256.8
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
256.27 256.28 256.29 256.30 256.31 256.32 257.1 257.2 257.3 257.4 257.5 257.6 257.7 257.8 257.9 257.10 257.11
257.12
257.13 257.14 257.15 257.16 257.17 257.18 257.19 257.20 257.21 257.22 257.23
257.24
257.25 257.26 257.27 257.28 257.29 257.30 257.31 257.32 258.1 258.2 258.3 258.4 258.5 258.6 258.7 258.8 258.9
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
259.19 259.20 259.21 259.22 259.23 259.24 259.25 259.26 259.27 259.28 259.29 259.30 259.31 259.32 259.33 260.1 260.2 260.3 260.4
260.5
260.6 260.7 260.8 260.9 260.10 260.11 260.12 260.13
260.14
260.15 260.16 260.17 260.18 260.19 260.20 260.21 260.22 260.23 260.24 260.25 260.26 260.27 260.28 260.29 260.30 261.1 261.2 261.3 261.4 261.5 261.6
261.7
261.8 261.9 261.10 261.11 261.12 261.13 261.14 261.15 261.16 261.17
261.18
261.19 261.20 261.21 261.22 261.23 261.24 261.25 261.26 261.27 261.28 261.29 261.30 261.31 262.1 262.2 262.3 262.4 262.5 262.6 262.7 262.8 262.9 262.10 262.11 262.12 262.13 262.14 262.15 262.16 262.17 262.18 262.19 262.20 262.21 262.22 262.23 262.24 262.25 262.26 262.27 262.28 262.29 262.30 262.31 262.32 262.33 262.34 263.1 263.2 263.3 263.4 263.5 263.6 263.7 263.8 263.9 263.10 263.11 263.12 263.13 263.14 263.15 263.16 263.17 263.18 263.19 263.20 263.21 263.22 263.23 263.24 263.25 263.26 263.27
263.28
263.29 263.30
263.31
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
264.18 264.19 264.20 264.21 264.22 264.23 264.24 264.25 264.26 264.27 264.28 264.29 264.30 265.1 265.2 265.3 265.4 265.5 265.6 265.7 265.8 265.9 265.10 265.11 265.12 265.13 265.14 265.15 265.16 265.17 265.18 265.19 265.20 265.21 265.22 265.23 265.24 265.25 265.26 265.27
265.28
266.1 266.2 266.3 266.4 266.5 266.6 266.7 266.8 266.9 266.10 266.11 266.12 266.13 266.14 266.15 266.16 266.17 266.18 266.19 266.20 266.21 266.22 266.23 266.24 266.25 266.26 266.27 266.28 266.29 266.30 266.31 266.32 266.33 267.1 267.2 267.3 267.4 267.5 267.6 267.7 267.8 267.9 267.10 267.11 267.12 267.13 267.14 267.15 267.16 267.17 267.18 267.19 267.20 267.21 267.22 267.23 267.24 267.25 267.26 267.27 267.28 267.29 267.30 267.31 267.32 267.33 267.34 267.35 267.36 268.1 268.2 268.3 268.4 268.5 268.6 268.7 268.8 268.9 268.10 268.11 268.12 268.13 268.14 268.15 268.16 268.17 268.18 268.19 268.20 268.21 268.22
268.23
268.24 268.25 268.26 268.27 268.28 268.29 268.30 268.31 268.32 268.33 269.1 269.2 269.3 269.4 269.5 269.6 269.7 269.8 269.9 269.10 269.11 269.12 269.13 269.14 269.15 269.16 269.17 269.18 269.19 269.20 269.21 269.22 269.23 269.24 269.25 269.26 269.27 269.28 269.29 269.30 269.31 269.32 269.33 269.34 270.1 270.2 270.3 270.4 270.5 270.6 270.7 270.8 270.9 270.10 270.11 270.12 270.13 270.14 270.15 270.16 270.17 270.18 270.19 270.20 270.21 270.22 270.23 270.24 270.25 270.26 270.27 270.28 270.29 270.30 270.31
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
271.26 271.27 271.28 271.29 271.30 272.1 272.2 272.3 272.4 272.5 272.6 272.7 272.8 272.9 272.10 272.11 272.12 272.13 272.14 272.15 272.16
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
272.31 272.32 272.33 273.1 273.2 273.3 273.4 273.5 273.6 273.7 273.8 273.9 273.10 273.11 273.12 273.13 273.14 273.15 273.16 273.17 273.18 273.19
273.20
273.21 273.22 273.23 273.24 273.25
273.26
273.27 273.28 273.29 273.30 274.1 274.2 274.3 274.4 274.5 274.6 274.7 274.8 274.9 274.10 274.11 274.12 274.13 274.14 274.15 274.16 274.17 274.18 274.19 274.20 274.21 274.22 274.23 274.24 274.25 274.26 274.27 274.28 274.29 274.30 275.1 275.2 275.3 275.4 275.5 275.6 275.7 275.8 275.9 275.10 275.11 275.12 275.13 275.14
275.15
275.16 275.17 275.18 275.19 275.20 275.21 275.22 275.23 275.24 275.25 275.26 275.27 275.28 275.29 275.30 276.1 276.2 276.3 276.4 276.5 276.6 276.7 276.8 276.9 276.10 276.11 276.12 276.13 276.14 276.15 276.16 276.17 276.18 276.19 276.20 276.21 276.22 276.23 276.24 276.25 276.26 276.27 276.28 276.29 276.30 276.31 277.1 277.2 277.3 277.4 277.5 277.6 277.7 277.8 277.9 277.10 277.11 277.12 277.13 277.14 277.15 277.16 277.17 277.18 277.19 277.20 277.21 277.22 277.23 277.24 277.25 277.26 277.27 277.28 277.29 277.30 277.31 278.1 278.2 278.3 278.4
278.5
278.6 278.7 278.8
278.9
278.10 278.11 278.12 278.13 278.14 278.15 278.16 278.17 278.18 278.19 278.20 278.21 278.22 278.23 278.24 278.25 278.26 278.27 278.28 278.29 278.30 278.31 278.32 279.1 279.2 279.3 279.4 279.5 279.6 279.7 279.8 279.9 279.10 279.11 279.12 279.13 279.14 279.15 279.16 279.17 279.18 279.19 279.20 279.21 279.22 279.23 279.24
279.25
279.26 279.27 279.28 279.29 279.30 279.31 279.32 279.33 280.1 280.2 280.3 280.4 280.5 280.6 280.7
280.8
280.9 280.10 280.11 280.12 280.13 280.14 280.15 280.16 280.17 280.18 280.19 280.20
280.21
280.22 280.23 280.24 280.25 280.26 280.27 280.28 280.29 280.30 280.31 280.32 281.1 281.2 281.3 281.4
281.5
281.6 281.7 281.8 281.9
281.10
281.11 281.12 281.13 281.14 281.15 281.16 281.17 281.18 281.19 281.20 281.21 281.22 281.23 281.24 281.25 281.26
281.27
282.1 282.2 282.3 282.4
282.5
282.6 282.7 282.8 282.9 282.10 282.11 282.12 282.13 282.14 282.15 282.16 282.17 282.18 282.19 282.20 282.21 282.22 282.23 282.24 282.25 282.26 282.27 282.28 282.29 282.30 282.31 283.1 283.2 283.3 283.4 283.5 283.6 283.7 283.8 283.9 283.10 283.11 283.12 283.13 283.14 283.15 283.16 283.17 283.18
283.19
283.20 283.21 283.22 283.23 283.24 283.25 283.26 283.27 283.28 283.29 283.30 283.31 283.32 284.1 284.2 284.3 284.4 284.5 284.6 284.7 284.8 284.9 284.10 284.11 284.12 284.13 284.14 284.15 284.16 284.17 284.18 284.19 284.20 284.21 284.22 284.23 284.24 284.25 284.26 284.27 284.28 284.29 284.30
284.31
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
287.9 287.10 287.11 287.12 287.13 287.14 287.15 287.16 287.17 287.18 287.19 287.20 287.21 287.22 287.23 287.24 287.25 287.26 287.27 287.28 287.29 287.30 287.31 287.32 287.33 288.1 288.2 288.3 288.4 288.5 288.6 288.7 288.8 288.9 288.10
288.11
288.12 288.13 288.14 288.15 288.16 288.17 288.18 288.19 288.20 288.21 288.22 288.23 288.24 288.25 288.26 288.27 288.28 288.29 288.30 288.31 288.32 289.1 289.2 289.3 289.4 289.5 289.6 289.7 289.8 289.9
289.10
289.11 289.12
289.13 289.14 289.15
289.16

A bill for an act
relating to taxation; making changes to conform with certain federal tax law
changes; adopting federal adjusted gross income as the starting point for calculating
individual income tax; making policy and technical changes to various tax-related
provisions including provisions related to the individual income tax, corporate
franchise tax, estate tax, sales and use tax, gross revenues tax, gross receipts tax,
property tax, partnership tax, tobacco tax, minerals tax, and other miscellaneous
tax provisions; making changes to the property tax refund program; providing for
registration and taxation of unmanned aircraft; modifying provisions related to
local government aid and credits; modifying referendum dates; appropriating
money; amending Minnesota Statutes 2016, sections 116J.8737, subdivisions 5,
12; 123A.455, subdivision 1; 126C.01, subdivision 3; 162.145, subdivision 3;
174.03, subdivision 1b; 197.603, subdivision 2; 216B.36; 237.19; 270.12,
subdivisions 2, 3; 270.41, subdivision 3; 270.96, subdivision 1; 270A.03,
subdivision 7; 270B.08, subdivision 2; 270C.85, subdivision 2; 270C.89,
subdivision 2; 270C.91; 272.02, subdivisions 27, 49, 81, by adding a subdivision;
272.025, subdivision 3; 273.032; 273.061, subdivision 9; 273.11, subdivision 12;
273.1115, subdivision 2; 273.112, subdivision 6; 273.113, subdivision 3; 273.119,
subdivision 2; 273.1231, subdivisions 3, 4; 273.124, subdivisions 1, 3a, 8, 9, 14,
17, 21, by adding a subdivision; 273.1245, subdivision 2; 273.125, subdivision 3;
273.128, subdivision 1; 273.13, subdivision 35, by adding a subdivision; 273.136,
subdivision 2; 273.1384, subdivision 3; 273.18; 274.14; 274.16; 275.025,
subdivision 3, by adding subdivisions; 276A.01, subdivision 4; 282.01, subdivision
6; 287.21, subdivision 1; 289A.08, subdivisions 1, 6, 7; 289A.25, subdivision 1;
289A.31, subdivision 2; 289A.37, subdivision 6; 289A.38, subdivisions 7, 10;
289A.42; 289A.50, subdivision 1; 289A.60, subdivision 24; 290.01, subdivisions
6, 22, by adding subdivisions; 290.0131, subdivisions 1, 3, by adding subdivisions;
290.0132, subdivisions 1, 7, by adding subdivisions; 290.0133, subdivision 6, by
adding a subdivision; 290.0134, by adding subdivisions; 290.0136; 290.05,
subdivision 3; 290.06, subdivisions 1, 2c, 2d, by adding a subdivision; 290.067,
subdivision 2a; 290.0671, subdivision 7; 290.0672, subdivision 2; 290.0681,
subdivisions 3, 4; 290.0685, subdivision 1, by adding a subdivision; 290.0802,
subdivisions 2, 3; 290.091, subdivision 3; 290.0921, subdivision 8; 290.0922,
subdivision 1; 290.095, subdivision 4; 290.21, by adding a subdivision; 290.34,
by adding a subdivision; 290.92, subdivisions 1, 28; 290A.03, subdivisions 4, 12;
290A.04, subdivisions 2h, 4, by adding a subdivision; 290A.05; 290A.08; 290A.09;
290B.04, subdivision 1; 290B.09, subdivision 1; 291.03, subdivisions 8, 10; 295.50,
subdivisions 4, 9b, by adding subdivisions; 297A.61, subdivision 18; 297A.67,
subdivision 12, by adding subdivisions; 297A.68, subdivisions 17, 25, 29, 44;
297A.70, subdivisions 3, 7, 16, by adding subdivisions; 297A.71, subdivisions 22,
45, by adding subdivisions; 297A.77, by adding a subdivision; 297A.84; 297A.85;
297A.993, by adding a subdivision; 297B.01, subdivision 14; 297B.03; 297F.01,
subdivisions 19, 23, by adding a subdivision; 297F.17, subdivision 6; 297G.16,
subdivision 7; 298.225, subdivision 1; 298.28, subdivision 3; 360.013, by adding
subdivisions; 360.55, by adding a subdivision; 360.62; 412.221, subdivision 2;
426.19, subdivision 2; 447.045, subdivisions 2, 3, 4, 6, 7; 452.11; 455.24; 455.29;
469.171, subdivision 4; 469.177, subdivision 1; 469.1812, subdivision 1, by adding
subdivisions; 469.190, subdivisions 1, 5; 469.316, subdivision 1; 469.317; 469.319,
subdivision 4; 471.57, subdivision 3; 471.571, subdivision 3; 471.572, subdivision
4; 473F.02, subdivision 4; 473F.05; 473H.05, subdivision 1; 473H.08, subdivisions
1, 4, by adding a subdivision; 474A.02, subdivision 22b; 477A.013, subdivision
13; 477A.016; Minnesota Statutes 2017 Supplement, sections 126C.17, subdivision
9; 205.10, subdivision 3a; 205A.05, subdivision 1a; 270A.03, subdivision 5;
270C.445, subdivision 6; 270C.89, subdivision 1; 271.21, subdivision 2; 272.115,
subdivision 1; 273.0755; 273.13, subdivisions 22, 23, 25, 34; 273.1384, subdivision
2; 273.1387, subdivision 3; 274.01, subdivision 1; 275.025, subdivision 1; 276.04,
subdivision 3; 278.01, subdivision 1; 289A.02, subdivision 7; 289A.12, subdivision
14; 289A.31, subdivision 1; 289A.35; 289A.37, subdivision 2; 290.01, subdivisions
4a, 19, 31; 290.0131, subdivision 10; 290.0132, subdivisions 21, 26; 290.0133,
subdivision 12; 290.0137; 290.05, subdivision 1; 290.067, subdivisions 1, 2b;
290.0671, subdivision 1; 290.0672, subdivision 1; 290.0681, subdivisions 1, 2;
290.0684, subdivisions 1, 2; 290.0686, subdivision 1; 290.091, subdivision 2;
290.17, subdivisions 2, 4; 290.31, subdivision 1; 290A.03, subdivisions 3, 8, 13,
15; 291.005, subdivision 1; 291.03, subdivisions 9, 11; 297A.61, subdivision 3;
297A.67, subdivisions 6, 34; 297A.70, subdivisions 4, 20; 297A.75, subdivisions
1, 2, 3; 297B.01, subdivision 16; 297E.02, subdivision 3; 462D.03, subdivision 2;
462D.06, subdivisions 1, 2; 475.59, subdivision 2; 477A.015; 477A.03, subdivision
2a; Laws 1986, chapter 379, sections 1, subdivision 1; 2, subdivision 1; Laws
2008, chapter 366, article 5, sections 26, as amended; 33, as amended; Laws 2011,
First Special Session chapter 7, article 4, section 10, subdivision 3; Laws 2017,
First Special Session chapter 1, article 3, section 32; article 8, section 3; article
10, section 4; proposing coding for new law in Minnesota Statutes, chapters 16A;
16B; 117; 222; 289A; 290; 416; 459; 469; repealing Minnesota Statutes 2016,
sections 10A.322, subdivision 4; 13.4967, subdivision 2; 273.1315; 275.29;
289A.38, subdivisions 7, 8, 9; 290.01, subdivision 29a; 290.0131, subdivisions 7,
11, 12, 13; 290.0132, subdivisions 8, 19, 20; 290.0133, subdivisions 13, 14; 290.06,
subdivision 23; 290.0921, subdivisions 1, 2, 3a, 4, 6; 290.10, subdivision 2;
477A.085; Minnesota Statutes 2017 Supplement, sections 327C.01, subdivision
13; 327C.16; Minnesota Rules, part 4503.1400, subpart 4.

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

ARTICLE 1

FEDERAL TAX CONFORMITY

Section 1.

Minnesota Statutes 2017 Supplement, 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 administrative 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$12,560deleted text end new text begin$13,180 new text endor less;

(2) for a debtor with one dependent, an income of deleted text begin$16,080deleted text end new text begin$16,878 new text endor less;

(3) for a debtor with two dependents, an income of deleted text begin$19,020deleted text end new text begin$19,959 new text endor less;

(4) for a debtor with three dependents, an income of deleted text begin$21,580deleted text end new text begin$22,643 new text endor less;

(5) for a debtor with four dependents, an income of deleted text begin$22,760deleted text end new text begin$23,887 new text endor less; and

(6) for a debtor with five or more dependents, an income of deleted text begin$23,730deleted text end new text begin$24,900 new text endor less.

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.

(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"2014"deleted text end new text begin"2017" new text endshall be substituted for the word deleted text begin"1992."
deleted text enddeleted text begin For 2016, the commissioner shall then determine the percent change from the 12 months
ending on August 31, 2014, to the 12 months ending on August 31, 2015, and in each
subsequent year, from the 12 months ending on August 31, 2014, to the 12 months ending
on August 31 of the year preceding the taxable year.
deleted text endnew text begin "2016."new text end The determination of the
commissioner pursuant to this subdivision shall not be considered a "rule" and shall not be
subject to the Administrative 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 This section is effective for taxable year beginning after December
31, 2017.
new text end

Sec. 2.

Minnesota Statutes 2017 Supplement, section 289A.02, subdivision 7, is amended
to read:


Subd. 7.

Internal Revenue Code.

Unless specifically defined otherwise, "Internal
Revenue Code" means the Internal Revenue Code of 1986, as amended through deleted text beginDecember
16, 2016
deleted text endnew text begin March 31, 2018new 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. 3.

Minnesota Statutes 2016, section 289A.08, subdivision 1, is amended to read:


Subdivision 1.

Generally; individuals.

(a) A taxpayer must file a return for each taxable
year the taxpayer is required to file a return under section 6012 of the Internal Revenue
Codenew text begin or meets the requirements under paragraph (d) to file a returnnew text end, except that:

(1) an individual who is not a Minnesota resident for any part of the year is not required
to file a Minnesota income tax return if the individual's gross income derived from Minnesota
sources as determined under sections 290.081, paragraph (a), and 290.17, is less than the
filing requirements for a single individual who is a full year resident of Minnesota; deleted text beginand
deleted text end

(2) an individual who is a Minnesota resident is not required to file a Minnesota income
tax return if the individual's gross income derived from Minnesota sources as determined
under section 290.17, less the subtractions allowed under section 290.0132, subdivisions
12
and 15, is less than the filing requirements for a single individual who is a full-year
resident of Minnesota.

(b) The decedent's final income tax return, and other income tax returns for prior years
where the decedent had gross income in excess of the minimum amount at which an
individual is required to file and did not file, must be filed by the decedent's personal
representative, if any. If there is no personal representative, the return or returns must be
filed by the transferees, as defined in section 270C.58, subdivision 3, who receive property
of the decedent.

(c) The term "gross income," as it is used in this section, has the same meaning given it
in section 290.01, subdivision 20.

new text begin (d) The commissioner of revenue shall annually determine the gross income levels at
which individuals are required to file a return for each taxable year based on the amounts
that may be deducted under section 290.0803.
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. 4.

Minnesota Statutes 2016, section 289A.08, subdivision 7, is amended to read:


Subd. 7.

Composite income tax returns for nonresident partners, shareholders, and
beneficiaries.

(a) The commissioner may allow a partnership with nonresident partners to
file a composite return and to pay the tax on behalf of nonresident partners who have no
other Minnesota source income. This composite return must include the names, addresses,
Social Security numbers, income allocation, and tax liability for the nonresident partners
electing to be covered by the composite return.

(b) The computation of a partner's tax liability must be determined by multiplying the
income allocated to that partner by the highest rate used to determine the tax liability for
individuals under section 290.06, subdivision 2c. Nonbusiness deductions, standard
deductions, or personal exemptions are not allowed.

(c) The partnership must submit a request to use this composite return filing method for
nonresident partners. The requesting partnership must file a composite return in the form
prescribed by the commissioner of revenue. The filing of a composite return is considered
a request to use the composite return filing method.

(d) The electing partner must not have any Minnesota source income other than the
income from the partnership and other electing partnerships. If it is determined that the
electing partner has other Minnesota source income, the inclusion of the income and tax
liability for that partner under this provision will not constitute a return to satisfy the
requirements of subdivision 1. The tax paid for the individual as part of the composite return
is allowed as a payment of the tax by the individual on the date on which the composite
return payment was made. If the electing nonresident partner has no other Minnesota source
income, filing of the composite return is a return for purposes of subdivision 1.

(e) This subdivision does not negate the requirement that an individual pay estimated
tax if the individual's liability would exceed the requirements set forth in section 289A.25.
The individual's liability to pay estimated tax is, however, satisfied when the partnership
pays composite estimated tax in the manner prescribed in section 289A.25.

(f) If an electing partner's share of the partnership's gross income from Minnesota sources
is less than the filing requirements for a nonresident under this subdivision, the tax liability
is zero. However, a statement showing the partner's share of gross income must be included
as part of the composite return.

(g) The election provided in this subdivision is only available to a partner who has no
other Minnesota source income and who is either (1) a full-year nonresident individual or
(2) a trust or estate that does not claim a deduction under either section 651 or 661 of the
Internal Revenue Code.

(h) A corporation defined in section 290.9725 and its nonresident shareholders may
make an election under this paragraph. The provisions covering the partnership apply to
the corporation and the provisions applying to the partner apply to the shareholder.

(i) Estates and trusts distributing current income only and the nonresident individual
beneficiaries of the estates or trusts may make an election under this paragraph. The
provisions covering the partnership apply to the estate or trust. The provisions applying to
the partner apply to the beneficiary.

(j) For the purposes of this subdivision, "income" means the partner's share of federal
adjusted gross income from the partnership modified by the additions provided in section
290.0131, subdivisions 8 to deleted text begin11deleted text endnew text begin 10, 15, and 17new text end, and the subtractions provided in: (1) section
290.0132, subdivision 9, to the extent the amount is assignable or allocable to Minnesota
under section 290.17; and (2) section 290.0132, subdivision 14. The subtraction allowed
under section 290.0132, subdivision 9, is only allowed on the composite tax computation
to the extent the electing partner would have been allowed the subtraction.

new text 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. 5.

Minnesota Statutes 2017 Supplement, section 289A.12, subdivision 14, is amended
to read:


Subd. 14.

Reporting exempt interest and exempt-interest dividends.

(a) A regulated
investment company paying $10 or more in exempt-interest dividends to an individual who
is a resident of Minnesota, 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, must make a return indicating the amount of the exempt interest or
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 recipient by February 15 of the year following the year of the payment. The return
provided to the recipient must include a clear statement, in the form prescribed by the
commissioner, that the exempt interest or exempt-interest dividends must be included in
the computation of Minnesota taxable income. By June 1 of each year, the payer 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 federal deleted text begintaxabledeleted text endnew text begin adjusted grossnew text end 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.

(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 federal income taxes
under the Internal Revenue Code or any other federal statute.

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 2017 Supplement, section 289A.35, is amended to read:


289A.35 ASSESSMENTS ON RETURNS.

(a) The commissioner may audit and adjust the taxpayer's computation of new text beginfederal adjusted
gross income,
new text endfederal taxable income, items of federal tax preferences, or federal 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.

(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).

(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.

(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.

(e) 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 for taxable years beginning after December
31, 2017.
new text end

Sec. 7.

Minnesota Statutes 2016, section 290.01, is amended by adding a subdivision to
read:


new text begin Subd. 14a. new text end

new text begin Surviving spouse. new text end

new text begin The term "surviving spouse" means an individual who is
a surviving spouse under section 2(a) of the Internal Revenue Code for the taxable year.
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. 8.

Minnesota Statutes 2017 Supplement, section 290.01, subdivision 19, is amended
to read:


Subd. 19.

Net income.

new text begin(a) For a corporation taxable under section 290.02, an estate, or
a trust,
new text endthe term "net income" means the federal taxable income, as defined in section 63 of
the Internal Revenue Code of 1986, as amended through the date named in this subdivision,
incorporating the federal effective dates of changes to the Internal Revenue Code and any
elections made by the taxpayer in accordance with the Internal Revenue Code in determining
federal taxable income for federal income tax purposes, and with the modifications provided
in sections 290.0131 to 290.0136.

new text begin (b) For an individual, the term "net income" means federal adjusted gross income with
the modifications provided in sections 290.0131, 290.0132, 290.0135, and 290.0136.
new text end

new text begin (c) new text endIn the case of a regulated investment company or a fund thereof, as defined in section
851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
except that:

(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
Revenue Code does not apply;

(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal Revenue
Code must be applied by allowing a deduction for capital gain dividends and exempt-interest
dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal Revenue Code;
and

(3) the deduction for dividends paid must also be applied in the amount of any
undistributed capital gains which the regulated investment company elects to have treated
as provided in section 852(b)(3)(D) of the Internal Revenue Code.

new text begin (d) new text endThe net income of a real estate investment trust as defined and limited by section
856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust
taxable income as defined in section 857(b)(2) of the Internal Revenue Code.

new text begin (e) new text endThe net income of a designated settlement fund as defined in section 468B(d) of the
Internal Revenue Code means the gross income as defined in section 468B(b) of the Internal
Revenue Code.

new text begin (f) For a taxpayer with a valid election under section 965(h) of the Internal Revenue
Code, including any successor in interest, net income for the taxable year includes the ratable
amount of deferred foreign income on which the taxpayer makes a federal tax payment in
that year.
new text end

new text begin (f) new text endThe Internal Revenue Code of 1986, as amended through deleted text beginDecember 16, 2016deleted text endnew text begin March
31, 2018
new text end, shall be in effect for taxable years beginning after December 31, 1996.

new text begin (g) new text endExcept as otherwise provided, references to the Internal Revenue Code in this
subdivision and sections 290.0131 to 290.0136 mean the code in effect for purposes of
determining net income for the applicable year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment, except
the changes incorporated by federal changes are effective retroactively at the same time as
the changes were effective for federal purposes and the changes amending the new paragraph
(a) and adding paragraph (b) are effective for taxable years beginning after December 31,
2017.
new text end

Sec. 9.

Minnesota Statutes 2016, section 290.01, is amended by adding a subdivision to
read:


new text begin Subd. 21a. new text end

new text begin Adjusted gross income. new text end

new text begin The terms "adjusted gross income" and "federal
adjusted gross income" mean adjusted gross income, as defined in section 62 of the Internal
Revenue Code, as amended through the date named in subdivision 19, incorporating the
federal effective date of changes to the Internal Revenue Code and any elections made by
the taxpayer under the Internal Revenue Code in determining federal adjusted gross income
for federal income tax purposes.
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 290.01, subdivision 22, is amended to read:


Subd. 22.

Taxable net income.

For tax years beginning after December 31, deleted text begin1986deleted text endnew text begin 2017new text end,
the term "taxable net income" means:

(1) for resident individuals deleted text beginthe same asdeleted text endnew text begin,new text end net incomenew text begin less the deductions allowed under
section 290.0803
new text end;

(2) for individuals who were deleted text beginnotdeleted text end residents of Minnesota for new text beginless than new text endthe entire year, deleted text beginthe
same as
deleted text end net incomenew text begin less the deductions allowed under section 290.0803,new text end except that the tax
is imposed only on the Minnesota apportioned share of that income as determined pursuant
to section 290.06, subdivision 2c, paragraph (e);

(3) for all other taxpayers, the part of net income that is allocable to Minnesota by
assignment or apportionment under one or more of sections 290.17, 290.191, 290.20, and
290.36new text begin, except that for nonresident individuals net income is reduced by the amount of the
standard deduction allowable under section 290.0803, subdivision 2, before allocation of
net income to Minnesota
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. 11.

Minnesota Statutes 2017 Supplement, section 290.01, subdivision 31, is amended
to read:


Subd. 31.

Internal Revenue Code.

Unless specifically defined otherwise, "Internal
Revenue Code" means the Internal Revenue Code of 1986, as amended through deleted text beginDecember
16, 2016
deleted text endnew text begin March 31, 2018new text end. Internal Revenue Code also includes any uncodified provision
in federal law that relates to provisions of the Internal Revenue Code that are incorporated
into Minnesota law. When used in this chapter, the reference to "subtitle A, chapter 1,
subchapter N, part 1, of the Internal Revenue Code" is to the Internal Revenue Code as
amended through March 18, 2010.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to the same taxable years as the changes incorporated by federal changes are effective
for federal purposes, including any provisions that are retroactive to taxable years beginning
after December 31, 2016.
new text end

Sec. 12.

Minnesota Statutes 2016, section 290.0131, subdivision 1, is amended to read:


Subdivision 1.

Definition; scope.

(a) For the purposes of this section, "addition" means
an amount that must be added to federal deleted text begintaxabledeleted text endnew text begin adjusted grossnew text end incomenew text begin, or for estates and
trusts, federal taxable income,
new text end in computing net income for the taxable year to which the
amounts relate.

(b) The additions in this section apply to individuals, estates, and trusts.

(c) Unless specifically indicated or unless the context clearly indicates otherwise, only
amounts that were deducted or excluded in computing federal deleted text begintaxabledeleted text endnew text begin adjusted grossnew text end incomenew text begin,
or for estates and trusts, federal taxable income,
new text end are an addition under this section.

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. 13.

Minnesota Statutes 2016, section 290.0131, subdivision 3, is amended to read:


Subd. 3.

Income, sales and use, motor vehicle sales, or excise taxes paid.

deleted text begin(a)deleted text endnew text begin For trusts
and estates,
new text end the amount of income, sales and use, motor vehicle sales, or excise taxes paid
or accrued within the taxable year under this chapter and the amount of taxes based on net
income, sales and use, motor vehicle sales, or excise taxes paid to any other state or to any
province or territory of Canada is an addition to the extent deducted under section 63(d) of
the Internal Revenue Code.

deleted text begin (b) The addition under paragraph (a) may not be more than the amount by which the
state itemized deduction exceeds the amount of the standard deduction as defined in section
63(c) of the Internal Revenue Code. For the purpose of this subdivision, income, sales and
use, motor vehicle sales, or excise taxes are the last itemized deductions disallowed under
subdivision 12.
deleted 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. 14.

Minnesota Statutes 2017 Supplement, section 290.0131, subdivision 10, is amended
to read:


Subd. 10.

Section 179 expensing.

new text beginEffective for property placed in service in taxable
years beginning before January 1, 2018,
new text end80 percent of the amount by which the deduction
allowed under the dollar limits of section 179 of the Internal Revenue Code exceeds the
deduction allowable by section 179 of the Internal Revenue Code, as amended through
December 31, 2003, is an addition.

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.

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 Foreign-derived intangible income. new text end

new text begin The amount of foreign-derived intangible
income deducted under section 250 of the Internal Revenue Code for the taxable year 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. 16.

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


new text begin Subd. 16. new text end

new text begin 529 plan distributions for K-12 expenses. new text end

new text begin The lesser of the following amounts
is an addition:
new text end

new text begin (1) the total distributions for the taxable year from a qualified plan under section 529 of
the Internal Revenue Code, owned by the taxpayer, that are expended for qualified higher
education expenses under section 529(c)(7) of the Internal Revenue Code (expenses for
tuition for elementary or secondary public, private, or religious school); or
new text end

new text begin (2) the total amount required to be reported to the taxpayer by any trustee of a qualified
tuition plan under section 529 of the Internal Revenue Code as earnings on Internal Revenue
Service Form 1099Q for the taxable year.
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. 17.

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


new text begin Subd. 17. new text end

new text begin Qualified business income addition. new text end

new text begin For a trust or estate, the amount deducted
under section 199A of the Internal Revenue Code in computing the federal taxable income
of the trust or estate 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. 18.

Minnesota Statutes 2016, section 290.0132, subdivision 1, is amended to read:


Subdivision 1.

Definition; scope.

(a) For the purposes of this section, "subtraction"
means an amount that deleted text beginshalldeleted text endnew text begin is allowed tonew text end be subtracted from federal deleted text begintaxabledeleted text endnew text begin adjusted grossnew text end
incomenew text begin, or for estates and trusts, federal taxable income,new text end in computing net income for the
taxable year to which the amounts relate.

(b) The subtractions in this section apply to individuals, estates, and trusts.

(c) Unless specifically indicated or unless the context clearly indicates otherwise, no
amount deducted, subtracted, or otherwise excluded in computing federal deleted text begintaxabledeleted text endnew text begin adjusted
gross
new text end incomenew text begin, or for estates and trusts, federal taxable income,new text end is a subtraction under this
section.

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. 19.

Minnesota Statutes 2016, section 290.0132, subdivision 7, is amended to read:


Subd. 7.

Charitable contributions for taxpayers who do not itemize.

deleted text beginTo the extent
not deducted or not deductible under section 408(d)(8)(E) of the Internal Revenue Code in
determining federal taxable income by
deleted text endnew text begin Fornew text end an individual who does not itemize deductions
deleted text begin for federal income tax purposesdeleted text endnew text begin under section 290.0803new text end for the taxable year, an amount
equal to 50 percent of the excess of charitable contributions over $500 allowable as a
deduction for the taxable year under section deleted text begin170(a) of the Internal Revenue Codedeleted text endnew text begin 290.0803,
subdivision 5,
new text end is a subtraction.new text begin The subtraction under this subdivision must not include a
distribution that is excluded from federal adjusted gross income and that is not deductible
under section 408(d)(8)(E) of the Internal Revenue Code.
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. 20.

Minnesota Statutes 2017 Supplement, section 290.0132, subdivision 21, is amended
to read:


Subd. 21.

Military service pension; retirement pay.

To the extent included in federal
deleted text begin taxabledeleted text endnew text begin adjusted grossnew text end income, compensation received from a pension or other retirement
pay from the federal 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 is limited to individuals who do not claim the credit under section 290.0677.

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. 21.

Minnesota Statutes 2017 Supplement, section 290.0132, subdivision 26, is amended
to read:


Subd. 26.

Social Security benefits.

(a) A portion of Social Security benefits is allowed
as a subtraction. The subtraction equals the lesser of Social Security benefits or a maximum
subtraction subject to the limits under paragraphs (b), (c), and (d).

(b) For married taxpayers filing a joint return and surviving spouses, the maximum
subtraction equals deleted text begin$4,500deleted text endnew text begin $4,590new text end. The maximum subtraction is reduced by 20 percent of
provisional income over deleted text begin$77,000deleted text endnew text begin $78,530new text end. In no case is the subtraction less than zero.

(c) For single or head-of-household taxpayers, the maximum subtraction equals deleted text begin$3,500deleted text endnew text begin
$3,570
new text end. The maximum subtraction is reduced by 20 percent of provisional income over
deleted text begin $60,200deleted text endnew text begin $61,400new text end. In no case is the subtraction less than zero.

(d) For married taxpayers filing separate returns, the maximum subtraction equals deleted text begin$2,250deleted text endnew text begin
one-half the maximum subtraction for joint returns under paragraph (b)
new text end. The maximum
subtraction is reduced by 20 percent of provisional income over deleted text begin$38,500deleted text endnew text begin one-half the
maximum subtraction for joint returns under paragraph (b)
new text end. In no case is the subtraction
less than zero.

(e) For purposes of this subdivision, "provisional income" means modified adjusted
gross income as defined in section 86(b)(2) of the Internal Revenue Code, plus one-half of
the Social Security benefits received during the taxable year, and "Social Security benefits"
has the meaning given in section 86(d)(1) of the Internal Revenue Code.

(f) The commissioner shall adjust the maximum subtraction and threshold amounts in
paragraphs (b) to (d) 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) of the Internal Revenue
Code the word deleted text begin"2016"deleted text endnew text begin "2017"new text end shall be substituted for the word deleted text begin"1992." For 2018, the
commissioner shall then determine the percentage 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.
deleted text endnew text begin "2016." new text endThe determination of the commissioner pursuant
to this subdivision must not be considered a rule and is not subject to the Administrative
Procedure Act contained in chapter 14, including section 14.386. The maximum subtraction
and threshold amounts as adjusted must be rounded to the nearest $10 amount. If the amount
ends in $5, the amount is rounded up to the nearest $10 amount.

new text begin EFFECTIVE DATE. new text end

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

Sec. 22.

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 Global intangible low-taxed income. new text end

new text begin The taxpayer's global intangible
low-taxed income included under section 951A of the Internal Revenue Code for the taxable
year 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, 2017.
new text end

Sec. 23.

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


new text begin Subd. 28. new text end

new text begin Deferred foreign income of nonresidents. new text end

new text begin For a nonresident individual the
amount of deferred foreign income recognized because of section 965 of the Internal Revenue
Code is a subtraction.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2016, and before January 1, 2019.
new text end

Sec. 24.

Minnesota Statutes 2016, section 290.0133, subdivision 6, is amended to read:


Subd. 6.

Special deductions.

new text begin(a) new text endThe amount of any special deductions under sections
241 to 247 new text beginof the Internal Revenue Code new text endand deleted text begin965deleted text end new text beginthe amount of foreign derived intangible
income deducted under section 250
new text endof the Internal Revenue Code is an addition.

new text begin (b) The addition under this subdivision is reduced by the amount of the deduction under
section 245A of the Internal Revenue Code that represents amounts included in federal
taxable income in a prior taxable year under section 965 of the Internal Revenue Code.
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, 2016.
new text end

Sec. 25.

Minnesota Statutes 2017 Supplement, section 290.0133, subdivision 12, is amended
to read:


Subd. 12.

Section 179 expensing.

new text beginEffective for property placed in service in taxable
years beginning before January 1, 2018,
new text end80 percent of the amount by which the deduction
allowed under the dollar limits of section 179 of the Internal Revenue Code exceeds the
deduction allowable by section 179 of the Internal Revenue Code, as amended through
December 31, 2003, is an addition.

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. 26.

Minnesota Statutes 2016, section 290.0134, is amended by adding a subdivision
to read:


new text begin Subd. 17. new text end

new text begin Global intangible low-taxed income. new text end

new text begin The taxpayer's global intangible
low-taxed income included under section 951A of the Internal Revenue Code for the taxable
year 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, 2017.
new text end

Sec. 27.

Minnesota Statutes 2016, section 290.0136, is amended to read:


290.0136 CERTAIN PREFERRED STOCK LOSSES.

A taxpayer must compute net income by treating losses from the sale or transfer of
certain preferred stock, which the taxpayer treated as ordinary losses pursuant to Division
A, title III, section 301 of Public Law 110-343, as capital losses. The amount of net income
under section 290.01, subdivision 19; taxable net income under section 290.01, subdivision
22
; taxable income under section 290.01, subdivision 29; the numerator and denominator
in section 290.06, subdivision 2c, paragraph (e); individual alternative minimum taxable
income under section 290.091, subdivision 2; deleted text begincorporate alternative minimum taxable income
under section 290.0921, subdivision 3;
deleted text end and net operating losses under section 290.095 must
be computed for each taxable year as if those losses had been treated by the taxpayer as
capital losses under the Internal Revenue Code, including the limitations under section 1211
of the Internal Revenue Code.

new text begin EFFECTIVE DATE. new text end

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

Sec. 28.

Minnesota Statutes 2016, section 290.05, subdivision 3, is amended to read:


Subd. 3.

Taxes imposed on exempt entities.

(a) An organization exempt from taxation
under subdivision 2 shall, nevertheless, be subject to tax under this chapter to the extent
provided in the following provisions of the Internal Revenue Code:

(1) section 527 (dealing with political organizations);

(2) section 528 (dealing with certain homeowners associations);

(3) sections 511 to 515 (dealing with unrelated business income);

(4) section 521 (dealing with farmers' cooperatives); and

(5) section 6033(e)(2) (dealing with lobbying expense); but notwithstanding this
subdivision, shall be considered an organization exempt from income tax for the purposes
of any law which refers to organizations exempt from income taxes.

(b) The tax shall be imposed on the taxable income of political organizations or
homeowner associations or the unrelated business taxable income, as defined in section 512
of the Internal Revenue Code, of organizations defined in section 511 of the Internal Revenue
Code, provided that the tax is not imposed on:

(1) advertising revenues from a newspaper published by an organization described in
section 501(c)(4) of the Internal Revenue Code; or

(2) revenues from lawful gambling authorized under chapter 349 that are expended for
purposes that qualify for the deduction for charitable contributions under section 170 of the
Internal Revenue Code, disregarding the limitation under section 170(b)(2), but only to the
extent the contributions are not deductible in computing federal taxable income.

The tax shall be at the corporate rates. The tax shall only be imposed on income and
deductions assignable to this state under sections 290.17 to 290.20. To the extent deducted
in computing federal taxable income, the deductions contained in section 290.21 shall not
be allowed in computing Minnesota taxable net income.

(c) The tax shall be imposed on organizations subject to federal tax under section
6033(e)(2) of the Internal Revenue Code, in an amount equal to the corporate tax rate
multiplied by the amount of lobbying expenses taxed under section 6033(e)(2) which are
attributable to lobbying the Minnesota state government.

new text begin (d) In calculating unrelated business taxable income under section 512 of the Internal
Revenue Code, the amount of any net operating loss deduction claimed under section 172
of the Internal Revenue Code is an addition. Taxpayers making an addition under this
paragraph may deduct a net operating loss for the taxable year in the same manner as a
corporation under section 290.095, in a form and manner prescribed by the commissioner,
and may calculate the loss without the application of the limitation provided for under
section 512(a)(6) of the Internal Revenue Code.
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. 29.

Minnesota Statutes 2016, section 290.06, subdivision 1, is amended to read:


Subdivision 1.

Computation, corporations.

new text begin(a) new text endThe franchise tax imposed upon
corporations shall be computed by applying to their taxable income the rate of deleted text begin9.8deleted text endnew text begin 9.06new text end
percent.

new text begin (b) Notwithstanding paragraph (a), the rate for taxable years beginning after December
31, 2017, and before January 1, 2020, is 9.64 percent.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 30.

Minnesota Statutes 2016, section 290.06, subdivision 2c, is amended to read:


Subd. 2c.

Schedules of rates for individuals, estates, and trusts.

(a) The income taxes
imposed by this chapter upon married individuals filing joint returns and surviving spouses
deleted text begin as defined in section 2(a) of the Internal Revenue Codedeleted text end must be computed by applying to
their taxable net income the following schedule of rates:

(1) On the first deleted text begin$35,480deleted text endnew text begin $37,850new text end, 5.35 percent;

(2) On all over deleted text begin$35,480deleted text endnew text begin $37,850new text end, but not over deleted text begin$140,960, 7.05deleted text endnew text begin $150,380, 6.75new text end percent;

(3) On all over deleted text begin$140,960deleted text endnew text begin $150,380new text end, but not over deleted text begin$250,000deleted text endnew text begin $266,700new text end, 7.85 percent;

(4) On all over deleted text begin$250,000deleted text endnew text begin $266,700new text end, 9.85 percent.

Married individuals filing separate returns, estates, and trusts must compute their income
tax by applying the above rates to their taxable income, except that the income brackets
will be one-half of the above amounts.

(b) The income taxes imposed by this chapter upon unmarried individuals must be
computed by applying to taxable net income the following schedule of rates:

(1) On the first deleted text begin$24,270deleted text endnew text begin $25,890new text end, 5.35 percent;

(2) On all over deleted text begin$24,270deleted text endnew text begin $25,890new text end, but not over deleted text begin$79,730, 7.05deleted text endnew text begin $85,060, 6.75new text end percent;

(3) On all over deleted text begin$79,730deleted text endnew text begin $85,060new text end, but not over deleted text begin$150,000deleted text endnew text begin $160,020new text end, 7.85 percent;

(4) On all over deleted text begin$150,000deleted text endnew text begin $160,020new text end, 9.85 percent.

(c) The income taxes imposed by this chapter upon unmarried individuals qualifying as
a head of household as defined in section 2(b) of the Internal Revenue Code must be
computed by applying to taxable net income the following schedule of rates:

(1) On the first deleted text begin$29,880deleted text endnew text begin $31,880new text end, 5.35 percent;

(2) On all over deleted text begin$29,880deleted text endnew text begin $31,880new text end, but not over deleted text begin$120,070, 7.05deleted text endnew text begin $128,090, 6.75new text end percent;

(3) On all over deleted text begin$120,070deleted text endnew text begin $128,090new text end, but not over deleted text begin$200,000deleted text endnew text begin $213,360new text end, 7.85 percent;

(4) On all over deleted text begin$200,000deleted text endnew text begin $213,360new text end, 9.85 percent.

(d) In lieu of a tax computed according to the rates set forth in this subdivision, the tax
of any individual taxpayer whose taxable net income for the taxable year is less than an
amount determined by the commissioner must be computed in accordance with tables
prepared and issued by the commissioner of revenue based on income brackets of not more
than $100. The amount of tax for each bracket shall be computed at the rates set forth in
this subdivision, provided that the commissioner may disregard a fractional part of a dollar
unless it amounts to 50 cents or more, in which case it may be increased to $1.

(e) An individual who is not a Minnesota resident for the entire year must compute the
individual's Minnesota income tax as provided in this subdivision. After the application of
the nonrefundable credits provided in this chapter, the tax liability must then be multiplied
by a fraction in which:

(1) the numerator is the individual's Minnesota source federal adjusted gross income deleted text beginas
defined in section 62 of the Internal Revenue Code
deleted text end and increased by the additions required
under section 290.0131, subdivisions 2 and 6 to deleted text begin11deleted text endnew text begin 10new text end, and reduced by the Minnesota
assignable portion of the subtraction for United States government interest under section
290.0132, subdivision 2, and the subtractions under section 290.0132, subdivisions 9, 10,
14, 15, 17, deleted text beginanddeleted text end 18, new text begin27, and 28, new text endafter applying the allocation and assignability provisions of
section 290.081, clause (a), or 290.17; and

(2) the denominator is the individual's federal adjusted gross income deleted text beginas defined in section
62 of the Internal Revenue Code
deleted text end, increased by the amounts specified in section 290.0131,
subdivisions 2
and 6 to deleted text begin11deleted text endnew text begin 10new text end, and reduced by the amounts specified in section 290.0132,
subdivisions 2, 9, 10, 14, 15, 17, deleted text beginanddeleted text end 18new text begin, 27, and 28new text end.

new text begin (f) For taxable years beginning after December 31, 2017, and before January 1, 2019,
a rate of 6.95 percent applies instead of the 6.75 percent rate in paragraphs (a) to (c) and
for taxable years beginning after December 31, 2018, and before January 1, 2020, a rate of
6.9 percent applies.
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. 31.

Minnesota Statutes 2016, section 290.06, subdivision 2d, is amended to read:


Subd. 2d.

Inflation adjustment of brackets.

(a) For taxable years beginning after
December 31, 2013, the minimum and maximum dollar amounts for each rate bracket for
which a tax is imposed in subdivision 2c shall be adjusted for inflation by the percentage
determined under paragraph (b). deleted text beginFor the purpose of making the adjustment as provided in
this subdivision all of the rate brackets provided in subdivision 2c shall be the rate brackets
as they existed for taxable years beginning after December 31, 2012, and before January 1,
2014.
deleted text end The rate applicable to any rate bracket must not be changed. The dollar amounts
setting forth the tax shall be adjusted to reflect the changes in the rate brackets. The rate
brackets as adjusted must be rounded to the nearest $10 amount. If the rate bracket ends in
$5, it must be rounded up to the nearest $10 amount.

(b) The commissioner shall adjust the rate brackets and 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"2012"deleted text endnew text begin "2017"new text end shall be substituted for the word deleted text begin"1992." For 2014, the
commissioner shall then determine the percent change from the 12 months ending on August
31, 2012, to the 12 months ending on August 31, 2013, and in each subsequent year, from
the 12 months ending on August 31, 2012, to the 12 months ending on August 31 of the
year preceding the taxable year.
deleted text endnew text begin "2016."new text end The determination of the commissioner pursuant
to this subdivision shall not be considered a "rule" and shall not be subject to the
Administrative Procedure Act contained in chapter 14.

No later than December 15 of each year, the commissioner shall announce the specific
percentage that will be used to adjust the tax rate brackets.

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. 32.

Minnesota Statutes 2017 Supplement, 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 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 federal individual income tax return
for the tax year, no credit is allowed for any amount paid to any person unless:

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

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

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

(e) In the case of a nonresident, part-year resident, 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."

(h) For taxpayers with federal adjusted gross income in excess of deleted text begin$50,000deleted text endnew text begin $50,990new text end, the
credit is equal to the lesser of the credit otherwise calculated under this subdivision, or the
amount equal to $600 minus five percent of federal adjusted gross income in excess of
deleted text begin $50,000deleted text endnew text begin $50,990new text end for taxpayers with one qualified individual, or $1,200 minus five percent
of federal adjusted gross income in excess of deleted text begin$50,000deleted text endnew text begin $50,990new text end for taxpayers with two or
more qualified individuals, but in no case is the credit less than zero.

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. 33.

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


Subd. 2a.

Income.

(a) For purposes of this section, "income" means the sum of the
following:

(1) federal adjusted gross income deleted text beginas defined in section 62 of the Internal Revenue Codedeleted text end;
and

(2) the sum of the following amounts to the extent not included in clause (1):

(i) all nontaxable income;

(ii) the amount of a passive activity loss that is not disallowed as a result of section 469,
paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss
carryover allowed under section 469(b) of the Internal Revenue Code;

(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a
solvent individual excluded from gross income under section 108(g) of the Internal Revenue
Code;

(iv) cash public assistance and relief;

(v) any pension or annuity (including railroad retirement benefits, all payments received
under the federal Social Security Act, Supplemental Security Income, and veterans benefits),
which was not exclusively funded by the claimant or spouse, or which was funded exclusively
by the claimant or spouse and which funding payments were excluded from federal adjusted
gross income in the years when the payments were made;

(vi) interest received from the federal or a state government or any instrumentality or
political subdivision thereof;

(vii) workers' compensation;

(viii) nontaxable strike benefits;

(ix) the gross amounts of payments received in the nature of disability income or sick
pay as a result of accident, sickness, or other disability, whether funded through insurance
or otherwise;

(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
1986, as amended through December 31, 1995;

(xi) contributions made by the claimant to an individual retirement account, including
a qualified voluntary employee contribution; simplified employee pension plan;
self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of
the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal
Revenue Code;

(xii) nontaxable scholarship or fellowship grants;

deleted text begin (xiii) the amount of deduction allowed under section 199 of the Internal Revenue Code;
deleted text end

deleted text begin (xiv)deleted text end new text begin(xiii) new text endthe amount of deduction allowed under section 220 or 223 of the Internal
Revenue Code;

deleted text begin (xv)deleted text endnew text begin (xiv)new text end the amount deducted for tuition expenses under section 222 of the Internal
Revenue Code; deleted text beginand
deleted text end

deleted text begin (xvi)deleted text endnew text begin (xv)new text end the amount deducted for certain expenses of elementary and secondary school
teachers under section 62(a)(2)(D) of the Internal Revenue Codedeleted text begin.deleted text endnew text begin; and
new text end

new text begin (xvi) alimony received to the extent not included in the recipient's income.
new text end

In the case of an individual who files an income tax return on a fiscal year basis, the
term "federal adjusted gross income" means federal adjusted gross income reflected in the
fiscal year ending in the next calendar year. Federal adjusted gross income may not be
reduced by the amount of a net operating loss carryback or carryforward or a capital loss
carryback or carryforward allowed for the year.

(b) "Income" does not include:

(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;

(2) amounts of any pension or annuity that were exclusively funded by the claimant or
spouse if the funding payments were not excluded from federal adjusted gross income in
the years when the payments were made;

(3) surplus food or other relief in kind supplied by a governmental agency;

(4) relief granted under chapter 290A;

(5) child support payments received under a temporary or final decree of dissolution or
legal separation; and

(6) restitution payments received by eligible individuals and excludable interest as
defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001,
Public Law 107-16.

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. 34.

Minnesota Statutes 2017 Supplement, 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
1 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"2016"deleted text endnew text begin "2017"new text end shall be substituted
for the word deleted text begin"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.
deleted text endnew text begin "2016."new text end The
determination of the commissioner pursuant to this subdivision must not be considered a
"rule" and is not subject to the Administrative 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, 2017.
new text end

Sec. 35.

Minnesota Statutes 2017 Supplement, section 290.0671, subdivision 1, is amended
to read:


Subdivision 1.

Credit allowed.

(a) An individual who is a resident of Minnesota is
allowed a credit against the tax imposed by this chapter equal to a percentage of earned
income. To receive a credit, a taxpayer must be eligible for a credit under section 32 of the
Internal Revenue Code, except that a taxpayer with no qualifying children who has attained
the age of 21, but not attained age 65 before the close of the taxable year and is otherwise
eligible for a credit under section 32 of the Internal Revenue Code may also receive a credit.

(b) For individuals with no qualifying children, the credit equals 2.10 percent of the first
deleted text begin $6,180deleted text endnew text begin $6,480new text end of earned income. The credit is reduced by 2.01 percent of earned income
or adjusted gross income, whichever is greater, in excess of deleted text begin$8,130deleted text endnew text begin $8,530new text end, but in no case
is the credit less than zero.

(c) For individuals with one qualifying child, the credit equals 9.35 percent of the first
deleted text begin $11,120deleted text endnew text begin $11,670new text end of earned income. The credit is reduced by 6.02 percent of earned income
or adjusted gross income, whichever is greater, in excess of deleted text begin$21,190deleted text endnew text begin $22,340new text end, but in no case
is the credit less than zero.

(d) For individuals with two or more qualifying children, the credit equals 11 percent
of the first deleted text begin$18,240deleted text end new text begin$19,130 new text endof earned income. The credit is reduced by 10.82 percent of
earned income or adjusted gross income, whichever is greater, in excess of deleted text begin$25,130deleted text endnew text begin $26,360new text end,
but in no case is the credit less than zero.

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

(f) For a person who was a resident for the entire tax year and has earned income not
subject to tax under this chapter, including income excluded under section 290.0132,
subdivision 10
, the credit must be allocated based on the ratio of federal adjusted gross
income reduced by the earned income not subject to tax under this chapter over federal
adjusted gross income. For purposes of this paragraph, the following clauses are not
considered "earned income not subject to tax under this chapter":

(1) the subtractions for military pay under section 290.0132, subdivisions 11 and 12;

(2) the exclusion of combat pay under section 112 of the Internal Revenue Code; and

(3) income derived from an Indian reservation by an enrolled member of the reservation
while living on the reservation.

