Minnesota Legislature
HF 677
Conference Committee Report - 88th Legislature (2013 - 2014) Posted on 05/19/2013 07:14pm
KEY: stricken = removed, old language.
underscored = added, new language.
1.1CONFERENCE COMMITTEE REPORT ON H. F. No. 677
1.3 relating to financing of state and local government; making changes to individual
1.4income, corporate franchise, property, sales and use, estate, mineral, liquor,
1.5tobacco, aggregate materials, local, and other taxes and tax-related provisions;
1.6restoring the school district current year aid payment shift percentage to 90;
1.7conforming to federal section 179 expensing allowances; imposing an income
1.8surcharge; allowing an up-front exemption for capital equipment; modifying
1.9the definition of income for the property tax refund; decreasing the threshold
1.10percentage for the homestead credit refund for homeowners and the property
1.11tax refund for renters; increasing the maximum refunds for renters; changing
1.12property tax aids and credits; imposing an insurance surcharge; modifying
1.13pension aids; providing pension funding; changing provisions of the Sustainable
1.14Forest Incentive Act; modifying definitions for property taxes; providing
1.15exemptions; creating joint entertainment facilities coordination; imposing a
1.16sports memorabilia gross receipts tax; changing tax rates on tobacco and liquor;
1.17providing reimbursement for certain property tax abatement; modifying the small
1.18business investment tax credit; expanding the definition of domestic corporation
1.19to include foreign corporations incorporated in or doing business in tax havens;
1.20making changes to additions and subtractions from federal taxable income;
1.21changing rates for individuals, estates, and trusts; providing for charitable
1.22contributions and veterans jobs tax credits; modifying estate tax exclusions for
1.23qualifying small business and farm property; imposing a gift tax; expanding
1.24the sales tax to include suite and box seat rentals; modifying the definition
1.25of sales and purchase; changing the tax rate and modifying provisions for the
1.26rental motor vehicle tax; modifying nexus provisions; providing for multiple
1.27points of use certificates; modifying exemptions; authorizing local sales taxes;
1.28authorizing economic development powers; providing authority, organization,
1.29powers, and duties for development of a Destination Medical Center; authorizing
1.30state infrastructure aid; imposing a tax on extraction and processing of fracturing
1.31sand; providing a taconite production tax grant for water supply improvements;
1.32authorizing taconite production tax bonds for grants to school districts; modifying
1.33and providing provisions for public finance; modifying the definition of market
1.34value for tax, debt, and other purposes; requiring labor peace agreements on
1.35certain qualifying projects; making conforming, policy, and technical changes to
1.36tax provisions; requiring studies and reports; appropriating money;amending
1.37Minnesota Statutes 2012, sections 16A.152, subdivision 2; 16A.46; 38.18;
1.3840A.15, subdivision 2; 69.011, subdivision 1; 69.021, subdivisions 7, 8, by
1.39adding a subdivision; 88.51, subdivision 3; 103B.102, subdivision 3; 103B.245,
1.40subdivision 3; 103B.251, subdivision 8; 103B.335; 103B.3369, subdivision 5;
1.41103B.635, subdivision 2; 103B.691, subdivision 2; 103C.501, subdivision 4;
1.42103D.905, subdivisions 2, 3, 8; 103F.405, subdivision 1; 116J.8737, subdivisions
1.431, 2, 8; 117.025, subdivision 7; 118A.04, subdivision 3; 118A.05, subdivision
2.15; 123A.455, subdivision 1; 123B.75, subdivision 5; 126C.48, subdivision 8;
2.2127A.45, subdivision 2; 127A.48, subdivision 1; 138.053; 144F.01, subdivision
2.34; 162.07, subdivisions 3, 4; 163.04, subdivision 3; 163.051; 163.06, subdivision
2.46; 165.10, subdivision 1; 168.012, subdivision 9, by adding a subdivision;
2.5216C.436, subdivision 7; 237.52, subdivision 3, by adding a subdivision;
2.6270.077; 270.41, subdivision 5; 270B.01, subdivision 8; 270B.12, subdivision
2.74; 270C.34, subdivision 1; 270C.38, subdivision 1; 270C.42, subdivision 2;
2.8270C.56, subdivision 1; 271.06, by adding a subdivision; 272.01, subdivision 2;
2.9272.02, subdivisions 39, 97, by adding subdivisions; 272.03, subdivision 9, by
2.10adding subdivisions; 273.032; 273.11, subdivision 1, by adding a subdivision;
2.11273.114, subdivision 6; 273.124, subdivisions 3a, 13; 273.13, subdivisions
2.1221b, 23, 25; 273.1398, subdivisions 3, 4; 273.19, subdivision 1; 273.372,
2.13subdivision 4; 273.39; 275.011, subdivision 1; 275.077, subdivision 2; 275.71,
2.14subdivision 4; 276.04, subdivision 2; 276A.01, subdivisions 10, 12, 13, 15;
2.15276A.06, subdivision 10; 279.01, subdivision 1, by adding a subdivision; 279.02;
2.16279.06, subdivision 1; 287.05, by adding a subdivision; 287.08; 287.20, by
2.17adding a subdivision; 287.23, subdivision 1; 287.385, subdivision 7; 289A.02,
2.18subdivision 7; 289A.08, subdivisions 1, 3, 7; 289A.10, subdivision 1, by adding
2.19a subdivision; 289A.12, subdivision 14, by adding a subdivision; 289A.18, by
2.20adding a subdivision; 289A.20, subdivisions 3, 4, by adding a subdivision;
2.21289A.26, subdivisions 3, 4, 7, 9; 289A.55, subdivision 9; 289A.60, subdivision
2.224; 290.01, subdivisions 5, 19, as amended, 19a, 19b, 19c, 19d, 31, as amended,
2.23by adding subdivisions; 290.06, subdivisions 2c, 2d, by adding subdivisions;
2.24290.067, subdivisions 1, 2a; 290.0671, subdivision 1; 290.0675, subdivision 1;
2.25290.0677, subdivision 2; 290.068, subdivisions 3, 6a; 290.0681, subdivisions 1,
2.263, 4, 5; 290.091, subdivision 2; 290.0921, subdivision 3; 290.0922, subdivision 1;
2.27290.17, subdivision 4; 290.21, subdivision 4; 290.9705, subdivision 1; 290A.03,
2.28subdivisions 3, 15, as amended; 290A.04, subdivisions 2, 2a, 4; 290B.04,
2.29subdivision 2; 290C.02, subdivision 6; 290C.05; 290C.07; 291.005, subdivision
2.301; 291.03, subdivisions 1, 8, 9, 10, 11, by adding a subdivision; 296A.01,
2.31subdivision 19, by adding a subdivision; 296A.22, subdivisions 1, 3; 297A.61,
2.32subdivisions 3, 4, by adding a subdivision; 297A.64, subdivisions 1, 2; 297A.66,
2.33by adding a subdivision; 297A.665; 297A.668, by adding a subdivision;
2.34297A.67, subdivision 7; 297A.68, subdivision 5; 297A.70, subdivisions 4, 8, by
2.35adding subdivisions; 297A.71, by adding subdivisions; 297A.75, subdivisions 1,
2.362, 3; 297A.815, subdivision 3; 297A.993, subdivisions 1, 2; 297B.11; 297E.021,
2.37subdivision 2; 297E.14, subdivision 7; 297F.01, subdivisions 3, 19, 23, by
2.38adding a subdivision; 297F.05, subdivisions 1, 3, 4, by adding a subdivision;
2.39297F.09, subdivision 9; 297F.18, subdivision 7; 297F.24, subdivision 1; 297F.25,
2.40subdivision 1; 297G.03, subdivision 1, by adding a subdivision; 297G.04;
2.41297G.09, subdivision 8; 297G.17, subdivision 7; 297I.05, subdivisions 7, 11, 12;
2.42297I.30, subdivisions 1, 2; 297I.80, subdivision 1; 298.01, subdivisions 3, 3b,
2.434; 298.018; 298.227, as amended; 298.24, subdivision 1; 298.28, subdivisions
2.444, 6, 10; 298.75, subdivision 2; 325D.32, subdivision 2; 353G.08, subdivision
2.452; 365.025, subdivision 4; 366.095, subdivision 1; 366.27; 368.01, subdivision
2.4623; 368.47; 370.01; 373.01, subdivisions 1, 3; 373.40, subdivisions 1, 2, 4;
2.47375.167, subdivision 1; 375.18, subdivision 3; 375.555; 383B.152; 383B.245;
2.48383B.73, subdivision 1; 383D.41, by adding a subdivision; 383E.20; 383E.23;
2.49385.31; 394.36, subdivision 1; 398A.04, subdivision 8; 401.05, subdivision 3;
2.50403.02, subdivision 21, by adding subdivisions; 403.06, subdivision 1a; 403.11,
2.51subdivision 1, by adding a subdivision; 410.32; 412.221, subdivision 2; 412.301;
2.52428A.02, subdivision 1; 430.102, subdivision 2; 447.10; 450.19; 450.25;
2.53458A.10; 458A.31, subdivision 1; 465.04; 469.033, subdivision 6; 469.034,
2.54subdivision 2; 469.053, subdivisions 4, 4a, 6; 469.071, subdivision 5; 469.107,
2.55subdivision 1; 469.169, by adding a subdivision; 469.176, subdivisions 4c, 4g,
2.566; 469.177, by adding a subdivision; 469.180, subdivision 2; 469.187; 469.190,
2.57subdivision 7, by adding a subdivision; 469.206; 469.319, subdivision 4; 469.340,
2.58subdivision 4; 471.24; 471.571, subdivisions 1, 2; 471.73; 473.325, subdivision
3.12; 473.39, by adding a subdivision; 473.629; 473.661, subdivision 3; 473.667,
3.2subdivision 9; 473.671; 473.711, subdivision 2a; 473F.02, subdivisions 12, 14,
3.315, 23; 473F.08, subdivision 10, by adding a subdivision; 474A.04, subdivision
3.41a; 474A.062; 474A.091, subdivision 3a; 475.521, subdivisions 1, 2, 4; 475.53,
3.5subdivisions 1, 3, 4; 475.58, subdivisions 2, 3b; 475.73, subdivision 1; 477A.011,
3.6subdivisions 20, 30, 32, 34, 42, by adding subdivisions; 477A.0124, subdivision
3.72; 477A.013, subdivisions 8, 9, by adding a subdivision; 477A.015; 477A.03,
3.8subdivisions 2a, 2b, by adding a subdivision; 641.23; 641.24; 645.44, by adding
3.9a subdivision; Laws 1971, chapter 773, section 1, subdivision 2, as amended;
3.10Laws 1988, chapter 645, section 3, as amended; Laws 1993, chapter 375, article
3.119, section 46, subdivisions 2, as amended, 5, as amended; Laws 1998, chapter
3.12389, article 8, section 43, subdivisions 1, 3, as amended, 5, as amended; Laws
3.131999, chapter 243, article 6, section 11; Laws 2002, chapter 377, article 3, section
3.1425, as amended; Laws 2005, First Special Session chapter 3, article 5, section
3.1537, subdivisions 2, 4; Laws 2008, chapter 366, article 5, sections 26; 33; 34, as
3.16amended; article 7, section 19, subdivision 3, as amended; Laws 2010, chapter
3.17216, section 55; Laws 2010, chapter 389, article 1, section 12; article 5, section 6,
3.18subdivisions 4, 6; Laws 2010, First Special Session chapter 1, article 13, section 4,
3.19subdivision 1, as amended; proposing coding for new law in Minnesota Statutes,
3.20chapters 116C; 287; 290; 290A; 292; 295; 297I; 403; 435; 469; proposing coding
3.21for new law as Minnesota Statutes, chapter 297J; repealing Minnesota Statutes
3.222012, sections 16A.725; 256.9658; 272.69; 273.11, subdivisions 1a, 22; 276A.01,
3.23subdivision 11; 289A.60, subdivision 31; 290.01, subdivision 6b; 290.06,
3.24subdivision 22a; 290.0672; 290.0921, subdivision 7; 383A.80, subdivision 4;
3.25383B.80, subdivision 4; 428A.101; 428A.21; 473F.02, subdivision 13; 477A.011,
3.26subdivisions 2a, 19, 21, 29, 31, 32, 33, 36, 39, 40, 41, 42; 477A.013, subdivisions
3.2711, 12; 477A.0133; 477A.0134; Laws 2006, chapter 259, article 11, section 3, as
3.28amended; Laws 2009, chapter 88, article 4, section 23, as amended.
3.29May 19, 2013
3.30The Honorable Paul Thissen
3.31Speaker of the House of Representatives
3.32The Honorable Sandra L. Pappas
3.33President of the Senate
3.34We, the undersigned conferees for H. F. No. 677 report that we have agreed upon the
3.35items in dispute and recommend as follows:
3.36That the Senate recede from its amendments and that H. F. No. 677 be further
3.37amended as follows:
3.38Delete everything after the enacting clause and insert:
3.41 Section 1. Minnesota Statutes 2012, section 290A.03, subdivision 3, is amended to read:
3.42 Subd. 3. Income. (1) "Income" means the sum of the following:
3.43 (a) federal adjusted gross income as defined in the Internal Revenue Code; and
3.44 (b) the sum of the following amounts to the extent not included in clause (a):
3.45 (i) all nontaxable income;
4.1 (ii) the amount of a passive activity loss that is not disallowed as a result of section
4.2469, paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity
4.3loss carryover allowed under section 469(b) of the Internal Revenue Code;
4.4 (iii) an amount equal to the total of any discharge of qualified farm indebtedness
4.5of a solvent individual excluded from gross income under section 108(g) of the Internal
4.6Revenue Code;
4.7 (iv) cash public assistance and relief;
4.8 (v) any pension or annuity (including railroad retirement benefits, all payments
4.9received under the federal Social Security Act, Supplemental Security Income, and
4.10veterans benefits), which was not exclusively funded by the claimant or spouse, or which
4.11was funded exclusively by the claimant or spouse and which funding payments were
4.12excluded from federal adjusted gross income in the years when the payments were made;
4.13 (vi) interest received from the federal or a state government or any instrumentality
4.14or political subdivision thereof;
4.15 (vii) workers' compensation;
4.16 (viii) nontaxable strike benefits;
4.17 (ix) the gross amounts of payments received in the nature of disability income or
4.18sick pay as a result of accident, sickness, or other disability, whether funded through
4.19insurance or otherwise;
4.20 (x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
4.211986, as amended through December 31, 1995;
4.22 (xi) contributions made by the claimant to an individual retirement account,
4.23including a qualified voluntary employee contribution; simplified employee pension plan;
4.24self-employed retirement plan; cash or deferred arrangement plan under section 401(k)
4.25of the Internal Revenue Code; or deferred compensation plan under section 457 of the
4.26Internal Revenue Code, to the extent the sum of amounts exceeds the retirement base
4.27amount for the claimant and spouse;
4.28 (xii) to the extent not included in federal adjusted gross income, distributions received
4.29by the claimant or spouse from a traditional or Roth style retirement account or plan;
4.30 (xiii) nontaxable scholarship or fellowship grants;
4.31(xiii) (xiv) the amount of deduction allowed under section 199 of the Internal
4.32Revenue Code;
4.33(xiv) (xv) the amount of deduction allowed under section 220 or 223 of the Internal
4.34Revenue Code;
5.1(xv) (xvi) the amount of deducted for tuition expenses required to be added to
5.2income under section
290.01, subdivision 19a, clause (12); under section 222 of the
5.3Internal Revenue Code; and
5.4(xvi) (xvii) the amount deducted for certain expenses of elementary and secondary
5.5school teachers under section 62(a)(2)(D) of the Internal Revenue Code; and.
5.6(xvii) unemployment compensation.
5.7 In the case of an individual who files an income tax return on a fiscal year basis, the
5.8term "federal adjusted gross income" shall mean federal adjusted gross income reflected
5.9in the fiscal year ending in the calendar year. Federal adjusted gross income shall not be
5.10reduced by the amount of a net operating loss carryback or carryforward or a capital loss
5.11carryback or carryforward allowed for the year.
5.12 (2) "Income" does not include:
5.13 (a) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
5.14 (b) amounts of any pension or annuity which was exclusively funded by the claimant
5.15or spouse and which funding payments were not excluded from federal adjusted gross
5.16income in the years when the payments were made;
5.17 (c) to the extent included in federal adjusted gross income, amounts contributed by
5.18the claimant or spouse to a traditional or Roth style retirement account or plan, but not
5.19to exceed the retirement base amount reduced by the amount of contributions excluded
5.20from federal adjusted gross income, but not less than zero;
5.21 (d) surplus food or other relief in kind supplied by a governmental agency;
5.22(d) (e) relief granted under this chapter;
5.23(e) (f) child support payments received under a temporary or final decree of
5.24dissolution or legal separation; or
5.25(f) (g) restitution payments received by eligible individuals and excludable interest
5.26as defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of
5.272001, Public Law 107-16.
5.28 (3) The sum of the following amounts may be subtracted from income:
5.29 (a) for the claimant's first dependent, the exemption amount multiplied by 1.4;
5.30 (b) for the claimant's second dependent, the exemption amount multiplied by 1.3;
5.31 (c) for the claimant's third dependent, the exemption amount multiplied by 1.2;
5.32 (d) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
5.33 (e) for the claimant's fifth dependent, the exemption amount; and
5.34 (f) if the claimant or claimant's spouse was disabled or attained the age of 65
5.35on or before December 31 of the year for which the taxes were levied or rent paid, the
5.36exemption amount.
6.1 For purposes of this subdivision, the "exemption amount" means the exemption
6.2amount under section 151(d) of the Internal Revenue Code for the taxable year for which
6.3the income is reported; "retirement base amount" means the deductible amount for the
6.4taxable year for the claimant and spouse under section 219(b)(5)(A) of the Internal
6.5Revenue Code, adjusted for inflation as provided in section 219(b)(5)(D) of the Internal
6.6Revenue Code, without regard to whether the claimant or spouse claimed a deduction;
6.7and "traditional or Roth style retirement account or plan" means retirement plans under
6.8sections 401, 403, 408, 408A, and 457 of the Internal Revenue Code.
6.9EFFECTIVE DATE.This section is effective beginning with refunds based on
6.10property taxes payable in 2014 and rent paid in 2013.
6.11 Sec. 2. Minnesota Statutes 2012, section 290A.04, subdivision 2, is amended to read:
6.12 Subd. 2. Homeowners; homestead credit refund. A claimant whose property
6.13taxes payable are in excess of the percentage of the household income stated below shall
6.14pay an amount equal to the percent of income shown for the appropriate household
6.15income level along with the percent to be paid by the claimant of the remaining amount
6.16of property taxes payable. The state refund equals the amount of property taxes payable
6.17that remain, up to the state refund amount shown below.
7.35 The payment made to a claimant shall be the amount of the state refund calculated
7.36under this subdivision. No payment is allowed if the claimant's household income is
7.37$100,780 $105,500 or more.
7.38EFFECTIVE DATE.This section is effective for refund claims based on taxes
7.39payable in 2014 and thereafter.
7.40 Sec. 3. Minnesota Statutes 2012, section 290A.04, subdivision 2a, is amended to read:
8.1 Subd. 2a. Renters. A claimant whose rent constituting property taxes exceeds the
8.2percentage of the household income stated below must pay an amount equal to the percent
8.3of income shown for the appropriate household income level along with the percent to
8.4be paid by the claimant of the remaining amount of rent constituting property taxes. The
8.5state refund equals the amount of rent constituting property taxes that remain, up to the
8.6maximum state refund amount shown below.
9.19 The payment made to a claimant is the amount of the state refund calculated under
9.20this subdivision. No payment is allowed if the claimant's household income is$41,820
9.21 $57,170 or more.
9.22EFFECTIVE DATE.This section is effective for claims based on rent paid in
9.232013 and following years.
9.24 Sec. 4. Minnesota Statutes 2012, section 290A.04, subdivision 4, is amended to read:
9.25 Subd. 4. Inflation adjustment. (a) Beginning for property tax refunds payable in
9.26calendar year 2002, the commissioner shall annually adjust the dollar amounts of the
9.27income thresholds and the maximum refunds under subdivisions 2 and 2a for inflation.
9.28The commissioner shall make the inflation adjustments in accordance with section 1(f) of
9.29the Internal Revenue Code, except that for purposes of this subdivision the percentage
9.30increase shall be determined as provided in this subdivision.
9.31 (b) In adjusting the dollar amounts of the income thresholds and the maximum
9.32refunds under subdivision 2 for inflation, the percentage increase shall be determined
9.33from the year ending on June 30,2011 2013, to the year ending on June 30 of the year
9.34preceding that in which the refund is payable.
9.35 (c) In adjusting the dollar amounts of the income thresholds and the maximum
9.36refunds under subdivision 2a for inflation, the percentage increase shall be determined
10.1from the year ending on June 30,2000 2013, to the year ending on June 30 of the year
10.2preceding that in which the refund is payable.
10.3 (d) The commissioner shall use the appropriate percentage increase to annually
10.4adjust the income thresholds and maximum refunds under subdivisions 2 and 2a for
10.5inflation without regard to whether or not the income tax brackets are adjusted for inflation
10.6in that year. The commissioner shall round the thresholds and the maximum amounts,
10.7as adjusted to the nearest $10 amount. If the amount ends in $5, the commissioner shall
10.8round it up to the next $10 amount.
10.9 (e) The commissioner shall annually announce the adjusted refund schedule at the
10.10same time provided under section290.06 . The determination of the commissioner under
10.11this subdivision is not a rule under the Administrative Procedure Act.
10.12EFFECTIVE DATE.This section is effective for refund claims based on taxes
10.13payable in 2014 and rent paid in 2013 and following years.
10.14 Sec. 5. [290A.28] NOTIFICATION OF POTENTIAL ELIGIBILITY.
10.15 Subdivision 1. Notification of eligibility. (a) By September 1, 2014, the
10.16commissioner shall notify, in writing or electronically, individual homeowners whom the
10.17commissioner determines may be eligible for a homestead credit refund under this chapter
10.18for that property taxes payable year as provided in this section. In determining whether
10.19to notify a homeowner, the commissioner shall consider the property tax information
10.20available to the commissioner under paragraph (b) for the homeowner and must estimate
10.21the homeowner's household income using the most recent income information available to
10.22the commissioner from filing under this chapter for the prior year, under chapter 290 for
10.23the current or prior year, and any other income information available to the commissioner.
10.24For each homeowner, the commissioner must estimate the homestead credit refund
10.25amount under the schedule in section 290A.04, subdivision 2, using the homeowner's
10.26property tax amount and estimated household income. If the estimated homestead credit
10.27refund is at least $1,000, the commissioner must notify the homeowner of potential
10.28eligibility for the homestead credit refund. The notification must include information
10.29on how to file for the homestead credit refund. The notification requirement under this
10.30section does not apply to a homeowner who has already filed for the homestead credit
10.31refund for the current or prior year.
10.32 (b) By May 15, 2014, each county auditor shall transmit to the commissioner
10.33of revenue the following information for each property classified as a residential or
10.34agricultural homestead under section 273.13, subdivision 22 or 23:
10.35 (1) the property taxes payable;
11.1 (2) the name and address of the owner;
11.2 (3) the Social Security number or numbers of the owners; and
11.3 (4) any other information the commissioner deems necessary or useful to carry
11.4out the provisions of this section.
11.5The information must be provided in the form and manner prescribed by the commissioner.
11.6 Subd. 2. Reports. (a) By March 15, 2015, the commissioner must provide a written
11.7report to the chairs and ranking minority members of the legislative committees with
11.8jurisdiction over taxes, in compliance with sections 3.195 and 3.197. The report must
11.9provide information on the number and dollar amount of homeowner property tax refund
11.10claims based on taxes payable in 2014, including:
11.11 (1) the number and dollar amount of claims projected for homestead credit refunds
11.12based on taxes payable in 2014 prior to enactment of the notification requirement in
11.13this section;
11.14 (2) the number of notifications issued as provided in this section, including the
11.15number issued by county;
11.16 (3) preliminary information on the number and dollar amount of claims for
11.17homestead credit refunds based on taxes payable in 2014; and
11.18 (4) a description of any outreach efforts undertaken by the commissioner for
11.19homestead credit refunds based on taxes payable in 2014, in addition to the notification
11.20required in this section.
11.21 (b) By February 1, 2016, the commissioner must provide a written report to the chairs
11.22and ranking minority members of the legislative committees with jurisdiction over taxes,
11.23in compliance with sections 3.195 and 3.197. The report must include the information
11.24required in paragraph (a) and must also include final information on the number and dollar
11.25amount of claims for homestead credit refunds based on taxes payable in 2014.
11.26EFFECTIVE DATE.This section is effective for refund claims based on property
11.27taxes payable in 2014.
11.30 Section 1. Minnesota Statutes 2012, section 273.1398, subdivision 4, is amended to read:
11.31 Subd. 4. Disparity reduction credit. (a) Beginning with taxes payable in 1989,
11.32class 4a and class 3a property qualifies for a disparity reduction credit if: (1) the property
11.33is located in a border city that has an enterprise zone, as defined in section469.166 ; (2)
11.34the property is located in a city with a population greater than 2,500 and less than 35,000
11.35according to the 1980 decennial census; (3) the city is adjacent to a city in another state or
12.1immediately adjacent to a city adjacent to a city in another state; and (4) the adjacent city
12.2in the other state has a population of greater than 5,000 and less than 75,000 according to
12.3the 1980 decennial census.
12.4 (b) The credit is an amount sufficient to reduce (i) the taxes levied on class 4a
12.5property to2.3 1.9 percent of the property's market value and (ii) the tax on class 3a
12.6property to2.3 1.9 percent of market value.
12.7 (c) The county auditor shall annually certify the costs of the credits to the
12.8Department of Revenue. The department shall reimburse local governments for the
12.9property taxes forgone as the result of the credits in proportion to their total levies.
12.10EFFECTIVE DATE.This section is effective beginning with taxes payable in 2014.
12.11 Sec. 2. Minnesota Statutes 2012, section 290C.02, subdivision 6, is amended to read:
12.12 Subd. 6. Forest land. "Forest land" means land containing a minimum of 20
12.13contiguous acres for which the owner has implemented a forest management plan that was
12.14prepared or updated within the past ten years by an approved plan writer. For purposes of
12.15this subdivision, acres are considered to be contiguous even if they are separated by a road,
12.16waterway, railroad track, or other similar intervening property. At least 50 percent of the
12.17contiguous acreage must meet the definition of forest land in section88.01, subdivision
12.187 . For the purposes of sections
290C.01 to
290C.11 , forest land does not include (i)
12.19land used for residential or agricultural purposes, (ii) land enrolled in the reinvest in
12.20Minnesota program, a state or federal conservation reserve or easement reserve program
12.21under sections103F.501 to
103F.531 , the Minnesota agricultural property tax law under
12.22section273.111 , or land subject to agricultural land preservation controls or restrictions
12.23as defined in section40A.02 or under the Metropolitan Agricultural Preserves Act under
12.24chapter 473H,or (iii) land exceeding 60,000 acres that is subject to a single conservation
12.25easement funded under section 97A.056 or a comparable permanent easement conveyed
12.26to a governmental or nonprofit entity; (iv) any land that becomes subject to a conservation
12.27easement funded under section 97A.056 or a comparable permanent easement conveyed
12.28to a governmental or nonprofit entity after May 30, 2013; or (v) land improved with a
12.29structure, pavement, sewer, campsite, or any road, other than a township road, used for
12.30purposes not prescribed in the forest management plan.
12.31EFFECTIVE DATE.This section is effective for certifications and applications
12.32due in 2013 and thereafter.
12.33 Sec. 3. Minnesota Statutes 2012, section 290C.03, is amended to read:
13.1290C.03 ELIGIBILITY REQUIREMENTS.
13.2(a) Land may be enrolled in the sustainable forest incentive program under this
13.3chapter if all of the following conditions are met:
13.4(1) the land consists of at least 20 contiguous acres and at least 50 percent of the
13.5land must meet the definition of forest land in section88.01, subdivision 7 , during the
13.6enrollment;
13.7(2) a forest management plan for the land must be prepared by an approved plan
13.8writer and implemented during the period in which the land is enrolled;
13.9(3) timber harvesting and forest management guidelines must be used in conjunction
13.10with any timber harvesting or forest management activities conducted on the land during
13.11the period in which the land is enrolled;
13.12(4) the land must be enrolled for a minimum of eight years;
13.13(5) there are no delinquent property taxes on the land; and
13.14(6) claimants enrolling more than 1,920 acres in the sustainable forest incentive
13.15program must allow year-round, nonmotorized access to fish and wildlife resources and
13.16motorized access on established and maintained roads and trails, unless the road or trail is
13.17temporarily closed for safety, natural resource, or road damage reasons on enrolled land
13.18except within one-fourth mile of a permanent dwelling or during periods of high fire
13.19hazard as determined by the commissioner of natural resources.
