Minnesota Legislature
HF 4385
1st Unofficial Engrossment - 90th Legislature (2017 - 2018) Posted on 05/04/2018 10:03am
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 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
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 5.33 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13 6.14 6.15 6.16 6.17 6.18
6.19 6.20
6.21 6.22 6.23 6.24 6.25 6.26 6.27 6.28 6.29 6.30 6.31 6.32 6.33 6.34 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 8.32 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
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
11.1 11.2 11.3 11.4 11.5 11.6 11.7
11.8 11.9
11.10 11.11 11.12 11.13 11.14 11.15 11.16 11.17 11.18
11.19 11.20 11.21 11.22
11.23 11.24 11.25 11.26 11.27 11.28 11.29 11.30 11.31
12.1 12.2
12.3 12.4 12.5 12.6 12.7 12.8 12.9 12.10 12.11 12.12 12.13 12.14
12.15 12.16
12.17 12.18 12.19 12.20 12.21 12.22 12.23
12.24 12.25
12.26 12.27 12.28 12.29 12.30 12.31 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
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 16.32 17.1 17.2 17.3 17.4 17.5 17.6 17.7 17.8 17.9 17.10 17.11 17.12 17.13 17.14 17.15 17.16
17.17 17.18
17.19 17.20 17.21 17.22 17.23
17.24 17.25
17.26 17.27 17.28 17.29 17.30
17.31 17.32
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
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 21.1 21.2 21.3 21.4 21.5 21.6 21.7 21.8 21.9 21.10 21.11 21.12 21.13 21.14 21.15 21.16 21.17 21.18 21.19 21.20 21.21 21.22 21.23 21.24
21.25 21.26
21.27 21.28 21.29 21.30 21.31 21.32 21.33 22.1 22.2 22.3 22.4 22.5 22.6 22.7 22.8 22.9 22.10 22.11 22.12 22.13 22.14 22.15
22.16 22.17
22.18 22.19 22.20 22.21 22.22 22.23 22.24 22.25 22.26 22.27 22.28 22.29 22.30 22.31 22.32 22.33 22.34 23.1 23.2 23.3 23.4 23.5 23.6 23.7 23.8 23.9 23.10 23.11 23.12 23.13 23.14 23.15 23.16 23.17 23.18 23.19 23.20 23.21 23.22 23.23 23.24 23.25 23.26 23.27 23.28 23.29 23.30 23.31 23.32 23.33 24.1 24.2 24.3 24.4 24.5 24.6 24.7 24.8 24.9
24.10 24.11
24.12 24.13 24.14 24.15 24.16 24.17 24.18 24.19 24.20 24.21 24.22 24.23 24.24 24.25 24.26 24.27 24.28 24.29 24.30 24.31 24.32 25.1 25.2 25.3 25.4 25.5 25.6 25.7 25.8 25.9 25.10 25.11 25.12 25.13 25.14 25.15 25.16 25.17 25.18 25.19 25.20 25.21 25.22 25.23 25.24 25.25 25.26 25.27 25.28 25.29 25.30 25.31 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 27.1 27.2 27.3 27.4 27.5 27.6 27.7 27.8 27.9 27.10 27.11 27.12 27.13 27.14 27.15 27.16 27.17 27.18 27.19 27.20 27.21 27.22 27.23 27.24 27.25 27.26 27.27 27.28 27.29 27.30 27.31 27.32 27.33 28.1 28.2 28.3 28.4 28.5 28.6 28.7 28.8 28.9 28.10 28.11
28.12 28.13
28.14 28.15 28.16 28.17 28.18 28.19 28.20 28.21 28.22 28.23 28.24 28.25 28.26
28.27 28.28
28.29 28.30 28.31 28.32 29.1 29.2 29.3 29.4 29.5 29.6 29.7 29.8 29.9 29.10 29.11 29.12
29.13 29.14
29.15 29.16 29.17 29.18 29.19 29.20 29.21 29.22 29.23 29.24
29.25 29.26
29.27 29.28 29.29 29.30 30.1 30.2 30.3 30.4 30.5 30.6 30.7 30.8 30.9 30.10 30.11 30.12 30.13
30.14 30.15
30.16 30.17 30.18 30.19 30.20 30.21 30.22 30.23 30.24 30.25 30.26 30.27 30.28 30.29 30.30 30.31 31.1 31.2
31.3 31.4
31.5 31.6 31.7 31.8 31.9 31.10 31.11 31.12 31.13 31.14 31.15 31.16 31.17 31.18 31.19 31.20 31.21 31.22 31.23 31.24 31.25 31.26 31.27 31.28 31.29 31.30 31.31 31.32 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
33.1 33.2 33.3 33.4 33.5 33.6 33.7 33.8 33.9 33.10 33.11 33.12 33.13 33.14 33.15 33.16 33.17 33.18 33.19 33.20 33.21 33.22 33.23 33.24 33.25 33.26 33.27 33.28 33.29 33.30 33.31
33.32 33.33
34.1 34.2 34.3 34.4 34.5 34.6 34.7 34.8 34.9 34.10 34.11 34.12 34.13 34.14 34.15 34.16 34.17 34.18 34.19 34.20 34.21
34.22 34.23
34.24 34.25 34.26 34.27 34.28 34.29 34.30 34.31
35.1 35.2
35.3 35.4 35.5 35.6 35.7 35.8 35.9 35.10 35.11 35.12 35.13 35.14 35.15 35.16 35.17 35.18 35.19 35.20 35.21 35.22 35.23 35.24 35.25 35.26 35.27 35.28 35.29 35.30 35.31 36.1 36.2 36.3 36.4 36.5 36.6 36.7 36.8 36.9 36.10 36.11 36.12 36.13 36.14 36.15 36.16 36.17 36.18 36.19 36.20 36.21 36.22 36.23 36.24 36.25 36.26 36.27
36.28 36.29
37.1 37.2 37.3 37.4 37.5 37.6 37.7 37.8 37.9 37.10 37.11 37.12 37.13 37.14 37.15 37.16 37.17 37.18 37.19 37.20
37.21 37.22
37.23 37.24 37.25 37.26 37.27 37.28 37.29 37.31 37.30 37.33 37.32 37.35 37.34 38.2 38.1 38.4 38.3 38.6 38.5 38.7 38.8 38.9 38.10 38.11 38.12 38.13 38.14 38.15 38.16 38.17 38.19 38.18 38.21 38.20 38.23 38.22 38.25 38.24 38.27 38.26 38.29 38.28 38.30 38.31 38.32 38.33 38.34 38.35 38.36 38.37 38.38 38.39 38.40 39.1 39.2 39.3
39.4 39.5
39.6 39.7 39.8 39.9 39.10 39.11 39.12 39.13 39.14 39.15 39.16 39.17 39.18 39.19 39.20 39.21 39.22
39.23 39.24
39.25 39.26 39.27 39.28 39.29 39.30 39.31 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 40.33 41.1 41.2 41.3 41.4 41.5 41.6 41.7 41.8 41.9 41.10 41.11 41.12 41.13 41.14 41.15 41.16 41.17 41.18 41.19 41.20 41.21 41.22 41.23 41.24
41.25
41.26 41.27 41.28 41.29 41.30 41.31 41.32 41.33 42.1 42.2 42.3 42.4 42.5 42.6 42.7 42.8 42.9 42.10 42.11 42.12 42.13 42.14 42.15 42.16 42.17 42.18 42.19 42.20 42.21 42.22 42.23 42.24 42.25 42.26 42.27 42.28 42.29 42.30 42.31 42.32 42.33 42.34 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 44.34 45.1 45.2 45.3 45.4 45.5
45.6
45.7 45.8 45.9 45.10 45.11 45.12 45.13 45.14 45.15 45.16 45.17 45.18 45.19 45.20 45.21 45.22 45.23 45.24 45.25 45.26 45.27 45.28 45.29 45.30 45.31 46.1 46.2 46.3 46.4 46.5 46.6 46.7 46.8 46.9 46.10 46.11 46.12 46.13 46.14 46.15 46.16 46.17 46.18 46.19 46.20 46.21 46.22 46.23 46.24 46.25 46.26 46.27 46.28 46.29 46.30 46.31 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 48.1 48.2 48.3 48.4 48.5 48.6 48.7 48.8 48.9 48.10
48.11 48.12 48.13
48.14 48.15 48.16 48.17 48.18 48.19 48.20 48.21 48.22 48.23 48.24 48.25 48.26 48.27 48.28 48.29 48.30 48.31 48.32 48.33 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 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 50.33 51.1 51.2 51.3 51.4 51.5 51.6 51.7 51.8 51.9 51.10 51.11 51.12
51.13 51.14
51.15 51.16 51.17 51.18 51.19 51.20 51.21 51.22 51.23 51.24 51.25 51.26 51.27 51.28 51.29 51.30 52.1 52.2 52.3 52.4 52.5 52.6 52.7 52.8 52.9 52.10 52.11 52.12 52.13 52.14 52.15
52.16 52.17
52.18 52.19 52.20 52.21 52.22 52.23 52.24 52.25 52.26 52.27 52.28 52.29 52.30 52.31 52.32 53.1 53.2 53.3 53.4 53.5 53.6 53.7 53.8 53.9 53.10 53.11 53.12 53.13 53.14 53.15 53.16 53.17 53.18 53.19 53.20 53.21 53.22 53.23 53.24 53.25 53.26 53.27 53.28 53.29 53.30 53.31 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 54.30
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
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 57.1 57.2 57.3 57.4
57.5
57.6 57.7 57.8 57.9 57.10 57.11 57.12 57.13 57.14 57.15 57.16 57.17 57.18 57.19 57.20 57.21 57.22 57.23 57.24 57.25 57.26 57.27 57.28 57.29 57.30 57.31 57.32 57.33 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 58.32 58.33 58.34 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 59.32
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 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 62.1 62.2 62.3 62.4 62.5 62.6 62.7 62.8 62.9 62.10 62.11
62.12 62.13
62.14 62.15 62.16 62.17 62.18 62.19 62.20
62.21 62.22
62.23 62.24 62.25 62.26 62.27 62.28 62.29
62.30 62.31
63.1 63.2 63.3 63.4 63.5 63.6 63.7 63.8 63.9 63.10 63.11 63.12 63.13 63.14 63.15 63.16 63.17 63.18 63.19 63.20 63.21
63.22 63.23
63.24 63.25 63.26 63.27 63.28 63.29 63.30 63.31 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
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 67.1 67.2 67.3 67.4 67.5 67.6 67.7 67.8 67.9 67.10 67.11 67.12 67.13
67.14 67.15
67.16 67.17 67.18 67.19 67.20 67.21 67.22 67.23 67.24 67.25 67.26 67.27 67.28 67.29 67.30 67.31 67.32 67.33 68.1 68.2 68.3 68.4 68.5 68.6 68.7 68.8 68.9 68.10 68.11 68.12 68.13 68.14 68.15 68.16 68.17 68.18 68.19 68.20 68.21 68.22 68.23 68.24 68.25 68.26 68.27 68.28 68.29 68.30 68.31 68.32 68.33 68.34 68.35 69.1 69.2 69.3 69.4 69.5 69.6 69.7 69.8 69.9 69.10 69.11 69.12 69.13 69.14 69.15 69.16 69.17 69.18 69.19 69.20 69.21 69.22 69.23 69.24 69.25 69.26 69.27 69.28 69.29 69.30 69.31 69.32 69.33 70.1 70.2 70.3 70.4
70.5 70.6
70.7 70.8 70.9 70.10 70.11 70.12 70.13 70.14 70.15 70.16 70.17 70.18 70.19 70.20 70.21 70.22
70.23 70.24
70.25 70.26 70.27 70.28 70.29 70.30 71.1 71.2 71.3 71.4 71.5 71.6 71.7 71.8 71.9 71.10 71.11 71.12 71.13 71.14 71.15 71.16 71.17 71.18 71.19 71.20 71.21 71.22 71.23 71.24 71.25 71.26
71.27 71.28
71.29 71.30 71.31 71.32 71.33 71.34 71.35 71.36 71.37 71.38 71.39
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 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 74.1 74.2 74.3 74.4 74.5 74.6 74.7 74.8 74.9 74.10 74.11 74.12 74.13 74.14 74.15 74.16
74.17 74.18
74.19 74.20 74.21 74.22 74.23 74.24 74.25 74.26 74.27 74.28 74.29 74.30 74.31 74.32 75.1 75.2 75.3 75.4 75.5 75.6 75.7 75.8 75.9 75.10 75.11 75.12 75.13
75.14 75.15
75.16 75.17 75.18 75.19 75.20 75.21
75.22 75.23
75.24 75.25
75.26 75.27 75.28 75.29 75.30 75.31 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 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
81.1 81.2 81.3 81.4 81.5 81.6 81.7 81.8 81.9 81.10 81.11 81.12 81.13 81.14 81.15 81.16 81.17 81.18 81.19 81.20 81.21 81.22 81.23 81.24 81.25 81.26 81.27 81.28 81.29 81.30 81.31
81.32 81.33
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 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 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 87.1 87.2 87.3 87.4 87.5 87.6 87.7 87.8 87.9 87.10 87.11 87.12 87.13 87.14 87.15 87.16 87.17 87.18 87.19 87.20 87.21 87.22 87.23 87.24 87.25 87.26 87.27 87.28 87.29 87.30 87.31 87.32 87.33 88.1 88.2 88.3 88.4 88.5 88.6 88.7 88.8 88.9 88.10 88.11 88.12 88.13 88.14 88.15 88.16 88.17 88.18 88.19 88.20 88.21 88.22 88.23 88.24 88.25 88.26 88.27 88.28 88.29 88.30 88.31 88.32 88.33 89.1 89.2 89.3 89.4 89.5 89.6 89.7 89.8 89.9 89.10 89.11 89.12 89.13 89.14 89.15 89.16 89.17 89.18 89.19 89.20 89.21 89.22 89.23 89.24 89.25 89.26 89.27 89.28 89.29 89.30 89.31 89.32 89.33 90.1 90.2 90.3 90.4 90.5 90.6 90.7 90.8 90.9 90.10 90.11 90.12 90.13 90.14 90.15 90.16 90.17 90.18 90.19 90.20 90.21 90.22 90.23 90.24 90.25 90.26 90.27 90.28 90.29 90.30 90.31 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 91.32 91.33 91.34 92.1 92.2 92.3 92.4 92.5 92.6 92.7 92.8 92.9 92.10 92.11 92.12 92.13 92.14 92.15 92.16 92.17 92.18 92.19 92.20 92.21 92.22 92.23 92.24 92.25 92.26 92.27 92.28 92.29 92.30 92.31 92.32 92.33 92.34 92.35 93.1 93.2 93.3 93.4 93.5 93.6
93.7
93.8 93.9 93.10 93.11 93.12 93.13 93.14 93.15 93.16 93.17 93.18 93.19 93.20 93.21 93.22 93.23 93.24 93.25 93.26 93.27 93.28 93.29 93.30 93.31 93.32 93.33 94.1 94.2 94.3 94.4 94.5 94.6 94.7 94.8 94.9 94.10 94.11 94.12 94.13 94.14 94.15 94.16 94.17 94.18 94.19 94.20 94.21 94.22 94.23 94.24 94.25 94.26 94.27 94.28 94.29 94.30 94.31 94.32 94.33 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 95.32 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 97.30
97.31
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 99.1 99.2 99.3 99.4 99.5 99.6 99.7 99.8 99.9 99.10 99.11
99.12
99.13 99.14 99.15 99.16 99.17 99.18 99.19 99.20 99.21 99.22 99.23 99.24 99.25 99.26 99.27 99.28 99.29 99.30 99.31 99.32 99.33 100.1 100.2 100.3 100.4 100.5 100.6 100.7 100.8 100.9 100.10 100.11
100.12 100.13
100.14 100.15 100.16 100.17 100.18 100.19 100.20 100.21 100.22 100.23 100.24 100.25 100.26 100.27 100.28 100.29 100.30 100.31 100.32 100.33 101.1 101.2 101.3 101.4 101.5 101.6 101.7 101.8 101.9 101.10 101.11 101.12 101.13 101.14 101.15 101.16 101.17 101.18 101.19 101.20 101.21 101.22 101.23 101.24 101.25 101.26 101.27 101.28 101.29 101.30 101.31 101.32 101.33 101.34 102.1 102.2 102.3 102.4 102.5 102.6 102.7 102.8 102.9 102.10 102.11 102.12 102.13 102.14 102.15 102.16 102.17 102.18 102.19 102.20 102.21 102.22 102.23 102.24 102.25 102.26 102.27 102.28 102.29 102.30 102.31 102.32 102.33 102.34 103.1 103.2 103.3 103.4 103.5 103.6 103.7 103.8 103.9 103.10 103.11 103.12 103.13 103.14 103.15 103.16 103.17 103.18 103.19
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
104.27 104.28 104.29 104.30 104.31 105.1 105.2 105.3 105.4 105.5 105.6
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
105.20 105.21 105.22 105.23 105.24 105.25 105.26 105.27 105.28 105.29 105.30 105.31 106.1 106.2 106.3 106.4 106.5 106.6 106.7
106.8 106.9 106.10
106.11 106.12 106.13 106.14 106.15 106.16 106.17 106.18 106.19 106.20 106.21
106.22 106.23 106.24
106.25 106.26 106.27 106.28 106.29 106.30 106.31 106.32 107.1 107.2
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
109.30 110.1 110.2 110.3 110.4 110.5 110.6 110.7 110.8 110.9 110.10 110.11 110.12 110.13 110.14 110.15 110.16 110.17 110.18 110.19 110.20 110.21 110.22 110.23 110.24 110.25 110.26 110.27 110.28 110.29 110.30 110.31 110.32 110.33
110.34
111.1 111.2 111.3 111.4 111.5 111.6 111.7 111.8 111.9 111.10 111.11 111.12 111.13 111.14 111.15 111.16 111.17 111.18 111.19 111.20 111.21 111.22 111.23 111.24 111.25 111.26 111.27 111.28 111.29 111.30 111.31 111.32 112.1 112.2 112.3 112.4 112.5 112.6 112.7 112.8 112.9 112.10 112.11 112.12 112.13 112.14 112.15 112.16 112.17 112.18 112.19 112.20 112.21 112.22 112.23 112.24 112.25 112.26 112.27 112.28 112.29 112.30 112.31 113.1 113.2 113.3 113.4 113.5 113.6 113.7 113.8
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
113.28 113.29 113.30 113.31 114.1 114.2 114.3 114.4 114.5 114.6 114.7 114.8 114.9 114.10 114.11 114.12 114.13 114.14 114.15
114.16
114.17 114.18 114.19 114.20 114.21 114.22 114.23 114.24 114.25 114.26 114.27 114.28 114.29 114.30 114.31 114.32 114.33 115.1 115.2 115.3 115.4 115.5 115.6 115.7 115.8 115.9 115.10 115.11 115.12 115.13 115.14 115.15 115.16 115.17 115.18 115.19 115.20 115.21 115.22 115.23 115.24 115.25 115.26 115.27 115.28 115.29 115.30 115.31 115.32 115.33 115.34 115.35 116.1 116.2 116.3 116.4 116.5
116.6 116.7
116.8 116.9 116.10 116.11 116.12 116.13 116.14 116.15 116.16 116.17 116.18 116.19 116.20 116.21 116.22 116.23 116.24 116.25 116.26 116.27 116.28 116.29 116.30 116.31 116.32 116.33 116.34 117.1 117.2 117.3 117.4 117.5 117.6 117.7 117.8 117.9 117.10 117.11
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
119.20 119.21 119.22 119.23 119.24 119.25 119.26 119.27 119.28 119.29 119.30 120.1 120.2
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
120.22 120.23 120.24 120.25 120.26 120.27 120.28 120.29 120.30 121.1 121.2 121.3 121.4
121.5
121.6 121.7 121.8 121.9 121.10 121.11 121.12 121.13 121.14 121.15 121.16 121.17 121.18 121.19 121.20 121.21 121.22 121.23 121.24 121.25 121.26 121.27 121.28 121.29 121.30 121.31 121.32 122.1 122.2 122.3
122.4 122.5
122.6 122.7 122.8 122.9 122.10 122.11 122.12 122.13 122.14 122.15 122.16 122.17 122.18 122.19 122.20 122.21 122.22 122.23 122.24 122.25 122.26 122.27 122.28 122.29 122.30 122.31 122.32 122.33 122.34 122.35 123.1 123.2 123.3 123.4 123.5 123.6
123.7 123.8
123.9 123.10 123.11 123.12 123.13 123.14 123.15 123.16 123.17 123.18 123.19 123.20 123.21 123.22 123.23 123.24 123.25 123.26 123.27 123.28 123.29 123.30 123.31 123.32 123.33 123.34 124.1 124.2 124.3 124.4 124.5 124.6 124.7 124.8 124.9 124.10 124.11 124.12
124.13 124.14
124.15 124.16
124.17 124.18 124.19 124.20 124.21 124.22 124.23
124.24
124.25 124.26 124.27 124.28 124.29 124.30 125.1 125.2 125.3 125.4 125.5 125.6 125.7 125.8 125.9 125.10 125.11 125.12 125.13 125.14 125.15 125.16 125.17 125.18 125.19 125.20 125.21 125.22 125.23
125.24 125.25
125.26 125.27 125.28 125.29 125.30 125.31 125.32 126.1 126.2 126.3
126.4 126.5
126.6 126.7
126.8 126.9 126.10 126.11 126.12 126.13 126.14 126.15 126.16 126.17 126.18 126.19 126.20 126.21 126.22 126.23 126.24 126.25 126.26 126.27 126.28 126.29 126.30 126.31 127.1 127.2 127.3 127.4 127.5 127.6 127.7 127.8 127.9 127.10 127.11 127.12 127.13 127.14 127.15 127.16 127.17 127.18 127.19 127.20 127.21 127.22 127.23 127.24 127.25 127.26 127.27 127.28 127.29 127.30 127.31 127.32 127.33 128.1 128.2 128.3 128.4 128.5 128.6 128.7 128.8 128.9 128.10 128.11 128.12 128.13 128.14 128.15 128.16 128.17 128.18 128.19 128.20 128.21 128.22 128.23 128.24
128.25 128.26 128.27 128.28
128.29 128.30 128.31 128.32 129.1 129.2 129.3 129.4 129.5 129.6 129.7 129.8 129.9 129.10 129.11 129.12 129.13 129.14 129.15 129.16 129.17 129.18 129.19 129.20 129.21 129.22 129.23 129.24
129.25 129.26 129.27 129.28
129.29 129.30 129.31 129.32 130.1 130.2 130.3 130.4 130.5 130.6 130.7 130.8 130.9 130.10 130.11 130.12 130.13 130.14 130.15 130.16
130.17 130.18 130.19 130.20
130.21 130.22 130.23 130.24 130.25 130.26 130.27 130.28 130.29 130.30 130.31
130.32 130.33 131.1 131.2
131.3 131.4 131.5 131.6 131.7 131.8 131.9 131.10 131.11 131.12 131.13 131.14 131.15 131.16 131.17 131.18 131.19 131.20 131.21 131.22 131.23 131.24 131.25 131.26 131.27 131.28 131.29 131.30 131.31 132.1 132.2 132.3 132.4 132.5 132.6 132.7 132.8 132.9 132.10 132.11 132.12 132.13 132.14 132.15 132.16 132.17 132.18 132.19 132.20 132.21 132.22 132.23 132.24 132.25 132.26 132.27 132.28 132.29 132.30 132.31 132.32 133.1 133.2 133.3 133.4 133.5 133.6 133.7 133.8 133.9 133.10
133.11 133.12 133.13 133.14
133.15 133.16 133.17 133.18 133.19 133.20 133.21 133.22 133.23 133.24 133.25 133.26 133.27 133.28 133.29
133.30 133.31 134.1 134.2
134.3 134.4 134.5 134.6 134.7 134.8 134.9 134.10 134.11 134.12 134.13 134.14 134.15 134.16 134.17 134.18 134.19 134.20 134.21 134.22 134.23 134.24 134.25 134.26 134.27 134.28 134.29 134.30 134.31 135.1 135.2 135.3 135.4 135.5 135.6 135.7 135.8 135.9 135.10 135.11 135.12 135.13 135.14 135.15 135.16 135.17 135.18 135.19 135.20 135.21 135.22 135.23 135.24 135.25 135.26 135.27 135.28 135.29 135.30 135.31 135.32 135.33 136.1 136.2 136.3 136.4 136.5 136.6 136.7 136.8 136.9 136.10 136.11 136.12 136.13 136.14 136.15 136.16 136.17 136.18 136.19 136.20 136.21 136.22 136.23 136.24 136.25 136.26 136.27 136.28 136.29 136.30 136.31 137.1 137.2 137.3 137.4 137.5 137.6 137.7 137.8 137.9 137.10 137.11 137.12 137.13 137.14 137.15 137.16 137.17
137.18 137.19 137.20 137.21
137.22 137.23 137.24 137.25 137.26 137.27 137.28 137.29 137.30 137.31 137.32 138.1 138.2 138.3 138.4 138.5 138.6 138.7 138.8 138.9 138.10
138.11 138.12 138.13 138.14
138.15 138.16 138.17 138.18 138.19 138.20 138.21
138.22 138.23 138.24 138.25
138.26 138.27 138.28 138.29 138.30 138.31 139.1 139.2 139.3 139.4 139.5 139.6 139.7 139.8 139.9 139.10 139.11 139.12 139.13 139.14 139.15 139.16
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
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
141.1 141.2 141.3 141.4 141.5 141.6 141.7 141.8 141.9 141.10 141.11 141.12 141.13 141.14 141.15 141.16 141.17 141.18 141.19 141.20 141.21 141.22 141.23 141.24 141.25 141.26 141.27 141.28 141.29 141.30 141.31 141.32 141.33 141.34 142.1 142.2 142.3 142.4 142.5 142.6 142.7 142.8 142.9 142.10 142.11 142.12 142.13 142.14 142.15 142.16
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
142.30 142.31 142.32 143.1 143.2 143.3 143.4 143.5 143.6 143.7 143.8 143.9 143.10 143.11 143.12 143.13 143.14 143.15 143.16 143.17