(g) For tax years beginning after December 31, deleted text begin2013deleted text endnew text begin 2018new text end, the deleted text begin$8,130deleted text endnew text begin $8,530new text end in paragraph
(b), the deleted text begin$21,190deleted text endnew text begin $22,340new text end in paragraph (c), and the deleted text begin$25,130deleted text endnew text begin $26,360new text end in paragraph (d), after
being adjusted for inflation under subdivision 7, are each increased by deleted text begin$5,000deleted text end new text begin$5,700 new text endfor
married taxpayers filing joint returns. For tax years beginning after December 31, deleted text begin2013deleted text endnew text begin
2018
new text end, the commissioner shall annually adjust the deleted text begin$5,000deleted text endnew text begin $5,700new 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"2008"deleted text endnew text begin "2017"new text end shall be substituted for the word deleted text begin"1992." For 2014, the
commissioner shall then determine the percent change from the 12 months ending on August
31, 2008, to the 12 months ending on August 31, 2013, and in each subsequent year, from
the 12 months ending on August 31, 2008, to the 12 months ending on August 31 of the
year preceding the taxable year.
deleted text endnew text begin "2016."new text end The earned income thresholds as adjusted for
inflation must be rounded to the nearest $10. If the amount ends in $5, the amount is rounded
up to the nearest $10. The determination of the commissioner under this subdivision is not
a rule under the Administrative Procedure Act.

(h) The commissioner shall construct tables showing the amount of the credit at various
income levels and make them available to taxpayers. The tables shall follow the schedule
contained in this subdivision, except that the commissioner may graduate the transition
between income brackets.

new text begin EFFECTIVE DATE. new text end

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

Sec. 36.

Minnesota Statutes 2016, section 290.0671, subdivision 7, is amended to read:


Subd. 7.

Inflation adjustment.

The earned income amounts used to calculate the credit
and the income thresholds at which the maximum credit begins to be reduced in subdivision
1 must be adjusted for inflation. The commissioner shall adjust 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"2013"deleted text endnew text begin "2017"new text end shall be substituted for the word deleted text begin"1992." For 2015, the
commissioner shall then determine the percent change from the 12 months ending on August
31, 2013, to the 12 months ending on August 31, 2014, and in each subsequent year, from
the 12 months ending on August 31, 2013, to the 12 months ending on August 31 of the
year preceding the taxable year.
deleted text endnew text begin "2016."new text end The earned 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 a rule under the Administrative Procedure Act.

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. 37.

Minnesota Statutes 2017 Supplement, 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 adjusted gross 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 deleted text beginfederaldeleted text end taxablenew text begin netnew text end 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 deleted text begincaredeleted text endnew text begin expensesnew text end under
section deleted text begin213 of the Internal Revenue Codedeleted text endnew text begin 290.0803new 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. 38.

Minnesota Statutes 2016, section 290.0672, subdivision 2, is amended to read:


Subd. 2.

Credit.

A taxpayer is allowed a credit against the tax imposed by this chapter
for long-term care insurance policy premiums paid during the tax year. The credit for each
policy equals 25 percent of premiums paid to the extent not deducted in determining deleted text beginfederaldeleted text end
taxablenew text begin netnew text end income. A taxpayer may claim a credit for only one policy for each qualified
beneficiary. A maximum of $100 applies to each qualified beneficiary. The maximum total
credit allowed per year is $200 for married couples filing joint returns and $100 for all other
filers. For a nonresident or part-year resident, the credit determined under this section must
be allocated based on the percentage calculated under section 290.06, subdivision 2c,
paragraph (e).

new text begin EFFECTIVE DATE. new text end

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

Sec. 39.

Minnesota Statutes 2017 Supplement, section 290.0681, subdivision 1, is amended
to read:


Subdivision 1.

Definitions.

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

(b) "Account" means the historic credit administration account in the special revenue
fund.

(c) "Office" means the State Historic Preservation Office of the Department of
Administration.

(d) "Project" means rehabilitation of a certified historic structure, as defined in section
47(c)(3)(A) of the Internal Revenue Code, that is located in Minnesota and is allowed a
federal credit.

(e) "Federal credit" means the credit allowed under section deleted text begin47(a)(2)deleted text endnew text begin 47(a)new text end of the Internal
Revenue Codenew text begin, except that the amount allowed is deemed to be allocated in the taxable year
that the project is placed in service
new text end.

(f) "Placed in service" has the meaning used in section 47 of the Internal Revenue Code.

(g) "Qualified rehabilitation expenditures" has the meaning given in section 47 of the
Internal Revenue Code.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for applications for allocation certificates
submitted after December 31, 2017.
new text end

Sec. 40.

Minnesota Statutes 2017 Supplement, section 290.0681, subdivision 2, is amended
to read:


Subd. 2.

Credit or grant allowed; certified historic structure.

(a) A credit is allowed
against the tax imposed under this chapter equal to not more than 100 percent of the credit
allowed under section deleted text begin47(a)(2)deleted text endnew text begin 47(a)new text end of the Internal Revenue Code for a project. new text beginThe credit
is payable in an amount equal to one-fifth of the total credit amount allowed in the five
taxable years beginning with the year the project is placed in service.
new text endTo qualify for the
credit:

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

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

(b) The commissioner of administration may pay a grant in lieu of the credit. The grant
equals 90 percent of the credit that would be allowed for the project.new text begin The grant is payable
in an amount equal to one-fifth of 90 percent of the credit that would be allowed for the
project in the five taxable years beginning with the year the project is placed in service.
new text end

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for applications for allocation certificates
submitted after December 31, 2017.
new text end

Sec. 41.

Minnesota Statutes 2016, section 290.0681, subdivision 3, is amended to read:


Subd. 3.

Applications; allocations.

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

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

(1) verify eligibility for the credit or grant;

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for applications for allocation certificates
submitted after December 31, 2017.
new text end

Sec. 42.

Minnesota Statutes 2016, section 290.0681, subdivision 4, is amended to read:


Subd. 4.

Credit certificates; grants.

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for applications for allocation certificates
submitted after December 31, 2017.
new text end

Sec. 43.

Minnesota Statutes 2017 Supplement, section 290.0684, subdivision 1, is amended
to read:


Subdivision 1.

Definitions.

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

(b) "Contribution" means the amount contributed to one or more qualified accounts
except that the amount:

(1) is reduced by any withdrawals or distributions, other than transfers or rollovers to
another qualified account, from a qualified account during the taxable year; and

(2) excludes the amount of any transfers or rollovers from a qualified account made
during the taxable year.

(c) deleted text begin"Federal adjusted gross income" has the meaning given under section 62(a) of the
Internal Revenue Code.
deleted text end

deleted text begin (d)deleted text end "Qualified account" means an account qualifying under section deleted text begin529deleted text end new text begin529(e)(3) new text endof the
Internal Revenue Code.

deleted text begin (e)deleted text endnew text begin (d)new text end "Qualified higher education expenses" has the meaning given in section 529 of
the Internal Revenue Codenew text begin, except section 529(c)(7) of the Internal Revenue Code does not
apply to the definition of qualified higher education expenses
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. 44.

Minnesota Statutes 2017 Supplement, section 290.0684, subdivision 2, is amended
to read:


Subd. 2.

Credit allowed.

(a) An individual who is a resident of Minnesota is allowed a
credit 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. The credit may not exceed the liability for tax under this chapter.

(b) The amount of the credit allowed equals 50 percent of contributions for 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.

(c) For individual filers, the maximum credit is reduced by two percent of adjusted gross
income in excess of deleted text begin$75,000deleted text endnew text begin $76,490new text end.

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

(1) for married couples with adjusted gross income in excess of deleted text begin$75,000deleted text endnew text begin $76,490new text end, but
not more than deleted text begin$100,000deleted text endnew text begin $101,990new text end, the maximum credit is reduced by one percent of adjusted
gross income in excess of deleted text begin$75,000deleted text endnew text begin $76,490new text end;

(2) for married couples with adjusted gross income in excess of deleted text begin$100,000deleted text endnew text begin $101,990new text end, but
not more than deleted text begin$135,000deleted text endnew text begin $137,680new text end, the maximum credit is $250; and

(3) for married couples with adjusted gross income in excess of deleted text begin$135,000deleted text endnew text begin $137,680new text end, the
maximum credit is $250, reduced by one percent of adjusted gross income in excess of
deleted text begin $135,000deleted text endnew text begin $137,680new text end.

(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 deleted text begin"2016"deleted text endnew text begin "2017"new text end is substituted for the word
deleted text begin "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.
deleted text endnew text begin "2016."new text end 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 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. 45.

Minnesota Statutes 2016, section 290.0802, subdivision 2, is amended to read:


Subd. 2.

Subtraction.

(a) A qualified individual is allowed a subtraction from federal
deleted text begin taxabledeleted text endnew text begin adjusted grossnew text end income of the individual's subtraction base amount. The excess of
the subtraction base amount over the taxable net income computed without regard to the
subtraction for the elderly or disabled under section 290.0132, subdivision 5, may be used
to reduce the amount of a lump sum distribution subject to tax under section 290.032.

(b)(1) The initial subtraction base amount equals

(i) $12,000 for a married taxpayer filing a joint return if a spouse is a qualified individual,

(ii) $9,600 for a single taxpayer, and

(iii) $6,000 for a married taxpayer filing a separate federal return.

(2) The qualified individual's initial subtraction base amount, then, must be reduced by
the sum of nontaxable retirement and disability benefits and one-half of the amount of
adjusted gross income in excess of the following thresholds:

(i) $18,000 for a married taxpayer filing a joint return if both spouses are qualified
individuals,

(ii) $14,500 for a single taxpayer or for a married couple filing a joint return if only one
spouse is a qualified individual, and

(iii) $9,000 for a married taxpayer filing a separate federal return.

(3) In the case of a qualified individual who is under the age of 65, the maximum amount
of the subtraction base may not exceed the taxpayer's disability income.

(4) The resulting amount is the subtraction base amount.

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. 46.

new text begin [290.0803] INDIVIDUALS; DEDUCTIONS AND EXEMPTIONS
ALLOWED.
new text end

new text begin Subdivision 1. new text end

new text begin Deduction allowed. new text end

new text begin Individuals are allowed to deduct the sum of the
following amounts in computing taxable net income for the taxable year:
new text end

new text begin (1) the standard or itemized deductions, as provided under subdivision 2 or 3; and
new text end

new text begin (2) the exemption allowance computed under subdivision 9.
new text end

new text begin Subd. 2. new text end

new text begin Standard deduction. new text end

new text begin (a) An individual may elect to claim a standard deduction
in lieu of the itemized deductions allowed under subdivision 3 for the taxable year equal to
the following amount:
new text end

new text begin (1) for a married joint filer or a surviving spouse, $14,000;
new text end

new text begin (2) for a head of household filer, $10,300; or
new text end

new text begin (3) for any other filer, $7,000; plus
new text end

new text begin (4) the additional amount for the taxpayer under paragraph (b).
new text end

new text begin (b) The additional amount equals the sum of the following amounts:
new text end

new text begin (1) $1,300 if the taxpayer has attained age 65 before the close of the taxable year or
$1,600 for such a taxpayer who is not married or a surviving spouse;
new text end

new text begin (2) $1,300 for the spouse of the taxpayer if the spouse has attained the age of 65 before
the close of the taxable year and qualifies under subdivision 9, clause (2);
new text end

new text begin (3) $1,300 if the taxpayer is blind at the close of the taxable year or $1,600 for such a
taxpayer who is not married or a surviving spouse; and
new text end

new text begin (4) $1,300 for the spouse of the taxpayer if the spouse is blind as of the close of the
taxable year and qualifies under subdivision 9, clause (2).
new text end

new text begin (c) For an individual who is a dependent, as defined in section 152 of the Internal Revenue
Code, of another taxpayer for a taxable year beginning in the calendar year in which the
individual's taxable year begins, the standard deduction for that individual is limited to the
greater of:
new text end

new text begin (1) $500; or
new text end

new text begin (2) the sum of $250 and that individual's earned income, as defined in section 32(c) of
the Internal Revenue Code.
new text end

new text begin (d) The standard deduction is zero for (1) a married individual filing a separate return
if either spouse itemizes deductions, and (2) an individual making a return for a period of
less than twelve months on account of changes in the annual accounting period.
new text end

new text begin Subd. 3. new text end

new text begin Itemized deductions. new text end

new text begin (a) An individual who is a resident is allowed itemized
deductions for the taxable year equal to the sum of the following amounts:
new text end

new text begin (1) taxes paid, as provided in subdivision 4;
new text end

new text begin (2) charitable contributions, as provided in subdivision 5;
new text end

new text begin (3) interest, as provided in subdivision 6;
new text end

new text begin (4) medical expenses, as provided in subdivision 7;
new text end

new text begin (5) miscellaneous deductions, as provided in subdivision 8; and
new text end

new text begin (6) losses allowable under section 165(a) of the Internal Revenue Code, other than losses
allowable under that section in computing adjusted gross income, and except that the
provisions of section 165(h)(5) of the Internal Revenue Code apply regardless of the taxable
year; reduced by
new text end

new text begin (7) the amount of the disallowed itemized deductions computed under paragraph (b).
new text end

new text begin (b) The amount of disallowed itemized deductions equals the lesser of:
new text end

new text begin (1) three percent of the excess of the taxpayer's adjusted gross income, over the applicable
amount; or
new text end

new text begin (2) 80 percent of the amount of the itemized deductions, excluding:
new text end

new text begin (i) medical expense deduction under subdivision 7;
new text end

new text begin (ii) any interest deduction under subdivision 6, for investment interest as defined in
section 163(d) of the Internal Revenue Code; and
new text end

new text begin (iii) losses allowable under section 165(c)(2) or (3), or (d), of the Internal Revenue Code,
and allowed under paragraph (a), clause (6).
new text end

new text begin (c) "Applicable amount" means $190,050, or $95,025 for a married individual filing a
separate return.
new text end

new text begin Subd. 4. new text end

new text begin Taxes paid. new text end

new text begin (a) The taxes paid deduction equals the sum of the following
amounts for the taxable year:
new text end

new text begin (1) state and local real and personal property taxes in an amount not to exceed $30,000;
new text end

new text begin (2) foreign income, war profits, and excess profits taxes to the extent not reduced by the
federal foreign tax credit; and
new text end

new text begin (3) for individuals who are allowed a federal foreign tax credit for taxes that do not
qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover
of subnational foreign taxes for the taxable year, but not to exceed the total subnational
foreign taxes reported in claiming the foreign tax credit.
new text end

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

new text begin (1) "carryover of subnational foreign taxes" equals the carryover allowed under section
904(c) of the Internal Revenue Code minus national level foreign taxes to the extent they
exceed the federal foreign tax credit;
new text end

new text begin (2) "federal foreign tax credit" means the credit allowed under section 27 of the Internal
Revenue Code; and
new text end

new text begin (3) "foreign, income, war profits, and excess profits taxes" and "state and local real and
personal property taxes" have the meanings given in section 164 of the Internal Revenue
Code.
new text end

new text begin Subd. 5. new text end

new text begin Charitable contributions. new text end

new text begin The charitable contribution equals the amount of
the charitable contribution deduction allowable to the taxpayer under section 170 of the
Internal Revenue Code, except that the following rules apply:
new text end

new text begin (1) the provisions of section 170(b)(1)(G) apply regardless of the taxable year; and
new text end

new text begin (2) for taxable years beginning after December 31, 2017, determination of carryover
amounts must be made by applying the rules under section 170 of the Internal Revenue
Code based on the charitable contribution deductions claimed and allowable under this
section.
new text end

new text begin Subd. 6. new text end

new text begin Interest deduction. new text end

new text begin The interest deduction equals the amount allowed to the
taxpayer as interest paid or accrued during the taxable year under section 163(d) of the
Internal Revenue Code with the following exceptions:
new text end

new text begin (1) qualified residence interest excludes home equity interest; and
new text end

new text begin (2) acquisition indebtedness must not exceed $750,000 ($375,000 for a married separate
return) for indebtedness incurred on or after December 16, 2017.
new text end

new text begin The definitions of terms under section 163 of the Internal Revenue Code apply for purposes
of this subdivision.
new text end

new text begin Subd. 7. new text end

new text begin Medical expenses. new text end

new text begin The medical expense deduction equals the deduction allowed
for the taxable year under section 213 of the Internal Revenue Code.
new text end

new text begin Subd. 8. new text end

new text begin Miscellaneous deduction. new text end

new text begin The miscellaneous deduction equals the sum of the
following amounts for the taxable year, but excluding any amounts allowed to be deducted
in computing adjusted gross income:
new text end

new text begin (1) impairment-related work expenses allowed under section 67(d) of the Internal Revenue
Code;
new text end

new text begin (2) the deduction for estate tax under section 691(c) of the Internal Revenue Code;
new text end

new text begin (3) any deduction allowable in connection with personal property used in a short sale
as described under section 67(b)(8);
new text end

new text begin (4) the deduction under section 1341 of the Internal Revenue Code;
new text end

new text begin (5) the deduction under section 72(b)(3) of the Internal Revenue Code;
new text end

new text begin (6) the deduction under section 171 of the Internal Revenue Code; and
new text end

new text begin (7) the deduction under section 216 of the Internal Revenue Code.
new text end

new text begin Subd. 9. new text end

new text begin Exemption allowance. new text end

new text begin (a) The exemption allowance is computed as follows:
new text end

new text begin (1) the exemption amount for the taxpayer; plus
new text end

new text begin (2) an additional exemption amount for the spouse of the taxpayer:
new text end

new text begin (i) for a joint return; or
new text end

new text begin (ii) if a joint return is not made by the taxpayer and spouse, and if the spouse, for the
calendar year in which the taxable year of the taxpayer begins, has no gross income and is
not the dependent of another taxpayer; plus
new text end

new text begin (3) an exemption amount for each individual who is a dependent, as defined in section
152 of the Internal Revenue Code, of the taxpayer for the taxable year; minus
new text end

new text begin (4) the disallowed exemption amount under paragraph (d), but the remainder may not
be less than zero.
new text end

new text begin (b) The exemption amount equals $4,150.
new text end

new text begin (c) The disallowed personal exemption amount equals the number of personal exemptions
allowed under paragraph (a) multiplied by (i) the exemption amount under paragraph (b)
and (ii) the applicable percentage.
new text end

new text begin (d) For a married individual filing a separate return, "applicable percentage" means two
percentage points for each $1,250, or fraction of that amount, by which the taxpayer's federal
adjusted gross income for the taxable year exceeds the threshold amount. For all other filers,
applicable percentage means two percentage points for each $2,500, or fraction of that
amount, by which the taxpayer's federal adjusted gross income for the taxable year exceeds
the threshold amount. The applicable percentage must not exceed 100 percent.
new text end

new text begin (e) "Threshold amount" means:
new text end

new text begin (1) $285,050 for a joint return or a surviving spouse;
new text end

new text begin (2) $237,550 for a head of a household;
new text end

new text begin (3) $190,050 for an individual who is not married and who is not a surviving spouse or
head of a household; and
new text end

new text begin (4) $142,500 for a married individual filing a separate return.
new text end

new text begin Subd. 10. new text end

new text begin Indexing. new text end

new text begin (a) For taxable years beginning after December 31, 2018, the
commissioner must annually adjust the dollar amounts in subdivisions 2, 3, and 9, except
the amounts in paragraph (d) of subdivision 9, for inflation as provided in paragraph (b).
new text end

new text begin (b) Each dollar amount is increased by an amount equal to:
new text end

new text begin (1) that dollar amount, multiplied by
new text end

new text begin (2) the cost-of-living adjustment determined under section 1(f)(3) of the Internal Revenue
Code for the calendar year in which the taxable year begins, by substituting "calendar year
2017" for "calendar year 2016" in subparagraph (B) of section 1(f)(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, 2017.
new text end

Sec. 47.

Minnesota Statutes 2017 Supplement, section 290.091, subdivision 2, is amended
to read:


Subd. 2.

Definitions.

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

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

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

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

(i) the charitable contribution deduction under section 170 of the Internal Revenue Code;new text begin
and
new text end

(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 federal alternative minimum taxable income, the excess of the
deduction for depletion allowable under section 611 of the Internal Revenue Code for the
taxable year over the adjusted basis of the property at the end of the taxable year (determined
without regard to the depletion deduction for the taxable year);

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

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

(6) the amount of addition required by section 290.0131, subdivisions 9 to deleted text begin11deleted text endnew text begin 10new text end;

new text begin (7) the deduction allowed under section 199A of the Internal Revenue Code;
new text end

less the sum of the amounts determined under the following:

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

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

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

(iv) amounts subtracted from federal deleted text begintaxabledeleted text endnew text begin adjusted grossnew text end income as provided by
section 290.0132, subdivisions 7, 9 to 15, 17, 21, 24, and 26new text begin to 28new text end; and

(v) 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 Codenew text begin, except that alternative minimum
taxable income must be increased by the amount of the addition under section 290.0131,
subdivision 17
new text end.

(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, 2017.
new text end

Sec. 48.

Minnesota Statutes 2016, section 290.091, subdivision 3, is amended to read:


Subd. 3.

Exemption amount.

(a) For purposes of computing the alternative minimum
tax, the exemption amount isdeleted text begin, for taxable years beginning after December 31, 2005, $60,000deleted text endnew text begin
$75,760
new text end for married couples filing joint returns, deleted text begin$30,000deleted text endnew text begin $37,880new text end for married individuals
filing separate returns, estates, and trusts, and deleted text begin$45,000deleted text endnew text begin $56,820new text end for unmarried individuals.

(b) The exemption amount determined under this subdivision is subject to the phase out
under section 55(d)(3) of the Internal Revenue Code, except that alternative minimum
taxable income as determined under this section must be substituted in the computation of
the phase out.

(c) For taxable years beginning after December 31, deleted text begin2006deleted text endnew text begin 2018new text end, the exemption amount
under paragraph (a) must be adjusted for inflation. The commissioner shall adjust the
exemption amount 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"2005"deleted text endnew text begin "2017"new text end
shall be substituted for the word deleted text begin"1992." For 2007, the commissioner shall then determine
the percent change from the 12 months ending on August 31, 2005, to the 12 months ending
on August 31, 2006, and in each subsequent year, from the 12 months ending on August
31, 2005, to the 12 months ending on August 31 of the year preceding the taxable year.
deleted text endnew text begin
"2016."
new text end The exemption amount as adjusted must be rounded to the nearest $10. If the amount
ends in $5, it must be rounded up to the nearest $10 amount. The determination of the
commissioner under this subdivision is not a rule under the Administrative Procedure Act.

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. 49.

Minnesota Statutes 2016, section 290.0921, subdivision 8, is amended to read:


Subd. 8.

Carryover credit.

(a) A corporation is allowed a credit against qualified regular
tax for qualified alternative minimum tax previously paid. The credit is allowable only deleted text beginif
the corporation has no tax liability under this section for the taxable year and
deleted text end if the
corporation has an alternative minimum tax credit carryover from a previous year. The
credit allowable in a taxable year equals the lesser of

(1) deleted text beginthe excess ofdeleted text end the qualified regular tax for the taxable year deleted text beginover the amount computed
under subdivision 1, clause (1), for the taxable year
deleted text endnew text begin;new text end or

(2) the carryover credit to the taxable year.

(b) For purposes of this subdivision, the following terms have the meanings given.

(1) "Qualified alternative minimum tax" equals the amount determined under subdivision
1 for deleted text beginthedeleted text endnew text begin anew text end taxable yearnew text begin beginning before December 31, 2017new text end.

(2) "Qualified regular tax" means the tax imposed under section 290.06, subdivision 1.

(c) The qualified alternative minimum tax for a taxable year is an alternative minimum
tax credit carryover to each of the taxable years succeeding the taxable year. The entire
amount of the credit must be carried to the earliest taxable year to which the amount may
be carried. Any unused portion of the credit must be carried to the following taxable year.
No credit may be carried to a taxable year in which alternative minimum tax was paid.

(d) An acquiring corporation may carry over this credit from a transferor or distributor
corporation in a corporate acquisition. The provisions of section 381 of the Internal Revenue
Code apply in determining the amount of the carryover, if any.

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. 50.

Minnesota Statutes 2016, section 290.0922, subdivision 1, is amended to read:


Subdivision 1.

Imposition.

(a) In addition to the tax imposed by this chapter without
regard to this section, the franchise tax imposed on a corporation required to file under
section 289A.08, subdivision 3, other than a corporation treated as an "S" corporation under
section 290.9725 for the taxable year includes a tax equal to the following amounts:

If the sum of the corporation's Minnesota
property, payrolls, and sales or receipts is:
the tax equals:
less than
$
deleted text begin 930,000
deleted text end new text begin 990,000
new text end
$
0
$
deleted text begin 930,000
deleted text end new text begin 990,000
new text end
to
$
deleted text begin 1,869,999
deleted text end new text begin 1,989,999
new text end
$
deleted text begin 190
deleted text end new text begin 200
new text end
$
deleted text begin 1,870,000
deleted text end new text begin 1,990,000
new text end
to
$
deleted text begin 9,339,999
deleted text end new text begin 9,959,999
new text end
$
deleted text begin 560
deleted text end new text begin 600
new text end
$
deleted text begin 9,340,000
deleted text end new text begin 9,960,000
new text end
to
$
deleted text begin 18,679,999
deleted text end new text begin 19,929,999
new text end
$
deleted text begin 1,870
deleted text end new text begin 1,990
new text end
$
deleted text begin 18,680,000
deleted text end new text begin 19,930,000
new text end
to
$
deleted text begin 37,359,999
deleted text end new text begin 39,859,999
new text end
$
deleted text begin 3,740
deleted text end new text begin 3,990
new text end
$
deleted text begin 37,360,000
deleted text end new text begin 39,860,000
new text end
or
more
$
deleted text begin 9,340
deleted text end new text begin 9,960
new text end

(b) A tax is imposed for each taxable year on a corporation required to file a return under
section 289A.12, subdivision 3, that is treated as an "S" corporation under section 290.9725
and on a partnership required to file a return under section 289A.12, subdivision 3, other
than a partnership that derives over 80 percent of its income from farming. The tax imposed
under this paragraph is due on or before the due date of the return for the taxpayer due under
section 289A.18, subdivision 1. The commissioner shall prescribe the return to be used for
payment of this tax. The tax under this paragraph is equal to the following amounts:

If the sum of the S corporation's
or partnership's Minnesota
property, payrolls, and sales or
receipts is:
the tax equals:
less than
$
deleted text begin 930,000
deleted text end new text begin 990,000
new text end
$
0
$
deleted text begin 930,000
deleted text end new text begin 990,000
new text end
to
$
deleted text begin 1,869,999
deleted text end new text begin 1,989,999
new text end
$
deleted text begin 190
deleted text end new text begin 200
new text end
$
deleted text begin 1,870,000
deleted text end new text begin 1,990,000
new text end
to
$
deleted text begin 9,339,999
deleted text end new text begin 9,959,999
new text end
$
deleted text begin 560
deleted text end new text begin 600
new text end
$
deleted text begin 9,340,000
deleted text end new text begin 9,960,000
new text end
to
$
deleted text begin 18,679,999
deleted text end new text begin 19,929,999
new text end
$
deleted text begin 1,870
deleted text end new text begin 1,990
new text end
$
deleted text begin 18,680,000
deleted text end new text begin 19,930,000
new text end
to
$
deleted text begin 37,359,999
deleted text end new text begin 39,859,999
new text end
$
deleted text begin 3,740
deleted text end new text begin 3,990
new text end
$
deleted text begin 37,360,000
deleted text end new text begin 39,860,000
new text end
or
more
$
deleted text begin 9,340
deleted text end new text begin 9,960
new text end

(c) The commissioner shall adjust the dollar amounts of both the tax and the property,
payrolls, and sales or receipts thresholds in paragraphs (a) and (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"2012"deleted text endnew text begin "2017"new text end must be substituted for the word deleted text begin"1992."
For 2014, the commissioner shall determine the percentage change from the 12 months
ending on August 31, 2012, to the 12 months ending on August 31, 2013, and in each
subsequent year, from the 12 months ending on August 31, 2012, to the 12 months ending
on August 31 of the year preceding the taxable year.
deleted text endnew text begin "2016."new text end The determination of the
commissioner pursuant to this subdivision is not a "rule" subject to the Administrative
Procedure Act contained in chapter 14. The tax amounts as adjusted must be rounded to the
nearest $10 amount and the threshold amounts must be adjusted to the nearest $10,000
amount. For tax amounts that end in $5, the amount is rounded up to the nearest $10 amount
and for the threshold amounts that end in $5,000, the amount is rounded up to the nearest
$10,000.

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. 51.

Minnesota Statutes 2016, section 290.095, subdivision 4, is amended to read:


Subd. 4.

Computation and modifications.

The following modifications shall be made
in computing a net operating loss in any taxable year and also in computing the taxable net
income for any taxable year before a net operating loss deduction shall be allowed:

(a) No deduction shall be allowed for or with respect to losses connected with income
producing activities if the income therefrom would not be required to be either assignable
to this state or included in computing the taxpayer's taxable net income.

(b) A net operating loss deduction shall not be allowed.

(c) The amount deductible on account of losses from sales or exchanges of capital assets
shall not exceed the amount includable on account of gains from sales or exchanges of
capital assets.

(d) Renegotiation of profits for a prior taxable year under the renegotiation laws of the
United States of America, including renegotiation of the profits with a subcontractor, shall
not enter into the computation.

(e) Federal income and excess profits taxes shall not be allowed as a deduction.

new text begin (f) The 80-percent limitation under section 172(a)(2) of the Internal Revenue Code does
not apply to the computations for corporate taxpayers under this section.
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. 52.

Minnesota Statutes 2017 Supplement, 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) deleted text beginanddeleted text endnew text begin,new text end (f)new text begin, and (i)new text end 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 item (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 federal 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 allocable 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 for wages paid after December 31, 2017.
new text end

Sec. 53.

Minnesota Statutes 2016, section 290.21, is amended by adding a subdivision to
read:


new text begin Subd. 9. new text end

new text begin Deferred foreign income. new text end

new text begin The income of domestic corporations that is included
in net income under section 965 of the Internal Revenue Code is dividend income.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for each taxpayer's last
taxable year beginning before January 1, 2018.
new text end

Sec. 54.

Minnesota Statutes 2016, section 290.34, is amended by adding a subdivision to
read:


new text begin Subd. 5. new text end

new text begin Insurance companies; interest expense limitation. new text end

new text begin To be consistent with the
federal treatment of the interest expense limitation under section 163(j) of the Internal
Revenue Code for an affiliated group that includes an insurance company taxable under
chapter 297I and exempt from taxation under section 290.05, subdivision 1, clause (c), the
rules under this subdivision apply. In that case, the interest expense limitation under section
163(j) must be computed for the corporation subject to tax under this chapter using the
adjusted taxable income of the insurance companies that are part of the affiliated group and
taxed under chapter 297I.
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. 55.

Minnesota Statutes 2016, section 290.92, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

(1) Wages. For purposes of this section, the term "wages"
means the same as that term is defined in section 3401(a) deleted text beginanddeleted text endnew text begin,new text end (f)new text begin, and (i)new text end of the Internal
Revenue Code.

(2) Payroll period. For purposes of this section the term "payroll period" means a period
for which a payment of wages is ordinarily made to the employee by the employee's
employer, and the term "miscellaneous payroll period" means a payroll period other than a
daily, weekly, biweekly, semimonthly, monthly, quarterly, semiannual, or annual payroll
period.

(3) Employee. For purposes of this section the term "employee" means any resident
individual performing services for an employer, either within or without, or both within and
without the state of Minnesota, and every nonresident individual performing services within
the state of Minnesota, the performance of which services constitute, establish, and determine
the relationship between the parties as that of employer and employee. As used in the
preceding sentence, the term "employee" includes an officer of a corporation, and an officer,
employee, or elected official of the United States, a state, or any political subdivision thereof,
or the District of Columbia, or any agency or instrumentality of any one or more of the
foregoing.

(4) Employer. For purposes of this section the term "employer" means any person,
including individuals, fiduciaries, estates, trusts, partnerships, limited liability companies,
and corporations transacting business in or deriving any income from sources within the
state of Minnesota for whom an individual performs or performed any service, of whatever
nature, as the employee of such person, except that if the person for whom the individual
performs or performed the services does not have control of the payment of the wages for
such services, the term "employer," except for purposes of paragraph (1), means the person
having control of the payment of such wages. As used in the preceding sentence, the term
"employer" includes any corporation, individual, estate, trust, or organization which is
exempt from taxation under section 290.05 and further includes, but is not limited to, officers
of corporations who have control, either individually or jointly with another or others, of
the payment of the wages.

(5) Number of withholding exemptions claimed. For purposes of this section, the term
"number of withholding exemptions claimed" means the number of withholding exemptions
claimed in a withholding exemption certificate in effect under subdivision 5, except that if
no such certificate is in effect, the number of withholding exemptions claimed shall be
considered to be zero.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for wages paid after July 1, 2018.
new text end

Sec. 56.

Minnesota Statutes 2017 Supplement, section 290A.03, subdivision 3, is amended
to read:


Subd. 3.

Income.

(a) "Income" means the sum of the following:

(1) federal adjusted gross income as defined in the Internal Revenue Code; and

(2) the sum of the following amounts to the extent not included in clause (1):

(i) all nontaxable income;

(ii) the amount of a passive activity loss that is not disallowed as a result of section 469,
paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss
carryover allowed under section 469(b) of the Internal Revenue Code;

(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a
solvent individual excluded from gross income under section 108(g) of the Internal Revenue
Code;

(iv) cash public assistance and relief;

(v) any pension or annuity (including railroad retirement benefits, all payments received
under the federal Social Security Act, Supplemental Security Income, and veterans benefits),
which was not exclusively funded by the claimant or spouse, or which was funded exclusively
by the claimant or spouse and which funding payments were excluded from federal adjusted
gross income in the years when the payments were made;

(vi) interest received from the federal or a state government or any instrumentality or
political subdivision thereof;

(vii) workers' compensation;

(viii) nontaxable strike benefits;

(ix) the gross amounts of payments received in the nature of disability income or sick
pay as a result of accident, sickness, or other disability, whether funded through insurance
or otherwise;

(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
1986, as amended through December 31, 1995;

(xi) contributions made by the claimant to an individual retirement account, including
a qualified voluntary employee contribution; simplified employee pension plan;
self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of
the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal
Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for
the claimant and spouse;

(xii) to the extent not included in federal adjusted gross income, distributions received
by the claimant or spouse from a traditional or Roth style retirement account or plan;

(xiii) nontaxable scholarship or fellowship grants;

(xiv) deleted text beginthe amount of deduction allowed under section 199 of the Internal Revenue Codedeleted text endnew text begin
alimony received to the extent not included in the recipient's income
new text end;

(xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue
Code;

(xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue
Code; and

(xvii) the amount deducted for certain expenses of elementary and secondary school
teachers under section 62(a)(2)(D) of the Internal Revenue Code.

In the case of an individual who files an income tax return on a fiscal year basis, the
term "federal adjusted gross income" shall mean federal adjusted gross income reflected in
the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced
by the amount of a net operating loss carryback or carryforward or a capital loss carryback
or carryforward allowed for the year.

(b) "Income" does not include:

(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;

(2) amounts of any pension or annuity which was exclusively funded by the claimant
or spouse and which funding payments were not excluded from federal adjusted gross
income in the years when the payments were made;

(3) to the extent included in federal adjusted gross income, amounts contributed by the
claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed
the retirement base amount reduced by the amount of contributions excluded from federal
adjusted gross income, but not less than zero;

(4) surplus food or other relief in kind supplied by a governmental agency;

(5) relief granted under this chapter;

(6) child support payments received under a temporary or final decree of dissolution or
legal separation; 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, thenew text begin following terms have the meanings given them:
new text end

new text begin (1) new text end"exemption amount" means the exemption amount under section deleted text begin151(d) of the Internal
Revenue Code
deleted text endnew text begin 290.0803, subdivision 9,new text end for the taxable year for which the income is reported;

new text begin (2)new text end "retirement base amount" means the deductible amount for the taxable year for the
claimant and spouse under section 219(b)(5)(A) of the Internal Revenue Code, adjusted for
inflation as provided in section 219(b)(5)(C) of the Internal Revenue Code, without regard
to whether the claimant or spouse claimed a deduction; and

new text begin (3) new text end"traditional or Roth style retirement account or plan" means retirement plans under
sections 401, 403, 408, 408A, and 457 of the Internal Revenue Code.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property tax refunds based on property
taxes payable after December 31, 2018, and rent paid after December 31, 2017.
new text end

Sec. 57.

Minnesota Statutes 2016, section 290A.03, subdivision 12, is amended to read:


Subd. 12.

Gross rent.

(a) "Gross rent" means rental paid for the right of occupancy, at
arm's length, of a homestead, exclusive of charges for any medical services furnished by
the landlord as a part of the rental agreement, whether expressly set out in the rental
agreement or not.

(b) The gross rent of a resident of a nursing home or intermediate care facility is deleted text begin$350deleted text endnew text begin
$490
new text end per month. The gross rent of a resident of an adult foster care home is deleted text begin$550deleted text endnew text begin $760new text end per
month. Beginning for rent paid in deleted text begin2002deleted text endnew text begin 2019new text end, the commissioner shall annually adjust for
inflation the gross rent amounts stated in this paragraph. The adjustment must be made in
accordance with section 1(f) of the Internal Revenue Code, except that for purposes of this
paragraph the percentage increase shall be determined from the year ending on June 30,
deleted text begin 2001deleted text endnew text begin 2017new text end, to the year ending on June 30 of the year in which the rent is paid. The
commissioner shall round the gross rents to the nearest $10 amount. If the amount ends in
$5, the commissioner shall round it up to the next $10 amount. The determination of the
commissioner under this paragraph is not a rule under the Administrative Procedure Act.

(c) If the landlord and tenant have not dealt with each other at arm's length and the
commissioner determines that the gross rent charged was excessive, the commissioner may
adjust the gross rent to a reasonable amount for purposes of this chapter.

(d) Any amount paid by a claimant residing in property assessed pursuant to section
273.124, subdivision 3, 4, 5, or 6 for occupancy in that property shall be excluded from
gross rent for purposes of this chapter. However, property taxes imputed to the homestead
of the claimant or the dwelling unit occupied by the claimant that qualifies for homestead
treatment pursuant to section 273.124, subdivision 3, 4, 5, or 6 shall be included within the
term "property taxes payable" as defined in subdivision 13, notwithstanding the fact that
ownership is not in the name of the claimant.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for refunds based on rent paid after
December 31, 2017, and property taxes payable after December 31, 2018.
new text end

Sec. 58.

Minnesota Statutes 2017 Supplement, section 290A.03, subdivision 15, is amended
to read:


Subd. 15.

Internal Revenue Code.

"Internal Revenue Code" means the Internal Revenue
Code of 1986, as amended through deleted text beginDecember 16, 2016deleted text endnew text begin March 31, 2018new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property tax refunds based on property
taxes payable after December 31, 2018, and rent paid after December 31, 2017.
new text end

Sec. 59.

Minnesota Statutes 2016, section 290A.04, subdivision 4, is amended to read:


Subd. 4.

Inflation adjustment.

(a) Beginning for property tax refunds payable in calendar
year 2002, the commissioner shall annually adjust the dollar amounts of the income thresholds
and the maximum refunds under subdivisions 2 and 2a for inflation. The commissioner
shall make the inflation adjustments deleted text beginin accordance with section 1(f) of the Internal Revenue
Code, except that for purposes of this subdivision
deleted text endnew text begin using the Consumer Price Index for All
Urban Consumers.
new text end The percentage increase shall be determined as provided in this
subdivision.

(b) In adjusting the dollar amounts of the income thresholds and the maximum refunds
under subdivision 2 for inflation, the percentage increase shall be determined from the year
ending on June 30, 2013, to the year ending on June 30 of the year preceding that in which
the refund is payable.

(c) In adjusting the dollar amounts of the income thresholds and the maximum refunds
under subdivision 2a for inflation, the percentage increase shall be determined from the
year ending on June 30, 2013, to the year ending on June 30 of the year preceding that in
which the refund is payable.

(d) The commissioner shall use the appropriate percentage increase to annually adjust
the income thresholds and maximum refunds under subdivisions 2 and 2a for inflation
without regard to whether or not the income tax brackets are adjusted for inflation in that
year. The commissioner shall round the thresholds and the maximum amounts, as adjusted
to the nearest $10 amount. If the amount ends in $5, the commissioner shall round it up to
the next $10 amount.

(e) The commissioner shall annually announce the adjusted refund schedule at the same
time provided under section 290.06. The determination of the commissioner under this
subdivision is not a rule under the Administrative Procedure Act.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for refunds based on rent paid after
December 31, 2018, and property taxes payable after December 31, 2019.
new text end

Sec. 60.

Minnesota Statutes 2017 Supplement, section 291.005, subdivision 1, is amended
to read:


Subdivision 1.

Scope.

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

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

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

(3) "Internal Revenue Code" means the United States Internal Revenue Code of 1986,
as amended through deleted text beginDecember 16, 2016deleted text endnew text begin March 31, 2018new text end.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for estates of decedents
dying after December 31, 2017.
new text end

Sec. 61.

Minnesota Statutes 2016, section 297A.68, subdivision 25, is amended to read:


Subd. 25.

Sale of property used in a trade or business.

(a) The sale of tangible personal
property primarily used in a trade or business is exempt if the sale is not made in the normal
course of business of selling that kind of property and if one of the following conditions is
satisfied:

(1) the sale occurs in a transaction subject to or described in section 118, 331, 332, 336,
337, 338, 351, 355, 368, 721, 731, 1031, or 1033 of the Internal Revenue Codenew text begin, as amended
through December 16, 2016
new text end;

(2) the sale is between members of a controlled group as defined in section 1563(a) of
the Internal Revenue Code;

(3) the sale is a sale of farm machinery;

(4) the sale is a farm auction sale;

(5) the sale is a sale of substantially all of the assets of a trade or business; or

(6) the total amount of gross receipts from the sale of trade or business property made
during the calendar month of the sale and the preceding 11 calendar months does not exceed
$1,000.

The use, storage, distribution, or consumption of tangible personal property acquired as
a result of a sale exempt under this subdivision is also exempt.

(b) For purposes of this subdivision, the following terms have the meanings given.

(1) A "farm auction" is a public auction conducted by a licensed auctioneer if substantially
all of the property sold consists of property used in the trade or business of farming and
property not used primarily in a trade or business.

(2) "Trade or business" includes the assets of a separate division, branch, or identifiable
segment of a trade or business if, before the sale, the income and expenses attributable to
the separate division, branch, or identifiable segment could be separately ascertained from
the books of account or record (the lease or rental of an identifiable segment does not qualify
for the exemption).

(3) A "sale of substantially all of the assets of a trade or business" must occur as a single
transaction or a series of related transactions within the 12-month period beginning on the
date of the first sale of assets intended to qualify for the exemption provided in paragraph
(a), clause (5).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after December 31, 2017.
new text end

Sec. 62.

Minnesota Statutes 2016, section 297B.03, is amended to read:


297B.03 EXEMPTIONS.

There is specifically exempted from the provisions of this chapter and from computation
of the amount of tax imposed by it the following:

(1) purchase or use, including use under a lease purchase agreement or installment sales
contract made pursuant to section 465.71, of any motor vehicle by the United States and its
agencies and instrumentalities and by any person described in and subject to the conditions
provided in section 297A.67, subdivision 11;

(2) purchase or use of any motor vehicle by any person who was a resident of another
state or country at the time of the purchase and who subsequently becomes a resident of
Minnesota, provided the purchase occurred more than 60 days prior to the date such person
began residing in the state of Minnesota and the motor vehicle was registered in the person's
name in the other state or country;

(3) purchase or use of any motor vehicle by any person making a valid election to be
taxed under the provisions of section 297A.90;

(4) purchase or use of any motor vehicle previously registered in the state of Minnesota
when such transfer constitutes a transfer within the meaning of section 118, 331, 332, 336,
337, 338, 351, 355, 368, 721, 731, 1031, 1033, or 1563(a) of the Internal Revenue Codenew text begin,
as amended through December 16, 2016
new text end;

(5) purchase or use of any vehicle owned by a resident of another state and leased to a
Minnesota-based private or for-hire carrier for regular use in the transportation of persons
or property in interstate commerce provided the vehicle is titled in the state of the owner or
secured party, and that state does not impose a sales tax or sales tax on motor vehicles used
in interstate commerce;

(6) purchase or use of a motor vehicle by a private nonprofit or public educational
institution for use as an instructional aid in automotive training programs operated by the
institution. "Automotive training programs" includes motor vehicle body and mechanical
repair courses but does not include driver education programs;

(7) purchase of a motor vehicle by an ambulance service licensed under section 144E.10
when that vehicle is equipped and specifically intended for emergency response or for
providing ambulance service;

(8) purchase of a motor vehicle by or for a public library, as defined in section 134.001,
subdivision 2
, as a bookmobile or library delivery vehicle;

(9) purchase of a ready-mixed concrete truck;

(10) purchase or use of a motor vehicle by a town for use exclusively for road
maintenance, including snowplows and dump trucks, but not including automobiles, vans,
or pickup trucks;

(11) purchase or use of a motor vehicle by a corporation, society, association, foundation,
or institution organized and operated exclusively for charitable, religious, or educational
purposes, except a public school, university, or library, but only if the vehicle is:

(i) 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

(ii) 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;

(12) purchase of a motor vehicle for use by a transit provider exclusively to provide
transit service is exempt if the transit provider is either (i) receiving financial assistance or
reimbursement under section 174.24 or 473.384, or (ii) operating under section 174.29,
473.388, or 473.405;

(13) purchase or use of a motor vehicle by a qualified business, as defined in section
469.310, located in a job opportunity building zone, if the motor vehicle is principally
garaged in the job opportunity building zone and is primarily used as part of or in direct
support of the person's operations carried on in the job opportunity building zone. The
exemption under this clause applies to sales, if the purchase was made and delivery received
during the duration of the job opportunity building zone. The exemption under this clause
also applies to any local sales and use tax;

(14) purchase of a leased vehicle by the lessee who was a participant in a lease-to-own
program from a charitable organization that is:

(i) described in section 501(c)(3) of the Internal Revenue Code; and

(ii) licensed as a motor vehicle lessor under section 168.27, subdivision 4; and

(15) purchase of 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 Social Security Act, as amended by Section 4161 of the Omnibus Budget
Reconciliation Act of 1990.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after December 31, 2017.
new text end

Sec. 63.

Minnesota Statutes 2017 Supplement, section 462D.06, subdivision 1, is amended
to read:


Subdivision 1.

Subtraction.

(a) As provided in section 290.0132, subdivision 25, an
account holder is allowed a subtraction from deleted text beginthedeleted text end federal deleted text begintaxabledeleted text endnew text begin adjusted grossnew text end income equal
to interest or dividends earned on the first-time home buyer savings account during the
taxable year.

(b) The subtraction under paragraph (a) is allowed each year for the taxable years
including and following the taxable year in which the account was established. No person
other than the account holder is allowed a subtraction under this section.

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. 64.

Minnesota Statutes 2017 Supplement, section 462D.06, subdivision 2, is amended
to read:


Subd. 2.

Addition.

(a) As provided in section 290.0131, subdivision 14, an account
holder must add to federal deleted text begintaxabledeleted text endnew text begin adjusted grossnew text end income the following amounts:

(1) the amount in excess of the total contributions for all taxable years that is withdrawn
and used for other than eligible costs, or for a transfer permitted under section 462D.04,
subdivision 2; and

(2) the amount remaining in the first-time home buyer savings account at the close of
the tenth taxable year that exceeds the total contributions to the account for all taxable years.

(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 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. 65.

Minnesota Statutes 2016, section 469.316, subdivision 1, is amended to read:


Subdivision 1.

Application.

An individual, estate, or trust operating a trade or business
in a job opportunity building zone, and an individual, estate, or trust making a qualifying
investment in a qualified business operating in a job opportunity building zone qualifies for
the exemptions from taxes imposed under chapter 290, as provided in this section. The
exemptions provided under this section apply only to the extent that the income otherwise
would be taxable under chapter 290. Subtractions under this section from new text beginfederal adjusted
gross income,
new text endfederal taxable income, alternative minimum taxable income, or any other
base subject to tax are limited to the amount that otherwise would be included in the tax
base absent the exemption under this section. This section applies only to taxable years
beginning during the duration of the job opportunity building zone.

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. 66.

Minnesota Statutes 2016, section 469.317, is amended to read:


469.317 CORPORATE FRANCHISE TAX EXEMPTION.

(a) A qualified business is exempt from taxation under section 290.02deleted text begin, the alternative
minimum tax under section 290.0921,
deleted text end and the minimum fee under section 290.0922deleted text begin,deleted text end on the
portion of its income attributable to operations within the zone. deleted text beginThis exemption is determined
as follows:
deleted text end

deleted text begin (1)deleted text end new text begin(b) new text endFor purposes of the tax imposed under section 290.02, new text beginthe exemption is determined
new text end by multiplying its taxable net income by its zone percentage and by its relocation payroll
percentage and subtracting the result in determining taxable incomedeleted text begin;deleted text endnew text begin.
new text end

deleted text begin (2) for purposes of the alternative minimum tax under section 290.0921, by multiplying
its alternative minimum taxable income by its zone percentage and by its relocation payroll
percentage and reducing alternative minimum taxable income by this amount; and
deleted text end

deleted text begin (3)deleted text end new text begin(c) new text endFor purposes of the minimum fee under section 290.0922, new text beginthe exemption is
determined
new text endby excluding property and payroll in the zone from the computations of the fee
or by exempting the entity under section 290.0922, subdivision 2, clause (7).

deleted text begin (b)deleted text endnew text begin (d)new text end No subtraction is allowed under this section in excess of 20 percent of the sum
of the corporation's job opportunity building zone payroll and the adjusted basis of the
property at the time that the property is first used in the job opportunity building zone by
the corporation.

deleted text begin (c)deleted text endnew text begin (e)new text end This section applies only to taxable years beginning during the duration of the
job opportunity building zone.

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. 67. new text beginESTIMATED TAXES; EXCEPTIONS.
new text end

new text begin No addition to tax, penalties, or interest may be made under Minnesota Statutes, section
289A.25 or 289A.26, for any period before September 15, 2018, with respect to an
underpayment of estimated tax, to the extent that the underpayment was created or increased
by the inclusion of deferred foreign income in federal taxable income under section 965 of
the Internal Revenue Code under this article.
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. 68. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, sections 290.01, subdivision 29a; 290.0131, subdivisions 7,
11, 12, and 13; 290.0132, subdivisions 8, 19, and 20; 290.0133, subdivisions 13 and 14;
290.0921, subdivisions 1, 2, 3a, 4, and 6; and 290.10, subdivision 2,
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 taxable years beginning after December
31, 2017.
new text end

ARTICLE 2

INDIVIDUAL INCOME, CORPORATE FRANCHISE, AND ESTATE TAXES

Section 1.

Minnesota Statutes 2016, section 116J.8737, subdivision 5, is amended to read:


Subd. 5.

Credit allowed.

(a)(1) A qualified investor or qualified fund is eligible for a
credit equal to 25 percent of the qualified investment in a qualified small business.
Investments made by a pass-through entity qualify for a credit only if the entity is a qualified
fund. The commissioner must not allocate more than deleted text begin$15,000,000deleted text endnew text begin $10,000,000new text end in credits
to qualified investors or qualified funds for taxable years beginning after December 31,
deleted text begin 2013deleted text endnew text begin 2017new text end, and before January 1, deleted text begin2017, and must not allocate more than $10,000,000 in
credits to qualified investors or qualified funds for taxable years beginning after December
31, 2016, and before January 1, 2018
deleted text endnew text begin 2019new text end; and

(2) deleted text beginfor taxable years beginning after December 31, 2014, and before January 1, 2018,deleted text end
50 percent must be allocated to credits for qualifying investments in qualified greater
Minnesota businesses and minority- or women-owned qualified small businesses in
Minnesota. Any portion of a taxable year's credits that is reserved for qualifying investments
in greater Minnesota businesses and minority- or women-owned qualified small businesses
in Minnesota that is not allocated by September 30 of the taxable year is available for
allocation to other credit applications beginning on October 1. Any portion of a taxable
year's credits that is not allocated by the commissioner does not cancel and may be carried
forward to subsequent taxable years until all credits have been allocated.

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

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

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

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

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

(d) Applications for tax credits for 2010 must be made available on the department's
Web site by September 1, 2010, and the department must begin accepting applications by
September 1, 2010. Applications for subsequent years must be made available by November
1 of the preceding year.

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

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

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

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

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

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

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

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

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

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. 2.

Minnesota Statutes 2016, section 116J.8737, subdivision 12, is amended to read:


Subd. 12.

Sunset.

This section expires for taxable years beginning after December 31,
deleted text begin 2017deleted text endnew text begin 2018new text end, except that reporting requirements under subdivision 6 and revocation of credits
under subdivision 7 remain in effect through deleted text begin2019deleted text endnew text begin 2020new text end for qualified investors and qualified
funds, and through deleted text begin2021deleted text endnew text begin 2022new text end for qualified small businesses, reporting requirements under
subdivision 9 remain in effect through deleted text begin2022deleted text endnew text begin 2023new text end, and the appropriation in subdivision 11
remains in effect through deleted text begin2021deleted text endnew text begin 2022new 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. 3.

Minnesota Statutes 2017 Supplement, section 290.01, subdivision 4a, is amended
to read:


Subd. 4a.

Financial institution.

(a) "Financial institution" means:

(1) any corporation or other business entity registered (i) under state law as a bank
holding company; (ii) under the federal Bank Holding Company Act of 1956, as amended;
or (iii) as a savings and loan holding company under the federal National Housing Act, as
amended;

(2) a national bank organized and existing as a national bank association pursuant to the
provisions of United States Code, title 12, chapter 2;

(3) a savings association or federal savings bank as defined in United States Code, title
12, section 1813(b)(1);

(4) any bank or thrift institution incorporated or organized under the laws of any state;

(5) any corporation organized under United States Code, title 12, sections 611 to 631;

(6) any agency or branch of a foreign depository as defined under United States Code,
title 12, section 3101;

(7) any corporation or other business entity that is more than 50 percent owned, directly
or indirectly, by any person or business entity described in clauses (1) to (6), other than an
insurance company taxable under chapter 297I;

(8) a corporation or other business entity that derives more than 50 percent of its total
gross income for financial accounting purposes from finance leases. For the purposes of
this clause, "gross income" means the average from the current tax year and immediately
preceding two years and excludes gross income from incidental or occasional transactions.
For purposes of this clause, "finance lease" means any lease transaction that is the functional
equivalent of an extension of credit and that transfers substantially all the benefits and risks
incident to the ownership of property, including any direct financing lease or leverage lease
that meets the criteria of Financial Accounting Standards Board Statement No. 13, accounting
for leases, or any other lease that is accounted for as financing by a lessor under generally
accepted accounting principles; or

(9) any other person or business entity, other than an insurance company deleted text begintaxable under
chapter 297I
deleted text end, that derives more than 50 percent of its gross income from activities that an
entity described in clauses (2) to (6) or (8) is authorized to transact. For the purposes of this
clause, gross income does not include income from nonrecurring, extraordinary items.