13.20(b) Claimants required to allow access under paragraph (a), clause (6), do not by
13.21that action:
13.22(1) extend any assurance that the land is safe for any purpose;
13.23(2) confer upon the person the legal status of an invitee or licensee to whom a duty
13.24of care is owed; or
13.25(3) assume responsibility for or incur liability for any injury to the person or property
13.26caused by an act or omission of the person.
13.27EFFECTIVE DATE.This section is effective for calculations made in 2013 and
13.28thereafter.
13.29 Sec. 4. Minnesota Statutes 2012, section 290C.055, is amended to read:
13.30290C.055 LENGTH OF COVENANT.
13.31(a) The covenant remains in effect for a minimum of eight years. If land is removed
13.32from the program before it has been enrolled for four years, the covenant remains in
13.33effect for eight years from the date recorded.
14.1(b) If land that has been enrolled for four years or more is removed from the program
14.2for any reason, there is a waiting period before the covenant terminates. The covenant
14.3terminates on January 1 of the fifth calendar year that begins after the date that:
14.4(1) the commissioner receives notification from the claimant that the claimant wishes
14.5to remove the land from the program under section290C.10 ; or
14.6(2) the date that the land is removed from the program under section290C.11 .
14.7(c) Notwithstanding the other provisions of this section, the covenant is terminated:
14.8(1) at the same time that the land is removed from the program due to acquisition of
14.9title or possession for a public purpose under section290C.10 ; or
14.10(2) at the request of the claimant after a reduction in payments due to changes in the
14.11payment formula under section 290C.07.
14.12EFFECTIVE DATE.This section is effective for calculations made in 2013 and
14.13thereafter.
14.14 Sec. 5. Minnesota Statutes 2012, section 290C.07, is amended to read:
14.15290C.07 CALCULATION OF INCENTIVE PAYMENT.
14.16(a) An approved claimant under the sustainable forest incentive program is eligible
14.17to receive an annual payment. The payment shall equal $7 per acre for each acre enrolled
14.18in the sustainable forest incentive program.
14.19(b) The annual payment for each Social Security number or state or federal business
14.20tax identification number must not exceed $100,000.
14.21EFFECTIVE DATE.This section is effective for calculations made in 2013 and
14.22thereafter.
14.23 Sec. 6. [423A.022] POLICE AND FIREFIGHTER RETIREMENT
14.24SUPPLEMENTAL STATE AID.
14.25 Subdivision 1. Supplemental state aid. Annually, the commissioner of revenue
14.26shall allocate police and firefighter retirement supplemental state aid appropriated under
14.27subdivision 6 as provided in subdivision 2 and paid as provided in subdivision 4.
14.28 Subd. 2. Allocation. Of the total amount appropriated as supplemental state aid:
14.29 (1) 58.065 percent must be paid to the executive director of the Public Employees
14.30Retirement Association for deposit in the public employees police and fire retirement fund
14.31established by section 353.65, subdivision 1;
14.32 (2) 35.484 percent must be paid to municipalities other than municipalities solely
14.33employing firefighters with retirement coverage provided by the public employees police
15.1and fire retirement plan which qualified to receive fire state aid in that calendar year,
15.2allocated in proportion to the most recent amount of fire state aid paid under section
15.369.021, subdivision 7, for the municipality bears to the most recent total fire state aid
15.4for all municipalities other than the municipalities solely employing firefighters with
15.5retirement coverage provided by the public employees police and fire retirement plan
15.6paid under section 69.021, subdivision 7, with the allocated amount for fire departments
15.7participating in the voluntary statewide lump-sum volunteer firefighter retirement plan
15.8paid to the executive director of the Public Employees Retirement Association for deposit
15.9in the fund established by section 353G.02, subdivision 3, and credited to the respective
15.10account and with the balance paid to the treasurer of each municipality for transmittal
15.11within 30 days of receipt to the treasurer of the applicable volunteer firefighter relief
15.12association for deposit in its special fund; and
15.13 (3) 6.452 percent must be paid to the executive director of the Minnesota State
15.14Retirement System for deposit in the state patrol retirement fund.
15.15 Subd. 3. Reporting; definitions. (a) On or before September 1, annually, the
15.16executive director of the Public Employees Retirement Association shall report to the
15.17commissioner of revenue the following:
15.18 (1) the municipalities which employ firefighters with retirement coverage by the
15.19public employees police and fire retirement plan;
15.20 (2) the number of firefighters with public employees police and fire retirement plan
15.21coverage employed by each municipality;
15.22 (3) the fire departments covered by the voluntary statewide lump-sum volunteer
15.23firefighter retirement plan; and
15.24 (4) any other information requested by the commissioner to administer the police
15.25and firefighter retirement supplemental state aid program.
15.26 (b) For this subdivision, (i) the number of firefighters employed by a municipality
15.27who have public employees police and fire retirement plan coverage means the number
15.28of firefighters with public employees police and fire retirement plan coverage that were
15.29employed by the municipality for not less than 30 hours per week for a minimum of six
15.30months prior to December 31 preceding the date of the payment under this section and, if
15.31the person was employed for less than the full year, prorated to the number of full months
15.32employed; and (ii) the number of active police officers certified for police state aid receipt
15.33under section 69.011, subdivisions 2 and 2b, means, for each municipality, the number of
15.34police officers meeting the definition of peace officer in section 69.011, subdivision 1,
15.35counted as provided and limited by section 69.011, subdivisions 2 and 2b.
16.1 Subd. 4. Payments; conditions prerequisite. (a) The payments under this section
16.2must be made on October 1 each year, with interest at one percent for each month, or
16.3portion of a month, that the amount remains unpaid after October 1. Any necessary
16.4adjustments must be made to subsequent payments.
16.5 (b) The provisions of sections 69.011 to 69.051 that prevent municipalities and relief
16.6associations from being eligible for, or receiving fire state aid under sections 69.011 to
16.769.051 until the applicable financial reporting requirements have been complied with,
16.8apply to the amounts payable to municipalities and relief associations under this section.
16.9 Subd. 5. Aid termination. The aid program under this section ends on the
16.10December 1 next following the actuarial valuation date on which the assets of the
16.11retirement plan on a market value basis equals or exceeds 90 percent of the total
16.12actuarial accrued liabilities of the retirement plan as disclosed in an actuarial valuation
16.13prepared under section 356.215 and the Standards for Actuarial Work promulgated by the
16.14Legislative Commission on Pensions and Retirement, for the State Patrol retirement plan
16.15or the public employees police and fire retirement plan, whichever occurs last.
16.16 Subd. 6. Appropriation. $15,500,000 is appropriated annually to the commissioner
16.17of revenue for this aid program.
16.18EFFECTIVE DATE.This section is effective beginning in the fiscal year beginning
16.19July 1, 2013.
16.20 Sec. 7. Minnesota Statutes 2012, section 477A.011, subdivision 30, is amended to read:
16.21 Subd. 30. Pre-1940 housing percentage. (a) Except as provided in paragraph (b),
16.22"pre-1940 housing percentage" for a city is 100 times the most recentfederal census count
16.23by the United States Bureau of the Census of all housing units in the city built before
16.241940, divided by the total number of all housing units in the city. Housing units includes
16.25both occupied and vacant housing units as defined by the federal census. For aids payable
16.26in 2014, "pre-1940 housing percentage" shall be based on 2010 housing data.
16.27 (b) For the city of East Grand Forks only, "pre-1940 housing percentage" is equal
16.28to 100 times the 1990 federal census count of all housing units in the city built before
16.291940, divided by the most recent count by the United States Bureau of the Census of all
16.30housing units in the city. Housing units includes both occupied and vacant housing units
16.31as defined by the federal census.
16.32EFFECTIVE DATE.This section is effective for aids payable in calendar year
16.332014 and thereafter.
17.1 Sec. 8. Minnesota Statutes 2012, section 477A.011, is amended by adding a
17.2subdivision to read:
17.3 Subd. 30a. Percent of housing built between 1940 and 1970. "Percent of housing
17.4built between 1940 and 1970" is equal to 100 times the most recent count by the United
17.5States Bureau of the Census of all housing units in the city built after 1939 but before
17.61970, divided by the total number of all housing units in the city. Housing units includes
17.7both occupied and vacant housing units as defined by the federal census. For aids payable
17.8in 2014, "percent of housing built between 1940 and 1970" shall be based on 2010
17.9housing data.
17.10EFFECTIVE DATE.This section is effective for aids payable in calendar year
17.112014 and thereafter.
17.12 Sec. 9. Minnesota Statutes 2012, section 477A.011, subdivision 34, is amended to read:
17.13 Subd. 34. City revenue need. (a) For a city with a population equal to or greater
17.14than2,500 10,000, "city revenue need" is the greater of 285 or 1.15 times the sum of (1)
17.155.0734098 4.59 times the pre-1940 housing percentage; plus (2) 19.141678 times the
17.16population decline percentage 0.622 times the percent of housing built between 1940 and
17.171970; plus (3)2504.06334 times the road accidents factor 169.415 times the jobs per
17.18capita; plus (4)355.0547; minus (5) the metropolitan area factor; minus (6) 49.10638
17.19times the household size the sparsity adjustment; plus (5) 307.664.
17.20 (b) For a city with a population equal to or greater than 2,500 and less than 10,000,
17.21"city revenue need" is 1.15 times the sum of (1) 572.62; plus (2) 5.026 times the pre-1940
17.22housing percentage; minus (3) 53.768 times household size; plus (4) 14.022 times peak
17.23population decline.
17.24(b) (c) For a city with a population less than 2,500, "city revenue need" is the sum of
17.25(1) 2.387 times the pre-1940 housing percentage; plus (2) 2.67591 times the commercial
17.26industrial percentage; plus (3) 3.16042 times the population decline percentage; plus (4)
17.271.206 times the transformed population; minus (5) 62.772 410 plus 0.367 times the city's
17.28population over 100. The city revenue need under this paragraph shall not exceed 630.
17.29(c) (d) For a city with a population of at least 2,500 or more and a population in one
17.30of the most recently available five years that was less than 2,500, "city revenue need"
17.31is the sum of (1) its city revenue need calculated under paragraph (a) multiplied by its
17.32transition factor; plus (2) its city revenue need calculated under the formula in paragraph
17.33(b) multiplied by the difference between one and its transition factor. For purposes of this
17.34paragraph, a city's "transition factor" is equal to 0.2 multiplied by the number of years that
17.35the city's population estimate has been 2,500 or more. This provision only applies for aids
18.1payable in calendar years 2006 to 2008 to cities with a 2002 population of less than 2,500.
18.2It applies to any city for aids payable in 2009 and thereafter but less than 3,000, the "city
18.3revenue need" equals (1) the transition factor times the city's revenue need calculated in
18.4paragraph (b) plus (2) 630 times the difference between one and the transition factor. For
18.5a city with a population of at least 10,000 but less than 10,500, the "city revenue need"
18.6equals (1) the transition factor times the city's revenue need calculated in paragraph (a)
18.7plus (2) the city's revenue need calculated under the formula in paragraph (b) times the
18.8difference between one and the transition factor. For purposes of this paragraph "transition
18.9factor" is 0.2 percent times the amount that the city's population exceeds the minimum
18.10threshold in either of the first two sentences.
18.11(d) (e) The city revenue need cannot be less than zero.
18.12(e) (f) For calendar year 2005 2015 and subsequent years, the city revenue need for
18.13a city, as determined in paragraphs (a) to(d) (e), is multiplied by the ratio of the annual
18.14implicit price deflator for government consumption expenditures and gross investment for
18.15state and local governments as prepared by the United States Department of Commerce,
18.16for the most recently available year to the2003 2013 implicit price deflator for state
18.17and local government purchases.
18.18EFFECTIVE DATE.This section is effective for aids payable in calendar year
18.192014 and thereafter.
18.20 Sec. 10. Minnesota Statutes 2012, section 477A.011, subdivision 42, is amended to read:
18.21 Subd. 42.City jobs base Jobs per capita. (a) "City jobs base" for a city with a
18.22population of 5,000 or more is equal to the product of (1) $25.20, (2) the number of
18.23jobs per capita in the city, and (3) its population. For cities with a population less than
18.245,000, the city jobs base is equal to zero. For a city receiving aid under
subdivision 36,
18.25paragraph (k), its city jobs base is reduced by the lesser of 36 percent of the amount of
18.26aid received under that paragraph or $1,000,000. No city's city jobs base may exceed
18.27$4,725,000 under this paragraph.
18.28(b) For calendar year 2010 and subsequent years, the city jobs base for a city, as
18.29determined in paragraph (a), is multiplied by the ratio of the appropriation under section
18.30477A.03, subdivision 2a, for the year in which the aid is paid to the appropriation under
18.31that section for aids payable in 2009.
18.32(c) For purposes of this subdivision, "Jobs per capita in the city" means (1) the
18.33average annual number of employees in the city based on the data from the Quarterly
18.34Census of Employment and Wages, as reported by the Department of Employment and
18.35Economic Development, for the most recent calendar year availableas of May 1, 2008
19.1 November 1 of every odd-numbered year, divided by (2) the city's population for the
19.2same calendar year as the employment data. The commissioner of the Department of
19.3Employment and Economic Development shall certify to the city the average annual
19.4number of employees for each city byJune 1, 2008 January 1, of every even-numbered
19.5year beginning with January 1, 2014. A city may challenge an estimate under this
19.6paragraph by filing its specific objection, including the names of employers that it feels
19.7may have misreported data, in writing with the commissioner byJune 20, 2008 December
19.81 of every odd-numbered year. The commissioner shall make every reasonable effort
19.9to address the specific objection and adjust the data as necessary. The commissioner
19.10shall certify the estimates of the annual employment to the commissioner of revenue by
19.11July 15, 2008 January 1 of all even-numbered years, including any estimates still under
19.12objection. For aids payable in 2014, "jobs per capita" shall be based on the annual number
19.13of employees and population for calendar year 2010 without additional review.
19.14EFFECTIVE DATE.This section is effective for aids payable in calendar year
19.152014 and thereafter.
19.16 Sec. 11. Minnesota Statutes 2012, section 477A.011, is amended by adding a
19.17subdivision to read:
19.18 Subd. 44. Peak population decline. "Peak population decline" is equal to 100
19.19times the difference between one and the ratio of the city's current population, to the
19.20highest city population reported in a federal census from the 1970 census or later. "Peak
19.21population decline" shall not be less than zero.
19.22EFFECTIVE DATE.This section is effective for aids payable in calendar year
19.232014 and thereafter.
19.24 Sec. 12. Minnesota Statutes 2012, section 477A.011, is amended by adding a
19.25subdivision to read:
19.26 Subd. 45. Sparsity adjustment. For a city with a population of 10,000 or more, the
19.27sparsity adjustment is 100 for any city with an average population density less than 150
19.28per square mile, according to the most recent federal census, and the sparsity adjustment is
19.29zero for all other cities.
19.30EFFECTIVE DATE.This section is effective for aids payable in calendar year
19.312014 and thereafter.
19.32 Sec. 13. Minnesota Statutes 2012, section 477A.013, subdivision 1, is amended to read:
20.1 Subdivision 1. Towns.In 2002, no town is eligible for a distribution under this
20.2subdivision. In 2014 and thereafter, each town is eligible for a distribution under this
20.3subdivision equal to the product of (i) its agricultural property factor, (ii) its town area
20.4factor, (iii) its population factor, and (iv) 0.0045. As used in this subdivision, the following
20.5terms have the meanings given them:
20.6(1) "agricultural property factor" means the ratio of the adjusted net tax capacity of
20.7agricultural property located in a town, divided by the adjusted net tax capacity of all other
20.8property located in the town. The agricultural property factor cannot exceed eight;
20.9(2) "agricultural property" means property classified under section 273.13, as
20.10homestead and nonhomestead agricultural property, rural vacant land, and noncommercial
20.11seasonal recreational property;
20.12(3) "town area factor" means the most recent estimate of total acreage, not to exceed
20.1350,000 acres, located in the township available as of July 1 in the aid calculation year,
20.14estimated or established by:
20.15(i) the United States Bureau of the Census;
20.16(ii) the State Land Management Information Center; or
20.17(iii) the secretary of state; and
20.18(4) "population factor" means the square root of the towns' population.
20.19If the sum of the aids payable to all towns under this subdivision exceeds the limit
20.20under section 477A.03, subdivision 2c, the distribution to each town must be reduced
20.21proportionately so that the total amount of aids distributed under this section does not
20.22exceed the limit in section 477A.03, subdivision 2c.
20.23EFFECTIVE DATE.This section is effective for aids payable in calendar year
20.242014 and thereafter.
20.25 Sec. 14. Minnesota Statutes 2012, section 477A.013, subdivision 8, is amended to read:
20.26 Subd. 8. City formula aid. (a) For aids payable in 2014 only, the formula aid for a
20.27city is equal to the sum of (1) its 2013 certified aid and (2) the product of (i) the difference
20.28between its unmet need and its 2013 certified aid and (ii) the aid gap percentage.
20.29 (b) For aids payable in 2015 and thereafter, the formula aid for a city is equal to
20.30the sum of (1) itscity jobs base, (2) its small city aid base, and (3) the need increase
20.31percentage multiplied by the average of its unmet need for the most recently available two
20.32years formula aid in the previous year and (2) the product of (i) the difference between
20.33its unmet need and its certified aid in the previous year under subdivision 9, and (ii)
20.34the aid gap percentage.
21.1No city may have a formula aid amount less than zero. Theneed increase aid gap
21.2 percentage must be the same for all cities.
21.3 The applicableneed increase aid gap percentage must be calculated by the
21.4Department of Revenue so that the total of the aid under subdivision 9 equals the total
21.5amount available for aid under section477A.03 . Data used in calculating aids to cities
21.6under sections477A.011 to
477A.013 shall be the most recently available data as of
21.7January 1 in the year in which the aid is calculatedexcept that the data used to compute "net
21.8levy" in subdivision 9 is the data most recently available at the time of the aid computation.
21.9EFFECTIVE DATE.This section is effective for aids payable in calendar year
21.102014 and thereafter.
21.11 Sec. 15. Minnesota Statutes 2012, section 477A.013, subdivision 9, is amended to read:
21.12 Subd. 9. City aid distribution. (a) In calendar year2013 2014 and thereafter, each
21.13city shall receive an aid distribution equal to the sum of (1) the city formula aid under
21.14subdivision 8, and (2) itscity aid base aid adjustment under subdivision 13.
21.15(b) For aids payable in 2013 and 2014 only, the total aid in the previous year for
21.16any city shall mean the amount of aid it was certified to receive for aids payable in 2012
21.17under this section. For aids payable in 2015 and thereafter, the total aid in the previous
21.18year for any city means the amount of aid it was certified to receive under this section in
21.19the previous payable year.
21.20(c) For aids payable in 2010 and thereafter, the total aid for any city shall not exceed
21.21the sum of (1) ten percent of the city's net levy for the year prior to the aid distribution
21.22plus (2) its total aid in the previous year. For aids payable in 2009 and thereafter, the total
21.23aid for any city with a population of 2,500 or more may not be less than its total aid under
21.24this section in the previous year minus the lesser of $10 multiplied by its population, or ten
21.25percent of its net levy in the year prior to the aid distribution.
21.26(d) (b) For aids payable in 2014 only, the total aid for a city may not be less than the
21.27amount it was certified to receive in 2013. For aids payable in2010 2015 and thereafter,
21.28the total aid for a citywith a population less than 2,500 must not be less than the amount
21.29it was certified to receive in the previous year minus the lesser of $10 multiplied by its
21.30population, or five percent ofits 2003 certified aid amount. For aids payable in 2009 only,
21.31the total aid for a city with a population less than 2,500 must not be less than what it
21.32received under this section in the previous year unless its total aid in calendar year 2008
21.33was aid under section
477A.011, subdivision 36, paragraph (s), in which case its minimum
21.34aid is zero its net levy in the year prior to the aid distribution.
22.1(e) A city's aid loss under this section may not exceed $300,000 in any year in
22.2which the total city aid appropriation under section
477A.03, subdivision 2a, is equal or
22.3greater than the appropriation under that subdivision in the previous year, unless the
22.4city has an adjustment in its city net tax capacity under the process described in section
22.5469.174, subdivision 28.
22.6(f) If a city's net tax capacity used in calculating aid under this section has decreased
22.7in any year by more than 25 percent from its net tax capacity in the previous year due to
22.8property becoming tax-exempt Indian land, the city's maximum allowed aid increase
22.9under paragraph (c) shall be increased by an amount equal to (1) the city's tax rate in the
22.10year of the aid calculation, multiplied by (2) the amount of its net tax capacity decrease
22.11resulting from the property becoming tax exempt.
22.12EFFECTIVE DATE.This section is effective for aids payable in calendar year
22.132014 and thereafter.
22.14 Sec. 16. Minnesota Statutes 2012, section 477A.013, is amended by adding a
22.15subdivision to read:
22.16 Subd. 13. Certified aid adjustments. (a) A city that received an aid base increase
22.17under Minnesota Statutes 2012, section 477A.011, subdivision 36, paragraph (e), shall
22.18have its total aid under subdivision 9 increased by an amount equal to $150,000 for aids
22.19payable in 2014 through 2018.
22.20(b) A city that received an aid base increase under section 477A.011, subdivision 36,
22.21paragraph (r), shall have its total aid under subdivision 9 increased by an amount equal to
22.22$160,000 for aids payable in 2014 and thereafter.
22.23(c) A city that received a temporary aid increase under Minnesota Statutes 2012,
22.24section 477A.011, subdivision 36, paragraph (o), shall have its total aid under subdivision
22.259 increased by an amount equal to $1,000,000 for aids payable in 2014 only.
22.26 Sec. 17. Minnesota Statutes 2012, section 477A.015, is amended to read:
22.27477A.015 PAYMENT DATES.
22.28The commissioner of revenue shall make the payments of local government aid to
22.29affected taxing authorities in two installments on July 20 and December 26 annually.
22.30When the commissioner of public safety determines that a local government has
22.31suffered financial hardship due to a natural disaster, the commissioner of public safety
22.32shall notify the commissioner of revenue, who shall make payments of aids under sections
23.1477A.011
to
477A.014 , which are otherwise due on December 26, as soon as is practical
23.2after the determination is made but not before July 20.
23.3The commissioner may pay all or part of the payments of aids under sections
23.4477A.011
to
477A.014 , which are due on December 26 at any time after August 15 if a
23.5local government requests such payment as being necessary for meeting its cash flow
23.6needs. For aids payable in 2013 only, a city that is located in an area deemed a disaster
23.7area during the month of April 2013, as defined in section 12A.02, subdivision 5, shall
23.8receive its December 26, 2013 payment with its July 20, 2013 payment.
23.9EFFECTIVE DATE.This section is effective for aids payable in calendar year
23.102013 and thereafter.
23.11 Sec. 18. Minnesota Statutes 2012, section 477A.03, subdivision 2a, is amended to read:
23.12 Subd. 2a. Cities. For aids payable in2013 2014 and thereafter, the total aid paid
23.13under section477A.013, subdivision 9 , is $426,438,012 $507,598,012. The total aid paid
23.14under section 477A.013, subdivision 9, is $509,098,012 for aids payable in 2015. For aids
23.15payable in 2016 and thereafter, the total aid paid under section 477A.013, subdivision
23.169, is $511,598,012.
23.17EFFECTIVE DATE.This section is effective for aids payable in calendar year
23.182014 and thereafter.
23.19 Sec. 19. Minnesota Statutes 2012, section 477A.03, subdivision 2b, is amended to read:
23.20 Subd. 2b. Counties. (a) For aids payable in2013 2014 and thereafter, the total aid
23.21payable under section477A.0124, subdivision 3 , is $80,795,000 $100,795,000. Each
23.22calendar year, $500,000 of this appropriation shall be retained by the commissioner
23.23of revenue to make reimbursements to the commissioner of management and budget
23.24for payments made under section611.27 . For calendar year 2004, the amount shall
23.25be in addition to the payments authorized under section
477A.0124, subdivision 1.
23.26For calendar year 2005 and subsequent years, the amount shall be deducted from the
23.27appropriation under this paragraph. The reimbursements shall be to defray the additional
23.28costs associated with court-ordered counsel under section611.27 . Any retained amounts
23.29not used for reimbursement in a year shall be included in the next distribution of county
23.30need aid that is certified to the county auditors for the purpose of property tax reduction
23.31for the next taxes payable year.
23.32 (b) For aids payable in2013 2014 and thereafter, the total aid under section
23.33477A.0124, subdivision 4
, is $84,909,575 $104,909,575. The commissioner of
24.1management and budget shall bill the commissioner of revenue shall transfer to the
24.2commissioner of management and budget $207,000 annually for the cost of preparation
24.3of local impact notes as required by section3.987 , not to exceed $207,000 in fiscal year
24.42004 and thereafter and other local government activities. The commissioner of education
24.5shall bill the commissioner of revenue for the cost of preparation of local impact notes for
24.6school districts as required by section
3.987, not to exceed $7,000 in fiscal year 2004 and
24.7thereafter shall transfer to the commissioner of education $7,000 annually for the cost of
24.8preparation of local impact notes for school districts as required by section 3.987. The
24.9commissioner of revenue shall deduct the amountsbilled transferred under this paragraph
24.10from the appropriation under this paragraph. The amountsdeducted transferred are
24.11appropriated to the commissioner of management and budget and the commissioner of
24.12educationfor the preparation of local impact notes respectively.
24.13EFFECTIVE DATE.This section is effective for aid payable in 2014 and thereafter.
24.14 Sec. 20. Minnesota Statutes 2012, section 477A.03, is amended by adding a
24.15subdivision to read:
24.16 Subd. 2c. Towns. For aids payable in 2014, the total aids paid under section
24.17477A.013, subdivision 1, is limited to $10,000,000. For aids payable in 2015 and
24.18thereafter, the total aids paid under section 477A.013, subdivision 1, is limited to the
24.19amount certified to be paid in the previous year.
24.20EFFECTIVE DATE.This section is effective for aids payable in calendar year
24.212014 and thereafter.
24.22 Sec. 21. [477A.085] DEBT SERVICE AID; CITY OF MINNEAPOLIS.
24.23On or before November 1, 2016, and the first day of each November thereafter, the
24.24commissioner shall pay to the city of Minneapolis an amount equal to 40 percent of the
24.25city's otherwise required levy to pay its general obligation library referendum bonds for
24.26the following calendar year. The levy excludes any amount to pay bonds, other than
24.27refunding bonds, issued after May 1, 2013. An amount sufficient to pay the aid under this
24.28section is appropriated from the general fund to the commissioner of revenue.
24.29 Sec. 22. [477A.10] NATURAL RESOURCES LAND PAYMENTS IN LIEU;
24.30PURPOSE.
24.31The purposes of sections 477A.11 to 477A.14 are:
25.1(1) to compensate local units of government for the loss of tax base from state
25.2ownership of land and the need to provide services for state land;
25.3(2) to address the disproportionate impact of state land ownership on local units of
25.4government with a large proportion of state land; and
25.5(3) to address the need to manage state lands held in trust for the local taxing districts.
25.6 Sec. 23. Minnesota Statutes 2012, section 477A.11, subdivision 3, is amended to read:
25.7 Subd. 3. Acquired natural resources land. "Acquired natural resources land"
25.8means:
25.9(1)any land, other than wildlife management land, presently administered by the
25.10commissioner in which the state acquired by purchase, condemnation, or gift, a fee title
25.11interest in lands which were previously privately owned; and
25.12(2) lands acquired by the state under chapter 84A that are designated as state parks,
25.13state recreation areas, scientific and natural areas, or wildlife management areas.
25.14EFFECTIVE DATE.This section is effective for aids payable in calendar year
25.152013 and thereafter.
25.16 Sec. 24. Minnesota Statutes 2012, section 477A.11, subdivision 4, is amended to read:
25.17 Subd. 4. Other natural resources land. "Other natural resources land" means
25.18anyother land, other than acquired natural resource land or wildlife management land,
25.19 presently owned in fee title by the state and administered by the commissioner, or
25.20any tax-forfeited land, other than platted lots within a city or those lands described
25.21under subdivision 3, clause (2), which is owned by the state and administered by the
25.22commissioner or by the county in which it is located.
25.23EFFECTIVE DATE.This section is effective for aids payable in calendar year
25.242013 and thereafter.