143.18
143.19 143.20 143.21 143.22 143.23 143.24 143.25 143.26 143.27 143.28 143.29 143.30 143.31 143.32 144.1 144.2 144.3 144.4 144.5 144.6 144.7 144.8 144.9 144.10 144.11 144.12 144.13 144.14 144.15 144.16 144.17 144.18 144.19 144.20 144.21 144.22
144.23
144.24 144.25 144.26 144.27 144.28 144.29 144.30 144.31 145.1 145.2 145.3 145.4 145.5 145.6 145.7 145.8 145.9 145.10 145.11 145.12 145.13 145.14 145.15 145.16 145.17 145.18 145.19 145.20 145.21 145.22 145.23 145.24 145.25 145.26 145.27 145.28 145.29 145.30 146.1 146.2 146.3 146.4 146.5 146.6 146.7 146.8 146.9 146.10 146.11 146.12
146.13 146.14 146.15
146.16 146.17 146.18 146.19 146.20 146.21 146.22 146.23 146.24 146.25 146.26 146.27 146.28 146.29 146.30 146.31 146.32 146.33 147.1 147.2 147.3 147.4 147.5 147.6
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
147.27 147.28 147.29 147.30 147.31 147.32 147.33 148.1 148.2 148.3 148.4 148.5 148.6 148.7 148.8 148.9
148.10
148.11 148.12
148.13 148.14 148.15 148.16 148.17 148.18
148.19
148.20 148.21 148.22 148.23 148.24 148.25 148.26 148.27 148.28 148.29 148.30 149.1 149.2 149.3 149.4 149.5 149.6 149.7 149.8 149.9 149.10 149.11 149.12 149.13 149.14 149.15 149.16 149.17 149.18 149.19 149.20 149.21 149.22 149.23 149.24 149.25 149.26
149.27
149.28 149.29 149.30 149.31 149.32 149.33 150.1 150.2 150.3 150.4 150.5 150.6 150.7 150.8 150.9 150.10 150.11 150.12 150.13 150.14 150.15 150.16 150.17 150.18 150.19 150.20 150.21 150.22 150.23 150.24
150.25
150.26 150.27 150.28 150.29 150.30
150.31
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
152.15 152.16 152.17 152.18 152.19 152.20 152.21 152.22 152.23 152.24 152.25 152.26 152.27 152.28 152.29 152.30 152.31 153.1 153.2 153.3 153.4 153.5 153.6 153.7 153.8 153.9 153.10 153.11 153.12 153.13 153.14 153.15 153.16 153.17 153.18 153.19
153.20
153.21 153.22 153.23 153.24 153.25 153.26 153.27 153.28 153.29 153.30 153.31
153.32
154.1 154.2 154.3 154.4 154.5 154.6 154.7 154.8 154.9
154.10
154.11 154.12 154.13 154.14 154.15 154.16 154.17 154.18 154.19 154.20 154.21 154.22 154.23 154.24 154.25 154.26 154.27 154.28 154.29 154.30 154.31 154.32 154.33 154.34
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
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
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
159.1 159.2 159.3 159.4 159.5 159.6 159.7 159.8 159.9 159.10 159.11 159.12 159.13 159.14 159.15 159.16 159.17
159.18
159.19 159.20 159.21 159.22 159.23 159.24 159.25 159.26 159.27 159.28
159.29
159.30 159.31 159.32 159.33 160.1 160.2 160.3 160.4 160.5 160.6 160.7
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
160.27 160.28 160.29 160.30 160.31 160.32 161.1 161.2 161.3 161.4 161.5 161.6 161.7 161.8 161.9 161.10 161.11 161.12 161.13
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
162.26 162.27 162.28 162.29 162.30 162.31 163.1 163.2 163.3 163.4 163.5 163.6 163.7 163.8 163.9 163.10 163.11 163.12 163.13 163.14 163.15 163.16 163.17 163.18 163.19 163.20 163.21 163.22 163.23 163.24 163.25 163.26 163.27 163.28 163.29 163.30 163.31 163.32 163.33 163.34 163.35 164.1 164.2 164.3 164.4 164.5 164.6 164.7 164.8 164.9 164.10 164.11 164.12 164.13 164.14 164.15 164.16 164.17 164.18 164.19 164.20 164.21 164.22 164.23 164.24 164.25 164.26 164.27 164.28 164.29 164.30 164.31 164.32 164.33
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
165.21 165.22 165.23 165.24 165.25 165.26 165.27 165.28 165.29 165.30 166.1 166.2 166.3 166.4 166.5 166.6 166.7 166.8 166.9 166.10 166.11 166.12 166.13 166.14 166.15 166.16 166.17 166.18 166.19 166.20 166.21 166.22 166.23 166.24 166.25 166.26 166.27 166.28 166.29 166.30
167.1
167.2 167.3 167.4 167.5 167.6 167.7 167.8 167.9 167.10 167.11 167.12 167.13 167.14 167.15 167.16 167.17 167.18 167.19 167.20 167.21 167.22 167.23 167.24 167.25 167.26 167.27 167.28 167.29 167.30 167.31 167.32 168.1 168.2 168.3 168.4 168.5 168.6 168.7 168.8 168.9 168.10 168.11 168.12 168.13 168.14 168.15 168.16 168.17 168.18 168.19 168.20 168.21 168.22 168.23 168.24 168.25 168.26 168.27 168.28 168.29 168.30 168.31 168.32 168.33 168.34 168.35 168.36 169.1 169.2 169.3 169.4 169.5 169.6 169.7 169.8 169.9 169.10 169.11 169.12 169.13 169.14 169.15 169.16 169.17 169.18 169.19 169.20 169.21 169.22 169.23 169.24
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
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
173.23 173.24 173.25 173.26 173.27 173.28 173.29 173.30 173.31 173.32 173.33 173.34
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
175.1 175.2 175.3 175.4 175.5 175.6 175.7 175.8 175.9 175.10 175.11 175.12 175.13 175.14 175.15 175.16 175.17 175.18 175.19 175.20 175.21 175.22 175.23 175.24 175.25 175.26 175.27 175.28 175.29 175.30 176.1 176.2 176.3 176.4 176.5 176.6 176.7 176.8 176.9 176.10 176.11 176.12 176.13 176.14 176.15 176.16 176.17 176.18
176.19
176.20 176.21 176.22 176.23 176.24 176.25 176.26 176.27 176.28 176.29 176.30 176.31 177.1 177.2 177.3 177.4 177.5 177.6 177.7 177.8 177.9 177.10 177.11 177.12 177.13 177.14 177.15 177.16 177.17 177.18 177.19 177.20 177.21 177.22 177.23 177.24 177.25 177.26 177.27 177.28 177.29 177.30 177.31 178.1 178.2 178.3 178.4 178.5 178.6 178.7 178.8 178.9 178.10 178.11 178.12 178.13 178.14 178.15 178.16 178.17 178.18 178.19 178.20 178.21 178.22 178.23 178.24 178.25 178.26 178.27 178.28 178.29 178.30 179.1 179.2 179.3 179.4 179.5 179.6 179.7 179.8
179.9
179.10 179.11 179.12
179.13
179.14 179.15 179.16 179.17 179.18 179.19 179.20 179.21 179.22 179.23 179.24 179.25 179.26 179.27 179.28 179.29 179.30 179.31 179.32 180.1 180.2 180.3 180.4 180.5 180.6 180.7 180.8 180.9 180.10 180.11 180.12 180.13 180.14 180.15 180.16 180.17 180.18 180.19 180.20 180.21 180.22 180.23 180.24 180.25 180.26 180.27 180.28
180.29
180.30 180.31 180.32 180.33 181.1 181.2 181.3 181.4 181.5 181.6 181.7 181.8 181.9 181.10 181.11
181.12
181.13 181.14 181.15 181.16 181.17 181.18 181.19 181.20 181.21 181.22 181.23 181.24
181.25
181.26 181.27 181.28 181.29 181.30 181.31 181.32 182.1 182.2 182.3 182.4 182.5 182.6 182.7 182.8
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
183.6 183.7 183.8 183.9 183.10 183.11 183.12 183.13 183.14 183.15 183.16 183.17 183.18 183.19 183.20 183.21 183.22 183.23 183.24 183.25 183.26 183.27 183.28 183.29 183.30 183.31 184.1 184.2 184.3 184.4 184.5 184.6 184.7 184.8 184.9 184.10 184.11 184.12 184.13 184.14 184.15 184.16 184.17 184.18
184.19
184.20 184.21 184.22 184.23 184.24 184.25 184.26 184.27 184.28 184.29 184.30 184.31 184.32 185.1 185.2 185.3 185.4 185.5 185.6 185.7 185.8 185.9 185.10 185.11 185.12 185.13 185.14 185.15 185.16 185.17 185.18 185.19 185.20 185.21 185.22 185.23 185.24 185.25 185.26 185.27 185.28 185.29 185.30
185.31
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
186.22 186.23 186.24 186.25 186.26 186.27 186.28 186.29 186.30 187.1 187.2 187.3 187.4 187.5 187.6 187.7 187.8 187.9 187.10 187.11 187.12 187.13 187.14 187.15 187.16 187.17 187.18 187.19 187.20 187.21 187.22 187.23 187.24 187.25 187.26 187.27 187.28 187.29 187.30 187.31 188.1 188.2 188.3 188.4 188.5 188.6 188.7
188.8
188.9 188.10 188.11 188.12 188.13 188.14 188.15 188.16 188.17 188.18 188.19 188.20 188.21 188.22 188.23 188.24 188.25 188.26 188.27 188.28 188.29 188.30 188.31 188.32 188.33 189.1 189.2 189.3 189.4 189.5 189.6 189.7 189.8 189.9 189.10
189.11
189.12 189.13 189.14 189.15 189.16 189.17 189.18 189.19 189.20 189.21 189.22 189.23 189.24 189.25 189.26 189.27 189.28 189.29 189.30 189.31 189.32 190.1 190.2 190.3 190.4 190.5 190.6 190.7 190.8 190.9
190.10
190.11 190.12
190.13 190.14 190.15
190.16
A bill for an act
relating to taxation; making modifications to individual income, corporate franchise,
property, sales and use, estate, mineral and tobacco taxes, and other tax provisions;
providing for certain conformity and nonconformity to federal provisions;
modifying the property tax refund; extending the small business investment credit;
specifying the application of tobacco taxes to vapor products; modifying
classification provisions; making minor policy, technical, and clarifying changes
to individual income and corporate franchise taxes, sales and use taxes, tobacco
taxes, property taxes, and other miscellaneous tax provisions; authorizing fire
protection special taxing districts; providing exemptions from the state general
levy; modifying watershed project levies; modifying wind energy production tax;
modifying veteran with a disability market value exclusion; authorizing early
termination from metropolitan agricultural preserve program; requiring study;
increasing the estate tax exclusion amount; providing for adjustment of certain tax
rates; clarifying application of tax to captive insurance companies; modifying the
stillbirth credit; modifying certain local lodging tax authority; establishing certain
sales tax exemptions; prohibiting imposition of certain excise taxes or fees;
modifying certain MNsure funding and authority provisions; modifying certain
estate property ownership requirements; amending Minnesota Statutes 2016,
sections 16A.152, by adding a subdivision; 62V.05, subdivisions 2, 5, 10; 62V.08;
103D.905, subdivision 9; 103E.611, subdivision 2; 116J.8737, subdivisions 5, 12;
138.053; 162.145, subdivision 3; 197.603, subdivision 2; 270.41, subdivision 3;
270B.08, subdivision 2; 270C.85, subdivision 2; 270C.89, subdivision 2; 270C.91;
272.02, subdivisions 27, 81, by adding a subdivision; 273.032; 273.061, subdivision
9; 273.113, subdivision 3; 273.119, subdivision 2; 273.1231, subdivision 3; 273.124,
subdivision 3a; 273.1245, subdivision 2; 273.136, subdivision 2; 273.1384,
subdivision 3; 273.18; 274.14; 274.16; 275.066; 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.60, subdivision 24;
290.01, subdivisions 22, 29a, by adding subdivisions; 290.0131, subdivisions 1,
3, 12, 13, by adding subdivisions; 290.0132, subdivisions 1, 7, 20, by adding
subdivisions; 290.0133, by adding a subdivision; 290.0134, by adding subdivisions;
290.06, subdivisions 2c, 2d; 290.067, subdivision 2a; 290.0671, subdivision 7;
290.0672, subdivision 2; 290.0681, subdivisions 3, 4; 290.0685, subdivision 1;
290.0802, subdivisions 2, 3; 290.091, subdivision 3; 290.0921, subdivision 3;
290.0922, subdivision 1; 290.095, subdivision 4; 290.21, subdivision 4; 290.34,
by adding a subdivision; 290.92, subdivisions 1, 28; 290A.03, subdivisions 4, 12;
290A.05; 290A.08; 290A.09; 290B.09, subdivision 1; 291.03, subdivisions 8, 10;
297A.61, subdivision 18; 297A.67, subdivision 12; 297A.68, subdivisions 17, 25,
44; 297A.70, subdivisions 3, 16; 297A.71, subdivisions 22, 45, by adding
subdivisions; 297A.77, by adding a subdivision; 297A.84; 297A.85; 297B.01,
subdivision 14; 297B.03; 297F.01, subdivisions 19, 23, by adding a subdivision;
297F.17, subdivision 6; 297G.16, subdivision 7; 298.28, subdivision 9a; 469.177,
subdivision 1; 469.316, subdivision 1; 469.319, subdivision 4; 471.831, subdivision
1; 473H.08, subdivisions 1, 4, by adding a subdivision; 474A.02, subdivision 22b;
475.521, subdivision 1; 477A.016; Minnesota Statutes 2017 Supplement, sections
270A.03, subdivision 5; 270C.445, subdivision 6; 270C.89, subdivision 1; 272.029,
subdivision 2; 272.115, subdivision 1; 273.0755; 273.13, subdivisions 22, 25, 34;
273.1384, subdivision 2; 273.1387, subdivision 3; 275.025, subdivisions 1, 2;
289A.02, subdivision 7; 289A.10, subdivision 1; 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,
subdivision 2; 290.091, subdivision 2; 290.17, subdivisions 2, 4; 290.31, subdivision
1; 290A.03, subdivisions 3, 8, 13, 15; 291.005, subdivision 1; 291.016, subdivision
3; 291.03, subdivisions 1, 9, 11; 297A.61, subdivision 3; 297A.67, subdivision 6;
297A.70, subdivision 4; 297A.75, subdivision 1; 297B.01, subdivision 16; 298.17;
298.227; 298.28, subdivision 7a; 462D.03, subdivision 2; 462D.06, subdivisions
1, 2; Laws 1986, chapter 396, section 5, as amended; Laws 1986, chapter 462,
section 31, as amended; Laws 2008, chapter 366, article 5, section 33, as amended;
Laws 2009, chapter 88, article 2, section 46; Laws 2015, chapter 71, article 12,
section 8; Laws 2017, First Special Session chapter 1, article 4, section 31; article
8, section 3; article 10, section 4; proposing coding for new law in Minnesota
Statutes, chapters 289A; 290; proposing coding for new law as Minnesota Statutes,
chapter 299O; repealing Minnesota Statutes 2016, sections 275.29; 289A.10,
subdivision 1a; 289A.12, subdivision 18; 289A.18, subdivision 3a; 289A.20,
subdivision 3a; 289A.38, subdivisions 7, 8, 9; 290.0131, subdivisions 7, 11;
290.0133, subdivisions 13, 14; 290.10, subdivision 2; 291.03, subdivisions 8, 10;
Minnesota Statutes 2017 Supplement, section 291.03, subdivisions 9, 11.
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 $12,560 $13,180 or less;
(2) for a debtor with one dependent, an income of $16,080 $16,878 or less;
(3) for a debtor with two dependents, an income of $19,020 $19,959 or less;
(4) for a debtor with three dependents, an income of $21,580 $22,643 or less;
(5) for a debtor with four dependents, an income of $22,760 $23,887 or less; and
(6) for a debtor with five or more dependents, an income of $23,730 $24,900 or 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 "2014" "2017" shall be substituted for the word "1992."
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. "2016." 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.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
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 December
16, 2016 March 31, 2018.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
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
Code or meets the requirements under paragraph (d) to file a return, 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; and
(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.
(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 and the personal and dependent exemptions
under section 290.0138.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
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 11 10 and 17, 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.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
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 taxable adjusted gross 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.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
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 federal adjusted
gross income, federal 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.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 7.
Minnesota Statutes 2016, section 290.01, is amended by adding a subdivision to
read:
Subd. 14a.
Surviving spouse.
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.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 8.
Minnesota Statutes 2017 Supplement, section 290.01, subdivision 19, is amended
to read:
Subd. 19.
Net income.
(a) For a corporation taxable under section 290.02, and an estate
or a trust taxable under section 290.03, the term "net income" means the federal taxable
income, as defined in section 63 of the Internal Revenue Code of 1986, as amended through
the date named in this subdivision, incorporating the federal effective dates of changes to
the Internal Revenue Code and any elections made by the taxpayer in accordance with the
Internal Revenue Code in determining federal taxable income for federal income tax
purposes, and with the modifications provided in sections 290.0131 to 290.0136.
(b) For an individual, the term "net income" means federal adjusted gross income with
the modifications provided in sections 290.0131 and 290.0132.
(c) In the case of a regulated investment company or a fund thereof, as defined in section
851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
except that:
(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
Revenue Code does not apply;
(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal Revenue
Code must be applied by allowing a deduction for capital gain dividends and exempt-interest
dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal Revenue Code;
and
(3) the deduction for dividends paid must also be applied in the amount of any
undistributed capital gains which the regulated investment company elects to have treated
as provided in section 852(b)(3)(D) of the Internal Revenue Code.
(d) The net income of a real estate investment trust as defined and limited by section
856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust
taxable income as defined in section 857(b)(2) of the Internal Revenue Code.
(e) The net income of a designated settlement fund as defined in section 468B(d) of the
Internal Revenue Code means the gross income as defined in section 468B(b) of the Internal
Revenue Code.
(f) The Internal Revenue Code of 1986, as amended through December 16, 2016 March
31, 2018, shall be in effect for taxable years beginning after December 31, 1996.
(g) Except as otherwise provided, references to the Internal Revenue Code in this
subdivision and sections 290.0131 to 290.0136 mean the code in effect for purposes of
determining net income for the applicable year.
EFFECTIVE DATE.
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.
Sec. 9.
Minnesota Statutes 2016, section 290.01, is amended by adding a subdivision to
read:
Subd. 21a.
Adjusted gross income; federal adjusted gross income.
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.
EFFECTIVE DATE.
This section is effective the day following final enactment.
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, 1986 2017,
the term "taxable net income" means:
(1) for resident individuals the same as, net income less the deductions allowed under
section 290.0803;
(2) for individuals who were not residents of Minnesota for less than the entire year, the
same as net income less the deductions allowed under section 290.0803, 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
290.36, 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.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 11.
Minnesota Statutes 2016, section 290.01, subdivision 29a, is amended to read:
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 changes to itemized deductions
made by Public Law 115-97 other than the changes made by section 11028, and disregarding
the federal itemized deduction of income or sales taxes under section 164 of the Internal
Revenue Code.
For taxable years beginning after December 31, 2017, the amount that would have been
allowable as interest under section 163(h)(3)(E) of the Internal Revenue Code, disregarding
subparagraph 163(h)(3)(E)(iv), is allowed as a state itemized deduction.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 12.
Minnesota Statutes 2016, section 290.01, is amended by adding a subdivision to
read:
Subd. 29b.
State standard deduction.