(b) The commissioner is authorized to exclude any person from the application of
paragraph (a), clause (9), if the person proves by clear and convincing evidence that the
person's income-producing activity is not in substantial competition with any person described
in paragraph (a), clauses (2) to (6) or (8).

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2016, section 290.01, is amended by adding a subdivision to
read:


new text begin Subd. 5c. new text end

new text begin Disqualified captive insurance company. new text end

new text begin (a) "Disqualified captive insurance
company" means a company that:
new text end

new text begin (1)(i) is licensed as a captive insurance company under the laws of any state or foreign
country; or
new text end

new text begin (ii) derives 80 percent or more of its total premiums for the taxable year from entities
that are members of the unitary business, as that term is used in section 290.17; and
new text end

new text begin (2)(i) receives less than 50 percent of its gross receipts for the taxable year from
premiums; or
new text end

new text begin (ii) pays less than 0.25 percent of its total premiums for the taxable year in tax under
chapter 297I or a comparable tax of another state or country.
new text end

new text begin (b) For purposes of this subdivision, "premiums" means amounts paid for arrangements
that constitute insurance for federal income tax purposes, but excludes return premiums,
premiums for reinsurance assumed from other insurance companies, and any other premiums
that are or would be exempt from taxation under section 297I.05 as a result of their type or
character, if the insurance was for business in Minnesota.
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, 2016.
new text end

Sec. 5.

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


new text begin Subd. 29. new text end

new text begin Disallowed section 280E expenses; medical cannabis manufacturers. new text end

new text begin The
amount of expenses of a medical cannabis manufacturer, as defined under section 152.22,
subdivision 7, related to the business of medical cannabis under sections 152.21 to 152.37,
and not allowed for federal income tax purposes under section 280E of the Internal Revenue
Code is a subtraction.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

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 Prepared food donation. new text end

new text begin The amount of charitable contributions under section
170 of the Internal Revenue Code used to claim the credit under section 290.06, subdivision
39, 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. 7.

Minnesota Statutes 2016, section 290.0134, is amended by adding a subdivision
to read:


new text begin Subd. 18. new text end

new text begin Disallowed section 280E expenses; medical cannabis manufacturers. new text end

new text begin The
amount of expenses of a medical cannabis manufacturer, as defined under section 152.22,
subdivision 7, related to the business of medical cannabis under sections 152.21 to 152.37,
and not allowed for federal income tax purposes under section 280E of the Internal Revenue
Code is a subtraction.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Minnesota Statutes 2017 Supplement, section 290.05, subdivision 1, is amended
to read:


Subdivision 1.

Exempt entities.

The following corporations, individuals, estates, trusts,
and organizations shall be exempted from taxation under this chapter, provided that every
such person or corporation claiming exemption under this chapter, in whole or in part, must
establish to the satisfaction of the commissioner the taxable status of any income or activity:

(a) corporations, individuals, estates, and trusts engaged in the business of mining or
producing iron ore and mining, producing, or refining other ores, metals, and minerals, the
mining, production, or refining of which is subject to the occupation tax imposed by section
298.01; but if any such corporation, individual, estate, or trust engages in any other business
or activity or has income from any property not used in such business it shall be subject to
this tax computed on the net income from such property or such other business or activity.
Royalty shall not be considered as income from the business of mining or producing iron
ore within the meaning of this section;

(b) the United States of America, the state of Minnesota or any political subdivision of
either agencies or instrumentalities, whether engaged in the discharge of governmental or
proprietary functions; and

(c) any insurance company, deleted text beginas defined in section 290.17, subdivision 4, paragraph (j),
but including any insurance company licensed and domiciled in another state that grants,
on a reciprocal basis, exemption from retaliatory taxes
deleted text endnew text begin other than a disqualified captive
insurance company
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, 2016.
new text end

Sec. 9.

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


new text begin Subd. 39. new text end

new text begin Prepared food donation credit. new text end

new text begin (a) A qualifying taxpayer is allowed a credit
against the tax imposed by this chapter equal to 20 percent of the taxpayer's eligible charitable
food donation. The credit may not exceed the taxpayer's liability for tax and may not be
carried forward to any other taxable year.
new text end

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

new text begin (1) "eligible charitable food donation" means a contribution of prepared food allowable
as a charitable deduction for the taxable year under section 170(a) of the Internal Revenue
Code, subject to the limitations of section 170(b) of the Internal Revenue Code, and
determined without regard to whether or not the taxpayer itemizes deductions;
new text end

new text begin (2) "prepared food" means food that meets all quality and labeling standards imposed
by federal, state, and local laws and regulations even though the food may not be readily
marketable due to appearance, age, freshness, grade, size, surplus, or other conditions, and
includes:
new text end

new text begin (i) food that is cooked or heated by the qualifying taxpayer;
new text end

new text begin (ii) two or more ingredients mixed together to be eaten as a single item; and
new text end

new text begin (iii) any ingredients supplied for ingestion or chewing by humans that are consumed for
their taste or nutritional value; and
new text end

new text begin (3) "qualifying taxpayer" means an individual or entity that makes a charitable food
donation in Minnesota and is engaged in a trade or business that includes regularly selling
prepared food.
new text end

new text begin (c) A food donation for which a credit is claimed under this section may not be deducted
as a charitable contribution deduction under section 290.0803.
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 partner, member, shareholder, or
owner based on their share of the entity's income for the taxable year.
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. 10.

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


Subdivision 1.

Credit allowed.

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 11.

Minnesota Statutes 2016, section 290.0685, is amended by adding a subdivision
to read:


new text begin Subd. 1a. new text end

new text begin Definitions. new text end

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

new text begin (b) "Certificate of birth resulting in stillbirth" means the printed certificate of birth
resulting in stillbirth issued under section 144.2151 or for a stillbirth occurring in another
state or country a similar certificate issued under that state's or country's law.
new text end

new text begin (c) "Eligible individual" means an individual who is:
new text end

new text begin (1)(i) a resident; or
new text end

new text begin (ii) the nonresident spouse of a resident who is a member of armed forces of the United
States or the United Nations; and
new text end

new text begin (2)(i) the individual who gave birth resulting in stillbirth and is listed as a parent on the
certificate of birth resulting in stillbirth;
new text end

new text begin (ii) if no individual meets the requirements of clause (i) for a stillbirth that occurs in this
state, then the first parent listed on the certificate of birth resulting in stillbirth; or
new text end

new text begin (iii) the individual who gave birth resulting in stillbirth for a birth outside of this state
for which no certificate of birth resulting in stillbirth was issued.
new text end

new text begin (d) "Stillbirth" means a birth for which a fetal death report would be required under
section 144.222, subdivision 1, if the birth occurred in this state.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 12.

Minnesota Statutes 2017 Supplement, section 290.0686, subdivision 1, is amended
to read:


Subdivision 1.

Definitions.

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

(b) "Master's degree program" means a graduate-level program at an accredited university
leading to a master of arts or science degree in new text begineither new text enda core content area directly related to
a qualified teacher's licensure fieldnew text begin or special educationnew text end. new text beginExcept for a special education
program authorized under paragraph (e),
new text endthe 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 innew text begin eithernew text end a core content
area in which the teacher provides direct classroom instructionnew text begin or a special education
program
new text end.

(c) "Qualified teacher" means a person who:

(1) holds a teaching license issued by the licensing division in the Department of
Education on behalf of the Professional Educator Licensing and Standards Board both when
the teacher begins the master's degree program and when the teacher completes the master's
degree program;

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

(3) completes the master's degree program during the taxable year.

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

new text begin (e) "Special education" means a program of study directly related to licensure in
developmental disabilities, early childhood special education, emotional or behavioral
disorders, autism spectrum disorders, or learning disabilities.
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. 13.

new text begin [290.0687] TAX CREDIT; RAILROAD CROSSING IMPROVEMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Credit allowed. new text end

new text begin An individual or entity operating a railroad is allowed
a credit against the liability for tax equal to 50 percent of the expenditures during the taxable
year on qualified costs.
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) "Crossing" means a grade crossing as defined in section 219.16.
new text end

new text begin (c) "Liability for tax" means the sum of the tax imposed under sections 290.06,
subdivision 1 or 2c; and 290.091 for the taxable year, reduced by the sum of the
nonrefundable credits allowed under this chapter.
new text end

new text begin (d) "Qualified costs" means amounts expended to improve a priority crossing that:
new text end

new text begin (1) increase the safety of the crossing by installing, facilitating the installation of, or
improving the quality of active traffic signals or controls or by assisting in implementing
grade separation for the crossing;
new text end

new text begin (2) would qualify for depreciation deductions under section 167(a) of the Internal Revenue
Code without regard to whether the improvements are property of the taxpayer; and
new text end

new text begin (3) are not required by law to be made by the railroad.
new text end

new text begin (e) "Railroad" means a rail carrier as defined in United States Code, title 49, section
20102, as amended.
new text end

new text begin (f) "Priority crossing" means a crossing that is designated by the commissioner of
transportation under subdivision 5.
new text end

new text begin Subd. 3. new text end

new text begin Carryover. new text end

new text begin The credit for a taxable year must not exceed the taxpayer's liability
for tax. If the credit for a taxable year exceeds the liability for tax, the excess is a carryover
to each of the 15 succeeding taxable years. The entire amount of the excess unused credit
for the taxable year must be carried first to the earliest of the taxable years to which the
credit may be carried and then to each successive year to which the credit may be carried.
The amount of the unused credit that may be added under this subdivision must not exceed
the liability for tax less the credit for the taxable year.
new text end

new text begin Subd. 4. new text end

new text begin Partnerships and S corporations. new text end

new text begin For a railroad operated as a partnership, a
limited liability company taxed as a partnership, or an S corporation, the credit under this
section is passed through to each partner, member, or shareholder in proportion to their
share of the entity's net income for the taxable year.
new text end

new text begin Subd. 5. new text end

new text begin Designation of priority crossings. new text end

new text begin (a) By October 1, 2018, the commissioner
of transportation shall designate a list of at least 15 priority crossings that qualify for the
tax credit under this section and publish the list on the Web site of the Department of
Transportation. The list establishes priority crossings, expenditures for which qualify for
the tax credit under this section. The commissioner may revise the list of priority crossings
as the commissioner determines appropriate, based on changing conditions and circumstances.
new text end

new text begin (b) In establishing a list of priority crossings, the commissioner of transportation shall
use a methodology for evaluating the priority for and cost-effectiveness of expenditures for
improving public safety following or similar to the methods used in preparing the study
required by Laws 2014, chapter 312, article 10, section 10, with any modifications or
improvements the commissioner determines appropriate.
new text end

new text begin (c) Actions of the commissioner of transportation in establishing a list of priority crossings
under this subdivision are not an administrative rule subject to the Administrative Procedure
Act in chapter 14, including section 14.386.
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, and applies to expenditures made after October 1, 2018.
new text end

Sec. 14.

Minnesota Statutes 2017 Supplement, section 290.091, subdivision 2, is amended
to read:


Subd. 2.

Definitions.

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

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

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

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

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

(ii) the medical expense deduction;

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

(iv) the impairment-related work expenses of a 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 federal alternative minimum taxable income, the excess of the
deduction for depletion allowable under section 611 of the Internal Revenue Code for the
taxable year over the adjusted basis of the property at the end of the taxable year (determined
without regard to the depletion deduction for the taxable year);

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

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

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

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

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

(iv) amounts subtracted from federal taxable income as provided by section 290.0132,
subdivisions 7
, 9 to 15, 17, 21, 24, deleted text beginanddeleted text end 26new text begin, and 29new text end; and

(v) 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, 2017.
new text end

Sec. 15.

Minnesota Statutes 2017 Supplement, section 290.17, subdivision 4, is amended
to read:


Subd. 4.

Unitary business principle.

(a) If a trade or business conducted wholly within
this state or partly within and partly without this state is part of a unitary business, the entire
income of the unitary business is subject to apportionment pursuant to section 290.191.
Notwithstanding subdivision 2, paragraph (c), none of the income of a unitary business is
considered to be derived from any particular source and none may be allocated to a particular
place except as provided by the applicable apportionment formula. The provisions of this
subdivision do not apply to business income subject to subdivision 5, income of an insurance
company, or income of an investment company determined under section 290.36.

(b) The term "unitary business" means business activities or operations which result in
a flow of value between them. The term may be applied within a single legal entity or
between multiple entities and without regard to whether each entity is a sole proprietorship,
a corporation, a partnership or a trust.

(c) Unity is presumed whenever there is unity of ownership, operation, and use, evidenced
by centralized management or executive force, centralized purchasing, advertising,
accounting, or other controlled interaction, but the absence of these centralized activities
will not necessarily evidence a nonunitary business. Unity is also presumed when business
activities or operations are of mutual benefit, dependent upon or contributory to one another,
either individually or as a group.

(d) Where a business operation conducted in Minnesota is owned by a business entity
that carries on business activity outside the state different in kind from that conducted within
this state, and the other business is conducted entirely outside the state, it is presumed that
the two business operations are unitary in nature, interrelated, connected, and interdependent
unless it can be shown to the contrary.

(e) Unity of ownership does not exist when two or more corporations are involved unless
more than 50 percent of the voting stock of each corporation is directly or indirectly owned
by a common owner or by common owners, either corporate or noncorporate, or by one or
more of the member corporations of the group. For this purpose, the term "voting stock"
shall include membership interests of mutual insurance holding companies formed under
section 66A.40.

(f) The net income and apportionment factors under section 290.191 or 290.20 of foreign
corporations and other foreign entitiesnew text begin, but excluding a disqualified captive insurance
company,
new text end which are part of a unitary business shall not be included in the net income or
the apportionment factors of the unitary business; except that the income and apportionment
factors of a foreign entity, other than an entity treated as a C corporation for federal income
tax purposes, that are included in the federal taxable income, as defined in section 63 of the
Internal Revenue Code as amended through the date named in section 290.01, subdivision
19
, of a domestic corporation, domestic entity, or individual must be included in determining
net income and the factors to be used in the apportionment of net income pursuant to section
290.191 or 290.20. A foreign corporation or other foreign entity which is not included on
a combined report and which is required to file a return under this chapter shall file on a
separate return basis.

(g) For purposes of determining the net income of a unitary business and the factors to
be used in the apportionment of net income pursuant to section 290.191 or 290.20, there
must be included only the income and apportionment factors of domestic corporations or
other domestic entities that are determined to be part of the unitary business pursuant to this
subdivision, notwithstanding that foreign corporations or other foreign entities might be
included in the unitary business; except that the income and apportionment factors of a
foreign entity, other than an entity treated as a C corporation for federal income tax purposes,
that is included in the federal taxable income, as defined in section 63 of the Internal Revenue
Code as amended through the date named in section 290.01, subdivision 19, of a domestic
corporation, domestic entity, or individual must be included in determining net income and
the factors to be used in the apportionment of net income pursuant to section 290.191 or
290.20.

(h) Each corporation or other entity, except a sole proprietorship, that is part of a unitary
business must file combined reports as the commissioner determines. On the reports, all
intercompany transactions between entities included pursuant to paragraph (g) must be
eliminated and the entire net income of the unitary business determined in accordance with
this subdivision is apportioned among the entities by using each entity's Minnesota factors
for apportionment purposes in the numerators of the apportionment formula and the total
factors for apportionment purposes of all entities included pursuant to paragraph (g) in the
denominators of the apportionment formula. Except as otherwise provided by paragraph
(f), all sales of the unitary business made within this state pursuant to section 290.191 or
290.20 must be included on the combined report of a corporation or other entity that is a
member of the unitary business and is subject to the jurisdiction of this state to impose tax
under this chapter.

(i) If a corporation has been divested from a unitary business and is included in a
combined report for a fractional part of the common accounting period of the combined
report:

(1) its income includable in the combined report is its income incurred for that part of
the year determined by proration or separate accounting; and

(2) its sales, property, and payroll included in the apportionment formula must be prorated
or accounted for separately.

(j) For purposes of this subdivision, "insurance company" means an insurance company,
as defined in section 290.01, subdivision 5b, that isdeleted text begin:
deleted text end

deleted text begin (1) licensed to engage in the business of insurance in Minnesota pursuant to chapter
60A; or
deleted text end

deleted text begin (2) domiciled and licensed to engage in the business of insurance in another state or
country that imposes retaliatory taxes, fines, deposits, penalties, licenses, or fees and that
does not grant, on a reciprocal basis, exemption from such retaliatory taxes to insurance
companies or their agents domiciled in Minnesota.
deleted text end

deleted text begin (k) For purposes of this subdivision, "retaliatory taxes" means taxes imposed on insurance
companies organized in another state or country that result from the fact that an insurance
company organized in the taxing jurisdiction and doing business in the other jurisdiction is
subject to taxes, fines, deposits, penalties, licenses, or fees in an amount exceeding that
imposed by the taxing jurisdiction upon an insurance company organized in the other state
or country and doing business to the same extent in the taxing jurisdiction
deleted text endnew text begin not a disqualified
captive insurance company
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, 2016.
new text end

Sec. 16.

Minnesota Statutes 2016, section 291.03, subdivision 8, is amended to read:


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 deleted text begin(7)deleted text endnew text begin (8)new text end, 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.

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 2017 Supplement, 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 federal 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 include:

(i) cash;

(ii) cash equivalents;

(iii) publicly traded securities; or

(iv) any assets not used in the operation of the trade or business.

(6) For property consisting of shares of stock or other ownership interests in an entity,
the value of items described in clause (5) must be excluded in the valuation of the decedent's
interest in the entity.

(7) The decedentnew text begin or the decedent's spousenew text end continuously owned the property,new text begin or an
undivided or joint interest in the property,
new text end including property the decedentnew text begin or the decedent's
spouse
new text end is deemed to own under sections 2036, 2037, deleted text beginanddeleted text end 2038new text begin, 2040, or 2044new text end of the Internal
Revenue Code,new text begin or under subdivision 1d,new text end 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.new text begin For the purposes of
the three-year holding period under this clause, any ownership by the decedent's spouse,
whether the spouse predeceases or survives the decedent, is attributed to the decedent.
new text end

(8) 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.

(9) 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 December 31, 2017.
new text end

Sec. 18.

Minnesota Statutes 2016, section 291.03, subdivision 10, is amended to read:


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 federal 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 decedentnew text begin or the decedent's spousenew text end continuously owned the property,new text begin or an
undivided or joint interest in the property,
new text end including property the decedentnew text begin or the decedent's
spouse
new text end is deemed to own under sections 2036, 2037, deleted text beginanddeleted text end 2038new text begin, 2040, or 2044new text end of the Internal
Revenue Code,new text begin or under subdivision 1d,new text end 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.new text begin For the
purposes of the three-year holding period under this clause, any ownership by the decedent's
spouse, whether the spouse predeceases or survives the decedent, is attributed to the decedent.
new text end

(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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for estates of decedents
dying after December 31, 2017.
new text end

Sec. 19.

Minnesota Statutes 2017 Supplement, 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 deleted text begin(7)deleted text endnew text begin (8)new text end; 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).

(d) The tax under this subdivision does not apply to the acquisition of title or possession
of the qualified property by a federal, state, or local government unit, or any other entity
with the power of eminent domain for a public purpose, as defined in section 117.025,
subdivision 11, within the three-year holding period.

(e) This subdivision shall not apply as a result of any of the following:

(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

(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 begin (f) This paragraph applies only to estates of decedents dying after December 31, 2011,
and before January 1, 2017, for which no tax liability was reported on the final estate tax
return. For purposes of estates qualifying under this paragraph, the amount of the exclusion
claimed by the estate for purposes of calculating the tax under paragraph (b) is deemed to
be the minimum amount of the exclusion necessary to reduce the amount of estate tax to
zero, without regard to the amount of the exclusion actually claimed on the final estate tax
return. The provisions of this paragraph expire effective January 1, 2021.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin The provisions of this section are effective retroactively for estates
of decedents dying after December 31, 2011, and amended returns and claims for refund
of recapture tax may be filed without regard to any applicable statute of limitation.
new text end

ARTICLE 3

SALES AND USE TAXES

Section 1.

Minnesota Statutes 2016, section 295.50, subdivision 4, is amended to read:


Subd. 4.

Health care provider.

(a) "Health care provider" means:

(1) a person whose health care occupation is regulated or required to be regulated by
the state of Minnesota furnishing any or all of the following goods or services directly to a
patient or consumer: medical, surgical, optical, visual, dental, hearing, nursing services,
drugs, laboratory, diagnostic or therapeutic services;

(2) a person who provides goods and services not listed in clause (1) that qualify for
reimbursement under the medical assistance program provided under chapter 256B;

(3) a staff model health plan company;

(4) an ambulance service required to be licensed; deleted text beginor
deleted text end

(5) a person who sells or repairs hearing aids and related equipment or prescription
eyewearnew text begin; or
new text end

new text begin (6) a massage therapistnew text end.

(b) Health care provider does not include:

(1) hospitals; medical supplies distributors, except as specified under paragraph (a),
clause (5); nursing homes licensed under chapter 144A or licensed in any other jurisdiction;
wholesale drug distributors; pharmacies; surgical centers; bus and taxicab transportation,
or any other providers of transportation services other than ambulance services required to
be licensed; supervised living facilities for persons with developmental disabilities, licensed
under Minnesota Rules, parts 4665.0100 to 4665.9900; housing with services establishments
required to be registered under chapter 144D; board and lodging establishments providing
only custodial services that are licensed under chapter 157 and registered under section
157.17 to provide supportive services or health supervision services; adult foster homes as
defined in Minnesota Rules, part 9555.5105; day training and habilitation services for adults
with developmental disabilities as defined in section 252.41, subdivision 3; boarding care
homes, as defined in Minnesota Rules, part 4655.0100; and adult day care centers as defined
in Minnesota Rules, part 9555.9600;

(2) home health agencies as defined in Minnesota Rules, part 9505.0175, subpart 15; a
person providing personal care services and supervision of personal care services as defined
in Minnesota Rules, part 9505.0335; a person providing home care nursing services as
defined in Minnesota Rules, part 9505.0360; and home care providers required to be licensed
under chapter 144A;

(3) a person who employs health care providers solely for the purpose of providing
patient services to its employees;

(4) an educational institution that employs health care providers solely for the purpose
of providing patient services to its students if the institution does not receive fee for service
payments or payments for extended coverage; and

(5) a person who receives all payments for patient services from health care providers,
surgical centers, or hospitals for goods and services that are taxable to the paying health
care providers, surgical centers, or hospitals, as provided under section 295.53, subdivision
1
, clause (3) or (4), or from a source of funds that is exempt from tax under this chapter.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for gross revenues received after June
30, 2018.
new text end

Sec. 2.

Minnesota Statutes 2016, section 295.50, is amended by adding a subdivision to
read:


new text begin Subd. 8a. new text end

new text begin Massage therapist. new text end

new text begin "Massage therapist" means a person providing massage
therapy services who registers with the commissioner to pay the tax imposed under section
295.52 prior to the calendar quarter in which the massage therapy services are provided.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for gross revenues received after June
30, 2018.
new text end

Sec. 3.

Minnesota Statutes 2016, section 295.50, is amended by adding a subdivision to
read:


new text begin Subd. 8b. new text end

new text begin Massage therapy services. new text end

new text begin (a) "Massage therapy services" or "massage
therapy" means a health care service provided by a massage therapist that involves systematic
and structured touch and palpation and pressure and movement of the muscles, tendons,
ligaments, and fascia, in order to reduce muscle tension, relieve soft tissue pain, improve
circulation, increase flexibility, increase activity of the parasympathetic branch of the
autonomic nervous system, or promote general wellness.
new text end

new text begin (b) Massage therapy services or massage therapy excludes services described in paragraph
(a) that are provided by a licensed health care facility or professional or upon written referral
from a licensed health care facility or professional for treatment of illness, injury, or disease.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for gross revenues received after June
30, 2018.
new text end

Sec. 4.

Minnesota Statutes 2016, section 295.50, subdivision 9b, is amended to read:


Subd. 9b.

Patient services.

(a) "Patient services" means inpatient and outpatient services
and other goods and services provided by hospitals, surgical centers, or health care providers.
They include the following health care goods and services provided to a patient or consumer:

(1) bed and board;

(2) nursing services and other related services;

(3) use of hospitals, surgical centers, or health care provider facilities;

(4) medical social services;

(5) drugs, biologicals, supplies, appliances, and equipment;

(6) other diagnostic or therapeutic items or services;

(7) medical or surgical services;

(8) items and services furnished to ambulatory patients not requiring emergency care;
deleted text begin and
deleted text end

(9) emergency servicesnew text begin; and
new text end

new text begin (10) massage therapy servicesnew text end.

(b) "Patient services" does not include:

(1) services provided to nursing homes licensed under chapter 144A;

(2) examinations for purposes of utilization reviews, insurance claims or eligibility,
litigation, and employment, including reviews of medical records for those purposes;

(3) services provided to and by community residential mental health facilities licensed
under Minnesota Rules, parts 9520.0500 to 9520.0670, and to and by residential treatment
programs for children with severe emotional disturbance licensed or certified under chapter
245A;

(4) services provided to and by community support programs and family community
support programs approved under Minnesota Rules, parts 9535.1700 to 9535.1760, or
certified as mental health rehabilitative services under chapter 256B;

(5) services provided to and by community mental health centers as defined in section
245.62, subdivision 2;

(6) services provided to and by assisted living programs and congregate housing
programs;

(7) hospice care services;

(8) home and community-based waivered services under sections 256B.0915, 256B.49,
and 256B.501;

(9) targeted case management services under sections 256B.0621; 256B.0625,
subdivisions 20, 20a, 33, and 44
; and 256B.094; and

(10) services provided to the following: supervised living facilities for persons with
developmental disabilities licensed under Minnesota Rules, parts 4665.0100 to 4665.9900;
housing with services establishments required to be registered under chapter 144D; board
and lodging establishments providing only custodial services that are licensed under chapter
157 and registered under section 157.17 to provide supportive services or health supervision
services; adult foster homes as defined in Minnesota Rules, part 9555.5105; day training
and habilitation services for adults with developmental disabilities as defined in section
252.41, subdivision 3; boarding care homes as defined in Minnesota Rules, part 4655.0100;
adult day care services as defined in section 245A.02, subdivision 2a; and home health
agencies as defined in Minnesota Rules, part 9505.0175, subpart 15, or licensed under
chapter 144A.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for gross revenues received after June
30, 2018.
new text end

Sec. 5.

Minnesota Statutes 2017 Supplement, section 297A.61, subdivision 3, is amended
to read:


Subd. 3.

Sale and purchase.

(a) "Sale" and "purchase" include, but are not limited to,
each of the transactions listed in this subdivision. In applying the provisions of this chapter,
the terms "tangible personal property" and "retail sale" include the taxable services listed
in paragraph (g), clause (6), items (i) to (vi) and (viii), and the provision of these taxable
services, unless specifically provided otherwise. Services performed by an employee for
an employer are not taxable. Services performed by a partnership or association for another
partnership or association are not taxable if one of the entities owns or controls more than
80 percent of the voting power of the equity interest in the other entity. Services performed
between members of an affiliated group of corporations are not taxable. For purposes of
the preceding sentence, "affiliated group of corporations" means those entities that would
be classified as members of an affiliated group as defined under United States Code, title
26, section 1504, disregarding the exclusions in section 1504(b).

(b) Sale and purchase include:

(1) any transfer of title or possession, or both, of tangible personal property, whether
absolutely or conditionally, for a consideration in money or by exchange or barter; and

(2) the leasing of or the granting of a license to use or consume, for a consideration in
money or by exchange or barter, tangible personal property, other than a manufactured
home used for residential purposes for a continuous period of 30 days or more.

(c) Sale and purchase include the production, fabrication, printing, or processing of
tangible personal property for a consideration for consumers who furnish either directly or
indirectly the materials used in the production, fabrication, printing, or processing.

(d) Sale and purchase include the preparing for a consideration of food. Notwithstanding
section 297A.67, subdivision 2, taxable food includes, but is not limited to, the following:

(1) prepared food sold by the retailer;

(2) soft drinks;

(3) candy; and

(4) dietary supplements.

(e) A sale and a purchase includes the furnishing for a consideration of electricity, gas,
water, or steam for use or consumption within this state.

(f) A sale and a purchase includes the transfer for a consideration of prewritten computer
software whether delivered electronically, by load and leave, or otherwise.

(g) A sale and a purchase includes the furnishing for a consideration of the following
services:

(1) the privilege of admission to places of amusement, recreational areas, or athletic
events, and the making available of amusement devices, tanning facilities, reducing salons,
steam baths, health clubs, and spas or athletic facilities;

(2) lodging and related services by a hotel, rooming house, resort, campground, motel,
or trailer camp, including furnishing the guest of the facility with access to telecommunication
services, and the granting of any similar license to use real property in a specific facility,
other than the renting or leasing of it for a continuous period of 30 days or more under an
enforceable written agreement that may not be terminated without prior notice and including
accommodations intermediary services provided in connection with other services provided
under this clause;

(3) nonresidential parking services, whether on a contractual, hourly, or other periodic
basis, except for parking at a meter;

(4) the granting of membership in a club, association, or other organization if:

(i) the club, association, or other organization makes available for the use of its members
sports and athletic facilities, without regard to whether a separate charge is assessed for use
of the facilities; and

(ii) use of the sports and athletic facility is not made available to the general public on
the same basis as it is made available to members.

Granting of membership means both onetime initiation fees and periodic membership dues.
Sports and athletic facilities include golf courses; tennis, racquetball, handball, and squash
courts; basketball and volleyball facilities; running tracks; exercise equipment; swimming
pools; and other similar athletic or sports facilities;

(5) delivery of aggregate materials by a third party, excluding delivery of aggregate
material used in road construction; and delivery of concrete block by a third party if the
delivery would be subject to the sales tax if provided by the seller of the concrete block.
For purposes of this clause, "road construction" means construction of:

(i) public roads;

(ii) cartways; and

(iii) private roads in townships located outside of the seven-county metropolitan area
up to the point of the emergency response location sign; and

(6) services as provided in this clause:

(i) laundry and dry cleaning services including cleaning, pressing, repairing, altering,
and storing clothes, linen services and supply, cleaning and blocking hats, and carpet,
drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not
include services provided by coin operated facilities operated by the customer;

(ii) motor vehicle washing, waxing, and cleaning services, including services provided
by coin operated facilities operated by the customer, and rustproofing, undercoating, and
towing of motor vehicles;

(iii) building and residential cleaning, maintenance, and disinfecting services and pest
control and exterminating services;

(iv) detective, security, burglar, fire alarm, and armored car services; but not including
services performed within the jurisdiction they serve by off-duty licensed peace officers as
defined in section 626.84, subdivision 1, or services provided by a nonprofit organization
or any organization at the direction of a county for monitoring and electronic surveillance
of persons placed on in-home detention pursuant to court order or under the direction of the
Minnesota Department of Corrections;

(v) pet grooming services;

(vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting
and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor plant
care; tree, bush, shrub, and stump removal, except when performed as part of a land clearing
contract as defined in section 297A.68, subdivision 40; and tree trimming for public utility
lines. Services performed under a construction contract for the installation of shrubbery,
plants, sod, trees, bushes, and similar items are not taxable;

(vii) massagesdeleted text begin, except when provided by a licensed health care facility or professional
or upon written referral from a licensed health care facility or professional for treatment of
illness, injury, or disease
deleted text end; and

(viii) the furnishing of lodging, board, and care services for animals in kennels and other
similar arrangements, but excluding veterinary and horse boarding services.

(h) A sale and a purchase includes the furnishing for a consideration of tangible personal
property or taxable services by the United States or any of its agencies or instrumentalities,
or the state of Minnesota, its agencies, instrumentalities, or political subdivisions.

(i) A sale and a purchase includes the furnishing for a consideration of
telecommunications services, ancillary services associated with telecommunication services,
and pay television services. Telecommunication services include, but are not limited to, the
following services, as defined in section 297A.669: air-to-ground radiotelephone service,
mobile telecommunication service, postpaid calling service, prepaid calling service, prepaid
wireless calling service, and private communication services. The services in this paragraph
are taxed to the extent allowed under federal law.

(j) A sale and a purchase includes the furnishing for a consideration of installation if the
installation charges would be subject to the sales tax if the installation were provided by
the seller of the item being installed.

(k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer to a
customer when (1) the vehicle is rented by the customer for a consideration, or (2) the motor
vehicle dealer is reimbursed pursuant to a service contract as defined in section 59B.02,
subdivision
11.

(l) A sale and a purchase includes furnishing for a consideration of specified digital
products or other digital products or granting the right for a consideration to use specified
digital products or other digital products on a temporary or permanent basis and regardless
of whether the purchaser is required to make continued payments for such right. Wherever
the term "tangible personal property" is used in this chapter, other than in subdivisions 10
and 38, the provisions also apply to specified digital products, or other digital products,
unless specifically provided otherwise or the context indicates otherwise.

(m) The sale of the privilege of admission under section 297A.61, subdivision 3,
paragraph (g), clause (1), to a place of amusement, recreational area, or athletic event
includes all charges included in the privilege of admission's sales price, without deduction
for amenities that may be provided, unless the amenities are separately stated and the
purchaser of the privilege of admission is entitled to add or decline the amenities, and the
amenities are not otherwise taxable.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after June
30, 2018.
new text end

Sec. 6.

Minnesota Statutes 2017 Supplement, section 297A.67, subdivision 34, is amended
to read:


Subd. 34.

Precious metal bullionnew text begin and bullion coinnew text end.

(a) Precious metal bullion is exempt.
For purposes of this subdivisiondeleted text begin,deleted text endnew text begin:
new text end

new text begin (1)new text end "precious metal bullion" means bars or rounds that consist of 99.9 percent or more
by weight of either gold, silver, platinum, or palladium and are marked with weight, purity,
and contentdeleted text begin.deleted text endnew text begin; and
new text end

new text begin (2) "bullion coin" means a coin as described in section 80G.01, subdivision 2.
new text end

(b) The exemption under this subdivision does not apply to sales and purchases of
jewelry, works of art, or scrap metal.

(c) The intent of this subdivision is to eliminate the difference in tax treatment between
the sale of precious metal bullion new text beginand bullion coin new text endand the sale of stock, bullion ETFs,
bonds, and other investment instruments.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after June
30, 2018.
new text end

Sec. 7.

Minnesota Statutes 2016, section 297A.67, is amended by adding a subdivision to
read:


new text begin Subd. 37. new text end

new text begin Massage therapy. new text end

new text begin Massage therapy services subject to tax under section
295.52 or provided upon referral from a professional or licensed health care facility for
treatment of illness, injury, or disease 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, 2018.
new text end

Sec. 8.

Minnesota Statutes 2016, section 297A.67, is amended by adding a subdivision to
read:


new text begin Subd. 38. 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, 2018.
new text end

Sec. 9.

Minnesota Statutes 2016, section 297A.67, is amended by adding a subdivision to
read:


new text begin Subd. 39. new text end

new text begin Ticket purchasing rights to collegiate events. new text end

new text begin The sale of the privilege of
admission under section 297A.61, subdivision 3, paragraph (g), clause (1), does not include
consideration paid for the right to purchase a ticket to a collegiate athletic event in a preferred
area, and the sale of the right to purchase a ticket is exempt provided that:
new text end

new text begin (1) the consideration paid for the right to purchase in the preferred area is used entirely
to support student scholarship costs;
new text end

new text begin (2) the consideration paid for the right to purchase in the preferred area is separately
stated from the admission price; and
new text end

new text begin (3) the admission price is equal to or greater than the highest priced general admission
ticket for the closest seat not in the preferred area.
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 297A.68, subdivision 29, is amended to read:


Subd. 29.

Prizes.

new text begin(a) new text endTangible personal property that will be given as prizes to players
in games of skill or chance is exempt ifnew text begin:
new text end

new text begin (1)new text end the games are conducted at events such as community festivals, fairs, and carnivals
and if the events last less than six daysdeleted text begin.deleted text endnew text begin; or
new text end

new text begin (2) the property is awarded as prizes in connection with lawful gambling as defined in
section 349.12.
new text end

new text begin (b)new text end This exemption does not apply to property awarded as prizes in connection with
deleted text begin lawful gambling as defined in section 349.12 ordeleted text end the State Lottery.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after June
30, 2018.
new text end

Sec. 11.

Minnesota Statutes 2016, section 297A.70, subdivision 7, is amended to read:


Subd. 7.

Hospitals, outpatient surgical centers, and critical access dental providers.

(a) Sales, except for those listed in paragraph (d), to a hospital are exempt, if the items
purchased are used in providing hospital services. For purposes of this subdivision, "hospital"
means a hospital organized and operated for charitable purposes within the meaning of
section 501(c)(3) of the Internal Revenue Code, and licensed under chapter 144 or by any
other jurisdiction, and "hospital services" are services authorized or required to be performed
by a "hospital" under chapter 144.

(b) Sales, except for those listed in paragraph (d), to an outpatient surgical center are
exempt, if the items purchased are used in providing outpatient surgical services. For purposes
of this subdivision, "outpatient surgical center" means an outpatient surgical center organized
and operated for charitable purposes within the meaning of section 501(c)(3) of the Internal
Revenue Code, and licensed under chapter 144 or by any other jurisdiction. For the purposes
of this subdivision, "outpatient surgical services" means: (1) services authorized or required
to be performed by an outpatient surgical center under chapter 144; and (2) urgent care. For
purposes of this subdivision, "urgent care" means health services furnished to a person
whose medical condition is sufficiently acute to require treatment unavailable through, or
inappropriate to be provided by, a clinic or physician's office, but not so acute as to require
treatment in a hospital emergency room.

(c) Sales, except for those listed in paragraph (d), to a critical access dental provider are
exempt, if the items purchased are used in providing critical access dental care services.
For the purposes of this subdivision, "critical access dental provider" means a dentist or
dental clinic that qualifies under section 256B.76, subdivision 4, paragraph (b), and, in the
previous calendar year, had no more than 15 percent of its patients covered by private dental
insurance.

(d) This exemption does not apply to the following products and services:

(1) purchases made by a clinic, physician's office, or any other medical facility not
operating as a hospital, outpatient surgical center, new text beginqualifying medical facility, new text endor critical
access dental provider, even though the clinic, office, or facility may be owned and operated
by a hospital, outpatient surgical center, new text beginqualifying medical facility, new text endor critical access dental
provider;

(2) sales under section 297A.61, subdivision 3, paragraph (g), clause (2), and prepared
food, candy, and soft drinks;

(3) building and construction materials used in constructing buildings or facilities that
will not be used principally by the hospital, outpatient surgical center,new text begin qualifying medical
facility,
new text end or critical access dental provider;

(4) 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 hospital, outpatient surgical center, new text beginqualifying medical facility, new text endor critical access
dental provider; or

(5) the leasing of a motor vehicle as defined in section 297B.01, subdivision 11.

(e) 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.

(f) An entity that contains both a hospital and a nonprofit unit may claim this exemption
on purchases made for both the hospital and nonprofit unit provided that:

(1) the nonprofit unit would have qualified for exemption under subdivision 4; and

(2) the items purchased would have qualified for the exemption.

new text begin (g) Sales, except for those listed in paragraph (d), to a qualifying medical facility are
exempt, if the items are purchased or used in providing medical services. For purposes of
this subdivision, "qualifying medical facility" means a medical facility as defined in section
469.1812, subdivision 2a, that has been granted an abatement of the state general tax under
section 469.1817.
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, 2018.
new text end

Sec. 12.

Minnesota Statutes 2017 Supplement, section 297A.70, subdivision 20, is amended
to read:


Subd. 20.

Ice arenas and rinks.

Sales to organizations that exist primarily for the purpose
of operating ice arenas or rinks that are new text begin(1) new text endpart of new text begineither new text endthe Duluth Heritage Sports Centernew text begin
or the David M. Thaler Sports Center;
new text end and new text begin(2) new text endare used for youth and high school programsnew text begin,new text end
are exempt if the organization is a private, nonprofit corporation exempt from federal income
taxation under section 501(c)(3) of the Internal Revenue Code.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after June
30, 2018.
new text end

Sec. 13.

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 Lawful gambling equipment. new text end

new text begin The lease or purchase of gambling equipment,
as defined in section 349.12, subdivision 18, by an organization licensed to conduct lawful
gambling under chapter 349 is 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, 2018.
new text end

Sec. 14.

Minnesota Statutes 2016, section 297A.70, is amended by adding a subdivision
to read:


new text begin Subd. 22. new text end

new text begin Nonprofit conservation clubs. new text end

new text begin Sales to nonprofit conservation clubs are
exempt. For purposes of this subdivision, a "nonprofit conservation club" means an
organization exempt under section 501(c)(3) of the Internal Revenue Code that provides
instruction, training, and facilities for shooting handguns or rifles.
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, 2018.
new text end

Sec. 15.

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 Public safety facilities. new text end

new text begin Materials and supplies used in and equipment
incorporated into construction or remodeling of the following public safety facilities are
exempt:
new text end

new text begin (1) the construction of a new fire station, which includes firefighting and public safety
training facilities, in the city of Inver Grove Heights;
new text end

new text begin (2) the construction of a new fire station or the remodeling and expansion of an existing
fire station in the city of Virginia;
new text end

new text begin (3) the construction of a new fire station on the campus of the Minnetonka City Hall;
and
new text end

new text begin (4) the remodeling and expansion of an existing police and fire station in Minnetonka
to accommodate its use as a police station.
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 and before January 1, 2021.
new text end

Sec. 16.

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 Second Harvest Heartland. new text end

new text begin Materials and supplies used or consumed in and
equipment incorporated into construction and rehabilitation of the Second Harvest Heartland
regional charitable food warehouse, distribution, and office facility in Hennepin County 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 for sales and purchases made after January
1, 2018, and before January 1, 2022.
new text end

Sec. 17.

Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision
to read:


new text begin Subd. 53. new text end

new text begin Nonprofit snowmobile clubs. new text end

new text begin Building materials and supplies used by a
nonprofit snowmobile club to construct, reconstruct, or maintain or improve state or
grant-in-aid snowmobile trails are exempt. A nonprofit snowmobile club is eligible for the
exemption under this subdivision if it received, in the current year or in the previous
three-year period, a state grant-in-aid grant administered by the Department of Natural
Resources by applying for the grant with a local unit of government sponsor.
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, 2018.
new text end

Sec. 18.

Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision
to read:


new text begin Subd. 54. new text end

new text begin Medical facility in underserved area. new text end

new text begin Materials and supplies used or
consumed in, and equipment incorporated into, the construction or improvement of real
property that has been granted an abatement of the state general tax under section 469.1817
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, 2018.
new text end

Sec. 19.

Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision
to read:


new text begin Subd. 55. 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 affected by,
and capital equipment to replace equipment destroyed in, the fire on March 11, 2018, in the
city of Mazeppa are exempt. The tax must be imposed and collected as if the rate under
section 297A.62, subdivision 1, applied and then refunded in the manner provided in section
297A.75. For purposes of this subdivision, "capital equipment" includes durable equipment
used in a restaurant for food storage, preparation, and serving.
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 March 11, 2018, and before January 1, 2021.
new text end

Sec. 20.

Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision
to read:


new text begin Subd. 56. new text end

new text begin Former Duluth Central High School. new text end

new text begin Materials and supplies used in and
equipment incorporated into a private redevelopment project on the site of the former Duluth
Central High School are exempt, provided the resulting development is subject to property
taxes. The tax must be imposed and collected as if the rate under section 297A.62 applied
and then refunded in the manner provided in section 297A.75. The commissioner must not
pay more than $5,000,000 in refunds for purchases exempt under this section. Refunds must
be processed and issued in the order that complete and accurate applications are received
by the commissioner.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after June 30, 2018, and before January 1, 2020.
new text end

Sec. 21.

Minnesota Statutes 2017 Supplement, section 297A.75, subdivision 1, is amended
to read:


Subdivision 1.

Tax collected.

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

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

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

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

(4) building materials used in a residence for 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

deleted text begin (i) an aerospace defense manufacturing facility exempt under Minnesota Statutes 2014,
section 297A.71, subdivision 42;
deleted text end

deleted text begin (ii)deleted text end a biopharmaceutical manufacturing facility exempt under section 297A.71, subdivision
45
;

deleted text begin (iii) a research and development facility exempt under Minnesota Statutes 2014, section
297A.71, subdivision 46; and
deleted text end

deleted text begin (iv) an industrial measurement manufacturing and controls facility exempt under
Minnesota Statutes 2014, section 297A.71, subdivision 47;
deleted text end

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

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

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

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

(16) building materials, equipment, and supplies for constructing or replacing real
property exempt under section 297A.71, deleted text beginsubdivisiondeleted text endnew text begin subdivisionsnew text end 49new text begin and 55new text end; deleted text beginand
deleted text end

(17) building materials, equipment, and supplies for constructing or replacing real
property exempt under section 297A.71, subdivision 50, paragraph (b)deleted text begin.deleted text endnew text begin;
new text end

new text begin (18) materials, equipment, and supplies for a regional charitable food warehouse,
distribution, and office facility exempt under section 297A.71, subdivision 52; and
new text end

new text begin (19) materials and supplies used in and equipment incorporated into a private
redevelopment project exempt under section 297A.71, subdivision 56.
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, 2018.
new text end

Sec. 22.

Minnesota Statutes 2017 Supplement, section 297A.75, subdivision 2, is amended
to read:


Subd. 2.

Refund; eligible persons.

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

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

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

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

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

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

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

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

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

(9) for subdivision 1, deleted text beginclause (16),deleted text endnew text begin clauses (16) to (19),new text end the applicant must be the owner
or developer of the building or projectdeleted text begin; anddeleted text endnew text begin.
new text end

deleted text begin (10) for subdivision 1, clause (17), the applicant must be the owner or developer of the
building or project.
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, 2018.
new text end

Sec. 23.

Minnesota Statutes 2017 Supplement, section 297A.75, subdivision 3, is amended
to read:


Subd. 3.

Application.

(a) The application must include sufficient information to permit
the commissioner to verify the tax paid. If the tax was paid by a contractor, subcontractor,
or builder, under subdivision 1, clauses (3) to (13) or (15) to deleted text begin(17)deleted text endnew text begin (19)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, 2018.
new text end

Sec. 24.

Minnesota Statutes 2017 Supplement, 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. The commissioner shall prescribe the content, format, and manner of returns
or other documents pursuant to section 270C.30. 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) deleted text beginThe sales tax imposed by chapter 297A on the sale of pull-tabs and tipboards by the
distributor is imposed on the retail sales price.
deleted text end 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 July 1, 2018.
new text end

Sec. 25.

Laws 2017, First Special Session chapter 1, article 3, section 32, the effective
date, is amended to read:


EFFECTIVE DATE.

Paragraph (a) is effective retroactively for sales and purchases
made after September 30, 2016, and before January 1, deleted text begin2019deleted text endnew text begin 2022new text end. Paragraph (b) is effective
for sales and purchases made after September 30, 2016, and before July 1, 2017.

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 beginMUNICIPALLY OWNED WATER TREATMENT FACILITY; CITY OF
ELKO NEW MARKET.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption. new text end

new text begin Materials and supplies used in and equipment incorporated
into a water treatment facility owned and operated by the city of Elko New Market are
exempt from taxation under Minnesota Statutes, chapter 297A, regardless of whether
purchased by the city or a contractor, subcontractor, or builder. All purchases for this facility
must be made after June 1, 2014, and before June 1, 2016.
new text end

new text begin Subd. 2. new text end

new text begin Refund. new text end

new text begin The tax on purchases exempt under subdivision 1 must be imposed
and collected as if the rate under Minnesota Statutes, section 297A.62, applied, and then
refunded in the manner provided in Minnesota Statutes, section 297A.75. The applicant
must be the city of Elko New Market. If sales tax has been paid on sales and purchases
exempt under this section prior to the effective date of this section, the city of Elko New
Market may apply directly to the commissioner of revenue for a refund. The application
must be in the form and manner required by the commissioner and provide sufficient
information so the commissioner can verify the amount paid. If the tax was paid by a
contractor, subcontractor, or builder, 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. Interest must be paid on the refund at the rate in Minnesota Statutes, section
270C.405, from 90 days after the refund claim is filed with the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin Appropriation. new text end

new text begin The amount required to make the refunds under this section
is appropriated to the commissioner of revenue.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for purchases made after
June 1, 2014, and before June 1, 2016.
new text end

Sec. 27. new text beginSALES TAX RATE ADJUSTMENT IF TAX IS IMPOSED ON REMOTE
SELLERS.
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 subdivision, the following terms
have the meanings given.
new text end

new text begin (b) "Day the state begins enforcing a duty to collect and remit sales tax on retailers
without a physical presence in this state, and marketplace providers under Minnesota Statutes,
section 297A.66, subdivision 4," means the earliest of:
new text end

new text begin (i) the first day of a calendar quarter at least 60 days after a decision is made 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 (ii) the first day of a calendar quarter at least 60 days after a federal 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.
new text end

new text begin Subd. 2. new text end

new text begin Rate adjustment. new text end

new text begin (a) The commissioner of revenue must make an adjustment
to the sales tax rates in Minnesota Statutes, section 297A.62, subdivisions 1 and 1a, effective
for the first day of the calendar quarter beginning 15 months after the day the state begins
enforcing a duty to collect and remit sales tax on retailers without a physical presence in
this state, and marketplace providers under Minnesota Statutes, section 297A.66, subdivision
4. The adjustment must be equal to the reduction necessary to make the total collections
under the sales tax revenue neutral as calculated in paragraph (b).
new text end

new text begin (b) The adjustment factor for each tax rate must be equal to the ratio by which:
new text end

new text begin (1) the revenues collected under Minnesota Statutes, chapter 297A, in the 12-month
period immediately preceding the day the state begins enforcing a duty to collect and remit
sales tax on retailers without a physical presence in this state, and marketplace providers
under Minnesota Statutes, section 297A.66, subdivision 4, multiplied by the projected
growth rate in sales tax revenues between the same 12-month period and the time period in
clause (2), calculated from data used in preparing the February 2018 forecast; compared to
new text end

new text begin (2) the revenues collected under Minnesota Statutes, chapter 297A, in the 12-month
period beginning on the day the state begins enforcing a duty to collect and remit sales tax
on retailers without a physical presence in this state, and marketplace providers under
Minnesota Statutes, section 297A.66, subdivision 4. The ratio cannot be less than one.
new text end

new text begin (c) The adjusted rates must be rounded to the nearest one thousandth of one percent and
are effective for the first calendar quarter at least 15 months after the day the state begins
enforcing a duty to collect and remit sales tax on retailers without a physical presence in
this state, and marketplace providers under Minnesota Statutes, section 297A.66, subdivision
4. The commissioner of revenue must publish the new tax rates in the State Register at least
30 days prior to the rate change going into effect.
new text end

new text begin (d) After the commissioner of revenue publishes the new tax rates in the State Register,
the revisor of statutes must update the tax rates in Minnesota Statutes, section 297A.62,
subdivisions 1 and 1a, in the next edition of Minnesota Statutes.
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 4

PROPERTY TAXES

Section 1.

Minnesota Statutes 2016, section 272.02, subdivision 49, is amended to read:


Subd. 49.

Agricultural historical society property.

Property is exempt from taxation
if it is owned by a nonprofit charitable or educational organization that qualifies for
exemption under section 501(c)(3) of the Internal Revenue Code and meets the following
criteria:

(1) the property is primarily used for storing and exhibiting tools, equipment, and artifacts
useful in providing an understanding of local or regional agricultural history. Primary use
is determined each year based on the number of days the property is used solely for storage
and exhibition purposes;

(2) the property is limited to a maximum of deleted text begin20deleted text endnew text begin 40new text end acres per owner per county, but
includes the land and any taxable structures, fixtures, and equipment on the land;

(3) the property is not used for a revenue-producing activity for more than ten days in
each calendar year; and

(4) the property is not used for residential purposes on either a temporary or permanent
basis.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessments beginning in 2018.
new text end

Sec. 2.

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


new text begin Subd. 102. new text end

new text begin Licensed child care facility. new text end

new text begin Property used as a licensed child care facility
that accepts families participating in the child care assistance program under chapter 119B,
and that is owned and operated as part of their mission by a church organization that qualifies
for tax exemption under section 272.02, subdivision 6, is exempt. For the purposes of this
subdivision, "licensed child care facility" means a child care center licensed under Minnesota
Rules, chapter 9503, or a facility used to provide licensed family day care or group family
day care as defined under Minnesota Rules, chapter 9502.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2018,
for taxes payable in 2019.
new text end

Sec. 3.

Minnesota Statutes 2016, section 273.124, subdivision 8, is amended to read:


Subd. 8.

Homestead owned by or leased to family farm corporation, joint farm
venture, limited liability company, or partnership.

(a) Each family farm corporation;
each joint family farm venture; and each limited liability company or partnership which
operates a family farm; is entitled to class 1b under section 273.13, subdivision 22, paragraph
(b), or class 2a assessment for one homestead occupied by a shareholder, member, or partner
thereof who is residing on the land, and actively engaged in farming of the land owned by
the family farm corporation, joint family farm venture, limited liability company, or
partnership. Homestead treatment applies even ifnew text begin:
new text end

new text begin (1)new text end legal title to the property is in the name of the family farm corporation, joint family
farm venture, limited liability company, or partnership, and not in the name of the person
residing on itdeleted text begin.deleted text endnew text begin; or
new text end

new text begin (2) the family farm is operated by a family farm corporation, joint family farm venture,
partnership, or limited liability company other than the family farm corporation, joint family
farm venture, partnership, or limited liability company that owns the land, provided that:
new text end

new text begin (i) the shareholder, member, or partner of the family farm corporation, joint family farm
venture, partnership, or limited liability company that owns the land and that is residing on
and actively engaged in farming the land is a shareholder, member, or partner of the family
farm corporation, joint family farm venture, partnership, or limited liability company that
is operating the farm;
new text end

new text begin (ii) each shareholder, member, or partner of the family farm corporation, joint family
farm venture, partnership, or limited liability company that is operating the farm is also a
shareholder, member, or partner of the family farm corporation, joint family farm venture,
partnership, or limited liability company that owns the land; and
new text end

new text begin (iii) a majority of the shareholders, members, or partners of each family farm corporation,
joint family farm venture, partnership, or limited liability company are persons or spouses
of persons who are related to each other within the second degree of kindred according to
the rules of civil law.
new text end

"Family farm corporation," "family farm," and "partnership operating a family farm"
have the meanings given in section 500.24, except that the number of allowable shareholders,
members, or partners under this subdivision shall not exceed 12. "Limited liability company"
has the meaning contained in sections 322B.03, subdivision 28, or 322C.0102, subdivision
12
, and 500.24, subdivision 2, paragraphs (l) and (m). "Joint family farm venture" means
a cooperative agreement among two or more farm enterprises authorized to operate a family
farm under section 500.24.

(b) In addition to property specified in paragraph (a), any other residences owned by
family farm corporations, joint family farm ventures, limited liability companies, or
partnerships described in paragraph (a) which are located on agricultural land and occupied
as homesteads by its shareholders, members, or partners who are actively engaged in farming
on behalf of that corporation, joint farm venture, limited liability company, or partnership
must also be assessed as class 2a property or as class 1b property under section 273.13.