25.25 Sec. 25. Minnesota Statutes 2012, section 477A.11, is amended by adding a
25.26subdivision to read:
25.27 Subd. 6. Military game refuge. "Military game refuge" means land owned in
25.28fee by another state agency for military purposes and designated as a state game refuge
25.29under section 97A.085.
25.30EFFECTIVE DATE.This section is effective for aids payable in calendar year
25.312013 and thereafter.
26.1 Sec. 26. Minnesota Statutes 2012, section 477A.11, is amended by adding a
26.2subdivision to read:
26.3 Subd. 7. Transportation wetland. "Transportation wetland" means land
26.4administered by the Department of Transportation in which the state acquired, by purchase
26.5from a private owner, a fee title interest in over 500 acres of land within a county to
26.6replace wetland losses from transportation projects.
26.7EFFECTIVE DATE.This section is effective for aids payable in calendar year
26.82013 and thereafter.
26.9 Sec. 27. Minnesota Statutes 2012, section 477A.11, is amended by adding a
26.10subdivision to read:
26.11 Subd. 8. Wildlife management land. "Wildlife management land" means land
26.12administered by the commissioner in which the state acquired, from a private owner by
26.13purchase, condemnation, or gift, a fee interest under the authority granted in chapter 94 or
26.1497A for wildlife management purposes and actually used as a wildlife management area.
26.15EFFECTIVE DATE.This section is effective for aids payable in calendar year
26.162013 and thereafter.
26.17 Sec. 28. Minnesota Statutes 2012, section 477A.12, subdivision 1, is amended to read:
26.18 Subdivision 1. Types of land; payments.(a) As an offset for expenses incurred
26.19by counties and towns in support of natural resources lands, The following amounts are
26.20annually appropriated to the commissioner of natural resources from the general fund for
26.21transfer to the commissioner of revenue. The commissioner of revenue shall pay the
26.22transferred funds to counties as required by sections477A.11 to
477A.14 . The amounts,
26.23based on the acreage as of July 1 of each year prior to the payment year, are:
26.24(1)for acquired natural resources land, $5.133 multiplied by the total number of acres
26.25of acquired natural resources land or, at the county's option three-fourths of one percent of
26.26the appraised value of all acquired natural resources land in the county, whichever is greater;
26.27(2) $5.133, multiplied by the total number of acres of transportation wetland or, at
26.28the county's option, three-fourths of one percent of the appraised value of all acquired
26.29natural resources land in the county, whichever is greater;
26.30(3) three-fourths of one percent of the appraised value of all wildlife management
26.31land in the county;
26.32(4) 50 percent of the dollar amount as determined under clause (1), multiplied by
26.33the number of acres of military refuge land in the county;
27.1$1.283 (5) $1.50, multiplied by the number of acres of county-administered other
27.2natural resources land in the county;
27.3(3) $1.283 (6) $5.133, multiplied by the total number of acres of land utilization
27.4project land in the county;and
27.5(4) 64.2 cents (7) $1.50, multiplied by the number of acres of
27.6commissioner-administered other natural resources landlocated in each the county as of
27.7July 1 of each year prior to the payment year.; and
27.8 (8) without regard to acreage, $300,000 for local assessments under section 84A.55,
27.9subdivision 9.
27.10(b) The amount determined under paragraph (a), clause (1), is payable for land
27.11that is acquired from a private owner and owned by the Department of Transportation
27.12for the purpose of replacing wetland losses caused by transportation projects, but only
27.13if the county contains more than 500 acres of such land at the time the certification is
27.14made under subdivision 2.
27.15EFFECTIVE DATE.This section is effective for aids payable in calendar year
27.162013 and thereafter.
27.17 Sec. 29. Minnesota Statutes 2012, section 477A.12, subdivision 2, is amended to read:
27.18 Subd. 2. Procedure.Lands for which payments in lieu are made pursuant to
27.19section
97A.061, subdivision 3, and Laws 1973, chapter 567, shall not be eligible for
27.20payments under this section. Each county auditor shall certify to the Department of
27.21Natural Resources during July of each year prior to the payment year the number of acres
27.22of county-administered other natural resources land within the county. The Department of
27.23Natural resources may, in addition to the certification of acreage, require descriptive lists
27.24of land so certified. The commissioner of natural resources shall determine and certify to
27.25the commissioner of revenue by March 1 of the payment year:
27.26(1) the number of acres and most recent appraised value of acquired natural
27.27resources land, wildlife management land, and military refuge land within each county;
27.28(2) the number of acres of commissioner-administered natural resources land within
27.29each county;
27.30(3) the number of acres of county-administered other natural resources land within
27.31each county, based on the reports filed by each county auditor with the commissioner
27.32of natural resources; and
27.33(4) the number of acres of land utilization project land within each county.
27.34The commissioner of transportation shall determine and certify to the commissioner
27.35of revenue by March 1 of the payment year the number of acres ofland transportation
28.1wetland and the appraised value of the landdescribed in subdivision 1, paragraph (b), but
28.2only if it exceeds 500 acres in a county.
28.3The commissioner of revenue shall determine the distributions provided for in this
28.4section using the number of acres and appraised values certified by the commissioner of
28.5natural resources and the commissioner of transportation by March 1 of the payment year.
28.6EFFECTIVE DATE.This section is effective for aids payable in calendar year
28.72013 and thereafter.
28.8 Sec. 30. Minnesota Statutes 2012, section 477A.12, subdivision 3, is amended to read:
28.9 Subd. 3. Determination of appraised value. For the purposes of this section, the
28.10appraised value of acquired natural resources land is the purchase pricefor the first five
28.11years after acquisition until the next six-year appraisal required under this subdivision.
28.12The appraised value of acquired natural resources land received as a donation is the value
28.13determined for the commissioner of natural resources by a licensed appraiser, or the
28.14county assessor's estimated market value if no appraisal is done. The appraised value must
28.15be determined by the county assessor everyfive six years after the land is acquired. All
28.16reappraisals shall be done in the same year as county assessors are required to assess
28.17exempt land under section 273.18.
28.18EFFECTIVE DATE.This section is effective for aids payable in calendar year
28.192013 and thereafter.
28.20 Sec. 31. Minnesota Statutes 2012, section 477A.14, subdivision 1, is amended to read:
28.21 Subdivision 1. General distribution. Except as provided insubdivision 2 or in
28.22section
97A.061, subdivision 5
28.23the county shall be deposited in the county general revenue fund to be used to provide
28.24property tax levy reduction. The remainder shall be distributed by the county in the
28.25following priority:
28.26(a) 64.2 cents, for each acre of county-administered other natural resources land shall
28.27be deposited in a resource development fund to be created within the county treasury for
28.28use in resource development, forest management, game and fish habitat improvement, and
28.29recreational development and maintenance of county-administered other natural resources
28.30land. Any county receiving less than $5,000 annually for the resource development fund
28.31may elect to deposit that amount in the county general revenue fund;
28.32(b) from the funds remaining, within 30 days of receipt of the payment to the county,
28.33the county treasurer shall pay each organized township51.3 cents for each acre of acquired
29.1natural resources land and each acre of land described in section
477A.12, subdivision 1,
29.2paragraph (b), and 12.8 cents for each acre of other natural resources land and each acre of
29.3land utilization project land located within its boundaries ten percent of the amount received
29.4under section 477A.12, subdivision 1, clauses (1), (2), and (5) to (7). Payments for natural
29.5resources lands not located in an organized township shall be deposited in the county
29.6general revenue fund. Payments to counties and townships pursuant to this paragraph shall
29.7be used to provide property tax levy reduction, except that of the payments for natural
29.8resources lands not located in an organized township, the county may allocate the amount
29.9determined to be necessary for maintenance of roads in unorganized townships. Provided
29.10that, if the total payment to the county pursuant to section477A.12 is not sufficient to fully
29.11fund the distribution provided for in this clause, the amount available shall be distributed
29.12to each township and the county general revenue fund on a pro rata basis; and
29.13(c) any remaining funds shall be deposited in the county general revenue fund.
29.14Provided that, if the distribution to the county general revenue fund exceeds $35,000, the
29.15excess shall be used to provide property tax levy reduction.
29.16EFFECTIVE DATE.This section is effective for aids payable in calendar year
29.172013 and thereafter.
29.18 Sec. 32. Minnesota Statutes 2012, section 477A.14, is amended by adding a
29.19subdivision to read:
29.20 Subd. 3. Distribution for wildlife management lands and military refuge lands.
29.21(a) The county treasurer shall allocate the payment for wildlife management land and
29.22military game refuge land among the county, towns, and school districts on the same basis
29.23as if the payments were taxes on the land received in the year. Payment of a town's or a
29.24school district's allocation must be made by the county treasurer to the town or school
29.25district within 30 days of receipt of the payment to the county. The county's share of the
29.26payment shall be deposited in the county general revenue fund.
29.27(b) The county treasurer of a county with a population over 39,000, but less than
29.2842,000, in the 1950 federal census shall allocate the payment only among the towns and
29.29school districts on the same basis as if the payments were taxes on the lands received
29.30in the current year.
29.31(c) If a town received a payment in calendar year 2006 or thereafter under this
29.32subdivision, and subsequently incorporated as a city, the city shall continue to receive any
29.33future year's allocations of wildlife land payments that would have been made to the town
29.34had it not incorporated, provided that the payments shall terminate if the governing body
29.35of the city passes an ordinance that prohibits hunting within the boundaries of the city.
30.1EFFECTIVE DATE.This section is effective for aids payable in calendar year
30.22013 and thereafter.
30.3 Sec. 33. Laws 2006, chapter 259, article 11, section 3, as amended by Laws 2008,
30.4chapter 154, article 1, section 4, is amended to read:
30.5 Sec. 3. MAHNOMEN COUNTY; COUNTY, CITY, SCHOOL DISTRICT,
30.6PROPERTY TAX REIMBURSEMENT.
30.7 Subdivision 1. Aid appropriation.$600,000 $1,200,000 is appropriated annually
30.8from the general fund to the commissioner of revenue to be used to make payments to
30.9compensate for the loss of property tax revenue related to the trust conversion application
30.10of the Shooting Star Casino. The commissioner shall pay the county of Mahnomen,
30.11$450,000 $900,000; the city of Mahnomen, $80,000 $160,000; and Independent School
30.12District No. 432, Mahnomen,$70,000 $140,000. The payments shall be made on July 20,
30.13of2008 2013 and each subsequent year.
30.14EFFECTIVE DATE.This section is effective for aids payable in calendar year
30.152013 and thereafter.
30.16 Sec. 34. INELIGIBILITY; SUSTAINABLE FOREST INCENTIVE PROGRAM.
30.17Lands that no longer qualify as forest land under Minnesota Statutes, section
30.18290C.02, subdivision 6, item (iii), are released from the covenant required under
30.19Minnesota Statutes, section 290C.04.
30.20EFFECTIVE DATE.This section is effective the day following final enactment.
30.21 Sec. 35. REENROLLMENT; SUSTAINABLE FOREST INCENTIVE
30.22PROGRAM.
30.23A person who elected to terminate participation in the sustainable forest incentive
30.24program, as provided in Laws 2011, First Special Session chapter 7, article 6, section 12,
30.25may reenroll lands for which the claimant terminated participation and be eligible for a
30.26payment in October 2013. A person must apply for reenrollment under this section within
30.2760 days after the effective date of this section.
30.28EFFECTIVE DATE.This section is effective the day following final enactment.
30.29 Sec. 36. REPEALER.
31.1(a) Minnesota Statutes 2012, sections 477A.011, subdivisions 2a, 19, 29, 31, 32, 33,
31.236, 39, 40, and 41; 477A.013, subdivisions 11 and 12; 477A.0133; and 477A.0134, are
31.3repealed.
31.4(b) Minnesota Statutes 2012, section 97A.061, and Laws 1973, chapter 567, section
31.57, as amended by Laws 1977, chapter 403, section 12, are repealed on July 1, 2013.
31.6EFFECTIVE DATE.This section is effective for aids payable in calendar year
31.72014 and thereafter.
31.10 Section 1. [124D.862] ACHIEVEMENT AND INTEGRATION REVENUE.
31.11 Subdivision 1. Initial achievement and integration revenue. (a) An eligible
31.12district's initial achievement and integration revenue equals the sum of (1) $350 times
31.13the district's adjusted pupil units for that year times the ratio of the district's enrollment
31.14of protected students for the previous school year to total enrollment for the previous
31.15school year and (2) the greater of zero or 66 percent of the difference between the district's
31.16integration revenue for fiscal year 2013 and the district's integration revenue for fiscal
31.17year 2014 under clause (1).
31.18(b) In each year, 0.3 percent of each district's initial achievement and integration
31.19revenue is transferred to the department for the oversight and accountability activities
31.20required under this section and section 124D.861.
31.21 Subd. 2. Incentive revenue. An eligible school district's maximum incentive
31.22revenue equals $10 per adjusted pupil unit. In order to receive this revenue, a district must
31.23be implementing a voluntary plan to reduce racial and economic enrollment disparities
31.24through intradistrict and interdistrict activities that have been approved as a part of the
31.25district's achievement and integration plan.
31.26 Subd. 3. Achievement and integration revenue. Achievement and integration
31.27revenue equals the sum of initial achievement and integration revenue and incentive
31.28revenue.
31.29 Subd. 4. Achievement and integration aid. For fiscal year 2015 and later,
31.30a district's achievement and integration aid equals 70 percent of its achievement and
31.31integration revenue.
31.32 Subd. 5. Achievement and integration levy. A district's achievement and
31.33integration levy equals its achievement and integration revenue times 30 percent. For
31.34Special School District No. 1, Minneapolis; Independent School District No. 625, St.
31.35Paul; and Independent School District No. 709, Duluth, 100 percent of the levy certified
32.1under this subdivision is shifted into the prior calendar year for purposes of sections
32.2123B.75, subdivision 5, and 127A.441.
32.3 Subd. 6. Revenue uses. (a) At least 80 percent of a district's achievement and
32.4integration revenue received under this section must be used for innovative and integrated
32.5learning environments, school enrollment choices, family engagement activities, and other
32.6approved programs providing direct services to students.
32.7(b) Up to 20 percent of the revenue may be used for professional development and
32.8staff development activities and placement services.
32.9(c) No more than ten percent of the total amount of revenue may be spent on
32.10administrative services.
32.11 Subd. 7. Revenue reserved. Integration revenue received under this section must
32.12be reserved and used only for the programs authorized in subdivision 2.
32.13 Subd. 8. Commissioner authority to withhold revenue. (a) The commissioner
32.14must review the results of each district's integration and achievement plan by August 1 at
32.15the end of the third year of implementing the plan and determine if the district met its goals.
32.16(b) If a district met its goals, it may submit a new three-year plan to the commissioner
32.17for review.
32.18(c) If a district has not met its goals, the commissioner must:
32.19(1) develop a district improvement plan and timeline, in consultation with the
32.20affected district, that identifies strategies and practices designed to meet the district's goals
32.21under this section and section 120B.11; and
32.22(2) use up to 20 percent of the district's integration revenue, until the district's goals
32.23are reached, to implement the improvement plan.
32.24EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014 and
32.25later. Subdivision 5 is effective for taxes payable in 2014 only.
32.26 Sec. 2. Minnesota Statutes 2012, section 126C.10, subdivision 1, is amended to read:
32.27 Subdivision 1. General education revenue. (a) For fiscal years 2013 and 2014, the
32.28general education revenue for each district equals the sum of the district's basic revenue,
32.29extended time revenue, gifted and talented revenue, small schools revenue, basic skills
32.30revenue,training and experience revenue, secondary sparsity revenue, elementary sparsity
32.31revenue, transportation sparsity revenue, total operating capital revenue, equity revenue,
32.32alternative teacher compensation revenue, and transition revenue.
32.33(b) For fiscal year 2015 and later, the general education revenue for each district
32.34equals the sum of the district's basic revenue, extended time revenue, gifted and
32.35talented revenue, declining enrollment revenue, location equity revenue, small schools
33.1revenue, basic skills revenue, secondary sparsity revenue, elementary sparsity revenue,
33.2transportation sparsity revenue, total operating capital revenue, equity revenue, pension
33.3adjustment revenue, and transition revenue.
33.4 Sec. 3. Minnesota Statutes 2012, section 126C.10, is amended by adding a subdivision
33.5to read:
33.6 Subd. 2d. Location equity revenue. (a) For a school district with any of its area
33.7located within the seven-county metropolitan area, location equity revenue equals $424
33.8times the adjusted pupil units of the district for that school year.
33.9(b) For all other school districts with more than 2,000 pupils in adjusted average
33.10daily membership for the fiscal year ending in the year before the levy is certified, location
33.11equity revenue equals $212 times the adjusted pupil units of the district for that year.
33.12(c) A district's location equity levy equals its location equity revenue times the lesser
33.13of one or the ratio of its referendum market value per resident pupil unit to $510,000. The
33.14location equity revenue levy must be spread on referendum market value.
33.15(d) A district's location equity aid equals its location equity revenue less its location
33.16equity levy, times the ratio of the actual amount levied to the permitted levy.
33.17(e) A school district may elect not to participate in the location equity revenue
33.18program by a board vote taken prior to September 1 of the fiscal year before the fiscal year
33.19for which the decision not to participate becomes effective. The board resolution must
33.20state which fiscal years the district will not participate. A copy of the board resolution
33.21to not participate must be submitted to the commissioner.
33.22EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
33.23and later.
33.24 Sec. 4. Minnesota Statutes 2012, section 126C.13, subdivision 4, is amended to read:
33.25 Subd. 4. General education aid. (a) For fiscal years2007 2013 and later 2014 only,
33.26a district's general education aid is the sum of the following amounts:
33.27 (1) general education revenue, excluding equity revenue, total operating capital
33.28revenue, alternative teacher compensation revenue, and transition revenue;
33.29 (2) operating capital aid under section126C.10, subdivision 13b ;
33.30 (3) equity aid under section126C.10, subdivision 30 ;
33.31 (4) alternative teacher compensation aid under section126C.10, subdivision 36 ;
33.32 (5) transition aid under section126C.10, subdivision 33 ;
33.33 (6) shared time aid under section126C.01, subdivision 7 ;
33.34 (7) referendum aid under section126C.17 , subdivisions 7 and 7a; and
34.1 (8) online learning aid according to section124D.096 .
34.2(b) For fiscal year 2015 and later, a district's general education aid equals:
34.3(1) general education revenue, excluding operating capital revenue, equity revenue,
34.4location equity revenue, and transition revenue, minus the student achievement levy,
34.5multiplied times the ratio of the actual amount of student achievement levy levied to the
34.6permitted student achievement levy; plus
34.7(2) equity aid under section 126C.10, subdivision 30; plus
34.8(3) transition aid under section 126C.10, subdivision 33; plus
34.9(4) shared time aid under section 126C.10, subdivision 7; plus
34.10(5) referendum aid under section 126C.17, subdivisions 7 and 7a;
34.11(6) online learning aid under section 124D.096; plus
34.12(7) location equity aid according to section 126C.10, subdivision 2d, paragraph (d).
34.13 Sec. 5. Minnesota Statutes 2012, section 126C.17, is amended to read:
34.14126C.17 REFERENDUM REVENUE.
34.15 Subdivision 1. Referendum allowance.(a) For fiscal year 2003 and later, a district's
34.16initial referendum revenue allowance equals the sum of the allowance under section
34.17126C.16, subdivision 2, plus any additional allowance per resident marginal cost pupil
34.18unit authorized under subdivision 9 before May 1, 2001, for fiscal year 2002 and later,
34.19plus the referendum conversion allowance approved under subdivision 13, minus $415.
34.20For districts with more than one referendum authority, the reduction must be computed
34.21separately for each authority. The reduction must be applied first to the referendum
34.22conversion allowance and next to the authority with the earliest expiration date. A
34.23district's initial referendum revenue allowance may not be less than zero.
34.24(b) For fiscal year 2003, a district's referendum revenue allowance equals the initial
34.25referendum allowance plus any additional allowance per resident marginal cost pupil unit
34.26authorized under subdivision 9 between April 30, 2001, and December 30, 2001, for
34.27fiscal year 2003 and later.
34.28(c) For fiscal year 2004 and later, a district's referendum revenue allowance equals
34.29the sum of:
34.30(1) the product of (i) the ratio of the resident marginal cost pupil units the district
34.31would have counted for fiscal year 2004 under Minnesota Statutes 2002, section
126C.05,
34.32to the district's resident marginal cost pupil units for fiscal year 2004, times (ii) the initial
34.33referendum allowance plus any additional allowance per resident marginal cost pupil unit
34.34authorized under subdivision 9 between April 30, 2001, and May 30, 2003, for fiscal
34.35year 2003 and later, plus
35.1(2) any additional allowance per resident marginal cost pupil unit authorized under
35.2subdivision 9 after May 30, 2003, for fiscal year 2005 and later.
35.3(a) A district's initial referendum allowance for fiscal year 2015 equals the result of
35.4the following calculations:
35.5(1) multiply the referendum allowance the district would have received for fiscal
35.6year 2015 under Minnesota Statutes 2012, section 126C.17, subdivision 1, based on
35.7elections held before July 1, 2013, by the resident marginal cost pupil units the district
35.8would have counted for fiscal year 2015 under Minnesota Statutes 2012, section 126C.05;
35.9(2) add to the result of clause (1) the adjustment the district would have received
35.10under Minnesota Statutes 2012, section 127A.47, subdivision 7, paragraphs (a), (b), and
35.11(c), based on elections held before July 1, 2013;
35.12(3) divide the result of clause (2) by the district's adjusted pupil units for fiscal
35.13year 2015; and
35.14(4) if the result of clause (3) is less than zero, set the allowance to zero.
35.15(b) A district's referendum allowance equals the sum of the district's initial
35.16referendum allowance for fiscal year 2015, plus any additional referendum allowance per
35.17adjusted pupil unit authorized after June 30, 2013, minus (i) the location equity revenue
35.18subtraction, and (ii) any allowances expiring in fiscal year 2016 or later, provided that
35.19the allowance may not be less than zero. For a district with more than one referendum
35.20allowance for fiscal year 2015 under Minnesota Statutes 2012, section 126C.17, the
35.21allowance calculated under paragraph (a) must be divided into components such that the
35.22same percentage of the district's allowance expires at the same time as the old allowances
35.23would have expired under Minnesota Statutes 2012, section 126C.17.
35.24(c) For purposes of this subdivision, a district's location equity revenue subtraction
35.25equals $424 for a district receiving location equity revenue under section 126C.10,
35.26subdivision 2d, paragraph (a), $212 for a district receiving location equity revenue under
35.27section 126C.10, subdivision 2d, paragraph (b), and zero for all other school districts.
35.28 Subd. 2. Referendum allowance limit. (a) Notwithstanding subdivision 1, for fiscal
35.29year2007 2015 and later, a district's referendum allowance must not exceed the greater of:
35.30(1) the sum of: (i) a district's referendum allowance for fiscal year 1994 times 1.177
35.31times the annual inflationary increase as calculated under paragraph (b) plus (ii) its
35.32referendum conversion allowance for fiscal year 2003, minus (iii) $215;
35.33(2) the greater of (i): 26 percent of the formula allowance or (ii) $1,294 times the
35.34annual inflationary increase as calculated under paragraph (b); or times the greatest of:
35.35(1) $1,845;
36.1(2) the sum of the referendum revenue the district would have received for fiscal
36.2year 2015 under Minnesota Statutes 2012, section 126C.17, subdivision 4, based on
36.3elections held before July 1, 2013, and the adjustment the district would have received
36.4under Minnesota Statutes 2012, section 127A.47, subdivision 7, paragraphs (a), (b), and
36.5(c), based on elections held before July 1, 2013, divided by the district's adjusted pupil
36.6units for fiscal year 2015; or
36.7(3) the product of the referendum allowance limit the district would have received
36.8for fiscal year 2015 under Minnesota Statutes 2012, section 126C.17, subdivision 2, and
36.9the resident marginal cost pupil units the district would have received for fiscal year 2015
36.10under Minnesota Statutes 2012, section 126C.05, subdivision 6, plus the adjustment the
36.11district would have received under Minnesota Statutes 2012, section 127A.47, subdivision
36.127, paragraphs (a), (b), and (c), based on elections held before July 1, 2013, divided by
36.13the district's adjusted pupil units for fiscal year 2015; minus $424 for a district receiving
36.14location equity revenue under section 126C.10, subdivision 2d, paragraph (a), minus
36.15$212 for a district receiving location equity revenue under section 126C.10, subdivision
36.162d, paragraph (b), or
36.17(3) (4) for a newly reorganized district created after July 1, 2006 2013, the referendum
36.18revenue authority for each reorganizing district in the year preceding reorganization divided
36.19by itsresident marginal cost adjusted pupil units for the year preceding reorganization.
36.20(b) For purposes of this subdivision, for fiscal year2005 2016 and later, "inflationary
36.21increase" means one plus the percentage change in the Consumer Price Index for urban
36.22consumers, as prepared by the United States Bureau of Labor Standards, for the current
36.23fiscal year to fiscal year2004 2015. For fiscal years 2009 year 2016 and later, for purposes
36.24of paragraph (a), clause(1) (3), the inflationary increase equals the inflationary increase
36.25for fiscal year 2008 plus one-fourth of the percentage increase in the formula allowance
36.26for that year compared with the formula allowance for fiscal year2008 2015.
36.27 Subd. 3. Sparsity exception. A district that qualifies for sparsity revenue under
36.28section126C.10 is not subject to a referendum allowance limit.
36.29 Subd. 4. Total referendum revenue. The total referendum revenue for each district
36.30equals the district's referendum allowance times theresident marginal cost adjusted pupil
36.31units for the school year.
36.32 Subd. 5. Referendum equalization revenue. (a)For fiscal year 2003 and later,
36.33 A district's referendum equalization revenue equals the sum of the first tier referendum
36.34equalization revenue and the second tier referendum equalization revenue, and the third
36.35tier referendum equalization revenue.
37.1(b) A district's first tier referendum equalization revenue equals the district's first
37.2tier referendum equalization allowance times the district'sresident marginal cost adjusted
37.3 pupil units for that year.
37.4(c)For fiscal year 2006, a district's first tier referendum equalization allowance
37.5equals the lesser of the district's referendum allowance under subdivision 1 or $500. For
37.6fiscal year 2007, a district's first tier referendum equalization allowance equals the lesser
37.7of the district's referendum allowance under subdivision 1 or $600.
37.8For fiscal year 2008 and later, A district's first tier referendum equalization allowance
37.9equals the lesser of the district's referendum allowance under subdivision 1 or$700 $300.
37.10(d) A district's second tier referendum equalization revenue equals the district's
37.11second tier referendum equalization allowance times the district'sresident marginal cost
37.12 adjusted pupil units for that year.
37.13(e)For fiscal year 2006, a district's second tier referendum equalization allowance
37.14equals the lesser of the district's referendum allowance under subdivision 1 or 18.6
37.15percent of the formula allowance, minus the district's first tier referendum equalization
37.16allowance. For fiscal year 2007 and later, A district's second tier referendum equalization
37.17allowance equals the lesser of the district's referendum allowance under subdivision 1
37.18or26 percent of the formula allowance $760, minus the district's first tier referendum
37.19equalization allowance.
37.20(f)Notwithstanding paragraph (e), the second tier referendum allowance for a
37.21district qualifying for secondary sparsity revenue under section
126C.10, subdivision 7, or
37.22elementary sparsity revenue under section
126C.10, subdivision 8, equals the district's
37.23referendum allowance under subdivision 1 minus the district's first tier referendum
37.24equalization allowance. A district's third tier referendum equalization revenue equals the
37.25district's third tier referendum equalization allowance times the district's adjusted pupil
37.26units for that year.
37.27(g) A district's third tier referendum equalization allowance equals the lesser of
37.28the district's referendum allowance under subdivision 1 or 25 percent of the formula
37.29allowance, minus the sum of the district's first tier referendum equalization allowance and
37.30second tier referendum equalization allowance.
37.31(h) Notwithstanding paragraph (g), the third tier referendum allowance for a district
37.32qualifying for secondary sparsity revenue under section 126C.10, subdivision 7, or
37.33elementary sparsity revenue under section 126C.10, subdivision 8, equals the district's
37.34referendum allowance under subdivision 1 minus the sum of the district's first tier
37.35referendum equalization allowance and second tier referendum equalization allowance.
38.1 Subd. 6. Referendum equalization levy. (a) For fiscal year 2003 and later,
38.2a district's referendum equalization levy equals the sum of the first tier referendum
38.3equalization levyand the second tier referendum equalization levy, and the third tier
38.4referendum equalization levy.