"State standard deduction" means the federal
standard deduction computed under section 63(c) and (f) of the Internal Revenue Code, as
amended through December 16, 2016, except that for purposes of adjusting the amounts
under this subdivision, the provisions of section 1(f) of the Internal Revenue Code, as
amended through March 31, 2018, apply.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 13.
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 December
16, 2016 March 31, 2018. 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.
EFFECTIVE DATE.
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.
Sec. 14.
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 taxable adjusted gross income, or for estates and
trusts, federal taxable income, 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 taxable adjusted gross income,
or for estates and trusts, federal taxable income, are an addition under this section.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 15.
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.
(a) For trusts
and estates, 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.
(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.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 16.
Minnesota Statutes 2017 Supplement, section 290.0131, subdivision 10, is amended
to read:
Subd. 10.
Section 179 expensing.
Effective for property placed in service in taxable
years beginning before January 1, 2019, 80 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.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2018.
Sec. 17.
Minnesota Statutes 2016, section 290.0131, subdivision 12, is amended to read:
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 state itemized
deductions, as allowed under section 63(d) of the Internal Revenue Code, exceeds the amount
of the state 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 state 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) "1990" for "2016" in
section 1(f)(3)(B)(ii) of the Internal Revenue Code.
(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.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 18.
Minnesota Statutes 2016, section 290.0131, subdivision 13, is amended to read:
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 and dependent exemption subtraction allowed under section 151(b) and (c) of
the Internal Revenue Code 290.0132, subdivision 20, 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) "1990" for "2016" in
section 1(f)(3)(B)(ii) of the Internal Revenue Code.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 19.
Minnesota Statutes 2016, section 290.0131, is amended by adding a subdivision
to read:
Subd. 15.
Qualified business income addition.
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.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 20.
Minnesota Statutes 2016, section 290.0131, is amended by adding a subdivision
to read:
Subd. 16.
Foreign-derived intangible income.
The amount of foreign-derived intangible
income deducted under section 250 of the Internal Revenue Code for the taxable year is an
addition.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 21.
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 shall is allowed to be subtracted from federal taxable adjusted gross
income, or for estates and trusts, federal taxable income, 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 taxable adjusted
gross income, or for estates and trusts, federal taxable income, is a subtraction under this
section.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 22.
Minnesota Statutes 2016, section 290.0132, subdivision 7, is amended to read:
Subd. 7.
Charitable contributions for taxpayers who do not itemize.
To the extent
not deducted or not deductible under section 408(d)(8)(E) of the Internal Revenue Code in
determining federal taxable income by For an individual who does not itemize deductions
for federal income tax purposes under section 290.0803 for the taxable year, an amount
equal to 50 percent of the excess of charitable contributions over $500 allowable as a state
itemized deduction for the taxable year under section 170(a) of the Internal Revenue Code
is a subtraction. 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.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 23.
Minnesota Statutes 2016, section 290.0132, subdivision 20, is amended to read:
Subd. 20.
Disallowed Personal and dependent exemption.
The amount of the phaseout
of personal exemptions under section 151(d) of the Internal Revenue Code is a subtraction.
The amount of personal and dependent exemptions calculated under section 290.0138 is a
subtraction.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 24.
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
taxable adjusted gross 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.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 25.
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 $4,500 $4,590. The maximum subtraction is reduced by 20 percent of
provisional income over $77,000 $78,530. In no case is the subtraction less than zero.
(c) For single or head-of-household taxpayers, the maximum subtraction equals $3,500
$3,570. The maximum subtraction is reduced by 20 percent of provisional income over
$60,200 $61,400. In no case is the subtraction less than zero.
(d) For married taxpayers filing separate returns, the maximum subtraction equals $2,250
one-half the maximum subtraction for joint returns under paragraph (b). The maximum
subtraction is reduced by 20 percent of provisional income over $38,500 one-half the
maximum subtraction for joint returns under paragraph (b). 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 "2016" "2017" shall be substituted for the word "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. "2016." 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, 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.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 26.
Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision
to read:
Subd. 27.
Moving expenses.
Expenses that qualify as a deduction under section 217(a)
through (f) of the Internal Revenue Code, disregarding paragraph (k), and only to the extent
the expenses are not deducted in computing federal taxable income is a subtraction.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 27.
Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision
to read:
Subd. 28.
Global intangible low-taxed income.
The taxpayer's global intangible
low-taxed income included under section 951A of the Internal Revenue Code for the taxable
year is a subtraction.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 28.
Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision
to read:
Subd. 29.
Deferred foreign income.
The amount of deferred foreign income recognized
because of section 965 of the Internal Revenue Code, and before any deduction under section
965(c) of the Internal Revenue Code, is a subtraction.
EFFECTIVE DATE.
This section is effective retroactively for taxable years beginning
after December 31, 2016, and before January 1, 2019.
Sec. 29.
Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision
to read:
Subd. 30.
Standard or itemized deduction.
The amount allowed under section 290.0803
is a subtraction.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 30.
Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision
to read:
Subd. 31.
Tuition subtraction.
The amount that would have been allowable under
section 222 of the Internal Revenue Code, disregarding paragraph (e) and only to the extent
the amount is not deducted in computing federal adjusted gross income is a subtraction.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2018.
Sec. 31.
Minnesota Statutes 2017 Supplement, section 290.0133, subdivision 12, is amended
to read:
Subd. 12.
Section 179 expensing.
Effective for property placed in service in taxable
years beginning before January 1, 2019, 80 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.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2018.
Sec. 32.
Minnesota Statutes 2016, section 290.0133, is amended by adding a subdivision
to read:
Subd. 15.
Foreign-derived intangible income.
The amount of foreign-derived intangible
income deducted under section 250 of the Internal Revenue Code for the taxable year is an
addition.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 33.
Minnesota Statutes 2016, section 290.0134, is amended by adding a subdivision
to read:
Subd. 17.
Global intangible low-taxed income.
The taxpayer's global intangible
low-taxed income included under section 951A of the Internal Revenue Code for the taxable
year is a subtraction.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 34.
Minnesota Statutes 2016, section 290.0134, is amended by adding a subdivision
to read:
Subd. 18.
Deferred foreign income.
The amount of deferred foreign income recognized
because of section 965 of the Internal Revenue Code, and before any deduction under section
965(c) of the Internal Revenue Code, is a subtraction.
Sec. 35.
[290.0138] PERSONAL AND DEPENDENT EXEMPTIONS.
Subdivision 1.
Personal and dependent exemptions.
(a) A taxpayer is allowed (1) a
personal exemption in the amount of $4,150, and in the case of a married couple filing a
joint return an additional personal exemption of $4,150; plus (2) a dependent exemption of
$4,150 multiplied by the number of dependents of the taxpayer, as defined under sections
151 and 152 of the Internal Revenue Code.
(b) The personal and dependent exemptions are not allowed to an individual who is
eligible to be claimed as a dependent, as defined in sections 151 or 152 of the Internal
Revenue Code, by another taxpayer.
Subd. 2.
Cost-of-living adjustment.
For taxable years beginning after December 31,
2018, the commissioner shall annually adjust the amounts in subdivision 1 by the percentage
determined pursuant to the provisions of section 1(f) of the Internal Revenue Code as
amended through December 16, 2016, except that in section 1(f)(3)(B), the word "2017"
shall be substituted for the word "1992." The exemption amount as adjusted for inflation
must be rounded to the nearest $50. If the amount is not a multiple of $50, the commissioner
shall round down to the next lowest multiple of $50. The determination of the commissioner
under this subdivision is not a rule under the Administrative Procedure Act.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 36.
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 $37,850, 5.35 5.1 percent;
(2) On all over $35,480 $37,850, but not over $140,960 $150,380, 7.05 percent;
(3) On all over $140,960 $150,380, but not over $250,000 $266,700, 7.85 percent;
(4) On all over $250,000 $266,700, 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 $24,270 $25,890, 5.35 5.1 percent;
(2) On all over $24,270 $25,890, but not over $79,730 $85,060, 7.05 percent;
(3) On all over $79,730 $85,060, but not over $150,000 $160,020, 7.85 percent;
(4) On all over $150,000 $160,020, 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 $31,880, 5.35 5.1 percent;
(2) On all over $29,880 $31,880, but not over $120,070 $128,090, 7.05 percent;
(3) On all over $120,070 $128,090, but not over $200,000 $213,360, 7.85 percent;
(4) On all over $200,000 $213,360, 9.85 percent.
(d) In lieu of a tax computed according to the rates set forth in this subdivision, the tax
of any individual taxpayer whose taxable net income for the taxable year is less than an
amount determined by the commissioner must be computed in accordance with tables
prepared and issued by the commissioner of revenue based on income brackets of not more
than $100. The amount of tax for each bracket shall be computed at the rates set forth in
this subdivision, provided that the commissioner may disregard a fractional part of a dollar
unless it amounts to 50 cents or more, in which case it may be increased to $1.
(e) An individual who is not a Minnesota resident for the entire year must compute the
individual's Minnesota income tax as provided in this subdivision. After the application of
the nonrefundable credits provided in this chapter, the tax liability must then be multiplied
by a fraction in which:
(1) the numerator is the individual's Minnesota source federal adjusted gross income as
defined in section 62 of the Internal Revenue Code and increased by the additions required
under section 290.0131, subdivisions 2 and 6 to 11 10, 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, and 18, and 27 to 29, after applying the allocation and assignability provisions
of section 290.081, clause (a), or 290.17; and
(2) the denominator is the individual's federal adjusted gross income as defined in section
62 of the Internal Revenue Code, increased by the amounts specified in section 290.0131,
subdivisions 2 and 6 to 11 10, and reduced by the amounts specified in section 290.0132,
subdivisions 2, 9, 10, 14, 15, 17, and 18, and 27 to 29.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 37.
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" "2017" 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. "2016." 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.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 38.
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 $50,000 $50,990, 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
$50,000 $50,990 for taxpayers with one qualified individual, or $1,200 minus five percent
of federal adjusted gross income in excess of $50,000 $50,990 for taxpayers with two or
more qualified individuals, but in no case is the credit less than zero.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 39.
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 as defined in section 62 of the Internal Revenue Code;
and
(2) the sum of the following amounts to the extent not included in clause (1):
(i) all nontaxable income;
(ii) the amount of a passive activity loss that is not disallowed as a result of section 469,
paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss
carryover allowed under section 469(b) of the Internal Revenue Code;
(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a
solvent individual excluded from gross income under section 108(g) of the Internal Revenue
Code;
(iv) cash public assistance and relief;
(v) any pension or annuity (including railroad retirement benefits, all payments received
under the federal Social Security Act, Supplemental Security Income, and veterans benefits),
which was not exclusively funded by the claimant or spouse, or which was funded exclusively
by the claimant or spouse and which funding payments were excluded from federal adjusted
gross income in the years when the payments were made;
(vi) interest received from the federal or a state government or any instrumentality or
political subdivision thereof;
(vii) workers' compensation;
(viii) nontaxable strike benefits;
(ix) the gross amounts of payments received in the nature of disability income or sick
pay as a result of accident, sickness, or other disability, whether funded through insurance
or otherwise;
(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
1986, as amended through December 31, 1995;
(xi) contributions made by the claimant to an individual retirement account, including
a qualified voluntary employee contribution; simplified employee pension plan;
self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of
the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal
Revenue Code;
(xii) nontaxable scholarship or fellowship grants;
(xiii) the amount of deduction allowed under section 199 of the Internal Revenue Code;
(xiv) (xiii) the amount of deduction allowed under section 220 or 223 of the Internal
Revenue Code;
(xv) (xiv) the amount deducted for tuition expenses under section 222 of the Internal
Revenue Code; and
(xvi) (xv) the amount deducted for certain expenses of elementary and secondary school
teachers under section 62(a)(2)(D) of the Internal Revenue Code.; and
(xvi) alimony received to the extent not included in the recipient's income.
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.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 40.
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 "2016" "2017" shall be substituted
for the word "1992." For 2018, the commissioner shall then determine the percent change
from the 12 months ending on August 31, 2016, to the 12 months ending on August 31,
2017, and in each subsequent year, from the 12 months ending on August 31, 2016, to the
12 months ending on August 31 of the year preceding the taxable year. "2016." 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.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 41.
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
$6,180 $6,480 of earned income. The credit is reduced by 2.01 percent of earned income
or adjusted gross income, whichever is greater, in excess of $8,130 $8,530, but in no case
is the credit less than zero.
(c) For individuals with one qualifying child, the credit equals 9.35 percent of the first
$11,120 $11,670 of earned income. The credit is reduced by 6.02 percent of earned income
or adjusted gross income, whichever is greater, in excess of $21,190 $22,340, 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 $18,240 $19,130 of earned income. The credit is reduced by 10.82 percent of
earned income or adjusted gross income, whichever is greater, in excess of $25,130 $26,360,
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, 2013 2018, the $8,130 $8,530 in paragraph
(b), the $21,190 $22,230 in paragraph (c), and the $25,130 $26,360 in paragraph (d), after
being adjusted for inflation under subdivision 7, are each increased by $5,000 $5,700 for
married taxpayers filing joint returns. For tax years beginning after December 31, 2013
2018, the commissioner shall annually adjust the $5,000 $5,700 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 "2008" "2017" 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, 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. "2016." 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.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 42.
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 "2013" "2017" shall be substituted for the word "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. "2016." 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.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 43.
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 federal taxable net income" means the lesser of
(1) long-term care insurance premiums that qualify as deductions under section 213 of the
Internal Revenue Code; and (2) the total amount deductible for medical care expenses under
section 213 of the Internal Revenue Code.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 44.
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 federal
taxable net 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).
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 45.
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 47(a)(2) 47(a) of the Internal
Revenue Code, except that the amount allowed is deemed to be allocated in the taxable year
that the project is placed in service.
(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.
EFFECTIVE DATE.
This section is effective for applications for allocation certificates
submitted after December 31, 2017.
Sec. 46.
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 47(a)(2) 47(a) of the Internal Revenue Code for a project. The 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. To qualify for the
credit:
(1) the project must receive Part 3 certification and be placed in service during the taxable
year; and
(2) the taxpayer must be allowed the federal credit and be issued a credit certificate for
the taxable year as provided in subdivision 4.
(b) The commissioner of administration may pay a grant in lieu of the credit. The grant
equals 90 percent of the credit that would be allowed for the project. The grant is payable
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.
(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.
EFFECTIVE DATE.
This section is effective for applications for allocation certificates
submitted after December 31, 2017.
Sec. 47.
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 one-fifth of the total amount of either the credit or the
grant at the time the project is placed in service, provided that date is within three calendar
years following the issuance of the allocation certificate.
(c) The office, in consultation with the commissioner, shall determine if the project is
eligible for a credit or a grant under this section and must notify the developer in writing
of its determination. Eligibility for the credit is subject to review and audit by the
commissioner.
(d) The federal credit recapture and repayment requirements under section 50 of the
Internal Revenue Code do not apply to the credit allowed under this section.
(e) Any decision of the office under paragraph (c) may be challenged as a contested case
under chapter 14. The contested case proceeding must be initiated within 45 days of the
date of written notification by the office.
EFFECTIVE DATE.
This section is effective for applications for allocation certificates
submitted after December 31, 2017.
Sec. 48.
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 taxpayer
before the first one-fifth payment is claimed, which is then allowed the credit under this
section or section 297I.20, subdivision 3. An assignment is not valid unless the assignee
notifies the commissioner within 30 days of the date that the assignment is made. The
commissioner shall prescribe the forms necessary for notifying the commissioner of the
assignment of a credit certificate and for claiming a credit by assignment.
(c) Credits passed through to partners, members, shareholders, or owners pursuant to
subdivision 5 are not an assignment of a credit certificate under this subdivision.
(d) A grant agreement between the office and the recipient of a grant may allow the
grant to be issued to another individual or entity.
EFFECTIVE DATE.
This section is effective for applications for allocation certificates
submitted after December 31, 2017.
Sec. 49.
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 $75,000 $76,490.
(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 $75,000 $76,490, but
not more than $100,000 $101,990, the maximum credit is reduced by one percent of adjusted
gross income in excess of $75,000 $76,490;
(2) for married couples with adjusted gross income in excess of $100,000 $101,990, but
not more than $135,000 $137,680, the maximum credit is $250; and
(3) for married couples with adjusted gross income in excess of $135,000 $137,680, the
maximum credit is $250, reduced by one percent of adjusted gross income in excess of
$135,000 $137,680.
(e) The income thresholds in paragraphs (c) and (d) used to calculate the maximum
credit must be adjusted for inflation. The commissioner shall adjust the income thresholds
by the percentage determined under the provisions of section 1(f) of the Internal Revenue
Code, except that in section 1(f)(3)(B) the word "2016" "2017" is substituted for the word
"1992." For 2018, the commissioner shall then determine the percent change from the 12
months ending on August 31, 2016, to the 12 months ending on August 31, 2017, and in
each subsequent year, from the 12 months ending on August 31, 2016, to the 12 months
ending on August 31 of the year preceding the taxable year. "2016." 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.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 50.
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 adjusted gross 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.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 51.
[290.0803] STANDARD OR ITEMIZED DEDUCTION.
Subdivision 1.
Election.
An individual may elect to claim a state standard deduction in
lieu of state itemized deductions. However, in the case of a married individual filing a
separate return, if one spouse elects to claim state itemized deductions, the other spouse is
not allowed a state standard deduction.
Subd. 2.
Subtraction.
Based on the election under subdivision 1, individuals are allowed
to subtract from federal adjusted gross income the state standard deduction or the state
itemized deduction.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 52.
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;
and
(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, 10, and
16;
(7) the deduction allowed under section 199A of the Internal Revenue Code;
less the sum of the amounts determined under the following:
(i) interest income as defined in section 290.0132, subdivision 2;
(ii) an overpayment of state income tax as provided by section 290.0132, subdivision
3, to the extent included in federal alternative minimum taxable income;
(iii) the amount of investment interest paid or accrued within the taxable year on
indebtedness to the extent that the amount does not exceed net investment income, as defined
in section 163(d)(4) of the Internal Revenue Code. Interest does not include amounts deducted
in computing federal adjusted gross income;
(iv) amounts subtracted from federal taxable adjusted gross income as provided by
section 290.0132, subdivisions 7, 9 to 15, 17, 21, 24, and 26 to 29; and
(v) the amount of the net operating loss allowed under section 290.095, subdivision 11,
paragraph (c); and
(vi) the amount which would have been an allowable deduction under section 165(h) of
the Internal Revenue Code, as amended through December 16, 2016, and which was taken
as a Minnesota itemized deduction under section 290.01, subdivision 29.
In the case of an estate or trust, alternative minimum taxable income must be computed
as provided in section 59(c) of the Internal Revenue Code, except that alternative minimum
taxable income must be increased by the amount of the addition under section 290.0131,
subdivision 15.
(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.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 53.
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 is, for taxable years beginning after December 31, 2005, $60,000
$75,760 for married couples filing joint returns, $30,000 $37,880 for married individuals
filing separate returns, estates, and trusts, and $45,000 $56,820 for unmarried individuals.
(b) The exemption amount determined under this subdivision is subject to the phase out
under section 55(d)(3) 55(d)(2) 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, 2006 2018, 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 "2005" "2017"
shall be substituted for the word "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.
"2016." 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.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 54.
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 |
$ |
930,000 990,000 |
$ |
0 |
|||||
| $ |
930,000 990,000 |
to |
$ |
1,869,999 1,989,999 |
$ |
190 200 |
|||
| $ |
1,870,000 1,990,000 |
to |
$ |
9,339,999 9,959,999 |
$ |
560 600 |
|||
| $ |
9,340,000 9,960,000 |
to |
$ |
18,679,999 19,929,999 |
$ |
1,870 1,990 |
|||
| $ |
18,680,000 19,930,000 |
to |
$ |
37,359,999 39,859,999 |
$ |
3,740 3,990 |
|||
| $ |
37,360,000 39,860,000 |
or |
more |
$ |
9,340 9,960 |
||||
(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 |
$ |
930,000 990,000 |
$ |
0 |
|||||
| $ |
930,000 990,000 |
to |
$ |
1,869,999 1,989,999 |
$ |
190 200 |
|||
| $ |
1,870,000 1,990,000 |
to |
$ |
9,339,999 9,959,999 |
$ |
560 600 |
|||
| $ |
9,340,000 9,960,000 |
to |
$ |
18,679,999 19,929,999 |
$ |
1,870 1,990 |
|||
| $ |
18,680,000 19,930,000 |
to |
$ |
37,359,999 39,859,999 |
$ |
3,740 3,990 |
|||
| $ |
37,360,000 39,860,000 |
or |
more |
$ |
9,340 9,960 |
||||
(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 "2012" "2017" must be substituted for the word "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. "2016." 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.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 55.
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.
(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.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 56.
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) and, (f), and (i) 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.
EFFECTIVE DATE.
This section is effective for wages paid after December 31, 2017.
Sec. 57.
Minnesota Statutes 2016, section 290.21, subdivision 4, is amended to read:
Subd. 4.
Dividends received from another corporation.
(a)(1) Eighty percent of
dividends received by a corporation during the taxable year from another corporation, in
which the recipient owns 20 percent or more of the stock, by vote and value, not including
stock described in section 1504(a)(4) of the Internal Revenue Code when the corporate
stock with respect to which dividends are paid does not constitute the stock in trade of the
taxpayer or would not be included in the inventory of the taxpayer, or does not constitute
property held by the taxpayer primarily for sale to customers in the ordinary course of the
taxpayer's trade or business, or when the trade or business of the taxpayer does not consist
principally of the holding of the stocks and the collection of the income and gains therefrom;
and
(2)(i) the remaining 20 percent of dividends if the dividends received are the stock in
an affiliated company transferred in an overall plan of reorganization and the dividend is
eliminated in consolidation under Treasury Department Regulation 1.1502-14(a), as amended
through December 31, 1989;
(ii) the remaining 20 percent of dividends if the dividends are 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 and the dividend is eliminated in
consolidation under Treasury Department Regulation 1.1502-14(a), as amended through
December 31, 1989, or is deducted under an election under section 243(b) of the Internal
Revenue Code; or
(iii) the remaining 20 percent of the dividends if the dividends are 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: (A) the dividend is eliminated in consolidation under Treasury Regulation
1.1502-14(a), as amended through December 31, 1989; or (B) the dividend is deducted
under an election under section 243(b) of the Internal Revenue Code.
(b) Seventy percent of dividends received by a corporation during the taxable year from
another corporation in which the recipient owns less than 20 percent of the stock, by vote
or value, not including stock described in section 1504(a)(4) of the Internal Revenue Code
when the corporate stock with respect to which dividends are paid does not constitute the
stock in trade of the taxpayer, or does not constitute property held by the taxpayer primarily
for sale to customers in the ordinary course of the taxpayer's trade or business, or when the
trade or business of the taxpayer does not consist principally of the holding of the stocks
and the collection of income and gain therefrom.