(c) Agricultural property that is owned by a member, partner, or shareholder of a family
farm corporation or joint family farm venture, limited liability company operating a family
farm, or by a partnership operating a family farm and leased to the family farm corporation,
limited liability company, partnership, or joint farm venture, as defined in paragraph (a), is
eligible for classification as class 1b or class 2a under section 273.13, if the owner is actually
residing on the property, and is actually engaged in farming the land on behalf of that
corporation, joint farm venture, limited liability company, or partnership. This paragraph
applies without regard to any legal possession rights of the family farm corporation, joint
family farm venture, limited liability company, or partnership under the lease.

(d) Nonhomestead agricultural property that is owned by a family farm corporation,
joint farm venture, limited liability company, or partnership; and located not farther than
four townships or cities, or combination thereof, from agricultural land that is owned, and
used for the purposes of a homestead by an individual who is a shareholder, member, or
partner of the corporation, venture, company, or partnership; is entitled to receive the first
tier homestead classification rate on any remaining market value in the first homestead class
tier that is in excess of the market value of the shareholder's, member's, or partner's class 2
agricultural homestead property, if the owner, or someone acting on the owner's behalf
notifies the county assessor by July 1 that the property may be eligible under this paragraph
for the current assessment year, for taxes payable in the following year. As used in this
paragraph, "agricultural property" means property classified as 2a under section 273.13,
along with any contiguous property classified as 2b under section 273.13, if the contiguous
2a and 2b properties are under the same ownership.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessments beginning in 2018.
new text end

Sec. 4.

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 beginAgricultural 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 endnew 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.

new text begin Homestead treatment applies under this paragraph even if:
new text end

new text begin (i) the shareholder, member, or partner of that entity is actively farming the agricultural
property on the shareholder's, member's, or partner's own behalf; or
new text end

new text begin (ii) the family farm is operated by a family farm corporation, joint family farm venture,
partnership, or limited liability company other than the family farm corporation, joint family
farm venture, partnership, or limited liability company that owns the land, provided that:
new text end

new text begin (A) the shareholder, member, or partner of the family farm corporation, joint family
farm venture, partnership, or limited liability company that owns the land that is actively
farming the land is a shareholder, member, or partner of the family farm corporation, joint
family farm venture, partnership, or limited liability company that is operating the farm;
new text end

new text begin (B) each shareholder, member, or partner of the family farm corporation, joint family
farm venture, partnership, or limited liability company that is operating the farm is also a
shareholder, member, or partner of the family farm corporation, joint family farm venture,
partnership, or limited liability company that owns the land; and
new text end

new text begin (C) a majority of the shareholders, members, or partners of each family farm corporation,
joint family farm venture, partnership, or limited liability company are persons or spouses
of persons who are related to each other within the second degree of kindred according to
the rules of civil law.
new text end

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

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

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

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

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

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

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

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

The owners and any persons who are actively farming the property must include the
appropriate Social Security numbers, 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
2019.
new text end

Sec. 5.

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 beginordeleted 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 endnew text begin (3)new text end "grantor" deleted text beginis defined asdeleted text endnew 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 by December 15 for taxes payable in the following
year 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
2019.
new text end

Sec. 6.

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


new text begin Subd. 23. new text end

new text begin Fractional homesteads. new text end

new text begin In the case of property that is classified as part
homestead and part nonhomestead solely because not all the owners occupy or farm the
property, not all the owners have qualifying relatives occupying or farming the property,
or not all the spouses of owners occupy the property, the portions of property classified as
part homestead and part nonhomestead must correspond to the ownership percentages that
each owner has in the property, as determined by the land records in the county recorder's
office or registrar of titles. If the ownership percentages of each owner cannot be determined
by reference to the land records, the portions of property classified as part homestead and
part nonhomestead must correspond to the ownership percentages each owner would have
if they each owned an equal share of the property.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessments beginning in 2018.
new text end

Sec. 7.

Minnesota Statutes 2017 Supplement, 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 is classified as class 1a or class 2a property, whichever is
appropriate.

(c) Class 1c property is commercial use real and personal property that abuts public
water as defined in section 103G.005, subdivision 15, or abuts a state trail administered by
the Department of Natural Resources, 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 begineven ifdeleted text endnew 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 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
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 2019.
new text end

Sec. 8.

Minnesota Statutes 2017 Supplement, section 273.13, subdivision 23, is amended
to read:


Subd. 23.

Class 2.

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

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

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

(c) Class 2b rural vacant land consists of parcels of property, or portions thereof, that
are unplatted real estate, rural in character and not used for agricultural purposes, including
land used for growing trees for timber, lumber, and wood and wood products, that is not
improved with a structure. The presence of a minor, ancillary nonresidential structure as
defined by the commissioner of revenue does not disqualify the property from classification
under this paragraph. Any parcel of 20 acres or more improved with a structure that is not
a minor, ancillary nonresidential structure must be split-classified, and ten acres must be
assigned to the split parcel containing the structure. 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 new text begin(i) new text endenrollment in a local
conservation program or the Reinvest in Minnesota program under sections 103F.501 to
103F.535 or the federal Conservation Reserve Program as contained in Public Law 99-198
or a similar state or federal conservation program if the property was classified as agricultural
deleted text begin (i)deleted text endnew text begin (A)new text end under this subdivision for taxes payable in 2003 because of its enrollment in a
qualifying program and the land remains enrolled or deleted text begin(ii)deleted text endnew text begin (B)new text end in the year prior to its enrollmentnew text begin,
or (ii) use of land, not to exceed the greater of three acres or ten percent of the total land
area, to provide environmental benefits such as buffer strips, old growth forest restoration
or retention, or retention ponds to prevent soil erosion
new text end. For purposes of this section, a "local
conservation program" means a program administered by a town, statutory or home rule
charter city, or county, including a watershed district, water management organization, or
soil and water conservation district, in which landowners voluntarily enroll land and receive
incentive payments equal to at least $50 per acre in exchange for use or other restrictions
placed on the land. In order for property to qualify under the local conservation program
provision, a taxpayer must apply to the assessor by February 1 of the assessment year and
must submit the information required by the assessor, including but not limited to a copy
of the program requirements, the specific agreement between the land owner and the local
agency, if applicable, and a map of the conservation area. Agricultural classification shall
not be based upon the market value of any residential structures on the parcel or contiguous
parcels under the same ownership.

new text begin "Agricultural purposes" also includes land consisting of a holding pond designed to
prevent runoff onto a divided four-lane expressway that is located at least 150 feet above
the expressway, as certified by the local soil and water conservation district in accordance
with USDA Field Office Technical Guide conservation practice standards, provided that
the land is located outside the metropolitan area as defined in section 473.121, and was
classified as agricultural in assessment year 2017.
new text end

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

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

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

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

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

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

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

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

(1) wholesale and retail sales;

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

(3) warehousing or storage of processed goods; and

(4) office facilities for the support of the activities enumerated in clauses (1), (2), and
(3),

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

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

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

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

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

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

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

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

(1) a legal description of the property;

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2018 and thereafter.
new text end

Sec. 9.

Minnesota Statutes 2017 Supplement, section 273.13, subdivision 25, is amended
to read:


Subd. 25.

Class 4.

(a) Class 4a is residential real estate containing four or more units
and used or held for use by the owner or by the tenants or lessees of the owner as a residence
for rental periods of 30 days or more, excluding property qualifying for class 4d. Class 4a
also includes hospitals licensed under sections 144.50 to 144.56, other than hospitals exempt
under section 272.02, and contiguous property used for hospital purposes, without regard
to whether the property has been platted or subdivided. The market value of class 4a property
has a classification rate of 1.25 percent.

(b) Class 4b includes:

(1) residential real estate containing less than four units 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 includes:

(1) nonhomestead residential real estate containing one unit, other than seasonal
residential recreational property;

(2) a single family dwelling, garage, and surrounding one acre of property on a
nonhomestead farm classified under subdivision 23, paragraph (b); and

(3) a condominium-type storage unit having an individual property identification number
that is not used for a commercial purpose.

Class 4bb property has the same classification rates as class 1a property under subdivision
22.

Property that has been classified as seasonal residential recreational property at any time
during which it has been owned by the current owner or spouse of the current owner does
not qualify for class 4bb.

(d) Class 4c property includes:

(1) except as provided in subdivision 22, paragraph (c), real and personal property
devoted to commercial temporary and seasonal residential occupancy for recreation purposes,
for not more than 250 days in the year preceding the year of assessment. For purposes of
this clause, property is devoted to a commercial purpose on a specific day if any portion of
the property is used for residential occupancy, and a fee is charged for residential occupancy.
Class 4c property under this clause must contain three or more rental units. A "rental unit"
is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site
equipped with water and electrical hookups for recreational vehicles. A camping pad offered
for rent by a property that otherwise qualifies for class 4c under this clause is also class 4c
under this clause regardless of the term of the rental agreement, as long as the use of the
camping pad does not exceed 250 days. In order for a property to be classified under this
clause, eithernew text begin:new text end (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 activitiesdeleted text begin, ordeleted text endnew text begin;new text end (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 Resourcesnew text begin; or (iii) the facility
must consist of no more than five sleeping rooms and must provide an area or areas to
prepare meals and to conduct indoor craft or hobby activities
new text end. For purposes of item (i)(A),
a paid booking of five or more nights shall be counted as two bookings. Class 4c property
also includes commercial use real property used exclusively for recreational purposes in
conjunction with other class 4c property classified under this clause and devoted to temporary
and seasonal residential occupancy for recreational purposes, up to a total of two acres,
provided the property is not devoted to commercial recreational use for more than 250 days
in the year preceding the year of assessment and is located within two miles of the class 4c
property with which it is used. In order for a property to qualify for classification under this
clause, the owner must submit a declaration to the assessor designating the cabins or units
occupied for 250 days or less in the year preceding the year of assessment by January 15
of the assessment year. Those cabins or units and a proportionate share of the land on which
they are located must be designated class 4c under this clause as otherwise provided. The
remainder of the cabins or units and a proportionate share of the land on which they are
located will be designated as class 3a. The owner of property desiring designation as class
4c property under this clause must provide guest registers or other records demonstrating
that the units for which class 4c designation is sought were not occupied for more than 250
days in the year preceding the assessment if so requested. The portion of a property operated
as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5)
other nonresidential facility operated on a commercial basis not directly related to temporary
and seasonal residential occupancy for recreation purposes does not qualify for class 4c.
For the purposes of this paragraph, "recreational activities" means renting ice fishing houses,
boats and motors, snowmobiles, downhill or cross-country ski equipment; providing marina
services, launch services, or guide services; or selling bait and fishing tackle;

(2) qualified property used as a golf course if:

(i) it is open to the public on a daily fee basis. It may charge membership fees or dues,
but a membership fee may not be required in order to use the property for golfing, and its
green fees for golfing must be comparable to green fees typically charged by municipal
courses; and

(ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d).

A structure used as a clubhouse, restaurant, or place of refreshment in conjunction with
the golf course is classified as class 3a property;

(3) real property up to a maximum of three acres of land owned and used by a nonprofit
community service oriented organization and not used for residential purposes on either a
temporary or permanent basis, provided that:

(i) the property is not used for a revenue-producing activity for more than six days in
the calendar year preceding the year of assessment; or

(ii) the organization makes annual charitable contributions and donations at least equal
to the property's previous year's property taxes and the property is allowed to be used for
public and community meetings or events for no charge, as appropriate to the size of the
facility.

For purposes of this clause:

(A) "charitable contributions and donations" has the same meaning as lawful gambling
purposes under section 349.12, subdivision 25, excluding those purposes relating to the
payment of taxes, assessments, fees, auditing costs, and utility payments;

(B) "property taxes" excludes the state general tax;

(C) a "nonprofit community service oriented organization" means any corporation,
society, association, foundation, or institution organized and operated exclusively for
charitable, religious, fraternal, civic, or educational purposes, and which is exempt from
federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal
Revenue Code; and

(D) "revenue-producing activities" shall include but not be limited to property or that
portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt
liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling
alley, a retail store, gambling conducted by organizations licensed under chapter 349, an
insurance business, or office or other space leased or rented to a lessee who conducts a
for-profit enterprise on the premises.

Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The
use of the property for social events open exclusively to members and their guests for periods
of less than 24 hours, when an admission is not charged nor any revenues are received by
the organization shall not be considered a revenue-producing activity.

The organization shall maintain records of its charitable contributions and donations
and of public meetings and events held on the property and make them available upon
request any time to the assessor to ensure eligibility. An organization meeting the requirement
under item (ii) must file an application by May 1 with the assessor for eligibility for the
current year's assessment. The commissioner shall prescribe a uniform application form
and instructions;

(4) postsecondary student housing of not more than one acre of land that is owned by a
nonprofit corporation organized under chapter 317A and is used exclusively by a student
cooperative, sorority, or fraternity for on-campus housing or housing located within two
miles of the border of a college campus;

(5)(i) manufactured home parks as defined in section 327.14, subdivision 3, excluding
manufactured home parks described in items (ii) and (iii), (ii) manufactured home parks as
defined in section 327.14, subdivision 3, that are described in section 273.124, subdivision
3a
, and (iii) class I manufactured home parks as defined in section 327C.01, subdivision
13
;

(6) real property that is actively and exclusively devoted to indoor fitness, health, social,
recreational, and related uses, is owned and operated by a not-for-profit corporation, and is
located within the metropolitan area as defined in section 473.121, subdivision 2;

(7) a leased or privately owned noncommercial aircraft storage hangar not exempt under
section 272.01, subdivision 2, and the land on which it is located, provided that:

(i) the land is on an airport owned or operated by a city, town, county, Metropolitan
Airports Commission, or group thereof; and

(ii) the land lease, or any ordinance or signed agreement restricting the use of the leased
premise, prohibits commercial activity performed at the hangar.

If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must be
filed by the new owner with the assessor of the county where the property is located within
60 days of the sale;

(8) a privately owned noncommercial aircraft storage hangar not exempt under section
272.01, subdivision 2, and the land on which it is located, provided that:

(i) the land abuts a public airport; and

(ii) the owner of the aircraft storage hangar provides the assessor with a signed agreement
restricting the use of the premises, prohibiting commercial use or activity performed at the
hangar; and

(9) residential real estate, a portion of which is used by the owner for homestead purposes,
and that is also a place of lodging, if all of the following criteria are met:

(i) rooms are provided for rent to transient guests that generally stay for periods of 14
or fewer days;

(ii) meals are provided to persons who rent rooms, the cost of which is incorporated in
the basic room rate;

(iii) meals are not provided to the general public except for special events on fewer than
seven days in the calendar year preceding the year of the assessment; and

(iv) the owner is the operator of the property.

The market value subject to the 4c classification under this clause is limited to five rental
units. Any rental units on the property in excess of five, must be valued and assessed as
class 3a. The portion of the property used for purposes of a homestead by the owner must
be classified as class 1a property under subdivision 22;

(10) real property up to a maximum of three acres and operated as a restaurant as defined
under section 157.15, subdivision 12, provided it: (i) is located on a lake as defined under
section 103G.005, subdivision 15, paragraph (a), clause (3); and (ii) is either devoted to
commercial purposes for not more than 250 consecutive days, or receives at least 60 percent
of its annual gross receipts from business conducted during four consecutive months. Gross
receipts from the sale of alcoholic beverages must be included in determining the property's
qualification under item (ii). The property's primary business must be as a restaurant and
not as a bar. Gross receipts from gift shop sales located on the premises must be excluded.
Owners of real property desiring 4c classification under this clause must submit an annual
declaration to the assessor by February 1 of the current assessment year, based on the
property's relevant information for the preceding assessment year;

(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used as
a marina, as defined in section 86A.20, subdivision 5, which is made accessible to the public
and devoted to recreational use for marina services. The marina owner must annually provide
evidence to the assessor that it provides services, including lake or river access to the public
by means of an access ramp or other facility that is either located on the property of the
marina or at a publicly owned site that abuts the property of the marina. No more than 800
feet of lakeshore may be included in this classification. Buildings used in conjunction with
a marina for marina services, including but not limited to buildings used to provide food
and beverage services, fuel, boat repairs, or the sale of bait or fishing tackle, are classified
as class 3a property; and

(12) real and personal property devoted to noncommercial temporary and seasonal
residential occupancy for recreation purposes.

Class 4c property has a classification rate of 1.5 percent of market value, except that (i)
each parcel of noncommercial seasonal residential recreational property under clause (12)
has the same classification rates as class 4bb property, (ii) manufactured home parks assessed
under clause (5), item (i), have the same classification rate as class 4b property, the market
value of manufactured home parks assessed under clause (5), item (ii), have a classification
rate of 0.75 percent if more than 50 percent of the lots in the park are occupied by
shareholders in the cooperative corporation or association and a classification rate of one
percent if 50 percent or less of the lots are so occupied, and class I manufactured home
parks as defined in section 327C.01, subdivision 13, have a classification rate of 1.0 percent,
(iii) commercial-use seasonal residential recreational property and marina recreational land
as described in clause (11), has a classification rate of one percent for the first $500,000 of
market value, and 1.25 percent for the remaining market value, (iv) the market value of
property described in clause (4) has a classification rate of one percent, (v) the market value
of property described in clauses (2), (6), and (10) has a classification rate of 1.25 percent,
(vi) that portion of the market value of property in clause (9) qualifying for class 4c property
has a classification rate of 1.25 percent, and (vii) property qualifying for classification under
clause (3) that is owned or operated by a congressionally chartered veterans organization
has a classification rate of one percent. The commissioner of veterans affairs must provide
a list of congressionally chartered veterans organizations to the commissioner of revenue
by June 30, 2017, and by January 1, 2018, and each year thereafter.

(e) Class 4d property 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 payable in 2019.
new text end

Sec. 10.

Minnesota Statutes 2017 Supplement, 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 firstnew text begin, except as otherwise
provided in paragraph (n)
new text end. Qualification under this paragraph requires an application under
paragraph (h), and a spouse must notify the assessor if there is a change in the spouse's
marital status, ownership of the property, or use of the property as a permanent residence.

(d) If the spouse of a member of any branch or unit of the United States armed forces
who dies due to a service-connected cause while serving honorably in active service, as
indicated on United States Government Form DD1300 or DD2064, holds the legal or
beneficial title to a homestead and permanently resides there, the spouse is entitled to the
benefit described in paragraph (b), clause (2), for eight taxes payable years, or until such
time as the spouse remarries or sells, transfers, or otherwise disposes of the property,
whichever comes firstnew text begin, except as otherwise provided in paragraph (n)new text end.

(e) If a veteran meets the disability criteria of paragraph (a) but does not own property
classified as homestead in the state of Minnesota, then the homestead of the veteran's primary
family caregiver, if any, is eligible for the exclusion that the veteran would otherwise qualify
for under paragraph (b).

(f) In the case of an agricultural homestead, only the portion of the property consisting
of the house and garage and immediately surrounding one acre of land qualifies for the
valuation exclusion under this subdivision.

(g) A property qualifying for a valuation exclusion under this subdivision is not eligible
for the market value exclusion under subdivision 35, or classification under subdivision 22,
paragraph (b).

(h) To qualify for a valuation exclusion under this subdivision a property owner must
apply to the assessor by deleted text beginJuly 1deleted text endnew text begin December 15new text end of the first assessment year for which the
exclusion is sought. For an application received after deleted text beginJuly 1deleted text endnew text begin December 15new text end, the exclusion
shall become effective for the following assessment year. 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 begin When a property qualifying for a market value exclusion under this
subdivision is sold or transferred, the exclusion must be removed for taxes payable in the
following year, provided that the new owner may file a claim for an exclusion if eligible.
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) 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 propertynew text begin, except as otherwise provided in
paragraph (n),
new text end if:

(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;

(2) upon the death of the veteran, the spouse holds the legal or beneficial title to the
homestead and permanently resides there;

(3) the veteran met the honorable discharge requirements of paragraph (a); and

(4) the United States Department of Veterans Affairs certifies that:

(i) the veteran met the total (100 percent) and permanent disability requirement under
paragraph (b), clause (2); or

(ii) the spouse has been awarded dependency and indemnity compensation.

(l) The purpose of this provision of law providing a level of homestead property tax
relief for 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.

(m) By July 1, the county veterans service officer must certify the disability rating and
permanent address of each veteran receiving the benefit under paragraph (b) to the assessor.

new text begin (n) A spouse who received the benefit in paragraph (c), (d), or (k) but no longer holds
the legal or beneficial title to the property may continue to receive the exclusion for a
property other than the property for which the exclusion was initially granted until the spouse
remarries or sells, transfers, or otherwise disposes of the property, provided that:
new text end

new text begin (1) the spouse applies under paragraph (h) for the continuation of the exclusion allowed
under this paragraph;
new text end

new text begin (2) the spouse holds the legal or beneficial title to the property for which the continuation
of the exclusion is sought under this paragraph, and permanently resides there;
new text end

new text begin (3) the estimated market value of the property for which the exclusion is sought under
this paragraph is less than or equal to the estimated market value of the property that first
received the exclusion, based on the value of each property on the date of the sale of the
property that first received the exclusion; and
new text end

new text begin (4) the spouse has not previously received the benefit under this paragraph for a property
other than the property for which the exclusion is sought.
new text end

new text begin The exclusion for a spouse under this paragraph and paragraph (c), (d), or (k) may not
exceed a total of eight taxes payable years.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessments in 2018, for
taxes payable in 2019.
new text end

Sec. 11.

Minnesota Statutes 2016, section 273.13, subdivision 35, is amended to read:


Subd. 35.

Homestead market value exclusion.

(a) Prior to determining a property's
net tax capacity under this section, property classified as class 1a or 1b under subdivision
22, and the portion of property classified as class 2a under subdivision 23 consisting of the
house, garage, and surrounding one acre of land, shall be eligible for a market value exclusion
as determined under paragraph (b).

(b) For a homestead valued at $76,000 or less, the exclusion is 40 percent of market
value. For a homestead valued between $76,000 and $413,800, the exclusion is $30,400
minus nine percent of the valuation over $76,000. For a homestead valued at $413,800 or
more, there is no valuation exclusion. The valuation exclusion shall be rounded to the nearest
whole dollar, and may not be less than zero.

(c) Any valuation exclusions or adjustments under section 273.11 shall be applied prior
to determining the amount of the valuation exclusion under this subdivision.

(d) In the case of a property that is classified as part homestead and part nonhomestead,
(i) the exclusion shall apply only to the homestead portion of the property, but (ii) if a portion
of a property is classified as nonhomestead solely because not all the owners occupy the
property, not all the owners have qualifying relatives occupying the property, or solely
because not all the spouses of owners occupy the property, the exclusion amount shall be
initially computed as if that nonhomestead portion were also in the homestead class and
then prorated to the owner-occupant's percentage of ownershipnew text begin, as determined by section
273.124, subdivision 23
new text end. For the purpose of this section, when an owner-occupant's spouse
does not occupy the property, the percentage of ownership for the owner-occupant spouse
is one-half of the couple's ownership percentage.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2019 and thereafter.
new text end

Sec. 12.

Minnesota Statutes 2017 Supplement, section 273.1384, subdivision 2, is amended
to read:


Subd. 2.

Agricultural homestead market value credit.

Property classified as agricultural
homestead under section 273.13, subdivision 23, paragraph (a), is eligible for an agricultural
credit. The credit is computed using the property's agricultural credit market value, defined
for this purpose as the property's market value excluding the market value of the house,
garage, and immediately surrounding one acre of land. The credit is equal to 0.3 percent of
the first $115,000 of the property's agricultural credit market value plus 0.1 percent of the
property's agricultural credit market value in excess of $115,000, subject to a maximum
credit of $490. In the case of property that is classified as part homestead and part
nonhomestead solely because not all the owners occupy or farm the property, not all the
owners have qualifying relatives occupying or farming the property, or solely because not
all the spouses of owners occupy the property, the credit is computed on the amount of
agricultural credit market value corresponding to the new text beginowner-occupant's new text endpercentage of
deleted text begin homestead. the percentage of homestead is equal to 100 divided by the number of owners
of the property, or, in the case of a trust, the number of grantors of the trust that owns the
property
deleted text endnew text begin ownership, as determined by section 273.124, subdivision 23new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2019 and thereafter.
new text end

Sec. 13.

Minnesota Statutes 2016, section 275.025, is amended by adding a subdivision
to read:


new text begin Subd. 6. new text end

new text begin Natural gas pipeline. new text end

new text begin (a) Personal property that is part of an intrastate natural
gas transportation or distribution pipeline system is exempt from the state general levy if:
new text end

new text begin (1) construction of the pipeline system began after January 1, 2018; and
new text end

new text begin (2) the property is located in an area:
new text end

new text begin (i) outside the seven-county metropolitan area, as defined in section 473.121, subdivision
3; and
new text end

new text begin (ii) in which households or businesses lacked access to natural gas distribution systems
as of January 1, 2018.
new text end

new text begin (b) The exemption under this subdivision applies for a period not to exceed 12 years,
provided that once a property no longer qualifies, it may not subsequently qualify for the
exemption under this subdivision.
new text end

new text begin (c) The net tax capacity of property defined under this subdivision must be included in
the definition of commercial-industrial tax capacity for the purpose of determining the state
general levy tax rate under subdivision 4.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2020.
new text end

Sec. 14.

Minnesota Statutes 2016, section 275.025, is amended by adding a subdivision
to read:


new text begin Subd. 7. new text end

new text begin Medical facility in underserved area. new text end

new text begin The state general levy for any property
qualifying under section 469.1817 is abated. The net tax capacity of the property must be
included in the definition of commercial-industrial tax capacity for the purposes of
determining the state general levy tax rate under subdivision 4.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2019.
new text end

Sec. 15.

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 endWhen 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 (1) upon
the approval from the county auditor, or (2) when approval from the county auditor is given
based upon written confirmation from a licensed closing agent, title insurer, or title insurance
agent as specified in section 82.641. For purposes of this paragraph, "written confirmation"
means a written commitment or approval that the funding for the conveyance is held in an
escrow account available for disbursement upon delivery of a conveyance. The conveyance
issued by the commissioner of revenue shall not be effective as a conveyance until it is
recorded. 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 the
conveyance is requested from a licensed closing agent, title insurer, or title insurance agent
to settle and close on the conveyance. If a request for the conveyance is not made within
30 days of the date the conveyance is issued by the commissioner of revenue, the county
auditor shall return the conveyance to the commissioner. If the conveyance is delivered to
the licensed closing agent, title insurer, or title insurance agent and the closing does not
occur within ten days of the request, the licensed closing agent, title insurer, or title insurance
agent shall immediately return the conveyance to the county auditor and, upon receipt, the
county auditor shall return the conveyance to the commissioner of revenue. The commissioner
of revenue shall cancel and destroy all conveyances returned by the county auditor pursuant
to this subdivision. The licensed closing agent, title insurer, or title insurance agent must
promptly record the conveyance after the closing and must deliver an attested or certified
copy to the county auditor and to the grantee or grantees named on the conveyance.
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 469.171, subdivision 4, is amended to read:


Subd. 4.

Restriction.

The tax reductions provided by this section shall not apply to (1)
a facility the primary purpose of which is one of the following: deleted text beginretail food and beverage
services, automobile sales or service, or
deleted text end the provision of recreation or entertainment, or a
private or commercial golf course, country club, massage parlor, tennis club, skating facility
including roller skating, skateboard, and ice skating, racquet sports facility, including any
handball or racquetball court, hot tub facility, suntan facility, or racetrack; (2) property of
a public utility; (3) property used in the operation of a financial institution; (4) property
owned by a fraternal or veterans' organization; or (5) deleted text beginproperty of a business operating under
a franchise agreement that requires the business to be located in the state; except that tax
reductions may be provided to a retail food or beverage facility or an automobile sales or
service facility, or a business
deleted text endnew text begin a retail food or beverage facilitynew text end operating under a franchise
agreement that requires the business to be located in this state deleted text beginexcept for such a franchised
retail food or beverage facility
deleted text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
confirms the legislative intent of the amendment made by Laws 2012, chapter 294, article
2, section 25.
new text end

Sec. 17.

Minnesota Statutes 2016, section 469.1812, subdivision 1, is amended to read:


Subdivision 1.

Scope.

For purposes of sections 469.1812 to , the
following terms have the meanings given.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2019.
new text end

Sec. 18.

Minnesota Statutes 2016, section 469.1812, is amended by adding a subdivision
to read:


new text begin Subd. 2a. new text end

new text begin Medical facility. new text end

new text begin "Medical facility" means:
new text end

new text begin (1) an office, clinic, building, or portion of a building, the primary use of which is the
provision of primary or specialty health care services to patients on an outpatient basis, by
one or more state-licensed or registered health care providers;
new text end

new text begin (2) a birth center licensed under section 144.615;
new text end

new text begin (3) a hospital licensed under sections 144.50 to 144.56;
new text end

new text begin (4) an urgent care clinic which provides treatment for medical conditions that are not
life-threatening or potentially permanently disabling and do not require critical or emergency
interventions; or
new text end

new text begin (5) an outpatient surgical center licensed under section 144.55.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment for
taxes payable beginning in 2019 and for sales and purchases made after June 30, 2018.
new text end

Sec. 19.

Minnesota Statutes 2016, section 469.1812, is amended by adding a subdivision
to read:


new text begin Subd. 2b. new text end

new text begin Medically underserved county. new text end

new text begin "Medically underserved county" means a
county, any portion of which is designated by the federal secretary of health and human
services as a medically underserved area or medically underserved population, as defined
under Code of Federal Regulations, title 42, section 51C.102. By December 15 of each year,
the commissioner of health must certify to the commissioner of revenue the counties that
are medically underserved. By December 31 of each year, the commissioner of revenue
must certify the list of medically underserved counties to county assessors, for assessments
in the following year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2018
for taxes payable in 2019. For assessment year 2018, the certification required to be made
by the commissioner of health must be made by June 1, 2018, and the certification required
to be made by the commissioner of revenue must be made by June 15, 2018.
new text end

Sec. 20.

new text begin [469.1817] MEDICALLY UNDERSERVED TAX ABATEMENT AREAS.
new text end

new text begin Subdivision 1. new text end

new text begin Qualification. new text end

new text begin The state general tax under section 275.025 must be abated
for any property or portion thereof containing a medical facility that has been granted an
abatement under section 469.1813, provided that:
new text end

new text begin (1) the facility is located in a medically underserved county at the time the abatement
resolution is adopted;
new text end

new text begin (2) the facility is not located in a metropolitan county as defined under section 473.121,
subdivision 4;
new text end

new text begin (3) the resolution of one or more governing bodies granting the abatement specifies that
the facility addresses an underserved need for medical services in the area; and
new text end

new text begin (4) both the county and the city or town are abating all taxes on the property containing
the facility for at least 15 years.
new text end

new text begin Subd. 2. new text end

new text begin Duration. new text end

new text begin The state general tax is abated for 15 years.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2019.
new text end

Sec. 21.

Minnesota Statutes 2016, section 473H.08, subdivision 1, is amended to read:


Subdivision 1.

Till expiration started.

Agricultural preserves shall continue until deleted text begineither
deleted text end the landowner deleted text beginordeleted text endnew text begin,new text end the authoritynew text begin, or a state agency or governmental unitnew text end initiates expiration
as provided in this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to any agricultural preserve where the previously required eight-year termination
period under Minnesota Statutes, section 473H.08, has not yet expired.
new text end

Sec. 22.

Minnesota Statutes 2016, section 473H.08, is amended by adding a subdivision
to read:


new text begin Subd. 3a. new text end

new text begin Expiration for park and trail purposes. new text end

new text begin (a) An agricultural preserve expires
immediately when a state agency or other governmental unit purchases the property or
obtains an easement over the property for the purpose of creating or expanding a public
trail or public park. This subdivision applies only to the portion of the agricultural preserve
acquired for trail or park purposes, and any portion of the property not acquired for trail or
park purposes shall remain an agricultural preserve.
new text end

new text begin (b) The acquiring state agency or governmental unit shall give notice to the authority as
provided in subdivision 5. The notice must specify the portion of the property being removed
from the agricultural preserve and the date on which that portion expires.
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 any agricultural preserve where the previously required eight-year termination
period under Minnesota Statutes, section 473H.08, has not yet expired.
new text end

Sec. 23.

Minnesota Statutes 2016, section 473H.08, subdivision 4, is amended to read:


Subd. 4.

Notice to others.

Upon receipt of the notice provided in subdivision 2new text begin or 3anew text end,
or upon notice served by the authority as provided in subdivision 3, the authority shall
forward the original notice to the county recorder for recording, or to the registrar of titles
if the land is registered, and shall notify the county auditor, county assessor, the Metropolitan
Council, and the county soil and water conservation district of the date of expiration.
Designation as an agricultural preserve and all benefits and limitations accruing through
sections 473H.02 to 473H.17 for the preserve shall cease on the date of expiration. The
restrictive covenant contained in the application shall terminate on the date of expiration.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to any agricultural preserve where the previously required eight-year termination
period under Minnesota Statutes, section 473H.08, has not yet expired.
new text end

Sec. 24.

Laws 2008, chapter 366, article 5, section 33, the effective date, as amended by
Laws 2013, chapter 143, article 4, section 35, is amended to read:


EFFECTIVE DATE.

This section is effective for taxes levied in 2008, payable in 2009,
and is repealed effective for taxes levied in deleted text begin2018deleted text endnew text begin 2023new text end, payable in deleted text begin2019deleted text endnew text begin 2024new text end, and thereafter.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2019.
new text end

Sec. 25. new text beginABATEMENT; NONPROFIT PROPERTY.
new text end

new text begin Property taxes payable in 2018 are abated for property that:
new text end

new text begin (1) is located in a city of the first class;
new text end

new text begin (2) contains a structure of between 9,000 and 10,000 square feet originally built in 1937;
new text end

new text begin (3) is owned by an institution of purely public charity exempt from federal income
taxation under section 501(c)(3) of the Internal Revenue Code; and
new text end

new text begin (4) is developed and operated as a nonprofit community mental health center.
new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 5

PROPERTY TAX REFORM

Section 1.

Minnesota Statutes 2016, section 123A.455, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

"Split residential property parcel" means a parcel of real
estate that is located within the boundaries of more than one school district and that is
classified as residential property underdeleted text begin:
deleted text end

deleted text begin (1)deleted text end section 273.13, subdivision 22deleted text begin, paragraph (a) or (b);
deleted text end

deleted text begin (2) section 273.13, subdivision 25, paragraph (b), clause (1); or
deleted text end

deleted text begin (3) section 273.13, subdivision 25, paragraph (c)deleted text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2020.
new text end

Sec. 2.

Minnesota Statutes 2016, section 126C.01, subdivision 3, is amended to read:


Subd. 3.

Referendum market value.

"Referendum market value" means the market
value of all taxable property, excluding property classified as class 2deleted text begin, 4c(4), or 4c(12)deleted text end new text beginor
4h
new text endunder section 273.13. deleted text beginThe portion of class 2a property consisting of the house, garage,
and surrounding one acre of land of an agricultural homestead is included in referendum
market value.
deleted text end For the purposes of this subdivision, in the case of deleted text beginclass 1a, 1b, or 2adeleted text end propertynew text begin
qualifying for the exclusion under section 273.13, subdivision 35
new text end, "market value" means
the value prior to the exclusion deleted text beginunder section 273.13, subdivision 35deleted text end. Any class of property,
or any portion of a class of property, that is included in the definition of referendum market
value and that has a classification rate of less than one percent under section 273.13 shall
have a referendum market value equal to its market value times its classification rate,
multiplied by 100.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2020.
new text end

Sec. 3.

Minnesota Statutes 2016, section 270.12, subdivision 2, is amended to read:


Subd. 2.

Meeting dates; duties.

The board shall meet annually between deleted text beginApril 15deleted text endnew text begin May
1
new text end and deleted text beginJune 30deleted text endnew text begin July 1new text end at the office of the commissioner of revenue and examine and compare
the returns of the assessment of the property in the several counties, and equalize the same
so that all the taxable property in the state shall be assessed at its market value, subject to
the following rules:

(1) The board shall add to or deduct from the aggregate valuation of the real property
of every county, which the board believes to be valued below or above its market value in
money, such percent as will bring the same to its market value;

(2) If the board believes the valuation for a part of a class determined by a range of
market value under clause (6) or otherwise, a class, or classes of the real property of any
town or district in any county, or the valuation for a part of a class, a class, or classes of the
real property of any county not in towns or cities, should be raised or reduced, without
raising or reducing the other real property of such county, or without raising or reducing it
in the same ratio, the board may add to, or take from, the valuation of a part of a class, a
class, or classes in any one or more of such towns or cities, or of the property not in towns
or cities, such percent as the board believes will raise or reduce the same to its market value;

(3) The board shall add to or take from the aggregate valuation of any part of a class, a
class, or classes of personal property of any county, town, or city, which the board believes
to be valued below or above the market value thereof, such percent as will raise the same
to its market value;

(4) The board shall not reduce the aggregate valuation of all the property of the state,
as returned by the several county auditors, more than one percent on the whole valuation
thereof;

(5) When it would be of assistance in equalizing values the board may require any county
auditor to furnish statements showing assessments of real and personal property of any
individuals, firms, or corporations within the county. The board shall consider and equalize
such assessments and may increase the assessment of individuals, firms, or corporations
above the amount returned by the county board of equalization when it shall appear to be
undervalued, first giving notice to such persons of the intention of the board so to do, which
notice shall fix a time and place of hearing. The board shall not decrease any such assessment
below the valuation placed by the county board of equalization;

(6) In equalizing values pursuant to this section, the board shall utilize a 12-month
assessment/sales ratio study conducted by the Department of Revenue containing only sales
that are filed in the county auditor's office under section 272.115, by November 1 of the
previous year and that occurred between October 1 of the year immediately preceding the
previous year and September 30 of the previous year.

The assessment/sales ratio study may separate the values of residential property into
market value categories. The board may adjust the market value categories and the number
of categories as necessary to create an adequate sample size for each market value category.
The board may determine the adequate sample size. To the extent practicable, the
methodology used in preparing the assessment/sales ratio study must be consistent with the
most recent Standard on Assessment Sales Ratio Studies published by the Assessment
Standards Committee of the International Association of Assessing Officers. The board
may determine the geographic area used in preparing the study to accurately equalize values.
A sales ratio study separating residential property into market value categories may not be
used as the basis for a petition under chapter 278.

The sales prices used in the study must be discounted for terms of financing. The board
shall use the median ratio as the statistical measure of the level of assessment for any
particular category of property; and

(7) The board shall receive from each county the estimated market values on the
assessment date falling within the study period for all parcels by a medium as prescribed
by the commissioner of revenue.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessments in 2020.
new text end

Sec. 4.

Minnesota Statutes 2016, section 270.12, subdivision 3, is amended to read:


Subd. 3.

Jurisdictions in two or more counties.

When a taxing jurisdiction lies in two
or more counties, if the sales ratio studies prepared by the Department of Revenue show
that the average levels of assessment in the several portions of the taxing jurisdictions in
the different counties differ by more than five percent, the board may order the apportionment
of the levy. When the sales ratio studies prepared by the Department of Revenue show that
the average levels of assessment in the several portions of the taxing jurisdictions in the
different counties differ by more than ten percent, the board shall order the apportionment
of the levy unless (a) the proportion of total adjusted tax capacity in one of the counties is
less than ten percent of the total adjusted tax capacity in the taxing jurisdiction and the
average level of assessment in that portion of the taxing jurisdiction is the level which differs
by more than five percent from the assessment level in any one of the other portions of the
taxing jurisdiction; (b) significant changes have been made in the level of assessment in the
taxing jurisdiction which have not been reflected in the sales ratio study, and those changes
alter the assessment levels in the portions of the taxing jurisdiction so that the assessment
level now differs by five percent or less; or (c) commercial, industrial, mineral, or public
utility property predominates in one county within the taxing jurisdiction and another class
of property predominates in another county within that same taxing jurisdiction. If one or
more of these factors are present, the board may order the apportionment of the levy.

Notwithstanding any other provision, the levy for the Metropolitan Mosquito Control
District, Metropolitan Council, metropolitan transit district, and metropolitan transit area
must be apportioned without regard to the percentage difference.

If, pursuant to this subdivision, the board apportions the levy, then that levy
apportionment among the portions in the different counties shall be made in the same
proportion as the adjusted tax capacity as determined by the commissioner in each portion
is to the total adjusted tax capacity of the taxing jurisdiction.

For the purposes of this section, the average level of assessment in a taxing jurisdiction
or portion thereof shall be the aggregate assessment sales ratio. Tax capacities as determined
by the commissioner shall be the tax capacities as determined for the year preceding the
year in which the levy to be apportioned is levied.

Actions pursuant to this subdivision shall be commenced subsequent to the annual
meeting on deleted text beginApril 15deleted text endnew text begin May 1new text end of the State Board of Equalization, but notice of the action shall
be given to the affected jurisdiction and the appropriate county auditors by the following
deleted text begin June 30deleted text endnew text begin July 1new text end.

Apportionment of a levy pursuant to this subdivision shall be considered as a remedy
to be taken after equalization pursuant to subdivision 2, and when equalization within the
jurisdiction would disturb equalization within other jurisdictions of which the several portions
of the jurisdiction in question are a part.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessments in 2020.
new text end

Sec. 5.

Minnesota Statutes 2016, section 270.96, subdivision 1, is amended to read:


Subdivision 1.

Assessors.

Each assessor shall notify the county auditor of the
contamination value under section 270.91 by the separate tax rate categories under
subdivisions 2, 3, and 4 for each parcel of property within the assessor's jurisdiction. The
assessor shall provide notice of the contamination value to the property owner by the later
of deleted text beginJunedeleted text end new text beginMay new text end1 of the assessment year or 30 days after the reduction in market value is finally
granted.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessments in 2020.
new text end

Sec. 6.

Minnesota Statutes 2016, section 270C.91, is amended to read:


270C.91 RECORD OF PROCEEDINGS CHANGING NET TAX CAPACITY;
DUTIES OF COUNTY AUDITOR.

A record of all proceedings of the commissioner affecting any change in the net tax
capacity of any property, as revised by the State Board of Equalization, shall be kept by the
commissioner and a copy thereof, duly certified, shall be mailed each year to the auditor of
each county wherein such property is situated, on or before deleted text beginJune 30deleted text endnew text begin July 1new text end or 30 days after
submission of the abstract required by section 270C.89, whichever is later. This record shall
specify the amounts or amount, or both, added to or deducted from the net tax capacity of
the real property of each of the several towns and cities, and of the real property not in towns
or cities, also the percent or amount of both, added to or deducted from the several classes
of personal property in each of the towns and cities, and also the amount added to or deducted
from the assessment of any person. The county auditor shall add to or deduct from such
tract or lot, or portion thereof, of any real property in the county the required percent or
amount, or both, on the net tax capacity thereof as it stood after equalized by the county
board, adding in each case a fractional sum of 50 cents or more, and deducting in each case
any fractional sum of less than 50 cents, so that no net tax capacity of any separate tract or
lot shall contain any fraction of a dollar; and add to, or deduct from, the several classes of
personal property in the county the required percent or amount, or both, on the net tax
capacity thereof as it stood after equalized by the county board, adding or deducting in
manner aforesaid any fractional sum so that no net tax capacity of any separate class of
personal property shall contain a fraction of a dollar, and add to or deduct from assessment
of any person, as they stood after equalization by the county board, the required amounts
to agree with the assessments as returned by the commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessments in 2020.
new text end

Sec. 7.

Minnesota Statutes 2017 Supplement, section 271.21, subdivision 2, is amended
to read:


Subd. 2.

Jurisdiction.

At the election of the taxpayer, the Small Claims Division shall
have jurisdiction only in the following matters:

(a) cases involving valuation, assessment, or taxation of real or personal property, if:

(i) the issue is a denial of a current year application for the homestead classification for
the taxpayer's property;

(ii) only one parcel is included in the petition, the entire parcel is classified as homestead
class deleted text begin1a or 1bdeleted text endnew text begin 1new text end under section 273.13, and the parcel contains no more than one dwelling
unit;

(iii) the deleted text beginentiredeleted text end property is classified as agricultural homestead class 2a deleted text beginor 1bdeleted text endnew text begin, a portion
of which may be classified as homestead class 1,
new text end under section 273.13; or

(iv) the assessor's estimated market value of the property included in the petition is less
than $300,000; or

(b) any case not involving valuation, assessment, or taxation of real and personal property
in which the amount in controversy does not exceed $15,000, including penalty and interest.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2020.
new text end

Sec. 8.

Minnesota Statutes 2016, section 272.025, subdivision 3, is amended to read:


Subd. 3.

Filing dates.

(a) The statement required by subdivision 1, paragraph (a), must
be filed with the assessor by deleted text beginFebruarydeleted text endnew text begin Maynew text end 1 of the assessment year, however, any taxpayer
who has filed the statement required by subdivision 1 more than 12 months prior to February
1, 1983, or February 1 of each third year after 1983, shall file a statement by February 1,
1983, and by deleted text beginFebruarydeleted text endnew text begin Maynew text end 1 of each third year thereafter.

(b) For churches and houses of worship, and property solely used for educational purposes
by academies, colleges, universities, or seminaries of learning, no statement is required after
the statement filed for the assessment year in which the exemption began.

(c) This section does not apply to existing churches and houses of worship, and property
solely used for educational purposes by academies, colleges, universities, or seminaries of
learning that were exempt for taxes payable in 2011.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessments in 2020.
new text end

Sec. 9.

Minnesota Statutes 2016, section 273.11, subdivision 12, is amended to read:


Subd. 12.

Community land trusts.

(a) A community land trust, as defined under chapter
462A, is (i) a community-based nonprofit corporation organized under chapter 317A, which
qualifies for tax exempt status under 501(c)(3), or (ii) a "city" as defined in section 462C.02,
subdivision 6
, which has received funding from the Minnesota housing finance agency for
purposes of the community land trust program. The Minnesota Housing Finance Agency
shall set the criteria for community land trusts.

(b) All occupants of a community land trust building must have a family income of less
than 80 percent of the greater of (1) the state median income, or (2) the area or county
median income, as most recently determined by the Department of Housing and Urban
Development. Before the community land trust can rent or sell a unit to an applicant, the
community land trust shall verify to the satisfaction of the administering agency or the city
that the family income of each person or family applying for a unit in the community land
trust building is within the income criteria provided in this paragraph. The administering
agency or the city shall verify to the satisfaction of the county assessor that the occupant
meets the income criteria under this paragraph. The property tax benefits under paragraph
(c) shall be granted only to property owned or rented by persons or families within the
qualifying income limits. The family income criteria and verification is only necessary at
the time of initial occupancy in the property.

(c) A unit which is owned by the occupant and used as a homestead by the occupant
qualifies for homestead treatment as class deleted text begin1adeleted text endnew text begin 1new text end under section 273.13, subdivision 22. A unit
which is rented by the occupant and used as a homestead by the occupant shall be class 4a
or deleted text begin4bdeleted text end new text beginnonhomestead class 1 new text endpropertydeleted text begin,deleted text end under section 273.13deleted text begin, subdivision 25deleted text end, whichever is
applicable. Any remaining portion of the property not used for residential purposes shall
be classified by the assessor in the appropriate class based upon the use of that portion of
the property owned by the community land trust. The land upon which the building is located
shall be assessed at the same classification rate as the units within the building, provided
that if the building contains some units assessed as new text beginhomestead new text endclass deleted text begin1adeleted text endnew text begin 1new text end and some units
assessed as class 4a or deleted text begin4bdeleted text endnew text begin nonhomestead class 1new text end, the market value of the land will be assessed
in the same proportions as the value of the building.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2020.
new text end

Sec. 10.

Minnesota Statutes 2016, section 273.1115, subdivision 2, is amended to read:


Subd. 2.

Requirement.

Real estate is entitled to valuation under this section only if all
of the following requirements are met:

(1) the property is classified as class deleted text begin1a, 1bdeleted text endnew text begin 1new text end, 2a, or 2b property under section 273.13,
subdivisions 22 and 23, or the property is classified as class 2e under section 273.13,
subdivision 23, and immediately before being classified as class 2e was classified as class
deleted text begin 1a or 1bdeleted text endnew text begin 1new text end;

(2) the property is at least ten contiguous acres, when the application is filed under
subdivision 3;

(3) the owner has filed a completed application for deferment as specified in subdivision
3 with the county assessor in the county in which the property is located;

(4) there are no delinquent taxes on the property; and

(5) a covenant on the land restricts its use as provided in subdivision 3, clause (4).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2020.
new text end

Sec. 11.

Minnesota Statutes 2016, section 273.112, subdivision 6, is amended to read:


Subd. 6.

Application.

Application for deferment of taxes and assessment under this
section shall be made deleted text beginat least 60 days prior to January 2deleted text endnew text begin by November 1new text end of new text beginthe year prior
to
new text endeach yearnew text begin for which deferment of taxes and assessment is soughtnew text end. Such application shall
be filed with the assessor of the taxing district in which the real property is located on such
form as may be prescribed by the commissioner of revenue. The assessor may require proof
by affidavit or other written verification that the property qualifies under subdivision 3. In
the case of property operated by private clubs pursuant to subdivision 3, clause (c)(3), in
order to qualify for valuation and tax deferment under this section, the taxpayer must submit
to the assessor proof by affidavit or other written verification that the bylaws or rules and
regulations of the club meet the eligibility requirements provided under this section. The
signed affidavit or other written verification shall be sufficient demonstration of eligibility
for the assessor unless the county attorney determines otherwise.

The county assessor shall refer any question regarding the eligibility for valuation and
deferment under this section to the county attorney for advice and opinion under section
388.051, subdivision 1. Upon request of the county attorney, the taxpayer shall furnish
information that the county attorney considers necessary in order to determine eligibility
under this section.

Real estate is not entitled to valuation and deferment under this section unless the county
assessor has filed with the assessor's tax records prior to October deleted text begin16deleted text endnew text begin 1new text end a statement that the
application has been accepted.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessments in 2020.
new text end

Sec. 12.

Minnesota Statutes 2016, section 273.1231, subdivision 4, is amended to read:


Subd. 4.

Homestead property.

"Homestead property" means a homestead dwelling that
is classified as class deleted text begin1a, 1b, or 2adeleted text endnew text begin 1new text end property or a manufactured home or sectional home
used as a homestead and taxed pursuant to section 273.125, subdivision 8, paragraph (b),
(c), or (d).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2020.
new text end

Sec. 13.

Minnesota Statutes 2016, section 273.124, subdivision 1, is amended to read:


Subdivision 1.

General rule.

(a) new text beginClass 1 new text endresidential real estate new text beginunder section 273.13,
subdivision 22,
new text endthat is occupied and used for the purposes of a homestead by its owner, who
must be a Minnesota resident, is a residential homestead.new text begin 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.
new text end

Agricultural land, as defined in section 273.13, subdivision 23, that is occupied and used
as a homestead by its owner, who must be a Minnesota resident, is an agricultural homestead.

Dates for establishment of a homestead and homestead treatment provided to particular
types of property are as provided in this section.

Property held by a trustee under a trust is eligible for homestead classification if the
requirements under this chapter are satisfied.

The assessor shall require proof, as provided in subdivision 13, of the facts upon which
classification as a homestead may be determined. Notwithstanding any other law, the assessor
may at any time require a homestead application to be filed in order to verify that any
property classified as a homestead continues to be eligible for homestead status.
Notwithstanding any other law to the contrary, the Department of Revenue may, upon
request from an assessor, verify whether an individual who is requesting or receiving
homestead classification has filed a Minnesota income tax return as a resident for the most
recent taxable year for which the information is available.

When there is a name change or a transfer of homestead property, the assessor may
reclassify the property in the next assessment unless a homestead application is filed to
verify that the property continues to qualify for homestead classification.

(b) For purposes of this section, homestead property shall include property which is used
for purposes of the homestead but is separated from the homestead by a road, street, lot,
waterway, or other similar intervening property. The term "used for purposes of the
homestead" shall include but not be limited to uses for gardens, garages, or other outbuildings
commonly associated with a homestead, but shall not include vacant land held primarily
for future development. In order to receive homestead treatment for the noncontiguous
property, the owner must use the property for the purposes of the homestead, and must apply
to the assessor, both by the deadlines given in subdivision 9. After initial qualification for
the homestead treatment, additional applications for subsequent years are not required.

(c) Residential real estate that is occupied and used for purposes of a homestead by a
relative of the owner is a homestead but only to the extent of the homestead treatment that
would be provided if the related owner occupied the property. For purposes of this paragraph
and paragraph (g), "relative" means a parent, stepparent, child, stepchild, grandparent,
grandchild, brother, sister, uncle, aunt, nephew, or niece. This relationship may be by blood
or marriage. 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 will not be reclassified as a homestead unless it is occupied as a homestead by the
owner; this prohibition also applies to property that, in the absence of this paragraph, would
have been classified as seasonal residential recreational property at the time when the
residence was constructed. Neither the related occupant nor the owner of the property may
claim a property tax refund under chapter 290A for a homestead occupied by a relative. In
the case of a residence located on agricultural land, only the house, garage, and immediately
surrounding one acre of land shall be classified as a homestead under this paragraph, except
as provided in paragraph (d).

(d) Agricultural property that is occupied and used for purposes of a homestead by a
relative of the owner, is a homestead, only to the extent of the homestead treatment that
would be provided if the related owner occupied the property, and only if all of the following
criteria are met:

(1) the relative who is occupying the agricultural property is a grandchild, child, sibling,
or parent of the owner of the agricultural property or of the spouse of the owner;

(2) the owner of the agricultural property must be a Minnesota resident;

(3) the owner of the agricultural property must not receive homestead treatment on any
other agricultural property in Minnesota; and

(4) the owner of the agricultural property is limited to only one agricultural homestead
per family under this paragraph.

Neither the related occupant nor the owner of the property may claim a property tax
refund under chapter 290A for a homestead occupied by a relative qualifying under this
paragraph. For purposes of this paragraph, "agricultural property" means the house, garage,
other farm buildings and structures, and agricultural land.

Application must be made to the assessor by the owner of the agricultural property to
receive homestead benefits under this paragraph. The assessor may require the necessary
proof that the requirements under this paragraph have been met.

(e) In the case of property owned by a property owner who is married, the assessor must
not deny homestead treatment in whole or in part if only one of the spouses occupies the
property and the other spouse is absent due to: (1) marriage dissolution proceedings, (2)
legal separation, (3) employment or self-employment in another location, or (4) other
personal circumstances causing the spouses to live separately, not including an intent to
obtain two homestead classifications for property tax purposes. To qualify under clause (3),
the spouse's place of employment or self-employment must be at least 50 miles distant from
the other spouse's place of employment, and the homesteads must be at least 50 miles distant
from each other.