38.5(b) A district's first tier referendum equalization levy equals the district's first tier
38.6referendum equalization revenue times the lesser of one or the ratio of the district's
38.7referendum market value per residentmarginal cost pupil unit to $476,000 $880,000.
38.8(c) A district's second tier referendum equalization levy equals the district's second
38.9tier referendum equalization revenue times the lesser of one or the ratio of the district's
38.10referendum market value per residentmarginal cost pupil unit to $270,000 $510,000.
38.11(d) A district's third tier referendum equalization levy equals the district's third
38.12tier referendum equalization revenue times the lesser of one or the ratio of the district's
38.13referendum market value per resident pupil unit to $290,000.
38.14 Subd. 7. Referendum equalization aid. (a) A district's referendum equalization aid
38.15equals the difference between its referendum equalization revenue and levy.
38.16(b) If a district's actual levy for firstor, second, or third tier referendum equalization
38.17revenue is less than its maximum levy limit for that tier, aid shall be proportionately
38.18reduced.
38.19(c) Notwithstanding paragraph (a), the referendum equalization aid for a district,
38.20where the referendum equalization aid under paragraph (a) exceeds 90 percent of the
38.21referendum revenue, must not exceed26 25 percent of the formula allowance times the
38.22district'sresident marginal cost adjusted pupil units. A district's referendum levy is
38.23increased by the amount of any reduction in referendum aid under this paragraph.
38.24 Subd. 7a. Referendum tax base replacement aid. For each school district that
38.25had a referendum allowance for fiscal year 2002 exceeding $415, for each separately
38.26authorized referendum levy, the commissioner of revenue, in consultation with the
38.27commissioner of education, shall certify the amount of the referendum levy in taxes
38.28payable year 2001 attributable to the portion of the referendum allowance exceeding $415
38.29levied against property classified as class 2, noncommercial 4c(1), or 4c(4), under section
38.30273.13
, excluding the portion of the tax paid by the portion of class 2a property consisting
38.31of the house, garage, and surrounding one acre of land. The resulting amount must be
38.32used to reduce the district's referendum levy amount otherwise determined, and must be
38.33paid to the district each year that the referendum authority remains in effect, is renewed,
38.34or new referendum authority is approved. The aid payable under this subdivision must
38.35be subtracted from the district's referendum equalization aid under subdivision 7. The
38.36referendum equalization aid after the subtraction must not be less than zero.
39.1 Subd. 7b. Referendum aid guarantee. (a) Notwithstanding subdivision 7, a
39.2district's referendum equalization aid for fiscal year 2015 must not be less than the sum
39.3of the referendum equalization aid the district would have received for fiscal year 2015
39.4under Minnesota Statutes 2012, section 126C.17, subdivision 7, and the adjustment the
39.5district would have received under Minnesota Statutes 2012, section 127A.47, subdivision
39.67, paragraphs (a), (b), and (c).
39.7(b) Notwithstanding subdivision 7, referendum equalization aid for fiscal year 2016
39.8and later, for a district qualifying for additional aid under paragraph (a) for fiscal year
39.92015, must not be less than the product of (1) the district's referendum equalization aid
39.10for fiscal year 2015, times (2) the lesser of one or the ratio of the district's referendum
39.11revenue for that school year to the district's referendum revenue for fiscal year 2015, times
39.12(3) the lesser of one or the ratio of the district's referendum market value used for fiscal
39.13year 2015 referendum equalization calculations to the district's referendum market value
39.14used for that year's referendum equalization calculations.
39.15 Subd. 8. Unequalized referendum levy. Each year, a district may levy an amount
39.16equal to the difference between its total referendum revenue according to subdivision 4
39.17and its referendum equalization revenue according to subdivision 5.
39.18 Subd. 9. Referendum revenue. (a) The revenue authorized by section126C.10,
39.19subdivision 1 , may be increased in the amount approved by the voters of the district
39.20at a referendum called for the purpose. The referendum may be called by the board.
39.21The referendum must be conducted one or two calendar years before the increased levy
39.22authority, if approved, first becomes payable. Only one election to approve an increase
39.23may be held in a calendar year. Unless the referendum is conducted by mail under
39.24subdivision 11, paragraph (a), the referendum must be held on the first Tuesday after the
39.25first Monday in November. The ballot must state the maximum amount of the increased
39.26revenue perresident marginal cost adjusted pupil unit. The ballot may state a schedule,
39.27determined by the board, of increased revenue perresident marginal cost adjusted pupil
39.28unit that differs from year to year over the number of years for which the increased revenue
39.29is authorized or may state that the amount shall increase annually by the rate of inflation.
39.30For this purpose, the rate of inflation shall be the annual inflationary increase calculated
39.31under subdivision 2, paragraph (b). The ballot may state that existing referendum levy
39.32authority is expiring. In this case, the ballot may also compare the proposed levy authority
39.33to the existing expiring levy authority, and express the proposed increase as the amount, if
39.34any, over the expiring referendum levy authority. The ballot must designate the specific
39.35number of years, not to exceed ten, for which the referendum authorization applies. The
39.36ballot, including a ballot on the question to revoke or reduce the increased revenue amount
40.1under paragraph (c), must abbreviate the term "perresident marginal cost adjusted pupil
40.2unit" as "per pupil." The notice required under section275.60 may be modified to read, in
40.3cases of renewing existing levies at the same amount per pupil as in the previous year:
40.4"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING
40.5TO EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS
40.6SCHEDULED TO EXPIRE."
40.7 The ballot may contain a textual portion with the information required in this
40.8subdivision and a question stating substantially the following:
40.9 "Shall the increase in the revenue proposed by (petition to) the board of .........,
40.10School District No. .., be approved?"
40.11 If approved, an amount equal to the approved revenue perresident marginal cost
40.12 adjusted pupil unit times theresident marginal cost adjusted pupil units for the school
40.13year beginning in the year after the levy is certified shall be authorized for certification
40.14for the number of years approved, if applicable, or until revoked or reduced by the voters
40.15of the district at a subsequent referendum.
40.16 (b) The board must prepare and deliver by first class mail at least 15 days but no more
40.17than 30 days before the day of the referendum to each taxpayer a notice of the referendum
40.18and the proposed revenue increase. The board need not mail more than one notice to any
40.19taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be
40.20those shown to be owners on the records of the county auditor or, in any county where
40.21tax statements are mailed by the county treasurer, on the records of the county treasurer.
40.22Every property owner whose name does not appear on the records of the county auditor
40.23or the county treasurer is deemed to have waived this mailed notice unless the owner
40.24has requested in writing that the county auditor or county treasurer, as the case may be,
40.25include the name on the records for this purpose. The notice must project the anticipated
40.26amount of tax increase in annual dollars for typical residential homesteads, agricultural
40.27homesteads, apartments, and commercial-industrial property within the school district.
40.28 The notice for a referendum may state that an existing referendum levy is expiring
40.29and project the anticipated amount of increase over the existing referendum levy in
40.30the first year, if any, in annual dollars for typical residential homesteads, agricultural
40.31homesteads, apartments, and commercial-industrial property within the district.
40.32 The notice must include the following statement: "Passage of this referendum will
40.33result in an increase in your property taxes." However, in cases of renewing existing levies,
40.34the notice may include the following statement: "Passage of this referendum extends an
40.35existing operating referendum at the same amount per pupil as in the previous year."
41.1 (c) A referendum on the question of revoking or reducing the increased revenue
41.2amount authorized pursuant to paragraph (a) may be called by the board. A referendum to
41.3revoke or reduce the revenue amount must state the amount per resident marginal cost
41.4pupil unit by which the authority is to be reduced. Revenue authority approved by the
41.5voters of the district pursuant to paragraph (a) must be available to the school district at
41.6least once before it is subject to a referendum on its revocation or reduction for subsequent
41.7years. Only one revocation or reduction referendum may be held to revoke or reduce
41.8referendum revenue for any specific year and for years thereafter.
41.9 (d) The approval of 50 percent plus one of those voting on the question is required to
41.10pass a referendum authorized by this subdivision.
41.11 (e) At least 15 days before the day of the referendum, the district must submit a
41.12copy of the notice required under paragraph (b) to the commissioner and to the county
41.13auditor of each county in which the district is located. Within 15 days after the results
41.14of the referendum have been certified by the board, or in the case of a recount, the
41.15certification of the results of the recount by the canvassing board, the district must notify
41.16the commissioner of the results of the referendum.
41.17 Subd. 9a. Board-approved referendum allowance. Notwithstanding subdivision
41.189, a school district may convert up to $300 per adjusted pupil unit of referendum authority
41.19from voter approved to board approved by a board vote. A district with less than $300
41.20per adjusted pupil unit of referendum authority may authorize new referendum authority
41.21up to the difference between $300 per adjusted pupil unit and the district's referendum
41.22authority. The board may authorize this levy for up to five years and may subsequently
41.23reauthorize that authority in increments of up to five years.
41.24 Subd. 10. School referendum levy; market value. A school referendum levy must
41.25be levied against the referendum market value of all taxable property as defined in section
41.26126C.01, subdivision 3
. Any referendum levy amount subject to the requirements of this
41.27subdivision must be certified separately to the county auditor under section275.07 .
41.28 Subd. 11. Referendum date. (a) Except for a referendum held under paragraph (b),
41.29any referendum under this section held on a day other than the first Tuesday after the first
41.30Monday in November must be conducted by mail in accordance with section204B.46 .
41.31Notwithstanding subdivision 9, paragraph (b), to the contrary, in the case of a referendum
41.32conducted by mail under this paragraph, the notice required by subdivision 9, paragraph (b),
41.33must be prepared and delivered by first-class mail at least 20 days before the referendum.
41.34(b) In addition to the referenda allowed in subdivision 9, clause (a), the commissioner
41.35may grant authority to a district to hold a referendum on a different day if the district is in
42.1statutory operating debt and has an approved plan or has received an extension from the
42.2department to file a plan to eliminate the statutory operating debt.
42.3(c) The commissioner must approve, deny, or modify each district's request for a
42.4referendum levy on a different day within 60 days of receiving the request from a district.
42.5 Subd. 13. Referendum conversion allowance. A school district that received
42.6supplemental or transition revenue in fiscal year 2002 may convert its supplemental
42.7revenue conversion allowance and transition revenue conversion allowance to additional
42.8referendum allowance under subdivision 1 for fiscal year 2003 and thereafter. A majority
42.9of the school board must approve the conversion at a public meeting before November 1,
42.102001. For a district with other referendum authority, the referendum conversion allowance
42.11approved by the board continues until the portion of the district's other referendum
42.12authority with the earliest expiration date after June 30, 2006, expires. For a district
42.13with no other referendum authority, the referendum conversion allowance approved by
42.14the board continues until June 30, 2012.
42.15EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
42.16and later.
42.17 Sec. 6. OPERATING REFERENDUM FREEZE, FISCAL YEAR 2015.
42.18(a) Notwithstanding Minnesota Statutes, section 126C.17, subdivision 9, a school
42.19district may not authorize an increase to its operating referendum in fiscal year 2015. A
42.20school district may reauthorize an operating referendum that is expiring in fiscal year 2015.
42.21(b) Paragraph (a) shall not apply to a district if, prior to June 30, 2013, the board
42.22adopted a resolution to conduct a referendum in 2013.
42.23(c) Paragraph (a) shall not apply to a district if the district did not authorize an
42.24operating referendum in fiscal year 2014.
42.25(d) Paragraph (a) shall not apply to a district if the district is in statutory operating
42.26debt under Minnesota Statutes, section 123B.81, as of June 30, 2013, and has an approved
42.27plan with the Department of Education.
42.30 Section 1. Minnesota Statutes 2012, section 103B.102, subdivision 3, is amended to
42.31read:
42.32 Subd. 3. Evaluation and report. The Board of Water and Soil Resources shall
42.33evaluate performance, financial, and activity information for each local water management
42.34entity. The board shall evaluate the entities' progress in accomplishing their adopted plans
43.1on a regular basis as determined by the board based on budget and operations of the local
43.2water management entity, but not less than once everyfive ten years. The board shall
43.3maintain a summary of local water management entity performance on the board's Web site.
43.4Beginning February 1, 2008, and annually thereafter, the board shall provide an analysis
43.5of local water management entity performance to the chairs of the house of representatives
43.6and senate committees having jurisdiction over environment and natural resources policy.
43.7 Sec. 2. Minnesota Statutes 2012, section 103B.335, is amended to read:
43.8103B.335 TAX LEVY AUTHORITY.
43.9 Subdivision 1. Local water planning and management. The governing body of
43.10any county, municipality, or township may levy a tax in an amount required to implement
43.11sections103B.301 to
103B.355 or a comprehensive watershed management plan as
43.12defined in section 103B.3363.
43.13 Subd. 2. Priority programs; conservation and watershed districts. A county
43.14may levy amounts necessary to pay the reasonableincreased costs to soil and water
43.15conservation districts and watershed districts of administering and implementing priority
43.16programs identified in an approved and adopted plan or a comprehensive watershed
43.17management plan as defined in section 103B.3363.
43.18 Sec. 3. Minnesota Statutes 2012, section 103B.3369, subdivision 5, is amended to read:
43.19 Subd. 5. Financial assistance. A base grant may be awarded to a county that
43.20provides a match utilizing a water implementation tax or other local source. A water
43.21implementation tax that a county intends to use as a match to the base grant must be
43.22levied at a rate sufficient to generate a minimum amount determined by the board.
43.23The board may award performance-based grants to local units of government that are
43.24responsible for implementing elements of applicable portions of watershed management
43.25plans, comprehensive plans, local water management plans, or comprehensive watershed
43.26management plans, developed or amended, adopted and approved, according to chapter
43.27103B, 103C, or 103D. Upon request by a local government unit, the board may also
43.28award performance-based grants to local units of government to carry out TMDL
43.29implementation plans as provided in chapter 114D, if the TMDL implementation plan has
43.30been incorporated into the local water management plan according to the procedures for
43.31approving comprehensive plans, watershed management plans, local water management
43.32plans, or comprehensive watershed management plans under chapter 103B, 103C, or
43.33103D, or if the TMDL implementation plan has undergone a public review process.
43.34Notwithstanding section16A.41 , the board may award performance-based grants on an
44.1advanced basis. The fee authorized in section 40A.152 may be used as a local match
44.2or as a supplement to state funding to accomplish implementation of comprehensive
44.3plans, watershed management plans, local water management plans, or comprehensive
44.4watershed management plans under chapter 103B, 103C, or 103D.
44.5 Sec. 4. Minnesota Statutes 2012, section 103C.501, subdivision 4, is amended to read:
44.6 Subd. 4. Cost-sharing funds. (a) The state board shall allocateat least 70 percent
44.7of cost-sharing funds to areas with high priority erosion, sedimentation, or water quality
44.8problems or water quantity problems due to altered hydrology. The areas must be selected
44.9based onthe statewide priorities established by the state board.
44.10 (b) The allocated funds must be used for conservation practices for high priority
44.11problems identified in the comprehensive and annual work plans of the districts, for
44.12the technical assistance portion of the grant funds to leverage federal or other nonstate
44.13funds, or to address high-priority needs identified in local water management plans or
44.14comprehensive watershed management plans.
44.15(b) The remaining cost-sharing funds may be allocated to districts as follows:
44.16(1) for technical and administrative assistance, not more than 20 percent of the
44.17funds; and
44.18(2) for conservation practices for lower priority erosion, sedimentation, or water
44.19quality problems.
44.20 Sec. 5. Minnesota Statutes 2012, section 103F.405, subdivision 1, is amended to read:
44.21 Subdivision 1. Authority. Each statutory or home rule charter city, town, or
44.22county that has planning and zoning authority under sections366.10 to
366.19 ,
394.21
44.23to394.37 , or
462.351 to
462.365 is encouraged to adopt a soil loss ordinance. The soil
44.24loss ordinance must use the soil loss tolerance for each soil series described in the United
44.25StatesSoil Natural Resources Conservation Service Field Office Technical Guide, or
44.26another method approved by the Board of Water and Soil Resources, to determine the
44.27soil loss limits, but the soil loss limits must be attainable by the best practicable soil
44.28conservation practice. Ordinances adopted by local governmentswithin the metropolitan
44.29area defined in section
473.121local water management plans
44.30adopted under section
103B.235
44.31watershed management plan developed or amended, adopted, and approved according
44.32to chapter 103B, 103C, or 103D.
44.33 Sec. 6. Minnesota Statutes 2012, section 168.012, subdivision 9, is amended to read:
45.1 Subd. 9. Manufactured homes and park trailers. Manufactured homes and park
45.2trailers shall not be taxed as motor vehicles using the public streets and highways and shall
45.3be exempt from the motor vehicle tax provisions of this chapter. Except as provided in
45.4section273.125 , manufactured homes and park trailers shall be taxed as personal property.
45.5The provisions of Minnesota Statutes 1957, section272.02 or any other act providing for
45.6tax exemption shall be inapplicable to manufactured homes and park trailers, except
45.7such manufactured homes as are held by a licensed dealer or limited dealer, as defined
45.8in section 327B.04, and exempted as inventory under subdivision 9a. Travel trailers not
45.9conspicuously displaying current registration plates on the property tax assessment date
45.10shall be taxed as manufactured homes if occupied as human dwelling places.
45.11EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
45.12thereafter.
45.13 Sec. 7. Minnesota Statutes 2012, section 168.012, is amended by adding a subdivision
45.14to read:
45.15 Subd. 9a. Manufactured home as dealer inventory. Manufactured homes as
45.16defined in section 327.31, subdivision 6, shall be considered as dealer inventory, on the
45.17January 2 assessment date, if the home is:
45.18(1) listed as inventory and held by a licensed or limited dealer;
45.19(2) unoccupied and not available for rent;
45.20(3) connected or not connected to utilities when located in a manufactured home
45.21park; and
45.22(4) connected or not connected to utilities when located at a dealer's sales center.
45.23The exemption under this subdivision is allowable for up to five assessment years after
45.24the date a home is initially claimed as dealer inventory.
45.25EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
45.26thereafter.
45.27 Sec. 8. Minnesota Statutes 2012, section 270.41, subdivision 3, is amended to read:
45.28 Subd. 3.Licenses; refusal or revocation Assessor sanctions; refusal to license.
45.29 (a) The board may (i) refuse to grant or renew, or may suspend or revoke, a license
45.30of an applicant or licensee, or (ii) censure, warn, or fine any licensed assessor, or any
45.31other person employed by an assessment jurisdiction or contracting with an assessment
45.32jurisdiction for the purpose of valuing or classifying property for property tax purposes,
45.33 for any of the following causes or acts:
46.1 (1) failure to complete required training;
46.2 (2) inefficiency or neglect of duty;
46.3 (3) failure to comply with the Code of Conduct and Ethics for Licensed Minnesota
46.4Assessors adopted by the board pursuant to Laws 2005, First Special Session chapter 3,
46.5article 1, section 38;
46.6 (4) conviction of a crime involving moral turpitude;or
46.7(5) failure to faithfully and fully perform his or her duties through malfeasance,
46.8misfeasance, or nonfeasance; or
46.9(5) (6) any other cause or act that in the board's opinion warrants a refusal to issue
46.10or suspension or revocation of a license or the imposition of a sanction provided under
46.11this subdivision.
46.12(b) When appropriate for the level of infraction, a written warning must be given
46.13to assessors who have no prior identified infractions. The warning must identify the
46.14infraction and, as appropriate, detail future expectations of performance and behavior.
46.15Fines must not exceed $1,000 for the first occurrence and must not exceed $3,000 for each
46.16occurrence thereafter, and suspensions must not exceed one year for each occurrence,
46.17depending in each case upon the severity of the infraction and the level of negligence or
46.18intent. An action by the board to impose a sanction is subject to review in a contested
46.19case hearing under chapter 14.
46.20EFFECTIVE DATE.This section is effective beginning July 1, 2013.
46.21 Sec. 9. Minnesota Statutes 2012, section 270.41, is amended by adding a subdivision
46.22to read:
46.23 Subd. 3a. Report on disciplinary actions. Each odd-numbered year, the board
46.24must publish a report detailing the number and types of disciplinary actions recommended
46.25by the commissioner of revenue under section 273.0645, subdivision 2, and the disposition
46.26of those recommendations by the board. The report must be presented to the house of
46.27representatives and senate committees with jurisdiction over property taxes by February 1
46.28of each odd-numbered year.
46.29EFFECTIVE DATE.This section is effective beginning July 1, 2013.
46.30 Sec. 10. Minnesota Statutes 2012, section 270.45, is amended to read:
46.31270.45 DISPOSITION OF FEES AND FINES.
47.1 All fees and fines so established and collected shall be paid to the commissioner of
47.2management and budget for deposit in the general fund. The expenses of carrying out the
47.3provisions of sections270.41 to
270.50 shall be paid from appropriations made to the board.
47.4EFFECTIVE DATE.This section is effective beginning July 1, 2013.
47.5 Sec. 11. [270C.9901] ASSESSOR ACCREDITATION.
47.6Every individual who appraises or physically inspects real property for the purpose
47.7of determining its valuation or classification for property tax purposes must obtain
47.8licensure as an accredited Minnesota assessor from the State Board of Assessors by July 1,
47.92019, or within four years of that person having become licensed as a certified Minnesota
47.10assessor, whichever is later.
47.11EFFECTIVE DATE.This section is effective beginning January 1, 2014.
47.12 Sec. 12. Minnesota Statutes 2012, section 272.02, subdivision 39, is amended to read:
47.13 Subd. 39. Economic development; public purpose. The holding of property by a
47.14political subdivision of the state for later resale for economic development purposes
47.15shall be considered a public purpose in accordance with subdivision 8 for a period not to
47.16exceed nine years, except that:
47.17(1) for property located in a city of5,000 20,000 population or under that is located
47.18outside of the metropolitan area as defined in section473.121, subdivision 2 , the period
47.19must not exceed 15 years.; and
47.20(2) for any property that was acquired on or after January 1, 2000, and on or before
47.21December 31, 2010, and is located in a city, the period must not exceed 15 years.
47.22The holding of property by a political subdivision of the state for later resale (1)
47.23which is purchased or held for housing purposes, or (2) which meets the conditions
47.24described in section469.174, subdivision 10 , shall be considered a public purpose in
47.25accordance with subdivision 8.
47.26The governing body of the political subdivision which acquires property which is
47.27subject to this subdivision shall after the purchase of the property certify to the city or
47.28county assessor whether the property is held for economic development purposes or
47.29housing purposes, or whether it meets the conditions of section469.174, subdivision 10 .
47.30If the property is acquired for economic development purposes and buildings or other
47.31improvements are constructed after acquisition of the property, and if more than one-half
47.32of the floor space of the buildings or improvements which is available for lease to or use
47.33by a private individual, corporation, or other entity is leased to or otherwise used by
48.1a private individual, corporation, or other entity the provisions of this subdivision shall
48.2not apply to the property. This subdivision shall not create an exemption from section
48.3272.01, subdivision 2
;
272.68 ;
273.19 ; or
469.040, subdivision 3 ; or other provision of
48.4law providing for the taxation of or for payments in lieu of taxes for publicly held property
48.5which is leased, loaned, or otherwise made available and used by a private person.
48.6EFFECTIVE DATE.This section is effective for assessment year 2013 and
48.7thereafter and for taxes payable in 2014 and thereafter.
48.8 Sec. 13. Minnesota Statutes 2012, section 272.02, is amended by adding a subdivision
48.9to read:
48.10 Subd. 98. Certain property owned by an Indian tribe. (a) Property is exempt that:
48.11(1) was classified as 3a under section 273.13, subdivision 24, for taxes payable
48.12in 2013;
48.13(2) is located in a city of the first class with a population greater than 300,000 as of
48.14the 2010 federal census;
48.15(3) was on January 2, 2012, and is for the current assessment owned by a federally
48.16recognized Indian tribe, or its instrumentality, that is located within the state of Minnesota;
48.17and
48.18(4) is used exclusively for tribal purposes or institutions of purely public charity as
48.19defined in subdivision 7.
48.20(b) For purposes of this subdivision, a "tribal purpose" means a public purpose
48.21as defined in subdivision 8 and includes noncommercial tribal government activities.
48.22Property that qualifies for the exemption under this subdivision is limited to no more than
48.23two contiguous parcels and structures that do not exceed in the aggregate 20,000 square
48.24feet. Property acquired for single-family housing, market-rate apartments, agriculture, or
48.25forestry does not qualify for this exemption. The exemption created by this subdivision
48.26expires with taxes payable in 2024.
48.27EFFECTIVE DATE.This section is effective beginning with taxes payable in 2014.
48.28 Sec. 14. Minnesota Statutes 2012, section 272.02, is amended by adding a subdivision
48.29to read:
48.30 Subd. 99. Electric generation facility; personal property. (a) Notwithstanding
48.31subdivision 9, clause (a), and section 453.54, subdivision 20, attached machinery and
48.32other personal property which is part of an electric generation facility that exceeds five
49.1megawatts of installed capacity and meets the requirements of this subdivision is exempt.
49.2At the time of construction, the facility must be:
49.3 (1) designed to utilize natural gas as a primary fuel;
49.4 (2) owned and operated by a municipal power agency as defined in section 453.52,
49.5subdivision 8;
49.6 (3) designed to utilize reciprocating engines paired with generators to produce
49.7electrical power;
49.8 (4) located within the service territory of a municipal power agency's electrical
49.9municipal utility that serves load exclusively in a metropolitan county as defined in
49.10section 473.121, subdivision 4; and
49.11(5) designed to connect directly with a municipality's substation.
49.12 (b) Construction of the facility must be commenced after June 1, 2013, and before
49.13June 1, 2017. Property eligible for this exemption does not include electric transmission
49.14lines and interconnections or gas pipelines and interconnections appurtenant to the
49.15property or the facility.
49.16EFFECTIVE DATE.This section is effective for assessment year 2013, taxes
49.17payable in 2014, and thereafter.
49.18 Sec. 15. Minnesota Statutes 2012, section 273.061, subdivision 2, is amended to read:
49.19 Subd. 2. Term; vacancy. (a) The terms of county assessors appointed under this
49.20section shall be four years. A new term shall begin on January 1 of every fourth year
49.21after 1973. When any vacancy in the office occurs, the board of county commissioners,
49.22within 90 days thereafter, shall fill the same by appointment for the remainder of the term,
49.23following the procedure prescribed in subdivision 1. The term of the county assessor
49.24may be terminated by the board of county commissioners at any time, on charges of
49.25malfeasance, misfeasance, or nonfeasance by the commissioner of revenue. If the board
49.26of county commissioners does not intend to reappoint a county assessor who has been
49.27certified by the state Board of Assessors, the board shall present written notice to the
49.28county assessor not later than 90 days prior to the termination of the assessor's term, that it
49.29does not intend to reappoint the assessor. If written notice is not timely made, the county
49.30assessor will automatically be reappointed by the board of county commissioners.
49.31The commissioner of revenue may recommend to the state Board of Assessors the
49.32nonrenewal, suspension, or revocation of an assessor's license as provided in sections
49.33270.41 to
270.50.
49.34(b) In the event of a vacancy in the office of county assessor, through death,
49.35resignation or other reasons, the deputy (or chief deputy, if more than one) shall perform
50.1the functions of the office. If there is no deputy, the county auditor shall designate a person
50.2to perform the duties of the office until an appointment is made as provided in clause (a).
50.3Such person shall perform the duties of the office for a period not exceeding 90 days
50.4during which the county board must appoint a county assessor. Such 90-day period may,
50.5however, be extended by written approval of the commissioner of revenue.
50.6(c) In the case of the first appointment under paragraph (a) of a county assessor who
50.7is accredited but who does not have senior accreditation, an approval of the appointment
50.8by the commissioner shall be provisional, provided that a county assessor appointed to
50.9a provisional term under this paragraph must reapply to the commissioner at the end of
50.10the provisional term. A provisional term may not exceed two years. The commissioner
50.11shall not approve the appointment for the remainder of the four-year term unless the
50.12assessor has obtained senior accreditation.
50.13EFFECTIVE DATE.This section is effective beginning July 1, 2013.
50.14 Sec. 16. Minnesota Statutes 2012, section 273.0645, is amended to read:
50.15273.0645 COMMISSIONER REVIEW OFLOCAL ASSESSMENT
50.16PRACTICES.
50.17 Subdivision 1. Local assessment practices. The commissioner of revenue must
50.18review the assessment practices in a taxing jurisdiction if requested in writing by a
50.19qualifying number of property owners in that taxing jurisdiction. The request must be
50.20signed by the greater of:
50.21 (1) ten percent of the registered voters who voted in the last general election; or
50.22 (2) five property owners.