(c) The dividend deduction provided in this subdivision shall be allowed only with
respect to dividends that are included in a corporation's Minnesota taxable net income for
the taxable year.
The dividend deduction provided in this subdivision does not apply to a dividend from
a corporation which, for the taxable year of the corporation in which the distribution is made
or for the next preceding taxable year of the corporation, is a corporation exempt from tax
under section 501 of the Internal Revenue Code.
The dividend deduction provided in this subdivision does not apply to a dividend received
from a real estate investment trust as defined in section 856 of the Internal Revenue Code.
The dividend deduction provided in this subdivision applies to the amount of regulated
investment company dividends only to the extent determined under section 854(b) of the
Internal Revenue Code.
The dividend deduction provided in this subdivision shall not be allowed with respect
to any dividend for which a deduction is not allowed under the provisions of section 246(c)
or 246A of the Internal Revenue Code.
(d) If dividends received by a corporation that does not have nexus with Minnesota under
the provisions of Public Law 86-272 are included as income on the return of an affiliated
corporation permitted or required to file a combined report under section 290.17, subdivision
4, or 290.34, subdivision 2, then for purposes of this subdivision the determination as to
whether the trade or business of the corporation consists principally of the holding of stocks
and the collection of income and gains therefrom shall be made with reference to the trade
or business of the affiliated corporation having a nexus with Minnesota.
(e) The deduction provided by this subdivision does not apply if the dividends are paid
by a FSC as defined in section 922 of the Internal Revenue Code.
(f) If one or more of the members of the unitary group whose income is included on the
combined report received a dividend, the deduction under this subdivision for each member
of the unitary business required to file a return under this chapter is the product of: (1) 100
percent of the dividends received by members of the group; (2) the percentage allowed
pursuant to paragraph (a) or (b); and (3) the percentage of the taxpayer's business income
apportionable to this state for the taxable year under section 290.191 or 290.20.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 58.
Minnesota Statutes 2016, section 290.34, is amended by adding a subdivision to
read:
Subd. 5.
Insurance companies; interest expense limitation.
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.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 59.
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) and, (f), and (i) 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.
EFFECTIVE DATE.
This section is effective for wages paid after July 1, 2018.
Sec. 60.
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
alimony received to the extent not included in the recipient's income;
(xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue
Code;
(xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue
Code; and
(xvii) the amount deducted for certain expenses of elementary and secondary school
teachers under section 62(a)(2)(D) of the Internal Revenue Code;
(xviii) the amount excluded from federal adjusted gross income for qualified moving
expense reimbursements under section 132(a)(6) of the Internal Revenue Code, as amended
through December 16, 2016; and
(xix) the amount deducted from federal adjusted gross income for moving expenses
under section 217 of the Internal Revenue Code, as amended through December 16, 2016.
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)(1) 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.: $4,150. For taxable years beginning
after December 31, 2018, the commissioner shall annually adjust the $4,150 by the percentage
determined pursuant to the provisions of section 1(f) of the Internal Revenue Code, as
amended through March 31, 2018. The exemption amount as adjusted for inflation must be
rounded to the nearest $10. The determination of the commissioner under this subdivision
is not a rule under the Administrative Procedure Act, including section 14.386; and
(2) "retirement base amount" means the deductible amount for the taxable year for the
claimant and spouse under section 219(b)(5)(A) of the Internal Revenue Code, adjusted for
inflation as provided in section 219(b)(5)(C) of the Internal Revenue Code, without regard
to whether the claimant or spouse claimed a deduction, and "traditional or Roth-style
retirement account or plan" means retirement plans under sections 401, 403, 408, 408A,
and 457 of the Internal Revenue Code.
EFFECTIVE DATE.
This section is effective for property tax refunds based on property
taxes payable after December 31, 2018, and rent constituting property taxes payable after
December 31, 2017.
Sec. 61.
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 $350
$490 per month. The gross rent of a resident of an adult foster care home is $550 $760 per
month. Beginning for rent paid in 2002 2019, 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,
2001 2017, 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.
EFFECTIVE DATE.
This section is effective for refunds based on rent paid after
December 31, 2017, and property taxes payable after December 31, 2018.
Sec. 62.
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 December 16, 2016 March 31, 2018.
EFFECTIVE DATE.
This section is effective for property tax refunds based on property
taxes payable after December 31, 2018, and rent paid after December 31, 2017.
Sec. 63.
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 December 16, 2016 March 31, 2018.
(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.
EFFECTIVE DATE.
This section is effective retroactively for estates of decedents
dying after December 31, 2017.
Sec. 64.
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 Code, as amended
through December 16, 2016;
(2) the sale is between members of a controlled group as defined in section 1563(a) of
the Internal Revenue Code;
(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).
EFFECTIVE DATE.
This section is effective retroactively for sales and purchases
made after December 31, 2017.
Sec. 65.
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 Code,
as amended through December 16, 2016;
(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.
EFFECTIVE DATE.
This section is effective retroactively for sales and purchases
made after December 31, 2017.
Sec. 66.
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 the federal taxable adjusted gross 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.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 67.
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 taxable adjusted gross 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.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 68.
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 federal adjusted
gross income, federal 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.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 69. REPEALER.
Minnesota Statutes 2016, sections 290.0131, subdivisions 7 and 11; 290.0133,
subdivisions 13 and 14; and 290.10, subdivision 2,
are repealed.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
ARTICLE 2
INCOME, CORPORATE FRANCHISE, AND ESTATE TAXES
Section 1.
Minnesota Statutes 2016, section 16A.152, is amended by adding a subdivision
to read:
Subd. 2a.
Tax rates adjustment.
(a) The commissioner of revenue must make reductions
to the individual income tax rates and the corporate franchise tax rate in section 290.06,
subdivisions 1 and 2c, and the alternative minimum tax rates in sections 290.091 and
290.0921, by one-tenth of one percentage point if, on the basis of a November forecast of
general fund revenues and expenditures, the commissioner of management and budget
determines that the following conditions have been met:
(1) the provisions of subdivision 2, paragraph (a), clauses (1) to (4), are satisfied; and
(2) for a forecast occurring in an even-numbered year, revenues exceed expenditures,
excluding any carryforward amounts, at the close of the next biennium and the subsequent
biennium by an amount greater than the revenue reduction resulting from the corresponding
rate cuts defined in this paragraph, as estimated by the commissioner of revenue; or
(3) for a forecast occurring in an odd-numbered year, revenues exceed expenditures,
excluding any carryforward amounts, at the close of the current biennium and the subsequent
biennium by an amount greater than the revenue reduction resulting from the corresponding
rate cuts defined in this paragraph, as estimated by the commissioner of revenue.
(b) Rate reductions under this subdivision resulting from a November forecast in an
even-numbered year are effective for all taxable years beginning with the taxable year that
begins one year after January 1 of the year immediately following the forecast year.
(c) Rate reductions under this subdivision resulting from a November forecast in an
odd-numbered year are effective for all taxable years beginning with the taxable year that
begins on January 1 of the year immediately following the forecast year.
(d) Reductions enacted under this subdivision shall not exceed one percentage point for
each rate.
(e) Rate reductions under this subdivision shall occur before calculating any transfers
to the budget reserve account under subdivision 1b, paragraph (b).
(f) The commissioner of revenue shall publish the new tax rates in the State Register as
soon as is practicable. After the commissioner of revenue publishes the new tax rates in the
State Register, the revisor of statutes must update the tax rates in sections 290.06,
subdivisions 1 and 2c, 290.091, and 290.0921, in the next edition of Minnesota Statutes.
EFFECTIVE DATE.
This section is effective July 1, 2018.
Sec. 2.
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 $15,000,000 $5,000,000 in credits to
qualified investors or qualified funds for taxable years beginning after December 31, 2013
2017, and before January 1, 2017, 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 2019; and
(2) for taxable years beginning after December 31, 2014, and before January 1, 2018,
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.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 3.
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,
2017 2018, except that reporting requirements under subdivision 6 and revocation of credits
under subdivision 7 remain in effect through 2019 2020 for qualified investors and qualified
funds, and through 2021 2022 for qualified small businesses, reporting requirements under
subdivision 9 remain in effect through 2022 2023, and the appropriation in subdivision 11
remains in effect through 2021 2022.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 4.
Minnesota Statutes 2017 Supplement, section 289A.10, subdivision 1, is amended
to read:
Subdivision 1.
Return required.
In the case of a decedent who has an interest in property
with a situs in Minnesota, the personal representative must submit a Minnesota estate tax
return to the commissioner, on a form prescribed by the commissioner, if:
(1) a federal estate tax return is required to be filed; or
(2) the sum of the federal gross estate and federal adjusted taxable gifts, as defined in
section 2001(b) of the Internal Revenue Code, made within three years of the date of the
decedent's death exceeds $1,200,000 for estates of decedents dying in 2014; $1,400,000 for
estates of decedents dying in 2015; $1,600,000 for estates of decedents dying in 2016;
$2,100,000 for estates of decedents dying in 2017; $2,400,000 for estates of decedents dying
in 2018; $2,700,000 and $5,000,000 for estates of decedents dying in 2019; and $3,000,000
for estates of decedents dying in 2020 and thereafter.
The return must contain a computation of the Minnesota estate tax due. The return must
be signed by the personal representative.
EFFECTIVE DATE.
This section is effective retroactively for estates of decedents
dying after December 31, 2017.
Sec. 5.
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 taxable under
chapter 297I, 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).
EFFECTIVE DATE.
This section is effective retroactively for taxable years beginning
after December 31, 2016.
Sec. 6.
Minnesota Statutes 2016, section 290.01, is amended by adding a subdivision to
read:
Subd. 5c.
Disqualified captive insurance company.
(a) "Disqualified captive insurance
company" means an insurance company that:
(1)(i) is licensed as a captive insurance company under the laws of any state or foreign
country; or
(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
(2)(i) receives less than 50 percent of its gross receipts for the taxable year from
premiums; or
(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.
(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.
EFFECTIVE DATE.
This section is effective retroactively for taxable years beginning
after December 31, 2016.
Sec. 7.
Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision
to read:
Subd. 32.
Disallowed section 280E expenses; medical cannabis manufacturers.
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.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 8.
Minnesota Statutes 2016, section 290.0134, is amended by adding a subdivision
to read:
Subd. 19.
Disallowed section 280E expenses; medical cannabis manufacturers.
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.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 9.
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, as 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 other than a disqualified captive
insurance company.
EFFECTIVE DATE.
This section is effective retroactively for taxable years beginning
after December 31, 2016.
Sec. 10.
Minnesota Statutes 2016, section 290.0685, subdivision 1, is amended to read:
Subdivision 1.
Credit allowed.
(a) An eligible individual is allowed a credit against the
tax imposed by this chapter equal to $2,000 for each birth for which a certificate of birth
resulting in stillbirth has been issued under section 144.2151 or in the case of a resident
described in paragraph (c), clauses (2) and (3), that was in another state when a birth resulting
in stillbirth occurred, if a certificate would have been issued under section 144.2151. The
credit under this section is allowed only in the taxable year in which the stillbirth occurred
and if the child would have been a dependent of the taxpayer as defined in section 152 of
the Internal Revenue Code.
(b) For a nonresident or part-year resident, the credit must be allocated based on the
percentage calculated under section 290.06, subdivision 2c, paragraph (e).
(c) For purposes of this section, "eligible individual" means:
(1) the individual who gave birth resulting in stillbirth and who is also listed as a parent
on the certificate of birth resulting in stillbirth;
(2) in the case of a resident that was transported to another state for medical care that
resulted in a birth resulting in stillbirth, the individual who gave birth to the child; or
(3) in the case of a resident of Minnesota who is a member of the armed forces of the
United States or United Nations, stationed outside the state in compliance with military
orders, the individual who gave birth resulting in stillbirth, or if that individual is a
nonresident of Minnesota, the spouse.
EFFECTIVE DATE.
This section is effective retroactively for taxable years beginning
after December 31, 2015.
Sec. 11.
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, and 26, and 27; 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.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 12.
Minnesota Statutes 2016, section 290.0921, subdivision 3, is amended to read:
Subd. 3.
Alternative minimum taxable income.
"Alternative minimum taxable income"
is Minnesota net income as defined in section 290.01, subdivision 19, and includes the
adjustments and tax preference items in sections 56, 57, 58, and 59(d), (e), (f), and (h) of
the Internal Revenue Code. If a corporation files a separate company Minnesota tax return,
the minimum tax must be computed on a separate company basis. If a corporation is part
of a tax group filing a unitary return, the minimum tax must be computed on a unitary basis.
The following adjustments must be made.
(1) The portion of the depreciation deduction allowed for federal income tax purposes
under section 168(k) of the Internal Revenue Code that is required as an addition under
section 290.0133, subdivision 11, is disallowed in determining alternative minimum taxable
income.
(2) The subtraction for depreciation allowed under section 290.0134, subdivision 13, is
allowed as a depreciation deduction in determining alternative minimum taxable income.
(3) The alternative tax net operating loss deduction under sections 56(a)(4) and 56(d)
of the Internal Revenue Code does not apply.
(4) The special rule for certain dividends under section 56(g)(4)(C)(ii) of the Internal
Revenue Code does not apply.
(5) The tax preference for depletion under section 57(a)(1) of the Internal Revenue Code
does not apply.
(6) The tax preference for tax exempt interest under section 57(a)(5) of the Internal
Revenue Code does not apply.
(7) The tax preference for charitable contributions of appreciated property under section
57(a)(6) of the Internal Revenue Code does not apply.
(8) For purposes of calculating the adjustment for adjusted current earnings in section
56(g) of the Internal Revenue Code, the term "alternative minimum taxable income" as it
is used in section 56(g) of the Internal Revenue Code, means alternative minimum taxable
income as defined in this subdivision, determined without regard to the adjustment for
adjusted current earnings in section 56(g) of the Internal Revenue Code.
(9) For purposes of determining the amount of adjusted current earnings under section
56(g)(3) of the Internal Revenue Code, no adjustment shall be made under section 56(g)(4)
of the Internal Revenue Code with respect to (i) the amount of foreign dividend gross-up
subtracted as provided in section 290.0134, subdivision 2, or (ii) the amount of refunds of
income, excise, or franchise taxes subtracted as provided in section 290.0134, subdivision
8.
(10) Alternative minimum taxable income excludes the income from operating in a job
opportunity building zone as provided under section 469.317.
(11) The subtraction for disallowed section 280E expenses of medical cannabis
manufacturers allowed under section 290.0134, subdivision 17, is allowed as a deduction
in determining alternative minimum taxable income.
Items of tax preference must not be reduced below zero as a result of the modifications
in this subdivision.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
Sec. 13.
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 entities, but excluding an insurance company as defined in
section 290.01, subdivision 5b, that is also a disqualified captive insurance company, 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 is:
(1) licensed to engage in the business of insurance in Minnesota pursuant to chapter
60A; or
(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.
(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 not a disqualified
captive insurance company.
EFFECTIVE DATE.
This section is effective retroactively for taxable years beginning
after December 31, 2016.
Sec. 14.
Minnesota Statutes 2017 Supplement, section 291.016, subdivision 3, is amended
to read:
Subd. 3.
Subtraction.
(a) For estates of decedents dying after December 31, 2016 2017,
a subtraction is allowed in computing the Minnesota taxable estate, equal to the sum of:
(1) the exclusion amount for the year of death under paragraph (b); and
(2) the lesser of:
(i) the value of qualified small business property under section 291.03, subdivision 9,
and the value of qualified farm property under section 291.03, subdivision 10; or
(ii) $5,000,000 minus the exclusion amount for the year of death under paragraph (b).
(b) The following exclusion amounts apply for the year of death:
(1) $2,100,000 for decedents dying in 2017;
(2) $2,400,000 for decedents dying in 2018; and
(3) $2,700,000 (2) $5,000,000 for decedents dying in 2019; and
(4) $3,000,000 for decedents dying in 2020 and thereafter.
(c) The subtraction under this subdivision must not reduce the Minnesota taxable estate
to less than zero.
EFFECTIVE DATE.
This section is effective for estates of decedents dying after
December 31, 2019.
Sec. 15.
Minnesota Statutes 2017 Supplement, section 291.03, subdivision 1, is amended
to read:
Subdivision 1.
Tax amount.
The tax imposed must be computed by applying to the
Minnesota taxable estate the following schedule of rates and then the resulting amount
multiplied by a fraction, not greater than one, the numerator of which is the value of the
Minnesota gross estate plus the value of gifts under section 291.016, subdivision 2, clause
(3), with a Minnesota situs, and the denominator of which is the federal gross estate plus
the value of gifts under section 291.016, subdivision 2, clause (3):
(a) For estates of decedents dying in 2017:
|
Amount of Minnesota Taxable Estate |
Rate of Tax |
|
Not over $5,100,000 |
12 percent |
|
Over $5,100,000 but not over $7,100,000 |
$612,000 plus 12.8 percent of the excess over $5,100,000 |
|
Over $7,100,000 but not over $8,100,000 |
$868,000 plus 13.6 percent of the excess over $7,100,000 |
|
Over $8,100,000 but not over $9,100,000 |
$1,004,000 plus 14.4 percent of the excess over $8,100,000 |
|
Over $9,100,000 but not over $10,100,000 |
$1,148,000 plus 15.2 percent of the excess over $9,100,000 |
|
Over $10,100,000 |
$1,300,000 plus 16 percent of the excess over $10,100,000 |
(b) For estates of decedents dying in 2018 and thereafter:
| Amount of Minnesota Taxable Estate |
Rate of Tax |
| Not over $7,100,000 |
13 percent |
| Over $7,100,000 but not over $8,100,000 |
$923,000 plus 13.6 percent of the excess over $7,100,000 |
| Over $8,100,000 but not over $9,100,000 |
$1,059,000 plus 14.4 percent of the excess over $8,100,000 |
| Over $9,100,000 but not over $10,100,000 |
$1,203,000 plus 15.2 percent of the excess over $9,100,000 |
| Over $10,100,000 |
$1,355,000 plus 16 percent of the excess over $10,100,000 |
EFFECTIVE DATE.
This section is effective retroactively for estates of decedents
dying after December 31, 2017.
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 (7) (8), 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.
EFFECTIVE DATE.
This section is effective retroactively for estates of decedents
dying after December 31, 2016.
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 section 2036, 2037, and 2038, 2040, or 2044 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 decedent or the decedent's spouse continuously owned the property, or an
undivided or joint interest in the property, including property the decedent or the decedent's
spouse is deemed to own under sections section 2036, 2037, and 2038, 2040, or 2044 of
the Internal Revenue Code, or under subdivision 1d, 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. 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.
(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.
EFFECTIVE DATE.
This section is effective retroactively for estates of decedents
dying after December 31, 2017.
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 decedent or the decedent's spouse continuously owned the property, or an
undivided or joint interest in the property, including property the decedent or the decedent's
spouse is deemed to own under sections section 2036, 2037, and 2038, 2040, or 2044 of
the Internal Revenue Code, or under subdivision 1d, 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.
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.
(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.
EFFECTIVE DATE.
This section is effective retroactively for estates of decedents
dying after December 31, 2017.
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 (7) (8); 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.
EFFECTIVE DATE.
This section is effective retroactively for estates of decedents
dying after December 31, 2016.
Sec. 20. REPEALER.
(a)
Minnesota Statutes 2016, sections 289A.10, subdivision 1a; 289A.12, subdivision
18; 289A.18, subdivision 3a; 289A.20, subdivision 3a; and 291.03, subdivisions 8 and 10,
are repealed.
(b)
Minnesota Statutes 2017 Supplement, section 291.03, subdivisions 9 and 11,
are
repealed.
EFFECTIVE DATE.
This section is effective for estates of decedents dying after
December 31, 2018.
ARTICLE 3
SALES, USE, AND EXCISE TAXES
Section 1.
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, but not release fees or other charges
for pen-raised game or poultry by a game farm or hunting preserve;
(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,
but does not include release fees or other charges for pen-raised game or poultry by a game
farm or hunting preserve. 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) massages, 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; 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.
EFFECTIVE DATE.
This section is effective for sales and purchases made after June
30, 2018.
Sec. 2.
Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision to
read:
Subd. 51.
Minnetonka police and fire public safety facilities.
Materials and supplies
used in, and equipment incorporated into, (1) the construction of a new fire station on the
campus of the Minnetonka city hall, and (2) the remodeling and expansion of an existing
police and fire station in Minnetonka to accommodate its use as a police station are exempt.
EFFECTIVE DATE.
This section is effective for sales and purchases made after June
30, 2018, and before January 1, 2021.
Sec. 3.
Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision to
read:
Subd. 52.
Inver Grove Heights fire station.
Materials and supplies used in and
equipment incorporated into the construction of a new fire station, which includes firefighting
and public safety training facilities, in the city of Inver Grove Heights is exempt.
EFFECTIVE DATE.
This section is effective for sales and purchases made after June
30, 2018, and before January 1, 2021.
Sec. 4.
Minnesota Statutes 2016, section 477A.016, is amended to read:
477A.016 NEW TAXES PROHIBITED.
(a) No county, city, town or other taxing authority shall increase a present tax or impose
a new tax on sales or income.
(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:
(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
(2) any container used for transporting, protecting, or consuming food.
(c) For purposes of this section:
(1) "food" has the meaning given in section 34A.01, subdivision 4; and
(2) "container" means a bottle, cup, can, bag, or other packaging that is made from
plastic, aluminum, glass, cardboard, or other material.
(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.
EFFECTIVE DATE.
This section is effective the day following final enactment.
Sec. 5.
Laws 1986, chapter 396, section 5, as amended by Laws 2001, First Special Session
chapter 5, article 12, section 87, and Laws 2012, chapter 299, article 3, section 3, is amended
to read:
Sec. 5. LIQUOR, LODGING, AND RESTAURANT TAXES.
The city may, by resolution, levy in addition to taxes authorized by other law:
(1) a sales tax of not more than three percent on the gross receipts on retail on-sales of
intoxicating liquor and fermented malt beverages when sold at licensed on-sale liquor
establishments located within the downtown taxing area, provided that this tax may not be
imposed if sales of intoxicating liquor and fermented malt beverages are exempt from
taxation under chapter 297A;
(2) a sales tax of not more than three percent on the gross receipts from the furnishing
for consideration of lodging for a period of less than 30 days at a hotel, motel, rooming
house, tourist court, or trailer camp located within the city by a hotel or motel which has
more than 50 rooms available for lodging; the tax imposed under this clause shall be at a
rate that, when added to the sum of the rate of the sales tax imposed under Minnesota
Statutes, chapter 297A, the rate of the sales tax imposed under section 4, and the rate of any
other taxes on lodging in the city of Minneapolis, equals 13 13.875 percent; and
(3) a sales tax of not more than three percent on the gross receipts on all sales of food
primarily for consumption on or off the premises by restaurants and places of refreshment
as defined by resolution of the city that occur within the downtown taxing area.