(f) The assessor must not deny homestead treatment in whole or in part if:

(1) in the case of a property owner who is not married, the owner is absent due to
residence in a nursing home, boarding care facility, or an elderly assisted living facility
property as defined in section 273.13, subdivision 25a, and the property is not otherwise
occupied; or

(2) in the case of a property owner who is married, the owner or the owner's spouse or
both are absent due to residence in a nursing home, boarding care facility, or an elderly
assisted living facility property as defined in section 273.13, subdivision 25a, and the property
is not occupied or is occupied only by the owner's spouse.

(g) If an individual is purchasing property with the intent of claiming it as a homestead
and is required by the terms of the financing agreement to have a relative shown on the deed
as a co-owner, the assessor shall allow a full homestead classification. This provision only
applies to first-time purchasers, whether married or single, or to a person who had previously
been married and is purchasing as a single individual for the first time. The application for
homestead benefits must be on a form prescribed by the commissioner and must contain
the data necessary for the assessor to determine if full homestead benefits are warranted.

(h) If residential or agricultural real estate is occupied and used for purposes of a
homestead by a child of a deceased owner and the property is subject to jurisdiction of
probate court, the child shall receive relative homestead classification under paragraph (c)
or (d) to the same extent they would be entitled to it if the owner was still living, until the
probate is completed. For purposes of this paragraph, "child" includes a relationship by
blood or by marriage.

(i) If a single-family home, duplex, or triplex classified as either residential homestead
or agricultural homestead is also used to provide licensed child care, the portion of the
property used for licensed child care must be classified as a part of the homestead property.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2020.
new text end

Sec. 14.

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 deleted text begin4cdeleted text endnew text begin 1new text end property deleted text beginclassifieddeleted text end under section deleted text begin273.13, subdivision 25, paragraph (d), clause
(5), item (ii).
deleted text endnew text begin 273.13, subdivision 22, andnew text end the homestead market value exclusion under
section 273.13, subdivision 35, does not apply deleted text beginand 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 taxes payable in 2020.
new text end

Sec. 15.

Minnesota Statutes 2016, section 273.124, subdivision 8, is amended to read:


Subd. 8.

Homestead owned by or leased to family farm corporation, joint farm
venture, limited liability company, or partnership.

(a) Each family farm corporation;
each joint family farm venture; and each limited liability company or partnership which
operates a family farm; is entitled to class 1b under section 273.13, subdivision 22, paragraph
(b), or class 2a assessment for one homestead occupied by a shareholder, member, or partner
thereof who is residing on the land, and actively engaged in farming of the land owned by
the family farm corporation, joint family farm venture, limited liability company, or
partnership. Homestead treatment applies even ifnew text begin:
new text end

new text begin (1)new text end legal title to the property is in the name of the family farm corporation, joint family
farm venture, limited liability company, or partnership, and not in the name of the person
residing on itdeleted text begin.deleted text endnew text begin; or
new text end

new text begin (2) the family farm is operated by a family farm corporation, joint family farm venture,
partnership, or limited liability company other than the family farm corporation, joint family
farm venture, partnership, or limited liability company that owns the land, provided that:
new text end

new text begin (i) the shareholder, member, or partner of the family farm corporation, joint family farm
venture, partnership, or limited liability company that owns the land and that is residing on
and actively engaged in farming the land is a shareholder, member, or partner of the family
farm corporation, joint family farm venture, partnership, or limited liability company that
is operating the farm;
new text end

new text begin (ii) each shareholder, member, or partner of the family farm corporation, joint family
farm venture, partnership, or limited liability company that is operating the farm is also a
shareholder, member, or partner of the family farm corporation, joint family farm venture,
partnership, or limited liability company that owns the land; and
new text end

new text begin (iii) a majority of the shareholders, members, or partners of each family farm corporation,
joint family farm venture, partnership, or limited liability company are persons or spouses
of persons who are related to each other within the second degree of kindred according to
the rules of civil law.
new text end

"Family farm corporation," "family farm," and "partnership operating a family farm"
have the meanings given in section 500.24, except that the number of allowable shareholders,
members, or partners under this subdivision shall not exceed 12. "Limited liability company"
has the meaning contained in sections 322B.03, subdivision 28, or 322C.0102, subdivision
12
, and 500.24, subdivision 2, paragraphs (l) and (m). "Joint family farm venture" means
a cooperative agreement among two or more farm enterprises authorized to operate a family
farm under section 500.24.

(b) In addition to property specified in paragraph (a), any other residences owned by
family farm corporations, joint family farm ventures, limited liability companies, or
partnerships described in paragraph (a) which are located on agricultural land and occupied
as homesteads by its shareholders, members, or partners who are actively engaged in farming
on behalf of that corporation, joint farm venture, limited liability company, or partnership
must also be assessed as class 2a property or as class 1b property under section 273.13.

(c) Agricultural property that is owned by a member, partner, or shareholder of a family
farm corporation or joint family farm venture, limited liability company operating a family
farm, or by a partnership operating a family farm and leased to the family farm corporation,
limited liability company, partnership, or joint farm venture, as defined in paragraph (a), is
eligible for classification as class 1b or class 2a under section 273.13, if the owner is actually
residing on the property, and is actually engaged in farming the land on behalf of that
corporation, joint farm venture, limited liability company, or partnership. This paragraph
applies without regard to any legal possession rights of the family farm corporation, joint
family farm venture, limited liability company, or partnership under the lease.

(d) Nonhomestead agricultural property that is owned by a family farm corporation,
joint farm venture, limited liability company, or partnership; and located not farther than
four townships or cities, or combination thereof, from agricultural land that is owned, and
used for the purposes of a homestead by an individual who is a shareholder, member, or
partner of the corporation, venture, company, or partnership; is entitled to receive the first
tier homestead classification rate on any remaining market value in the first homestead class
tier that is in excess of the market value of the shareholder's, member's, or partner's class 2
agricultural homestead property, if the owner, or someone acting on the owner's behalf
notifies the county assessor by deleted text beginJulydeleted text endnew text begin Maynew text end 1 that the property may be eligible under this
paragraph for the current assessment year, for taxes payable in the following year. As used
in this paragraph, "agricultural property" means property classified as 2a under section
273.13, along with any contiguous property classified as 2b under section 273.13, if the
contiguous 2a and 2b properties are under the same ownership.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessments in 2020.
new text end

Sec. 16.

Minnesota Statutes 2016, section 273.124, subdivision 9, is amended to read:


Subd. 9.

Homestead established after assessment date.

Any property that was not
used for the purpose of a homestead on the assessment date, but which was used for the
purpose of a homestead on December 1 of a year, constitutes class 1 or class 2a.

Any taxpayer meeting the requirements of this subdivision must notify the county
assessor, or the assessor who has the powers of the county assessor under section 273.063,
in writing, by December deleted text begin15deleted text endnew text begin 31new text end of the year of occupancy in order to qualify under this
subdivision. The assessor must not deny full homestead treatment to a property that is
partially homesteaded on January 2 but occupied for the purpose of a full homestead on
December 1 of a year.

The county assessor and the county auditor may make the necessary changes on their
assessment and tax records to provide for proper homestead classification as provided in
this subdivision.

If homestead classification has not been requested as of December deleted text begin15deleted text endnew text begin 31new text end, the assessor
will classify the property as nonhomestead for the current assessment year for taxes payable
in the following year, provided that the owner of any property qualifying under this
subdivision, which has not been accorded the benefits of this subdivision, may be entitled
to receive homestead classification by proper application as provided in section 375.192.

deleted text begin The county assessor may publish in a newspaper of general circulation within the county
a notice requesting the public to file an application for homestead as soon as practicable
after acquisition of a homestead, but no later than December 15.
deleted text end

The county assessor shall publish in a newspaper of general circulation within the county
no later than December 1 of each year a notice informing the public of the requirement to
file an application for homestead by December deleted text begin15deleted text endnew text begin 31new text end.

In the case of manufactured homes assessed as personal property, the homestead must
be established, and a homestead classification requested, by May deleted text begin29deleted text endnew text begin 1new text end of the assessment
year. The assessor may include information on these deadlines for manufactured homes
assessed as personal property in the published notice or notices.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessments in 2020.
new text end

Sec. 17.

Minnesota Statutes 2016, section 273.124, subdivision 17, is amended to read:


Subd. 17.

Owner-occupied motel property.

For purposes of class deleted text begin1adeleted text endnew text begin 1new text end determinations,
a homestead includes that portion of property defined as a motel under chapter 157, provided
that the person residing in the motel property is using that property as a homestead, is part
owner, and is actively engaged in the operation of the motel business. Homestead treatment
applies even if legal title to the property is in the name of a corporation or partnership and
not in the name of the person residing in the motel. The homestead is limited to that portion
of the motel actually occupied by the person.

A taxpayer meeting the requirements of this subdivision must notify the county assessor,
or the assessor who has the powers of the county assessor under section 273.063, in writing,
in order to qualify under this subdivision for deleted text begin1adeleted text end homestead new text beginclass 1 new text endclassification.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2020.
new text end

Sec. 18.

Minnesota Statutes 2016, section 273.125, subdivision 3, is amended to read:


Subd. 3.

Tax statements; penalties; collections.

Not later than July deleted text begin15deleted text endnew text begin 1new text end in the year of
assessment the county treasurer shall mail to the taxpayer a statement of tax due on a
manufactured home. The taxes are due on the last day of August, or 20 days after the
postmark date on the envelope containing the property tax statement, whichever is later,
except that if the tax exceeds $50, one-half of the amount due may be paid on August 31,
or 20 days after the postmark date on the envelope containing the property tax statement,
whichever is later, and the remainder on November 15. Taxes remaining unpaid after the
due date are delinquent, and a penalty of eight percent must be assessed and collected as
part of the unpaid taxes. The tax statement must contain a sentence notifying the taxpayer
that the title to the manufactured home cannot be transferred unless the property taxes are
paid.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessments in 2020.
new text end

Sec. 19.

Minnesota Statutes 2016, section 273.128, subdivision 1, is amended to read:


Subdivision 1.

Requirement.

Low-income rental property classified as class deleted text begin4ddeleted text endnew text begin 4inew text end under
section 273.13, subdivision 25, is entitled to valuation under this section if at least 20 percent
of the units in the rental housing property meet any of the following qualifications:

(1) the units are subject to a housing assistance payments contract under Section 8 of
the United States Housing Act of 1937, as amended;

(2) the units are rent-restricted and income-restricted units of a qualified low-income
housing project receiving tax credits under section 42(g) of the Internal Revenue Code;

(3) the units are financed by the Rural Housing Service of the United States Department
of Agriculture and receive payments under the rental assistance program pursuant to section
521(a) of the Housing Act of 1949, as amended; or

(4) the units are subject to rent and income restrictions under the terms of financial
assistance provided to the rental housing property by the federal government or the state of
Minnesota, or a local unit of government, as evidenced by a document recorded against the
property.

The restrictions must require assisted units to be occupied by residents whose household
income at the time of initial occupancy does not exceed 60 percent of the greater of area or
state median income, adjusted for family size, as determined by the United States Department
of Housing and Urban Development. The restriction must also require the rents for assisted
units to not exceed 30 percent of 60 percent of the greater of area or state median income,
adjusted for family size, as determined by the United States Department of Housing and
Urban Development.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning for property taxes payable in
2020.
new text end

Sec. 20.

Minnesota Statutes 2017 Supplement, section 273.13, subdivision 22, is amended
to read:


Subd. 22.

Class 1.

deleted text begin (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.
deleted text end

new text begin Class 1 property is residential real estate containing fewer than four dwelling units. new text endThe
first $500,000 of new text begintaxable new text endmarket value of class deleted text begin1adeleted text endnew text begin 1new text end property has a deleted text beginnetdeleted text end classification rate of
one percent deleted text beginof its market value;deleted text endnew text begin,new text end and the new text begintaxable new text endmarket value of class deleted text begin1adeleted text endnew text begin 1new text end property that
exceeds $500,000 has a classification rate of 1.25 percent deleted text beginof its market valuedeleted text end.

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

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

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

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

deleted text begin 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.
deleted text end

deleted text begin 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.
deleted text end

deleted text begin 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 is classified as class 1a or class 2a property, whichever is
appropriate.
deleted text end

deleted text begin (c) deleted text end deleted text begin Class 1c property is commercial use real and personal property that abuts public
deleted text end deleted text begin water as defined in section deleted text end deleted text begin 103G.005, subdivision 15 deleted text end deleted text begin , or abuts a state trail administered by
deleted text end deleted text begin the Department of Natural Resources, and is devoted to temporary and seasonal residential
deleted text end deleted text begin occupancy for recreational purposes but not devoted to commercial purposes for more than
deleted text end deleted text begin 250 days in the year preceding the year of assessment, and that includes a portion used as
deleted text end deleted text begin a homestead by the owner, which includes a dwelling occupied as a homestead by a
deleted text end deleted text begin shareholder of a corporation that owns the resort, a partner in a partnership that owns the
deleted text end deleted text begin resort, or a member of a limited liability company that owns the resort even if the title to
deleted text end deleted text begin the homestead is held by the corporation, partnership, or limited liability company. For
deleted text end deleted text begin purposes of this paragraph, property is devoted to a commercial purpose on a specific day
deleted text end deleted text begin if any portion of the property, excluding the portion used exclusively as a homestead, is
deleted text end deleted text begin used for residential occupancy and a fee is charged for residential occupancy. Class 1c
deleted text end deleted text begin property must contain three or more rental units. A "rental unit" is defined as a cabin,
deleted text end deleted text begin condominium, townhouse, sleeping room, or individual camping site equipped with water
deleted text end deleted text begin and electrical hookups for recreational vehicles. Class 1c property must provide recreational
deleted text end deleted text begin activities such as the rental of ice fishing houses, boats and motors, snowmobiles, downhill
deleted text end deleted text begin or cross-country ski equipment; provide marina services, launch services, or guide services;
deleted text end deleted text begin or sell bait and fishing tackle. Any unit in which the right to use the property is transferred
deleted text end deleted text begin to an individual or entity by deeded interest, or the sale of shares or stock, no longer qualifies
deleted text end deleted text begin for class 1c even though it may remain available for rent. A camping pad offered for rent
deleted text end deleted text begin by a property that otherwise qualifies for class 1c is also class 1c, regardless of the term of
deleted text end deleted text begin the rental agreement, as long as the use of the camping pad does not exceed 250 days. If
deleted text end deleted text begin the same owner owns two separate parcels that are located in the same township, and one
deleted text end deleted text begin of those properties is classified as a class 1c property and the other would be eligible to be
deleted text end deleted text begin classified as a class 1c property if it was used as the homestead of the owner, both properties
deleted text end deleted text begin will be assessed as a single class 1c property; for purposes of this sentence, properties are
deleted text end deleted text begin deemed to be owned by the same owner if each of them is owned by a limited liability
deleted text end deleted text begin company, and both limited liability companies have the same membership. The portion of
deleted text end deleted text begin the property used as a homestead is class deleted text end deleted text begin 1a deleted text end deleted text begin property under paragraph (a). The remainder
deleted text end deleted text begin of the property is classified as follows: the first $600,000 of market value is tier I, the next
deleted text end deleted text begin $1,700,000 of market value is tier II, and any remaining market value is tier III. The
deleted text end deleted text begin classification rates for class 1c are: tier I, 0.50 percent; tier II, 1.0 percent; and tier III, 1.25
deleted text end deleted text begin percent. Owners of real and personal property devoted to temporary and seasonal residential
deleted text end deleted text begin occupancy for recreation purposes in which all or a portion of the property was devoted to
deleted text end deleted text begin commercial purposes for not more than 250 days in the year preceding the year of assessment
deleted text end deleted text begin desiring classification as class 1c, must submit a declaration to the assessor designating the
deleted text end deleted text begin cabins or units occupied for 250 days or less in the year preceding the year of assessment
deleted text end deleted text begin by January 15 of the assessment year. Those cabins or units and a proportionate share of
deleted text end deleted text begin the land on which they are located must be designated as class 1c as otherwise provided.
deleted text end deleted text begin The remainder of the cabins or units and a proportionate share of the land on which they
deleted text end deleted text begin are located must be designated as class 3a commercial. The owner of property desiring
deleted text end deleted text begin designation as class 1c property must provide guest registers or other records demonstrating
deleted text end deleted text begin that the units for which class 1c designation is sought were not occupied for more than 250
deleted text end deleted text begin days in the year preceding the assessment if so requested. The portion of a property operated
deleted text end deleted text begin as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5)
deleted text end deleted text begin other nonresidential facility operated on a commercial basis not directly related to temporary
deleted text end deleted text begin and seasonal residential occupancy for recreation purposes does not qualify for class 1c.
deleted text end

deleted text begin (d) Class 1d property includes structures that meet all of the following criteria:
deleted text end

deleted text begin (1) the structure is located on property that is classified as agricultural property under
section 273.13, subdivision 23;
deleted text end

deleted text begin (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;
deleted text end

deleted text begin (3) the structure meets all applicable health and safety requirements for the appropriate
season; and
deleted text end

deleted text begin (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.
deleted text end

deleted text begin The market value of class 1d property has the same classification rates as class 1a property
under paragraph (a).
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2020.
new text end

Sec. 21.

Minnesota Statutes 2017 Supplement, section 273.13, subdivision 23, is amended
to read:


Subd. 23.

Class 2.

(a) An agricultural homestead consists of class 2a agricultural land
new text begin and buildings new text endthat deleted text beginisdeleted text endnew text begin arenew text end homesteaded, along with any class 2b rural vacant land that is
contiguous to the class 2a land under the same ownership. deleted text beginThe 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.
deleted text end The value of the deleted text beginremainingdeleted text end 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 new text begin(i) new text endenrollment in a local
conservation program or the Reinvest in Minnesota program under sections 103F.501 to
103F.535 or the federal Conservation Reserve Program as contained in Public Law 99-198
or a similar state or federal conservation program if the property was classified as agricultural
deleted text begin (i)deleted text endnew text begin (A)new text end under this subdivision for taxes payable in 2003 because of its enrollment in a
qualifying program and the land remains enrolled or deleted text begin(ii)deleted text endnew text begin (B)new text end in the year prior to its enrollmentnew text begin,
or (ii) use of land, not to exceed the greater of three acres or ten percent of the total land
area, to provide environmental benefits such as buffer strips, old growth forest restoration
or retention, or retention ponds to prevent soil erosion
new text end. For purposes of this section, a "local
conservation program" means a program administered by a town, statutory or home rule
charter city, or county, including a watershed district, water management organization, or
soil and water conservation district, in which landowners voluntarily enroll land and receive
incentive payments equal to at least $50 per acre in exchange for use or other restrictions
placed on the land. In order for property to qualify under the local conservation program
provision, a taxpayer must apply to the assessor by February 1 of the assessment year and
must submit the information required by the assessor, including but not limited to a copy
of the program requirements, the specific agreement between the land owner and the local
agency, if applicable, and a map of the conservation area. Agricultural classification shall
not be based upon the market value of any residential structures on the parcel or contiguous
parcels under the same ownership.

new text begin "Agricultural purposes" also includes land consisting of a holding pond designed to
prevent runoff onto a divided four-lane expressway that is located at least 150 feet above
the expressway, as certified by the local soil and water conservation district in accordance
with USDA Field Office Technical Guide conservation practice standards, provided that
the land is located outside the metropolitan area as defined in section 473.121, and was
classified as agricultural in assessment year 2017.
new text end

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

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

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

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

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

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

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

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

(1) wholesale and retail sales;

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

(3) warehousing or storage of processed goods; and

(4) office facilities for the support of the activities enumerated in clauses (1), (2), and
(3),

the assessor shall classify the part of the parcel used for agricultural purposes as class deleted text begin1b,deleted text end
2adeleted text begin,deleted text end 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.

deleted text begin (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.
deleted text end

deleted text begin (l)deleted text endnew text begin (k)new text end 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.

deleted text begin (m)deleted text endnew text begin (l)new text end 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.

deleted text begin (n)deleted text endnew text begin (m)new text end 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.

deleted text begin (o)deleted text endnew text begin (n)new text end 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 taxes payable in 2020.
new text end

Sec. 22.

Minnesota Statutes 2017 Supplement, section 273.13, subdivision 25, is amended
to read:


Subd. 25.

Class 4.

(a) Class 4a is residential real estate containing four or more units
and used or held for use by the owner or by the tenants or lessees of the owner as a residence
for rental periods of 30 days or more, excluding property qualifying for class 4d. Class 4a
also includes hospitals licensed under sections 144.50 to 144.56, other than hospitals exempt
under section 272.02, and contiguous property used for hospital purposes, without regard
to whether the property has been platted or subdivided. The market value of class 4a property
has a classification rate of 1.25 percent.

(b) Class 4b includesdeleted text begin:
deleted text end

deleted text begin (1) residential real estate containing less than four units that does not qualify as class
4bb, other than seasonal residential recreational property;
deleted text end

deleted text begin (2) manufactured homes not classified under any other provision;
deleted text end

deleted text begin (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
deleted text end

deleted text begin (4) unimproved property that is classified residential as determined under subdivision
33.
deleted text end

deleted text begin The market value of class 4b property has a classification rate of 1.25 percent.
deleted text end

deleted text begin (c) Class 4bb includes:
deleted text end

deleted text begin (1) nonhomestead residential real estate containing one unit, other than seasonal
residential recreational property;
deleted text end

deleted text begin (2) a single family dwelling, garage, and surrounding one acre of property on a
nonhomestead farm classified under subdivision 23, paragraph (b); and
deleted text end

deleted text begin (3) a condominium-type storage unit having an individual property identification number
that is not used for a commercial purpose.
deleted text end

deleted text begin Class 4bb property has the same classification rates as class 1a property under subdivision
22.
deleted text end

deleted text begin 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.
deleted text end

deleted text begin (d) Class 4c property includes: (1) except as provided in subdivision 22, paragraph (c),deleted text end
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 deleted text beginclausedeleted text endnew text begin paragraphnew text end, 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 deleted text begin4cdeleted text endnew text begin 4bnew text end property under this
deleted text begin clausedeleted text endnew text begin paragraphnew text end 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 deleted text beginby
a property that otherwise
deleted text end qualifies for class deleted text begin4cdeleted text endnew text begin 4bnew text end under this deleted text beginclause is also class 4c under
this clause
deleted text endnew text begin paragraphnew text end regardless of the term of the rental agreement, as long as the use of
the camping pad does not exceed 250 days. deleted text beginIn 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
deleted text enddeleted text beginrental 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.
deleted text end Class deleted text begin4cdeleted text endnew text begin 4bnew text end
property also includes commercial use real property used exclusively for recreational
purposes in conjunction with other class deleted text begin4cdeleted text endnew text begin 4bnew text end property classified under this deleted text beginclausedeleted text endnew text begin paragraphnew text end
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 deleted text begin4cdeleted text endnew text begin 4bnew text end property with which it is used. In order for a property to qualify
for classification under this deleted text beginclausedeleted text endnew text begin paragraphnew text end, 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 deleted text begin4cdeleted text endnew text begin 4bnew text end
under this deleted text beginclausedeleted text endnew text begin paragraphnew text end 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 deleted text begin4cdeleted text endnew text begin 4bnew text end property under this deleted text beginclausedeleted text endnew text begin
paragraph
new text end must provide guest registers or other records demonstrating that the units for
which class deleted text begin4cdeleted text endnew text begin 4bnew text end 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 deleted text begin4cdeleted text endnew text begin 4bnew text end. For
the purposes of deleted text beginthis paragraphdeleted text endnew text begin paragraphs (b) to (d)new text end, "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
tackledeleted text begin;deleted text endnew text begin.
new text end

new text begin (c) Class 4b(1) property is property that (1) meets the requirements of class 4b in
paragraph (b); (2) abuts public water as defined in section 103G.005, subdivision 15, or
abuts a state trail administered by the Department of Natural Resources; and (3) includes a
portion used as a homestead by the owner, or 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 whether the title to the homestead is held
by the corporation, partnership, or limited liability company, or 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. 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 4b(1) even though it may remain available for rent. 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 4b(1) property and the other would be eligible to
be classified as a class 4b(1) property if it was used as the homestead of the owner, both
properties will be assessed as a single class 4b(1) 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
first $600,000 of market value is tier I, with a class rate of 0.5 percent; the next $1,700,000
of market value is tier II, with a class rate of one percent; and any remaining value is tier
III, with a class rate of 1.25 percent. The portion of the property used as a homestead is
class 1 under subdivision 22.
new text end

new text begin (d) Class 4b(2) is property that does not qualify as class 4b(1) but meets the requirements
of class 4b in paragraph (b), and either: (1) the business located on the property provides
recreational activities, at least 40 percent of the annual gross lodging receipts are from
business conducted during 90 consecutive days, and either (i) at least 60 percent of all paid
bookings by lodging guests during the year are for periods of at least two consecutive nights;
or (ii) at least 20 percent of the annual gross receipts are from charges for providing
recreational activities; (2) the business contains 20 or fewer rental units, and is 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; or (3) the facility must consist of no
more than five sleeping rooms and must provide an area or areas to prepare meals and to
conduct indoor craft or hobby activities. For purposes of item (1)(i), a paid booking of five
or more nights shall be counted as two bookings. Class 4b(2) property has a class rate of
one percent on the first $500,000 of market value and 1.25 percent on the portion over
$500,000.
new text end

deleted text begin (2)deleted text endnew text begin (e) Class 4c property is (1) 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; or (2)
new text end 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 propertydeleted text begin;deleted text endnew text begin.
new text end

new text begin Class 4c property has a class rate of 1.25 percent.
new text end

deleted text begin (3)deleted text end new text begin(f) Class 4d property is new text endreal 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:

deleted text begin (i)deleted text endnew text begin (1)new text end 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

deleted text begin (ii)deleted text endnew text begin (2)new text end 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 deleted text beginclausedeleted text endnew text begin paragraphnew text end:

deleted text begin (A)deleted text endnew text begin (i)new text end "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;

deleted text begin (B)deleted text endnew text begin (ii)new text end "property taxes" excludes the state general tax;

deleted text begin (C)deleted text endnew text begin (iii)new text end a "nonprofit community service oriented organization" means any corporation,
society, association, foundation, or institution organized and operated exclusively for
charitable, religious, fraternal, civic, or educational purposes, and which is exempt from
federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal
Revenue Code; and

deleted text begin (D)deleted text endnew text begin (iv)new text end "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 deleted text beginitem (i)deleted text end new text beginclause (1) new text endor deleted text begin(ii)deleted text end new text begin(2) new text endis
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 deleted text beginitem (ii)deleted text endnew text begin clause (2)new text end 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 instructionsdeleted text begin;deleted text endnew text begin.
new text end

new text begin Class 4d property has a class rate of 1.5 percent, except that class 4d property 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 January 1, 2018, and
each year thereafter.
new text end

deleted text begin (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;
deleted text end

deleted text begin (5)(i) manufactured home parks as defined in section 327.14, subdivision 3, excluding
manufactured home parks described in items (ii) and (iii), (ii) manufactured home parks as
defined in section 327.14, subdivision 3, that are described in section 273.124, subdivision
3a
, and (iii) class I manufactured home parks as defined in section 327C.01, subdivision
13
;
deleted text end

deleted text begin (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;
deleted text end

deleted text begin (7) adeleted text end new text begin(g) Class 4e property is (1) new text endleased 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 hangardeleted text begin.deleted text endnew text begin; or
new text end

deleted text begin 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;
deleted text end

deleted text begin (8)deleted text end new text begin(2) new text enda 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
hangardeleted text begin; anddeleted text endnew text begin.
new text end

new text begin Class 4e property has a class rate of 1.5 percent.
new text end

new text begin If a hangar classified under clause (1), item (i), 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.
new text end

deleted text begin (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:
deleted text end

deleted text begin (i) rooms are provided for rent to transient guests that generally stay for periods of 14
or fewer days;
deleted text end

deleted text begin (ii) meals are provided to persons who rent rooms, the cost of which is incorporated in
the basic room rate;
deleted text end

deleted text begin (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
deleted text end

deleted text begin (iv) the owner is the operator of the property.
deleted text end

deleted text begin 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;
deleted text end

deleted text begin (10)deleted text endnew text begin (h) Class 4f property isnew text end real property up to a maximum of three acres and operated
as a restaurant as defined under section 157.15, subdivision 12, provided it: deleted text begin(i)deleted text endnew text begin (1)new text end is located
on a lake as defined under section 103G.005, subdivision 15, paragraph (a), clause (3); and
deleted text begin (ii)deleted text endnew text begin (2)new text end 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 deleted text beginitem (ii)deleted text endnew text begin clause (2)new text end. 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 deleted text begin4cdeleted text end
classification under this deleted text beginclausedeleted text endnew text begin paragraphnew text end 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 yeardeleted text begin;deleted text endnew text begin. Class 4f has a class rate of 1.25 percent.
new text end

deleted text begin (11)deleted text endnew text begin (i) Class 4g property isnew text end 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 propertydeleted text begin; anddeleted text endnew text begin. Class 4g property has a class
rate of one percent on the first $500,000 of market value and 1.25 percent on the portion
over $500,000.
new text end

deleted text begin (12)deleted text endnew text begin (j) Class 4h property isnew text end real and personal property devoted to noncommercial
temporary and seasonal residential occupancy for recreation purposes.new text begin Class 4h property
has a class rate of one percent on the first $500,000 of market value and 1.25 percent on
the portion over $500,000.
new text end

deleted text begin Class 4c property has a classification rate of 1.5 percent of market value, except that (i)
each parcel of noncommercial seasonal residential recreational property under clause (12)
has the same classification rates as class 4bb property, (ii) manufactured home parks assessed
under clause (5), item (i), have the same classification rate as class 4b property, the market
value of manufactured home parks assessed under clause (5), item (ii), have a classification
rate of 0.75 percent if more than 50 percent of the lots in the park are occupied by
shareholders in the cooperative corporation or association and a classification rate of one
percent if 50 percent or less of the lots are so occupied, and class I manufactured home
parks as defined in section 327C.01, subdivision 13, have a classification rate of 1.0 percent,
(iii) commercial-use seasonal residential recreational property and marina recreational land
as described in clause (11), has a classification rate of one percent for the first $500,000 of
market value, and 1.25 percent for the remaining market value, (iv) the market value of
property described in clause (4) has a classification rate of one percent, (v) the market value
of property described in clauses (2), (6), and (10) has a classification rate of 1.25 percent,
(vi) that portion of the market value of property in clause (9) qualifying for class 4c property
has a classification rate of 1.25 percent, and (vii) property qualifying for classification under
clause (3) that is owned or operated by a congressionally chartered veterans organization
has a classification rate of one percent. The commissioner of veterans affairs must provide
a list of congressionally chartered veterans organizations to the commissioner of revenue
by June 30, 2017, and by January 1, 2018, and each year thereafter.
deleted text end

deleted text begin (e)deleted text endnew text begin (k)new text end Class deleted text begin4ddeleted text endnew text begin 4inew text end 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 deleted text begin4ddeleted text endnew text begin 4inew text end. The remaining portion of the building
shall be classified by the assessor based upon its use. Class deleted text begin4ddeleted text endnew text begin 4inew text end also includes the same
proportion of land as the qualifying low-income rental housing units are to the total units
in the building. For all properties qualifying as class deleted text begin4ddeleted text endnew text begin 4inew text end, the market value determined by
the assessor must be based on the normal approach to value using normal unrestricted rents.

deleted text begin (f)deleted text endnew text begin (l)new text end The first tier of market value of class deleted text begin4ddeleted text endnew text begin 4inew text end property has a classification rate of
0.75 percent. The remaining value of class deleted text begin4ddeleted text endnew text begin 4inew text end property has a classification rate of 0.25
percent. For the purposes of this paragraph, the "first tier of market value of class deleted text begin4ddeleted text endnew text begin 4inew text end
property" means the market value of each housing unit up to the first tier limit. For the
purposes of this paragraph, all class deleted text begin4ddeleted text endnew text begin 4inew text end 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 deleted text begin4ddeleted text endnew text begin 4inew text end under this section for the previous
assessment year, excluding valuation change due to new construction, rounded to the nearest
$1,000, provided, however, that the limit may never be less than $100,000. Beginning with
assessment year 2015, the commissioner of revenue must certify the limit for each assessment
year by November 1 of the previous year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2020.
new text end

Sec. 23.

Minnesota Statutes 2016, section 273.13, subdivision 35, is amended to read:


Subd. 35.

Homestead market value exclusion.

(a) Prior to determining a property's
net tax capacity under this section, new text beginhomestead new text endproperty classified as class deleted text begin1a or 1bdeleted text endnew text begin 1new text end under
subdivision 22, deleted text beginand the portion of property classified as class 2a under subdivision 23
consisting of the house, garage, and surrounding one acre of land,
deleted text end shall be eligible for a
market value exclusion as determined under paragraph (b).

(b) For a homestead valued at $76,000 or less, the exclusion is 40 percent of market
value. For a homestead valued between $76,000 and $413,800, the exclusion is $30,400
minus nine percent of the valuation over $76,000. For a homestead valued at $413,800 or
more, there is no valuation exclusion. The valuation exclusion shall be rounded to the nearest
whole dollar, and may not be less than zero.

(c) Any valuation exclusions or adjustments under section 273.11 shall be applied prior
to determining the amount of the valuation exclusion under this subdivision.

(d) In the case of a property that is classified as part homestead and part nonhomestead,
(i) the exclusion shall apply only to the homestead portion of the property, but (ii) if a portion
of a property is classified as nonhomestead solely because not all the owners occupy the
property, not all the owners have qualifying relatives occupying the property, or solely
because not all the spouses of owners occupy the property, the exclusion amount shall be
initially computed as if that nonhomestead portion were also in the homestead class and
then prorated to the owner-occupant's percentage of ownership. For the purpose of this
section, when an owner-occupant's spouse does not occupy the property, the percentage of
ownership for the owner-occupant spouse is one-half of the couple's ownership percentage.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2020.
new text end

Sec. 24.

Minnesota Statutes 2016, section 273.13, is amended by adding a subdivision to
read:


new text begin Subd. 36. new text end

new text begin Clarification of residential classification. new text end

new text begin Class 1 property under subdivision
22 includes the following types of property, which are not required to be recorded separately
by the assessor:
new text end

new text begin (1) residential structures containing fewer than four dwelling units plus one acre of land
for each structure located on agricultural land, but excluding any farm buildings or structures
located on the acre of land;
new text end

new text begin (2) unimproved property that is classified residential as determined under subdivision
33;
new text end

new text begin (3) manufactured home park land along with any ancillary structures;
new text end

new text begin (4) manufactured homes not classified under any other provision;
new text end

new text begin (5) 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;
new text end

new text begin (6) an owner-occupied dwelling unit within a property classified as class 4a under
subdivision 25;
new text end

new text begin (7) a condominium-type storage unit having an individual property identification number
that is not used for a commercial purpose;
new text end

new text begin (8) structures on property classified as agricultural under section 273.13, subdivision
23, that are occupied exclusively by seasonal farm workers during the time when they work
on the farm, provided that use of the structures for storage of farm equipment or produce
does not disqualify the structures from classification under this clause, and further provided
that:
new text end

new text begin (i) the occupants are not charged rent for the privilege of occupying the property;
new text end

new text begin (ii) the structures meet all applicable health and safety requirements for the appropriate
season; and
new text end

new text begin (iii) the structures are not salable as residential property because they do not comply
with local ordinances relating to location in relation to streets or roads; and
new text end

new text begin (9) residential real estate, a portion of which is occupied by the owner, plus up to five
additional lodging units, if all of the following criteria are met:
new text end

new text begin (i) the lodging units are provided for rent to transient guests that generally stay for periods
of 14 days or less;
new text end

new text begin (ii) meals are provided to persons who rent lodging units, the cost of which is incorporated
in the basic room rate;
new text end

new text begin (iii) meals are not provided to the general public except for special events on less than
seven days in the calendar year preceding the year of assessment; and
new text end

new text begin (iv) the owner is the operator of the property.
new text end

new text begin Any additional lodging units in a property described in clause (9) are class 3a.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2020.
new text end

Sec. 25.

Minnesota Statutes 2017 Supplement, 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 local 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 the local 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 local board of appeal and equalization. On or before deleted text beginFebruary 15deleted text endnew text begin March
1
new text end 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 deleted text beginMay 31deleted text endnew text begin June 1new text end 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 beginning with assessments in 2020.
new text end

Sec. 26.

Minnesota Statutes 2016, section 275.025, subdivision 3, is amended to read:


Subd. 3.

Seasonal residential recreational tax capacity.

For the purposes of this section,
"seasonal residential recreational tax capacity" means the tax capacity of tier III of class deleted text begin1c
under section 273.13, subdivision 22
deleted text endnew text begin 4b(1)new text end, and all class deleted text begin4c(1), 4c(3)(ii), and 4c(12)deleted text endnew text begin 4b(2),
4d(2), and 4h
new text end property under section deleted text begin273.13, subdivision 25deleted text endnew text begin 273.13new text end, except that the first
$76,000 of market value of each noncommercial class deleted text begin4c(12)deleted text endnew text begin 4hnew text end property has a tax capacity
for this purpose equal to 40 percent of its tax capacity under section 273.13.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2020.
new text end

Sec. 27.

Minnesota Statutes 2017 Supplement, section 276.04, subdivision 3, is amended
to read:


Subd. 3.

Mailing of tax statements.

The county treasurer shall mail to taxpayers
statements of their personal property taxes due not later than deleted text beginMarch 31deleted text endnew text begin April 1new text end, except in
the case of manufactured homes and sectional structures taxed as personal property.
Statements of the real property taxes due shall be mailed not later than deleted text beginMarch 31deleted text endnew text begin April 1new text end.
The validity of the tax shall not be affected by failure of the treasurer to mail the statement.
The taxpayer is defined as the owner who is responsible for the payment of the tax.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessments in 2020.
new text end

Sec. 28.

Minnesota Statutes 2016, section 276A.01, subdivision 4, is amended to read:


Subd. 4.

Residential property.

"Residential property" means the following categories
of property, as defined in section 273.13, excluding that portion of the property that is
exempt from taxation pursuant to section 272.02:

(1) class deleted text begin1a, 1b, and 2adeleted text endnew text begin 1new text end propertydeleted text begin, limited to the homestead dwelling, a garage, and the
one acre of land on which the dwelling is located
deleted text end;

(2) that portion of class 3 property used exclusively for residential occupancy; and

(3) property valued and assessed new text beginas class 4a or 4i new text endunder section 273.13, subdivision 25,
except for hospitals deleted text beginand property valued and assessed under section 273.13, subdivision 25,
paragraph (d), clauses (1) and (3)
deleted text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2020.
new text end

Sec. 29.

Minnesota Statutes 2017 Supplement, 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 deleted text beginApril 30deleted text endnew text begin May 1new text end of the year in
which the tax becomes payable. A petition for determination under this section may be
transferred by the district court to the Tax Court. An appeal may also be taken to the Tax
Court under chapter 271 at any time following receipt of the valuation notice that county
assessors or city assessors having the powers of a county assessor are required by section
273.121 to send to persons whose property is to be included on the assessment roll that year,
but prior to May 1 of the year in which the taxes are payable.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessments in 2020.
new text end

Sec. 30.

Minnesota Statutes 2017 Supplement, 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 2hnew text begin or 2knew text end, that is first payable in
the year that the property tax is payable. In the case of a claimant who makes ground lease
payments, "property taxes payable" includes the amount of the payments directly attributable
to the property taxes assessed against the parcel on which the house is located. Regardless
of the limitations in section 280A(c)(5) of the Internal Revenue Code, "property taxes
payable" must be apportioned or reduced for the use of a portion of the claimant's homestead
for a business purpose if the claimant deducts any business depreciation expenses for the
use of a portion of the homestead or deducts expenses under section 280A of the Internal
Revenue Code for a business operated in the claimant's homestead. For homesteads which
are manufactured homes as defined in section 273.125, subdivision 8, deleted text beginand for homesteads
which are
deleted text endnew 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 based on taxes
payable in 2020.
new text end

Sec. 31.

Minnesota Statutes 2016, section 290A.04, subdivision 2h, is amended to read:


Subd. 2h.

Additional refund.

(a) If the gross property taxes payable on a homesteadnew text begin,
net of any refund under subdivision 2k,
new text end increase more than 12 percent over the property
taxes payable in the prior year on the same property that is owned and occupied by the same
owner on January 2 of both years, and the amount of that increase is $100 or more, a claimant
who is a homeowner shall be allowed an additional refund equal to 60 percent of the amount
of the increase over the greater of 12 percent of the prior year's property taxes payable or
$100. This subdivision shall not apply to any increase in the gross property taxes payable
attributable to improvements made to the homestead after the assessment date for the prior
year's taxes. This subdivision shall not apply to any increase in the gross property taxes
payable attributable to the termination of valuation exclusions under section 273.11,
subdivision 16
.

The maximum refund allowed under this subdivision is $1,000.

(b) For purposes of this subdivision "gross property taxes payable" means property taxes
payable determined without regard to the refund allowed under this subdivision.

(c) In addition to the other proofs required by this chapter, each claimant under this
subdivision shall file with the property tax refund return a copy of the property tax statement
for taxes payable in the preceding year or other documents required by the commissioner.

(d) Upon request, the appropriate county official shall make available the names and
addresses of the property taxpayers who may be eligible for the additional property tax
refund under this section. The information shall be provided on a magnetic computer disk.
The county may recover its costs by charging the person requesting the information the
reasonable cost for preparing the data. The information may not be used for any purpose
other than for notifying the homeowner of potential eligibility and assisting the homeowner,
without charge, in preparing a refund claim.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with claims based on taxes
payable in 2020.
new text end

Sec. 32.

Minnesota Statutes 2016, section 290A.04, is amended by adding a subdivision
to read:


new text begin Subd. 2k. new text end

new text begin Additional refund for homeowners who are blind or disabled. new text end

new text begin (a) A
homeowner who is blind or disabled or whose spouse is blind or disabled is eligible for an
additional refund equal to 0.9 percent of the property's taxable market value, but not to
exceed $425. For the purposes of this subdivision, "blind or disabled" means a person who
is:
new text end

new text begin (1) blind as defined in section 256D.35;
new text end

new text begin (2) permanently and totally disabled; or
new text end

new text begin (3) the surviving spouse of a veteran who was permanently and totally disabled and who
homesteaded a property classified 1b under Minnesota Statutes 2016, section 273.13,
subdivision 22, for taxes payable in 2008, provided that the surviving spouse continues to
homestead the same property as in 2008.
new text end

new text begin (b) A person qualifies under paragraph (a), clause (2), only if the government agency
or income-providing source certifies that the person satisfies the disability requirements of
paragraph (d). An owner of property qualifying for the valuation exclusion under section
273.13, subdivision 34, is not eligible for the credit under this subdivision.
new text end

new text begin (c) The commissioner of revenue may require an applicant who has not previously
received a refund under this subdivision to submit whatever documentation is required to
determine eligibility under this subdivision. The application and any supplementary
information received from the property owner pursuant to this subdivision shall be subject
to chapter 270B. An applicant who has previously received refunds under this subdivision
is not required to submit proof of eligibility, except that the applicant may be required to
affirmatively state that no change in eligibility status has occurred.
new text end

new text begin (d) "Permanently and totally disabled" for the purpose of this subdivision means a
condition that is permanent in nature and totally incapacitates the person from working at
an occupation that brings the person an income.
new text end

new text begin (e) An applicant whose homestead qualified for class 1b under Minnesota Statutes 2016,
section 273.13, subdivision 22, for assessment year 2017 due to the applicant's disability is
automatically eligible for a refund under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with claims based on taxes
payable in 2020.
new text end

Sec. 33.

Minnesota Statutes 2016, section 473F.02, subdivision 4, is amended to read:


Subd. 4.

Residential property.

"Residential property" means the following categories
of property, as defined in section 273.13, excluding that portion of such property exempt
from taxation pursuant to section 272.02:

deleted text begin (a)deleted text endnew text begin (1)new text end class 1, deleted text begin1b, 2a,deleted text end 4a, deleted text begin4b, 4c,deleted text end and deleted text begin4ddeleted text endnew text begin 4inew text end property deleted text beginexcept resorts and property classified
under section 273.13, subdivision 25, paragraph (d), clause (3)
deleted text end; and

deleted text begin (b)deleted text endnew text begin (2)new text end that portion of class 3a, 3b, and 5 property used exclusively for residential
occupancy.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2020.
new text end

Sec. 34.

Minnesota Statutes 2016, section 473F.05, is amended to read:


473F.05 NET TAX CAPACITY.

On or before August deleted text begin5deleted text endnew text begin 1new text end of each year, the assessors within each county in the area shall
determine and certify to the county auditor the net tax capacity in that year of
commercial-industrial property subject to taxation within each municipality in the county,
determined without regard to section 469.177, subdivision 3.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessments in 2020.
new text end

Sec. 35.

Minnesota Statutes 2016, section 473H.05, subdivision 1, is amended to read:


Subdivision 1.

Before deleted text beginJunedeleted text endnew text begin Maynew text end 1 for next year's taxes.

An owner or owners of certified
long-term agricultural land may apply to the authority with jurisdiction over the land on
forms provided by the commissioner of agriculture for the creation of an agricultural preserve
at any time. Land for which application is received prior to deleted text beginJunedeleted text endnew text begin Maynew text end 1 of any year shall
be assessed pursuant to section 473H.10 for taxes payable in the following year. Land for
which application is received on or after deleted text beginJunedeleted text endnew text begin Maynew text end 1 of any year shall be assessed pursuant
to section 473H.10 in the following year. The application shall be executed and acknowledged
in the manner required by law to execute and acknowledge a deed and shall contain at least
the following information and such other information as the commissioner deems necessary:

(a) Legal description of the area proposed to be designated and parcel identification
numbers if so designated by the county auditor and the certificate of title number if the land
is registered;

(b) Name and address of owner;

(c) An affidavit by the authority evidencing that the land is certified long-term agricultural
land at the date of application;

(d) A statement by the owner covenanting that the land shall be kept in agricultural use,
and shall be used in accordance with the provisions of sections 473H.02 to 473H.17 which
exist on the date of application and providing that the restrictive covenant shall be binding
on the owner or the owner's successor or assignee, and shall run with the land.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessments in 2020.
new text end

Sec. 36. new text beginGRACE PERIOD; TAXPAYER NOTICE.
new text end

new text begin Subdivision 1. new text end

new text begin Benefit loss; due dates. new text end

new text begin For the first year in which sections 3, 4, 5, 6, 8,
11, 15, 16, 18, 24, 25, 27, 29, 33, 34, and 35 are effective, no property tax benefit,
classification, or deferment may lapse, be denied, or terminate solely because an application,
notification, request, or filing is not provided or made by the required due date, provided
that the application, notification, request, or filing would have been provided or made by
the required due date in effect for the immediately preceding calendar year.
new text end

new text begin Subd. 2. new text end

new text begin Commissioner to provide notice. new text end

new text begin By July 1, 2019, the commissioner of revenue
must develop and implement a plan to notify all taxing jurisdictions, property owners, and
taxpayers affected by the due date changes in sections 3, 4, 5, 6, 8, 11, 15, 16, 18, 24, 25,
27, 29, 33, 35, and 36 of the new due dates that are effective beginning the following year.
The commissioner may consult with each county in the state in developing the plan, and
may request from a county data and other assistance that the commissioner deems necessary
to administer this subdivision but may not delegate taxpayer notification responsibilities to
a county.
new text end

Sec. 37. new text beginSCHOOL PROPERTY TAX REFORM.
new text end

new text begin (a) A school property tax working group is established as provided in this section. The
goals of the working group are to develop one or more legislative proposals for reform of
Minnesota's property tax system that would:
new text end

new text begin (1) evaluate the farmland tax burden from the costs of school capital investments;
new text end

new text begin (2) simplify the tax system used for school district levies;
new text end

new text begin (3) coordinate interactions with the state general levy; and
new text end

new text begin (4) accomplish the objectives of this paragraph with optimal levels of state aid and local
property tax.
new text end

new text begin (b) The 16-member working group shall consist of the following members:
new text end

new text begin (1) two state representatives, both appointed by the chair of the house of representatives
Taxes Committee, one from the majority party and one from the largest minority party;
new text end

new text begin (2) two state representatives, both appointed by the chair of the house of representatives
Education Finance Committee, one from the majority party and one from the largest minority
party;
new text end

new text begin (3) four senators appointed by the Subcommittee on Committees of the Senate Rules
and Administration Committee, two from the majority party and two from the largest
minority party;
new text end

new text begin (4) one person appointed by the Minnesota School Boards Association;
new text end

new text begin (5) one person appointed by the Minnesota Rural Education Association;
new text end

new text begin (6) one person appointed by the Association of Metropolitan School Districts;
new text end

new text begin (7) one person appointed by Schools for Equity in Education;
new text end

new text begin (8) one person appointed by the Minnesota Farm Bureau;
new text end

new text begin (9) one person appointed by the Minnesota Farmers Union;
new text end

new text begin (10) one person appointed by the Minnesota Chamber of Commerce; and
new text end

new text begin (11) one person appointed by Minnesota Lakes and Rivers Advocates.
new text end

new text begin (c) The commissioner of revenue and the commissioner of education, or their designees,
shall serve as ex-officio members of the working group.
new text end

new text begin (d) All appointments must be made before July 1, 2018. The majority party appointee
of the house of representatives Taxes Committee chair shall chair the initial meeting, and
the working group shall elect a chair at that initial meeting. The working group will meet
at the call of the chair. Members of the working group shall serve without compensation.
The commissioner of revenue must provide administrative support to the working group.
Minnesota Statutes, chapter 13D, does not apply to meetings of the working group. Meetings
of the working group must be open to the public and the working group must provide notice
of a meeting to potentially interested persons at least five days before the meeting. A meeting
of the working group occurs when a quorum is present.
new text end

new text begin (e) The working group shall make its advisory recommendations to the chairs of the
house of representatives and senate Taxes and Education Finance Committees on or before
January 1, 2019, at which time the working group shall be finished and this section expires.
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. 38. new text beginREVISOR'S INSTRUCTION.
new text end

new text begin In Minnesota Statutes and Minnesota Rules, the revisor of statutes shall make
cross-reference changes that are needed as a result of the repealers in this article. The revisor
shall make any necessary technical and grammatical changes to preserve the meaning of
the text.
new text end

Sec. 39. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2016, section 273.1315, new text end new text begin is repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2017 Supplement, sections 327C.01, subdivision 13; and 327C.16, new text end new text begin
are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2020.
new text end

ARTICLE 6

AIDS AND CREDITS

Section 1.

Minnesota Statutes 2016, section 290B.04, subdivision 1, is amended to read:


Subdivision 1.

Initial application.

(a) A taxpayer meeting the program qualifications
under section 290B.03 may apply to the commissioner of revenue for the deferral of taxes.
Applications are due on or before deleted text beginJulydeleted text endnew text begin Novembernew text end 1 for deferral of any of the following
year's property taxes. new text beginA taxpayer may preapply for an early notification of approval or denial
at any time. The commissioner must notify a taxpayer in writing of the reasons for an
application denial and that the application may be amended and resubmitted by the due date
specified in this subdivision.
new text endA taxpayer may apply in the year in which the taxpayer becomes
65 years old, provided that no deferral of property taxes will be made until the calendar
year after the taxpayer becomes 65 years old. The application, which shall be prescribed
by the commissioner of revenue, shall include the following items and any other information
which the commissioner deems necessary:

(1) the name, address, and Social Security number of the owner or owners;

(2) a copy of the property tax statement for the current payable year for the homesteaded
property;

(3) the initial year of ownership and occupancy as a homestead;

(4) the owner's household income for the previous calendar year; and

(5) information on any mortgage loans or other amounts secured by mortgages or other
liens against the property, for which purpose the commissioner may require the applicant
to provide a copy of the mortgage note, the mortgage, or a statement of the balance owing
on the mortgage loan provided by the mortgage holder. The commissioner may require the
appropriate documents in connection with obtaining and confirming information on unpaid
amounts secured by other liens.

The application must state that program participation is voluntary. The application must
also state that the deferred amount depends directly on the applicant's household income,
and that program participation includes authorization for the annual deferred amount, the
cumulative deferral and interest that appear on each year's notice prepared by the county
under subdivision 6, is public data.

The application must state that program participants may claim the property tax refund
based on the full amount of property taxes eligible for the refund, including any deferred
amounts. The application must also state that property tax refunds will be used to offset any
deferral and interest under this program, and that any other amounts subject to revenue
recapture under section 270A.03, subdivision 7, will also be used to offset any deferral and
interest under this program.

(b) As part of the initial application process, the commissioner may require the applicant
to obtain at the applicant's own cost and submit:

(1) if the property is registered property under chapter 508 or 508A, a copy of the original
certificate of title in the possession of the county registrar of titles (sometimes referred to
as "condition of register"); or

(2) if the property is abstract property, a report prepared by a licensed abstracter showing
the last deed and any unsatisfied mortgages, liens, judgments, and state and federal tax lien
notices which were recorded on or after the date of that last deed with respect to the property
or to the applicant.

The certificate or report under clauses (1) and (2) need not include references to any
documents filed or recorded more than 40 years prior to the date of the certification or report.
The certification or report must be as of a date not more than 30 days prior to submission
of the application.

The commissioner may also require the county recorder or county registrar of the county
where the property is located to provide copies of recorded documents related to the applicant
or the property, for which the recorder or registrar shall not charge a fee. The commissioner
may use any information available to determine or verify eligibility under this section. The
household income from the application is private data on individuals as defined in section
13.02, subdivision 12.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessments in 2020.
new text end

Sec. 2.

Minnesota Statutes 2016, section 477A.013, subdivision 13, is amended to read:


Subd. 13.

Certified aid adjustments.

deleted text begin (a) A city that received an aid base increase under
Minnesota Statutes 2012, section 477A.011, subdivision 36, paragraph (e), shall have its
total aid under subdivision 9 increased by an amount equal to $150,000 for aids payable in
2014 through 2018.
deleted text end

deleted text begin (b)deleted text endnew text begin (a)new text end A city that received an aid base increase under new text beginMinnesota Statutes 2012, new text endsection
477A.011, subdivision 36, paragraph (r), shall have its total aid under subdivision 9 increased
by an amount equal to $160,000 for aids payable in 2014 and thereafter.

deleted text begin (c) A city that received a temporary aid increase under Minnesota Statutes 2012, section
477A.011, subdivision 36, paragraph (o), shall have its total aid under subdivision 9 increased
by an amount equal to $1,000,000 for aids payable in 2014 only.
deleted text end

new text begin (b) For aids payable in 2019 only, a city shall have its total aid under subdivision 9
increased by an amount equal to its aid decrease between aids payable in 2016 and 2017 if:
new text end

new text begin (1) the city's aid decreased by more than $50,000 between aids payable in 2016 and
2017 under this section; and
new text end

new text begin (2) the city's unmet need amount calculated for aids payable in 2017 exceeded its aids
payable in 2016.
new text end

new text begin (c) The city of Lilydale shall have its total aid under subdivision 9 increased by $150,000
for aids payable in 2019 only.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2019.
new text end

Sec. 3.

Minnesota Statutes 2017 Supplement, section 477A.015, is amended to read:


477A.015 PAYMENT DATES.