50.23 The request must identify the city, town, or county and describe why a review is
50.24sought for that taxing jurisdiction. The commissioner must conduct the review in a
50.25reasonable amount of time and report the findings to the county board of the affected
50.26county, to the affected city council or town board, if the review is for a specific city or
50.27town, and to the property owner designated in the request as the person to receive the
50.28report on behalf of all the property owners who signed the request. The commissioner
50.29must also provide the report electronically to all property owners who signed the request
50.30and provided an e-mail address in order to receive the report electronically.
50.31 Subd. 2. Nonfeasance, misfeasance, and malfeasance. County assessors may file a
50.32written complaint with the commissioner of revenue detailing allegations of nonfeasance,
50.33misfeasance, or malfeasance by a local assessor. After receiving a complaint from a county
50.34assessor, the commissioner must complete an investigation and recommend an appropriate
51.1action to the State Board of Assessors. The commissioner is not required to have a written
51.2complaint from a county assessor in order to conduct an investigation and recommend an
51.3action to the board. Active investigative data relating to the investigation of complaints
51.4against an assessor by the commissioner of revenue are subject to section 13.39.
51.5EFFECTIVE DATE.This section is effective July 1, 2013.
51.6 Sec. 17. Minnesota Statutes 2012, section 273.117, is amended to read:
51.7273.117 CONSERVATION PROPERTY TAX VALUATION.
51.8 The value of real property which is subject to a conservation restriction or easement
51.9may be adjusted shall not be reduced by the assessor if:
51.10 (a) the restriction or easement is for a conservation purpose as defined in section
51.1184.64, subdivision 2
, and is recorded on the property; and
51.12 (b) the property is being used in accordance with the terms of the conservation
51.13restriction or easement.
51.14This section does not apply to (1) conservation restrictions or easements covering
51.15riparian buffers along lakes, rivers, and streams that are used for water quantity or quality
51.16control; or (2) to easements in a county that has adopted, by referendum, a program to
51.17protect farmland and natural areas since 1999.
51.18EFFECTIVE DATE.This section is effective for assessment year 2013 and
51.19thereafter, and for taxes payable in 2014 and thereafter.
51.20 Sec. 18. Minnesota Statutes 2012, section 273.13, subdivision 25, is amended to read:
51.21 Subd. 25. Class 4. (a) Class 4a is residential real estate containing four or more
51.22units and used or held for use by the owner or by the tenants or lessees of the owner
51.23as a residence for rental periods of 30 days or more, excluding property qualifying for
51.24class 4d. Class 4a also includes hospitals licensed under sections144.50 to
144.56 , other
51.25than hospitals exempt under section272.02 , and contiguous property used for hospital
51.26purposes, without regard to whether the property has been platted or subdivided. The
51.27market value of class 4a property has a class rate of 1.25 percent.
51.28 (b) Class 4b includes:
51.29 (1) residential real estate containing less than four units that does not qualify as class
51.304bb, other than seasonal residential recreational property;
51.31 (2) manufactured homes not classified under any other provision;
51.32 (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead
51.33farm classified under subdivision 23, paragraph (b) containing two or three units; and
52.1 (4) unimproved property that is classified residential as determined under subdivision
52.233.
52.3 The market value of class 4b property has a class rate of 1.25 percent.
52.4 (c) Class 4bb includes:
52.5(1) nonhomestead residential real estate containing one unit, other than seasonal
52.6residential recreational property; and
52.7(2) a single family dwelling, garage, and surrounding one acre of property on a
52.8nonhomestead farm classified under subdivision 23, paragraph (b).
52.9 Class 4bb property has the same class rates as class 1a property under subdivision 22.
52.10 Property that has been classified as seasonal residential recreational property at
52.11any time during which it has been owned by the current owner or spouse of the current
52.12owner does not qualify for class 4bb.
52.13 (d) Class 4c property includes:
52.14 (1) except as provided in subdivision 22, paragraph (c), real and personal property
52.15devoted to commercial temporary and seasonal residential occupancy for recreation
52.16purposes, for not more than 250 days in the year preceding the year of assessment. For
52.17purposes of this clause, property is devoted to a commercial purpose on a specific day
52.18if any portion of the property is used for residential occupancy, and a fee is charged for
52.19residential occupancy. Class 4c property under this clause must contain three or more
52.20rental units. A "rental unit" is defined as a cabin, condominium, townhouse, sleeping room,
52.21or individual camping site equipped with water and electrical hookups for recreational
52.22vehicles. A camping pad offered for rent by a property that otherwise qualifies for class
52.234c under this clause is also class 4c under this clause regardless of the term of the rental
52.24agreement, as long as the use of the camping pad does not exceed 250 days. In order for a
52.25property to be classified under this clause, either (i) the business located on the property
52.26must provide recreational activities, at least 40 percent of the annual gross lodging receipts
52.27related to the property must be from business conducted during 90 consecutive days,
52.28and either (A) at least 60 percent of all paid bookings by lodging guests during the year
52.29must be for periods of at least two consecutive nights; or (B) at least 20 percent of the
52.30annual gross receipts must be from charges for providing recreational activities, or (ii) the
52.31business must contain 20 or fewer rental units, and must be located in a township or a city
52.32with a population of 2,500 or less located outside the metropolitan area, as defined under
52.33section473.121 , subdivision 2, that contains a portion of a state trail administered by the
52.34Department of Natural Resources. For purposes of item (i)(A), a paid booking of five or
52.35more nights shall be counted as two bookings. Class 4c property also includes commercial
52.36use real property used exclusively for recreational purposes in conjunction with other class
53.14c property classified under this clause and devoted to temporary and seasonal residential
53.2occupancy for recreational purposes, up to a total of two acres, provided the property is
53.3not devoted to commercial recreational use for more than 250 days in the year preceding
53.4the year of assessment and is located within two miles of the class 4c property with which
53.5it is used. In order for a property to qualify for classification under this clause, the owner
53.6must submit a declaration to the assessor designating the cabins or units occupied for 250
53.7days or less in the year preceding the year of assessment by January 15 of the assessment
53.8year. Those cabins or units and a proportionate share of the land on which they are located
53.9must be designated class 4c under this clause as otherwise provided. The remainder of the
53.10cabins or units and a proportionate share of the land on which they are located will be
53.11designated as class 3a. The owner of property desiring designation as class 4c property
53.12under this clause must provide guest registers or other records demonstrating that the units
53.13for which class 4c designation is sought were not occupied for more than 250 days in the
53.14year preceding the assessment if so requested. The portion of a property operated as a
53.15(1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) other
53.16nonresidential facility operated on a commercial basis not directly related to temporary and
53.17seasonal residential occupancy for recreation purposes does not qualify for class 4c. For
53.18the purposes of this paragraph, "recreational activities" means renting ice fishing houses,
53.19boats and motors, snowmobiles, downhill or cross-country ski equipment; providing
53.20marina services, launch services, or guide services; or selling bait and fishing tackle;
53.21 (2) qualified property used as a golf course if:
53.22 (i) it is open to the public on a daily fee basis. It may charge membership fees or
53.23dues, but a membership fee may not be required in order to use the property for golfing,
53.24and its green fees for golfing must be comparable to green fees typically charged by
53.25municipal courses; and
53.26 (ii) it meets the requirements of section273.112, subdivision 3 , paragraph (d).
53.27 A structure used as a clubhouse, restaurant, or place of refreshment in conjunction
53.28with the golf course is classified as class 3a property;
53.29 (3) real property up to a maximum of three acres of land owned and used by a
53.30nonprofit community service oriented organization and not used for residential purposes
53.31on either a temporary or permanent basis, provided that:
53.32 (i) the property is not used for a revenue-producing activity for more than six days
53.33in the calendar year preceding the year of assessment; or
53.34 (ii) the organization makes annual charitable contributions and donations at least
53.35equal to the property's previous year's property taxes and the property is allowed to be
54.1used for public and community meetings or events for no charge, as appropriate to the
54.2size of the facility.
54.3 For purposes of this clause:
54.4 (A) "charitable contributions and donations" has the same meaning as lawful
54.5gambling purposes under section349.12, subdivision 25 , excluding those purposes
54.6relating to the payment of taxes, assessments, fees, auditing costs, and utility payments;
54.7 (B) "property taxes" excludes the state general tax;
54.8 (C) a "nonprofit community service oriented organization" means any corporation,
54.9society, association, foundation, or institution organized and operated exclusively for
54.10charitable, religious, fraternal, civic, or educational purposes, and which is exempt from
54.11federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal
54.12Revenue Code; and
54.13 (D) "revenue-producing activities" shall include but not be limited to property or that
54.14portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt
54.15liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling
54.16alley, a retail store, gambling conducted by organizations licensed under chapter 349, an
54.17insurance business, or office or other space leased or rented to a lessee who conducts a
54.18for-profit enterprise on the premises.
54.19 Any portion of the property not qualifying under either item (i) or (ii) is class 3a.
54.20The use of the property for social events open exclusively to members and their guests
54.21for periods of less than 24 hours, when an admission is not charged nor any revenues are
54.22received by the organization shall not be considered a revenue-producing activity.
54.23 The organization shall maintain records of its charitable contributions and donations
54.24and of public meetings and events held on the property and make them available upon
54.25request any time to the assessor to ensure eligibility. An organization meeting the
54.26requirement under item (ii) must file an application by May 1 with the assessor for
54.27eligibility for the current year's assessment. The commissioner shall prescribe a uniform
54.28application form and instructions;
54.29 (4) postsecondary student housing of not more than one acre of land that is owned by
54.30a nonprofit corporation organized under chapter 317A and is used exclusively by a student
54.31cooperative, sorority, or fraternity for on-campus housing or housing located within two
54.32miles of the border of a college campus;
54.33 (5)(i) manufactured home parks as defined in section327.14, subdivision 3 ,
54.34excluding manufactured home parks described in section273.124, subdivision 3a , and (ii)
54.35manufactured home parks as defined in section327.14, subdivision 3 , that are described in
54.36section273.124, subdivision 3a ;
55.1 (6) real property that is actively and exclusively devoted to indoor fitness, health,
55.2social, recreational, and related uses, is owned and operated by a not-for-profit corporation,
55.3and is located within the metropolitan area as defined in section473.121, subdivision 2 ;
55.4 (7) a leased or privately owned noncommercial aircraft storage hangar not exempt
55.5under section272.01, subdivision 2 , and the land on which it is located, provided that:
55.6 (i) the land is on an airport owned or operated by a city, town, county, Metropolitan
55.7Airports Commission, or group thereof; and
55.8 (ii) the land lease, or any ordinance or signed agreement restricting the use of the
55.9leased premise, prohibits commercial activity performed at the hangar.
55.10 If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must
55.11be filed by the new owner with the assessor of the county where the property is located
55.12within 60 days of the sale;
55.13 (8) a privately owned noncommercial aircraft storage hangar not exempt under
55.14section272.01, subdivision 2 , and the land on which it is located, provided that:
55.15 (i) the land abuts a public airport; and
55.16 (ii) the owner of the aircraft storage hangar provides the assessor with a signed
55.17agreement restricting the use of the premises, prohibiting commercial use or activity
55.18performed at the hangar; and
55.19 (9) residential real estate, a portion of which is used by the owner for homestead
55.20purposes, and that is also a place of lodging, if all of the following criteria are met:
55.21 (i) rooms are provided for rent to transient guests that generally stay for periods
55.22of 14 or fewer days;
55.23 (ii) meals are provided to persons who rent rooms, the cost of which is incorporated
55.24in the basic room rate;
55.25 (iii) meals are not provided to the general public except for special events on fewer
55.26than seven days in the calendar year preceding the year of the assessment; and
55.27 (iv) the owner is the operator of the property.
55.28 The market value subject to the 4c classification under this clause is limited to
55.29five rental units. Any rental units on the property in excess of five, must be valued and
55.30assessed as class 3a. The portion of the property used for purposes of a homestead by the
55.31owner must be classified as class 1a property under subdivision 22;
55.32 (10) real property up to a maximum of three acres and operated as a restaurant
55.33as defined under section157.15, subdivision 12 , provided it: (A) is located on a lake
55.34as defined under section103G.005, subdivision 15 , paragraph (a), clause (3); and (B)
55.35is either devoted to commercial purposes for not more than 250 consecutive days, or
55.36receives at least 60 percent of its annual gross receipts from business conducted during
56.1four consecutive months. Gross receipts from the sale of alcoholic beverages must be
56.2included in determining the property's qualification under subitem (B). The property's
56.3primary business must be as a restaurant and not as a bar. Gross receipts from gift shop
56.4sales located on the premises must be excluded. Owners of real property desiring 4c
56.5classification under this clause must submit an annual declaration to the assessor by
56.6February 1 of the current assessment year, based on the property's relevant information for
56.7the preceding assessment year;
56.8(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used
56.9as a marina, as defined in section86A.20, subdivision 5 , which is made accessible to
56.10the public and devoted to recreational use for marina services. The marina owner must
56.11annually provide evidence to the assessor that it provides services, including lake or river
56.12access to the public by means of an access ramp or other facility that is either located on
56.13the property of the marina or at a publicly owned site that abuts the property of the marina.
56.14No more than 800 feet of lakeshore may be included in this classification. Buildings used
56.15in conjunction with a marina for marina services, including but not limited to buildings
56.16used to provide food and beverage services, fuel, boat repairs, or the sale of bait or fishing
56.17tackle, are classified as class 3a property; and
56.18(12) real and personal property devoted to noncommercial temporary and seasonal
56.19residential occupancy for recreation purposes.
56.20 Class 4c property has a class rate of 1.5 percent of market value, except that (i) each
56.21parcel of noncommercial seasonal residential recreational property under clause (12)
56.22has the same class rates as class 4bb property, (ii) manufactured home parks assessed
56.23under clause (5), item (i), have the same class rate as class 4b property, and the market
56.24value of manufactured home parks assessed under clause (5), item (ii), has the same class
56.25rate as class 4d property if more than 50 percent of the lots in the park are occupied by
56.26shareholders in the cooperative corporation or association and a class rate of one percent if
56.2750 percent or less of the lots are so occupied, (iii) commercial-use seasonal residential
56.28recreational property and marina recreational land as described in clause (11), has a
56.29class rate of one percent for the first $500,000 of market value, and 1.25 percent for the
56.30remaining market value, (iv) the market value of property described in clause (4) has a
56.31class rate of one percent, (v) the market value of property described in clauses (2), (6), and
56.32(10) has a class rate of 1.25 percent, and (vi) that portion of the market value of property
56.33in clause (9) qualifying for class 4c property has a class rate of 1.25 percent.
56.34 (e) Class 4d property is qualifying low-income rental housing certified to the assessor
56.35by the Housing Finance Agency under section273.128, subdivision 3 . If only a portion
56.36of the units in the building qualify as low-income rental housing units as certified under
57.1section273.128, subdivision 3 , only the proportion of qualifying units to the total number
57.2of units in the building qualify for class 4d. The remaining portion of the building shall be
57.3classified by the assessor based upon its use. Class 4d also includes the same proportion of
57.4land as the qualifying low-income rental housing units are to the total units in the building.
57.5For all properties qualifying as class 4d, the market value determined by the assessor must
57.6be based on the normal approach to value using normal unrestricted rents.
57.7 (f) The first tier of market value of class 4d property has a class rate of 0.75 percent.
57.8 The remaining value of class 4d property has a class rate of 0.25 percent. For the purposes
57.9of this paragraph, the "first tier of market value of class 4d property" means the market
57.10value of each housing unit up to the first tier limit. For the purposes of this paragraph, all
57.11class 4d property value must be assigned to individual housing units. The first tier limit is
57.12$100,000 for assessment year 2014. For subsequent years, the limit is adjusted each year
57.13by the average statewide change in estimated market value of property classified as class 4a
57.14and 4d under this section for the previous assessment year, excluding valuation change due
57.15to new construction, rounded to the nearest $1,000, provided, however, that the limit may
57.16never be less than $100,000. Beginning with assessment year 2015, the commissioner of
57.17revenue must certify the limit for each assessment year by November 1 of the previous year.
57.18EFFECTIVE DATE.This section is effective beginning with assessment year 2014.
57.19 Sec. 19. Minnesota Statutes 2012, section 279.01, subdivision 1, is amended to read:
57.20 Subdivision 1. Due dates; penalties. Except as provided insubdivision subdivisions
57.21 3or 4 to 5, on May 16 or 21 days after the postmark date on the envelope containing the
57.22property tax statement, whichever is later, a penalty accrues and thereafter is charged upon
57.23all unpaid taxes on real estate on the current lists in the hands of the county treasurer. The
57.24penalty is at a rate of two percent on homestead property until May 31 and four percent on
57.25June 1. The penalty on nonhomestead property is at a rate of four percent until May 31 and
57.26eight percent on June 1. This penalty does not accrue until June 1 of each year, or 21 days
57.27after the postmark date on the envelope containing the property tax statements, whichever
57.28is later, on commercial use real property used for seasonal residential recreational purposes
57.29and classified as class 1c or 4c, and on other commercial use real property classified as
57.30class 3a, provided that over 60 percent of the gross income earned by the enterprise on the
57.31class 3a property is earned during the months of May, June, July, and August. In order for
57.32the first half of the tax due on class 3a property to be paid after May 15 and before June 1,
57.33or 21 days after the postmark date on the envelope containing the property tax statement,
57.34whichever is later, without penalty, the owner of the property must attach an affidavit
57.35to the payment attesting to compliance with the income provision of this subdivision.
58.1Thereafter, for both homestead and nonhomestead property, on the first day of each month
58.2beginning July 1, up to and including October 1 following, an additional penalty of one
58.3percent for each month accrues and is charged on all such unpaid taxes provided that if the
58.4due date was extended beyond May 15 as the result of any delay in mailing property tax
58.5statements no additional penalty shall accrue if the tax is paid by the extended due date. If
58.6the tax is not paid by the extended due date, then all penalties that would have accrued if
58.7the due date had been May 15 shall be charged. When the taxes against any tract or lot
58.8exceed $100, one-half thereof may be paid prior to May 16 or 21 days after the postmark
58.9date on the envelope containing the property tax statement, whichever is later; and, if so
58.10paid, no penalty attaches; the remaining one-half may be paid at any time prior to October
58.1116 following, without penalty; but, if not so paid, then a penalty of two percent accrues
58.12thereon for homestead property and a penalty of four percent on nonhomestead property.
58.13Thereafter, for homestead property, on the first day of November an additional penalty of
58.14four percent accrues and on the first day of December following, an additional penalty of
58.15two percent accrues and is charged on all such unpaid taxes. Thereafter, for nonhomestead
58.16property, on the first day of November and December following, an additional penalty of
58.17four percent for each month accrues and is charged on all such unpaid taxes. If one-half of
58.18such taxes are not paid prior to May 16 or 21 days after the postmark date on the envelope
58.19containing the property tax statement, whichever is later, the same may be paid at any time
58.20prior to October 16, with accrued penalties to the date of payment added, and thereupon
58.21no penalty attaches to the remaining one-half until October 16 following.
58.22 This section applies to payment of personal property taxes assessed against
58.23improvements to leased property, except as provided by section277.01, subdivision 3 .
58.24 A county may provide by resolution that in the case of a property owner that has
58.25multiple tracts or parcels with aggregate taxes exceeding $100, payments may be made in
58.26installments as provided in this subdivision.
58.27 The county treasurer may accept payments of more or less than the exact amount of
58.28a tax installment due. Payments must be applied first to the oldest installment that is due
58.29but which has not been fully paid. If the accepted payment is less than the amount due,
58.30payments must be applied first to the penalty accrued for the year or the installment being
58.31paid. Acceptance of partial payment of tax does not constitute a waiver of the minimum
58.32payment required as a condition for filing an appeal under section278.03 or any other law,
58.33nor does it affect the order of payment of delinquent taxes under section280.39 .
58.34 Sec. 20. Minnesota Statutes 2012, section 279.01, is amended by adding a subdivision
58.35to read:
59.1 Subd. 5. Federal active service exception. In the case of a homestead property
59.2owned by an individual who is on federal active service, as defined in section 190.05,
59.3subdivision 5c, as a member of the National Guard or a reserve component, a four-month
59.4grace period is granted for complying with the due dates imposed by subdivision 1. During
59.5this period, no late fees or penalties shall accrue against the property. The due date for
59.6property taxes owed under this chapter for an individual covered by this subdivision shall
59.7be September 15 for taxes due on May 15, and February 15 of the following year for taxes
59.8due on October 15. A taxpayer making a payment under this subdivision must accompany
59.9the payment with a signed copy of the taxpayer's orders or form DD214 showing the
59.10dates of active service which clearly indicate that the taxpayer was in active service as a
59.11member of the National Guard or a reserve component on the date the payment was due.
59.12This grace period applies to all homestead property owned by individuals on federal active
59.13service, as herein defined, for all of that property's due dates which fall on a day that is
59.14included in the taxpayer's federal active service.
59.15 Sec. 21. Minnesota Statutes 2012, section 279.02, is amended to read:
59.16279.02 DUTIES OF COUNTY AUDITOR AND TREASURER.
59.17 Subdivision 1. Delinquent property; rates. On the first business day in January, of
59.18each year, the county treasurer shall return the tax lists on hand to the county auditor, who
59.19shall compare the same with the statements receipted for by the treasurer on file in the
59.20auditor's office and each tract or lot of real property against which the taxes, or any part
59.21thereof, remain unpaid, shall be deemed delinquent, and thereupon an additional penalty
59.22of two percent on the amount of the original tax remaining unpaid shall immediately
59.23accrue and thereafter be charged upon all such delinquent taxes; and any auditor who
59.24shall make out and deliver any statement of delinquent taxes without including therein
59.25the penalties imposed by law, and any treasurer who shall receive payment of such taxes
59.26without including in such payment all items as shown on the auditor's statement, shall be
59.27liable to the county for the amounts of any items omitted.
59.28 Subd. 2. Federal active service exception. Notwithstanding subdivision 1, a
59.29homestead property owned by an individual who is on federal active service, as defined
59.30in section 190.05, subdivision 5c, as a member of the National Guard or a reserve
59.31component, shall not be deemed delinquent under this section if the due dates imposed
59.32under section 279.01 fall on a day in which the individual was on federal active service.
59.33 Sec. 22. Minnesota Statutes 2012, section 279.37, subdivision 1a, is amended to read:
60.1 Subd. 1a. Class 3a property. (a) The delinquent taxes upon a parcel of property
60.2which was classified class 3a, for the previous year's assessmentand had a total market
60.3value of $500,000 or less for that same assessment shall be eligible to be composed into a
60.4confession of judgment with the approval of the county auditor. Property qualifying under
60.5this subdivision shall be subject to the same provisions as provided in this section except
60.6as provided in paragraphs (b) to(d) (f).
60.7 (b) Current year taxes and penalty due at the time the confession of judgment
60.8is entered must be paid.
60.9 (c) The down payment must include all special assessments due in the current tax
60.10year, all delinquent special assessments, and 20 percent of the ad valorem tax, penalties,
60.11and interest accrued against the parcel. The balance remaining is payable in four equal
60.12annual installments. A municipality as defined in section 429.011, cities of the first class,
60.13and other special assessment authorities, that have certified special assessments against
60.14any parcel of property, may, through resolution, waive the requirement of payment of all
60.15current and delinquent special assessments at the time the confession is entered. If the
60.16municipality, city, or authority grants the waiver, 100 percent of all current year taxes,
60.17special assessments, and penalties due at the time, along with 20 percent of all delinquent
60.18taxes, special assessments, penalties, interest, and fees must be paid. The balance
60.19remaining shall be subject to and included in the installment plan.
60.20(d) When there are current and delinquent special assessments certified and billed
60.21against a parcel, the assessment authority or municipality as defined in section 429.011
60.22may abate under section 375.192, subdivision 2, all special assessments and the penalty
60.23and interest affiliated with the special assessments, and reassess the special assessments,
60.24penalties, and interest accrued thereon, under section 429.071, subdivision 2. The
60.25municipality shall notify the county auditor of its intent to reassess as a precondition
60.26to the entry of the confession of judgment. Upon the notice to abate and reassess, the
60.27municipality shall, through resolution, notify the county auditor to remove all current
60.28and delinquent special assessments and the accrued penalty and interest on the special
60.29assessments, and the payment of all or a portion of the current and delinquent assessments
60.30shall not be required as part of the down payment due at the time the confession of
60.31judgment is entered in accordance with paragraph (c).
60.32(d) (e) The amounts entered in judgment bear interest at the rate provided in section
60.33279.03, subdivision 1a
, commencing with the date the judgment is entered. The interest
60.34rate is subject to change each year on the unpaid balance in the manner provided in section
60.35279.03, subdivision 1a
.
61.1(f) The county auditor may require conditions on properties including, but not
61.2limited to, environmental remediation action plan requirements, restrictions, or covenants,
61.3when considering a request for approval of eligibility for composition into a confession of
61.4judgment for delinquent taxes upon a parcel of property which was classified class 3a for
61.5the previous year's assessment.
61.6 Sec. 23. Minnesota Statutes 2012, section 279.37, subdivision 2, is amended to read:
61.7 Subd. 2. Installment payments. The owner of any such parcel, or any person to
61.8whom the right to pay taxes has been given by statute, mortgage, or other agreement, may
61.9make and file with the county auditor of the county in which the parcel is located a written
61.10offer to pay the current taxes each year before they become delinquent, or to contest the
61.11taxes under Minnesota Statutes 1941, sections278.01 to
278.13 , and agree to confess
61.12judgment for the amount provided, as determined by the county auditor. By filing the
61.13offer, the owner waives all irregularities in connection with the tax proceedings affecting
61.14the parcel and any defense or objection which the owner may have to the proceedings, and
61.15also waives the requirements of any notice of default in the payment of any installment or
61.16interest to become due pursuant to the composite judgment to be so entered. Unless the
61.17property is subject to subdivision 1a, with the offer, the owner shall (i) tender one-tenth of
61.18the amount of the delinquent taxes, costs, penalty, and interest, andshall (ii) tender all
61.19current year taxes and penalty due at the time the confession of judgment is entered. In the
61.20offer, the owner shall agree to pay the balance in nine equal installments, with interest as
61.21provided in section279.03 , payable annually on installments remaining unpaid from time
61.22to time, on or before December 31 of each year following the year in which judgment
61.23was confessed. The offer must be substantially as follows:
61.24"To the court administrator of the district court of ........... county, I, .....................,
61.25am the owner of the following described parcel of real estate located in ....................
61.26county, Minnesota:
61.27.............................. Upon that real estate there are delinquent taxes for the year ........., and
61.28prior years, as follows: (here insert year of delinquency and the total amount of delinquent
61.29taxes, costs, interest, and penalty). By signing this document I offer to confess judgment in
61.30the sum of $...... and waive all irregularities in the tax proceedings affecting these taxes and
61.31any defense or objection which I may have to them, and direct judgment to be entered for
61.32the amount stated above, minus the sum of $............, to be paid with this document, which
61.33is one-tenth or one-fifth of the amount of the taxes, costs, penalty, and interest stated above.
61.34I agree to pay the balance of the judgment in nine or four equal, annual installments, with
61.35interest as provided in section279.03 , payable annually, on the installments remaining
62.1unpaid. I agree to pay the installments and interest on or before December 31 of each year
62.2following the year in which this judgment is confessed and current taxes each year before
62.3they become delinquent, or within 30 days after the entry of final judgment in proceedings
62.4to contest the taxes under Minnesota Statutes, sections278.01 to
278.13 .
62.5Dated .............., ......."
62.6 Sec. 24. Minnesota Statutes 2012, section 281.14, is amended to read:
62.7281.14 EXPIRATION OF TIME FOR REDEMPTION.
62.8The time for redemption from any tax sale, whether made to the state or to a private
62.9person, shall not expire until notice of expiration of redemption, as provided in section
62.10281.13
62.11 Sec. 25. Minnesota Statutes 2012, section 281.17, is amended to read:
62.12281.17 PERIOD FOR REDEMPTION.
62.13Except for properties for which the period of redemption has been limited under
62.14sections281.173 and
281.174 , the following periods for redemption apply.
62.15The period of redemption for all lands sold to the state at a tax judgment sale shall
62.16be three years from the date of sale to the state of Minnesotaif the land is within an
62.17incorporated area unless it is: (a) nonagricultural homesteaded land as defined in section
62.18273.13, subdivision 22; (b) homesteaded agricultural land as defined in section
273.13,
62.19subdivision 23
, paragraph (a); or (c) seasonal residential recreational land as defined in
62.20section
273.13, subdivision 22, paragraph (c), or 25, paragraph (d), clause (1), for which
62.21the period of redemption is five years from the date of sale to the state of Minnesota.