The taxes authorized by this section must not be terminated before January 1, 2047. The
taxes shall be imposed and may be adjusted periodically by the city council such that the
rates imposed produce revenue sufficient, together with the tax imposed under section 4,
to finance the purposes described in Minnesota Statutes, section 297A.994, and section 4,
subdivisions 3 and 4. These taxes shall be applied, first, as provided in Minnesota Statutes,
section 297A.994, subdivision 3, clauses (1) to (3), and then, solely to pay, secure, maintain,
and fund the payment of any principal of, premium on, and interest on any bonds or any
other purposes in section 4, subdivision 3 or 4. The commissioner of revenue may enter
into appropriate agreements with the city to provide for the collection of these taxes by the
state on behalf of the city. These taxes shall be subject to the same interest, penalties, and
enforcement provisions as the taxes imposed under Minnesota Statutes, chapter 297A.
EFFECTIVE DATE.
This section is effective for sales and purchases made after
September 30, 2018.
Sec. 6.
Laws 1986, chapter 462, section 31, as amended by Laws 1991, chapter 291, article
8, section 24, and Laws 2011, chapter 112, article 4, section 6, is amended to read:
Sec. 31. AUTHORITY FOR TAXATION.
Notwithstanding Minnesota Statutes, section 477A.016, or any other law, and
supplemental to the tax imposed by Laws 1982, chapter 523, article 25, section 1, the city
of St. Paul may impose, by ordinance, a tax, at a rate not greater than three four percent, on
the gross receipts from the furnishing for consideration of lodging and related services at a
hotel, rooming house, tourist court, motel, or resort, other than the renting or leasing of
space for a continuous period of 30 days or more. The tax does not apply to the furnishing
of lodging and related services by a business having less than 50 lodging rooms. The tax
shall be collected by and its proceeds paid to the city. Ninety-five percent of the revenues
generated by this tax shall be used to fund a convention bureau to market and promote the
city as a tourist or convention center.
EFFECTIVE DATE.
This section is effective the first day of the calendar quarter
beginning at least 30 days after the governing body of the city of St. Paul and its chief
clerical officer timely complete their compliance with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
ARTICLE 4
PROPERTY TAX
Section 1.
Minnesota Statutes 2016, section 103D.905, subdivision 9, is amended to read:
Subd. 9.
Project tax levy.
In addition to other tax levies provided in this section or in
any other law, a watershed district may levy a tax:
(1) to pay the costs of projects undertaken by the watershed district which that are to be
funded, in whole or in part, with the proceeds of money appropriated by law for grants or
construction or implementation loans under sections 103F.701 to 103F.755 to the district;
(2) to pay the principal of, or premium or administrative surcharge, if any, and interest
on, the bonds and notes issued by the watershed district pursuant to section 103F.725; or
(3) to repay the construction or implementation loans under sections 103F.701 to
103F.755.
Taxes levied with respect to payment of bonds and notes shall comply with section
475.61.
EFFECTIVE DATE.
This section is effective for taxes payable in 2019 and thereafter.
Sec. 2.
Minnesota Statutes 2016, section 138.053, is amended to read:
138.053 COUNTY HISTORICAL SOCIETY; TAX LEVY; CITIES OR TOWNS.
The governing body of any home rule charter or statutory city or town may annually
appropriate from its general fund an amount not to exceed 0.02418 percent of estimated
market value, derived from ad valorem taxes on property or other revenues, to be paid to
the historical society of its respective city, town, or county to be used for the promotion of
historical work and to aid in defraying the expenses of carrying on the historical work in
the county. No city or town may appropriate any funds for the benefit of any historical
society unless the society is affiliated with and approved by the Minnesota Historical Society.
EFFECTIVE DATE.
This section is effective the day following final enactment.
Sec. 3.
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. 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.
EFFECTIVE DATE.
This section is effective the day following final enactment.
Sec. 4.
Minnesota Statutes 2016, section 272.02, is amended by adding a subdivision to
read:
Subd. 102.
Certain property owned by an Indian tribe.
(a) Property is exempt that:
(1) is located in a city of the first class with a population of more than 380,000 as of the
2010 federal census;
(2) was on January 1, 2016, and is for the current assessment, owned by a federally
recognized Indian tribe, or its instrumentality, that is located within the state of Minnesota;
and
(3) is used exclusively as a pharmacy.
(b) Property that qualifies for the exemption under this subdivision is limited to parcels
and structures that do not exceed, in the aggregate, 4,000 square feet. Property acquired for
single-family housing, market-rate apartments, agriculture, or forestry does not qualify for
this exemption. The exemption created by this subdivision expires with taxes payable in
2028.
EFFECTIVE DATE.
This section is effective beginning with taxes payable in 2019
and thereafter.
Sec. 5.
Minnesota Statutes 2017 Supplement, section 272.029, subdivision 2, is amended
to read:
Subd. 2.
Definitions.
(a) For the purposes of this section:
(1) "wind energy conversion system" has the meaning given in section 216C.06,
subdivision 19, and also includes a substation that is used and owned by one or more wind
energy conversion facilities;
(2) "large scale wind energy conversion system" means a wind energy conversion system
of more than 12 megawatts, as measured by the nameplate capacity of the system or as
combined with other systems as provided in paragraph (b);
(3) "medium scale wind energy conversion system" means a wind energy conversion
system of over two and not more than 12 megawatts, as measured by the nameplate capacity
of the system or as combined with other systems as provided in paragraph (b); and
(4) "small scale wind energy conversion system" means a wind energy conversion system
of two megawatts and under, as measured by the nameplate capacity of the system or as
combined with other systems as provided in paragraph (b).
(b) For systems installed and contracted for after January 1, 2002, the total size of a
wind energy conversion system under this subdivision shall be determined according to this
paragraph. Unless the systems are interconnected with different distribution systems, the
nameplate capacity of one wind energy conversion system shall be combined with the
nameplate capacity of any other wind energy conversion system that is:
(1) located within five miles of the wind energy conversion system;
(2) constructed within the same 12-month period as the wind energy conversion system;
and
(3) under common ownership.
In the case of a dispute, the commissioner of commerce shall determine the total size of
the system, and shall draw all reasonable inferences in favor of combining the systems.
(c) In making a determination under paragraph (b), the commissioner of commerce may
determine that two wind energy conversion systems are under common ownership when
the underlying ownership structure contains similar the same persons or entities, even if the
ownership shares differ between the two systems. Wind energy conversion systems are not
under common ownership solely because the same person or entity provided equity financing
for the systems. Wind energy conversion systems that were determined by the commissioner
of commerce to be eligible for a renewable energy production incentive under section
216C.41 are not under common ownership unless a change in the qualifying owner was
made to an owner of another wind energy conversion system subsequent to the determination
by the commissioner of commerce.
EFFECTIVE DATE.
This section is effective the day following final enactment.
Sec. 6.
Minnesota Statutes 2016, section 273.124, subdivision 3a, is amended to read:
Subd. 3a.
Manufactured home park cooperative.
(a) When a manufactured home park
is owned by a corporation or association organized under chapter 308A or 308B, and each
person who owns a share or shares in the corporation or association is entitled to occupy a
lot within the park, the corporation or association may claim homestead treatment for the
park. Each lot must be designated by legal description or number, and each lot is limited to
not more than one-half acre of land.
(b) The manufactured home park shall be entitled to homestead treatment if all of the
following criteria are met:
(1) the occupant or the cooperative corporation or association is paying the ad valorem
property taxes and any special assessments levied against the land and structure either
directly, or indirectly through dues to the corporation or association; and
(2) the corporation or association organized under chapter 308A or 308B is wholly
owned by persons having a right to occupy a lot owned by the corporation or association.
(c) A charitable corporation, organized under the laws of Minnesota with no outstanding
stock, and granted a ruling by the Internal Revenue Service for 501(c)(3) tax-exempt status,
qualifies for homestead treatment with respect to a manufactured home park if its members
hold residential participation warrants entitling them to occupy a lot in the manufactured
home park.
(d) "Homestead treatment" under this subdivision means the classification rate provided
for class 4c property classified under section 273.13, subdivision 25, paragraph (d), clause
(5), item (ii)., and the homestead market value exclusion under section 273.13, subdivision
35, does not apply and the property taxes assessed against the park shall not be included in
the determination of taxes payable for rent paid under section 290A.03.
EFFECTIVE DATE.
This section is effective beginning with claims for taxes payable
in 2019.
Sec. 7.
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 to:
(1) the county treasurer solely for the purpose of proceeding under the Revenue Recapture
Act to recover personal property taxes owing; and
(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.
EFFECTIVE DATE.
This section is effective the day following final enactment.
Sec. 8.
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, either: (i) the business located on the property must provide recreational activities,
at least 40 percent of the annual gross lodging receipts related to the property must be from
business conducted during 90 consecutive days, and either (A) at least 60 percent of all paid
bookings by lodging guests during the year must be for periods of at least two consecutive
nights; or (B) at least 20 percent of the annual gross receipts must be from charges for
providing recreational activities, or; (ii) the business must contain 20 or fewer rental units,
and must be located in a township or a city with a population of 2,500 or less located outside
the metropolitan area, as defined under section 473.121, subdivision 2, that contains a portion
of a state trail administered by the Department of Natural Resources; 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. 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.
EFFECTIVE DATE.
This section is effective beginning with taxes payable in 2019.
Sec. 9.
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 first, except as otherwise
provided in paragraph (n). Qualification under this paragraph requires an application under
paragraph (h), and a spouse must notify the assessor if there is a change in the spouse's
marital status, ownership of the property, or use of the property as a permanent residence.
(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, except as otherwise provided in paragraph (n).
(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 December 15 of the first assessment year for which the
exclusion is sought. For an application received after July 1 December 15, 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. 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.
(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, except as otherwise provided in
paragraph (n), if:
(1) the spouse files a first-time application within two years of the death of the service
member 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.
(n) A spouse who received the benefit in paragraph (c), (d), or (k) but no longer holds
the legal or beneficial title to the property may continue to receive the exclusion for a
property other than the property for which the exclusion was initially granted until the spouse
remarries or sells, transfers, or otherwise disposes of the property, provided that:
(1) the spouse applies under paragraph (h) for the continuation of the exclusion allowed
under this paragraph;
(2) the spouse holds the legal or beneficial title to the property for which the continuation
of the exclusion is sought under this paragraph and permanently resides there;
(3) the estimated market value of the property for which the exclusion is sought under
this paragraph is less than or equal to the estimated market value of the property that first
received the exclusion, based on the value of each property on the date of the sale of the
property that first received the exclusion; and
(4) the spouse has not previously received the benefit under this paragraph for a property
other than the property for which the exclusion is sought.
The exclusion for a spouse under this paragraph and paragraph (c), (d), or (k) may not
exceed a total of eight taxes payable years.
EFFECTIVE DATE.
This section is effective beginning with assessments in 2018, for
taxes payable in 2019.
Sec. 10.
Minnesota Statutes 2017 Supplement, section 275.025, subdivision 1, is amended
to read:
Subdivision 1.
Levy amount.
(a) 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.
(b) The commissioner shall increase or decrease the preliminary or final rate for a year
as necessary to account for errors and tax base changes that affected a preliminary or final
rate for either of the two preceding years. Adjustments are allowed to the extent that the
necessary information is available to the commissioner at the time the rates for a year must
be certified, and for the following reasons:
(1) an erroneous report of taxable value by a local official;
(2) an erroneous calculation by the commissioner; and
(3) an increase or decrease in taxable value for commercial-industrial or seasonal
residential recreational property reported on the abstracts of tax lists submitted under section
275.29 that was not reported on the abstracts of assessment submitted under section 270C.89
for the same year.
The commissioner may, but need not, make adjustments if the total difference in the tax
levied for the year would be less than $100,000.
(c) Each year, the commissioner must reduce the state commercial-industrial levy under
paragraph (a) by the amount of state general tax that would be paid by property defined in
subdivision 2, paragraph (c), if it were not exempt.
EFFECTIVE DATE.
This section is effective beginning with taxes payable in 2020.
Sec. 11.
Minnesota Statutes 2017 Supplement, section 275.025, subdivision 2, is amended
to read:
Subd. 2.
Commercial-industrial tax capacity.
(a) For the purposes of this section,
"commercial-industrial tax capacity" means the tax capacity of all taxable property classified
as class 3 or class 5(1) under section 273.13, excluding:
(1) the tax capacity attributable to the first $100,000 of market value of each parcel of
commercial-industrial property as defined under section 273.13, subdivision 24, clauses (1)
and (2);
(2) electric generation attached machinery under class 3; and
(3) property described in section 473.625; and
(4) property described in paragraph (c).
(b) County commercial-industrial tax capacity amounts are not adjusted for the captured
net tax capacity of a tax increment financing district under section 469.177, subdivision 2,
the net tax capacity of transmission lines deducted from a local government's total net tax
capacity under section 273.425, or fiscal disparities contribution and distribution net tax
capacities under chapter 276A or 473F. For purposes of this subdivision, the procedures
for determining eligibility for tier 1 under section 273.13, subdivision 24, clauses (1) and
(2), shall apply in determining the portion of a property eligible to be considered within the
first $100,000 of market value.
(c) Personal property that is part of an intrastate natural gas transportation or distribution
pipeline system is exempt from the tax imposed under this section if:
(1) construction of the pipeline system began after January 1, 2018; and
(2) the property is located in an area:
(i) outside the seven-county metropolitan area, as defined in section 473.121, subdivision
3; and
(ii) in which households or businesses lacked access to natural gas distribution systems
as of January 1, 2018.
The exemption under this paragraph 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 paragraph.
EFFECTIVE DATE.
This section is effective beginning with taxes payable in 2020.
Sec. 12.
Minnesota Statutes 2016, section 275.066, is amended to read:
275.066 SPECIAL TAXING DISTRICTS; DEFINITION.
For the purposes of property taxation and property tax state aids, the term "special taxing
districts" includes the following entities:
(1) watershed districts under chapter 103D;
(2) sanitary districts under sections 442A.01 to 442A.29;
(3) regional sanitary sewer districts under sections 115.61 to 115.67;
(4) regional public library districts under section 134.201;
(5) park districts under chapter 398;
(6) regional railroad authorities under chapter 398A;
(7) hospital districts under sections 447.31 to 447.38;
(8) St. Cloud Metropolitan Transit Commission under sections 458A.01 to 458A.15;
(9) Duluth Transit Authority under sections 458A.21 to 458A.37;
(10) regional development commissions under sections 462.381 to 462.398;
(11) housing and redevelopment authorities under sections 469.001 to 469.047;
(12) port authorities under sections 469.048 to 469.068;
(13) economic development authorities under sections 469.090 to 469.1081;
(14) Metropolitan Council under sections 473.123 to 473.549;
(15) Metropolitan Airports Commission under sections 473.601 to 473.679;
(16) Metropolitan Mosquito Control Commission under sections 473.701 to 473.716;
(17) Morrison County Rural Development Financing Authority under Laws 1982, chapter
437, section 1;
(18) Croft Historical Park District under Laws 1984, chapter 502, article 13, section 6;
(19) East Lake County Medical Clinic District under Laws 1989, chapter 211, sections
1 to 6;
(20) Floodwood Area Ambulance District under Laws 1993, chapter 375, article 5,
section 39;
(21) Middle Mississippi River Watershed Management Organization under sections
103B.211 and 103B.241;
(22) emergency medical services special taxing districts under section 144F.01;
(23) a county levying under the authority of section 103B.241, 103B.245, or 103B.251;
(24) Southern St. Louis County Special Taxing District; Chris Jensen Nursing Home
under Laws 2003, First Special Session chapter 21, article 4, section 12;
(25) an airport authority created under section 360.0426; and
(26) fire protection special taxing districts under section 299O.01; and
(27) any other political subdivision of the state of Minnesota, excluding counties, school
districts, cities, and towns, that has the power to adopt and certify a property tax levy to the
county auditor, as determined by the commissioner of revenue.
EFFECTIVE DATE.
This section is effective the day following final enactment.
Sec. 13.
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 2h, that is first payable in the
year that the property tax is payable. In the case of a claimant who makes ground lease
payments, "property taxes payable" includes the amount of the payments directly attributable
to the property taxes assessed against the parcel on which the house is located. Regardless
of the limitations in section 280A(c)(5) of the Internal Revenue Code, "property taxes
payable" must be apportioned or reduced for the use of a portion of the claimant's homestead
for a business purpose if the claimant deducts any business depreciation expenses for the
use of a portion of the homestead or deducts expenses under section 280A of the Internal
Revenue Code for a business operated in the claimant's homestead. For homesteads which
are manufactured homes as defined in section 273.125, subdivision 8, and for homesteads
which are including manufactured homes located in a manufactured home community owned
by a cooperative organized under chapter 308A or 308B, and park trailers taxed as
manufactured homes under section 168.012, subdivision 9, "property taxes payable" shall
also include 17 percent of the gross rent paid in the preceding year for the site on which the
homestead is located. When a homestead is owned by two or more persons as joint tenants
or tenants in common, such tenants shall determine between them which tenant may claim
the property taxes payable on the homestead. If they are unable to agree, the matter shall
be referred to the commissioner of revenue whose decision shall be final. Property taxes
are considered payable in the year prescribed by law for payment of the taxes.
In the case of a claim relating to "property taxes payable," the claimant must have owned
and occupied the homestead on January 2 of the year in which the tax is payable and (i) the
property must have been classified as homestead property pursuant to section 273.124, on
or before December 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.
EFFECTIVE DATE.
This section is effective beginning with claims for taxes payable
in 2019.
Sec. 14.
[299O.01] FIRE PROTECTION SPECIAL TAXING DISTRICTS.
Subdivision 1.
Definitions.
(a) For purposes of this section, the following terms have
the meanings given unless the context clearly requires otherwise.
(b) "City" means a statutory or home rule charter city.
(c) "Governing body" means for a city, its city council; for a county, its county board;
and for a town, the board of supervisors.
(d) "Political subdivision" means a county, a city, or a township organized to provide
town government.
Subd. 2.
Authority to establish.
(a) Two or more political subdivisions may establish,
by resolution of their governing bodies, a special taxing district to provide fire protection
or emergency medical services or both in the area of the district, comprising the jurisdiction
of each of the political subdivisions forming the district. For a county that participates in
establishing a district, the county's jurisdiction comprises the unorganized territory of the
county that it designates in its resolution for inclusion in the district. The area of the special
taxing district does not need to be contiguous or its boundaries continuous.
(b) Before establishing a district under this section, the participating political subdivisions
must enter an agreement that specifies how any liabilities, other than debt issued under
subdivision 6, and assets of the district will be distributed if the district is dissolved. The
agreement may also include other terms, including a method for apportioning the levy of
the district among participating political subdivisions under subdivision 4, paragraph (b),
as the political subdivisions determine appropriate. The agreement must be adopted no later
than upon passage of the resolution establishing the district under paragraph (a), but may
be later amended by agreement of each of the political subdivisions participating in the
district.
Subd. 3.
Board.
The special taxing district established under this section is governed
by a board made up initially of representatives of each participating political subdivision
in the proportions set out in the establishing resolution, subject to change as provided in the
district's charter, if any, or in the district's bylaws. Each participating political subdivision's
representative must be an elected member of the governing body of the political subdivision
and serves at the pleasure of that participant's governing body.
Subd. 4.
Property tax levy.
(a) The board may levy a tax on the taxable real and personal
property in the district. The tax levy may not exceed 0.096 percent of the estimated market
value of the district, or $1,100,000, whichever is less. The proceeds of the levy must be
used as provided in subdivision 5. The board shall certify the levy at the times provided
under section 275.07. The board shall provide the county with whatever information is
necessary to identify the property that is located within the district. If the boundaries include
a part of a parcel, the entire parcel is included in the district. The county auditors must
spread, collect, and distribute the proceeds of the tax at the same time and in the same
manner as provided by law for all other property taxes.
(b) As an alternative to paragraph (a), the board may apportion its levy among the political
subdivisions that are members of the district under a formula or method, such as population,
number of service calls, cost of providing service, the market value of improvements, or
other measure or measures, that was approved by the governing body of each of the political
subdivisions that is a member of the district. The amount of the levy allocated to each
political subdivision must be added to that political subdivision's levy and spread at the
same time and in the same manner as provided by law for other taxes. The proceeds of the
levy must be collected and remitted to the district and used as provided in subdivision 5.
Subd. 5.
Use of levy proceeds.
The proceeds of property taxes levied under this section
must be used to provide fire protection or emergency medical services to residents of the
district and property located in the district, as well as to pay debt issued under subdivision
6. Services may be provided by employees of the district or by contracting for services
provided by other governmental or private entities.
Subd. 6.
Debt.
(a) The district may incur debt under chapter 475 when the board
determines doing so is necessary to accomplish its duties.
(b) In addition, the board of the district may issue certificates of indebtedness or capital
notes under section 412.301 to purchase capital equipment. In applying section 412.301,
paragraph (e), to the district the following rules apply:
(1) the taxable property of the entire district must be used to calculate the percent of
estimated market value; and
(2) "the number of voters at the last municipal election" means the sum of the number
of voters at the last municipal election for each of the cities that is a member of the district
plus the number of registered voters in each town that is a participating member of the
district.
Subd. 7.
Powers.
(a) In addition to authority expressly granted in this section, a special
taxing district may exercise any power that may be exercised by any of its participating
political subdivisions and that is necessary or reasonable to support the services set out in
subdivision 5. The district may only levy the taxes authorized in subdivision 4. These powers
include, without limitation, the authority to participate in state programs and to enforce or
carry out state laws related to fire protection or emergency medical services, including
programs providing state aid, reimbursement or funding of employee benefits, authorizing
local enforcement of state standards, and similar authority. These include but are not limited
to fire protection related programs and political subdivision powers or responsibilities under
chapters 299A and 424A; sections 6.495, 69.011, and 353.64; and any administrative rules
related to the fire code.
(b) To the extent that the district's authority under this subdivision overlaps with or may
conflict with the authority of the participating political subdivision, the agreement under
subdivision 2, paragraph (b), must provide for allocation of those powers or responsibilities
between the participating political subdivisions and the district and may provide for resolution
of conflicts in the exercise of those powers.
Subd. 8.
Additions and withdrawals.
(a) Additional eligible political subdivisions may
be added to a special taxing district under this section as provided by the board of the district
and agreed to in a resolution of the governing body of the political subdivision proposed to
be added.
(b) A political subdivision may withdraw from a special taxing district under this section
by resolution of its governing body. The political subdivision must notify the board of the
special taxing district of the withdrawal by providing a copy of the resolution at least two
years in advance of the proposed withdrawal. The taxable property of the withdrawing
member is subject to the property tax levy under subdivision 4 for the two taxes payable
years following the notice of the withdrawal, unless the board and the withdrawing member
agree otherwise by a resolution adopted by each of their governing bodies. If a political
subdivision withdraws from a district for which debt was issued under subdivision 6 when
the political subdivision was a participating member of the district and which is outstanding
when the political subdivision withdraws from the district, the taxable property of the
withdrawing political subdivision remains subject to the special taxing district debt levy
until that outstanding debt has been paid or defeased. If the district's property levy to repay
the debt was apportioned among the political subdivisions under an alternative formula or
method under subdivision 4, paragraph (b), the withdrawing political subdivision is subject
to the same percentage of the debt levy as applied in the taxes payable year immediately
before its withdrawal from the district.