(a) The commissioner of revenue shall make the payments of local government aid to
affected taxing authorities in two installments on July 20 and December 26 annually.

(b) Notwithstanding paragraph (a), for aids payable in 2019 only, the commissioner of
revenue shall make payments of the aid payable under section 477A.013, subdivision 9, in
three installments as follows: (1) deleted text begin14.6deleted text endnew text begin 17.2186new text end percent of the aid shall be paid on June 15,
2019; (2) deleted text begin35.4deleted text endnew text begin 32.7814new text end percent of the aid shall be paid on July 20, 2019; and (3) 50 percent
of the aid shall be paid on December 26, 2019.

(c) When the commissioner of public safety determines that a local government has
suffered financial hardship due to a natural disaster, the commissioner of public safety shall
notify the commissioner of revenue, who shall make payments of aids under sections
477A.011 to 477A.014, which are otherwise due on December 26, as soon as is practical
after the determination is made but not before July 20.

(d) The commissioner may pay all or part of the payments of aids under sections
477A.011 to 477A.014, which are due on December 26 at any time after August 15 if a
local government requests such payment as being necessary for meeting its cash flow needs.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2019.
new text end

Sec. 4.

Minnesota Statutes 2016, section 477A.016, is amended to read:


477A.016 NEW TAXES PROHIBITED.

new text begin (a) new text endNo county, city, town or other taxing authority shall increase a present tax or impose
a new tax on sales or income.

new text begin (b) No county, city, town, or other taxing authority shall increase a present excise tax
or fee or impose a new excise tax or fee on either:
new text end

new text begin (1) the manufacture, distribution, wholesale, or retail sale of food, based on volume of
product sold, product sales value, or the type of product manufactured, distributed, or sold;
or
new text end

new text begin (2) any container used for transporting, protecting, or consuming food.
new text end

new text begin (c) For purposes of this section:
new text end

new text begin (1) "food" has the meaning given in section 34A.01, subdivision 4; and
new text end

new text begin (2) "container" means a bottle, cup, can, bag, or other packaging that is made from
plastic, aluminum, glass, cardboard, or other material.
new text end

new text begin (d) This section does not apply to reasonable license fees lawfully imposed by a county,
city, town, or other licensing authority in the exercise of its regulatory authority to license
a trade, profession, or business.
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 2017 Supplement, section 477A.03, subdivision 2a, is amended
to read:


Subd. 2a.

Cities.

For aids payable in 2016 and 2017, the total aid paid under section
477A.013, subdivision 9, is $519,398,012. For aids payable in 2018new text begin, 2020,new text end and thereafter,
the total aid paid under section 477A.013, subdivision 9, is $534,398,012.new text begin For aids payable
in 2019 only, the total aid paid under section 477A.013, subdivision 9, is $534,645,272.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2019
and thereafter.
new text end

Sec. 6. new text beginLAKE 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 2018, 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, 2018, 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 any two
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 2018.
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, 2019, 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, 2019, 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, 2019, 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, 2019,
Mille Lacs County must transfer an amount equal to the amount certified under this paragraph
to the county making the certification. By April 30, 2019, 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 2019 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, 2020. 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 2018 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. 7. 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 7

REFERENDUM

Section 1.

Minnesota Statutes 2017 Supplement, 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 deliver by 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, 2018, and applies to any
referendum authorized on or after that date.
new text end

Sec. 2.

Minnesota Statutes 2017 Supplement, section 205.10, subdivision 3a, is amended
to read:


Subd. 3a.

Uniform election dates.

(a) Except as deleted text beginallowed in paragraphdeleted text end new text beginprovided in
paragraphs
new text end(b) new text beginand (c) new text endand subdivision 4, a special election held in a city or town must be
held on one of the following dates: the second Tuesday in February, the second Tuesday in
April, the second Tuesday in May, the second Tuesday in August, or the first Tuesday after
the first Monday in November. A home rule charter city must not designate additional dates
in its charter.

(b) A special election may be held on a date other than those designated in paragraph
(a) if the special election is held in response to an emergency or disaster. "Emergency"
means an unforeseen combination of circumstances that calls for immediate action to prevent
a disaster from developing or occurring. "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.

new text begin (c) Except as provided in paragraph (b), a referendum or reverse referendum held by a
city or town related to (1) imposing or modifying a levy, (2) issuing bonds, certificates of
indebtedness, or capital notes, or (3) purchasing real property, must only be held on the first
Tuesday after the first Monday in November.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2018, and applies to any
referendum authorized on or after that date.
new text end

Sec. 3.

Minnesota Statutes 2017 Supplement, section 205A.05, subdivision 1a, is amended
to read:


Subd. 1a.

Uniform election dates.

(a) Except as deleted text beginallowed in paragraphdeleted text endnew text begin provided in
paragraphs
new text end (b)new text begin and (c)new text end, a special election held in a school district must be held on one of
the following dates: the second Tuesday in February, the second Tuesday in April, the
second Tuesday in May, the second Tuesday in August, or the first Tuesday after the first
Monday in November.

(b) A special election may be held on a date other than those designated in paragraph
(a) if the special election is held in response to an emergency or disaster. "Emergency"
means an unforeseen combination of circumstances that calls for immediate action to prevent
a disaster from developing or occurring. "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.

new text begin (c) Except as provided in paragraph (b), a referendum or reverse referendum held by a
school district related to (1) imposing or modifying a levy, (2) issuing bonds, certificates
of indebtedness, or capital notes, or (3) purchasing real property, must only be held on the
first Tuesday after the first Monday in November.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2018, and applies to any
referendum authorized on or after that date.
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, 2018, 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, 2018, and by its terms and the ordinance authorizing it, will be in effect after
August 1, 2023, 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, 2023.
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, 2018.
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 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 begina generaldeleted text endnew text begin annew text end election deleted text beginor a special election called for
that purpose
deleted text endnew 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, 2018, and applies to any
referendum authorized on or after that date.
new text end

Sec. 6.

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 begina regular or specialdeleted text end new text beginan new text endelectionnew 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, 2018, and applies to any
referendum authorized on or after that date.
new text end

Sec. 7.

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to qualified leases entered into after July 1, 2018.
new text end

Sec. 8.

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 endnew text begin annew text end election deleted text beginor special election called for that purposedeleted text endnew 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, 2018, and applies to any
referendum authorized on or after that date.
new text end

Sec. 9.

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 begina general or specialdeleted text endnew 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, 2018, and applies to any
referendum authorized on or after that date.
new text end

Sec. 10.

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 begina general
or special
deleted text endnew 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, 2018, and applies to any
referendum authorized on or after that date.
new text end

Sec. 11.

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 begina general or specialdeleted text endnew 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, 2018, and applies to any
referendum authorized on or after that date.
new text end

Sec. 12.

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 begina general or specialdeleted text endnew 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, 2018, and applies to any
referendum authorized on or after that date.
new text end

Sec. 13.

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 begina general or specialdeleted text endnew 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, 2018, and applies to any
referendum authorized on or after that date.
new text end

Sec. 14.

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 begingeneraldeleted text end city election deleted text beginor at a special election
called for that purpose,
deleted text endnew 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 beginhas new text endbeen 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, 2018, and applies to any
referendum authorized on or after that date.
new text end

Sec. 15.

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 begina general or specialdeleted text endnew text begin annew text end election held deleted text beginthereindeleted text endnew 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, 2018, and applies to any
referendum authorized on or after that date.
new text end

Sec. 16.

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 begina general or specialdeleted text endnew 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, 2018, and applies to any
referendum authorized on or after that date.
new text end

Sec. 17.

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 beginor 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, 2018, and applies to any
referendum authorized on or after that date.
new text end

Sec. 18.

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 begina general or specialdeleted text endnew 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, 2018, and applies to any
referendum authorized on or after that date.
new text end

Sec. 19.

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 beginany regular or specialdeleted text end new text beginan new text endelectionnew 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, 2018, and applies to any
referendum authorized on or after that date.
new text end

Sec. 20.

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 begingeneral 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, 2018, and applies to any
referendum authorized on or after that date.
new text end

Sec. 21.

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 begina regular or specialdeleted text endnew 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, 2018, and applies to any
referendum authorized on or after that date.
new text end

Sec. 22.

Minnesota Statutes 2017 Supplement, section 475.59, subdivision 2, is amended
to read:


Subd. 2.

Election date.

An election to approve issuance of bonds under this section held
by a municipality or school district must be held on a date authorized in section 205.10,
subdivision 3a, or 205A.05, subdivision 1a.new text begin 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 EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2018, and applies to any
referendum authorized on or after that date.
new text end

ARTICLE 8

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:
new text end

new text begin (1) funds obtained from contributions, grants, or other voluntary payments made by
nongovernmental entities from private sources; or
new text end

new text begin (2) amounts specifically appropriated for a project or costs subject to paragraph (a), but
only after enactment of a law that explicitly adds the project for which the expenditures are
made to the statewide freight and passenger rail plan under section 174.03, subdivision 1b.
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 174.03, subdivision 1b, is amended to read:


Subd. 1b.

Statewide freight and passenger rail plan.

(a) The commissioner shall
develop a comprehensive statewide freight and passenger rail plan to be included and revised
as a part of the statewidenew text begin multimodalnew text end transportation plan.

(b) deleted text beginBefore the initial version of the plan is adopted, the commissioner shall provide a
copy for review and comment to the chairs and ranking minority members of the senate and
house of representatives committees with jurisdiction over transportation policy and finance.
Notwithstanding paragraph (a), the commissioner may adopt the next revision of the statewide
transportation plan, scheduled to be completed in calendar year 2009, prior to completion
of the initial version of the comprehensive statewide freight and passenger rail plan.
deleted text endnew text begin The
statewide freight and passenger rail plan must not include prioritization, planning, or
references, other than references for historical purposes, to intercity passenger rail 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. Before February 1, 2019, the commissioner
shall revise the statewide freight and passenger rail plan to meet the requirements of this
paragraph.
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 197.603, subdivision 2, is amended to read:


Subd. 2.

Records; data privacy.

Pursuant to chapter 13 the county veterans service
officer is the responsible authority with respect to all records in the officer's custody. The
data on clients' applications for assistance is private data on individuals, as defined in section
13.02, subdivision 12.new text begin The county veterans service officer may disclose to the county assessor
private data necessary to determine a client's eligibility for the disabled veteran's homestead
market value exclusion under section 273.13, subdivision 34.
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.

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 federal 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 federal 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 federal 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. 7.

Minnesota Statutes 2016, section 270A.03, subdivision 7, is amended to read:


Subd. 7.

Refund.

"Refund" means an individual income tax refund deleted text beginor political
contribution refund,
deleted text end pursuant to chapter 290, deleted text beginordeleted 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, 2018.
new text end

Sec. 8.

Minnesota Statutes 2016, section 273.1245, subdivision 2, is amended to read:


Subd. 2.

Disclosure.

The assessor shall disclose the data described in subdivision 1 to
the commissioner of revenue as provided by law. The assessor shall also disclose all or
portions of the data described in subdivision 1 tonew text begin:
new text end

new text begin (1)new text end the county treasurer solely for the purpose of proceeding under the Revenue Recapture
Act to recover personal property taxes owingdeleted text begin.deleted text endnew text begin; and
new text end

new text begin (2) the county veterans service officer for the purpose of determining a person's eligibility
for the disabled veteran's homestead market value exclusion under section 273.13, subdivision
34.
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 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 beginThe 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, 2018.
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 beginFor 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, 2018.
new text end

Sec. 11.

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 Hennepin County. new text end

new text begin (a) Upon submission of a resolution adopted by the city
board to the Hennepin County Board, Hennepin County must remit to the city 50 percent
of the tax revenue collected under subdivision 1 within the boundaries of the city. The
payment to the city must be made at least annually. Notwithstanding subdivision 2, the city
must use the tax proceeds to plan, engineer, and construct improvements to county highways
and bridges within the boundaries of the city. Two or more cities may enter into a joint
powers agreement to jointly use the funds received by the cities on a project within the
boundaries of the joint powers agreement's member cities. For a city located partially in
Hennepin County, the city must use the tax proceeds on projects located within the portion
of the city that is within Hennepin County boundaries.
new text end

new text begin (b) For purposes of this subdivision, "city" means a home rule charter or statutory city
that:
new text end

new text begin (1) is located wholly or partially within Hennepin County;
new text end

new text begin (2) has a population of 60,000 or greater; and
new text end

new text begin (3) does not have within the city boundaries a current light rail transit line or a light rail
transit line in planning or development.
new text end

new text begin (c) This section expires on July 1, 2038, or when the tax under subdivision 2 is terminated,
whichever is earlier.
new text end

Sec. 12.

Minnesota Statutes 2016, section 298.225, subdivision 1, is amended to read:


Subdivision 1.

Guaranteed distribution.

(a) new text beginExcept 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 2019 and thereafter.
new text end

Sec. 13.

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 2019 and thereafter.
new text end

Sec. 14.

Minnesota Statutes 2016, section 360.013, is amended by adding a subdivision
to read:


new text begin Subd. 62. new text end

new text begin Unmanned aircraft. new text end

new text begin "Unmanned aircraft" means an aircraft, as defined in
subdivision 37, that is operated without the possibility of human intervention from within
or on the aircraft.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2018.
new text end

Sec. 15.

Minnesota Statutes 2016, section 360.013, is amended by adding a subdivision
to read:


new text begin Subd. 63. new text end

new text begin Unmanned aircraft system. new text end

new text begin "Unmanned aircraft system" means an unmanned
aircraft and all of its associated elements, including components and communication links,
that are required to control and operate the aircraft.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2018.
new text end

Sec. 16.

Minnesota Statutes 2016, section 360.55, is amended by adding a subdivision to
read:


new text begin Subd. 9. new text end

new text begin Unmanned aircraft systems. new text end

new text begin (a) Any unmanned aircraft system in which the
unmanned aircraft weighs less than 55 pounds at takeoff, including payload and anything
affixed to the aircraft, either:
new text end

new text begin (1) must be registered in the state for an annual fee of $25; or
new text end

new text begin (2) is not subject to registration or an annual fee if the unmanned aircraft system is owned
and operated solely for recreational purposes.
new text end

new text begin (b) An unmanned aircraft system that meets the requirements under paragraph (a) is
exempt from aircraft registration tax under sections 360.511 to 360.67.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2018.
new text end

Sec. 17.

Minnesota Statutes 2016, section 360.62, is amended to read:


360.62 TAX REFUND.

Except as provided herein the tax upon any aircraft which has been paid for any year,
shall be refunded only for errors made in computing the tax or fees or for the error on the
part of an owner who may in error have registered an aircraft that was not before, nor at the
time of such registration, nor at any time thereafter during the tax period, subject to such
tax in this state; provided that after more than 24 months after such tax was paid no refund
shall be made for any tax paid on any aircraft. Refunds as provided by sections 360.511 to
360.67 shall be made in the manner provided by Laws 1947, chapter 416. The former owner
of a transferred aircraft by an assignment in writing endorsed upon the former owner's
registration certificate and delivered to the commissioner within the time provided herein
may sell and assign to the new owner thereof the right to have the tax paid by the former
owner accredited to such new owner who duly registers such aircraft. Any owner whose
aircraft deleted text beginshall bedeleted text endnew text begin isnew text end destroyed or permanently removed from the state deleted text beginshall bedeleted text endnew text begin isnew text end entitled to
a refund for the unused portion of the tax paid upon thenew text begin destroyed or removednew text end aircraft deleted text beginso
destroyed or removed from the state, such
deleted text endnew text begin. Thenew text end refund deleted text begintodeleted text endnew text begin mustnew text end be computed pro rata by the
month, and to be equal to the monthly tax rate multiplied by the number of full calendar
months remaining in the fiscal year, or multiplied by the number of full calendar months
remaining in that period between January 1, 1966, to and including June 30, 1967, whichever
period is applicable.new text begin An unmanned aircraft system that is destroyed or permanently removed
from the state is not entitled to a tax refund under this section.
new text end

In order to secure such refund, the aircraft owner shall submit a signed statement that
such aircraft has either been sold out of state or destroyed, the date of such sale or destruction,
and such other information as the commissioner may require. Any false statement willfully
and knowingly made in regard thereto shall be deemed a perjury and punished accordingly.
No refund shall be made if application is not made within 12 months after the date the
aircraft was sold out of state or destroyed.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2018.
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;
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; or
new text end

new text begin (3) expenditures made after enactment of a law that explicitly adds the intercity or
interregional passenger rail project for which the expenditures are made to the statewide
freight and passenger rail plan under section 174.03, subdivision 1b.
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 474A.02, subdivision 22b, is amended to read:


Subd. 22b.

Public facilities project.

"Public facilities project" means any publicly owned
facility, or new text begina new text endfacility deleted text beginowned by a nonprofit organizationdeleted text end that is used for district heating or
cooling, new text beginwhether publicly or privately owned, new text endthat is eligible to be financed with the proceeds
of public facilities bonds as defined under section 474A.02, subdivision 23a.

Sec. 20.

Laws 1986, chapter 379, section 1, subdivision 1, is amended to read:


Subdivision 1.

Liquor and food tax authorized.

new text begin(a) new text endNotwithstanding Minnesota Statutes,
section 477A.016, or any ordinance, city charter, or other provision of law, the city of St.
Cloud may, by ordinance, impose a sales tax supplemental to the general sales tax imposed
in Minnesota Statutes, chapter 297A, the proceeds of which shall be used in accordance
with subdivision 2. The tax imposed by the city may be not more than one percent on the
gross receipts from all retail on-sales of intoxicating liquor and fermented malt beverages
sold at licensed on-sale liquor establishments located within its geographic boundaries, or
not more than one percent on the gross receipts from the retail sale of food and beverages
not subject to the liquor tax by a restaurant or place of refreshment located within its
geographic boundaries, or both. For purposes of this act, the city shall define the terms
"restaurant" and "place of refreshment" by resolution. The governing body of the city may
adopt an ordinance establishing a convention center taxing district. The ordinance shall
describe with particularity the area within the city to be included in the district. If the city
establishes a convention center taxing district, the sales taxes authorized under this
subdivision may be imposed only upon the sales occurring at on-sale liquor establishments,
restaurants, or other places of refreshment located within the district.

new text begin (b) Notwithstanding Minnesota Statutes, section 477A.016, or any ordinance, city charter,
or other provision of law, the city of St. Cloud may, if approved by the voters at a general
election, increase by ordinance the tax allowed under paragraph (a) by up to one-half of
one percent. The election must be held before the governing body of the city considers the
ordinance. The proceeds of the increased tax must be used for remodeling, improvements,
and expansion of the Municipal Athletic Center, including making payments on any
associated bonds.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the city of St. Cloud and
its chief clerical officer timely comply with Minnesota Statutes, section 645.021.
new text end

Sec. 21.

Laws 1986, chapter 379, section 2, subdivision 1, is amended to read:


Subdivision 1.

Additional tax authorized.

new text begin(a) new text endNotwithstanding Minnesota Statutes,
section 477A.016, or any ordinance, city charter, or other provision of law, the city of St.
Cloud may, by ordinance, impose a tax at a rate not to exceed two percent in addition to
the tax authorized under Laws 1979, chapter 197, 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.

new text begin (b) Notwithstanding Minnesota Statutes, section 477A.016, the city of St. Cloud may,
if approved by the voters at a general election, increase by ordinance the tax allowed under
paragraph (a) by up to one percent. The election must be held before the governing body
of the city considers the ordinance. The proceeds of the increased tax must be used for
remodeling, improvements, and expansion of the Municipal Athletic Center, including
making payments on any associated bonds.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the city of St. Cloud and
its chief clerical officer timely comply with Minnesota Statutes, section 645.021.
new text end

Sec. 22.

Laws 2008, chapter 366, article 5, section 26, as amended by Laws 2013, chapter
143, article 9, section 11, is amended to read:


Sec. 26. BLOOMINGTON TAX INCREMENT FINANCING; FIVE-YEAR RULE.

(a) The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that
activities must be undertaken within a five-year period from the date of certification of a
tax increment financing district, are increased to a deleted text begin15deleted text endnew text begin 20new text end-year period for the Port Authority
of the City of Bloomington's Tax Increment Financing District No. 1-I, Bloomington Central
Station.

(b) Notwithstanding the provisions of Minnesota Statutes, section 469.176, or any other
law to the contrary, the city of Bloomington and its port authority may extend the duration
limits of the district for a period through December 31, 2039.

(c) Effective for taxes payable in 2014, tax increment for the district must be computed
using the current local tax rate, notwithstanding the provisions of Minnesota Statutes, section
469.177, subdivision 1a.

new text begin (d) The requirements of Minnesota Statutes, section 469.1763, subdivision 4, relating
to​ use of increments after the end of the time limit in Minnesota Statutes, section 469.1763,
subdivision 3, do not apply to the Port Authority of the City of Bloomington's Tax Increment
Financing District No. 1-I, Bloomington Central Station.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon timely compliance by the city of
Bloomington with the requirements of Minnesota Statutes, section 645.021, subdivision 3.
new text end

Sec. 23.

Laws 2011, First Special Session chapter 7, article 4, section 10, subdivision 3,
is amended to read:


Subd. 3.

Use of revenues.

new text begin(a) new text endRevenues 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 the
following projects:

(1) $4,500,000 for construction and completion of park improvement projects, including
St. Louis River riverfront improvements; Veteran's Park construction and improvements;
improvements to the Hilltop Park soccer complex and Braun Park baseball complex; capital
equipment and building and grounds improvements at the Pine Valley Park/Pine Valley
Hockey Arena/Cloquet Area Recreation Center; and development of pedestrian trails within
the city;

(2) $5,800,00 for extension of utilities and the construction of all improvements associated
with the development of property adjacent to Highway 33 and Interstate Highway 35,
including payment of all debt service on bonds issued for these; and

(3) $6,200,000 for engineering and construction of infrastructure improvements,
includingdeleted text begin, but not limited todeleted text endnew text begin roads, bridgesnew text end, storm sewer, sanitary sewer, and water in areas
identified as part of the city's comprehensive land use plan.

new text begin (b) new text endAuthorized expenses include, but are not limited to, acquiring property and paying
construction expenses related to these improvements, and paying debt service on bonds or
other obligations issued to finance acquisition and construction of these improvements.

new text begin (c) Notwithstanding the revenue allocations in paragraph (a), clause (3), if the amount
spent for the improvements under paragraph (a), clause (2), are less than the $5,800,000
allowed under that clause, the total amount spent for the purpose listed in paragraph (a),
clause (3), may be increased by the difference between $5,800,000 and the amount actually
spent under paragraph (a), clause (2). However, the total expenditures for projects under
this subdivision may not exceed $16,500,000, excluding any costs related to issuance of
bonds under subdivision 4.
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 Cloquet and its chief clerical officer comply with the provisions of Minnesota Statutes,
section 645.021, subdivisions 2 and 3.
new text end

Sec. 24.

Laws 2017, First Special Session chapter 1, article 10, section 4, the effective
date, is amended to read:


EFFECTIVE DATE; APPLICATION.

This section is effective for applications new text beginand
certifications
new text endmade in 2018 and thereafter, except the repeal of the exclusion of land under
item (iii) is effective retroactively for payments due under Minnesota Statutes, section
290C.08, beginning for payments due to be made in 2014. In order to qualify for retroactive
payments, the following requirements must be met: (1) the owner of land exceeding 60,000
acres that is subject to a single conservation easement funded under Minnesota Statutes,
section 97A.056 or a comparable permanent easement conveyed to a governmental or
nonprofit entity, must submit an application to the commissioner of revenue, in a form and
manner and at a time acceptable to the commissioner, establishing that the affected property
and its use met the requirement of Minnesota Statutes, chapter 290C, as amended by this
section; (2) the owner and each county in which the land is located must certify to the
commissioner that no petitions challenging the market value of the property are pending
under Minnesota Statutes, chapter 278; and (3) the requirements of clauses (1) and (2) must
be satisfied by October 1, 2017. No interest accrues on payment under this section for
periods before November 1, 2017.

Sec. 25. new text beginCITY OF MINNEAPOLIS; UPPER HARBOR TERMINAL
REDEVELOPMENT PROJECT.
new text end

new text begin Subdivision 1. new text end

new text begin Qualifying rules. new text end

new text begin Notwithstanding the criteria in Minnesota Statutes,
section 469.174, subdivision 10, the governing body of the city of Minneapolis may establish
by resolution one or more redevelopment tax increment financing districts within that portion
of the North Washington Industrial Park Redevelopment Project Area as its boundaries
existed on January 1, 2018, located north of Lowry Avenue. In each resolution, the city
must find that each parcel in the district was part of property that was formerly used as a
municipally owned intermodal barge shipping facility that can no longer be used for such
purpose due to the closure of the Upper St. Anthony Falls Lock under the federal Water
Resources Reform and Development Act of 2014. Except as provided in this section, the
provisions of Minnesota Statutes, sections 469.174 to 469.1794, apply to each district created
under this section.
new text end

new text begin Subd. 2. new text end

new text begin Use of increments. new text end

new text begin Minnesota Statutes, section 469.176, subdivision 4j, does
not apply to any district established under this section.
new text end

new text begin Subd. 3. new text end

new text begin Five-year rule. new text end

new text begin The five-year period under Minnesota Statutes, section 469.1763,
subdivision 3, is extended to ten years for any district established under this section.
new text end

new text begin Subd. 4. new text end

new text begin Pooling authority. new text end

new text begin Notwithstanding Minnesota Statutes, section 469.1763,
subdivision 2, tax increments from any district established under this section may be
expended anywhere within the portion of the project area as described in subdivision 1, on
eligible costs permitted under Minnesota Statutes, sections 469.174 to 469.1794, as amended.
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 Minneapolis and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 26. new text beginCITY OF CHAMPLIN; TAX INCREMENT FINANCING DISTRICT;
PROJECT REQUIREMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Addition of parcels to district. new text end

new text begin The governing body of the city of
Champlin may elect to apply the provisions of this section to its Mississippi Crossings tax
increment financing district.
new text end

new text begin Subd. 2. new text end

new text begin Five-year rule. new text end

new text begin The five-year rule under Minnesota Statutes, section 469.1763,
subdivision 3, is extended to a ten-year period for the Mississippi Crossings tax increment
financing district.
new text end

new text begin Subd. 3. new text end

new text begin Revenues for decertification. new text end

new text begin Minnesota Statutes, section 469.1763, subdivision
4, does not apply to the Mississippi Crossings tax increment financing district.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon compliance with Minnesota Statutes,
section 645.021, subdivisions 2 and 3.
new text end

Sec. 27. new text beginREVENUE DEPARTMENT SERVICE AND RECOVERY SPECIAL
REVENUE FUND.
new text end

new text begin $3,411,000 of the balance in the Revenue Department account in the special revenue
fund under Minnesota Statutes, section 270C.15, is transferred in fiscal year 2018 to the
general fund.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 28. new text beginAPPROPRIATION.
new text end

new text begin $5,000 in fiscal year 2019 only is appropriated from the general fund to the commissioner
of revenue for a grant of $2,600 to the city of Mazeppa and a grant of $2,400 to Wabasha
County. The grants, which shall be paid by July 20, 2018, may be used for property tax
abatements and other costs incurred by public and private entities as a result of a fire in the
city of Mazeppa on March 11, 2018. This is a onetime appropriation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2018.
new text end

Sec. 29. new text beginUNMANNED AIRCRAFT REGISTRATION TAX REFUND;
APPROPRIATION.
new text end

new text begin (a) The commissioner of transportation shall refund the tax paid for the most recent
registration period on an unmanned aircraft system under Minnesota Statutes, sections
360.531 to 360.67, to a person who:
new text end

new text begin (1) registers and pays the specified fee for the unmanned aircraft system under Minnesota
Statutes, section 360.55, subdivision 9, for the same registration period or an overlapping
registration period; or
new text end

new text begin (2) is exempt from payment of the tax under Minnesota Statutes, sections 360.531 to
360.67, and the fee under Minnesota Statutes, section 360.55, subdivision 9, as provided
under this act.
new text end

new text begin (b) An amount necessary for any refunds under paragraph (a) is appropriated in fiscal
year 2018 from the state airports fund to the commissioner of transportation for the purposes
of providing refunds.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2018.
new text end

Sec. 30. new text begin REPEALER.
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 EFFECTIVE DATE. new text end

new text begin This section is effective for contributions made on or after July
1, 2018, and refund claims filed on or after July 1, 2018.
new text end

ARTICLE 9

DEPARTMENT OF REVENUE; PROPERTY TAX; POLICY CHANGES

Section 1.

Minnesota Statutes 2016, section 162.145, subdivision 3, is amended to read:


Subd. 3.

Administration.

(a) Subject to funds made available by law, the commissioner
shall allocate all funds as provided in subdivision 4 and shall deleted text beginnotifydeleted text endnew text begin, by June 1, certify tonew text end
the commissioner of revenuenew text begin the amounts to be paidnew text end.

(b) Following deleted text beginnotificationdeleted text endnew text begin certificationnew text end from the commissioner deleted text beginof transportationdeleted text end, the
commissioner of revenue shall distribute the specified funds to cities in the same manner
as local government aid under chapter 477A. An appropriation to the commissioner deleted text beginof
transportation
deleted text end under this section is available to the commissioner of revenue for the purposes
specified in this paragraph.

(c) Notwithstanding other law to the contrary, in order to receive distributions under
this section, a city must conform to the standards in section 477A.017, subdivision 2. A city
that receives funds under this section must make and preserve records necessary to show
that the funds are spent in compliance with subdivision 4.

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. 2.

Minnesota Statutes 2016, section 270.41, subdivision 3, is amended to read:


Subd. 3.

Assessor sanctions; refusal to license.

(a) new text beginFollowing a recommendation from
the commissioner of revenue,
new text endthe board may (i) refuse to grant or renew, or may suspend
or revoke, a license of an applicant or licensee, or (ii) censure, warn, or fine any licensed
assessor, or any other person employed by an assessment jurisdiction or contracting with
an assessment jurisdiction for the purpose of valuing or classifying property for property
tax purposes, for any of the following causes or acts:

(1) failure to complete required training;

(2) inefficiency or neglect of duty;

(3) failure to comply with the Code of Conduct and Ethics for Licensed Minnesota
Assessors adopted by the board pursuant to Laws 2005, First Special Session chapter 3,
article 1, section 38;

(4) conviction of a crime involving moral turpitude;

(5) failure to faithfully and fully perform his or her duties through malfeasance,
misfeasance, or nonfeasance; or

(6) any other cause or act that in the board's opinion warrants a refusal to issue a license
or the imposition of a sanction provided under this subdivision.

(b) When appropriate for the level of infraction, a written warning must be given to
assessors who have no prior identified infractions. The warning must identify the infraction
and, as appropriate, detail future expectations of performance and behavior. Fines must not
exceed $1,000 for the first occurrence and must not exceed $3,000 for each occurrence
thereafter, and suspensions must not exceed one year for each occurrence, depending in
each case upon the severity of the infraction and the level of negligence or intent. new text beginThe
commissioner of revenue shall give notice to an applicant or licensee of the commissioner's
recommendation that the board impose sanctions or refuse to grant or renew a license.
new text endAn
action by the board to impose a deleted text beginsanctiondeleted text endnew text begin fine, to suspend or revoke a license, or to refuse
to grant or renew a license
new text end is subject to review in a contested case hearing under chapter
14.new text begin A licensee must submit a request for a hearing to the board within 30 days of the notice
date of the commissioner's recommendation for sanctions or for refusal to grant or renew
a license.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sanctions or refusals to grant or renew
a license recommended by the commissioner of revenue after June 30, 2018.
new text end

Sec. 3.

Minnesota Statutes 2017 Supplement, section 272.115, subdivision 1, is amended
to read:


Subdivision 1.

Requirement.

Except as otherwise provided in subdivision 5, 6, or 7,
whenever any real estate is sold for a consideration in excess of deleted text begin$1,000deleted text endnew text begin $3,000new 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 administrative 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 federal 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 EFFECTIVE DATE. new text end

new text begin This section is effective for certificates of value filed after
December 31, 2018.
new text end

Sec. 4.

Minnesota Statutes 2016, section 287.21, subdivision 1, is amended to read:


Subdivision 1.

Determination of tax.

(a) A tax is imposed on each deed or instrument
by which any real property in this state is granted, assigned, transferred, or otherwise
conveyed. The tax applies against the net consideration. For purposes of the tax, the
conversion of a corporation to a limited liability company, a limited liability company to a
corporation, a partnership to a limited partnership, a limited partnership to another limited
partnership or other entity, or a similar conversion of one entity to another does not grant,
assign, transfer, or convey real property.

(b) The tax is determined in the following manner: (1) when transfers are made by
instruments pursuant to (i) consolidations or mergers, or (ii) designated transfers, the tax is
$1.65; (2) when there is no consideration or when the consideration, exclusive of the value
of any lien or encumbrance remaining thereon at the time of sale, is deleted text begin$500deleted text endnew text begin $3,000new text end or less,
the tax is $1.65; or (3) when the consideration, exclusive of the value of any lien or
encumbrance remaining at the time of sale, exceeds deleted text begin$500deleted text endnew text begin $3,000new text end, the tax is .0033 of the net
consideration.

(c) If, within six months from the date of a designated transfer, an ownership interest in
the grantee entity is transferred by an initial owner to any person or entity with the result
that the designated transfer would not have been a designated transfer if made to the grantee
entity with its subsequent ownership, then a tax is imposed at .0033 of the net consideration
for the designated transfer. If the subsequent transfer of ownership interests was reasonably
expected at the time of the designated transfer, the applicable penalty under section 287.31,
subdivision 1
, must be paid. The deed tax imposed under this paragraph is due within 30
days of the subsequent transfer that caused the tax to be imposed under this paragraph.
Involuntary transfers of ownership shall not be considered transfers of ownership under this
paragraph. The commissioner may adopt rules defining the types of transfers to be considered
involuntary.

(d) The tax is due at the time a taxable deed or instrument is presented for recording,
except as provided in paragraph (c). The commissioner may require the tax to be documented
in a manner prescribed by the commissioner, and may require that the documentation be
attached to and recorded as part of the deed or instrument. The county recorder or registrar
of titles shall accept the attachment for recording as part of the deed or instrument and may
not require, as a condition of recording a deed or instrument, evidence that a transfer is a
designated transfer in addition to that required by the commissioner. Such an attachment
shall not, however, provide actual or constructive notice of the information contained therein
for purposes of determining any interest in the real property. The commissioner shall
prescribe the manner in which the tax due under paragraph (c) is to be paid and may require
grantees of designated transfers to file with the commissioner subsequent statements verifying
that the tax provided under paragraph (c) does not apply.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for deeds recorded after December 31,
2018.
new text end

ARTICLE 10

DEPARTMENT OF REVENUE; MISCELLANEOUS; POLICY CHANGES

Section 1.

Minnesota Statutes 2016, section 270B.08, subdivision 2, is amended to read:


Subd. 2.

Revocationnew text begin or cancellationnew text end.

When a taxpayer's sales tax permit has been
revokednew text begin or cancelednew text end under section 270C.722new text begin or 297A.84new text end, the commissioner may disclosenew text begin
to any person
new text end data identifying the holder of the revokednew text begin or cancelednew text end permit, deleted text beginstatingdeleted text end the basis
for the revocationnew text begin or cancellation, the date of the revocation or cancellationnew text end, and deleted text beginstating
whether the
deleted text endnew text begin if a revoked or cancelednew text end permit has been reinstatednew text begin, the date upon which the
permit was reinstated
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 297A.84, is amended to read:


297A.84 PERMITS ISSUEDnew text begin AND NOT ISSUED; CANCELLATIONnew text end.

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) The following definitions apply for the purposes of this
section.
new text end

new text begin (b) "Applicant" means an individual, corporation, or partnership. Applicant also includes
any officer of a corporation or member of a partnership.
new text end

new text begin (c) "Delinquent sales tax" means tax not paid by the date the tax was due and payable
under section 289A.20, subdivision 4, or an assessment not paid if the applicant has been
issued an order assessing sales and use tax under section 270C.33, subdivision 4.
new text end

new text begin Subd. 2. new text end

new text begin Permits issued. new text end

new text beginExcept as provided in subdivision 3, new text endthe commissioner deleted text beginshalldeleted text endnew text begin
must
new text end issue a permit to each applicant who has complied with section 297A.83, and with
section 297A.92 if security is required. A person is considered to have a permit if the person
has a Minnesota tax identification number issued by the commissioner that is currently
active for taxes imposed by this chapter. A permit is valid until canceled or revoked. It is
not assignable and is valid only for the person in whose name it is granted and for the
transaction of business at the places designated on the permit.

new text begin Subd. 3. new text end

new text begin Permits not issued. new text end

new text begin (a) Except as provided in paragraph (b), the commissioner
must not issue a permit to an applicant if the applicant is liable for delinquent sales tax.
new text end

new text begin (b) The commissioner must issue a permit to an applicant if an appeal period of an order
assessing sales tax under section 270C.33, subdivision 5, has not ended. The commissioner
may cancel a permit issued under this paragraph in the manner provided in subdivision 4
if the applicant owes delinquent sales tax after the appeal period has ended.
new text end

new text begin Subd. 4. new text end

new text begin Nonconforming permits; cancellation; reissue. new text end

new text begin (a) If the commissioner issues
a permit that does not conform with the requirements of this section or applicable rules, the
commissioner may cancel the permit upon notice to the permit holder. The notice must be
served by first class and certified mail at the permit holder's last known address. The
cancellation is effective immediately.
new text end

new text begin (b) If a permit holder shows that a canceled permit was issued in conformance with the
requirements of this section and applicable rules, the commissioner must reissue the permit.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for permit applications filed after
December 31, 2018.
new text end

Sec. 3.

Minnesota Statutes 2016, section 297A.85, is amended to read:


297A.85 CANCELLATION OF PERMITS.

The commissioner may cancel a permit if one of the following conditions occurs:

(1) the permit holder has not filed a sales or use tax return for at least one year;

(2) the permit holder has not reported any sales or use tax liability on the permit holder's
returns for at least two years;

(3) the permit holder requests cancellation of the permit; deleted text beginor
deleted text end

(4) the permit is subject to cancellation deleted text beginpursuant todeleted text endnew text begin undernew text end section 270C.722, subdivision
2
, paragraph (a)deleted text begin.deleted text endnew text begin; or
new text end

new text begin (5) the permit is subject to cancellation under section 289A.84.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for permit applications filed after
December 31, 2018.
new text end

ARTICLE 11

DEPARTMENT OF REVENUE; PARTNERSHIP TAX; POLICY CHANGES

Section 1.

Minnesota Statutes 2017 Supplement, section 270C.445, subdivision 6, is
amended to read:


Subd. 6.

Enforcement; administrative order; penalties; cease and desist.

(a) The
commissioner may impose an administrative penalty of not more than $1,000 per violation
of subdivision 3 or 5, or section 270C.4451, provided that a penalty may not be imposed
for any conduct for which a tax preparer penalty is imposed under 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 paragraph
is subject to the contested case procedure under chapter 14. The commissioner shall collect
the penalty in the same manner as the income tax. There is no right to make a claim for
refund under section 289A.50 of the penalty imposed under this paragraph. Penalties imposed
under this paragraph are public data.

(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 administrative order to the tax preparer requiring the tax preparer to cease and
desist from committing the violation. The administrative order may include an administrative
penalty provided in paragraph (a).

(c) If the commissioner issues an administrative order under paragraph (b), the
commissioner must send the order to the tax preparer addressed to the last known address
of the tax preparer.

(d) A cease and desist order under paragraph (b) must:

(1) describe the act, conduct, or practice committed and include a reference to the law
that the act, conduct, or practice violates; and

(2) provide notice that the tax preparer may request a hearing as provided in this
subdivision.

(e) Within 30 days after the commissioner issues an administrative 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.

(f) If a tax preparer does not timely request a hearing regarding an administrative 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.

(g) If a tax preparer timely requests a hearing regarding an administrative order issued
under paragraph (b), the hearing must be commenced within ten days after the commissioner
receives the request for a hearing.

(h) A hearing timely requested under paragraph (e) is subject to the contested case
procedure under chapter 14, as modified by this subdivision. The administrative 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.

(i) Within five days of the date of the administrative law judge's report issued under
paragraph (h), any party aggrieved by the administrative law judge's report may submit
written exceptions and arguments to the commissioner. Within 15 days after receiving the
administrative law judge's report, the commissioner must issue an order vacating, modifying,
or making final the administrative order.

(j) The commissioner and the tax preparer requesting a hearing may by agreement
lengthen any time periods prescribed in paragraphs (g) to (i).

(k) An administrative order issued under paragraph (b) is in effect until it is modified
or vacated by the commissioner or an appellate court. The administrative 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.

(l) The commissioner may impose an administrative 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.

(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.

(n) A cease and desist order issued under paragraph (b) is public data when it is a final
order.

(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 deleted text beginsectiondeleted text endnew text begin sectionsnew text end 289A.38new text begin to 289A.384new text end.

(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 begin EFFECTIVE DATE. new text end

new text begin This section is effective for tax years beginning after December
31, 2017, except that for partnerships that make an election under Code of Federal
Regulations, title 26, section 301.9100-22T, this section is effective retroactively and applies
to the same tax periods to which the election relates.
new text end

Sec. 2.

Minnesota Statutes 2017 Supplement, 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 taxes imposed under sections 289A.35new text begin, paragraph (b), 289A.383, subdivision
3,
new text end and 290.0922 on partnerships are 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 for tax years beginning after December
31, 2017, except that for partnerships that make an election under Code of Federal
Regulations, title 26, section 301.9100-22T, this section is effective retroactively and applies
to the same tax periods to which the election relates.
new text end

Sec. 3.

Minnesota Statutes 2017 Supplement, section 289A.37, subdivision 2, is amended
to read:


Subd. 2.

Erroneous refunds.

(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.

(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:

(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

(2) any amount paid pursuant to a claim for refund of an overpayment of tax filed by a
taxpayer.

(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.

(d) Assessments of amounts that are not erroneous refunds under paragraph (b) must be
conducted under deleted text beginsectiondeleted text endnew text begin sectionsnew text end 289A.38new text begin to 289A.384new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for tax years beginning after December
31, 2017, except that for partnerships that make an election under Code of Federal
Regulations, title 26, section 301.9100-22T, this section is effective retroactively and applies
to the same tax periods to which the election relates.
new text end

Sec. 4.

Minnesota Statutes 2016, section 289A.38, subdivision 10, is amended to read:


Subd. 10.

Incorrect determination of federal adjusted gross income.

Notwithstanding
any other provision of this chapter, if a taxpayer whose net income is determined under
section 290.01, subdivision 19, omits from income an amount that will under the Internal
Revenue Code extend the statute of limitations for the assessment of federal income taxes,
or otherwise incorrectly determines the taxpayer's federal adjusted gross income resulting
in adjustments by the Internal Revenue Service, then the period of assessment and
determination of tax will be that under the Internal Revenue Code. When a change is made
to federal income during the extended time provided under this subdivision, the provisions
under deleted text beginsubdivisions 7 to 9deleted text endnew text begin sections 289A.381 to 289A.384new text end regarding additional extensions
apply.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for tax years beginning after December
31, 2017, except that for partnerships that make an election under Code of Federal
Regulations, title 26, section 301.9100-22T, this section is effective retroactively and applies
to the same tax periods to which the election relates.
new text end

Sec. 5.

new text begin [289A.381] DEFINITIONS; PARTNERSHIPS; FEDERAL ADJUSTMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions relating to federal adjustments. new text end

new text begin Unless otherwise specified,
the definitions in this section apply for the purposes of sections 289A.381 to 289A.385.
new text end

new text begin Subd. 2. new text end

new text begin Administrative adjustment request. new text end

new text begin "Administrative adjustment request"
means an administrative adjustment request filed by a partnership under section 6227 of
the Internal Revenue Code.
new text end

new text begin Subd. 3. new text end

new text begin Audited partnership. new text end

new text begin "Audited partnership" means a partnership subject to a
federal adjustment resulting from a partnership-level audit.
new text end

new text begin Subd. 4. new text end

new text begin Corporate partner. new text end

new text begin "Corporate partner" means a partner that is subject to tax
under section 290.02.
new text end

new text begin Subd. 5. new text end

new text begin Direct partner. new text end

new text begin "Direct partner" means a partner that holds an immediate legal
ownership interest in a partnership or pass-through entity.
new text end

new text begin Subd. 6. new text end

new text begin Exempt partner. new text end

new text begin "Exempt partner" means a partner that is exempt from taxes
on its net income under section 290.05, subdivision 1.
new text end

new text begin Subd. 7. new text end

new text begin Federal adjustment. new text end

new text begin "Federal adjustment" means any change in an amount
calculated under the Internal Revenue Code, whether to income, gross estate, a credit, an
item of preference, or any other item that is used by a taxpayer to compute a tax administered
under this chapter for the reviewed year whether that change results from action by the
Internal Revenue Service or other competent authority, including a partnership-level audit,
or the filing of an amended federal return, federal refund claim, or an administrative
adjustment request by the taxpayer.
new text end

new text begin Subd. 8. new text end

new text begin Federal adjustments report. new text end

new text begin "Federal adjustments report" includes a method
or form prescribed by the commissioner for use by a taxpayer to report federal adjustments,
including an amended Minnesota tax return or a uniform multistate report.
new text end

new text begin Subd. 9. new text end

new text begin Federal partnership representative. new text end

new text begin "Federal partnership representative"
means the person the partnership designates for the taxable year as the partnership's
representative, or the person the Internal Revenue Service has appointed to act as the
partnership representative, pursuant to section 6223(a) of the Internal Revenue Code.
new text end

new text begin Subd. 10. new text end

new text begin Final determination date. new text end

new text begin (a) "Final determination date" means:
new text end

new text begin (1) for a federal adjustment arising from an audit by the Internal Revenue Service or
other competent authority, the first day on which no federal adjustment arising from that
audit remains to be finally determined, whether by agreement, or, if appealed or contested,
by a final decision with respect to which all rights of appeal have been waived or exhausted;
new text end

new text begin (2) for a federal adjustment arising from the filing of an amended federal return, a federal
refund claim, or the filing by a partnership of an administrative adjustment request, the day
which the amended return, refund claim, or administrative adjustment request was filed; or
new text end

new text begin (3) for agreements required to be signed by the Internal Revenue Service and the taxpayer,
the date on which the last party signed the agreement.
new text end

new text begin Subd. 11. new text end

new text begin Final federal adjustment. new text end

new text begin "Final federal adjustment" means a federal
adjustment for which the final determination date for that federal adjustment has passed.
new text end

new text begin Subd. 12. new text end

new text begin Indirect partner. new text end

new text begin "Indirect partner" means either:
new text end

new text begin (1) a partner in a partnership or pass-through entity that itself holds an immediate legal
ownership interest in another partnership or pass-through entity; or
new text end

new text begin (2) a partner in a partnership or pass-through entity that holds an indirect interest in
another partnership or pass-through entity through another indirect partner.
new text end

new text begin Subd. 13. new text end

new text begin Partner. new text end

new text begin "Partner" means a person that holds an interest directly or indirectly
in a partnership or other pass-through entity.
new text end

new text begin Subd. 14. new text end

new text begin Partnership. new text end

new text begin The term "partnership" has the meaning provided under section
7701(a)(2) of the Internal Revenue Code.
new text end

new text begin Subd. 15. new text end

new text begin Partnership-level audit. new text end

new text begin "Partnership-level audit" means an examination by
the Internal Revenue Service at the partnership level pursuant to subtitle F, chapter 63,
subchapter C, of the Internal Revenue Code, which results in federal adjustments including
reallocation adjustments and adjustments to partnership-related items.
new text end

new text begin Subd. 16. new text end

new text begin Pass-through entity. new text end

new text begin "Pass-through entity" means an entity, other than a
partnership, that is not subject to the tax imposed under section 290.02. The term pass-through
entity includes but is not limited to S corporations, estates, and trusts other than grantor
trusts.
new text end

new text begin Subd. 17. new text end

new text begin Reallocation adjustment. new text end

new text begin "Reallocation adjustment" means a federal
adjustment, or final federal adjustment, that changes the shares of items of partnership
income, gain, loss, expense, or credit allocated to partners. The term positive reallocation
adjustment means reallocation adjustments that would increase state taxable income for
partners, and the term negative reallocation adjustment means reallocation adjustments that
would decrease state taxable income for partners.
new text end

new text begin Subd. 18. new text end

new text begin Resident partner. new text end

new text begin "Resident partner" means an individual partner or individual
indirect partner who is a resident of Minnesota under section 290.01, subdivision 7.
new text end

new text begin Subd. 19. new text end

new text begin Reviewed year. new text end

new text begin "Reviewed year" means the taxable year of a partnership that
is subject to a partnership-level audit from which federal adjustments arise.
new text end

new text begin Subd. 20. new text end

new text begin Tiered partner. new text end

new text begin "Tiered partner" means any partner that is a partnership or
pass-through entity.
new text end

new text begin Subd. 21. new text end

new text begin Unrelated business taxable income. new text end

new text begin "Unrelated business taxable income"
has the same meaning as defined in section 512 of the Internal Revenue Code.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for tax years beginning after December
31, 2017, except that for partnerships that make an election under Code of Federal
Regulations, title 26, section 301.9100-22T, this section is effective retroactively and applies
to the same tax periods to which the election relates.
new text end

Sec. 6.

new text begin [289A.382] REPORTING FEDERAL ADJUSTMENTS; GENERAL RULE.
new text end

new text begin (a) Within 180 days of a final determination date, a taxpayer must file a federal adjustment
report with the commissioner reporting all final federal adjustments by the Internal Revenue
Service or other competent authority.
new text end

new text begin (b) Within 180 days of a final determination date, a taxpayer must file a federal adjustment
report with the commissioner reporting any federal adjustments reported by the taxpayer
to the Internal Revenue Service, including but not limited to:
new text end

new text begin (1) federal refund claims;
new text end

new text begin (2) a change reported on a timely filed amended federal income tax return; and
new text end

new text begin (3) a change reported on an amended return filed pursuant to section 6225(c) of the
Internal Revenue Code.
new text end

new text begin (c) In the case of a final federal adjustment arising from a partnership-level audit or an
administrative adjustment request filed by a partnership under section 6227 of the Internal
Revenue Code, a taxpayer must report adjustments as provided for under section 289A.383,
and not this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for tax years beginning after December
31, 2017, except that for partnerships that make an election under Code of Federal
Regulations, title 26, section 301.9100-22T, this section is effective retroactively and applies
to the same tax periods to which the election relates.
new text end

Sec. 7.

new text begin [289A.383] REPORTING AND PAYMENT REQUIREMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin State partnership representative. new text end

new text begin (a) With respect to an action required
or permitted to be taken by a partnership under this section, or in a proceeding under section
270C.35 or 271.06, the state partnership representative for the reviewed year has the sole
authority to act on behalf of the partnership, and its direct partners and indirect partners are
bound by those actions.
new text end

new text begin (b) The state partnership representative for the reviewed year is the partnership's federal
partnership representative unless the partnership, in a form and manner prescribed by the
commissioner, designates another person as its state partnership representative.
new text end

new text begin Subd. 2. new text end

new text begin Reporting and payment requirements for partnerships and tiered partners.
new text end

new text begin (a) Unless an audited partnership makes the election in subdivision 3, then, for all final
federal adjustments the audited partnership must comply with paragraph (b) and each direct
partner of the audited partnership, other than a tiered partner, must comply with paragraph
(c).
new text end

new text begin (b) No later than 90 days after the final determination date, the audited partnership must:
new text end

new text begin (1) file a completed federal adjustment report, including all partner-level information
required under section 289A.12, subdivision 3, with the commissioner;
new text end

new text begin (2) notify each of its direct partners of their distributive share of the adjustments;
new text end

new text begin (3) file an amended composite report for all direct partners who were included in a
composite return under section 289A.08, subdivision 7, in the reviewed year, and pay the
additional amount that would have been due had the federal adjustments been reported
properly as required; and
new text end

new text begin (4) file amended withholding reports for all direct partners who were or should have
been subject to nonresident withholding under section 290.92, subdivision 4b, in the reviewed
year, and pay the additional amount that would have been due had the federal adjustments
been reported properly as required.
new text end

new text begin (c) No later than 180 days after the final determination date, each direct partner, other
than a tiered partner, that is subject to a tax administered under this chapter, other than the
sales tax, must:
new text end

new text begin (1) file a federal adjustment report reporting their distributive share of the adjustments
reported to them under paragraph (b), clause (2); and
new text end

new text begin (2) pay any additional amount of tax due as if the final federal adjustment had been
properly reported, plus any penalty and interest due under this chapter, and less any credit
for related amounts paid or withheld and remitted on behalf of the direct partner under
paragraph (b), clauses (3) and (4).
new text end

new text begin Subd. 3. new text end

new text begin Election; partnership or tiered partners pay. new text end

new text begin (a) An audited partnership may
make an election under this subdivision to pay its assessment at the entity level. If an audited
partnership makes an election to pay its assessment at the entity level it must:
new text end

new text begin (1) no later than 90 days after the final determination date, file a completed federal
adjustment report, including the residency information for all individual direct partners, and
information pertaining to all other partners as prescribed by the commissioner, and notify
the commissioner that it is making the election under this subdivision; and
new text end

new text begin (2) no later than 180 days after the final determination date, pay an amount, determined
as follows, in lieu of taxes on partners:
new text end

new text begin (i) exclude from final federal adjustments and any positive reallocation adjustments the
distributive share of these adjustments made to an exempt partner that is not unrelated
business taxable income;
new text end

new text begin (ii) exclude from final federal adjustments and any positive reallocation adjustments the
distributive share of these adjustments made to a partner that has filed a federal adjustment
report and paid the applicable tax, as required under subdivision 2, for the distributive share
of adjustments reported on a federal return under section 6225(c) of the Internal Revenue
Code;
new text end

new text begin (iii) allocate at the partner level using section 290.17, subdivision 1, all final federal
adjustments and positive reallocation adjustments attributable to resident direct partners for
the reviewed year;
new text end

new text begin (iv) allocate and apportion at the partnership level using sections 290.17 to 290.20 all
remaining final federal adjustments and positive reallocation adjustments for the reviewed
year;
new text end

new text begin (v) determine the total distributive share of the allocated and apportioned final federal
adjustments and positive reallocation adjustments determined in items (iii) and (iv) that are
attributable to:
new text end

new text begin (A) resident direct partners;
new text end

new text begin (B) corporate partners and exempt partners; and
new text end

new text begin (C) the total distributive share amount allocated to all other partners;
new text end

new text begin (vi) for the total distributive share of net final federal adjustments plus positive
reallocation adjustments attributed to corporate partners and exempt partners under item
(v), subitem (B), multiply the total by the highest tax rate in section 290.06, subdivision 1,
for the reviewed year, and calculate interest and penalties as applicable under this chapter;
new text end

new text begin (vii) for the total distributive share of net final federal adjustments plus positive
reallocation adjustments attributable to resident direct partners, and all other partners under
item (v), subitems (A) and (C), multiply the total by the highest tax rate in section 290.06,
subdivision 2c, for the reviewed year, and calculate interest and penalties as applicable
under this chapter; and
new text end

new text begin (viii) add the amount determined in item (vi) to the amount determined in item (vii),
and pay all applicable taxes, penalties, and interest to the commissioner.
new text end

new text begin (b) An audited partnership may not make an election under this subdivision to report:
new text end

new text begin (1) a federal adjustment, including a positive reallocation adjustment, that results in
unitary business income to a corporate partner required to file as a member of a combined
report under section 290.17, subdivision 4; or
new text end

new text begin (2) any final federal adjustments resulting from an administrative adjustment request.
new text end

new text begin Subd. 4. new text end

new text begin Tiered partners and indirect partners. new text end

new text begin (a) Each tiered partner and each
indirect partner of an audited partnership that reported final federal adjustments pursuant
to subdivision 2, paragraph (b), clause (1), or this subdivision, must:
new text end

new text begin (1) within 90 days of the report comply with the filing, reporting, and payment
requirements of subdivision 2, paragraph (b); or
new text end

new text begin (2) make the election under subdivision 3 as though it were the audited partnership.
new text end

new text begin (b) Each direct partner in a partnership making a report under paragraph (a) must, within
180 days of the report, comply with the filing, reporting, and payment requirements of
subdivision 2, paragraph (c).
new text end

new text begin (c) Notwithstanding the interim time requirements in this subdivision and subdivisions
2 and 3, all reports and payments required to be made by the tiered and indirect partners
under this section are required to be made within 90 days after the time for the filing and
furnishing of statements to tiered partners and their partners as established by the Internal
Revenue Service under section 6226 of the Internal Revenue Code.
new text end

new text begin Subd. 5. new text end

new text begin Effects of election by partnership or tiered partner and payment of amount
due.
new text end

new text begin (a) Unless the commissioner determines otherwise, the election under subdivision 3
is irrevocable.
new text end

new text begin (b) If an audited partnership or tiered partner properly reports and pays an amount
determined in subdivision 3, the amount will be treated as paid in lieu of taxes owed by the
partnership's direct partners and indirect partners on the same final federal adjustments. The
direct partners and indirect partners of the partnership who are not resident partners may
not take any deduction or credit for this amount or claim a refund of the amount in this state.
new text end

new text begin (c) Nothing in this subdivision precludes resident partners from claiming a credit against
taxes paid under section 290.06, on any amounts paid by the audited partnership or tiered
partners on the resident partner's behalf to another state or local tax jurisdiction.
new text end

new text begin Subd. 6. new text end

new text begin Failure of partnership or tiered partner to report or pay. new text end

new text begin Nothing in this
section prevents the commissioner from assessing partners or indirect partners for taxes
they owe in the event that, for any reason, a partnership or tiered partner fails to timely
make any report or payment required by this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for tax years beginning after December
31, 2017, except that for partnerships that make an election under Code of Federal
Regulations, title 26, section 301.9100-22T, this section is effective retroactively and applies
to the same tax periods to which the election relates.
new text end

Sec. 8.

new text begin [289A.384] ASSESSMENT OF TAX, INTEREST, PENALTIES, AND
ADDITIONAL AMOUNTS.
new text end

new text begin Subdivision 1. new text end

new text begin Assessment of additional tax, interest, and penalties. new text end

new text begin The commissioner
may assess additional tax, interest, and penalties following a final federal adjustment:
new text end

new text begin (1) arising from an audit by the Internal Revenue Service, including a partnership-level
audit;
new text end

new text begin (2) reported by the taxpayer on an amended federal tax return; or
new text end

new text begin (3) as part of an administrative adjustment request on or before the dates provided in
this section.
new text end

new text begin Subd. 2. new text end

new text begin Timely and untimely reported federal adjustments. new text end

new text begin If a taxpayer files a
federal adjustment report, within or after the periods prescribed in section 289A.382 or
289A.383, the commissioner may assess additional Minnesota amounts related to the federal
adjustments including in-lieu-of amounts, taxes, interest, and penalties at the later of:
new text end

new text begin (1) the expiration of the period of limitations in section 289A.38; or
new text end

new text begin (2) the expiration of the one-year period following the date of the filing with the
commissioner of the federal adjustments report.
new text end

new text begin Subd. 3. new text end

new text begin Unreported reported federal adjustments. new text end

new text begin If the taxpayer fails to file a federal
adjustments report, the commissioner may assess additional amounts related to the federal
adjustments including in-lieu-of amounts, taxes, penalties, and interest, at the later of:
new text end

new text begin (1) the expiration of the period of limitations in section 289A.38; or
new text end

new text begin (2) the expiration of the six-year period following the final determination date.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for tax years beginning after December
31, 2017, except that for partnerships that make an election under Code of Federal
Regulations, title 26, section 301.9100-22T, this section is effective retroactively and applies
to the same tax periods to which the election relates.
new text end

Sec. 9.

new text begin [289A.385] CLAIMS FOR REFUND OR CREDITS OF STATE TAX
ARISING FROM FINAL FEDERAL ADJUSTMENTS MADE BY THE INTERNAL
REVENUE SERVICE.
new text end

new text begin Notwithstanding the general period of limitations on claims for refund in section 289A.40,
taxpayers subject to the reporting requirements of sections 289A.382 and 289A.383 may
file claims for refund related to federal adjustments made by the Internal Revenue Service
on or before the last day for the assessment of tax under section 289A.384.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for tax years beginning after December
31, 2017, except that for partnerships that make an election under Code of Federal
Regulations, title 26, section 301.9100-22T, this section is effective retroactively and applies
to the same tax periods to which the election relates.
new text end

Sec. 10.