62.22The period of redemption for homesteaded lands as defined in section273.13,
62.23subdivision 22 , located in a targeted neighborhood as defined in Laws 1987, chapter 386,
62.24article 6, section 4, and sold to the state at a tax judgment sale is three years from the date
62.25of sale. The period of redemption for all lands located in a targeted neighborhood as
62.26defined in Laws 1987, chapter 386, article 6, section 4, except (1) homesteaded lands as
62.27defined in section273.13, subdivision 22 , and (2) for periods of redemption beginning
62.28after June 30, 1991, but before July 1, 1996, lands located in the Loring Park targeted
62.29neighborhood on which a notice of lis pendens has been served, and sold to the state at a
62.30tax judgment sale is one year from the date of sale.
62.31The period of redemption for all real property constituting a mixed municipal solid
62.32waste disposal facility that is a qualified facility under section115B.39, subdivision 1 , is
62.33one year from the date of the sale to the state of Minnesota.
63.1The period of redemption for all other lands sold to the state at a tax judgment
63.2sale shall be five years from the date of sale, except that the period of redemption for
63.3nonhomesteaded agricultural land as defined in section
273.13, subdivision 23, paragraph
63.4(b), shall be two years from the date of sale if at that time that property is owned by a
63.5person who owns one or more parcels of property on which taxes are delinquent, and the
63.6delinquent taxes are more than 25 percent of the prior year's school district levy.
63.7 Sec. 26. Minnesota Statutes 2012, section 287.05, is amended by adding a subdivision
63.8to read:
63.9 Subd. 10. Hennepin and Ramsey Counties. For properties located in Hennepin
63.10and Ramsey Counties, the county may impose an additional mortgage registry tax as
63.11defined in sections 383A.80 and 383B.80.
63.12EFFECTIVE DATE.This section is effective for deeds and mortgages
63.13acknowledged on or after July 1, 2013.
63.14 Sec. 27. [287.40] HENNEPIN AND RAMSEY COUNTIES.
63.15 For properties located in Hennepin and Ramsey Counties, the county may impose an
63.16additional deed tax as defined in sections 383A.80 and 383B.80.
63.17EFFECTIVE DATE.This section is effective for deeds and mortgages
63.18acknowledged on or after July 1, 2013.
63.19 Sec. 28. Minnesota Statutes 2012, section 383A.80, subdivision 4, is amended to read:
63.20 Subd. 4. Expiration. The authority to impose the tax under this section expires
63.21January 1,2013 2028.
63.22EFFECTIVE DATE.This section is effective for all deeds and mortgages
63.23acknowledged on or after July 1, 2013.
63.24 Sec. 29. Minnesota Statutes 2012, section 383B.80, subdivision 4, is amended to read:
63.25 Subd. 4. Expiration. The authority to impose the tax under this section expires
63.26January 1,2013 2028.
63.27EFFECTIVE DATE.This section is effective for all deeds and mortgages
63.28acknowledged on or after July 1, 2013.
63.29 Sec. 30. Minnesota Statutes 2012, section 428A.101, is amended to read:
64.1428A.101 DEADLINE FOR SPECIAL SERVICE DISTRICT UNDER
64.2GENERAL LAW.
64.3The establishment of a new special service district after June 30,2013 2028, requires
64.4enactment of a special law authorizing the establishment.
64.5EFFECTIVE DATE.This section is effective the day following final enactment.
64.6 Sec. 31. Minnesota Statutes 2012, section 428A.21, is amended to read:
64.7428A.21 DEADLINE FOR HOUSING IMPROVEMENT DISTRICTS UNDER
64.8GENERAL LAW.
64.9The establishment of a new housing improvement area after June 30,2013 2028,
64.10requires enactment of a special law authorizing the establishment of the area.
64.11EFFECTIVE DATE.This section is effective the day following final enactment.
64.12 Sec. 32. Minnesota Statutes 2012, section 473F.08, subdivision 3a, is amended to read:
64.13 Subd. 3a. Bloomington computation. (a) Beginning in 1987 and each subsequent
64.14year through 1998, the city of Bloomington shall determine the interest payments for that
64.15year for the bonds which have been sold for the highway improvements pursuant to Laws
64.161986, chapter 391, section 2, paragraph (g). Effective for property taxes payable in 1988
64.17through property taxes payable in 1999, after the Hennepin County auditor has computed
64.18the areawide portion of the levy for the city of Bloomington pursuant to subdivision 3,
64.19clause (a), the auditor shall annually add a dollar amount to the city of Bloomington's
64.20areawide portion of the levy equal to the amount which has been certified to the auditor
64.21by the city of Bloomington for the interest payments for that year for the bonds which
64.22were sold for highway improvements. The total areawide portion of the levy for the city
64.23of Bloomington including the additional amount for interest repayment certified pursuant
64.24to this subdivision shall be certified by the Hennepin County auditor to the administrative
64.25auditor pursuant to subdivision 5. The Hennepin County auditor shall distribute to the
64.26city of Bloomington the additional areawide portion of the levy computed pursuant to this
64.27subdivision at the same time that payments are made to the other counties pursuant to
64.28subdivision 7a. For property taxes payable from the year 2009 through2018 2014, the
64.29Hennepin County auditor shall adjust Bloomington's contribution to the areawide gross tax
64.30capacity upward each year by a value equal to ten percent of the total additional areawide
64.31levy distributed to Bloomington under this subdivision from 1988 to 1999, divided by the
64.32areawide tax rate for taxes payable in the previous year.
65.1(b) For property taxes payable from 2015 through 2018, the administrative auditor
65.2shall increase the areawide net tax capacity each year by an amount equal to ten percent of
65.3the total additional areawide levy distributed to Bloomington under this subdivision from
65.41988 to 1999, divided by the areawide tax rate for taxes payable in the previous year. The
65.5administrative auditor must notify the commissioner of revenue of the amount determined
65.6by multiplying the increase in the areawide net tax capacity by the areawide tax rate
65.7determined under subdivision 5. The commissioner of revenue must pay the amount
65.8determined each payable year to the administrative auditor in two installments on July 10
65.9and November 10, for distribution and settlement as provided in subdivision 7a.
65.10(c) A sum sufficient to meet the obligations under this subdivision is annually
65.11appropriated from the general fund to the commissioner of revenue.
65.12EFFECTIVE DATE.This section is effective beginning with taxes payable in 2015.
65.13 Sec. 33. Laws 1988, chapter 645, section 3, as amended by Laws 1999, chapter 243,
65.14article 6, section 9, Laws 2000, chapter 490, article 6, section 15, and Laws 2008, chapter
65.15154, article 2, section 30, is amended to read:
65.16 Sec. 3. TAX; PAYMENT OF EXPENSES.
65.17 (a) The tax levied by the hospital district under Minnesota Statutes, section447.34 ,
65.18must not be levied at a rate that exceeds the amount authorized to be levied under that
65.19section. The proceeds of the tax may be used for all purposes of the hospital district,
65.20except as provided in paragraph (b).
65.21 (b) 0.015 percent of taxable market value of the tax in paragraph (a) may be used
65.22solely by the Cook ambulance service and the Orr ambulance service for the purpose of
65.23capital expenditures as it relates to:
65.24 (1) ambulance acquisitions for the Cook ambulance service and the Orr ambulance
65.25serviceand not;
65.26 (2) attached and portable equipment for use in and for the ambulances; and
65.27 (3) parts and replacement parts for maintenance and repair of the ambulances.
65.28The money may not be used for administrative, operation, or salary expenses.
65.29 (c) The part of the levy referred to in paragraph (b) must be administered by the
65.30Cook Hospital and passed on in equal amounts directly to the Cook area ambulance
65.31service board and the city of Orr to beheld in trust until funding for a new ambulance is
65.32needed by either the Cook ambulance service or the Orr ambulance service used for the
65.33purposes in paragraph (b).
65.34 Sec. 34. Laws 1999, chapter 243, article 6, section 11, is amended to read:
66.1 Sec. 11. CEMETERY LEVY FOR SAWYER BY CARLTON COUNTY.
66.2Subdivision 1. Levy authorized. Notwithstanding other law to the contrary, the
66.3Carlton county board of commissioners may annually levy in and for the unorganized
66.4township territory of Sawyer an amount up to $1,000 annually for cemetery purposes,
66.5beginning with taxes payable in 2000 and ending with taxes payable in 2009.
66.6Subd. 2. Effective date. This section is effective June 1, 1999, without local
66.7approval.
66.8EFFECTIVE DATE; LOCAL APPROVAL.This section applies to taxes
66.9payable in 2014 and thereafter, and is effective the day after the Carlton County Board
66.10of Commissioners and its chief clerical officer timely complete their compliance with
66.11Minnesota Statutes, section 645.021, subdivisions 2 and 3.
66.12 Sec. 35. Laws 2008, chapter 366, article 5, section 33, the effective date, is amended to
66.13read:
66.14EFFECTIVE DATE.This section is effective for taxes levied in 2008, payable in
66.152009, and is repealed effective for taxes levied in2013 2018, payable in 2014 2019,
66.16and thereafter.
66.17EFFECTIVE DATE.This section is effective beginning with taxes payable in 2014.
66.18 Sec. 36. Laws 2009, chapter 88, article 2, section 46, subdivision 1, is amended to read:
66.19 Subdivision 1. Agreement. The city of Cloquet and Perch Lake Township, by
66.20resolution of each of their governing bodies, may establish the Cloquet Area Fire and
66.21Ambulance Taxing District for the purpose of providing fireand or ambulance services,
66.22or both, throughout the district. In this section, "municipality" means home rule charter
66.23and statutory cities, towns, and Indian tribes. The district may exercise all the powers
66.24relating to fire and ambulance services of the municipalities that receive fireand or
66.25 ambulance services, or both, from the district. Upon application, any other municipality
66.26that is contiguous to a municipality that is a member of the district may join the district
66.27with the agreement of the municipalities that comprise the district at the time of its
66.28application to join.
66.29 Sec. 37. Laws 2009, chapter 88, article 2, section 46, subdivision 3, is amended to read:
66.30 Subd. 3. Tax. The district board may impose a property tax on taxable propertyin
66.31the district as provided in this subdivision. This The board shall annually determine the
66.32total amount of the levy that is attributable to the cost of providing fire services and the cost
67.1of providing ambulance services within the primary service area. For those municipalities
67.2that only receive ambulance services, the costs for the provision of ambulance services
67.3shall be levied against taxable property within those municipalities at a rate necessary not
67.4to exceed 0.019 percent of the estimated market value. For those municipalities that
67.5receive both fire and ambulance services, the tax shall be imposed at a rate that does not
67.6exceed 0.2835 percent oftaxable estimated market value for taxes payable in 2010. The
67.7board shall annually determine the separate amounts of the levy that are attributable to the
67.8cost of providing fire services and the cost of providing ambulance services. Costs for the
67.9provision of ambulance services shall be levied against taxable property within the area of
67.10the district that receive the services. Costs for the provision of fire services shall be levied
67.11against taxable property within the area of the district that receive the services.
67.12When a member municipality opts to receive fire service from the district or an
67.13additional municipality becomes a member of the district, theadditional cost of providing
67.14ambulance and fire services to that municipality will community shall be determined by
67.15the board and added to the maximum levy amount.
67.16Each county auditor of a county that contains a municipality subject to the tax under
67.17this section must collect the tax and pay it to the Fire and Ambulance Special Taxing
67.18District. The district may also impose other fees or charges as allowed by law for the
67.19provision of fire and ambulance services.
67.20 Sec. 38. Laws 2010, chapter 389, article 1, section 12, the effective date, is amended to
67.21read:
67.22EFFECTIVE DATE.This section is effective for assessmentyears year 2010 and
67.232011, for taxes payable in 2011 and 2012 thereafter.
67.24EFFECTIVE DATE.This section is effective for assessment year 2012 and
67.25thereafter.
67.26 Sec. 39. MINNEAPOLIS AND ST. PAUL ENTERTAINMENT FACILITIES
67.27COORDINATION STUDY; APPROPRIATION.
67.28 Subdivision 1. Statement of purpose. The legislature finds that the national
67.29economic structure of professional sports financing, as directly or indirectly sanctioned by
67.30federal law, compels state and local governments in smaller metropolitan areas, such as
67.31Minneapolis and St. Paul, to help finance the construction and operation of venues for
67.32professional sports franchises as a condition of hosting these franchises. The burden and
67.33risk associated with providing this assistance justifies authorizing and directing the cities
68.1and any associated private entities to enter into arrangements that attempt to maximize
68.2the combined revenues of these facilities from direct users, including those unrelated to
68.3professional sports, such as, but not limited to, joint booking of concerts and other events,
68.4to minimize the cost and risk to general taxpayers. Any efforts to put in place such joint
68.5marketing, promotion, and scheduling arrangements by the cities or associated private
68.6entities, in the view of the legislature, is a petition for enactment of this or subsequent
68.7enabling legislation under the Noerr-Pennington doctrine or state action under the Parker
68.8antitrust doctrine. This legislation and any resulting arrangements are intended to minimize
68.9the potential burden on general taxpayers of financing and operation of the arenas.
68.10 Subd. 2. Study and report. On or before February 1, 2014, the cities of
68.11Minneapolis and St. Paul, in consultation with representatives of the primary professional
68.12sports team tenant of each arena, shall study and report to the legislature on establishing
68.13a joint governing structure to be responsible for the joint administration, financing, and
68.14operations of the facilities and the possible effects of joint governance on the finances of
68.15each arena and each city. The commissioner of administration, in consultation with the
68.16two cities, shall contract with an independent consultant to conduct all or a portion of the
68.17study. The cities of Minneapolis and St. Paul together shall pay one-half of the cost of the
68.18consultant contract. The commissioner may accept funding from other public entities and
68.19private organizations to pay for the contract. The study must:
68.20 (1) examine the current finances of each arena including past and projected costs and
68.21revenues, projected capital improvements, and the current and projected impact of each
68.22arena on each city's general fund;
68.23 (2) determine the impact of joint governance on the future finances of each city;
68.24 (3) examine joint scheduling, marketing, and promotion of events at the arenas,
68.25either within a joint governance structure or as separate entities; and
68.26 (4) estimate the amount of funding, if any, that would be required to operate and
68.27maintain the arenas under a joint governing structure.
68.28 Subd. 3. Appropriation. Up to $50,000 is appropriated to the commissioner of
68.29administration from the general fund for fiscal year 2014 to pay up to one-half of the costs
68.30of the consultant contract under subdivision 2.
68.31EFFECTIVE DATE.This section is effective the day following final enactment.
68.32 Sec. 40. REIMBURSEMENT FOR PROPERTY TAX ABATEMENTS;
68.33APPROPRIATION.
69.1 Subdivision 1. Reimbursement. The commissioner of revenue shall reimburse
69.2taxing jurisdictions for property tax abatements granted in Hennepin County under Laws
69.32011, First Special Session chapter 7, article 5, section 13, notwithstanding the time limits
69.4contained in that section. The reimbursements must be made to each taxing jurisdiction
69.5pursuant to the certification of the Hennepin County auditor.
69.6 Subd. 2. Appropriation. In fiscal year 2014 only, $336,000 is appropriated to the
69.7commissioner of revenue from the general fund to make the payments required in this
69.8section.
69.9EFFECTIVE DATE.This section is effective the day following final enactment.
69.10 Sec. 41. ST. PAUL BALLPARK PROPERTY TAX EXEMPTION; SPECIAL
69.11ASSESSMENT.
69.12Any real or personal property acquired, owned, leased, controlled, used, or occupied
69.13by the city of St. Paul for the primary purpose of providing a ballpark for a minor league
69.14baseball team is declared to be acquired, owned, leased, controlled, used, and occupied for
69.15public, governmental, and municipal purposes, and is exempt from ad valorem taxation
69.16by the state or any political subdivision of the state, provided that the properties are
69.17subject to special assessments levied by a political subdivision for a local improvement in
69.18amounts proportionate to and not exceeding the special benefit received by the properties
69.19from the improvement. In determining the special benefit received by the properties, no
69.20possible use of any of the properties in any manner different from their intended use
69.21for providing a minor league ballpark at the time may be considered. Notwithstanding
69.22Minnesota Statutes, section272.01 , subdivision 2, or
273.19 , real or personal property
69.23subject to a lease or use agreement between the city and another person for uses related to
69.24the purposes of the operation of the ballpark and related parking facilities is exempt from
69.25taxation regardless of the length of the lease or use agreement. This section, insofar as it
69.26provides an exemption or special treatment, does not apply to any real property that is
69.27leased for residential, business, or commercial development or other purposes different
69.28from those necessary to the provision and operation of the ballpark.
69.29EFFECTIVE DATE.This section is effective the day after compliance by the
69.30governing body of the city of St. Paul with Minnesota Statutes, section 645.021,
69.31subdivisions 2 and 3.
69.32 Sec. 42. PUBLIC ENTERTAINMENT FACILITY; PROPERTY TAX
69.33EXEMPTION; SPECIAL ASSESSMENT.
70.1Any real or personal property acquired, owned, leased, controlled, used, or occupied
70.2by the city of Minneapolis for the primary purpose of providing an arena for a professional
70.3basketball team is declared to be acquired, owned, leased, controlled, used, and occupied
70.4for public, governmental, and municipal purposes, and is exempt from ad valorem taxation
70.5by the state or any political subdivision of the state, provided that the properties are
70.6subject to special assessments levied by a political subdivision for a local improvement in
70.7amounts proportionate to and not exceeding the special benefit received by the properties
70.8from the improvement. In determining the special benefit received by the properties, no
70.9possible use of any of the properties in any manner different from their intended use for
70.10providing a professional basketball arena at the time may be considered. Notwithstanding
70.11Minnesota Statutes, section272.01 , subdivision 2, or
273.19 , real or personal property
70.12subject to a lease or use agreement between the city and another person for uses related to
70.13the purposes of the operation of the arena and related parking facilities is exempt from
70.14taxation regardless of the length of the lease or use agreement. This section, insofar as
70.15it provides an exemption or special treatment, does not apply to any real property that
70.16is leased for residential, business, or commercial development, or for other purposes
70.17different from those necessary to the provision and operation of the arena.
70.18EFFECTIVE DATE.This section is effective the day after compliance by the
70.19governing body of the city of Minneapolis with Minnesota Statutes, section 645.021,
70.20subdivisions 2 and 3.
70.21 Sec. 43. PUBLIC ENTERTAINMENT FACILITY; CONSTRUCTION
70.22MANAGER AT RISK.
70.23(a) For any real or personal property acquired, owned, leased, controlled, used, or
70.24occupied by the city of Minneapolis for the primary purpose of providing an arena for
70.25a professional basketball team, the city of Minneapolis may contract for construction,
70.26materials, supplies, and equipment in accordance with Minnesota Statutes, section
70.27471.345, except that the city may employ or contract with persons, firms, or corporations
70.28to perform one or more or all of the functions of an engineer, architect, construction
70.29manager, or program manager with respect to all or any part of a project to renovate,
70.30refurbish, and remodel the arena under either the traditional design-bid-build plan or
70.31construction manager at risk plan, or a combination thereof.
70.32(b) The city may prepare a request for proposals for one or more of the functions
70.33described in paragraph (a). The request must be published in a newspaper of general
70.34circulation. The city may prequalify offerors by issuing a request for qualifications, in
71.1advance of the request for proposals, and select a short list of responsible offerors to
71.2submit proposals.
71.3(c) As provided in the request for proposals, the city may conduct discussions and
71.4negotiations with responsible offerors in order to determine which proposal is most
71.5advantageous to the city and to negotiate the terms of an agreement. In conducting
71.6discussions, there shall be no disclosure of any information derived from proposals
71.7submitted by competing offerors and the content of all proposals is nonpublic data under
71.8Minnesota Statutes, chapter 13, until such time as a notice to award a contract is given
71.9by the city.
71.10(d) Upon agreement on the guaranteed maximum price, the construction manager
71.11or program manager may enter into contracts with subcontractors for labor, materials,
71.12supplies, and equipment for the renovation project through the process of public bidding,
71.13except that the construction manager or program manager may, with the consent of the city:
71.14(1) narrow the listing of eligible bidders to those that the construction manager
71.15or program manager determines to possess sufficient expertise to perform the intended
71.16functions;
71.17(2) award contracts to the subcontractors that the construction manager or program
71.18manager determines provide the best value under a request for proposals, as described in
71.19Minnesota Statutes, section 16C.28, subdivision 1, paragraph (a), clause (2), that are not
71.20required to be the lowest responsible bidder; and
71.21(3) for work the construction manager or program manager determines to be
71.22critical to the completion schedule, perform work with its own forces without soliciting
71.23competitive bids or proposals, if the construction manager or program manager provides
71.24evidence of competitive pricing.
71.25EFFECTIVE DATE.This section is effective the day after compliance by the
71.26governing body of the city of Minneapolis with Minnesota Statutes, section 645.021,
71.27subdivisions 2 and 3.
71.28 Sec. 44. EXTENSION OF PROPERTY TAX DUE DATE; COMMERCIAL
71.29SEASONAL RECREATIONAL PROPERTIES.
71.30Notwithstanding the provisions of Minnesota Statutes, section 279.01, subdivision
71.311, for taxes payable in 2013 only, the penalty on first-half property taxes does not accrue
71.32until June 15 on commercial use real property used for seasonal residential recreational
71.33purposes and classified as class 1c or 4c, and on other commercial use real property
71.34classified as class 3a, provided that over 60 percent of the gross income earned by the
71.35enterprise on the class 3a property is earned during the months of May, June, July, and
72.1August. In order for the first half of the tax due on class 3a property to be paid after May
72.215 and before June 15 without penalty, the owner of the property must attach an affidavit
72.3to the payment attesting to compliance with the income provision of this subdivision.
72.4EFFECTIVE DATE.This section is effective the day following final enactment.
72.5 Sec. 45. REPORT ON CLASS 4D TIER STRUCTURE.
72.6The commissioners of revenue and housing finance shall report to the legislature
72.7by January 31, 2015, on the implementation of a second tier of market value for class 4d
72.8property under Minnesota Statutes, section 273.13, subdivision 25, paragraph (f). The
72.9report shall include the number of class 4d properties subject to the second tier of market
72.10value for taxes payable in 2015 and the tax impact of the application of the second tier
72.11of market value. The report shall also include an analysis of the characteristics of the
72.12properties to which the second tier of market value applies, such as location, building
72.13type, and number of units.
72.14EFFECTIVE DATE.This section is effective July 1, 2013.
72.15 Sec. 46. REPORT AND STUDY ON CERTAIN PROPERTY USED IN
72.16BUSINESS AND PRODUCTION; ASSESSMENT MORATORIUM.
72.17 Subdivision 1. Study and report. (a) In order to facilitate a legislative review of
72.18property tax assessment procedures for facilities used in the production of biofuels, wine,
72.19beer, distilled beverages, and dairy products, and the development of standards and criteria
72.20for determining the taxable status of these facilities, the commissioner of revenue must
72.21conduct a study and report the findings of the study. The study must:
72.22(1) include a detailed survey of counties identifying the components and tax status
72.23of biofuel facilities;
72.24(2) identify the function of components in facilities of the affected industries;
72.25(3) consider the taxability for certain components related to size, function, and use;
72.26(4) develop recommendations for assessment guidelines and policies for facilities of
72.27the affected industries; and
72.28(5) identify possible impacts to state and local taxes resulting from study
72.29recommendations.
72.30(b) The commissioner shall request the involvement and participation of
72.31stakeholders, including the affected industries, the assessment community, and others
72.32identified by the commissioner.
73.1(c) The commissioner shall report the findings to the chairs of the house of
73.2representatives and senate committees with jurisdiction over taxes, agriculture, and
73.3economic development as well as the commissioners of agriculture and employment and
73.4economic development by February 1, 2014.
73.5 Subd. 2. Moratorium on changes in assessment practices. (a) For the 2013 and
73.62014 assessments, assessors must continue to use assessment practices or policies in effect
73.7in that county on January 2, 2012, for determining the taxable status of property used in
73.8the production of biofuels, wine, beer, distilled beverages, or dairy products.
73.9(b) An assessor must not change the taxable status of any existing property described
73.10in paragraph (a) from its status on January 2, 2012, unless the change is due to a change in
73.11the use of property, or to correct an error. For taxable properties, the assessor may change
73.12the estimated market value of the property and add value for any new construction that
73.13would have been taxable under practices and policies in place on January 2, 2012.
73.14(c) This subdivision expires on December 31, 2014. Any changes to the taxable
73.15status of the properties in paragraph (a) resulting from the study will not be effective
73.16until the 2015 assessment.
73.17 Sec. 47. PROPERTY TAX SAVINGS REPORT.
73.18(a) In addition to the certification of its proposed property tax levy under Minnesota
73.19Statutes, section 275.065, each city that has a population over 500 and each county shall
73.20also include the amount of sales and use tax paid, or was estimated to be paid, in 2012.
73.21(b) At the time the notice of the proposed property taxes is mailed as required under
73.22Minnesota Statutes, section 275.065, subdivision 3, the county treasurer shall also include
73.23a separate statement providing a list of sales and use tax certified by the county and cities
73.24within their jurisdiction.
73.25(c) At the public hearing required under Minnesota Statutes, section 275.065,
73.26subdivision 3, the county and city must discuss the estimated savings realized to their
73.27budgets that resulted from the sales tax exemption authorized under Minnesota Statutes,
73.28section 297A.70, subdivision 2, and how those savings will be used for property tax levy
73.29reductions, fee reductions, and other purposes as deemed appropriate.
73.30Reasonable costs of preparing the notice required in this section must be apportioned
73.31between taxing jurisdictions as follows:
73.32(1) one-half is allocated to the county; and
73.33(2) one-half is allocated among the cities.
74.1The amount allocated in clause (2) must be further apportioned among all the cities
74.2in the proportion that the number of parcels in the city bears to the number of parcels in all
74.3the cities that have populations over 500.
74.4EFFECTIVE DATE.This section is effective the day following final enactment,
74.5for taxes levied in 2013 and payable in 2014.
74.6 Sec. 48. LEVY LIMITS FOR TAXES LEVIED IN 2013.
74.7 Subdivision 1. Population. "Population" means the population for the local
74.8governmental unit as established by the last federal census, by a census taken under
74.9section Minnesota Statutes, section 275.14, or by an estimate made by the metropolitan
74.10council or by the state demographer under Minnesota Statutes, section 4A.02, whichever
74.11is most recent as to the stated date of the count or estimate up to and including June 1
74.12of the current levy year.
74.13 Subd. 2. Local government unit. "Local governmental unit" means a county with a
74.14population greater than 5,000, or a statutory or home rule charter city with a population
74.15greater than 2,500.
74.16 Subd. 3. Levy limit base. "Levy limit base" for a local governmental unit for levy
74.17year 2013 means the sum of its certified net tax capacity levy plus the total of aids and
74.18reimbursements that the local governmental unit is certified to receive under Minnesota
74.19Statutes, sections 477A.011 to 477A.014, minus any amounts that would qualify as a
74.20special levy under Minnesota Statutes, section 275.70, subdivision 5, clauses (1) to (4) and
74.21(7), for taxes levied in 2011 or 2012, whichever is greater. The levy limit base must be
74.22increased by three percent.
74.23 Subd. 4. Property tax levy limit. For taxes levied in 2013, the net tax capacity
74.24levy limit for a local governmental unit is equal to its levy limit base determined under
74.25subdivision 3 plus any additional levy authorized under Minnesota Statutes, section
74.26275.73, which is levied against net tax capacity, reduced by the total amount of aids and
74.27reimbursements that the local governmental unit is certified to receive under Minnesota
74.28Statutes, sections 477A.011 to 477A.014. The property tax levy limit for any local
74.29government cannot be less than the greater of its certified net tax capacity levies for taxes
74.30levied in 2011 or 2012.
74.31 Subd. 5. Limit on levies. Notwithstanding any other provision of law or municipal
74.32charter to the contrary which authorize ad valorem taxes in excess of the limits established
75.1by this section, the provisions of this section apply to local governmental units for all
75.2purposes other than those for which special levies under Minnesota Statutes, section
75.3275.70, subdivision 5, clauses (1) to (5) and (7), and special assessments are made.
75.4 Subd. 6. Levies in excess of levy limits. If the levy made by a city or county
75.5exceeds the levy limit provided in this section, except when the excess levy is due to the
75.6rounding of the rate in accordance with Minnesota Statutes, section 275.28, the county
75.7auditor shall only extend the amount of taxes permitted under this section as provided
75.8for in Minnesota Statutes, section 275.16.