(c) Notwithstanding subdivision 2, a special taxing district comprised of two political
subdivisions continues to exist even if one of the political subdivisions withdraws.
Subd. 9.
Dissolution.
The special taxing district may be dissolved by resolution approved
by majority vote of the board. If the special taxing district is dissolved, the assets and
liabilities may be assigned to a successor entity, if any, or otherwise disposed of for public
purposes as provided in the agreement adopted under subdivision 2, paragraph (b), or
otherwise agreed to by the participating political subdivisions. A district may not be dissolved
until all debt issued under subdivision 6 has been paid or defeased.
EFFECTIVE DATE.
This section is effective the day following final enactment.
Sec. 15.
Minnesota Statutes 2016, section 473H.08, subdivision 1, is amended to read:
Subdivision 1.
Till expiration started.
Agricultural preserves shall continue until either
the landowner or, the authority, or a state agency or governmental unit initiates expiration
as provided in this section.
EFFECTIVE DATE.
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.
Sec. 16.
Minnesota Statutes 2016, section 473H.08, is amended by adding a subdivision
to read:
Subd. 3a.
Expiration for park and trail purposes.
(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.
(b) The acquiring state agency or governmental unit shall give notice of the expiration
under paragraph (a) to the authority. The notice must specify the portion of the property
being removed from the agricultural preserve and the date on which that portion expires.
EFFECTIVE DATE.
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.
Sec. 17.
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 2 or 3a,
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.
EFFECTIVE DATE.
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.
Sec. 18.
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 2018 2023, payable in 2019 2024, and thereafter.
EFFECTIVE DATE.
This section is effective beginning with taxes payable in 2019.
Sec. 19.
Laws 2009, chapter 88, article 2, section 46, subdivision 1, as amended by Laws
2013, chapter 143, article 4, section 36, is amended to read:
Subdivision 1.
Agreement.
The city of Cloquet and Perch Lake Township, by resolution
of each of their governing bodies, may establish the Cloquet Area Fire and Ambulance
Special Taxing District for the purpose of providing fire or ambulance services, or both,
throughout the district. In this section, "municipality" means home rule charter and statutory
cities, towns, and Indian tribes. The district may exercise all the powers relating to fire and
ambulance services of the municipalities that receive fire or ambulance services, or both,
from the district. Upon application, any other municipality may join the district with the
agreement of the municipalities that comprise the district at the time of its application to
join.
EFFECTIVE DATE.
This section is effective upon compliance by the Cloquet Area
Fire and Ambulance Special Taxing District Board with Minnesota Statutes, section 645.021,
subdivision 3.
Sec. 20.
Laws 2009, chapter 88, article 2, section 46, subdivision 2, is amended to read:
Subd. 2.
Board.
The Cloquet Area Fire and Ambulance Special Taxing District Board
is governed by a board made up initially of one or more elected officials of the governing
body of each participating municipality in the proportions set out in the establishing
resolution, subject to change as provided in the district's charter, if any, or in the district's
bylaws. Each municipality's representatives serve at the pleasure of that municipality's
governing body.
EFFECTIVE DATE.
This section is effective upon compliance by the Cloquet Area
Fire and Ambulance Special Taxing District Board with Minnesota Statutes, section 645.021,
subdivision 3.
Sec. 21.
Laws 2009, chapter 88, article 2, section 46, subdivision 3, as amended by Laws
2013, chapter 143, article 4, section 37, is amended to read:
Subd. 3.
Tax.
The district board may impose a property tax on taxable property as
provided in this subdivision to pay the costs of providing fire or ambulance services, or
both, throughout the district as well as to pay debt issued under subdivision 4. The board
shall annually determine the total amount of the levy that is attributable to the cost of
providing fire services and the cost of providing ambulance services within the primary
service area. For those municipalities that only receive ambulance services, the costs for
the provision of ambulance services shall be levied against taxable property within those
municipalities at a rate necessary not to exceed 0.019 percent of the estimated market value.
For those municipalities that receive both fire and ambulance services, the tax shall be
imposed at a rate that does not exceed 0.2835 percent of estimated market value.
When a member municipality opts to receive fire service from the district or an additional
municipality becomes a member of the district, the cost of providing fire services to that
community shall be determined by the board and added to the maximum levy amount.
Each county auditor of a county that contains a municipality subject to the tax under
this section must collect the tax and pay it to the Fire and Ambulance Special Taxing District.
The district may also impose other fees or charges as allowed by law for the provision of
fire and ambulance services.
EFFECTIVE DATE.
This section is effective upon compliance by the Cloquet Area
Fire and Ambulance Special Taxing District Board with Minnesota Statutes, section 645.021,
subdivision 3.
Sec. 22.
Laws 2009, chapter 88, article 2, section 46, subdivision 4, is amended to read:
Subd. 4.
Public indebtedness.
The district may incur debt in the manner provided for
a municipality by Minnesota Statutes, chapter 475, when necessary to accomplish its duties.,
as defined in Minnesota Statutes, sections 475.51, subdivision 2, and 475.521, subdivision
1, paragraph (c), under Minnesota Statutes, chapter 475, and may issue certificates of
indebtedness or capital notes in the manner provided for a city under Minnesota Statutes,
section 412.301, when necessary to accomplish its duties. The debt service for debt, the
proceeds of which financed capital costs for ambulance service, shall be levied against
taxable property within those municipalities in the primary service area. The debt service
for debt, the proceeds of which financed capital costs for fire service, shall be levied against
taxable property within those municipalities receiving fire services.
EFFECTIVE DATE.
This section is effective upon compliance by the Cloquet Area
Fire and Ambulance Special Taxing District Board with Minnesota Statutes, section 645.021,
subdivision 3.
Sec. 23.
Laws 2009, chapter 88, article 2, section 46, subdivision 5, is amended to read:
Subd. 5.
Withdrawal.
Notice of intent to withdraw from participation in the district
may be given only in the month of January, with a minimum of twelve months notice of
intent to withdraw. Withdrawal becomes effective for taxes levied pursuant to subdivision
3 in the year when the notice is given. A property tax levied by the district on taxable
property located in a withdrawing municipality to make debt service payments for obligations
issued by the district pursuant to subdivision 4 shall remain in effect until the obligations
outstanding on the date of withdrawal are satisfied, including any property tax levied in
connection with a refunding of such obligations. The district and its members may develop
and agree upon other continuing obligations after withdrawal of a municipality.
EFFECTIVE DATE.
This section is effective upon compliance by the Cloquet Area
Fire and Ambulance Special Taxing District Board with Minnesota Statutes, section 645.021,
subdivision 3.
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 and
certifications made 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.
EFFECTIVE DATE.
This section is effective the day following final enactment.
Sec. 25. STUDY OF VALUATION METHOD OF PIPELINE AND PUBLIC
UTILITY OPERATING PROPERTY.
(a) The commissioner of revenue shall study and prepare a report on the current methods
used to value the operating property of pipelines and public utilities, as defined in Minnesota
Statutes, section 216B.02, subdivision 4, in the state of Minnesota.
(b) The report must:
(1) describe, in detail, prior and current methods used to value pipeline and public utility
operating property in Minnesota;
(2) evaluate whether the current methods used produce an accurate estimate of market
value;
(3) compile and explain, in detail, the number of state-assessed pipeline and public utility
valuations that have been appealed in the last 20 years, and the extent to which the market
value was increased or reduced, by agreement, settlement, or judgment, and list and provide
detail on the taxing jurisdictions that have been issued a refund order in the last 20 years as
a result of agreement, settlement, or judgment, including the year and amount paid;
(4) report the costs incurred by all taxing jurisdictions relating to the appeals and litigation
to settle any disputes in the last 20 years;
(5) evaluate the extent to which host political subdivisions and communities are
adequately compensated under the existing Minnesota property tax system for the external
costs imposed by pipeline and public utility systems;
(6) describe, analyze, and compare the methods used to value pipeline and public utility
operating property in other states, not limited to border states; and
(7) make recommendations and prepare legislation on improvements or alternative
valuation methods for pipeline and public utility operating property.
(c) The commissioner shall report the findings of the study to the committees of the
house of representatives and senate having jurisdiction over taxes by February 15, 2019,
and file the report as required by Minnesota Statutes, section 3.195.
EFFECTIVE DATE.
This section is effective July 1, 2018.
ARTICLE 5
PUBLIC FINANCE
Section 1.
Minnesota Statutes 2016, section 103E.611, subdivision 2, is amended to read:
Subd. 2.
Interest.
(a) Interest is an additional drainage lien on all property until paid.
The interest rate on the drainage lien principal from the date the drainage lien statement is
recorded must be set by the board but may not exceed the rate determined by the state court
administrator for judgments under section 549.09, or six percent, whichever is greater.
(b) Before the tax lists for the year are given to the county treasurer, the auditor shall
compute the interest on the unpaid balance of the drainage lien at the rate set by the board.
The amount of interest must be computed on the entire unpaid principal from the date the
drainage lien was recorded to August 15 of the next calendar year, and afterwards from
August 15 to August 15 of each year.
(c) Interest is due and payable after November 1 of each year the drainage lien principal
or interest is due and unpaid.
Sec. 2.
Minnesota Statutes 2016, section 471.831, subdivision 1, is amended to read:
Subdivision 1.
Any relief under bankruptcy code.
A municipality, as defined in
subdivision 2, may file a petition and seek any relief available to it under United States
Code, title 11, as amended through December 31, 1996.
Sec. 3.
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 a facility owned by a nonprofit organization that is used for district heating or
cooling, whether publicly or privately owned, that is eligible to be financed with the proceeds
of public facilities bonds as defined under section 474A.02, subdivision 23a.
Sec. 4.
Minnesota Statutes 2016, section 475.521, subdivision 1, is amended to read:
Subdivision 1.
Definitions.
For purposes of this section, the following terms have the
meanings given.
(a) "Bonds" mean an obligation defined under section 475.51.
(b) "Capital improvement" means acquisition or betterment of public lands, buildings
or other improvements for the purpose of a city hall, town hall, library, public safety facility,
and public works facility. An improvement must have an expected useful life of five years
or more to qualify. Capital improvement does not include light rail transit or any activity
related to it, or a park, road, bridge, administrative building other than a city or town hall,
or land for any of those facilities. For purposes of this section, "capital improvement"
includes expenditures for purposes described in this paragraph that have been incurred by
a municipality before approval of a capital improvement plan, if such expenditures are
included in a capital improvement plan approved on or before the date of the public hearing
under subdivision 2 regarding issuance of bonds for such expenditures.
(c) "Municipality" means a home rule charter or statutory city or a town described in
section 368.01, subdivision 1 or 1a.
ARTICLE 6
MISCELLANEOUS
Section 1.
Minnesota Statutes 2016, section 62V.05, subdivision 2, is amended to read:
Subd. 2.
Operations funding.
(a) Prior to January 1, 2015, MNsure shall retain or collect
up to 1.5 percent of total premiums for individual and small group market health plans and
dental plans sold through MNsure to fund the cash reserves of MNsure, but the amount
collected shall not exceed a dollar amount equal to 25 percent of the funds collected under
section 62E.11, subdivision 6, for calendar year 2012.
(b) Beginning January 1, 2015, MNsure shall retain or collect up to 3.5 percent of total
premiums for individual and small group market health plans and dental plans sold through
MNsure to fund the operations of MNsure, but the amount collected shall not exceed a
dollar amount equal to 50 percent of the funds collected under section 62E.11, subdivision
6, for calendar year 2012.
(c) (a) Beginning January 1, 2016, through December 31, 2018, MNsure shall retain or
collect up to 3.5 percent of total premiums for individual and small group market health
plans and dental plans sold through MNsure to fund the operations of MNsure, but the
amount collected may never exceed a dollar amount greater than 100 percent of the funds
collected under section 62E.11, subdivision 6, for calendar year 2012.
(d) For fiscal years 2014 and 2015, the commissioner of management and budget is
authorized to provide cash flow assistance of up to $20,000,000 from the special revenue
fund or the statutory general fund under section 16A.671, subdivision 3, paragraph (a), to
MNsure. Any funds provided under this paragraph shall be repaid, with interest, by June
30, 2015.
(b) Beginning January 1, 2019, MNsure shall retain or collect up to two percent of total
premiums for individual and small group health plans and dental plans sold through MNsure
to fund the operations of MNsure, but the amount collected may never exceed a dollar
amount greater than 25 percent of the funds collected under section 62E.11, subdivision 6,
for calendar year 2012.
(e) (c) Funding for the operations of MNsure shall cover any compensation provided to
navigators participating in the navigator program.
(d) Interagency agreements between MNsure and the Department of Human Services,
and the Public Assistance Cost Allocation Plan for the Department of Human Services shall
not be modified to reflect any changes to the percentage of premiums that MNsure is allowed
to retain or collect under this section, and no additional funding shall be transferred from
the Department of Human Services to MNsure as a result of any changes to the percentage
of premiums that MNsure is allowed to retain or collect under this section.
EFFECTIVE DATE.
This section is effective the day following final enactment.
Sec. 2.
Minnesota Statutes 2016, section 62V.05, subdivision 5, is amended to read:
Subd. 5.
Health carrier and health plan requirements; participation.
(a) Beginning
January 1, 2015, the board may establish certification requirements for health carriers and
health plans to be offered through MNsure that satisfy federal requirements under section
1311(c)(1) of the Affordable Care Act, Public Law 111-148 United States Code, title 42,
section 18031(c)(1).
(b) Paragraph (a) does not apply if by June 1, 2013, the legislature enacts regulatory
requirements that:
(1) apply uniformly to all health carriers and health plans in the individual market;
(2) apply uniformly to all health carriers and health plans in the small group market; and
(3) satisfy minimum federal certification requirements under section 1311(c)(1) of the
Affordable Care Act, Public Law 111-148 United States Code, title 42, section 18031(c)(1).
(c) In accordance with section 1311(e) of the Affordable Care Act, Public Law 111-148
United States Code, title 42, section 18031(e), the board shall establish policies and
procedures for certification and selection of health plans to be offered as qualified health
plans through MNsure. The board shall certify and select a health plan as a qualified health
plan to be offered through MNsure, if:
(1) the health plan meets the minimum certification requirements established in paragraph
(a) or the market regulatory requirements in paragraph (b);
(2) the board determines that making the health plan available through MNsure is in the
interest of qualified individuals and qualified employers;
(3) the health carrier applying to offer the health plan through MNsure also applies to
offer health plans at each actuarial value level and service area that the health carrier currently
offers in the individual and small group markets; and
(4) the health carrier does not apply to offer health plans in the individual and small
group markets through MNsure under a separate license of a parent organization or holding
company under section 60D.15, that is different from what the health carrier offers in the
individual and small group markets outside MNsure.
(d) In determining the interests of qualified individuals and employers under paragraph
(c), clause (2), the board may not exclude a health plan for any reason specified under section
1311(e)(1)(B) of the Affordable Care Act, Public Law 111-148 United States Code, title
42, section 18031(e)(1)(B). The board may consider:
(1) affordability;
(2) quality and value of health plans;
(3) promotion of prevention and wellness;
(4) promotion of initiatives to reduce health disparities;
(5) market stability and adverse selection;
(6) meaningful choices and access;
(7) alignment and coordination with state agency and private sector purchasing strategies
and payment reform efforts; and
(8) other criteria that the board determines appropriate.
(e) A health plan that meets the minimum certification requirements under paragraph
(c) and United States Code, title 42, section 18031(c)(1), and any regulations and guidance
issued under that section, is deemed to be in the interest of qualified individuals and qualified
employers. The board shall not establish certification requirements for health carriers and
health plans for participation in MNsure that are in addition to the certification requirements
under paragraph (c) and United States Code, title 42, section 18031(c)(1), and any regulations
and guidance issued under that section. The board shall not determine the cost of, cost-sharing
elements of, or benefits provided in health plans sold through MNsure.
(e) (f) For qualified health plans offered through MNsure on or after January 1, 2015,
the board shall establish policies and procedures under paragraphs (c) and (d) for selection
of health plans to be offered as qualified health plans through MNsure by February 1 of
each year, beginning February 1, 2014. The board shall consistently and uniformly apply
all policies and procedures and any requirements, standards, or criteria to all health carriers
and health plans. For any policies, procedures, requirements, standards, or criteria that are
defined as rules under section 14.02, subdivision 4, the board may use the process described
in subdivision 9.
(f) For 2014, the board shall not have the power to select health carriers and health plans
for participation in MNsure. The board shall permit all health plans that meet the certification
requirements under section 1311(c)(1) of the Affordable Care Act, Public Law 111-148, to
be offered through MNsure.
(g) Under this subdivision, the board shall have the power to verify that health carriers
and health plans are properly certified to be eligible for participation in MNsure.
(h) The board has the authority to decertify health carriers and health plans that fail to
maintain compliance with section 1311(c)(1) of the Affordable Care Act, Public Law 111-148
United States Code, title 42, section 18031(c)(1).
(i) For qualified health plans offered through MNsure beginning January 1, 2015, health
carriers must use the most current addendum for Indian health care providers approved by
the Centers for Medicare and Medicaid Services and the tribes as part of their contracts with
Indian health care providers. MNsure shall comply with all future changes in federal law
with regard to health coverage for the tribes.
EFFECTIVE DATE.
This section is effective the day following final enactment.
Sec. 3.
Minnesota Statutes 2016, section 62V.05, subdivision 10, is amended to read:
Subd. 10.
Limitations; risk-bearing.
(a) The board shall not bear insurance risk or enter
into any agreement with health care providers to pay claims.
(b) Nothing in this subdivision shall prevent MNsure from providing insurance for its
employees.
(c) The commissioner of human services shall not bear insurance risk or enter into any
agreement with providers to pay claims for any health coverage administered by the
commissioner that is made available for purchase through the MNsure Web site as an
alternative to purchasing a qualifying health plan through MNsure or an individual health
plan offered outside of MNsure.
(d) Nothing in this subdivision shall prohibit:
(1) the commissioner of human services from administering the medical assistance
program under chapter 256B and the MinnesotaCare program under chapter 256L, as long
as health coverage under these programs is not purchased by the individual through the
MNsure Web site; and
(2) employees of the Department of Human Services from obtaining insurance from the
state employee group insurance program.
EFFECTIVE DATE.
This section is effective the day following final enactment.
Sec. 4.
Minnesota Statutes 2016, section 62V.08, is amended to read:
62V.08 REPORTS.
(a) MNsure shall submit a report to the legislature by January 15, 2015, and each January
15 thereafter, on: (1) the performance of MNsure operations; (2) meeting MNsure
responsibilities; (3) an accounting of MNsure budget activities; (4) practices and procedures
that have been implemented to ensure compliance with data practices laws, and a description
of any violations of data practices laws or procedures; and (5) the effectiveness of the
outreach and implementation activities of MNsure in reducing the rate of uninsurance.
(b) MNsure must publish its administrative and operational costs on a Web site to educate
consumers on those costs. The information published must include: (1) the amount of
premiums and federal premium subsidies collected; (2) the amount and source of revenue
received under section 62V.05, subdivision 1, paragraph (b), clause (3); (3) the amount and
source of any other fees collected for purposes of supporting operations; and (4) any misuse
of funds as identified in accordance with section 3.975. The Web site must be updated at
least annually.
(c) As part of the report required to be submitted to the legislature in paragraph (a) and
the information required to be published in paragraph (b), MNsure shall include the total
amount spent on business continuity planning, data privacy protection, and cyber security
provisions.
EFFECTIVE DATE.
This section is effective the day following final enactment.
Sec. 5.
Minnesota Statutes 2017 Supplement, section 298.17, is amended to read:
298.17 OCCUPATION TAXES TO BE APPORTIONED; REFUND.
(a) All occupation taxes paid by persons, copartnerships, companies, joint stock
companies, corporations, and associations, however or for whatever purpose organized,
engaged in the business of mining or producing iron ore or other ores, when collected shall
be apportioned and distributed in accordance with the Constitution of the state of Minnesota,
article X, section 3, in the manner following: 90 percent shall be deposited in the state
treasury and credited to the general fund of which four-ninths shall be used for the support
of elementary and secondary schools; and ten percent of the proceeds of the tax imposed
by this section shall be deposited in the state treasury and credited to the general fund for
the general support of the university.
(b) Of the money apportioned to the general fund by this section, the following allocations
must be made:
(1) there is annually appropriated and credited to the mining environmental and regulatory
account in the special revenue fund an amount equal to that which would have been generated
by a 2-1/2 cent tax imposed by section 298.24 on each taxable ton produced in the preceding
calendar year. Money in the mining environmental and regulatory account is appropriated
annually to the commissioner of natural resources to fund agency staff to work on
environmental issues and provide regulatory services for ferrous and nonferrous mining
operations in this state. Payment to the mining environmental and regulatory account shall
be made by July 1 annually. The commissioner of natural resources shall execute an
interagency agreement with the Pollution Control Agency to assist with the provision of
environmental regulatory services such as monitoring and permitting required for ferrous
and nonferrous mining operations;
(2) there is annually appropriated and credited to the Iron Range resources and
rehabilitation account in the special revenue fund an amount equal to that which would have
been generated by a 1.5 cent tax imposed by section 298.24 on each taxable ton produced
in the preceding calendar year, to be expended for the purposes of section 298.22. The
money appropriated shall be used (i) to provide environmental development grants to local
governments located within any county in region 3 as defined in governor's executive order
number 60, issued on June 12, 1970, that does not contain a municipality qualifying pursuant
to section 273.134, paragraph (b), or (ii) to provide economic development loans or grants
to businesses located within any such county, provided that the county board or an advisory
group appointed by the county board to provide recommendations on economic development
shall make recommendations to the commissioner of Iron Range resources and rehabilitation
regarding the loans. Of the money allocated to Koochiching County, one-third must be paid
to the Koochiching County Economic Development Commission. Payment to the Iron
Range resources and rehabilitation account shall be made by May 15 annually; and
(3) there is annually appropriated and credited to the Iron Range resources and
rehabilitation account in the special revenue fund for transfer to the Iron Range school
consolidation and cooperatively operated school account under section 298.28, subdivision
7a, an amount equal to that which would have been generated by a six cent tax imposed by
section 298.24 on each taxable ton produced in the preceding calendar year. Payment to the
Iron Range resources and rehabilitation account shall be made by May 15 annually.