Minnesota Statutes 2016, section 289A.42, is amended to read:


289A.42 CONSENT TO EXTEND STATUTE.

Subdivision 1.

Extension agreement.

If before the expiration of time prescribed in
sections 289A.38new text begin to 289A.384new text end and 289A.40 for the assessment of tax or the filing of a claim
for refund, both the commissioner and the taxpayer have consented in writing to the
assessment or filing of a claim for refund after that time, the tax may be assessed or the
claim for refund filed at any time before the expiration of the agreed-upon period. The
period may be extended by later agreements in writing before the expiration of the period
previously agreed upon. The taxpayer and the commissioner may also agree to extend the
period for collection of the tax.

Subd. 2.

Federal extensions.

When a taxpayer consents to an extension of time for the
assessment of federal withholding or income taxes, the period in which the commissioner
may recompute the tax is also extended, notwithstanding any period of limitations to the
contrary, deleted text beginas follows:
deleted text end

deleted text begin (1)deleted text end for the periods provided in section deleted text begin289A.38, subdivisions 8 and 9;deleted text endnew text begin 289A.384,
subdivisions 2 and 3.
new text end

deleted text begin (2) for six months following the expiration of the extended federal period of limitations
when no change is made by the federal authority. If no change is made by the federal
authority, and, but for this subdivision, the commissioner's time period to adjust the tax has
expired, and if the commissioner has completed a field audit of the taxpayer, no additional
changes resulting in additional tax due or a refund may be made. For purposes of this
subdivision, "field audit" has the meaning given it in section 289A.38, subdivision 9.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for tax years beginning after December
31, 2017, except that for partnerships that make an election under Code of Federal
Regulations, title 26, section 301.9100-22T, this section is effective retroactively and applies
to the same tax periods to which the election relates.
new text end

Sec. 11.

Minnesota Statutes 2016, section 289A.60, subdivision 24, is amended to read:


Subd. 24.

Penalty for failure to notify of federal change.

If a person fails to report to
the commissioner a change or correction of the person's federal return in the manner and
time prescribed in deleted text beginsection 289A.38, subdivision 7deleted text endnew text begin sections 289A.382 and 289A.383new text end, there
must be added to the tax an amount equal to ten percent of the amount of any underpayment
of Minnesota tax attributable to the federal change.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for tax years beginning after December
31, 2017, except that for partnerships that make an election under Code of Federal
Regulations, title 26, section 301.9100-22T, this section is effective retroactively and applies
to the same tax periods to which the election relates.
new text end

Sec. 12.

Minnesota Statutes 2017 Supplement, section 290.31, subdivision 1, is amended
to read:


Subdivision 1.

Partners, not partnership, subject to tax.

Except as provided under
deleted text begin sectiondeleted text endnew text begin sectionsnew text end 289A.35, paragraph (b),new text begin and 289A.383, subdivision 3,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 for tax years beginning after December
31, 2017, except that for partnerships that make an election under Code of Federal
Regulations, title 26, section 301.9100-22T, this section is effective retroactively and applies
to the same tax periods to which the election relates.
new text end

Sec. 13.

Minnesota Statutes 2016, section 297F.17, subdivision 6, is amended to read:


Subd. 6.

Time limit for bad debt refund.

Claims for refund must be filed with the
commissioner during the one-year period beginning with the timely filing of the taxpayer's
federal income tax return containing the bad debt deduction that is being claimed. Claimants
under this subdivision are subject to the notice requirements of deleted text beginsection 289A.38, subdivision
7
deleted text endnew text begin sections 289A.382 and 289A.383new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for tax years beginning after December
31, 2017, except that for partnerships that make an election under Code of Federal
Regulations, title 26, section 301.9100-22T, this section is effective retroactively and applies
to the same tax periods to which the election relates.
new text end

Sec. 14.

Minnesota Statutes 2016, section 297G.16, subdivision 7, is amended to read:


Subd. 7.

Time limit for a bad debt deduction.

Claims for refund must be filed with
the commissioner within one year of the filing of the taxpayer's income tax return containing
the bad debt deduction that is being claimed. Claimants under this subdivision are subject
to the notice requirements of deleted text beginsection 289A.38, subdivision 7deleted text endnew text begin sections 289A.38 to 289A.384new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for tax years beginning after December
31, 2017, except that for partnerships that make an election under Code of Federal
Regulations, title 26, section 301.9100-22T, this section is effective retroactively and applies
to the same tax periods to which the election relates.
new text end

Sec. 15.

Minnesota Statutes 2016, section 469.319, subdivision 4, is amended to read:


Subd. 4.

Repayment procedures.

(a) For the repayment of taxes imposed under chapter
290 or 297A or local taxes collected pursuant to section 297A.99, a business must file an
amended return with the commissioner of revenue and pay any taxes required to be repaid
within 30 days after becoming subject to repayment under this section. The amount required
to be repaid is determined by calculating the tax for the period or periods for which repayment
is required without regard to the exemptions and credits allowed under section 469.315.

(b) For the repayment of taxes imposed under chapter 297B, a business must pay any
taxes required to be repaid to the motor vehicle registrar, as agent for the commissioner of
revenue, within 30 days after becoming subject to repayment under this section.

(c) For the repayment of property taxes, the county auditor shall prepare a tax statement
for the business, applying the applicable tax extension rates for each payable year and
provide a copy to the business and to the taxpayer of record. The business must pay the
taxes to the county treasurer within 30 days after receipt of the tax statement. The business
or the taxpayer of record may appeal the valuation and determination of the property tax to
the Tax Court within 30 days after receipt of the tax statement.

(d) The provisions of chapters 270C and 289A relating to the commissioner's authority
to audit, assess, and collect the tax and to hear appeals are applicable to the repayment
required under paragraphs (a) and (b). The commissioner may impose civil penalties as
provided in chapter 289A, and the additional tax and penalties are subject to interest at the
rate provided in section 270C.40. The additional tax shall bear interest from 30 days after
becoming subject to repayment under this section until the date the tax is paid. Any penalty
imposed pursuant to this section shall bear interest from the date provided in section 270C.40,
subdivision 3
, to the date of payment of the penalty.

(e) If a property tax is not repaid under paragraph (c), the county treasurer shall add the
amount required to be repaid to the property taxes assessed against the property for payment
in the year following the year in which the auditor provided the statement under paragraph
(c).

(f) For determining the tax required to be repaid, a reduction of a state or local sales or
use tax is deemed to have been received on the date that the good or service was purchased
or first put to a taxable use. In the case of an income tax or franchise tax, including the credit
payable under section 469.318, a reduction of tax is deemed to have been received for the
two most recent tax years that have ended prior to the date that the business became subject
to repayment under this section. In the case of a property tax, a reduction of tax is deemed
to have been received for the taxes payable in the year that the business became subject to
repayment under this section and for the taxes payable in the prior year.

(g) The commissioner may assess the repayment of taxes under paragraph (d) any time
within two years after the business becomes subject to repayment under subdivision 1, or
within any period of limitations for the assessment of tax under deleted text beginsection 289A.38deleted text endnew text begin sections
289A.38 to 289A.384
new text end, whichever period is later. The county auditor may send the statement
under paragraph (c) any time within three years after the business becomes subject to
repayment under subdivision 1.

(h) A business is not entitled to any income tax or franchise tax benefits, including
refundable credits, for any part of the year in which the business becomes subject to
repayment under this section nor for any year thereafter. Property is not exempt from tax
under section 272.02, subdivision 64, for any taxes payable in the year following the year
in which the property became subject to repayment under this section nor for any year
thereafter. A business is not eligible for any sales tax benefits beginning with goods or
services purchased or first put to a taxable use on the day that the business becomes subject
to repayment under this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for tax years beginning after December
31, 2017, except that for partnerships that make an election under Code of Federal
Regulations, title 26, section 301.9100-22T, this section is effective retroactively and applies
to the same tax periods to which the election relates.
new text end

Sec. 16. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, section 289A.38, subdivisions 7, 8, and 9, 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 tax years beginning after December
31, 2017, except that for partnerships that make an election under Code of Federal
Regulations, title 26, section 301.9100-22T, this section is effective retroactively and applies
to the same tax periods to which the election relates.
new text end

ARTICLE 12

DEPARTMENT OF REVENUE; INDIVIDUAL INCOME AND CORPORATE
FRANCHISE TAXES; TECHNICAL CHANGES

Section 1.

Minnesota Statutes 2016, section 289A.38, subdivision 7, is amended to read:


Subd. 7.

Federal tax changes.

new text begin(a) new text endIf the amount of income, items of tax preference,
deductions, or credits for any year of a taxpayer, or the wages paid by a taxpayer for any
period, as reported to the Internal Revenue Service is changed or corrected by the
commissioner of Internal Revenue or other officer of the United States or other competent
authority, or where a renegotiation of a contract or subcontract with the United States results
in a change in income, items of tax preference, deductions, credits, or withholding tax, or,
in the case of estate tax, where there are adjustments to the taxable estate, the taxpayer shall
report the change or correction or renegotiation results in writing to the commissioner. The
report must be submitted within 180 days after the final determination and must be in the
form of either an amended Minnesota estate, withholding tax, corporate franchise tax, or
income tax return conceding the accuracy of the federal determination or a letter detailing
how the federal determination is incorrect or does not change the Minnesota tax. An amended
Minnesota income tax return must be accompanied by an amended property tax refund
return, if necessary. A taxpayer filing an amended federal tax return must also file a copy
of the amended return with the commissioner of revenue within 180 days after filing the
amended return.

new text begin (b) For the purposes of paragraph (a), a change or correction includes any case where a
taxpayer reaches a closing agreement or compromise with the Internal Revenue Service
under section 7121 or 7122 of the Internal Revenue Code.
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 2017 Supplement, section 290.0137, is amended to read:


290.0137 ACCELERATED RECOGNITION OF CERTAIN INSTALLMENT
SALE GAINS.

(a) In the case of a nonresident individual or a person who becomes a nonresident
individual during the tax year, taxable net income shall include the deleted text beginallocabledeleted text end amount realized
upon a sale of the assets of, or any interest in, an S corporation or partnership that operated
in Minnesota during the year of sale, including any income or gain to be recognized in future
years pursuant to an installment sale method of reporting under the Internal Revenue Code.

(1) For the purposes of this paragraph, an individual who becomes a nonresident of
Minnesota in any year after an installment sale is required to recognize the full amount of
any income or gain described in this paragraph on the individual's final Minnesota resident
tax return to the extent that such income has not been recognized in a prior year.

(2) For the purposes of this section, "realized" has the meaning given in section 1001(b)
of the Internal Revenue Code.

(3) For the purposes of this section, "installment sale" means any installment sale under
section 453 of the Internal Revenue Code and any other sale that is reported utilizing a
method of accounting authorized under subchapter E of the Internal Revenue Code that
allows taxpayers to delay reporting or recognizing a realized gain until a future year.

deleted text begin (4) For the purposes of this section, "allocable amount" means the full amount to be
apportioned to Minnesota under section 290.191 or 290.20, or the full amount to be assigned
to Minnesota under section 290.17.
deleted text end

(b) Notwithstanding paragraph (a), nonresident taxpayers may elect to defer recognizing
unrecognized installment sale gains by making an election under this paragraph. The election
must be filed on a form to be determined or prescribed by the commissioner and must be
filed by the due date of the individual income tax return, including any extension. Electing
taxpayers must make an irrevocable agreement to:

(1) file Minnesota tax returns in all subsequent years when gains from the installment
sales are recognized and reported to the Internal Revenue Service;

(2) allocate gains to the state of Minnesota as though the gains were realized in the year
of sale under section 290.17, 290.191, or 290.20; and

(3) include all relevant federal tax documents reporting the installment sale with
subsequent Minnesota tax returns.

(c) Income or gain recognized for Minnesota purposes pursuant to paragraph (a) must
be excluded from taxable net income in any future year that the taxpayer files a Minnesota
tax return to the extent that the income or gain has already been subject to tax pursuant to
paragraph (a).

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 290.06, subdivision 2c, is amended to read:


Subd. 2c.

Schedules of rates for individuals, estates, and trusts.

(a) The income taxes
imposed by this chapter upon married individuals filing joint returns and surviving spouses
as defined in section 2(a) of the Internal Revenue Code must be computed by applying to
their taxable net income the following schedule of rates:

(1) On the first $35,480, 5.35 percent;

(2) On all over $35,480, but not over $140,960, 7.05 percent;

(3) On all over $140,960, but not over $250,000, 7.85 percent;

(4) On all over $250,000, 9.85 percent.

Married individuals filing separate returns, estates, and trusts must compute their income
tax by applying the above rates to their taxable income, except that the income brackets
will be one-half of the above amountsnew text begin after the adjustment required in subdivision 2dnew text end.

(b) The income taxes imposed by this chapter upon unmarried individuals must be
computed by applying to taxable net income the following schedule of rates:

(1) On the first $24,270, 5.35 percent;

(2) On all over $24,270, but not over $79,730, 7.05 percent;

(3) On all over $79,730, but not over $150,000, 7.85 percent;

(4) On all over $150,000, 9.85 percent.

(c) The income taxes imposed by this chapter upon unmarried individuals qualifying as
a head of household as defined in section 2(b) of the Internal Revenue Code must be
computed by applying to taxable net income the following schedule of rates:

(1) On the first $29,880, 5.35 percent;

(2) On all over $29,880, but not over $120,070, 7.05 percent;

(3) On all over $120,070, but not over $200,000, 7.85 percent;

(4) On all over $200,000, 9.85 percent.

(d) In lieu of a tax computed according to the rates set forth in this subdivision, the tax
of any individual taxpayer whose taxable net income for the taxable year is less than an
amount determined by the commissioner must be computed in accordance with tables
prepared and issued by the commissioner of revenue based on income brackets of not more
than $100. The amount of tax for each bracket shall be computed at the rates set forth in
this subdivision, provided that the commissioner may disregard a fractional part of a dollar
unless it amounts to 50 cents or more, in which case it may be increased to $1.

(e) An individual who is not a Minnesota resident for the entire year must compute the
individual's Minnesota income tax as provided in this subdivision. After the application of
the nonrefundable credits provided in this chapter, the tax liability must then be multiplied
by a fraction in which:

(1) the numerator is the individual's Minnesota source federal adjusted gross income as
defined in section 62 of the Internal Revenue Code and increased bynew text begin:
new text end

new text begin (i)new text end the additions required under deleted text beginsectiondeleted text endnew text begin sectionsnew text end 290.0131, subdivisions 2 and 6 to 11,new text begin
and 290.0137, paragraph (a);
new text end and reduced by

new text begin (ii)new text end the Minnesota assignable portion of the subtraction for United States government
interest under section 290.0132, subdivision 2, deleted text beginanddeleted text end the subtractions under deleted text beginsectiondeleted text endnew text begin sectionsnew text end
290.0132, subdivisions 9, 10, 14, 15, 17, and 18new text begin, and 290.0137, paragraph (c)new text end, after applying
the allocation and assignability provisions of section 290.081, clause (a), or 290.17; and

(2) the denominator is the individual's federal adjusted gross income as defined in section
62 of the Internal Revenue Code, increased bynew text begin:
new text end

new text begin (i)new text end the deleted text beginamounts specified in sectiondeleted text endnew text begin additions required under sectionsnew text end 290.0131,
subdivisions 2
and 6 to 11,new text begin and 290.0137, paragraph (a);new text end and reduced by

new text begin (ii)new text end the deleted text beginamounts specified in sectiondeleted text endnew text begin subtractions under sectionsnew text end 290.0132, subdivisions
2, 9, 10, 14, 15, 17, and 18new text begin, and 290.0137, paragraph (c)new text end.

new text begin EFFECTIVE DATE. new text end

new text begin The amendment to paragraph (a) is effective for taxable years
beginning after December 31, 2017. The amendment to paragraph (e) is effective the day
following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2016, section 290.06, subdivision 2d, is amended to read:


Subd. 2d.

Inflation adjustment of brackets.

(a) For taxable years beginning after
December 31, 2013, the minimum and maximum dollar amounts for each rate bracket for
which a tax is imposed in subdivision 2c shall be adjusted for inflation by the percentage
determined under paragraph (b). For the purpose of making the adjustment as provided in
this subdivision all of the rate brackets provided in subdivision 2c shall be the rate brackets
as they existed for taxable years beginning after December 31, 2012, and before January 1,
2014. The rate applicable to any rate bracket must not be changed. The dollar amounts
setting forth the tax shall be adjusted to reflect the changes in the rate brackets. The rate
brackets as adjusted must be rounded to the nearest $10 amount. If the rate bracket ends in
$5, it must be rounded up to the nearest $10 amount.

(b) The commissioner shall adjust the rate brackets and 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 "2012" shall be substituted for the word "1992." For 2014, the
commissioner shall then determine the percent change from the 12 months ending on August
31, 2012, to the 12 months ending on August 31, 2013, and in each subsequent year, from
the 12 months ending on August 31, 2012, to the 12 months ending on August 31 of the
year preceding the taxable year.new text begin The commissioner shall determine the rate bracket for
married filing separate returns after this adjustment is done. The rate bracket for married
filing separate must be one-half of the rate bracket for married filing joint.
new text end The determination
of the commissioner pursuant to this subdivision shall not be considered a "rule" and shall
not be subject to the Administrative Procedure Act contained in chapter 14.

No later than December 15 of each year, the commissioner shall announce the specific
percentage that will be used to adjust the tax rate brackets.

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. 5.

Minnesota Statutes 2016, section 290.92, subdivision 28, is amended to read:


Subd. 28.

Payments to horse racing license holders.

Effective with payments made
after April 1, 1988, any holder of a license issued by the Minnesota Racing Commission
who makes a payment for personal or professional services to a holder of a class C license
issued by the commission, except an amount paid as a purse, shall deduct from the payment
and withhold 6.25 percent of the amount as Minnesota withholding tax when the amount
paid to that individual by the same person during the calendar year exceeds $600. For
purposes of the provisions of this section, a payment to any person which is subject to
withholding under this subdivision must be treated as if the payment was a wage paid by
an employer to an employee. Every individual who is to receive a payment which is subject
to withholding under this subdivision shall furnish the license holder with a statement, made
under the penalties of perjury, containing the name, address, and Social Security account
number of the person receiving the payment. No withholding is required if the individual
presents a signed certificate from the individual's employer which states that the individual
is an employee of that employer. A nonresident individual who holds a class C license must
be treated as an athlete for purposes of applying the provisions of subdivision 4a and section
290.17, subdivision 2deleted text begin(1)(b)(ii)deleted text endnew text begin(a)(2)(ii)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 2017 Supplement, section 462D.03, subdivision 2, is amended
to read:


Subd. 2.

Designation of qualified beneficiary.

(a) The account holder must designate
a first-time home buyer as the qualified beneficiary of the account deleted text beginby April 15 of the yeardeleted text endnew text begin
in a form and manner prescribed by the commissioner
new text end 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.

(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 begin EFFECTIVE DATE. new text end

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

ARTICLE 13

DEPARTMENT OF REVENUE; SALES AND USE TAXES; TECHNICAL CHANGES

Section 1.

Minnesota Statutes 2016, section 297A.68, subdivision 17, is amended to read:


Subd. 17.

Ships used in interstate commercenew text begin; other vesselsnew text end.

Repair, replacement, and
rebuilding parts and materials, and lubricants, fornew text begin the following are exempt:
new text end

new text begin (1)new text end ships or vessels used or to be used principally in interstate or foreign commerce deleted text beginare
exempt.
deleted text endnew text begin; and
new text end

new text begin (2)new text end vessels with a gross registered tonnage of at least 3,000 tons deleted text beginare exemptdeleted 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 297A.68, subdivision 44, is amended to read:


Subd. 44.

Greater Minnesota business expansions.

(a) Purchases and use of tangible
personal property or taxable services by a qualified businessdeleted text begin, as defined in section 116J.8738,deleted text end
are exempt if:

(1) new text beginthe commissioner of employment and economic development certifies to the
commissioner of revenue, in a format approved by the commissioner of revenue, that the
qualified business meets the requirements under section 116J.8738;
new text end

new text begin (2) new text endthe business subsidy agreement provides that the exemption under this subdivision
applies;

deleted text begin (2)deleted text endnew text begin (3)new text end the property or services are primarily used or consumed at the facility in greater
Minnesota identified in the business subsidy agreement; and

deleted text begin (3)deleted text endnew text begin (4)new text end the purchase was made and delivery received during the duration of the
deleted text begin certification of the business as a qualified business under section 116J.8738deleted text endnew text begin business subsidy
agreement
new text end.

(b) Purchase and use of construction materials and supplies used or consumed in, and
equipment incorporated into, the construction of improvements to real property in greater
Minnesota are exempt if the improvements after completion of construction are to be used
in the conduct of the trade or business of the qualified business, deleted text beginas defined in section
116J.8738
deleted text endnew text begin and the commissioner of employment and economic development certifies to
the commissioner of revenue, in a format approved by the commissioner of revenue, that
the qualified business meets the requirements under section 116J.8738
new text end. This exemption
applies regardless of whether the purchases are made by the business or a contractor.

(c) The exemptions under this subdivision apply to a local sales and use tax.

(d) The tax on purchases imposed under this subdivision must be imposed and collected
as if the rate under section 297A.62 applied, and then refunded in the manner provided in
section 297A.75. The total amount refunded for a facility over the certification period is
limited to the amount listed in the business subsidy agreement. No more than $7,000,000
may be refunded in a fiscal year for all purchases under this subdivision. Refunds must be
allocated on a first-come, first-served basis. If more than $7,000,000 of eligible claims are
made in a fiscal year, claims by qualified businesses carry over to the next fiscal year, and
the commissionernew text begin of revenuenew text end must first allocate refunds to qualified businesses eligible for
a refund in the preceding fiscal year. Any portion of the balance of funds allocated for
refunds under this paragraph does not cancel and shall be carried forward to and available
for refunds in subsequent fiscal years. Notwithstanding section 297A.75, subdivision 4, for
an eligible refund claim that carries over to a subsequent fiscal year, the interest on the
amount carried over must be paid on the refund no sooner than from 90 days after July 1
of the fiscal year in which funds are available for the eligible claim.

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2016, section 297A.71, subdivision 45, is amended to read:


Subd. 45.

Biopharmaceutical manufacturing facility.

(a) Materials and supplies used
or consumed in, capital equipment incorporated into, and privately owned infrastructure in
support of the construction, improvement, or expansion of a biopharmaceutical manufacturing
facility in the state are exempt ifnew text begin the commissioner of employment and economic
development certifies to the commissioner of revenue that
new text end the following criteria are met:

(1) the facility is used for the manufacturing of biologics;

(2) the total capital investment made at the facility exceeds $50,000,000; and

(3) the facility creates and maintains at least 190 full-time equivalent positions at the
facility. These positions must be new jobs in Minnesota and not the result of relocating jobs
that currently exist in Minnesota.

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

(c) To be eligible for a refund, the owner of the biopharmaceutical manufacturing facility
must:

(1) initially apply to the deleted text beginDepartmentdeleted text endnew text begin commissionernew text end of employment and economic
development for certification no later than one year from the final completion date of
construction, improvement, or expansion of the facility; and

(2) for each year that the owner of the biopharmaceutical manufacturing facility applies
for a refund, the deleted text beginownerdeleted text endnew text begin commissionernew text end must have received written certification from the
deleted text begin Departmentdeleted text endnew text begin commissionernew text end of employment and economic development that the facility has
met the criteria of paragraph (a).

(d) The refund is to be paid annually at a rate of 25 percent of the total allowable refund
payable to date, with the commissioner making annual payments of the remaining refund
until all of the refund has been paid.

(e) For purposes of this subdivision, "biopharmaceutical" and "biologics" are
interchangeable and mean medical drugs or medicinal preparations produced using
technology that uses biological systems, living organisms, or derivatives of living organisms
to make or modify products or processes for specific use. The medical drugs or medicinal
preparations include but are not limited to proteins, antibodies, nucleic acids, and vaccines.

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 297A.77, is amended by adding a subdivision to
read:


new text begin Subd. 5. new text end

new text begin Records must be kept. new text end

new text begin Every person liable for any tax imposed by this chapter,
or for the collection thereof, shall keep such records, render such statements, make such
returns, and comply with such rules, as the commissioner may from time to time prescribe.
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 14

DEPARTMENT OF REVENUE; TOBACCO TAXES; TECHNICAL CHANGES

Section 1.

Minnesota Statutes 2016, section 297F.01, subdivision 19, is amended to read:


Subd. 19.

Tobacco products.

(a) "Tobacco products" means any product containing,
made, or derived from tobacco that is intended for human consumption, whether chewed,
smoked, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means, or
any component, part, or accessory of a tobacco product, including, but not limited to, cigars;
cheroots; stogies; periques; granulated, plug cut, crimp cut, ready rubbed, and other smoking
tobacco; snuff; snuff flour; cavendish; plug and twist tobacco; fine-cut and other chewing
tobacco; shorts; refuse scraps, clippings, cuttings and sweepings of tobacco, and other kinds
and forms of tobacco; but does not include cigarettes as defined in this section.new text begin Tobacco
products includes vapor products.
new text end Tobacco products excludes any tobacco product that has
been approved by the United States Food and Drug Administration for sale as a tobacco
cessation product, as a tobacco dependence product, or for other medical purposes, and is
being marketed and sold solely for such an approved purpose.

(b) Except for the imposition of tax under section 297F.05, subdivisions 3 and 4, tobacco
products includes a premium cigar, as defined in subdivision 13a.

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 297F.01, is amended by adding a subdivision to
read:


new text begin Subd. 22b. new text end

new text begin Vapor products. new text end

new text begin (a) "Vapor products" means any cartridge, bottle, or other
package that contains nicotine made or derived from tobacco, that is in a solution that is
consumed, or meant to be consumed, through the use of a heating element, power source,
electronic circuit, or other electronic, chemical, or mechanical means that produces vapor
from the nicotine. This paragraph expires December 31, 2018.
new text end

new text begin (b) Beginning January 1, 2019, "vapor products" means any cartridge, bottle, or other
package that contains nicotine, including nicotine produced from sources other than tobacco,
that is in a solution that is consumed, or meant to be consumed, through the use of a heating
element, power source, electronic circuit, or other electronic, chemical, or mechanical means
that produces vapor from the nicotine.
new text end

new text begin (c) Vapor products includes any electronic cigarette, electronic cigar, electronic cigarillo,
electronic pipe, or similar product or device, and any batteries, heating elements, or other
components, parts, or accessories sold with and meant to be used in the consumption of the
nicotine solution.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2016, section 297F.01, subdivision 23, is amended to read:


Subd. 23.

Wholesale sales price.

"Wholesale sales price" means the price at which a
distributor purchases a tobacco product. Wholesale sales price includes the applicable federal
excise tax, freight charges, or packaging costs, regardless of whether they were included in
the purchase price.new text begin Wholesale sales price of a vapor product does not include the cost of a
product, device, component, part, or accessory described in subdivision 22b that is sold
with a nicotine solution if the distributor sells the cartridge of nicotine solution separately
and can isolate the cost of the product, device, component, part, or accessory.
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 15

DEPARTMENT OF REVENUE; PROPERTY TAXES; TECHNICAL CHANGES

Section 1.

Minnesota Statutes 2016, section 270C.85, subdivision 2, is amended to read:


Subd. 2.

Powers and duties.

The commissioner shall have and exercise the following
powers and duties in administering the property tax lawsdeleted text begin.deleted text endnew text begin:
new text end

deleted text begin (a)deleted text endnew text begin (1)new text end confer with, advise, and give the necessary instructions and directions to local
assessors and local boards of review throughout the state as to their duties under the laws
of the statedeleted text begin.deleted text endnew text begin;
new text end

deleted text begin (b)deleted text endnew text begin (2)new text end direct proceedings, actions, and prosecutions to be instituted to enforce the laws
relating to the liability and punishment of public officers and officers and agents of
corporations for failure or negligence to comply with the provisions of the property tax
laws, and cause complaints to be made against local assessors, members of boards of
equalization, members of boards of review, or any other assessing or taxing officer, to the
proper authority, for their removal from office for misconduct or negligence of dutydeleted text begin.deleted text endnew text begin;
new text end

deleted text begin (c)deleted text endnew text begin (3)new text end require county attorneys to assist in the commencement of prosecutions in actions
or proceedings for removal, forfeiture, and punishment, for violation of the property tax
laws in their respective districts or countiesdeleted text begin.deleted text endnew text begin;
new text end

deleted text begin (d)deleted text endnew text begin (4)new text end require town, city, county, and other public officers to report new text beginand certify
new text end informationnew text begin, at the parcel level or in the aggregate,new text end as to the assessmentnew text begin and taxationnew text end ofnew text begin real
and personal
new text end property, and such other information as may be needful in the work of the
commissionerdeleted text begin, in such form as the commissioner may prescribedeleted text end.new text begin The commissioner shall
prescribe the content, format, manner, and time of filing of all required reports and
certifications;
new text end

deleted text begin (e)deleted text endnew text begin (5)new text end transmit to the governor, on or before the third Monday in December of each
even-numbered year, and to each member of the legislature, on or before November 15 of
each even-numbered year, the report of the department for the preceding years, showing all
the taxable property subject to the property tax laws and the value of the same, in tabulated
formdeleted text begin.deleted text endnew text begin;
new text end

deleted text begin (f)deleted text endnew text begin (6)new text end inquire into the methods of assessment and taxation and ascertain whether the
assessors faithfully discharge their dutiesdeleted text begin.deleted text endnew text begin; and
new text end

deleted text begin (g)deleted text endnew text begin (7)new text end assist local assessors in determining the estimated market value of industrial
special-use property. For purposes of this deleted text beginparagraphdeleted text endnew text begin clausenew text end, "industrial special-use property"
means property that:

deleted text begin (1)deleted text end new text begin(i) new text endis designed and equipped for a particular type of industry;

deleted text begin (2)deleted text end new text begin(ii) new text endis not easily adapted to some other use due to the unique nature of the facilities;

deleted text begin (3)deleted text end new text begin(iii) new text endhas facilities totaling at least 75,000 square feet in size; and

deleted text begin (4)deleted text end new text begin(iv) new text endhas a total estimated market value of $10,000,000 or greater based on the
assessor's preliminary determination.

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 2017 Supplement, section 270C.89, subdivision 1, is amended
to read:


Subdivision 1.

Initial report.

Each county assessor shall file deleted text beginby April 1deleted text end with the
commissioner a copy of deleted text beginthe abstractdeleted text endnew text begin preliminary assessment information that the
commissioner may require under section 270C.85, subdivision 2, clause (4),
new text end that will be
acted upon by the local and county boards of review. deleted text beginThe abstract must list the real and
personal property in the county itemized by assessment districts.
deleted text end 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. deleted text beginThe
information must be filed in the manner prescribed by the commissioner.
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. 3.

Minnesota Statutes 2016, section 270C.89, subdivision 2, is amended to read:


Subd. 2.

Final report.

The final deleted text beginabstract of assessmentsdeleted text endnew text begin assessment informationnew text end after
adjustments by the State Board of Equalization and inclusion of any omitted property shall
be deleted text beginsubmitteddeleted text endnew text begin reportednew text end to the commissioner deleted text beginon or before September 1 of each calendar yeardeleted text endnew text begin
under section 270C.85, subdivision 2, clause (4)
new text end. deleted text beginThe final abstract must separately report
the captured tax capacity of tax increment financing districts under section 469.177,
subdivision 2
, the areawide net tax capacity contribution values determined under sections
276A.05, subdivision 1, and 473F.07, subdivision 1, and the value subject to the power line
credit under section 273.42.
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. 4.

Minnesota Statutes 2016, section 270C.91, is amended to read:


270C.91 RECORD OF PROCEEDINGS CHANGING NET TAX CAPACITY;
DUTIES OF COUNTY AUDITOR.

A record of all proceedings of the commissioner affecting any change in the net tax
capacity of any property, as revised by the State Board of Equalization, shall be kept by the
commissioner and a copy thereof, duly certified, shall be mailed each year to the auditor of
each county wherein such property is situated, on or before June 30 deleted text beginor 30 days after
submission of the abstract required by section 270C.89, whichever is later
deleted text end. This record shall
specify the amounts or amount, or both, added to or deducted from the net tax capacity of
the real property of each of the several towns and cities, and of the real property not in towns
or cities, also the percent or amount of both, added to or deducted from the several classes
of personal property in each of the towns and cities, and also the amount added to or deducted
from the assessment of any person. The county auditor shall add to or deduct from such
tract or lot, or portion thereof, of any real property in the county the required percent or
amount, or both, on the net tax capacity thereof as it stood after equalized by the county
board, adding in each case a fractional sum of 50 cents or more, and deducting in each case
any fractional sum of less than 50 cents, so that no net tax capacity of any separate tract or
lot shall contain any fraction of a dollar; and add to, or deduct from, the several classes of
personal property in the county the required percent or amount, or both, on the net tax
capacity thereof as it stood after equalized by the county board, adding or deducting in
manner aforesaid any fractional sum so that no net tax capacity of any separate class of
personal property shall contain a fraction of a dollar, and add to or deduct from assessment
of any person, as they stood after equalization by the county board, the required amounts
to agree with the assessments as returned 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. 5.

Minnesota Statutes 2016, section 273.061, subdivision 9, is amended to read:


Subd. 9.

Additional general duties.

Additional duties of the county assessor deleted text beginshall bedeleted text endnew text begin
are
new text end as follows:

(1) to make all assessments, based upon the appraised values reported by the local
assessors or assistants and the county assessor's own knowledge of the value of the property
assessed;

(2) to personally view and determine the value of any property deleted text beginwhichdeleted text endnew text begin thatnew text end because of
its type or character may be difficult for the local assessor to appraise;

(3) to make all changes ordered by the local boards of review, relative to the net tax
capacity of the property of any individual, firm or corporation after notice has been given
and hearings held as provided by law;

(4) to enter all assessments in the assessment books, furnished by the county auditor,
with each book and the tabular statements for each book in correct balance;

(5) to prepare all assessment cards, charts, maps and any other forms prescribed by the
commissioner of revenue;

(6) to attend the meeting of the county board of equalization; to investigate and report
on any assessment ordered by said board; to enter all changes made by said board in the
assessment books and prepare deleted text beginthe abstract of assessments for the commissioner of revenuedeleted text endnew text begin
information reported to the commissioner under section 270C.85, subdivision 2, clause (4)
new text end;
to enter all changes made by the State Board of Equalization in the assessment books; to
deduct all exemptions authorized by law from each assessment and certify to the county
auditor the taxable value of each parcel of land, as described and listed in the assessment
books by the county auditor, and the taxable value of the personal property of each person,
firm, or corporation assessed;

(7) to investigate and make recommendations relative to all applications for the abatement
of taxes or applications for the reduction of the net tax capacity of any property;new text begin and
new text end

(8) to perform all other duties relating to the assessment of property for the purpose of
taxation which may be required 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. 6.

Minnesota Statutes 2017 Supplement, 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 deleted text begin(i)deleted text endnew text begin (1)new text end a person on the assessor's
staff who is certified by the Department of Revenue in sales ratio calculations, deleted text begin(ii)deleted text endnew text begin (2)new text end an
officer or employee who is certified by the Department of Revenue in tax calculations, and
deleted text begin (iii)deleted text endnew text begin (3)new text end an officer or employee who is certified by the Department of Revenue in the proper
preparation of deleted text beginabstracts 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
deleted text endnew text begin information reported to the commissioner under
section 270C.85, subdivision 2, clause (4)
new text end. Certifications under this paragraph expire after
four years.

(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.

(d) When the commissioner of revenue determines that an individual or board that
performs functions related to property tax administration has performed those functions in
a manner that is not uniform or equitable, the commissioner may require that the individual
or members of the board complete supplemental training. The commissioner may not require
that an individual complete more than 32 hours of supplemental training pursuant to this
paragraph. If the individual is required to complete supplemental training due to that
individual's membership on a local or county board of appeal and equalization, the
commissioner may not require that the individual complete more than two hours of
supplemental training.

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 273.113, subdivision 3, is amended to read:


Subd. 3.

Reimbursement for lost revenue.

The county auditor shall certify to the
commissioner of revenuedeleted text begin, as part of the abstracts of tax lists required to be filed with the
commissioner
deleted text end under section deleted text begin275.29deleted text endnew text begin 270C.85, subdivision 2, clause (4)new text end, the amount of tax
lost to the county from the property tax credit under subdivision 2. Any prior year adjustments
must also be certified deleted text beginin the abstracts of tax listsdeleted text end. The commissioner of revenue shall review
the certifications to determine their accuracy. The commissioner may make the changes in
the certification that are considered necessary or return a certification to the county auditor
for corrections. The commissioner shall reimburse each taxing district, other than school
districts, for the taxes lost. The payments must be made at the time provided in section
473H.10 for payment to taxing jurisdictions in the same proportion that the ad valorem tax
is distributed. Reimbursements to school districts must be made as provided in section
273.1392. The amount necessary to make the reimbursements under this section is annually
appropriated from the general fund to 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. 8.

Minnesota Statutes 2016, section 273.119, subdivision 2, is amended to read:


Subd. 2.

Reimbursement for lost revenue.

The county may transfer money from the
county conservation account created in section 40A.152 to the county revenue fund to
reimburse the fund for the cost of the property tax credit. The county auditor shall certify
to the commissioner of revenuedeleted text begin, as part of the abstracts of tax lists required to be filed with
the commissioner
deleted text end under section deleted text begin275.29deleted text endnew text begin 270C.85, subdivision 2, clause (4)new text end, the amount of
tax lost to the county from the property tax credit under subdivision 1 and the extent that
the tax lost exceeds funds available in the county conservation account. Any prior year
adjustments must also be certified deleted text beginin the abstracts of tax listsdeleted text end. The commissioner of revenue
shall review the certifications to determine their accuracy. The commissioner may make
the changes in the certification that are considered necessary or return a certification to the
county auditor for corrections. The commissioner shall reimburse each taxing district, other
than school districts, from the Minnesota conservation fund under section 40A.151 for the
taxes lost in excess of the county account. The payments must be made at the time provided
in section 473H.10, subdivision 3, for payment to taxing jurisdictions in the same proportion
that the ad valorem tax is distributed.

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 273.1231, subdivision 3, is amended to read:


Subd. 3.

Disaster or emergency area.

(a) "Disaster or emergency area" means a
geographic area for which:

(1)(i) the president of the United States, the secretary of agriculture, or the administrator
of the Small Business Administration has determined that a disaster exists pursuant to federal
law, or

(ii) a local emergency has been declared pursuant to section 12.29; and

(2) an application by the local unit of government requesting property tax relief under
this section has been received by the governor and approved by the executive council.

(b) The executive council must not approve an application unless:

(1) a completed disaster survey is included; and

(2) within the boundaries of the applicant, (i) the average damage for the buildings that
are damaged is at least $5,000, and (ii) either at least 25 taxable buildings were damaged,
or the total dollar amount of damage to all taxable buildings equals or exceeds one percent
of the total taxable market value of buildings for the applicant as reported to the commissioner
of revenue under section deleted text begin270C.89, subdivision 2deleted text endnew text begin 270C.85, subdivision 2, clause (4)new text end, for the
assessment in the year prior to the year of the damage.

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 273.136, subdivision 2, is amended to read:


Subd. 2.

Reduction amounts submitted to county.

The commissioner of revenue shall
determine, not later than April 1 of each year, the amount of reduction resulting from section
273.135 in each county containing a tax relief area as defined by section 273.134, paragraph
(b), basing determinations on a review of deleted text beginabstracts of tax lists submitted by the county
auditors pursuant to section 275.29
deleted text endnew text begin information reported to the commissioner under section
270C.85, subdivision 2, clause (4)
new text end. The commissioner may make changes deleted text beginin the abstracts
of tax lists
deleted text end as deemed necessary. The commissioner of revenue, after such review, shall
submit to the St. Louis County auditor, on or before April 15, the amount of the first half
payment payable hereunder and on or before September 15 the amount of the second half
payment.

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 2017 Supplement, section 273.1384, subdivision 2, is amended
to read:


Subd. 2.

Agricultural homestead market value credit.

Property classified as agricultural
homestead under section 273.13, subdivision 23, paragraph (a), is eligible for an agricultural
credit. The credit is computed using the property's agricultural credit market value, defined
for this purpose as the property's market value excluding the market value of the house,
garage, and immediately surrounding one acre of land. The credit is equal to 0.3 percent of
the first $115,000 of the property's agricultural credit market value plus 0.1 percent of the
property's agricultural credit market value in excess of $115,000, subject to a maximum
credit of $490new text begin for a full agricultural homesteadnew text end. In the case of property that is classified as
part homestead and part nonhomestead solely because not all the owners occupy or farm
the property, not all the owners have qualifying relatives occupying or farming the property,
or solely because not all the spouses of owners occupy the property, the credit is computed
on the amount of agricultural credit market value corresponding to the percentage of
homesteadnew text begin, and the maximum credit equals $490 multiplied by the percentage of homesteadnew text end.
The percentage of homestead is equal to 100 divided by the number of owners of the property,
or, in the case of a trust, the number of grantors of the trust that owns the property.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2019 and thereafter.
new text end

Sec. 12.

Minnesota Statutes 2016, section 273.1384, subdivision 3, is amended to read:


Subd. 3.

Credit reimbursements.

The county auditor shall determine the tax reductions
allowed under subdivision 2 within the county for each taxes payable year and shall certify
that amount to the commissioner of revenue deleted text beginas a part of the abstracts of tax lists submitted
by the county auditors under section 275.29
deleted text endnew text begin under section 270C.85, subdivision 2, clause
(4)
new text end. Any prior year adjustments shall also be certified deleted text beginon the abstracts of tax listsdeleted text end. 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 proportionately reduce the net tax capacity-based
property tax payable to each local taxing jurisdiction as provided in section 273.1393.

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 2017 Supplement, section 273.1387, subdivision 3, is amended
to read:


Subd. 3.

Credit reimbursements.

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 deleted text beginas a part of the abstracts of tax lists submitted
under section 275.29
deleted text endnew text begin under section 270C.85, subdivision 2, clause (4)new text end. Any prior year
adjustments shall also be certified deleted text beginon the abstracts of tax listsdeleted text end. 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 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 273.18, is amended to read:


273.18 LISTING, VALUATION, AND ASSESSMENT OF EXEMPT PROPERTY
BY COUNTY AUDITORS.

(a) In every sixth year after the year 2010, the county auditor shall enter the description
of each tract of real property exempt by law from taxation, with the name of the owner, and
the assessor shall value and assess the same in the same manner that other real property is
valued and assessed, and shall designate in each case the purpose for which the property is
used.

(b) deleted text beginFor purposes of the apportionment of fire state aid under section 69.021, subdivision
7
,
deleted text end The county auditor shall include deleted text beginon the abstract of assessment of exempt real property
filed under this section
deleted text endnew text begin in the exempt property information that the commissioner may
require under section 270C.85, subdivision 2, clause (4)
new text end, the total number of acres of all
natural resources lands for which in lieu payments are made under sections 477A.11 to
477A.14. The assessor shall estimate its market value, provided that if the assessor is not
able to estimate the market value of the land on a per parcel basis, the assessor shall furnish
the commissioner of revenue with an estimate of the average value per acre of this land
within the county.

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 274.14, is amended to read:


274.14 LENGTH OF SESSION; RECORD.

The board must meet after the second Friday in June on at least one meeting day and
may meet for up to ten consecutive meeting days. The actual meeting dates must be contained
on the valuation notices mailed to each property owner in the county as provided in section
273.121. For this purpose, "meeting days" is defined as any day of the week excluding
Sunday. At the board's discretion, "meeting days" may include Saturday. No action taken
by the county board of review after June 30 is valid, except for corrections permitted in
sections 273.01 and 274.01. The county auditor shall keep an accurate record of the
proceedings and orders of the board. The record must be published like other proceedings
of county commissioners. A copy of the published record must be sent to the commissioner
of revenuedeleted text begin, with the abstract of assessment required by section 274.16deleted text endnew text begin within five days
following final action of the county board of equalization
new text end.

For counties that conduct either regular board of review meetings or open book meetings,
at least one of the meeting days must include a meeting that does not end before 7:00 p.m.
For counties that require taxpayer appointments for the board of review, appointments must
include some available times that extend until at least 7:00 p.m. The county may have a
Saturday meeting in lieu of, or in addition to, the extended meeting times 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. 16.

Minnesota Statutes 2016, section 274.16, is amended to read:


274.16 CORRECTED LISTSdeleted text begin, ABSTRACTSdeleted text end.

The county assessor or, in Ramsey County, the official designated by the board of county
commissioners shall calculate the changes of the assessment lists determined by the county
board of equalization, and make corrections accordingly, in the real or personal lists, or
both, and shall make deleted text beginduplicate abstractsdeleted text endnew text begin duplicatesnew text end of them. One must be filed in the assessor's
office, and one must be forwarded to the commissioner of revenue as provided in section
270C.89.

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 2017 Supplement, 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 for commercial-industrial property is $784,590,000
for taxes payable in 2018 and thereafter. The state general levy for seasonal-recreational
property is $44,190,000 for taxes payable in 2018 and thereafter. 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 deleted text beginon the abstracts of tax lists submitted under section
275.29 that was not reported on the abstracts of assessment submitted under section 270C.89
deleted text endnew text begin
to the commissioner under section 270C.85, subdivision 2, clause (4),
new text end 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 the day following final enactment.
new text end

Sec. 18.

Minnesota Statutes 2016, section 290B.09, subdivision 1, is amended to read:


Subdivision 1.

Determination; payment.

The county auditor shall determine the total
current year's deferred amount of property tax under this chapter in the county, and deleted text beginsubmitdeleted text endnew text begin
report
new text end those amounts deleted text beginas part of the abstracts of tax lists submitted by the county auditors
under section 275.29
deleted text endnew text begin to the commissioner under section 270C.85, subdivision 2, clause (4)new text end.
The commissioner may make changes deleted text beginin the abstracts of tax listsdeleted text end as deemed necessary. The
commissioner of revenue, after such review, shall pay the deferred amount of property tax
to each county treasurer on or before August 31.

The county treasurer shall distribute as part of the October settlement the funds received
as if they had been collected as a part of the property tax.

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 469.177, subdivision 1, is amended to read:


Subdivision 1.

Original net tax capacity.

(a) Upon or after adoption of a tax increment
financing plan, the auditor of any county in which the district is situated shall, upon request
of the authority, certify the original net tax capacity of the tax increment financing district
and that portion of the district overlying any subdistrict as described in the tax increment
financing plan and shall certify in each year thereafter the amount by which the original net
tax capacity has increased or decreased as a result of a change in tax exempt status of
property within the district and any subdistrict, reduction or enlargement of the district or
changes pursuant to subdivision 4. The auditor shall certify the amount within 30 days after
receipt of the request and sufficient information to identify the parcels included in the district.
The certification relates to the taxes payable year as provided in subdivision 6.

(b) If the classification under section 273.13 of property located in a district changes to
a classification that has a different assessment ratio, the original net tax capacity of that
property must be redetermined at the time when its use is changed as if the property had
originally been classified in the same class in which it is classified after its use is changed.

(c) The amount to be added to the original net tax capacity of the district as a result of
previously tax exempt real property within the district becoming taxable equals the net tax
capacity of the real property as most recently assessed pursuant to deleted text beginsection 273.18deleted text endnew text begin information
reported to the commissioner under section 270C.85, subdivision 2, clause (4),
new text end or, if that
assessment was made more than one year prior to the date of title transfer rendering the
property taxable, the net tax capacity assessed by the assessor at the time of the transfer. If
improvements are made to tax exempt property after the municipality approves the district
and before the parcel becomes taxable, the assessor shall, at the request of the authority,
separately assess the estimated market value of the improvements. If the property becomes
taxable, the county auditor shall add to original net tax capacity, the net tax capacity of the
parcel, excluding the separately assessed improvements. If substantial taxable improvements
were made to a parcel after certification of the district and if the property later becomes tax
exempt, in whole or part, as a result of the authority acquiring the property through
foreclosure or exercise of remedies under a lease or other revenue agreement or as a result
of tax forfeiture, the amount to be added to the original net tax capacity of the district as a
result of the property again becoming taxable is the amount of the parcel's value that was
included in original net tax capacity when the parcel was first certified. The amount to be
added to the original net tax capacity of the district as a result of enlargements equals the
net tax capacity of the added real property as most recently certified by the commissioner
of revenue as of the date of modification of the tax increment financing plan pursuant to
section 469.175, subdivision 4.

(d) If the net tax capacity of a property increases because the property no longer qualifies
under the Minnesota Agricultural Property Tax Law, section 273.111; the Minnesota Open
Space Property Tax Law, section 273.112; or the Metropolitan Agricultural Preserves Act,
chapter 473H, the Rural Preserve Property Tax Program under section 273.114, or because
platted, unimproved property is improved or market value is increased after approval of the
plat under section 273.11, subdivision 14a or 14b, the increase in net tax capacity must be
added to the original net tax capacity. If the net tax capacity of a property increases because
the property no longer qualifies for the homestead market value exclusion under section
273.13, subdivision 35, the increase in net tax capacity must be added to original net tax
capacity if the original construction of the affected home was completed before the date the
assessor certified the original net tax capacity of the district.