75.9 Subd. 7. Calculation and notification. The commissioner of revenue shall make
75.10all necessary calculations for determining levy limits for local governmental units and
75.11notify the affected governmental units of their levy limits directly by September 1, 2013.
75.12The local governmental units shall, upon request, provide the commissioner with any
75.13information needed to make the calculations. The local governmental unit shall report
75.14by September 30, in a manner prescribed by the commissioner, the maximum amount of
75.15taxes it plans to levy for each of the purposes listed under special levies and any additional
75.16levy authorized under Minnesota Statutes, section 275.73, along with any necessary
75.17documentation. The commissioner shall review the proposed special levies and make any
75.18adjustments needed. The commissioner's decision is final. The final allowed special levy
75.19amounts and any levy limit adjustments must be certified back to the local governments by
75.20December 10. In addition, the commissioner of revenue shall notify all county auditors on
75.21or before five working days after December 20 of the sum of the levy limit plus the total of
75.22allowed special levies for each local governmental unit located within their boundaries so
75.23that they may fix the levies as required in Minnesota Statutes, section 275.16. The local
75.24governmental units shall provide the commissioner of revenue with all information that
75.25the commissioner deems necessary to make the calculations provided for in this section.
75.26 Subd. 8. Information necessary to calculate levy limit base. A local governmental
75.27unit must provide the commissioner with the information required to calculate the
75.28amount under subdivision 3, by July 20, 2013. If the information is not received by the
75.29commissioner by that date, or is not deemed sufficient to make the calculation under that
75.30clause, the commissioner has the discretion to set the local governmental unit's levy limit
75.31for all purposes including those purposes for which special levies may be made, equal to
75.32the amount of the local governmental unit's certified levy for the prior year.
75.33EFFECTIVE DATE.This section is effective for taxes levied in 2013, payable
75.34in 2014, only.
76.1 Sec. 49. APPROPRIATION.
76.2$2,000,000 in fiscal year 2014 only is appropriated from the general fund to the
76.3commissioner of revenue for a grant to the city of Moose Lake to reimburse for costs
76.4related to connection of state facilities to the sewer line.
76.5EFFECTIVE DATE.This section is effective July 1, 2013.
76.8 Section 1. Minnesota Statutes 2012, section 270C.56, subdivision 1, is amended to read:
76.9 Subdivision 1. Liability imposed. A person who, either singly or jointly with
76.10others, has the control of, supervision of, or responsibility for filing returns or reports,
76.11paying taxes, or collecting or withholding and remitting taxes and who fails to do so, or a
76.12person who is liable under any other law, is liable for the payment of taxes arising under
76.13chapters 295, 296A, 297A, 297F, and 297G, or sections256.9658, 290.92,297E.02 ,
76.14and the applicable penalties and interest on those taxes.
76.15EFFECTIVE DATE.This section is effective July 1, 2013.
76.16 Sec. 2. Minnesota Statutes 2012, section 296A.09, subdivision 2, is amended to read:
76.17 Subd. 2. Jet fuel and special fuel tax imposed. There is imposed an excise tax
76.18ofthe same rate 15 cents per gallon as the aviation gasoline on all jet fuel or special
76.19fuel received, sold, stored, or withdrawn from storage in this state, for use as substitutes
76.20for aviation gasoline and not otherwise taxed as gasoline. Jet fuel is defined in section
76.21296A.01, subdivision 8
.
76.22EFFECTIVE DATE.This section is effective July 1, 2014, and applied to sales
76.23and purchases made on or after that date.
76.24 Sec. 3. Minnesota Statutes 2012, section 296A.17, subdivision 3, is amended to read:
76.25 Subd. 3. Refund on graduated basis. Any person who has directly or indirectly
76.26paid the excise tax on aviation gasoline or special fuel for aircraft use provided for by this
76.27chapter and the airflight property tax under section 270.72, shall, as to all such aviation
76.28gasoline and special fuel received, stored, or withdrawn from storage by the person in
76.29this state in any calendar year and not sold or otherwise disposed of to others, or intended
76.30for sale or other disposition to others, on which such tax has been so paid, be entitled to
76.31the following graduated reductions in such tax for that calendar year, to be obtained by
76.32means of the following refunds:
77.1(1) on each gallon of such aviation gasoline or special fuel up to 50,000 gallons, all
77.2but five cents per gallon;
77.3(2) on each gallon of such aviation gasoline or special fuel above 50,000 gallons and
77.4not more than 150,000 gallons, all but two cents per gallon;
77.5(3) on each gallon of such aviation gasoline or special fuel above 150,000 gallons
77.6and not more than 200,000 gallons, all but one cent per gallon;
77.7(4) on each gallon of such aviation gasoline or special fuel above 200,000, all but
77.8one-half cent per gallon.
77.9EFFECTIVE DATE.This section is effective July 1, 2014, and applied to sales
77.10and purchases made on or after that date.
77.11 Sec. 4. Minnesota Statutes 2012, section 297A.82, subdivision 4, is amended to read:
77.12 Subd. 4. Exemptions. (a) The following transactions are exempt from the tax
77.13imposed in this chapter to the extent provided.
77.14(b) The purchase or use of aircraft previously registered in Minnesota by a
77.15corporation or partnership is exempt if the transfer constitutes a transfer within the
77.16meaning of section 351 or 721 of the Internal Revenue Code.
77.17(c) The sale to or purchase, storage, use, or consumption by a licensed aircraft dealer
77.18of an aircraft for which a commercial use permit has been issued pursuant to section
77.19360.654
is exempt, if the aircraft is resold while the permit is in effect.
77.20(d) Air flight equipment when sold to, or purchased, stored, used, or consumed by
77.21airline companies, as defined in section270.071, subdivision 4 , is exempt. For purposes
77.22of this subdivision, "air flight equipment" includes airplanes and parts necessary for the
77.23repair and maintenance of such air flight equipment, and flight simulators, but does
77.24not include airplanes with a gross weight of less than 30,000 pounds that are used on
77.25intermittent or irregularly timed flights.
77.26(e) Sales of, and the storage, distribution, use, or consumption of aircraft, as defined
77.27in section360.511 and approved by the Federal Aviation Administration, and which the
77.28seller delivers to a purchaser outside Minnesota or which, without intermediate use, is
77.29shipped or transported outside Minnesota by the purchaser are exempt, but only if the
77.30purchaser is not a resident of Minnesota and provided that the aircraft is not thereafter
77.31returned to a point within Minnesota, except in the course of interstate commerce or
77.32isolated and occasional use, and will be registered in another state or country upon its
77.33removal from Minnesota. This exemption applies even if the purchaser takes possession of
77.34the aircraft in Minnesota and uses the aircraft in the state exclusively for training purposes
77.35for a period not to exceed ten days prior to removing the aircraft from this state.
78.1(f) The sale or purchase of the following items that relate to aircraft operated under
78.2Federal Aviation Regulations, Parts 91 and 135, and associated installation charges:
78.3equipment and parts necessary for repair and maintenance of aircraft; and equipment
78.4and parts to upgrade and improve aircraft.
78.5EFFECTIVE DATE.This section is effective for sales and purchases made after
78.6June 30, 2013.
78.7 Sec. 5. Minnesota Statutes 2012, section 297A.82, is amended by adding a subdivision
78.8to read:
78.9 Subd. 4a. Deposit in state airports fund. Tax revenue collected from the sale or
78.10purchase of an aircraft taxable under this chapter must be deposited in the state airports
78.11fund, established in section 360.017.
78.12EFFECTIVE DATE.This section is effective July 1, 2013, and applied to sales
78.13and purchases made on or after that date.
78.14 Sec. 6. Minnesota Statutes 2012, section 297F.01, subdivision 3, is amended to read:
78.15 Subd. 3. Cigarette. "Cigarette" means any roll for smoking made wholly or in part
78.16of tobacco, that weighs 4.5 pounds or less per thousand:
78.17(1) the wrapper or cover of which is made of paper or another substance or material
78.18except tobacco; or
78.19(2) wrapped in any substance containing tobacco, however labeled or named, which,
78.20because of its appearance, size, the type of tobacco used in the filler, or its packaging,
78.21pricing, marketing, or labeling, is likely to be offered to or purchased by consumers as
78.22a cigarette, as defined in clause (1), unless it is wrapped in whole tobacco leaf and does
78.23not have a cellulose acetate or other cigarette-like filter.
78.24EFFECTIVE DATE.This section is effective July 1, 2013.
78.25 Sec. 7. Minnesota Statutes 2012, section 297F.01, is amended by adding a subdivision
78.26to read:
78.27 Subd. 10b. Moist snuff. "Moist snuff" means any finely cut, ground, or powdered
78.28smokeless tobacco that is intended to be placed or dipped in the mouth.
78.29EFFECTIVE DATE.This section is effective January 1, 2014.
79.1 Sec. 8. Minnesota Statutes 2012, section 297F.01, is amended by adding a subdivision
79.2to read:
79.3 Subd. 13a. Premium cigar. "Premium cigar" means any cigar that is
79.4hand-constructed and hand-rolled, has a wrapper that is made entirely from whole tobacco
79.5leaf, has a filler and binder that is made entirely of tobacco, except for adhesives or other
79.6materials used to maintain size, texture, or flavor, and has a wholesale price of no less
79.7than $2.
79.8EFFECTIVE DATE.This section is effective July 1, 2013.
79.9 Sec. 9. Minnesota Statutes 2012, section 297F.01, subdivision 19, is amended to read:
79.10 Subd. 19. Tobacco products. (a) "Tobacco products" means any product
79.11containing, made, or derived from tobacco that is intended for human consumption,
79.12whether chewed, smoked, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by
79.13any other means, or any component, part, or accessory of a tobacco product, including,
79.14but not limited to, cigars; little cigars; cheroots; stogies; periques; granulated, plug cut,
79.15crimp cut, ready rubbed, and other smoking tobacco; snuff; snuff flour; cavendish; plug
79.16and twist tobacco; fine-cut and other chewing tobacco; shorts; refuse scraps, clippings,
79.17cuttings and sweepings of tobacco, and other kinds and forms of tobacco; but does not
79.18include cigarettes as defined in this section. Tobacco products excludes any tobacco
79.19product that has been approved by the United States Food and Drug Administration for
79.20sale as a tobacco cessation product, as a tobacco dependence product, or for other medical
79.21purposes, and is being marketed and sold solely for such an approved purpose.
79.22(b) Except for the imposition of tax under section 297F.05, subdivisions 3 and 4,
79.23tobacco products includes a premium cigar, as defined in subdivision 13a.
79.24EFFECTIVE DATE.This section is effective July 1, 2013.
79.25 Sec. 10. Minnesota Statutes 2012, section 297F.05, subdivision 1, is amended to read:
79.26 Subdivision 1. Rates; cigarettes. A tax is imposed upon the sale of cigarettes in
79.27this state, upon having cigarettes in possession in this state with intent to sell, upon any
79.28person engaged in business as a distributor, and upon the use or storage by consumers, at
79.29the following rates:
79.30(1) on cigarettes weighing not more than three pounds per thousand,24 141.5 mills
79.31on each such cigarette; and
79.32(2) on cigarettes weighing more than three pounds per thousand,48 283 mills on
79.33each such cigarette.
80.1EFFECTIVE DATE.This section is effective July 1, 2013.
80.2 Sec. 11. Minnesota Statutes 2012, section 297F.05, is amended by adding a subdivision
80.3to read:
80.4 Subd. 1a. Annual indexing. (a) Each year the commissioner shall adjust the
80.5tax rates under subdivision 1, including any adjustment made in prior years under this
80.6subdivision, by multiplying the mill rates for the current calendar year by an adjustment
80.7factor and rounding the result to the nearest mill. The adjustment factor equals the in-lieu
80.8sales tax rate that applies to the following calendar year divided by the in-lieu sales tax
80.9rate for the current calendar year. For purposes of this subdivision, "in-lieu sales tax rate"
80.10means the tax rate established under section 297F.25, subdivision 1. For purposes of the
80.11calculations under this subdivision to be made in any year in which an increase in the
80.12federal or state excise tax on cigarettes is implemented, the commissioner shall exclude
80.13from the calculated average price for the current year an amount equal to any increase in
80.14the state or federal excise tax rate.
80.15 (b) The commissioner shall publish the resulting rate by November 1 and the rate
80.16applies to sales made on or after January 1 of the following year.
80.17(c) The determination of the commissioner under this subdivision is not a rule and is
80.18not subject to the Administrative Procedure Act in chapter 14.
80.19EFFECTIVE DATE.This section is effective July 1, 2014.
80.20 Sec. 12. Minnesota Statutes 2012, section 297F.05, subdivision 3, is amended to read:
80.21 Subd. 3. Rates; tobacco products. (a) Except as provided in subdivision 3a, a tax is
80.22imposed upon all tobacco products in this state and upon any person engaged in business
80.23as a distributor, at the rate of35 95 percent of the wholesale sales price of the tobacco
80.24products. The tax is imposed at the time the distributor:
80.25(1) brings, or causes to be brought, into this state from outside the state tobacco
80.26products for sale;
80.27(2) makes, manufactures, or fabricates tobacco products in this state for sale in
80.28this state; or
80.29(3) ships or transports tobacco products to retailers in this state, to be sold by those
80.30retailers.
80.31(b) Notwithstanding paragraph (a), a minimum tax equal to the rate imposed on a
80.32pack of 20 cigarettes weighing not more than three pounds per thousand, as established
80.33under subdivision 1, is imposed on each container of moist snuff.
81.1For purposes of this subdivision, a "container" means the smallest consumer-size can,
81.2package, or other container that is marketed or packaged by the manufacturer, distributor,
81.3or retailer for separate sale to a retail purchaser. When more than one container is
81.4packaged together, each container is subject to tax.
81.5EFFECTIVE DATE.This section is effective July 1, 2013, except the minimum
81.6tax under paragraph (b) is effective January 1, 2014.
81.7 Sec. 13. Minnesota Statutes 2012, section 297F.05, is amended by adding a subdivision
81.8to read:
81.9 Subd. 3a. Rates; tobacco. (a) A tax is imposed upon all premium cigars in this state
81.10and upon any person engaged in business as a tobacco product distributor, at the lesser of:
81.11(1) the rate of 95 percent of the wholesale sales price of the premium cigars; or
81.12(2) $3.50 per premium cigar.
81.13(b) The tax imposed under paragraph (a) is imposed at the time the tobacco products
81.14distributor:
81.15(1) brings, or causes to be brought, into this state from outside the state premium
81.16cigars for sale;
81.17(2) makes, manufactures, or fabricates premium cigars in this state for sale in this
81.18state; or
81.19(3) ships or transports premium cigars to retailers in this state, to be sold by those
81.20retailers.
81.21EFFECTIVE DATE.This section is effective July 1, 2013.
81.22 Sec. 14. Minnesota Statutes 2012, section 297F.05, subdivision 4, is amended to read:
81.23 Subd. 4. Use tax; tobacco products. Except as provided in subdivision 4a, a tax is
81.24imposed upon the use or storage by consumers of tobacco products in this state, and upon
81.25such consumers, at the rate of35 95 percent of the cost to the consumer of the tobacco
81.26products or the minimum tax under subdivision 3, paragraph (b), whichever is greater.
81.27EFFECTIVE DATE.This section is effective July 1, 2013.
81.28 Sec. 15. Minnesota Statutes 2012, section 297F.05, is amended by adding a subdivision
81.29to read:
81.30 Subd. 4a. Use tax; premium cigars. A tax is imposed upon the use or storage by
81.31consumers of all premium cigars in this state, and upon such consumers, at the lesser of:
81.32(1) the rate of 95 percent of the cost to the consumer of the premium cigars; or
82.1(2) $3.50 per premium cigar.
82.2EFFECTIVE DATE.This section is effective July 1, 2013.
82.3 Sec. 16. Minnesota Statutes 2012, section 297F.24, subdivision 1, is amended to read:
82.4 Subdivision 1. Fee imposed. (a) A fee is imposed upon the sale of nonsettlement
82.5cigarettes in this state, upon having nonsettlement cigarettes in possession in this state
82.6with intent to sell, upon any person engaged in business as a distributor, and upon the use
82.7or storage by consumers of nonsettlement cigarettes. The fee equals a rate of1.75 2.5
82.8cents per cigarette.
82.9(b) The purpose of this fee is to:
82.10(1) ensure that manufacturers of nonsettlement cigarettes pay fees to the state that
82.11are comparable to costs attributable to the use of the cigarettes;
82.12(2) prevent manufacturers of nonsettlement cigarettes from undermining the state's
82.13policy of discouraging underage smoking by offering nonsettlement cigarettes at prices
82.14substantially below the cigarettes of other manufacturers; and
82.15(3) fund such other purposes as the legislature determines appropriate.
82.16EFFECTIVE DATE.This section is effective July 1, 2013.
82.17 Sec. 17. Minnesota Statutes 2012, section 297F.25, subdivision 1, is amended to read:
82.18 Subdivision 1. Imposition. (a) A tax is imposed on distributors on the sale of
82.19cigarettes by a cigarette distributor to a retailer or cigarette subjobber for resale in this
82.20state. The tax is equal to6.5 percent of the combined tax rate under section 297A.62,
82.21multiplied by the weighted average retail price and must be expressed in cents per pack
82.22rounded to the nearest one-tenth of a cent. The weighted average retail price must be
82.23determined annually, with new rates published by November 1, and effective for sales
82.24on or after January 1 of the following year. The weighted average retail price must be
82.25established by surveying cigarette retailers statewide in a manner and time determined by
82.26the commissioner. The commissioner shall make an inflation adjustment in accordance
82.27with the Consumer Price Index for all urban consumers inflation indicator as published in
82.28the most recent state budget forecast. The commissioner shall use the inflation factor for
82.29the calendar year in which the new tax rate takes effect. If the survey indicates that the
82.30average retail price of cigarettes has not increased relative to the average retail price in
82.31the previous year's survey, then the commissioner shall not make an inflation adjustment.
82.32The determination of the commissioner pursuant to this subdivision is not a "rule" and is
83.1not subject to the Administrative Procedure Act contained in chapter 14. For packs of
83.2cigarettes with other than 20 cigarettes, the tax must be adjusted proportionally.
83.3(b) Notwithstanding paragraph (a), and in lieu of a survey of cigarette retailers, the
83.4tax calculation of the weighted average retail price for the sales of cigarettes from August
83.51, 2011, through December 31, 2011, shall be calculated by: (1) increasing the average
83.6retail price per pack of 20 cigarettes from the most recent survey by the percentage change
83.7in a weighted average of the presumed legal prices for cigarettes during the year after
83.8completion of that survey, as reported and published by the Department of Commerce
83.9under section325D.371 ; (2) subtracting the sales tax included in the retail price; and (3)
83.10adjusting for expected inflation. The rate must be published by May 1 and is effective for
83.11sales after July 31. If the weighted average of the presumed legal prices indicates that the
83.12average retail price of cigarettes has not increased relative to the average retail price in the
83.13most recent survey, then no inflation adjustment must be made. For packs of cigarettes
83.14with other than 20 cigarettes, the tax must be adjusted proportionally.
83.15EFFECTIVE DATE.This section is effective July 1, 2013.
83.16 Sec. 18. Minnesota Statutes 2012, section 297G.04, subdivision 2, is amended to read:
83.17 Subd. 2. Tax credit. A qualified brewer producing fermented malt beverages
83.18is entitled to a tax credit of $4.60 per barrel on 25,000 barrels sold in any fiscal year
83.19beginning July 1, regardless of the alcohol content of the product. Qualified brewers may
83.20take the credit on the 18th day of each month, but the total credit allowed may not exceed
83.21in any fiscal year the lesser of:
83.22 (1) the liability for tax; or
83.23 (2) $115,000.
83.24 For purposes of this subdivision, a "qualified brewer" means a brewer, whether or
83.25not located in this state, manufacturing less than100,000 250,000 barrels of fermented
83.26malt beverages in the calendar year immediately preceding the calendar year for which
83.27the credit under this subdivision is claimed. In determining the number of barrels, all
83.28brands or labels of a brewer must be combined. All facilities for the manufacture of
83.29fermented malt beverages owned or controlled by the same person, corporation, or other
83.30entity must be treated as a single brewer.
83.31EFFECTIVE DATE.This section is effective for determinations based on calendar
83.32year 2012 production and thereafter.
83.33 Sec. 19. Minnesota Statutes 2012, section 325D.32, subdivision 2, is amended to read:
84.1 Subd. 2. Cigarettes. "Cigarettes" means and includes any roll for smoking, made
84.2wholly or in part of tobacco, irrespective of size and shape and whether or not such
84.3tobacco is flavored, adulterated or mixed with any other ingredient, the wrapper or cover
84.4of which is made of paper or any other substance or material except whole tobacco leaf,
84.5and includes any cigarette as defined in section 297F.01, subdivision 3.
84.6EFFECTIVE DATE.This section is effective July 1, 2013.
84.7 Sec. 20. Minnesota Statutes 2012, section 325F.781, subdivision 1, is amended to read:
84.8 Subdivision 1. Definitions. (a) For purposes of this section, the following terms
84.9have the meanings given, unless the language or context clearly provides otherwise.
84.10(b) "Consumer" means an individual who purchases, receives, or possesses tobacco
84.11products for personal consumption and not for resale.
84.12(c) "Delivery sale" means:
84.13(1) a sale of tobacco products to a consumer in this state when:
84.14(i) the purchaser submits the order for the sale by means of a telephonic or other
84.15method of voice transmission, the mail or any other delivery service, or the Internet or
84.16other online service; or
84.17(ii) the tobacco products are delivered by use of the mail or other delivery service; or
84.18(2) a sale of tobacco products that satisfies the criteria in clause (1), item (i),
84.19regardless of whether the seller is located inside or outside of the state.
84.20A sale of tobacco products to an individual in this state must be treated as a sale to a
84.21consumer, unless the individual is licensed as a distributor or retailer of tobacco products.
84.22(d) "Delivery service" means a person, including the United States Postal Service,
84.23that is engaged in the commercial delivery of letters, packages, or other containers.
84.24(e) "Distributor" means a person, whether located inside or outside of this state,
84.25other than a retailer, who sells or distributes tobacco products in the state. Distributor does
84.26not include a tobacco products manufacturer, export warehouse proprietor, or importer
84.27with a valid permit under United States Code, title 26, section 5712 (1997), if the person
84.28sells or distributes tobacco products in this state only to distributors who hold valid and
84.29current licenses under the laws of a state, or to an export warehouse proprietor or another
84.30manufacturer. Distributor does not include a common or contract carrier that is transporting
84.31tobacco products under a proper bill of lading or freight bill that states the quantity, source,
84.32and destination of tobacco products, or a person who ships tobacco products through this
84.33state by common or contract carrier under a bill of lading or freight bill.
84.34(f) "Retailer" means a person, whether located inside or outside this state, who sells
84.35or distributes tobacco products to a consumer in this state.
85.1(g) "Tobacco products" means:
85.2(1) cigarettes, as defined in section297F.01, subdivision 3 ; and
85.3(2) smokeless tobacco as defined in section325F.76 .; and
85.4(3) premium cigars as defined in section 297F.01, subdivision 13a.
85.5EFFECTIVE DATE.This section is effective July 1, 2013.
85.6 Sec. 21. Minnesota Statutes 2012, section 349.166, subdivision 1, is amended to read:
85.7 Subdivision 1. Exclusions. (a) Bingo, with the exception of linked bingo games, may
85.8be conducted without a license and without complying with sections349.168 , subdivisions
85.91 and 2;349.17 , subdivisions 4 and 5;
349.18, subdivision 1 ; and
349.19 , if it is conducted:
85.10(1) by an organization in connection with a county fair, the state fair, or a civic
85.11celebration and is not conducted for more than 12 consecutive days and is limited to no more
85.12than four separate applications for activities applied for and approved in a calendar year; or
85.13(2) by an organization that conducts bingo on four or fewer days in a calendar year.
85.14An organization that holds a license to conduct lawful gambling under this chapter
85.15may not conduct bingo under this subdivision.
85.16(b) Bingo may be conducted within a nursing home or a senior citizen housing
85.17project or by a senior citizen organization if the prizes for a single bingo game do not
85.18exceed $10, total prizes awarded at a single bingo occasion do not exceed $200, no more
85.19than two bingo occasions are held by the organization or at the facility each week, only
85.20members of the organization or residents of the nursing home or housing project are
85.21allowed to play in a bingo game, no compensation is paid for any persons who conduct the
85.22bingo, and a manager is appointed to supervise the bingo. Bingo conducted under this
85.23paragraph is exempt from sections349.11 to
349.23 , and the board may not require an
85.24organization that conducts bingo under this paragraph, or the manager who supervises the
85.25bingo, to register or file a report with the board. The gross receipts from bingo conducted
85.26under the limitations of this subdivision are exempt from taxation under chapter 297A.
85.27(c) Raffles may be conducted by an organization without registering with the board
85.28if the value of all raffle prizes awarded by the organization in a calendar year does not
85.29exceed $1,500 or, if the organization is a 501(c)(3) organization, if the value of all raffle
85.30prizes awarded by the organization at one event in a calendar year does not exceed $5,000.
85.31(d) Except as provided in paragraph (b), the organization must maintain all required
85.32records of excluded gambling activity for 3-1/2 years.
85.33EFFECTIVE DATE.This section is effective July 1, 2013.
86.1 Sec. 22. Minnesota Statutes 2012, section 360.531, is amended to read:
86.2360.531 TAXATION.
86.3 Subdivision 1. In lieu tax. All aircraft using the air space overlying the state of
86.4Minnesota or the airports thereof, except as set forth in section360.55 , shall be taxed in
86.5lieu of all other taxes thereon, on the basis and at the rate for the period January 1, 1966, to
86.6June 30, 1967, and for each fiscal year as follows.
86.7 Subd. 2. Rate. The tax shall beat the rate of one percent of value; provided that
86.8the minimum tax on an aircraft subject to the provisions of sections
360.511 to
360.67
shall not be less than 25 percent of the tax on said aircraft computed on its base price or
86.10$50 whichever is the higher. as follows:
86.28 Subd. 3. First year of life. "First year of life" means the year the aircraft was
86.29manufactured.
86.30 Subd. 4. Base price for taxation. For the purpose of fixing a base price for taxation
86.31from which depreciation in value at a fixed percent per annum can be counted, such , the
86.32base price is defined as follows:
86.33(a) The base price for taxation of an aircraft shall be the manufacturer's list price.
86.34(b) The commissioner shall have authority to fix the base value for taxation purposes
86.35of any aircraft of which no such similar or corresponding model has been manufactured,
86.36and of any rebuilt or foreign aircraft, any aircraft on which a record of the list price is not
86.37available, or any military aircraft converted for civilian use, using as a basis forsuch
87.1valuation the list price of aircraft with comparable performance characteristics, and taking
87.2into consideration the age and condition of the aircraft.
87.3 Subd. 5. Similarity of corresponding model. Models shall be deemed similar if
87.4substantially alike and of the same make. Models shall be deemed to be corresponding
87.5models for the purpose of taxation under sections360.54 to
360.67 if of the same make
87.6and having approximately the same weight and type of frame and the same style and
87.7size of motor.
87.8Subd. 6. Depreciation. After the first year of aircraft life the base value for taxation
87.9purposes shall be reduced as follows: ten percent the second year, and 15 percent the third
87.10and each succeeding year thereafter, but in no event shall such tax be reduced below
87.11the minimum.
87.12 Subd. 7. Prorating tax. When an aircraft first becomes subject to taxation during the
87.13period for which the tax is to be paid, the tax on it shall be for the remainder of that period,
87.14prorated on a monthly basis of 1/12 of the annual tax for each calendar month counting the
87.15month during which it becomes subject to the tax as the first month of such period.
87.16 Subd. 8. Tax, fiscal year. Every aircraft subject to the provisions of sections
87.17360.511
to
360.67 which has at any time since April 19, 1945, used the air space overlying
87.18the state of Minnesota or the airports thereof shall be taxed for the period from January 1,
87.191966, through June 30, 1967, and for each fiscal year thereafter in which it is so used. Any
87.20aircraft which does not use the air space overlying the state of Minnesota or the airports
87.21thereof at any time during the period of January 1, 1966, to and including June 30, 1967,
87.22or at any time during any fiscal year thereafter shall not be subject to the tax provided by
87.23sections360.511 to
360.67 for such period. Rebuilt aircraft shall be subject to the tax
87.24provided by sections360.511 to
360.67 for that portion of the aforesaid periods remaining
87.25after the aircraft has been rebuilt, prorated on a monthly basis.