(c) The money appropriated pursuant to paragraph (b), clause (2), shall be used (i) to
provide environmental development grants to local governments located within any county
in region 3 as defined in governor's executive order number 60, issued on June 12, 1970,
which does not contain a municipality qualifying pursuant to section 273.134, paragraph
(b), or (ii) to provide economic development loans or grants to businesses located within
any such county, provided that the county board or an advisory group appointed by the
county board to provide recommendations on economic development shall make
recommendations to the commissioner of Iron Range resources and rehabilitation regarding
the loans. Payment to the Iron Range resources and rehabilitation account shall be made by
May 15 annually The total amount of refunds issued under this paragraph in any year shall
not exceed $5,000,000.
(d) Of the money allocated to Koochiching County, one-third must be paid to the
Koochiching County Economic Development Commission.
EFFECTIVE DATE.
This section is effective beginning with distributions made in
2019 and thereafter.
Sec. 6.
Minnesota Statutes 2017 Supplement, section 298.227, is amended to read:
298.227 TACONITE ECONOMIC DEVELOPMENT FUND.
An amount equal to that distributed pursuant to each taconite producer's taxable
production and qualifying sales under section 298.28, subdivision 9a, shall be held by the
commissioner of Iron Range resources and rehabilitation in a separate taconite economic
development fund for each taconite and direct reduced ore producer. Money from the fund
for each producer shall be released by the commissioner after review by a joint committee
consisting of an equal number of representatives of the salaried employees and the
nonsalaried production and maintenance employees of that producer. The District 11 director
of the United States Steelworkers of America, on advice of each local employee president,
shall select the employee members. In nonorganized operations, the employee committee
shall be elected by the nonsalaried production and maintenance employees. The review
must be completed no later than six months after the producer presents a proposal for
expenditure of the funds to the committee. The funds held pursuant to this section may be
released only for workforce development and associated public facility improvement,
concurrent reclamation, or for acquisition of plant and stationary mining equipment and,
facilities for the producer, or for research and development in Minnesota on new mining,
or taconite, iron, or steel production technology, but only if the producer provides a matching
expenditure equal to the amount of the distribution to be used for the same purpose beginning
with distributions in 2014. Effective for proposals for expenditures of money from the fund
beginning May 26, 2007, the commissioner may not release the funds before the next
scheduled meeting of the board. If a proposed expenditure is not approved by the
commissioner, after consultation with the advisory board, the funds must be deposited in
the taconite environmental protection fund under sections 298.222 to 298.225. If a taconite
production facility is sold after operations at the facility had ceased, any money remaining
in the fund for the former producer may be released to the purchaser of the facility on the
terms otherwise applicable to the former producer under this section. If a producer fails to
provide matching funds for a proposed expenditure within six months after the commissioner
approves release of the funds, the funds are available for release to another producer in
proportion to the distribution provided and under the conditions of this section may be
released by the commissioner for deposit in the taconite area environmental protection fund
created in section 298.223. Any portion of the fund which is not released by the commissioner
within one year of its deposit in the fund shall be divided between distributed to the taconite
environmental protection fund created in section 298.223 and the Douglas J. Johnson
economic protection trust fund created in section 298.292 for placement in their respective
special accounts. Two-thirds of the unreleased funds shall be distributed to the taconite
environmental protection fund and one-third to the Douglas J. Johnson economic protection
trust fund.
EFFECTIVE DATE.
This section is effective July 1, 2018.
Sec. 7.
Minnesota Statutes 2017 Supplement, section 298.28, subdivision 7a, is amended
to read:
Subd. 7a.
Iron Range school consolidation and cooperatively operated school account.
(a) The following amounts must be allocated to the commissioner of Iron Range resources
and rehabilitation to be deposited in the Iron Range school consolidation and cooperatively
operated school account that is hereby created:
(1)(i) for distributions in 2015 through 2023, ten cents per taxable ton of the tax imposed
under section 298.24; and
(ii) for distributions beginning in 2024, five cents per taxable ton of the tax imposed
under section 298.24;
(2) the amount as determined under section 298.17, paragraph (b), clause (3);
(3)(i) for distributions in 2015, an amount equal to two-thirds of the increased tax
proceeds attributable to the increase in the implicit price deflator as provided in section
298.24, subdivision 1, with the remaining one-third to be distributed to the Douglas J.
Johnson economic protection trust fund;
(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the increased
tax proceeds attributable to the increase in the implicit price deflator as provided in section
298.24, subdivision 1, for distribution years 2015 and 2016, with the remaining one-third
to be distributed to the Douglas J. Johnson economic protection trust fund; and
(iii) for distributions in 2017 and thereafter, an amount equal to two-thirds of the sum
of the increased tax proceeds attributable to the increase in the implicit price deflator as
provided in section 298.24, subdivision 1, for distribution years 2015, 2016, and 2017, with
the remaining one-third to be distributed to the Douglas J. Johnson economic protection
trust fund; and
(4) any other amount as provided by law.
(b) Expenditures from this account may be approved as ongoing annual expenditures
and shall be made only to provide disbursements to assist school districts with the payment
of bonds that were issued for qualified school projects, or for any other school disbursement
as approved by the commissioner of Iron Range resources and rehabilitation after consultation
with the Iron Range Resources and Rehabilitation Board. For purposes of this section,
"qualified school projects" means school projects within the taconite assistance area as
defined in section 273.1341, that were (1) approved, by referendum, after April 3, 2006;
and (2) approved by the commissioner of education pursuant to section 123B.71.
(c) Beginning in fiscal year 2019, the disbursement to school districts for payments for
bonds issued under section 123A.482, subdivision 9, must be increased each year to offset
any reduction in debt service equalization aid that the school district qualifies for in that
year, under section 123B.53, subdivision 6, compared with the amount the school district
qualified for in fiscal year 2018.
(d) No expenditure under this section shall be made unless approved by the commissioner
of Iron Range resources and rehabilitation after consultation with the Iron Range Resources
and Rehabilitation Board.
EFFECTIVE DATE.
This section is effective for distributions beginning in 2018 and
thereafter.
Sec. 8.
Minnesota Statutes 2016, section 298.28, subdivision 9a, is amended to read:
Subd. 9a.
Taconite economic development fund.
(a) 25.1 cents per ton for distributions
in 2002 and thereafter must be paid to the taconite economic development fund. No
distribution shall be made under this paragraph in 2004 or any subsequent year in which
total industry production falls below 30 million tons. Distribution shall only be made to a
Minnesota taconite pellet producer's fund under section 298.227 if the producer timely pays
its tax under section 298.24 by the dates provided under section 298.27, or pursuant to the
due dates provided by an administrative agreement with the commissioner.
(b) An amount equal to 50 percent of the tax under section 298.24 for concentrate sold
in the form of pellet chips and fines not exceeding 5/16 inch in size and not including crushed
pellets shall be paid to the taconite economic development fund. The amount paid shall not
exceed $700,000 annually for all companies Minnesota taconite pellet producers. If the
initial amount to be paid to the fund exceeds this amount, each company's Minnesota taconite
pellet producer's payment shall be prorated so the total does not exceed $700,000.
EFFECTIVE DATE.
This section is effective retroactively from December 31, 2016.
Sec. 9.
Laws 2015, chapter 71, article 12, section 8, is amended to read:
Sec. 8. EXPANDED ACCESS TO QUALIFIED HEALTH PLANS AND
SUBSIDIES.
The commissioner of commerce, in consultation with the Board of Directors of MNsure
and the MNsure Legislative Oversight Committee, shall develop a proposal to allow
individuals to purchase qualified health plans outside of MNsure directly from health plan
companies and to allow eligible individuals to receive advanced premium tax credits and
cost-sharing reductions when purchasing these health plans. The commissioner shall seek
all federal waivers and approvals necessary to implement this proposal and shall submit the
necessary federal waivers and approvals to the federal government no later than October 1,
2018. The commissioner shall submit a draft proposal to the MNsure board and the MNsure
Legislative Oversight Committee at least 30 days before submitting a final proposal to the
federal government no later than September 1, 2018, and shall notify the board and legislative
oversight committee of any federal decision or action related to the proposal.
EFFECTIVE DATE.
This section is effective the day following final enactment.
Sec. 10.
Laws 2017, First Special Session chapter 1, article 4, section 31, is amended to
read:
Sec. 31. APPROPRIATION; FIRE REMEDIATION GRANTS.
$1,392,258 is appropriated in fiscal year 2018 from the general fund to the commissioner
of public safety for grants to remediate the effects of fires in the city of Melrose on September
8, 2016. The commissioner must allocate the grants as follows:
(1) $1,296,458 to the city of Melrose; and
(2) $95,800 to Stearns County.
A grant recipient must use the money appropriated under this section for remediation
costs, including disaster recovery, infrastructure, reimbursement for emergency personnel
costs, reimbursement for equipment costs, and reimbursements for property tax abatements,
incurred by public or private entities as a result of the fires. This is a onetime appropriation
and is available until June 30, 2018 2021.
EFFECTIVE DATE.
This section is effective the day following final enactment.
Sec. 11. RATES FOR INDIVIDUAL MARKET HEALTH AND DENTAL PLANS
FOR 2019.
(a) Health carriers must take into account the reduction in the premium withhold
percentage under Minnesota Statutes, section 62V.05, subdivision 2, applicable beginning
in calendar year 2019 for individual market health plans and dental plans sold through
MNsure when setting rates for individual market health plans and dental plans for calendar
year 2019.
(b) For purposes of this section, "dental plan," "health carrier," "health plan," and
"individual market" have the meanings given in Minnesota Statutes, section 62V.02.
EFFECTIVE DATE.
This section is effective the day following final enactment.
Sec. 12. TRANSFER 2018 DISTRIBUTION ONLY.
For the 2018 distribution, the fund established under Minnesota Statutes, section 298.28,
subdivision 7, shall receive ten cents per ton of any excess of the balance remaining after
distribution of amounts required under Minnesota Statutes, section 298.28, subdivision 6.
EFFECTIVE DATE.
This section is effective for the 2018 distribution and the transfer
must be made within ten days of the August 2018 payment.
ARTICLE 7
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 notify, by June 1, certify to
the commissioner of revenue the amounts to be paid.
(b) Following notification certification from the commissioner of transportation, 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 of
transportation 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.
EFFECTIVE DATE.
This section is effective for aids payable in 2018 and thereafter.
Sec. 2.
Minnesota Statutes 2016, section 270.41, subdivision 3, is amended to read:
Subd. 3.
Assessor sanctions; refusal to license.
(a) Following a recommendation from
the commissioner of revenue, the 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. The
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. An
action by the board to impose a sanction fine, to suspend or revoke a license, or to refuse
to grant or renew a license is subject to review in a contested case hearing under chapter
14. 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.
EFFECTIVE DATE.
This section is effective for sanctions or refusals to grant or renew
a license recommended by the commissioner of revenue after June 30, 2018.
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 $1,000 $3,000, 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.
EFFECTIVE DATE.
This section is effective for certificates of value filed after
December 31, 2018.
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 $500 $3,000 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 $500 $3,000, 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.
EFFECTIVE DATE.
This section is effective for deeds recorded after December 31,
2018.
ARTICLE 8
DEPARTMENT OF REVENUE; MISCELLANEOUS; POLICY CHANGES
Section 1.
Minnesota Statutes 2016, section 270B.08, subdivision 2, is amended to read:
Subd. 2.
Revocation or cancellation.
When a taxpayer's sales tax permit has been
revoked or canceled under section 270C.722 or 297A.84, the commissioner may disclose
to any person data identifying the holder of the revoked or canceled permit, stating the basis
for the revocation or cancellation, the date of the revocation or cancellation, and stating
whether the if a revoked or canceled permit has been reinstated, the date upon which the
permit was reinstated.
EFFECTIVE DATE.
This section is effective the day following final enactment.
Sec. 2.
Minnesota Statutes 2016, section 297A.84, is amended to read:
297A.84 PERMITS ISSUED AND NOT ISSUED; CANCELLATION.
Subdivision 1.
Definitions.
(a) The following definitions apply for the purposes of this
section.
(b) "Applicant" means an individual, corporation, or partnership. Applicant also includes
any officer of a corporation or member of a partnership.
(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.
Subd. 2.
Permits issued.
Except as provided in subdivision 3, the commissioner shall
must 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.
Subd. 3.
Permits not issued.
(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.
(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.
Subd. 4.
Nonconforming permits; cancellation; reissue.
(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.
(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.
EFFECTIVE DATE.
This section is effective for permit applications filed after
December 31, 2018.
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; or
(4) the permit is subject to cancellation pursuant to under section 270C.722, subdivision
2, paragraph (a).; or
(5) the permit is subject to cancellation under section 297A.84.
EFFECTIVE DATE.
This section is effective for permit applications filed after
December 31, 2018.
ARTICLE 9
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 section sections 289A.38 to 289A.384.
(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.
EFFECTIVE DATE.
This section is effective for taxable 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.
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.35, paragraph (b), 289A.383, subdivision
3, and 290.0922 on partnerships are the joint and several liability of the partnership and the
general partners.
EFFECTIVE DATE.
This section is effective for taxable 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.
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 section sections 289A.38 to 289A.384.
EFFECTIVE DATE.
This section is effective for taxable 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.
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 subdivisions 7 to 9 sections 289A.381 to 289A.384 regarding additional extensions
apply.
EFFECTIVE DATE.
This section is effective for taxable 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.
Sec. 5.
[289A.381] DEFINITIONS; PARTNERSHIPS; FEDERAL ADJUSTMENTS.
Subdivision 1.
Definitions relating to federal adjustments.
Unless otherwise specified,
the definitions in this section apply for the purposes of sections 289A.381 to 289A.385.
Subd. 2.
Administrative adjustment request.
"Administrative adjustment request"
means an administrative adjustment request filed by a partnership under section 6227 of
the Internal Revenue Code.
Subd. 3.
Audited partnership.
"Audited partnership" means a partnership subject to a
federal adjustment resulting from a partnership-level audit.
Subd. 4.
Corporate partner.
"Corporate partner" means a partner that is subject to tax
under section 290.02.
Subd. 5.
Direct partner.
"Direct partner" means a partner that holds an immediate legal
ownership interest in a partnership or pass-through entity.
Subd. 6.
Exempt partner.
"Exempt partner" means a partner that is exempt from taxes
on its net income under section 290.05, subdivision 1.
Subd. 7.
Federal adjustment.
"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.
Subd. 8.
Federal adjustments report.
"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.
Subd. 9.
Federal partnership representative.
"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.
Subd. 10.
Final determination date.
(a) "Final determination date" means:
(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;
(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
(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.
Subd. 11.
Final federal adjustment.
"Final federal adjustment" means a federal
adjustment for which the final determination date for that federal adjustment has passed.
Subd. 12.
Indirect partner.
"Indirect partner" means either:
(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
(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.
Subd. 13.
Partner.
"Partner" means a person that holds an interest directly or indirectly
in a partnership or other pass-through entity.
Subd. 14.
Partnership.
The term "partnership" has the meaning provided under section
7701(a)(2) of the Internal Revenue Code.
Subd. 15.
Partnership-level audit.
"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.
Subd. 16.
Pass-through entity.
"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.
Subd. 17.
Reallocation adjustment.
"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.
Subd. 18.
Resident partner.
"Resident partner" means an individual partner or individual
indirect partner who is a resident of Minnesota under section 290.01, subdivision 7.
Subd. 19.
Reviewed year.
"Reviewed year" means the taxable year of a partnership that
is subject to a partnership-level audit from which federal adjustments arise.
Subd. 20.
Tiered partner.
"Tiered partner" means any partner that is a partnership or
pass-through entity.
Subd. 21.
Unrelated business taxable income.
"Unrelated business taxable income"
has the same meaning as defined in section 512 of the Internal Revenue Code.
EFFECTIVE DATE.
This section is effective for taxable 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.
Sec. 6.
[289A.382] REPORTING FEDERAL ADJUSTMENTS; GENERAL RULE.
(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.
(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:
(1) federal refund claims;
(2) a change reported on a timely filed amended federal income tax return; and
(3) a change reported on an amended return filed pursuant to section 6225(c) of the
Internal Revenue Code.
(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 under section 289A.383,
and not this section.
EFFECTIVE DATE.
This section is effective for taxable 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.
Sec. 7.
[289A.383] REPORTING AND PAYMENT REQUIREMENTS.
Subdivision 1.
State partnership representative.
(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.
(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.
Subd. 2.
Reporting and payment requirements for partnerships and tiered partners.
(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).
(b) No later than 90 days after the final determination date, the audited partnership must:
(1) file a completed federal adjustment report, including all partner-level information
required under section 289A.12, subdivision 3, with the commissioner;
(2) notify each of its direct partners of their distributive share of the adjustments;
(3) file an amended composite report for all direct partners who were included in a
composite return under section 289A.08, subdivision 7, in the reviewed year, and pay the
additional amount that would have been due had the federal adjustments been reported
properly as required; and
(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.
(c) No later than 180 days after the final determination date, each direct partner, other
than a tiered partner, who is subject to a tax administered under this chapter, other than the
sales tax, must:
(1) file a federal adjustment report reporting their distributive share of the adjustments
reported to them under paragraph (b), clause (2); and
(2) pay any additional amount of tax due as if the final federal adjustment had been
properly reported, plus any penalty and interest due under this chapter, and less any credit
for related amounts paid or withheld and remitted on behalf of the direct partner under
paragraph (b), clauses (3) and (4).
Subd. 3.
Election; partnership or tiered partners pay.
(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:
(1) no later than 90 days after the final determination date, file a completed federal
adjustment report, including the residency information for all individual partners, both direct
and indirect, 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
(2) no later than 180 days after the final determination date, pay an amount, determined
as follows, in lieu of taxes on partners:
(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;
(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;
(iii) allocate at the partner level using section 290.17, subdivision 1, all final federal
adjustments and positive reallocation adjustments attributable to resident partners, both
direct and indirect, for the reviewed year;
(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;
(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:
(A) resident partners;
(B) corporate partners and exempt partners; and
(C) the total distributive share amount allocated to all other partners;
(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;
(vii) for the total distributive share of net final federal adjustments plus positive
reallocation adjustments attributable to resident 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
(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.
(b) An audited partnership may not make an election under this subdivision to report:
(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
(2) any final federal adjustments resulting from an administrative adjustment request.
Subd. 4.
Tiered partners and indirect partners.
(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:
(1) within 90 days of the report comply with the filing, reporting, and payment
requirements of subdivision 2, paragraph (b); or
(2) make the election under subdivision 3 as though it were the audited partnership.
(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).
(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.
Subd. 5.
Effects of election by partnership or tiered partner and payment of amount
due.
(a) Unless the commissioner determines otherwise, the election under subdivision 3
is irrevocable.
(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 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.
(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.
Subd. 6.
Failure of partnership or tiered partner to report or pay.
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.
EFFECTIVE DATE.
This section is effective for taxable 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.
Sec. 8.
[289A.384] ASSESSMENT OF TAX, INTEREST, PENALTIES, AND
ADDITIONAL AMOUNTS.
Subdivision 1.
Assessment of additional tax, interest, and penalties.
The commissioner
may assess additional tax, interest, and penalties following a final federal adjustment:
(1) arising from an audit by the Internal Revenue Service, including a partnership-level
audit;
(2) reported by the taxpayer on an amended federal tax return; or
(3) as part of an administrative adjustment request on or before the dates provided in
this section.
Subd. 2.
Timely and untimely reported federal adjustments.
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:
(1) the expiration of the period of limitations in section 289A.38; or
(2) the expiration of the one-year period following the date of the filing with the
commissioner of the federal adjustments report.
Subd. 3.
Unreported reported federal adjustments.
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:
(1) the expiration of the period of limitations in section 289A.38; or
(2) the expiration of the six-year period following the final determination date.
EFFECTIVE DATE.
This section is effective for taxable 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.
Sec. 9.
[289A.385] CLAIMS FOR REFUND OR CREDITS OF STATE TAX
ARISING FROM FINAL FEDERAL ADJUSTMENTS MADE BY THE INTERNAL
REVENUE SERVICE.
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.
EFFECTIVE DATE.
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.
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.38 to 289A.384 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, as follows:
(1) for the periods provided in section 289A.38, subdivisions 8 and 9; 289A.384,
subdivisions 2 and 3.
(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.
EFFECTIVE DATE.
This section is effective for taxable 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.
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 section 289A.38, subdivision 7 sections 289A.382 and 289A.383, 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.
EFFECTIVE DATE.
This section is effective for taxable 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.
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
section sections 289A.35, paragraph (b), and 289A.383, subdivision 3, 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.
EFFECTIVE DATE.
This section is effective for taxable 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.
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 section 289A.38, subdivision
7 sections 289A.382 and 289A.383.
EFFECTIVE DATE.
This section is effective for taxable 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.
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 section 289A.38, subdivision 7 sections 289A.38 to 289A.384.
EFFECTIVE DATE.
This section is effective for taxable 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.
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 section 289A.38 sections
289A.38 to 289A.384, 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.
EFFECTIVE DATE.
This section is effective for taxable 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.
Sec. 16. REPEALER.
Minnesota Statutes 2016, section 289A.38, subdivisions 7, 8, and 9,
are repealed.
EFFECTIVE DATE.
This section is effective for taxable 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.
ARTICLE 10
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.
(a) 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.
(b) For the purposes of paragraph (a), a change or correction includes any case where a
taxpayer reaches a closing agreement or a compromise with the Internal Revenue Service
under section 7121 or 7122 of the Internal Revenue Code.
EFFECTIVE DATE.
This section is effective the day following final enactment.
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 allocable 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.
(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.
(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).
EFFECTIVE DATE.
This section is effective the day following final enactment.
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 amounts after the adjustment required in subdivision 2d.
(b) The income taxes imposed by this chapter upon unmarried individuals must be
computed by applying to taxable net income the following schedule of rates:
(1) On the first $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 by:
(i) the additions required under section sections 290.0131, subdivisions 2 and 6 to 11,
and 290.0137, paragraph (a); and reduced by
(ii) the Minnesota assignable portion of the subtraction for United States government
interest under section 290.0132, subdivision 2, and the subtractions under section sections
290.0132, subdivisions 9, 10, 14, 15, 17, and 18, and 290.0137, paragraph (c), after applying
the allocation and assignability provisions of section 290.081, clause (a), or 290.17; and
(2) the denominator is the individual's federal adjusted gross income as defined in section
62 of the Internal Revenue Code, increased by:
(i) the amounts specified in section additions required under sections 290.0131,
subdivisions 2 and 6 to 11, and 290.0137, paragraph (a); and reduced by
(ii) the amounts specified in section subtractions under sections 290.0132, subdivisions
2, 9, 10, 14, 15, 17, and 18, and 290.0137, paragraph (c).
EFFECTIVE DATE.
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.
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. 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. 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.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2017.
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 2(1)(b)(ii)(a)(2)(ii).
EFFECTIVE DATE.
This section is effective the day following final enactment.
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 by April 15 of the year
in a form and manner prescribed by the commissioner 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.
EFFECTIVE DATE.
This section is effective the day following final enactment.