(e) The amount to be subtracted from the original net tax capacity of the district as a
result of previously taxable real property within the district becoming tax exempt or
qualifying in whole or part for an exclusion from taxable market value, or a reduction in
the geographic area of the district, shall be the amount of original net tax capacity initially
attributed to the property becoming tax exempt, being excluded from taxable market value,
or being removed from the district. If the net tax capacity of property located within the tax
increment financing district is reduced by reason of a court-ordered abatement, stipulation
agreement, voluntary abatement made by the assessor or auditor or by order of the
commissioner of revenue, the reduction shall be applied to the original net tax capacity of
the district when the property upon which the abatement is made has not been improved
since the date of certification of the district and to the captured net tax capacity of the district
in each year thereafter when the abatement relates to improvements made after the date of
certification. The county auditor may specify reasonable form and content of the request
for certification of the authority and any modification thereof pursuant to section 469.175,
subdivision 4
.

(f) If a parcel of property contained a substandard building or improvements described
in section 469.174, subdivision 10, paragraph (e), that were demolished or removed and if
the authority elects to treat the parcel as occupied by a substandard building under section
469.174, subdivision 10, paragraph (b), or by improvements under section 469.174,
subdivision 10
, paragraph (e), the auditor shall certify the original net tax capacity of the
parcel using the greater of (1) the current net tax capacity of the parcel, or (2) the estimated
market value of the parcel for the year in which the building or other improvements were
demolished or removed, but applying the classification rates for the current year.

(g) For a redevelopment district qualifying under section 469.174, subdivision 10,
paragraph (a), clause (4), as a qualified disaster area, the auditor shall certify the value of
the land as the original tax capacity for any parcel in the district that contains a building
that suffered substantial damage as a result of the disaster or emergency.

new text begin EFFECTIVE DATE. new text end

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

Sec. 20. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, section 275.29, 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 16

DEPARTMENT OF REVENUE; MISCELLANEOUS; TECHNICAL CHANGES

Section 1.

Minnesota Statutes 2016, section 272.02, subdivision 27, is amended to read:


Subd. 27.

Superior National Forest; recreational property for use by deleted text begindisableddeleted text end
veteransnew text begin with a disabilitynew text end.

Real and personal property is exempt if it is located in the
Superior National Forest, and owned or leased and operated by a nonprofit organization
that is exempt from federal income taxation under section 501(c)(3) of the Internal Revenue
Code and primarily used to provide recreational opportunities for deleted text begindisableddeleted text end veterans new text beginwith a
disability
new text endand their families.

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 272.02, subdivision 81, is amended to read:


Subd. 81.

Certain recreational property for deleted text begindisableddeleted text end veteransnew text begin with a disabilitynew text end.

Real
and personal property is exempt if it is located in a county in the metropolitan area with a
population of less than 500,000 according to the 2000 federal census, and owned or leased
and operated by a nonprofit organization, and primarily used to provide recreational
opportunities for deleted text begindisableddeleted text end veterans new text beginwith a disability new text endand their families.

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 273.032, is amended to read:


273.032 MARKET VALUE DEFINITION.

(a) Unless otherwise provided, for the purpose of determining any property tax levy
limitation based on market value or any limit on net debt, the issuance of bonds, certificates
of indebtedness, or capital notes based on market value, any qualification to receive state
aid based on market value, or any state aid amount based on market value, the terms "market
value," "estimated market value," and "market valuation," whether equalized or unequalized,
mean the estimated market value of taxable property within the local unit of government
before any of the following or similar adjustments for:

(1) the market value exclusions under:

(i) section 273.11, subdivisions 14a and 14c (vacant platted land);

(ii) section 273.11, subdivision 16 (certain improvements to homestead property);

(iii) section 273.11, subdivisions 19 and 20 (certain improvements to business properties);

(iv) section 273.11, subdivision 21 (homestead property damaged by mold);

(v) section 273.13, subdivision 34 (homestead of a deleted text begindisableddeleted text end veteran new text beginwith a disability new text endor
family caregiver); or

(vi) section 273.13, subdivision 35 (homestead market value exclusion); or

(2) the deferment of value under:

(i) the Minnesota Agricultural Property Tax Law, section 273.111;

(ii) the Aggregate Resource Preservation Law, section 273.1115;

(iii) the Minnesota Open Space Property Tax Law, section 273.112;

(iv) the rural preserves property tax program, section 273.114; or

(v) the Metropolitan Agricultural Preserves Act, section 473H.10; or

(3) the adjustments to tax capacity for:

(i) tax increment financing under sections 469.174 to 469.1794;

(ii) fiscal disparities under chapter 276A or 473F; or

(iii) powerline credit under section 273.425.

(b) Estimated market value under paragraph (a) also includes the market value of
tax-exempt property if the applicable law specifically provides that the limitation,
qualification, or aid calculation includes tax-exempt property.

(c) Unless otherwise provided, "market value," "estimated market value," and "market
valuation" for purposes of property tax levy limitations and calculation of state aid, refer
to the estimated market value for the previous assessment year and for purposes of limits
on net debt, the issuance of bonds, certificates of indebtedness, or capital notes refer to the
estimated market value as last finally equalized.

(d) For purposes of a provision of a home rule charter or of any special law that is not
codified in the statutes and that imposes a levy limitation based on market value or any limit
on debt, the issuance of bonds, certificates of indebtedness, or capital notes based on market
value, the terms "market value," "taxable market value," and "market valuation," whether
equalized or unequalized, mean "estimated market value" as defined in paragraph (a).

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 2017 Supplement, 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 deleted text beginblinddeleted text end person new text beginwho is
blind
new text endand the deleted text beginblind person'sdeleted text end spousenew text begin of the person who is blindnew text end;

(2) any person who is permanently and totally disabled or by the deleted text begindisableddeleted text end person new text beginwith
a disability
new text endand the deleted text begindisabled person'sdeleted text end spousenew text begin of the person with a disabilitynew text end; or

(3) the surviving spouse of a new text beginveteran who was new text endpermanently and totally disabled deleted text beginveterandeleted text end
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 is classified as class 1a or class 2a property, whichever is
appropriate.

(c) Class 1c property is commercial use real and personal property that abuts public
water as defined in section 103G.005, subdivision 15, or abuts a state trail administered by
the Department of Natural Resources, 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 the day following final enactment.
new text end

Sec. 5.

Minnesota Statutes 2017 Supplement, section 273.13, subdivision 34, is amended
to read:


Subd. 34.

Homestead of deleted text begindisableddeleted text end veteran new text beginwith a disability new text endor 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 deleted text begindisableddeleted text end veteran new text beginwith a disability new text endqualifying 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 application under paragraph (h),
and a spouse must notify the assessor if there is a change in the spouse's marital status,
ownership of the property, or use of the property as a permanent residence.

(d) If the spouse of a member of any branch or unit of the United States armed forces
who dies due to a service-connected cause while serving honorably in active service, as
indicated on United States Government Form DD1300 or DD2064, holds the legal or
beneficial title to a homestead and permanently resides there, the spouse is entitled to the
benefit described in paragraph (b), clause (2), 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 of the first assessment year for which the exclusion is sought.
For an application received after July 1, the exclusion shall become effective for the following
assessment year. Except as provided in paragraph (c), the owner of a property that has been
accepted for a valuation exclusion must notify the assessor if there is a change in ownership
of the property or in the use of the property as a homestead.

(i) A first-time application by a qualifying spouse for the market value exclusion under
paragraph (d) must be made any time within two years of the death of the service member.

(j) For purposes of this subdivision:

(1) "active service" has the meaning given in section 190.05;

(2) "own" means that the person's name is present as an owner on the property deed;

(3) "primary family caregiver" means a person who is approved by the secretary of the
United States Department of Veterans Affairs for assistance as the primary provider of
personal care services for an eligible veteran under the Program of Comprehensive Assistance
for Family Caregivers, codified as United States Code, title 38, section 1720G; and

(4) "veteran" has the meaning given the term in section 197.447.

(k) If a veteran 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:

(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;

(2) upon the death of the veteran, the spouse holds the legal or beneficial title to the
homestead and permanently resides there;

(3) the veteran met the honorable discharge requirements of paragraph (a); and

(4) the United States Department of Veterans Affairs certifies that:

(i) the veteran met the total (100 percent) and permanent disability requirement under
paragraph (b), clause (2); or

(ii) the spouse has been awarded dependency and indemnity compensation.

(l) The purpose of this provision of law providing a level of homestead property tax
relief for deleted text begingravely disableddeleted text end veteransnew text begin with a disabilitynew text end, their primary family caregivers, and
their surviving spouses is to help ease the burdens of war for those among our state's citizens
who bear those burdens most heavily.

(m) By July 1, the county veterans service officer must certify the disability rating and
permanent address of each veteran receiving the benefit under paragraph (b) to the assessor.

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.08, subdivision 6, is amended to read:


Subd. 6.

Returns of married persons.

deleted text beginA husband and wifedeleted text endnew text begin Individuals who are married
to each other
new text end must file a joint Minnesota income tax return if they filed a joint federal income
tax return. If the deleted text beginhusband and wifedeleted text endnew text begin spousesnew text end have elected to file separate federal income tax
returns, they must file separate Minnesota income tax returns. This election to file a joint
or separate return must be changed if they change their election for federal purposes. In the
event taxpayers desire to change their election, the change must be done in the manner and
on the form prescribed by the commissioner.

The determination of whether an individual is married shall be made under the provisions
of section 7703 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. 7.

Minnesota Statutes 2016, section 289A.25, subdivision 1, is amended to read:


Subdivision 1.

Requirements to pay.

An individual, trust, S corporation, or partnership
must, when prescribed in subdivision 3, paragraph (b), make payments of estimated tax.
For individuals, the term "estimated tax" means the amount the taxpayer estimates is the
sum of the taxes imposed by chapter 290 for the taxable year. For trusts, S corporations,
and partnerships, the term estimated tax means the amount the taxpayer estimates is the
sum of the taxes for the taxable year imposed by chapter 290 and the composite income tax
imposed by section 289A.08, subdivision 7. If the individual is an infant or incompetent
person, the payments must be made by the individual's guardian. If joint payments on
estimated tax are made but a joint return is not made for the taxable year, the estimated tax
for that year may be treated as the estimated tax of either deleted text beginthe husband or the wifedeleted text endnew text begin spousenew text end or
may be divided between them.

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.31, subdivision 2, is amended to read:


Subd. 2.

Joint income tax returns.

(a) If a joint income tax return is made by deleted text begina husband
and wife
deleted text endnew text begin spousesnew text end, the liability for the tax is joint and several. A spouse who qualifies for
relief from a liability attributable to an underpayment under section 6015(b) of the Internal
Revenue Code is relieved of the state income tax liability on the underpayment.

(b) In the case of individuals who were deleted text begina husband and wifedeleted text endnew text begin married as determined in
section 7703 of the Internal Revenue Code
new text end prior to the dissolution of their marriage or their
legal separation, or prior to the death of one of the individuals, for tax liabilities reported
on a joint or combined return, the liability of each person is limited to the proportion of the
tax due on the return that equals that person's proportion of the total tax due if deleted text beginthe husband
and wife
deleted text endnew text begin each spousenew text end filed separate returns for the taxable year. This provision is effective
only when the commissioner receives written notice of the marriage dissolution, legal
separation, or death of a spouse from the deleted text beginhusband or wifedeleted text endnew text begin surviving spousenew text end. No refund may
be claimed by an ex-spouse, legally separated or widowed spouse for any taxes paid more
than 60 days before receipt by the commissioner of the written notice.

(c) A request for calculation of separate liability pursuant to paragraph (b) for taxes
reported on a return must be made within six years after the due date of the return. For
calculation of separate liability for taxes assessed by the commissioner under section 289A.35
or 289A.37, the request must be made within six years after the date of assessment. The
commissioner is not required to calculate separate liability if the remaining unpaid liability
for which recalculation is requested is $100 or less.

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.37, subdivision 6, is amended to read:


Subd. 6.

Order of assessment if joint income tax return.

If a joint income tax return
is filed by deleted text begina husband and wifedeleted text endnew text begin spousesnew text end, an order of assessment may be a single joint notice.
If the commissioner has been notified by either spouse that that spouse's address has changed
and if that spouse requests it, then, instead of the single joint notice mailed to the last known
address of the deleted text beginhusband and wifedeleted text endnew text begin spousesnew text end, a duplicate or original of the joint notice must be
sent to the requesting spouse at the address designated by the requesting spouse. The other
joint notice must be mailed to the other spouse at that spouse's last known address. An
assessment is not invalid for failure to send it to a spouse if the spouse actually receives the
notice in the same period as if it had been mailed to that spouse at the correct address or if
the spouse has failed to provide an address to the commissioner other than the last known
address.

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 290.0802, subdivision 2, is amended to read:


Subd. 2.

Subtraction.

(a) A qualified individual is allowed a subtraction from federal
taxable income of the individual's subtraction base amount. The excess of the subtraction
base amount over the taxable net income computed without regard to the subtraction for
the elderly or deleted text begindisableddeleted text endnew text begin a person with a disabilitynew text end under section 290.0132, subdivision 5,
may be used to reduce the amount of a lump sum distribution subject to tax under section
290.032.

(b)(1) The initial subtraction base amount equals

(i) $12,000 for a married taxpayer filing a joint return if a spouse is a qualified individual,

(ii) $9,600 for a single taxpayer, and

(iii) $6,000 for a married taxpayer filing a separate federal return.

(2) The qualified individual's initial subtraction base amount, then, must be reduced by
the sum of nontaxable retirement and disability benefits and one-half of the amount of
adjusted gross income in excess of the following thresholds:

(i) $18,000 for a married taxpayer filing a joint return if both spouses are qualified
individuals,

(ii) $14,500 for a single taxpayer or for a married couple filing a joint return if only one
spouse is a qualified individual, and

(iii) $9,000 for a married taxpayer filing a separate federal return.

(3) In the case of a qualified individual who is under the age of 65, the maximum amount
of the subtraction base may not exceed the taxpayer's disability income.

(4) The resulting amount is the subtraction base amount.

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 290.0802, subdivision 3, is amended to read:


Subd. 3.

Restrictions; married couples.

Except in the case of deleted text begina husband and wifedeleted text endnew text begin
spouses
new text end who live apart at all times during the taxable year, if the taxpayer is married at the
close of the taxable year, the subtraction under subdivision 2 is allowable only if the taxpayers
file joint federal and state income tax returns for the taxable 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. 12.

Minnesota Statutes 2017 Supplement, section 290.091, subdivision 2, is amended
to read:


Subd. 2.

Definitions.

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

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

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

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

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

(ii) the medical expense deduction;

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

(iv) the impairment-related work expenses of a deleted text begindisableddeleted text end personnew text begin with a disabilitynew text end;

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

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

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

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

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

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

(iv) amounts subtracted from federal taxable income as provided by section 290.0132,
subdivisions 7
, 9 to 15, 17, 21, 24, and 26; and

(v) 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 the day following final enactment.
new text end

Sec. 13.

Minnesota Statutes 2017 Supplement, section 290A.03, subdivision 3, is amended
to read:


Subd. 3.

Income.

(a) "Income" means the sum of the following:

(1) federal adjusted gross income as defined in the Internal Revenue Code; and

(2) the sum of the following amounts to the extent not included in clause (1):

(i) all nontaxable income;

(ii) the amount of a passive activity loss that is not disallowed as a result of section 469,
paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss
carryover allowed under section 469(b) of the Internal Revenue Code;

(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a
solvent individual excluded from gross income under section 108(g) of the Internal Revenue
Code;

(iv) cash public assistance and relief;

(v) any pension or annuity (including railroad retirement benefits, all payments received
under the federal Social Security Act, Supplemental Security Income, and veterans benefits),
which was not exclusively funded by the claimant or spouse, or which was funded exclusively
by the claimant or spouse and which funding payments were excluded from federal adjusted
gross income in the years when the payments were made;

(vi) interest received from the federal or a state government or any instrumentality or
political subdivision thereof;

(vii) workers' compensation;

(viii) nontaxable strike benefits;

(ix) the gross amounts of payments received in the nature of disability income or sick
pay as a result of accident, sickness, or other disability, whether funded through insurance
or otherwise;

(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
1986, as amended through December 31, 1995;

(xi) contributions made by the claimant to an individual retirement account, including
a qualified voluntary employee contribution; simplified employee pension plan;
self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of
the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal
Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for
the claimant and spouse;

(xii) to the extent not included in federal adjusted gross income, distributions received
by the claimant or spouse from a traditional or Roth style retirement account or plan;

(xiii) nontaxable scholarship or fellowship grants;

(xiv) 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 "federal adjusted gross income" shall mean federal adjusted gross income reflected in
the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced
by the amount of a net operating loss carryback or carryforward or a capital loss carryback
or carryforward allowed for the year.

(b) "Income" does not include:

(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;

(2) amounts of any pension or annuity which was exclusively funded by the claimant
or spouse and which funding payments were not excluded from federal adjusted gross
income in the years when the payments were made;

(3) to the extent included in federal adjusted gross income, amounts contributed by the
claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed
the retirement base amount reduced by the amount of contributions excluded from federal
adjusted gross income, but not less than zero;

(4) surplus food or other relief in kind supplied by a governmental agency;

(5) relief granted under this chapter;

(6) child support payments received under a temporary or final decree of dissolution or
legal separation; 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 deleted text beginwas disableddeleted text endnew text begin had a disabilitynew text end 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)(C) 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. 14.

Minnesota Statutes 2016, section 290A.03, subdivision 4, is amended to read:


Subd. 4.

Household.

"Household" means a claimant and an individual related to the
claimant as deleted text beginhusband or wifedeleted text endnew text begin the claimant's spousenew text end who are domiciled in the same homestead.

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 2017 Supplement, section 290A.03, subdivision 8, is amended
to read:


Subd. 8.

Claimant.

(a) "Claimant" means a person, other than a dependent, as defined
under sections 151 and 152 of the Internal Revenue Code disregarding section 152(b)(3)
of the Internal Revenue Code, who filed a claim authorized by this chapter and who was a
resident of this state as provided in chapter 290 during the calendar year for which the claim
for relief was filed.

(b) In the case of a claim relating to rent constituting property taxes, the claimant shall
have resided in a rented or leased unit on which ad valorem taxes or payments made in lieu
of ad valorem taxes, including payments of special assessments imposed in lieu of ad valorem
taxes, are payable at some time during the calendar year covered by the claim.

(c) "Claimant" shall not include a resident of a nursing home, intermediate care facility,
long-term residential facility, or a facility that accepts housing support payments whose
rent constituting property taxes is paid pursuant to the Supplemental Security Income
program under title XVI of the Social Security Act, the Minnesota supplemental aid program
under sections 256D.35 to 256D.54, the medical assistance program pursuant to title XIX
of the Social Security Act, or the housing support program under chapter 256I.

If only a portion of the rent constituting property taxes is paid by these programs, the
resident shall be a claimant for purposes of this chapter, but the refund calculated pursuant
to section 290A.04 shall be multiplied by a fraction, the numerator of which is income as
defined in subdivision 3, paragraphs (a) and (b), reduced by the total amount of income
from the above sources other than vendor payments under the medical assistance program
and the denominator of which is income as defined in subdivision 3, paragraphs (a) and (b),
plus vendor payments under the medical assistance program, to determine the allowable
refund pursuant to this chapter.

(d) Notwithstanding paragraph (c), if the claimant was a resident of the nursing home,
intermediate care facility, long-term residential facility, or facility for which the rent was
paid for the claimant by the housing support program for only a portion of the calendar year
covered by the claim, the claimant may compute rent constituting property taxes by
disregarding the rent constituting property taxes from the nursing home or facility and use
only that amount of rent constituting property taxes or property taxes payable relating to
that portion of the year when the claimant was not in the facility. The claimant's household
income is the income for the entire calendar year covered by the claim.

(e) In the case of a claim for rent constituting property taxes of a part-year Minnesota
resident, the income and rental reflected in this computation shall be for the period of
Minnesota residency only. Any rental expenses paid which may be reflected in arriving at
federal adjusted gross income cannot be utilized for this computation. When two individuals
of a household are able to meet the qualifications for a claimant, they may determine among
them as to who the claimant shall be. If they are unable to agree, the matter shall be referred
to the commissioner of revenue whose decision shall be final. If a homestead property owner
was a part-year Minnesota resident, the income reflected in the computation made pursuant
to section 290A.04 shall be for the entire calendar year, including income not assignable to
Minnesota.

(f) If a homestead is occupied by two or more renters, who are not deleted text beginhusband and wifedeleted text endnew text begin
married to each other
new text end, the rent shall be deemed to be paid equally by each, and separate
claims shall be filed by each. The income of each shall be each renter's household income
for purposes of computing the amount of credit to be allowed.

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 290A.05, is amended to read:


290A.05 COMBINED HOUSEHOLD INCOME.

If a person occupies a homestead with another person deleted text beginor personsdeleted text end not related to the person
as deleted text beginhusband and wifedeleted text endnew text begin the person's spousenew text end, excluding dependents, roomers or boarders on
contract, and has property tax payable with respect to the homestead, the household income
of the claimant or claimants for the purpose of computing the refund allowed by section
290A.04 shall include the total income received by the other persons residing in the
homestead. For purposes of this section, "dependent" includes a parent of the claimant or
spouse who lives in the claimant's homestead and does not have an ownership interest in
the homestead. If a person occupies a homestead with another person or persons not relatednew text begin
to the person
new text end as deleted text beginhusband and wifedeleted text endnew text begin the person's spousenew text end or as dependents, the property tax
payable or rent constituting property tax shall be reduced as follows.

If the other person or persons are residing at the homestead under rental or lease
agreement, the amount of property tax payable or rent constituting property tax shall be that
portion not covered by the rental agreement.

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 290A.08, is amended to read:


290A.08 ONE CLAIMANT PER HOUSEHOLD.

Only one claimant per household per year is entitled to relief under this chapter. Payment
of the claim for relief may be made payable to the deleted text beginhusband and wifedeleted text endnew text begin spousesnew text end as one claimant.
The commissioner, upon written request, may issue separate checks, to the deleted text beginhusband and
wife
deleted text endnew text begin spousesnew text end for one-half of the relief provided the original check has not been issued or
has been returned. Individuals related as deleted text beginhusband and wifedeleted text endnew text begin spousesnew text end who were married during
the year may elect to file a joint claim which shall include each spouse's income, rent
constituting property taxes, and property taxes payable. deleted text beginHusbands and wivesdeleted text endnew text begin Spousesnew text end who
were married for the entire year and were domiciled in the same household for the entire
year must file a joint claim. The maximum dollar amount allowable for a joint claim shall
not exceed the amount that one person could receive.

new text begin EFFECTIVE DATE. new text end

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

Sec. 18.

Minnesota Statutes 2016, section 290A.09, is amended to read:


290A.09 PROOF OF CLAIM.

Every claimant shall supply to the commissioner of revenue, in support of the claim,
proof of eligibility under this chapter, including but not limited to amount of rent paid or
property taxes accrued, name and address of owner or managing agent of property rented,
changes in homestead, household membership, household income, size and nature of property
claimed as a homestead.

deleted text begin Disableddeleted text end Personsnew text begin with a disabilitynew text end filing claims shall submit proof of disability in the
form and manner as the commissioner may prescribe. The department may require
examination and certification by the claimant's physician or by a physician designated by
the commissioner. The cost of any examination shall be borne by the claimant, unless the
examination proves the disability, in which case the cost of the examination shall be borne
by the commissioner.

A determination of disability of a claimant by the Social Security Administration under
Title II or Title XVI of the Social Security Act shall constitute presumptive proof of disability.

new text begin EFFECTIVE DATE. new text end

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

Sec. 19.

Minnesota Statutes 2016, section 297A.61, subdivision 18, is amended to read:


Subd. 18.

deleted text beginDisableddeleted text endnew text begin Person with a disabilitynew text end.

"deleted text beginDisableddeleted text endnew text begin Person with a disabilitynew text end" means
an individual who has a permanent and total disability as defined in section 273.13,
subdivision 22
.

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 2017 Supplement, section 297A.67, subdivision 6, is amended
to read:


Subd. 6.

Other exempt meals.

(a) Prepared food, candy, and soft drinks purchased for
and served exclusively to individuals who are 60 years of age or over and their spouses or
to deleted text begindisableddeleted text end personsnew text begin with a disabilitynew text end and their spouses by governmental agencies, nonprofit
organizations, or churches, or pursuant to any program funded in whole or in part through
United States Code, title 42, sections 3001 through 3045, wherever delivered, prepared, or
served, are exempt. Taxable food sold through vending machines is not exempt.

(b) Prepared food, candy, and soft drinks purchased for and served exclusively to children
who are less than 14 years of age or deleted text begindisableddeleted text end childrennew text begin with a disabilitynew text end who are less than
16 years of age and who are attending a child care or early childhood education program,
are exempt if they are:

(1) purchased by a nonprofit child care facility that is exempt under section 297A.70,
subdivision 4
, and that primarily serves families with income of 250 percent or less of
federal poverty guidelines; and

(2) prepared at the site of the child care facility.

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 297A.67, subdivision 12, is amended to read:


Subd. 12.

Parts and accessories used to make a motor vehicle deleted text begindisableddeleted text end accessiblenew text begin
to a person with a disability
new text end.

Parts, accessories, and labor charges that are used solely to
modify a motor vehicle to make it deleted text begindisableddeleted text end accessiblenew text begin to persons with a disabilitynew text end are exempt.

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 297A.70, subdivision 3, is amended to read:


Subd. 3.

Sales of certain goods and services to government.

(a) The following sales
to or use by the specified governments and political subdivisions of the state are exempt:

(1) repair and replacement parts for emergency rescue vehicles, fire trucks, and fire
apparatus to a political subdivision;

(2) machinery and equipment, except for motor vehicles, used directly for mixed
municipal solid waste management services at a solid waste disposal facility as defined in
section 115A.03, subdivision 10;

(3) chore and homemaking services to a political subdivision of the state to be provided
to elderlynew text begin individualsnew text end or deleted text begindisabled individualsdeleted text endnew text begin persons with a disabilitynew text end;

(4) telephone services to the Office of MN.IT Services that are used to provide
telecommunications services through the MN.IT services revolving fund;

(5) firefighter personal protective equipment as defined in paragraph (b), if purchased
or authorized by and for the use of an organized fire department, fire protection district, or
fire company regularly charged with the responsibility of providing fire protection to the
state or a political subdivision;

(6) bullet-resistant body armor that provides the wearer with ballistic and trauma
protection, if purchased by a law enforcement agency of the state or a political subdivision
of the state, or a licensed peace officer, as defined in section 626.84, subdivision 1;

(7) motor vehicles purchased or leased by political subdivisions of the state if the vehicles
are exempt from registration under section 168.012, subdivision 1, paragraph (b), exempt
from taxation under section 473.448, or exempt from the motor vehicle sales tax under
section 297B.03, clause (12);

(8) equipment designed to process, dewater, and recycle biosolids for wastewater
treatment facilities of political subdivisions, and materials incidental to installation of that
equipment;

(9) the removal of trees, bushes, or shrubs for the construction and maintenance of roads,
trails, or firebreaks when purchased by an agency of the state or a political subdivision of
the state;

(10) purchases by the Metropolitan Council or the Department of Transportation of
vehicles and repair parts to equip operations provided for in section 174.90, including, but
not limited to, the Northstar Corridor Rail project; and

(11) purchases of water used directly in providing public safety services by an organized
fire department, fire protection district, or fire company regularly charged with the
responsibility of providing fire protection to the state or a political subdivision.

(b) For purposes of this subdivision, "firefighters personal protective equipment" means
helmets, including face shields, chin straps, and neck liners; bunker coats and pants, including
pant suspenders; boots; gloves; head covers or hoods; wildfire jackets; protective coveralls;
goggles; self-contained breathing apparatus; canister filter masks; personal alert safety
systems; spanner belts; optical or thermal imaging search devices; and all safety equipment
required by the Occupational Safety and Health Administration.

(c) For purchases of items listed in paragraph (a), clause (10), 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 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 2017 Supplement, section 297A.70, subdivision 4, is amended
to read:


Subd. 4.

Sales to nonprofit groups.

(a) All sales, except those listed in paragraph (b),
to the following "nonprofit organizations" are exempt:

(1) a corporation, society, association, foundation, or institution organized and operated
exclusively for charitable, religious, or educational purposes if the item purchased is used
in the performance of charitable, religious, or educational functions;

(2) any senior citizen group or association of groups that:

(i) in general limits membership to persons who are either age 55 or older, or deleted text beginphysically
disabled
deleted text endnew text begin persons with a physical disabilitynew text end;

(ii) is organized and operated exclusively for pleasure, recreation, and other nonprofit
purposes, not including housing, no part of the net earnings of which inures to the benefit
of any private shareholders; and

(iii) is an exempt organization under section 501(c) of the Internal Revenue Code; and

(3) an organization that qualifies for an exemption for memberships under subdivision
12 if the item is purchased and used in the performance of the organization's mission.

For purposes of this subdivision, charitable purpose includes the maintenance of a cemetery
owned by a religious organization.

(b) This exemption does not apply to the following sales:

(1) building, construction, or reconstruction materials purchased by a contractor or a
subcontractor as a part of a lump-sum contract or similar type of contract with a guaranteed
maximum price covering both labor and materials for use in the construction, alteration, or
repair of a building or facility;

(2) construction materials purchased by tax-exempt entities or their contractors to be
used in constructing buildings or facilities that will not be used principally by the tax-exempt
entities;

(3) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause (2),
and prepared food, candy, soft drinks, 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 the day following final enactment.
new text end

Sec. 24.

Minnesota Statutes 2016, section 297A.70, subdivision 16, is amended to read:


Subd. 16.

Camp fees.

Fees to camps or other recreation facilities are exempt for:

(1) services primarily for children, adults accompanying children, or persons with
deleted text begin disabilitiesdeleted text endnew text begin a disabilitynew text end; or

(2) educational or religious activities;

deleted text begin anddeleted text endnew text begin ifnew text end the camp or facilities are owned and operated by an exempt organization under section
501(c)(3) 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. 25.

Minnesota Statutes 2016, section 297A.71, subdivision 22, is amended to read:


Subd. 22.

Materials used to make residential property deleted text begindisableddeleted text end accessiblenew text begin to persons
with a disability
new text end.

Building materials and equipment sold to, or stored, used, or consumed
by, a nonprofit organization are exempt if:

(1) the materials and equipment are used or incorporated into modifying an existing
residential structure to make it deleted text begindisableddeleted text end accessiblenew text begin to persons with a disabilitynew text end; and

(2) the materials and equipment used in the modification would qualify for an exemption
under either subdivision 11 or 12 if made by the current owner of the residence.

For purposes of this subdivision, "nonprofit organization" means any nonprofit
corporation, society, association, foundation, or institution organized and operated exclusively
for charitable, religious, educational, or civic purposes; or a veterans' group exempt from
federal taxation under section 501(c), clause (19), 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. 26.

Minnesota Statutes 2017 Supplement, section 297A.75, subdivision 1, is amended
to read:


Subdivision 1.

Tax collected.

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

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

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

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

(4) building materials used in a residence for deleted text begindisableddeleted text end veteransnew text begin with a disabilitynew text end exempt
under section 297A.71, subdivision 11;

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

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

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

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

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

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

(11) materials, supplies, and equipment for construction, improvement, or expansion
of:

(i) an aerospace defense manufacturing facility exempt under Minnesota Statutes 2014,
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 Minnesota Statutes 2014, section
297A.71, subdivision 46; and

(iv) an industrial measurement manufacturing and controls facility exempt under
Minnesota Statutes 2014, 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, paragraph (a), clause (1), and paragraph (b);

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

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

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

(17) building materials, equipment, and supplies for constructing or replacing real
property exempt under section 297A.71, subdivision 50, paragraph (b).

new text begin EFFECTIVE DATE. new text end

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

Sec. 27.

Minnesota Statutes 2016, section 297B.01, subdivision 14, is amended to read:


Subd. 14.

Purchase price.

(a) "Purchase price" means the total consideration valued
in money for a sale, whether paid in money or otherwise. The purchase price excludes the
amount of a manufacturer's rebate paid or payable to the purchaser. If a motor vehicle is
taken in trade as a credit or as part payment on a motor vehicle taxable under this chapter,
the credit or trade-in value allowed by the person selling the motor vehicle shall be deducted
from the total selling price to establish the purchase price of the vehicle being sold and the
trade-in allowance allowed by the seller shall constitute the purchase price of the motor
vehicle accepted as a trade-in. The purchase price in those instances where the motor vehicle
is acquired by gift or by any other transfer for a nominal or no monetary consideration shall
also include the average value of similar motor vehicles, established by standards and guides
as determined by the motor vehicle registrar. The purchase price in those instances where
a motor vehicle is manufactured by a person who registers it under the laws of this state
shall mean the manufactured cost of such motor vehicle and manufactured cost shall mean
the amount expended for materials, labor, and other properly allocable costs of manufacture,
except that in the absence of actual expenditures for the manufacture of a part or all of the
motor vehicle, manufactured costs shall mean the reasonable value of the completed motor
vehicle.

(b) The term "purchase price" shall not include the portion of the value of a motor vehicle
due solely to modifications necessary to make the motor vehicle deleted text begindisabilitydeleted text end accessiblenew text begin to
persons with a disability
new text end.

(c) The term "purchase price" shall not include the transfer of a motor vehicle by way
of gift between deleted text begina husband and wifedeleted text endnew text begin spousesnew text end or parent and child, or to a nonprofit organization
as provided under subdivision 16, paragraph (c), clause (6), nor shall it include the transfer
of a motor vehicle by a guardian to a ward when there is no monetary consideration and the
title to such vehicle was registered in the name of the guardian, as guardian, only because
the ward was a minor.

(d) The term "purchase price" shall not include the transfer of a motor vehicle as a gift
between a foster parent and foster child. For purposes of this subdivision, a foster relationship
exists, regardless of the age of the child, if (1) a foster parent's home is or was licensed as
a foster family home under Minnesota Rules, parts 2960.3000 to 2960.3340, and (2) the
county verifies that the child was a state ward or in permanent foster care.

(e) There shall not be included in "purchase price" the amount of any tax imposed by
the United States upon or with respect to retail sales whether imposed upon the retailer or
the consumer.

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 2017 Supplement, section 297B.01, subdivision 16, is amended
to read:


Subd. 16.

Sale, sells, selling, purchase, purchased, or acquired.

(a) "Sale," "sells,"
"selling," "purchase," "purchased," or "acquired" means any transfer of title of any motor
vehicle, whether absolutely or conditionally, for a consideration in money or by exchange
or barter for any purpose other than resale in the regular course of business.

(b) Any motor vehicle utilized by the owner only by leasing such vehicle to others or
by holding it in an effort to so lease it, and which is put to no other use by the owner other
than resale after such lease or effort to lease, shall be considered property purchased for
resale.

(c) The terms also shall include any transfer of title or ownership of a motor vehicle by
other means, for or without consideration, except that these terms shall not include:

(1) the acquisition of a motor vehicle by inheritance from or by bequest of, or
transfer-on-death of title by, a decedent who owned it;

(2) the transfer of a motor vehicle which was previously licensed in the names of two
or more joint tenants and subsequently transferred without monetary consideration to one
or more of the joint tenants;

(3) the transfer of a motor vehicle by way of gift from a limited used vehicle dealer
licensed under section 168.27, subdivision 4a, to an individual, when the transfer is with
no monetary or other consideration or expectation of consideration and the parties to the
transfer submit an affidavit to that effect at the time the title transfer is recorded;

(4) the transfer of a motor vehicle by gift between:

(i) spouses;

(ii) parents and a child; or

(iii) grandparents and a grandchild;

(5) the voluntary or involuntary transfer of a motor vehicle between deleted text begina husband and wifedeleted text endnew text begin
spouses
new text end in a divorce proceeding; or

(6) the transfer of a motor vehicle by way of a gift to an organization that is exempt from
federal income taxation under section 501(c)(3) of the Internal Revenue Code when the
motor vehicle will be used exclusively for religious, charitable, or educational purposes.

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.

Laws 2017, First Special Session chapter 1, article 8, section 3, the effective date,
is amended to read:


EFFECTIVE DATE.

This section is effective for new text begin(1) new text endpetitions and appeals filed after
June 30, 2017new text begin, for which notices of entry of order are mailed before July 1, 2018, and (2)
notices of entry of order mailed after June 30, 2018
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

APPENDIX

Repealed Minnesota Statutes: H4385-1

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.

273.1315 CERTIFICATION OF CLASS 1B PROPERTY.

Subdivision 1.

Class 1b homestead declaration before 2009.

Any property owner seeking classification and assessment of the owner's homestead as class 1b property pursuant to section 273.13, subdivision 22, paragraph (b), on or before October 1, 2008, shall file with the commissioner of revenue a 1b homestead declaration, on a form prescribed by the commissioner. The declaration shall contain the following information:

(1) the information necessary to verify that on or before June 30 of the filing year, the property owner or the owner's spouse satisfies the requirements of section 273.13, subdivision 22, paragraph (b), for 1b classification; and

(2) any additional information prescribed by the commissioner.

The declaration must be filed on or before October 1 to be effective for property taxes payable during the succeeding calendar year. The declaration and any supplementary information received from the property owner pursuant to this subdivision shall be subject to chapter 270B. If approved by the commissioner, the declaration remains in effect until the property no longer qualifies under section 273.13, subdivision 22, paragraph (b). Failure to notify the commissioner within 30 days that the property no longer qualifies under that paragraph because of a sale, change in occupancy, or change in the status or condition of an occupant shall result in the penalty provided in section 273.124, subdivision 13b, computed on the basis of the class 1b benefits for the property, and the property shall lose its current class 1b classification.

The commissioner shall provide to the assessor on or before November 1 a listing of the parcels of property qualifying for 1b classification.

Subd. 2.

Class 1b homestead declaration 2009 and thereafter.

(a) Any property owner seeking classification and assessment of the owner's homestead as class 1b property pursuant to section 273.13, subdivision 22, paragraph (b), after October 1, 2008, shall file with the county assessor a class 1b homestead declaration, on a form prescribed by the commissioner of revenue. The declaration must contain the following information:

(1) the information necessary to verify that, on or before June 30 of the filing year, the property owner or the owner's spouse satisfies the requirements of section 273.13, subdivision 22, paragraph (b), for class 1b classification; and

(2) any additional information prescribed by the commissioner.

(b) The declaration must be filed on or before October 1 to be effective for property taxes payable during the succeeding calendar year. The Social Security numbers and income and medical information received from the property owner pursuant to this subdivision are private data on individuals as defined in section 13.02. If approved by the assessor, the declaration remains in effect until the property no longer qualifies under section 273.13, subdivision 22, paragraph (b). Failure to notify the assessor within 30 days that the property no longer qualifies under that paragraph because of a sale, change in occupancy, or change in the status or condition of an occupant shall result in the penalty provided in section 273.124, subdivision 13b, computed on the basis of the class 1b benefits for the property, and the property shall lose its current class 1b classification.

275.29 ABSTRACTS TO COMMISSIONER OF REVENUE.

Not later than March 31, in each year, the county auditor shall make and transmit to the commissioner of revenue, in such form as may be prescribed by the commissioner of revenue, complete abstracts of the tax lists of the county, showing the number of acres of land assessed; its value, including the structures thereon; the value of town and city lots, including structures; the total value of all taxable personal property in the several assessment districts; the aggregate amount of all taxable property in the county, and the total amount of taxes levied therein for state, county, town, and all other purposes for that year.

289A.38 LIMITATIONS ON TIME FOR ASSESSMENT OF TAX.

Subd. 7.

Federal tax changes.

If the amount of income, items of tax preference, deductions, or credits for any year of a taxpayer, or the wages paid by a taxpayer for any period, as reported to the Internal Revenue Service is changed or corrected by the commissioner of Internal Revenue or other officer of the United States or other competent authority, or where a renegotiation of a contract or subcontract with the United States results in a change in income, items of tax preference, deductions, credits, or withholding tax, or, in the case of estate tax, where there are adjustments to the taxable estate, the taxpayer shall report the change or correction or renegotiation results in writing to the commissioner. The report must be submitted within 180 days after the final determination and must be in the form of either an amended Minnesota estate, withholding tax, corporate franchise tax, or income tax return conceding the accuracy of the federal determination or a letter detailing how the federal determination is incorrect or does not change the Minnesota tax. An amended Minnesota income tax return must be accompanied by an amended property tax refund return, if necessary. A taxpayer filing an amended federal tax return must also file a copy of the amended return with the commissioner of revenue within 180 days after filing the amended return.

Subd. 8.

Failure to report change or correction of federal return.

If a taxpayer fails to make a report as required by subdivision 7, the commissioner may recompute the tax, including a refund, based on information available to the commissioner. The tax may be recomputed within six years after the report should have been filed, notwithstanding any period of limitations to the contrary.

Subd. 9.

Report made of change or correction of federal return.

If a taxpayer is required to make a report under subdivision 7, and does report the change or files a copy of the amended return, the commissioner may recompute and reassess the tax due, including a refund (1) within one year after the report or amended return is filed with the commissioner, notwithstanding any period of limitations to the contrary, or (2) within any other applicable period stated in this section, whichever period is longer. The period provided for the carryback of any amount of loss or credit is also extended as provided in this subdivision, notwithstanding any law to the contrary. If the commissioner has completed a field audit of the taxpayer, and, but for this subdivision, the commissioner's time period to adjust the tax has expired, the additional tax due or refund is limited to only those changes that are required to be made to the return which relate to the changes made on the federal return. This subdivision does not apply to sales and use tax.

For purposes of this subdivision and section 289A.42, subdivision 2, a "field audit" is the physical presence of examiners in the taxpayer's or taxpayer's representative's office conducting an examination of the taxpayer with the intention of issuing an assessment or notice of change in tax or which results in the issuing of an assessment or notice of change in tax. The examination may include inspecting a taxpayer's place of business, tangible personal property, equipment, computer systems and facilities, pertinent books, records, papers, vouchers, computer printouts, accounts, and documents.

290.01 DEFINITIONS.

Subd. 29a.

State itemized deduction.

"State itemized deduction" means federal itemized deductions, as defined in section 63(d) of the Internal Revenue Code, disregarding any limitation under section 68 of the Internal Revenue Code, and reduced by the amount of the addition required under section 290.0131, subdivision 13.

290.0131 INDIVIDUALS; ADDITIONS TO FEDERAL TAXABLE INCOME.

Subd. 7.

Fines, fees, and penalties.

The amount of expenses disallowed under section 290.10, subdivision 2, is an addition.

Subd. 11.

Income attributable to domestic production activities.

The amount of the deduction allowable under section 199 of the Internal Revenue Code is an addition.

Subd. 12.

Disallowed itemized deductions.

(a) The amount of disallowed itemized deductions is an addition. The amount of disallowed itemized deductions, plus the addition required under subdivision 3, may not be more than the amount by which the itemized deductions, as allowed under section 63(d) of the Internal Revenue Code, exceeds the amount of the standard deduction as defined in section 63(c) of the Internal Revenue Code.

(b) The amount of disallowed itemized deductions is equal to the lesser of:

(1) three percent of the excess of the taxpayer's federal adjusted gross income over the applicable amount; or

(2) 80 percent of the amount of the itemized deductions otherwise allowable to the taxpayer under the Internal Revenue Code for the taxable year.

(c) "Applicable amount" means $100,000, or $50,000 for a married individual filing a separate return. Each dollar amount is increased by an amount equal to:

(1) that dollar amount, multiplied by

(2) the cost-of-living adjustment determined under section 1(f)(3) of the Internal Revenue Code for the calendar year in which the taxable year begins, by substituting "calendar year 1990" for "calendar year 1992" in subparagraph (B) of section 1(f)(3).

(d) "Itemized deductions" excludes:

(1) the deduction for medical expenses under section 213 of the Internal Revenue Code;

(2) any deduction for investment interest as defined in section 163(d) of the Internal Revenue Code; and

(3) the deduction under section 165(a) of the Internal Revenue Code for casualty or theft losses described in paragraph (2) or (3) of section 165(c) of the Internal Revenue Code or for losses described in section 165(d) of the Internal Revenue Code.

Subd. 13.

Disallowed personal exemption amount.

(a) The amount of disallowed personal exemptions for taxpayers with federal adjusted gross income over the threshold amount is an addition.

(b) The disallowed personal exemption amount is equal to the number of personal exemptions allowed under section 151(b) and (c) of the Internal Revenue Code multiplied by the dollar amount for personal exemptions under section 151(d)(1) and (2) of the Internal Revenue Code, as adjusted for inflation by section 151(d)(4) of the Internal Revenue Code, and by the applicable percentage.

(c) For a married individual filing a separate return, "applicable percentage" means two percentage points for each $1,250, or fraction of that amount, by which the taxpayer's federal adjusted gross income for the taxable year exceeds the threshold amount. For all other filers, applicable percentage means two percentage points for each $2,500, or fraction of that amount, by which the taxpayer's federal adjusted gross income for the taxable year exceeds the threshold amount. The applicable percentage must not exceed 100 percent.

(d) "Threshold amount" means:

(1) $150,000 for a joint return or a surviving spouse;

(2) $125,000 for a head of a household;

(3) $100,000 for an individual who is not married and who is not a surviving spouse or head of a household; and

(4) $75,000 for a married individual filing a separate return.

(e) The thresholds must be increased by an amount equal to:

(1) the threshold dollar amount, multiplied by

(2) the cost-of-living adjustment determined under section 1(f)(3) of the Internal Revenue Code for the calendar year in which the taxable year begins, by substituting "calendar year 1990" for "calendar year 1992" in subparagraph (B) of section 1(f)(3).

290.0132 INDIVIDUALS; SUBTRACTIONS FROM FEDERAL TAXABLE INCOME.

Subd. 8.

Subnational foreign taxes.

(a) For individuals who are allowed a federal foreign tax credit for taxes that do not qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover of subnational foreign taxes for the taxable year is a subtraction, but not to exceed the total subnational foreign taxes reported in claiming the foreign tax credit.

(b) For purposes of this subdivision, "federal foreign tax credit" means the credit allowed under section 27 of the Internal Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed under section 904(c) of the Internal Revenue Code minus national level foreign taxes to the extent they exceed the federal foreign tax credit.

Subd. 19.

Disallowed itemized deductions.

The amount of the limitation on itemized deductions under section 68(b) of the Internal Revenue Code is a subtraction.

Subd. 20.

Disallowed personal exemption.

The amount of the phaseout of personal exemptions under section 151(d) of the Internal Revenue Code is a subtraction.

290.0133 CORPORATIONS; ADDITIONS TO FEDERAL TAXABLE INCOME.

Subd. 13.

Income attributable to domestic production activities.

The amount of the deduction allowable under section 199 of the Internal Revenue Code is an addition.

Subd. 14.

Fines, fees, and penalties.

The amount of expenses disallowed under section 290.10, subdivision 2, is an addition.

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).

290.0921 CORPORATE ALTERNATIVE MINIMUM TAX AFTER 1989.

Subdivision 1.

Tax imposed.

In addition to the taxes computed under this chapter without regard to this section, the franchise tax imposed on corporations includes a tax equal to the excess, if any, for the taxable year of:

(1) 5.8 percent of Minnesota alternative minimum taxable income; over

(2) the tax imposed under section 290.06, subdivision 1, without regard to this section.

Subd. 2.

Definitions.

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

(b) "Alternative minimum taxable net income" is alternative minimum taxable income,

(1) less the exemption amount, and

(2) apportioned or allocated to Minnesota under section 290.17, 290.191, or 290.20.

(c) The "exemption amount" is $40,000, reduced, but not below zero, by 25 percent of the excess of alternative minimum taxable income over $150,000.

(d) "Minnesota alternative minimum taxable income" is alternative minimum taxable net income, less the deductions for alternative tax net operating loss under subdivision 4; and dividends received under subdivision 6. The sum of the deductions under this paragraph may not exceed 90 percent of alternative minimum taxable net income. This limitation does not apply to:

(1) a deduction for dividends paid to or received from a corporation which is subject to tax under section 290.36 and which is a member of an affiliated group of corporations as defined by the Internal Revenue Code; or

(2) a deduction for dividends received from a property and casualty insurer as defined under section 60A.60, subdivision 8, which is a member of an affiliated group of corporations as defined by the Internal Revenue Code and either: (i) the dividend is eliminated in consolidation under Treasury Regulation 1.1502-14(a), as amended through December 31, 1989; or (ii) the dividend is deducted under an election under section 243(b) of the Internal Revenue Code.

Subd. 3a.

Exemptions.

The following entities are exempt from the tax imposed by this section:

(1) cooperatives taxable under subchapter T of the Internal Revenue Code or organized under chapter 308 or a similar law of another state;

(2) corporations subject to tax under section 297I.05, subdivisions 1 to 5;

(3) real estate investment trusts;

(4) regulated investment companies or a fund thereof;

(5) entities having a valid election in effect under section 860D(b) of the Internal Revenue Code; and

(6) small corporations exempt from the federal alternative minimum tax under section 55(e) of the Internal Revenue Code.

Subd. 4.

Alternative tax net operating loss.

(a) An alternative tax net operating loss deduction is allowed from alternative minimum taxable net income equal to the net operating loss deduction allowable for the taxable year under section 290.095 with the following modifications:

(1) The amount of the net operating loss deduction must not exceed 90 percent of alternative minimum taxable net income.

(2) In determining the amount of the net operating loss deduction (i) the net operating loss under section 290.095 must be adjusted as provided in paragraph (b), and (ii) for taxable years beginning after December 31, 1989, section 290.095, subdivision 3, must be applied by substituting "90 percent of alternative minimum taxable net income" for "taxable net income."

(b) The following adjustments must be made to the alternative tax net operating loss deduction under paragraph (a):

(1) For a loss year beginning after December 31, 1989, the net operating loss for each year under section 290.095 must be (i) determined with the adjustments provided in sections 56 and 58 of the Internal Revenue Code, as modified by subdivision 3 and (ii) reduced by the items of tax preference for the year determined under section 57 of the Internal Revenue Code, as modified by subdivision 3.

(2) For a loss year beginning before January 1, 1990, the amount of the net operating loss that may be carried over to taxable years beginning after December 31, 1989, equals the amount which may be carried from the loss year to the first taxable year of the taxpayer beginning after December 31, 1989.

Subd. 6.

Dividends received.

(a) A deduction is allowed from alternative minimum taxable net income equal to the deduction for dividends received under section 290.21, subdivision 4, for purposes of calculating taxable income under section 290.01, subdivision 29.

(b) The amount of the deduction must not exceed 90 percent of alternative minimum taxable net income.

This limitation does not apply to:

(1) dividends paid to or received from a corporation which is subject to tax under section 290.36 and which is a member of an affiliated group of corporations as defined by the Internal Revenue Code; or

(2) dividends received from a property and casualty insurer as defined under section 60A.60, subdivision 8, which is a member of an affiliated group of corporations as defined by the Internal Revenue Code and either: (i) the dividend is eliminated in consolidation under Treasury Regulation 1.1502-14(a), as amended through December 31, 1989; or (ii) the dividend is deducted under an election under section 243(b) of the Internal Revenue Code.

290.10 NONDEDUCTIBLE ITEMS.

Subd. 2.

Fines, fees, and penalties.

(a) Except as provided in this subdivision, no deduction from taxable income for a trade or business expense under section 162(a) of the Internal Revenue Code shall be allowed for any amount paid or incurred, whether by suit, agreement, or otherwise, to, or at the direction of, a government or entity described in paragraph (d) in relation to the violation of any law or the investigation or inquiry by such government or entity into the potential violation of any law.

(b) Exception for amounts constituting restitution or paid to come into compliance with the law. Paragraph (a) does not apply to any amount which:

(1) the taxpayer establishes:

(i) constitutes restitution, including remediation of property for damage or harm caused by or which may be caused by the violation of any law or the potential violation of any law; or

(ii) is paid to come into compliance with any law which was violated or involved in the investigation or inquiry; and

(2) is identified as restitution or as an amount paid to come into compliance with the law, as the case may be, in the court order or settlement agreement.

This paragraph does not apply to any amount paid or incurred as reimbursement to the government or entity for the costs of any investigation or litigation.

(c) Paragraph (a) does not apply to any amount paid or incurred by order of a court in a suit in which no government or entity described in paragraph (d) is a party.

(d) An entity is described in this paragraph if it is:

(1) a nongovernmental entity which exercises self-regulatory powers, including imposing sanctions, in connection with a qualified board or exchange, as defined in section 1256(g)(7) of the Internal Revenue Code, or;

(2) to the extent provided in federal regulations, a nongovernmental entity which exercises self-regulatory powers, including imposing sanctions, as part of performing an essential governmental function.

(e) Paragraph (a) does not apply to any amount paid or incurred as taxes due.

327C.01 DEFINITIONS.

Subd. 13.

Class I manufactured home park.

A "class I manufactured home park" means a park that complies with the provisions of section 327C.16.

327C.16 CLASS I MANUFACTURED HOME PARK.

Subdivision 1.

Qualifications.

(a) To qualify as a class I manufactured home park, as defined in section 327C.01, subdivision 13, a park owner, or on-site attendant as an employee of the manufactured home park, must satisfy 12 hours of qualifying education courses every three years, as prescribed in this subdivision. Park owners or on-site attendants may begin accumulating qualifying hours to qualify as a class I manufactured home park beginning in 2017.

(b) The qualifying education courses required for classification under this subdivision must be continuing education courses approved by the Department of Labor and Industry or the Department of Commerce for:

(1) continuing education in real estate; or

(2) continuing education for residential contractors and manufactured home installers.

(c) The qualifying education courses must include:

(1) two hours on fair housing, approved for real estate licensure or residential contractor licensure;

(2) one hour on the Americans with Disabilities Act, approved for real estate licensure or residential contractor licensure;

(3) four hours on legal compliance related to any of the following: landlord/tenant, licensing requirements, or home financing under chapters 58, 327, 327B, 327C, and 504B, and Minnesota Rules, chapter 1350 or 4630;

(4) three hours of general education approved for real estate, residential contractors, or manufactured home installers; and

(5) two hours of HUD-specific manufactured home installer courses as required under section 327B.041.

(d) If the qualifying owner or employee attendant is no longer the person meeting the requirements under this subdivision, but did qualify during the current assessment year, then the manufactured home park shall still qualify for the class rate provided for class 4c property classified under section 273.13, subdivision 25, paragraph (d), clause (5), item (iii).

Subd. 2.

Proof of compliance.

(a) A park owner that has met the requirements of subdivision 1 shall provide an affidavit to the park owner's county assessor certifying that the park owner, corporate officer, or on-site attendant has complied with subdivision 1 and that the park meets the definition of a class I manufactured home park as defined in this section, and is entitled to the property tax classification rate for class I manufactured home parks in section 273.13, subdivision 25. The park owner shall retain the original course completion certificates issued by the course sponsor under this section for three years and, upon written request for verification, provide these to the county assessor within 30 days.

(b) A park owner must provide the county assessor written notice of any change in compliance status of the manufactured home park no later than December 15 of the assessment year.

477A.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.

Repealed Minnesota Rule: H4385-1

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.