ARTICLE 11
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 commerce; other vessels.
Repair, replacement, and
rebuilding parts and materials, and lubricants, for the following are exempt:
(1) ships or vessels used or to be used principally in interstate or foreign commerce are
exempt.; and
(2) vessels with a gross registered tonnage of at least 3,000 tons are exempt.
EFFECTIVE DATE.
This section is effective the day following final enactment.
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 business, as defined in section 116J.8738,
are exempt if:
(1) 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;
(2) the business subsidy agreement provides that the exemption under this subdivision
applies;
(2) (3) the property or services are primarily used or consumed at the facility in greater
Minnesota identified in the business subsidy agreement; and
(3) (4) the purchase was made and delivery received during the duration of the
certification of the business as a qualified business under section 116J.8738 business subsidy
agreement.
(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, as defined in section
116J.8738 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. 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 commissioner of revenue 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.
EFFECTIVE DATE.
This section is effective the day following final enactment.
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 if the commissioner of employment and economic
development certifies to the commissioner of revenue that 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 Department commissioner 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 owner commissioner must have received written certification from the
Department commissioner 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.
EFFECTIVE DATE.
This section is effective the day following final enactment.
Sec. 4.
Minnesota Statutes 2016, section 297A.77, is amended by adding a subdivision to
read:
Subd. 5.
Records must be kept.
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.
EFFECTIVE DATE.
This section is effective the day following final enactment.
ARTICLE 12
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. Tobacco
products includes vapor products. 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.
EFFECTIVE DATE.
This section is effective the day following final enactment.
Sec. 2.
Minnesota Statutes 2016, section 297F.01, is amended by adding a subdivision to
read:
Subd. 22b.
Vapor products.
(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.
(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.
(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.
EFFECTIVE DATE.
This section is effective the day following final enactment.
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. 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.
EFFECTIVE DATE.
This section is effective the day following final enactment.
ARTICLE 13
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 laws.:
(a) (1) 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 state.;
(b) (2) 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 duty.;
(c) (3) 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 counties.;
(d) (4) require town, city, county, and other public officers to report and certify
information, at the parcel level or in the aggregate, as to the assessment and taxation of real
and personal property, and such other information as may be needful in the work of the
commissioner, in such form as the commissioner may prescribe. The commissioner shall
prescribe the content, format, manner, and time of filing of all required reports and
certifications;
(e) (5) 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
form.;
(f) (6) inquire into the methods of assessment and taxation and ascertain whether the
assessors faithfully discharge their duties.; and
(g) (7) assist local assessors in determining the estimated market value of industrial
special-use property. For purposes of this paragraph clause, "industrial special-use property"
means property that:
(1) (i) is designed and equipped for a particular type of industry;
(2) (ii) is not easily adapted to some other use due to the unique nature of the facilities;
(3) (iii) has facilities totaling at least 75,000 square feet in size; and
(4) (iv) has a total estimated market value of $10,000,000 or greater based on the
assessor's preliminary determination.
EFFECTIVE DATE.
This section is effective the day following final enactment.
Sec. 2.
Minnesota Statutes 2017 Supplement, section 270C.89, subdivision 1, is amended
to read:
Subdivision 1.
Initial report.
Each county assessor shall file by April 1 with the
commissioner a copy of the abstract preliminary assessment information that the
commissioner may require under section 270C.85, subdivision 2, clause (4), that will be
acted upon by the local and county boards of review. The abstract must list the real and
personal property in the county itemized by assessment districts. The assessor of each county
in the state shall file with the commissioner, within ten working days following final action
of the local board of review or equalization and within five days following final action of
the county board of equalization, any changes made by the local or county board. The
information must be filed in the manner prescribed by the commissioner.
EFFECTIVE DATE.
This section is effective the day following final enactment.
Sec. 3.
Minnesota Statutes 2016, section 270C.89, subdivision 2, is amended to read:
Subd. 2.
Final report.
The final abstract of assessments assessment information after
adjustments by the State Board of Equalization and inclusion of any omitted property shall
be submitted reported to the commissioner on or before September 1 of each calendar year
under section 270C.85, subdivision 2, clause (4). The 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.
EFFECTIVE DATE.
This section is effective the day following final enactment.
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 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.
EFFECTIVE DATE.
This section is effective the day following final enactment.
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 shall be
are 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 which that 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 the abstract of assessments for the commissioner of revenue
information reported to the commissioner under section 270C.85, subdivision 2, clause (4);
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; and
(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.
EFFECTIVE DATE.
This section is effective the day following final enactment.
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 (i) (1) a person on the assessor's
staff who is certified by the Department of Revenue in sales ratio calculations, (ii) (2) an
officer or employee who is certified by the Department of Revenue in tax calculations, and
(iii) (3) an officer or employee who is certified by the Department of Revenue in the proper
preparation of abstracts of assessment. The commissioner of revenue may require that each
county have an officer or employee who is certified by the Department of Revenue in the
proper preparation of abstracts of tax lists information reported to the commissioner under
section 270C.85, subdivision 2, clause (4). 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.
EFFECTIVE DATE.
This section is effective the day following final enactment.
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 revenue, as part of the abstracts of tax lists required to be filed with the
commissioner under section 275.29 270C.85, subdivision 2, clause (4), the amount of tax
lost to the county from the property tax credit under subdivision 2. Any prior year adjustments
must also be certified in the abstracts of tax lists. 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.
EFFECTIVE DATE.
This section is effective the day following final enactment.
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 revenue, as part of the abstracts of tax lists required to be filed with
the commissioner under section 275.29 270C.85, subdivision 2, clause (4), 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 in the abstracts of tax lists. 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.
EFFECTIVE DATE.
This section is effective the day following final enactment.
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 270C.89, subdivision 2 270C.85, subdivision 2, clause (4), for the
assessment in the year prior to the year of the damage.
EFFECTIVE DATE.
This section is effective the day following final enactment.
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 abstracts of tax lists submitted by the county
auditors pursuant to section 275.29 information reported to the commissioner under section
270C.85, subdivision 2, clause (4). The commissioner may make changes in the abstracts
of tax lists 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.
EFFECTIVE DATE.
This section is effective the day following final enactment.
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 $490 for a full agricultural homestead. 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
homestead, and the maximum credit equals $490 multiplied by the percentage of 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.
EFFECTIVE DATE.
This section is effective for taxes payable in 2019 and thereafter.
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 as a part of the abstracts of tax lists submitted
by the county auditors under section 275.29 under section 270C.85, subdivision 2, clause
(4). Any prior year adjustments shall also be certified on the abstracts of tax lists. The
commissioner shall review the certifications for accuracy, and may make such changes as
are deemed necessary, or return the certification to the county auditor for correction. The
credit under this section must be used to proportionately reduce the net tax capacity-based
property tax payable to each local taxing jurisdiction as provided in section 273.1393.
EFFECTIVE DATE.
This section is effective the day following final enactment.
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 as a part of the abstracts of tax lists submitted
under section 275.29 under section 270C.85, subdivision 2, clause (4). Any prior year
adjustments shall also be certified on the abstracts of tax lists. The commissioner shall
review the certifications for accuracy, and may make such changes as are deemed necessary,
or return the certification to the county auditor for correction. The credit under this section
must be used to reduce the school district net tax capacity-based property tax as provided
in section 273.1393.
EFFECTIVE DATE.
This section is effective the day following final enactment.
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) For purposes of the apportionment of fire state aid under section 69.021, subdivision
7, The county auditor shall include on the abstract of assessment of exempt real property
filed under this section in the exempt property information that the commissioner may
require under section 270C.85, subdivision 2, clause (4), 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.
EFFECTIVE DATE.
This section is effective the day following final enactment.
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 revenue, with the abstract of assessment required by section 274.16 within five days
following final action of the county board of equalization.
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.
EFFECTIVE DATE.
This section is effective the day following final enactment.
Sec. 16.
Minnesota Statutes 2016, section 274.16, is amended to read:
274.16 CORRECTED LISTS, ABSTRACTS.
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 duplicate abstracts duplicates 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.
EFFECTIVE DATE.
This section is effective the day following final enactment.
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 on the abstracts of tax lists submitted under section
275.29 that was not reported on the abstracts of assessment submitted under section 270C.89
to the commissioner under section 270C.85, subdivision 2, clause (4), 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.
EFFECTIVE DATE.
This section is effective the day following final enactment.
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 submit
report those amounts as part of the abstracts of tax lists submitted by the county auditors
under section 275.29 to the commissioner under section 270C.85, subdivision 2, clause (4).
The commissioner may make changes in the abstracts of tax lists 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.
EFFECTIVE DATE.
This section is effective the day following final enactment.
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 section 273.18 information
reported to the commissioner under section 270C.85, subdivision 2, clause (4), 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.
EFFECTIVE DATE.
This section is effective the day following final enactment.
Sec. 20. REPEALER.
Minnesota Statutes 2016, section 275.29,
is repealed.
EFFECTIVE DATE.
This section is effective the day following final enactment.
ARTICLE 14
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 disabled
veterans with a disability.
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 disabled veterans with a
disability and their families.
EFFECTIVE DATE.
This section is effective the day following final enactment.
Sec. 2.
Minnesota Statutes 2016, section 272.02, subdivision 81, is amended to read:
Subd. 81.
Certain recreational property for disabled veterans with a disability.
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 disabled veterans with a disability and their families.
EFFECTIVE DATE.
This section is effective the day following final enactment.
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 disabled veteran with a disability or
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).
EFFECTIVE DATE.
This section is effective the day following final enactment.
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 blind person who is
blind and the blind person's spouse of the person who is blind;
(2) any person who is permanently and totally disabled or by the disabled person with
a disability and the disabled person's spouse of the person with a disability; or
(3) the surviving spouse of a veteran who was 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 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).
EFFECTIVE DATE.
This section is effective the day following final enactment.
Sec. 5.
Minnesota Statutes 2017 Supplement, section 273.13, subdivision 34, is amended
to read:
Subd. 34.
Homestead of disabled veteran with a disability or family caregiver.
(a)
All or a portion of the market value of property owned by a veteran and serving as the
veteran's homestead under this section is excluded in determining the property's taxable
market value if the veteran has a service-connected disability of 70 percent or more as
certified by the United States Department of Veterans Affairs. To qualify for exclusion
under this subdivision, the veteran must have been honorably discharged from the United
States armed forces, as indicated by United States Government Form DD214 or other official
military discharge papers.
(b)(1) For a disability rating of 70 percent or more, $150,000 of market value is excluded,
except as provided in clause (2); and
(2) for a total (100 percent) and permanent disability, $300,000 of market value is
excluded.
(c) If a disabled veteran with a disability qualifying for a valuation exclusion under
paragraph (b), clause (2), predeceases the veteran's spouse, and if upon the death of the
veteran the spouse holds the legal or beneficial title to the homestead and permanently
resides there, the exclusion shall carry over to the benefit of the veteran's spouse 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 gravely disabled veterans with a disability, their primary family caregivers, and
their surviving spouses is to help ease the burdens of war for those among our state's citizens
who bear those burdens most heavily.
(m) By 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.
EFFECTIVE DATE.
This section is effective the day following final enactment.
Sec. 6.
Minnesota Statutes 2016, section 289A.08, subdivision 6, is amended to read:
Subd. 6.
Returns of married persons.
A husband and wife Individuals who are married
to each other must file a joint Minnesota income tax return if they filed a joint federal income
tax return. If the husband and wife spouses 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.
EFFECTIVE DATE.
This section is effective the day following final enactment.
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 the husband or the wife spouse or
may be divided between them.
EFFECTIVE DATE.
This section is effective the day following final enactment.
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 a husband
and wife spouses, 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 a husband and wife married as determined in
section 7703 of the Internal Revenue Code 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 the husband
and wife each spouse 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 husband or wife surviving spouse. 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.
EFFECTIVE DATE.
This section is effective the day following final enactment.
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 a husband and wife spouses, 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 husband and wife spouses, 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.
EFFECTIVE DATE.
This section is effective the day following final enactment.
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 disabled a person with a disability 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.
EFFECTIVE DATE.
This section is effective the day following final enactment.
Sec. 11.
Minnesota Statutes 2016, section 290.0802, subdivision 3, is amended to read:
Subd. 3.
Restrictions; married couples.
Except in the case of a husband and wife
spouses 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.
EFFECTIVE DATE.
This section is effective the day following final enactment.
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 disabled person with a disability;
(3) for depletion allowances computed under section 613A(c) of the Internal Revenue
Code, with respect to each property (as defined in section 614 of the Internal Revenue Code),
to the extent not included in federal alternative minimum taxable income, the excess of the
deduction for depletion allowable under section 611 of the Internal Revenue Code for the
taxable year over the adjusted basis of the property at the end of the taxable year (determined
without regard to the depletion deduction for the taxable year);
(4) to the extent not included in federal alternative minimum taxable income, the amount
of the tax preference for intangible drilling cost under section 57(a)(2) of the Internal Revenue
Code determined without regard to subparagraph (E);
(5) to the extent not included in federal alternative minimum taxable income, the amount
of interest income as provided by section 290.0131, subdivision 2; 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.
EFFECTIVE DATE.
This section is effective the day following final enactment.
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 was disabled had a disability or attained the age
of 65 on or before December 31 of the year for which the taxes were levied or rent paid,
the exemption amount.
(d) For purposes of this subdivision, the "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.
EFFECTIVE DATE.
This section is effective the day following final enactment.
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 husband or wife the claimant's spouse who are domiciled in the same homestead.
EFFECTIVE DATE.
This section is effective the day following final enactment.
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 husband and wife
married to each other, the rent shall be deemed to be paid equally by each, and separate
claims shall be filed by each. The income of each shall be each renter's household income
for purposes of computing the amount of credit to be allowed.
EFFECTIVE DATE.
This section is effective the day following final enactment.
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 or persons not related to the person
as husband and wife the person's spouse, excluding dependents, roomers or boarders on
contract, and has property tax payable with respect to the homestead, the household income
of the claimant or claimants for the purpose of computing the refund allowed by section
290A.04 shall include the total income received by the other persons residing in the
homestead. For purposes of this section, "dependent" includes a parent of the claimant or
spouse who lives in the claimant's homestead and does not have an ownership interest in
the homestead. If a person occupies a homestead with another person or persons not related
to the person as husband and wife the person's spouse 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.
EFFECTIVE DATE.
This section is effective the day following final enactment.
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 husband and wife spouses as one claimant.
The commissioner, upon written request, may issue separate checks, to the husband and
wife spouses for one-half of the relief provided the original check has not been issued or
has been returned. Individuals related as husband and wife spouses 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. Husbands and wives Spouses who
were married for the entire year and were domiciled in the same household for the entire
year must file a joint claim. The maximum dollar amount allowable for a joint claim shall
not exceed the amount that one person could receive.
EFFECTIVE DATE.
This section is effective the day following final enactment.
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.
Disabled Persons with a disability filing claims shall submit proof of disability in the
form and manner as the commissioner may prescribe. The department may require
examination and certification by the claimant's physician or by a physician designated by
the commissioner. The cost of any examination shall be borne by the claimant, unless the
examination proves the disability, in which case the cost of the examination shall be borne
by the commissioner.
A determination of disability of a claimant by the Social Security Administration under
Title II or Title XVI of the Social Security Act shall constitute presumptive proof of disability.
EFFECTIVE DATE.
This section is effective the day following final enactment.
Sec. 19.
Minnesota Statutes 2016, section 297A.61, subdivision 18, is amended to read:
Subd. 18.
Disabled Person with a disability.
"Disabled Person with a disability" means
an individual who has a permanent and total disability as defined in section 273.13,
subdivision 22.
EFFECTIVE DATE.
This section is effective the day following final enactment.
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 disabled persons with a disability 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 disabled children with a disability 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.
EFFECTIVE DATE.
This section is effective the day following final enactment.
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 disabled accessible
to a person with a disability.
Parts, accessories, and labor charges that are used solely to
modify a motor vehicle to make it disabled accessible to persons with a disability are exempt.
EFFECTIVE DATE.
This section is effective the day following final enactment.
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 elderly individuals or disabled individuals persons with a disability;
(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.
EFFECTIVE DATE.
This section is effective the day following final enactment.
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 physically
disabled persons with a physical disability;
(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.
EFFECTIVE DATE.
This section is effective the day following final enactment.
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
disabilities a disability; or
(2) educational or religious activities;
and if the camp or facilities are owned and operated by an exempt organization under section
501(c)(3) of the Internal Revenue Code.
EFFECTIVE DATE.
This section is effective the day following final enactment.
Sec. 25.
Minnesota Statutes 2016, section 297A.71, subdivision 22, is amended to read:
Subd. 22.
Materials used to make residential property disabled accessible to persons
with a disability.
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 disabled accessible to persons with a disability; 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.
EFFECTIVE DATE.
This section is effective the day following final enactment.
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 disabled veterans with a disability exempt
under section 297A.71, subdivision 11;
(5) elevators and building materials exempt under section 297A.71, subdivision 12;
(6) materials and supplies for qualified low-income housing under section 297A.71,
subdivision 23;
(7) materials, supplies, and equipment for municipal electric utility facilities under
section 297A.71, subdivision 35;
(8) equipment and materials used for the generation, transmission, and distribution of
electrical energy and an aerial camera package exempt under section 297A.68, subdivision
37;
(9) commuter rail vehicle and repair parts under section 297A.70, subdivision 3, paragraph
(a), clause (10);
(10) materials, supplies, and equipment for construction or improvement of projects and
facilities under section 297A.71, subdivision 40;
(11) materials, supplies, and equipment for construction, improvement, or expansion
of:
(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).
EFFECTIVE DATE.
This section is effective the day following final enactment.
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 disability accessible to
persons with a disability.
(c) The term "purchase price" shall not include the transfer of a motor vehicle by way
of gift between a husband and wife spouses 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.
EFFECTIVE DATE.
This section is effective the day following final enactment.
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 a husband and wife
spouses 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.
EFFECTIVE DATE.
This section is effective the day following final enactment.
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 (1) petitions and appeals filed after
June 30, 2017, 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.
EFFECTIVE DATE.
This section is effective the day following final enactment.
APPENDIX
Repealed Minnesota Statutes: UEH4385-1
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.10 FILING REQUIREMENTS FOR ESTATE TAX RETURNS.
Subd. 1a.
Recapture tax return required.
If a disposition or cessation as provided by section 291.03, subdivision 11, paragraph (a), has occurred, the qualified heir, as defined under section 291.03, subdivision 8, paragraph (c), or personal representative of the decedent's estate must submit a recapture tax return to the commissioner.
289A.12 FILING REQUIREMENTS FOR INFORMATION RETURNS AND REPORTS.
Subd. 18.
Returns by qualified heirs.
A qualified heir, as defined in section 291.03, subdivision 8, paragraph (c), must file two returns with the commissioner attesting that no disposition or cessation as provided by section 291.03, subdivision 11, paragraph (a), occurred. The first return must be filed no earlier than 24 months and no later than 26 months after the decedent's death. The second return must be filed no earlier than 36 months and no later than 39 months after the decedent's death.
289A.18 DUE DATES FOR FILING OF RETURNS.
Subd. 3a.
Recapture tax return.
A recapture tax return must be filed with the commissioner within six months after the date of the disposition or cessation as provided by section 291.03, subdivision 11, paragraph (a).
289A.20 DUE DATES FOR MAKING PAYMENTS OF TAX.
Subd. 3a.
Recapture tax.
The additional estate tax imposed by section 291.03, subdivision 11, paragraph (b), is due and payable on or before the expiration of the date provided by section 291.03, subdivision 11, paragraph (c).
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.
290.0131 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.
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.
290.10 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.
291.03 RATES.
Subd. 8.
Definitions.
(a) For purposes of this section, the following terms have the meanings given in this subdivision.
(b) "Family member" means a family member as defined in section 2032A(e)(2) of the Internal Revenue Code, or a trust whose present beneficiaries are all family members as defined in section 2032A(e)(2) of the Internal Revenue Code.
(c) "Qualified heir" means a family member who acquired qualified property upon the death of the decedent and satisfies the requirement under subdivision 9, clause (7), or subdivision 10, clause (5), for the property.
(d) "Qualified property" means qualified small business property under subdivision 9 and qualified farm property under subdivision 10.
Subd. 9.
Qualified small business property.
Property satisfying all of the following requirements is qualified small business property:
(1) The value of the property was included in the 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 consist of cash, cash equivalents, publicly traded securities, or assets not used in the operation of the trade or business. For property consisting of shares of stock or other ownership interests in an entity, the value of cash, cash equivalents, publicly traded securities, or assets not used in the operation of the trade or business held by the corporation or other entity must be deducted from the value of the property qualifying under this subdivision in proportion to the decedent's share of ownership of the entity on the date of death.
(6) The decedent continuously owned the property, including property the decedent is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code, for the three-year period ending on the date of death of the decedent. In the case of a sole proprietor, if the property replaced similar property within the three-year period, the replacement property will be treated as having been owned for the three-year period ending on the date of death of the decedent.
(7) For three years following the date of death of the decedent, the trade or business is not a passive activity within the meaning of section 469(c) of the Internal Revenue Code, and a family member materially participates in the operation of the trade or business within the meaning of section 469(h) of the Internal Revenue Code, excluding section 469(h)(3) of the Internal Revenue Code and any other provision provided by United States Treasury Department regulation that substitutes material participation in prior taxable years for material participation in the three years following the date of death of the decedent.
(8) The estate and the qualified heir elect to treat the property as qualified small business property and agree, in the form prescribed by the commissioner, to pay the recapture tax under subdivision 11, if applicable.
Subd. 10.
Qualified farm property.
Property satisfying all of the following requirements is qualified farm property:
(1) The value of the property was included in the 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 decedent continuously owned the property, including property the decedent is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code, for the three-year period ending on the date of death of the decedent either by ownership of the agricultural land or pursuant to holding an interest in an entity that is not subject to or is in compliance with section 500.24.
(5) The property is classified for property tax purposes as class 2a property under section 273.13, subdivision 23, for three years following the date of death of the decedent.
(6) The estate and the qualified heir elect to treat the property as qualified farm property and agree, in a form prescribed by the commissioner, to pay the recapture tax under subdivision 11, if applicable.
Subd. 11.
Recapture tax.
(a) If, within three years after the decedent's death and before the death of the qualified heir, the qualified heir disposes of any interest in the qualified property, other than by a disposition to a family member, or a family member ceases to satisfy the requirement under subdivision 9, clause (7); or 10, clause (5), an additional estate tax is imposed on the property. In the case of a sole proprietor, if the qualified heir replaces qualified small business property excluded under subdivision 9 with similar property, then the qualified heir will not be treated as having disposed of an interest in the qualified property.
(b) The amount of the additional tax equals the amount of the exclusion claimed by the estate under subdivision 8, paragraph (d), multiplied by 16 percent.
(c) The additional tax under this subdivision is due on the day which is six months after the date of the disposition or cessation in paragraph (a).