87.26 Subd. 9. Assessed as personal property in certain cases. Aircraft subject to
87.27taxation under the provisions of sections360.54 to
360.67 shall not be assessed as personal
87.28property and shall be subject to no tax except as provided for by these sections. Aircraft
87.29not subject to taxation as provided in these sections, but subject to taxation as personal
87.30property within the state of Minnesota shall be assessed and valued at 33-1/3 percent of
87.31the market value thereof and taxed at the rate and in the manner provided by law for the
87.32taxation of ordinary personal property. If the person against whom any tax has been levied
87.33on the ad valorem basis because of any aircraft shall, during the calendar year for which
87.34such ad valorem tax is levied, be also taxed under provisions of these sections, then and in
87.35that event, upon proper showing, the commissioner of revenue shall grant to the person
87.36against whom said ad valorem tax was levied, such reduction or abatement of net tax
88.1capacity or taxes as was occasioned by the so-called ad valorem tax imposed. If the ad
88.2valorem tax upon any aircraft has been assessed against a dealer in new and used aircraft,
88.3and the tax imposed by these sections for the required period is thereafter paid by the
88.4owner, then and in that event, upon proper showing, the commissioner of revenue, upon
88.5the application of said dealer, shall grant to such dealer against whom said ad valorem tax
88.6was levied such reduction or abatement of net tax capacity or taxes as was occasioned
88.7by the so-called ad valorem tax imposed.
88.8EFFECTIVE DATE.This section is effective July 1, 2014, and applies to aircraft
88.9tax due on or after that date.
88.10 Sec. 23. Minnesota Statutes 2012, section 360.66, is amended to read:
88.11360.66 STATE AIRPORTS FUND.
88.12 Subdivision 1. Tax credited to fund. The proceeds of the tax imposed on aircraft
88.13under sections360.54360.67 and all fees and penalties provided for therein
88.14shall be collected by the commissioner and paid into the state treasury and credited to the
88.15state airports fund created by other statutes of this state.
88.16 Subd. 2. Reimbursement for expenses. There shall be transferred by the
88.17commissioner of management and budget each year from the state airports fund to the
88.18general fund in the state treasury the amount expended from the latter fund for expenses of
88.19administering the provisions of sections360.54360.67 .
88.20EFFECTIVE DATE.This section is effective July 1, 2014, and applies to aircraft
88.21tax due on or after that date.
88.22 Sec. 24. REPORT.
88.23On or before June 30, 2016, and every four years thereafter, the commissioner of
88.24transportation, in consultation with the commissioner of revenue, shall prepare and submit
88.25to the chairs and ranking minority members of the senate and house of representatives
88.26committees with jurisdiction over transportation policy and budget, a report that identifies
88.27the amount and sources of annual revenues attributable to each type of aviation tax, along
88.28with annual expenditures from the state airports fund, and any other transfers out of the
88.29fund, during the previous four years. The report must include draft legislation for any
88.30recommended statutory changes to ensure the future adequacy of the state airports fund.
88.31EFFECTIVE DATE.This section is effective July 1, 2014, and applies to aircraft
88.32tax due on or after that date.
89.1 Sec. 25. FLOOR STOCKS TAX.
89.2 Subdivision 1. Cigarettes. (a) A floor stocks tax is imposed on every person
89.3engaged in the business in this state as a distributor, retailer, subjobber, vendor,
89.4manufacturer, or manufacturer's representative of cigarettes, on the stamped cigarettes and
89.5unaffixed stamps in the person's possession or under the person's control at 12:01 a.m.
89.6on July 1, 2013. The tax is imposed at the rate of 80 mills on each cigarette plus the
89.7additional cigarette sales tax determined by an adjustment to the weighted average retail
89.8price which reflects the price including the increased tax.
89.9(b) Each distributor, on or before July 11, 2013, shall file a return with the
89.10commissioner of revenue, in the form the commissioner prescribes, showing the stamped
89.11cigarettes and unaffixed stamps on hand at 12:01 a.m. on July 1, 2013, and the amount
89.12of tax due on the cigarettes and unaffixed stamps. Each retailer, subjobber, vendor,
89.13manufacturer, or manufacturer's representative, on or before July 11, 2013, shall file
89.14a return with the commissioner, in the form the commissioner prescribes, showing the
89.15cigarettes on hand at 12:01 a.m. on July 1, 2013, and the amount of tax due on the
89.16cigarettes. The tax imposed by this section is due and payable on or before September 4,
89.172013, and after that date bears interest at the rate of one percent per month.
89.18 Subd. 2. Audit and enforcement. The tax imposed by this section is subject to
89.19the audit, assessment, interest, appeal, refund, penalty, enforcement, administrative, and
89.20collection provisions of Minnesota Statutes, chapters 270C and 297F. The commissioner
89.21of revenue may require a distributor to receive and maintain copies of floor stocks fee
89.22returns filed by all persons requesting a credit for returned cigarettes.
89.23 Subd. 3. Deposit of proceeds. (a) The commissioner of revenue shall deposit
89.24$26,500,000 of the revenues from the tax under this section in the state treasury and credit
89.25them to the general reserve account established under Minnesota Statutes 297E.021,
89.26subdivision 4.
89.27(b) The commissioner of revenue shall deposit any revenue remaining after the
89.28transfer under paragraph (a) to the general fund.
89.29EFFECTIVE DATE.This section is effective July 1, 2013.
89.30 Sec. 26. INTERIM SALES TAX RATE.
89.31Notwithstanding the provisions of Minnesota Statutes, section 297F.25, the
89.32commissioner shall adjust the weighted average retail price in section 297F.25, subdivision
89.331, on July 1, 2013, to reflect the price changes under this act. This weighted average
90.1shall be used to compute cigarette sales tax under Minnesota Statutes, section 297F.25,
90.2subdivision 1, until December 31, 2013, when the commissioner shall resume annual
90.3adjustments to the weighted average sales price. The commissioner's determination of
90.4the adjustment that takes effect on January 1, 2014, must be limited to the change in the
90.5weighted average retail price that occurs during calendar year 2013 but after July 15, 2013.
90.6EFFECTIVE DATE.This section is effective July 1, 2013.
90.7 Sec. 27. TOBACCO TAX COLLECTION REPORT.
90.8 Subdivision 1. Report to legislature. (a) The commissioner of revenue shall report
90.9to the 2014 legislature on the tobacco tax collection system, including recommendations
90.10to improve compliance under the excise tax for both cigarettes and other tobacco products.
90.11The purpose of the report is to provide information and guidance to the legislature on
90.12improvements to the tobacco tax collection system to:
90.13(1) provide a unified system of collecting both the cigarette and other tobacco
90.14taxes, regardless of category, size, or shape, that ensures the highest reasonable rates of
90.15tax collection;
90.16(2) discourage tax evasion; and
90.17(3) help to prevent illegal sale of tobacco products, which may make these products
90.18more accessible to youth.
90.19(b) In the report, the commissioner shall:
90.20(1) provide a detailed review of the present excise tax collection and compliance
90.21system as it applies to both cigarettes and other tobacco products. This must include
90.22an assessment of the levels of compliance for each category of products and the effect
90.23of the stamping requirement on compliance for each category of products and the effect
90.24of the stamping requirement on compliance rates for cigarettes relative to other tobacco
90.25products. It also must identify any weaknesses in the system;
90.26(2) survey the methods of collection and enforcement used by other states or nations,
90.27including identifying and discussing emerging best practices that ensure tracking of both
90.28cigarettes and other tobacco products and result in the highest rates of tax collection and
90.29compliance. These best practices must consider high-technology alternatives, such as use
90.30of bar codes, radio-frequency identification tags, or similar mechanisms for tracking
90.31compliance;
90.32(3) evaluate the adequacy and effectiveness of the existing penalties and other
90.33sanctions for noncompliance;
91.1(4) evaluate the adequacy of the resources allocated by the state to enforce the
91.2tobacco tax and prevention laws; and
91.3(5) make recommendations on implementation of a comprehensive tobacco tax
91.4collection system for Minnesota that can be implemented by January 1, 2014, including:
91.5(i) recommendations on the specific steps needed to institute and implement the new
91.6system, including estimates of the state's costs of doing so and any additional personnel
91.7requirements;
91.8(ii) recommendations on methods to recover the cost of implementing the system
91.9from the industry;
91.10(iii) evaluation of the extent to which the proposed system is sufficiently flexible
91.11and adaptable to adjust to modifications in the construction, packaging, formatting, and
91.12marketing of tobacco products by the industry; and
91.13(iv) recommendations to modify existing penalties or to impose new penalties or
91.14other sanctions to ensure compliance with the system.
91.15 Subd. 2. Due date. The report required by subdivision 1 is due February 15, 2014.
91.16 Subd. 3. Procedure. The report required under this section must be made in the
91.17manner provided under Minnesota Statutes, section 3.195. In addition, copies must be
91.18provided to the chairs and ranking minority members of the legislative committees and
91.19divisions with jurisdiction over taxation.
91.20 Subd. 4. Appropriation. (a) $100,000 is appropriated from the general fund to the
91.21commissioner of revenue for fiscal year 2014 for the cost of preparing the report under
91.22subdivision 1.
91.23(b) The appropriation under this subdivision is a onetime appropriation and is not
91.24included in the base budget.
91.25EFFECTIVE DATE.This section is effective the day following final enactment.
91.26 Sec. 28. REPEALER.
91.27Minnesota Statutes 2012, sections 16A.725; and 256.9658, are repealed.
91.28EFFECTIVE DATE.This section is effective July 1, 2013.
91.31 Section 1. Minnesota Statutes 2012, section 116J.8737, subdivision 1, is amended to
91.32read:
92.1 Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
92.2have the meanings given.
92.3(b) "Qualified small business" means a business that has been certified by the
92.4commissioner under subdivision 2.
92.5(c) "Qualified investor" means an investor who has been certified by the
92.6commissioner under subdivision 3.
92.7(d) "Qualified fund" means a pooled angel investment network fund that has been
92.8certified by the commissioner under subdivision 4.
92.9(e) "Qualified investment" means a cash investment in a qualified small business
92.10of a minimum of:
92.11(1) $10,000 in a calendar year by a qualified investor; or
92.12(2) $30,000 in a calendar year by a qualified fund.
92.13A qualified investment must be made in exchange for common stock, a partnership
92.14or membership interest, preferred stock, debt with mandatory conversion to equity, or an
92.15equivalent ownership interest as determined by the commissioner.
92.16(f) "Family" means a family member within the meaning of the Internal Revenue
92.17Code, section 267(c)(4).
92.18(g) "Pass-through entity" means a corporation that for the applicable taxable year is
92.19treated as an S corporation or a general partnership, limited partnership, limited liability
92.20partnership, trust, or limited liability company and which for the applicable taxable year is
92.21not taxed as a corporation under chapter 290.
92.22(h) "Intern" means a student of an accredited institution of higher education, or a
92.23former student who has graduated in the past six months from an accredited institution
92.24of higher education, who is employed by a qualified small business in a nonpermanent
92.25position for a duration of nine months or less that provides training and experience in the
92.26primary business activity of the business.
92.27(i) "Liquidation event" means a conversion of qualified investment for cash, cash
92.28and other consideration, or any other form of equity or debt interest.
92.29EFFECTIVE DATE.This section is effective for qualified small businesses
92.30certified after June 30, 2013.
92.31 Sec. 2. Minnesota Statutes 2012, section 116J.8737, subdivision 2, is amended to read:
92.32 Subd. 2. Certification of qualified small businesses. (a) Businesses may apply
92.33to the commissioner for certification as a qualified small business for a calendar year.
92.34The application must be in the form and be made under the procedures specified by the
92.35commissioner, accompanied by an application fee of $150. Application fees are deposited
93.1in the small business investment tax credit administration account in the special revenue
93.2fund. The application for certification for 2010 must be made available on the department's
93.3Web site by August 1, 2010. Applications for subsequent years' certification must be made
93.4available on the department's Web site by November 1 of the preceding year.
93.5(b) Within 30 days of receiving an application for certification under this subdivision,
93.6the commissioner must either certify the business as satisfying the conditions required of a
93.7qualified small business, request additional information from the business, or reject the
93.8application for certification. If the commissioner requests additional information from the
93.9business, the commissioner must either certify the business or reject the application within
93.1030 days of receiving the additional information. If the commissioner neither certifies the
93.11business nor rejects the application within 30 days of receiving the original application or
93.12within 30 days of receiving the additional information requested, whichever is later, then
93.13the application is deemed rejected, and the commissioner must refund the $150 application
93.14fee. A business that applies for certification and is rejected may reapply.
93.15(c) To receive certification, a business must satisfy all of the following conditions:
93.16(1) the business has its headquarters in Minnesota;
93.17(2) at least 51 percent of the business's employees are employed in Minnesota, and
93.1851 percent of the business's total payroll is paid or incurred in the state;
93.19(3) the business is engaged in, or is committed to engage in, innovation in Minnesota
93.20in one of the following as its primary business activity:
93.21(i) using proprietary technology to add value to a product, process, or service in a
93.22qualified high-technology field;
93.23(ii) researching or developing a proprietary product, process, or service in a qualified
93.24high-technology field; or
93.25(iii) researching, developing, or producing a new proprietary technology for use in
93.26the fields of agriculture, tourism, forestry, mining, manufacturing, or transportation;
93.27(4) other than the activities specifically listed in clause (3), the business is not
93.28engaged in real estate development, insurance, banking, lending, lobbying, political
93.29consulting, information technology consulting, wholesale or retail trade, leisure,
93.30hospitality, transportation, construction, ethanol production from corn, or professional
93.31services provided by attorneys, accountants, business consultants, physicians, or health
93.32care consultants;
93.33(5) the business has fewer than 25 employees;
93.34(6) the business must pay its employees annual wages of at least 175 percent of the
93.35federal poverty guideline for the year for a family of four and must pay its interns annual
93.36wages of at least 175 percent of the federal minimum wage used for federally covered
94.1employers, except that this requirement must be reduced proportionately for employees
94.2and interns who work less than full-time, and does not apply to an executive, officer, or
94.3member of the board of the business, or to any employee who owns, controls, or holds
94.4power to vote more than 20 percent of the outstanding securities of the business;
94.5(7) the business has (i) not been in operation for more than ten years, or (ii) the
94.6business has not been in operation for more than 20 years if the business is engaged
94.7in the research, development, or production of medical devices or pharmaceuticals for
94.8which United States Food and Drug Administration approval is required for use in the
94.9treatment or diagnosis of a disease or condition;
94.10(8) the business has not previously received private equity investments of more
94.11than $4,000,000;and
94.12 (9) the business is not an entity disqualified under section80A.50 , paragraph (b),
94.13clause (3).; and
94.14(10) the business has not issued securities that are traded on a public exchange.
94.15(d) In applying the limit under paragraph (c), clause (5), the employees in all members
94.16of the unitary business, as defined in section290.17, subdivision 4 , must be included.
94.17(e) In order for a qualified investment in a business to be eligible for tax credits,:
94.18(1) the business must have applied for and received certification for the calendar
94.19year in which the investment was made prior to the date on which the qualified investment
94.20was made.;
94.21(2) the business must not have issued securities that are traded on a public exchange;
94.22(3) the business must not issue securities that are traded on a public exchange within
94.23180 days after the date on which the qualified investment was made; and
94.24(4) the business must not have a liquidation event within 180 days after the date on
94.25which the qualified investment was made.
94.26(f) The commissioner must maintain a list of businesses certified under this
94.27subdivision for the calendar year and make the list accessible to the public on the
94.28department's Web site.
94.29(g) For purposes of this subdivision, the following terms have the meanings given:
94.30(1) "qualified high-technology field" includes aerospace, agricultural processing,
94.31renewable energy, energy efficiency and conservation, environmental engineering, food
94.32technology, cellulosic ethanol, information technology, materials science technology,
94.33nanotechnology, telecommunications, biotechnology, medical device products,
94.34pharmaceuticals, diagnostics, biologicals, chemistry, veterinary science, and similar
94.35fields; and
95.1(2) "proprietary technology" means the technical innovations that are unique and
95.2legally owned or licensed by a business and includes, without limitation, those innovations
95.3that are patented, patent pending, a subject of trade secrets, or copyrighted.
95.4EFFECTIVE DATE.This section is effective for qualified small businesses
95.5certified after June 30, 2013, except the amendments to paragraph (c), clause (7), are
95.6effective the day following final enactment.
95.7 Sec. 3. Minnesota Statutes 2012, section 116J.8737, subdivision 8, is amended to read:
95.8 Subd. 8. Data privacy. (a) Data contained in an application submitted to the
95.9commissioner under subdivision 2, 3, or 4 are nonpublic data, or private data on
95.10individuals, as defined in section13.02, subdivision 9 or 12, except that the following
95.11data items are public:
95.12(1) the name, mailing address, telephone number, e-mail address, contact person's
95.13name, and industry type of a qualified small business upon approval of the application
95.14and certification by the commissioner under subdivision 2;
95.15(2) the name of a qualified investor upon approval of the application and certification
95.16by the commissioner under subdivision 3;
95.17(3) the name of a qualified fund upon approval of the application and certification
95.18by the commissioner under subdivision 4;
95.19(4) for credit certificates issued under subdivision 5, the amount of the credit
95.20certificate issued, amount of the qualifying investment, the name of the qualifying investor
95.21or qualifying fund that received the certificate, and the name of the qualifying small
95.22business in which the qualifying investment was made;
95.23(5) for credits revoked under subdivision 7, paragraph (a), the amount revoked and
95.24the name of the qualified investor or qualified fund; and
95.25(6) for credits revoked under subdivision 7, paragraphs (b) and (c), the amount
95.26revoked and the name of the qualified small business.
95.27(b) The following data, including data classified as nonpublic or private, must be
95.28provided to the consultant for use in conducting the program evaluation under subdivision
95.2910:
95.30(1) the commissioner of employment and economic development shall provide data
95.31contained in an application for certification received from a qualified small business,
95.32qualified investor, or qualified fund, and any annual reporting information received on a
95.33qualified small business, qualified investor, or qualified fund; and
95.34(2) the commissioner of revenue shall provide data contained in any applicable tax
95.35returns of a qualified small business, qualified investor, or qualified fund.
96.1EFFECTIVE DATE.This section is effective the day following final enactment.
96.2 Sec. 4. [136A.129] GREATER MINNESOTA INTERNSHIP PROGRAM.
96.3 Subdivision 1. Definitions. (a) For the purposes of this section, the terms defined in
96.4this subdivision have the meanings given to them.
96.5(b) "Eligible employer" means a taxpayer under section 290.01 with employees
96.6located in greater Minnesota.
96.7(c) "Eligible institution" means a Minnesota public postsecondary institution or a
96.8Minnesota private, nonprofit, baccalaureate degree-granting college or university.
96.9(d) "Eligible student" means a student enrolled in an eligible institution who has
96.10completed one-half of the credits necessary for the respective degree or certification.
96.11(e) "Greater Minnesota" means the area of the state outside of the counties of Anoka,
96.12Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington, and
96.13Wright.
96.14 Subd. 2. Program established. The Office of Higher Education shall administer
96.15a greater Minnesota internship program through eligible institutions to provide credit at
96.16the eligible institution for internships and tax credits for eligible employers who hire
96.17interns for employment in greater Minnesota.
96.18 Subd. 3. Program components. (a) An intern must be an eligible student who has
96.19been admitted to a major program that is related to the intern experience as determined
96.20by the eligible institution.
96.21(b) To participate in the program, an eligible institution must:
96.22(1) enter into written agreements with eligible employers to provide internships that
96.23are at least 12 weeks long and located in greater Minnesota;
96.24(2) determine that the work experience of the internship is related to the eligible
96.25student's course of study; and
96.26(3) provide academic credit for the successful completion of the internship or ensure
96.27that it fulfills requirements necessary to complete a vocational technical education program.
96.28(c) To participate in the program, an eligible employer must enter into a written
96.29agreement with an eligible institution specifying that the intern:
96.30(1) would not have been hired without the tax credit described in subdivision 4;
96.31(2) did not work for the employer in the same or a similar job prior to entering
96.32the agreement;
96.33(3) does not replace an existing employee;
96.34(4) has not previously participated in the program;
96.35(5) will be employed at a location in greater Minnesota;
97.1(6) will be paid at least minimum wage for a minimum of 16 hours per week for a
97.2period of at least 12 weeks; and
97.3(7) will be supervised and evaluated by the employer.
97.4(d) The written agreement between the eligible institution and the eligible employer
97.5must certify a credit amount to the employer, not to exceed $2,000 per intern. The total
97.6dollar amount of credits that an eligible institution certifies to eligible employers in a
97.7calendar year may not exceed the amount of its allocation under subdivision 4.
97.8(e) Participating eligible institutions and eligible employers must report annually to
97.9the office. The report must include at least the following:
97.10(1) the number of interns hired;
97.11(2) the number of hours and weeks worked by interns; and
97.12(3) the compensation paid to interns.
97.13(f) An internship required to complete an academic program does not qualify for the
97.14greater Minnesota internship program under this section.
97.15 Subd. 4. Tax credit allowed. An employer is entitled to a tax credit as provided in
97.16section 290.06, subdivision 36. The total amount of credits allocated in a calendar year
97.17must not exceed $2,000,000. The office shall determine relevant criteria to allocate the
97.18tax credits including the geographic distribution of credits to work locations outside the
97.19metropolitan area, and shall allocate credits to eligible institutions that meet the criteria on
97.20a first come, first served basis. Any credits allocated to an institution but not used may be
97.21reallocated to eligible institutions. The office shall allocate a portion of the administrative
97.22fee under section 290.06, subdivision 36, to participating eligible institutions for their
97.23administrative costs.
97.24 Subd. 5. Reports to the legislature. (a) By February 1, 2015, the office and the
97.25Department of Revenue shall report to the legislature on the greater Minnesota internship
97.26program. The report must include at least the following:
97.27(1) the number and dollar amount of credits allowed;
97.28(2) the number of interns employed under the program; and
97.29(3) the cost of administering the program.
97.30(b) By February 1, 2016, the office and the Department of Revenue shall report to the
97.31legislature with an analysis of the effectiveness of the program in stimulating businesses
97.32to hire interns and in assisting participating interns in finding permanent career positions.
97.33This report must include the number of students who participated in the program who
97.34were subsequently employed full-time by the employer.
97.35EFFECTIVE DATE.This section is effective for taxable years beginning after
97.36December 31, 2013.
98.1 Sec. 5. Minnesota Statutes 2012, section 289A.08, subdivision 3, is amended to read:
98.2 Subd. 3. Corporations. (a) A corporation that is subject to the state's jurisdiction to
98.3tax under section290.014, subdivision 5 , must file a return, except that a foreign operating
98.4corporation as defined in section
290.01, subdivision 6b, is not required to file a return.
98.5(b) Members of a unitary business that are required to file a combined report on one
98.6return must designate a member of the unitary business to be responsible for tax matters,
98.7including the filing of returns, the payment of taxes, additions to tax, penalties, interest,
98.8or any other payment, and for the receipt of refunds of taxes or interest paid in excess of
98.9taxes lawfully due. The designated member must be a member of the unitary business that
98.10is filing the single combined report and either:
98.11(1) a corporation that is subject to the taxes imposed by chapter 290; or
98.12(2) a corporation that is not subject to the taxes imposed by chapter 290:
98.13(i) Such corporation consents by filing the return as a designated member under this
98.14clause to remit taxes, penalties, interest, or additions to tax due from the members of the
98.15unitary business subject to tax, and receive refunds or other payments on behalf of other
98.16members of the unitary business. The member designated under this clause is a "taxpayer"
98.17for the purposes of this chapter and chapter 270C, and is liable for any liability imposed
98.18on the unitary business under this chapter and chapter 290.
98.19(ii) If the state does not otherwise have the jurisdiction to tax the member designated
98.20under this clause, consenting to be the designated member does not create the jurisdiction
98.21to impose tax on the designated member, other than as described in item (i).
98.22(iii) The member designated under this clause must apply for a business tax account
98.23identification number.
98.24(c) The commissioner shall adopt rules for the filing of one return on behalf of the
98.25members of an affiliated group of corporations that are required to file a combined report.
98.26All members of an affiliated group that are required to file a combined report must file one
98.27return on behalf of the members of the group under rules adopted by the commissioner.
98.28(d) If a corporation claims on a return that it has paid tax in excess of the amount of
98.29taxes lawfully due, that corporation must include on that return information necessary for
98.30payment of the tax in excess of the amount lawfully due by electronic means.
98.31EFFECTIVE DATE.This section is effective for taxable years beginning after
98.32December 31, 2012.
98.33 Sec. 6. Minnesota Statutes 2012, section 290.01, subdivision 19, as amended by Laws
98.342013, chapter 3, section 3, is amended to read:
99.1 Subd. 19. Net income. The term "net income" means the federal taxable income,
99.2as defined in section 63 of the Internal Revenue Code of 1986, as amended through the
99.3date named in this subdivision, incorporating the federal effective dates of changes to the
99.4Internal Revenue Code and any elections made by the taxpayer in accordance with the
99.5Internal Revenue Code in determining federal taxable income for federal income tax
99.6purposes, and with the modifications provided in subdivisions 19a to 19f.
99.7 In the case of a regulated investment company or a fund thereof, as defined in section
99.8851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
99.9company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
99.10except that:
99.11 (1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
99.12Revenue Code does not apply;
99.13 (2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal
99.14Revenue Code must be applied by allowing a deduction for capital gain dividends and
99.15exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal
99.16Revenue Code; and
99.17 (3) the deduction for dividends paid must also be applied in the amount of any
99.18undistributed capital gains which the regulated investment company elects to have treated
99.19as provided in section 852(b)(3)(D) of the Internal Revenue Code.
99.20 The net income of a real estate investment trust as defined and limited by section
99.21856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust
99.22taxable income as defined in section 857(b)(2) of the Internal Revenue Code.
99.23 The net income of a designated settlement fund as defined in section 468B(d) of
99.24the Internal Revenue Code means the gross income as defined in section 468B(b) of the
99.25Internal Revenue Code.
99.26 The Internal Revenue Code of 1986, as amended through April 14, 2011, shall be in
99.27effect for taxable years beginning after December 31, 1996, and before January 1, 2012,
99.28and for taxable years beginning after December 31, 2012. The Internal Revenue Code of
99.291986, as amended through January 3, 2013, is in effect for taxable years beginning after
99.30December 31, 2011, and before January 1, 2013.
99.31The provisions of sections 315 and 331 of the American Taxpayer Relief Act of
99.322012, Public Law 112-240, extension of increased expensing limitations and treatment
99.33of certain real property as section 179 property and extension and modification of bonus
99.34depreciation, are effective at the same time they become effective for federal purposes.
100.1 Except as otherwise provided, references to the Internal Revenue Code in
100.2subdivisions 19 to 19f mean the code in effect for purposes of determining net income for
100.3the applicable year.
100.4EFFECTIVE DATE.This section is effective for taxable years beginning after
100.5December 31, 2012.
100.6 Sec. 7. Minnesota Statutes 2012, section 290.01, subdivision 19b, is amended to read:
100.7 Subd. 19b. Subtractions from federal taxable income. For individuals, estates,
100.8and trusts, there shall be subtracted from federal taxable income:
100.9 (1) net interest income on obligations of any authority, commission, or
100.10instrumentality of the United States to the extent includable in taxable income for federal
100.11income tax purposes but exempt from state income tax under the laws of the United States;
100.12 (2) if included in federal taxable income, the amount of any overpayment of income
100.13tax to Minnesota or to any other state, for any previous taxable year, whether the amount
100.14is received as a refund or as a credit to another taxable year's income tax liability;
100.15 (3) the amount paid to others, less the amount used to claim the credit allowed under
100.16section290.0674 , not to exceed $1,625 for each qualifying child in grades kindergarten
100.17to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and
100.18transportation of each qualifying child in attending an elementary or secondary school
100.19situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a
100.20resident of this state may legally fulfill the state's compulsory attendance laws, which
100.21is not operated for profit, and which adheres to the provisions of the Civil Rights Act
100.22of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or
100.23tuition as defined in section290.0674, subdivision 1 , clause (1). As used in this clause,
100.24"textbooks" includes books and other instructional materials and equipment purchased
100.25or leased for use in elementary and secondary schools in teaching only those subjects
100.26legally and commonly taught in public elementary and secondary schools in this state.
100.27Equipment expenses qualifying for deduction includes expenses as defined and limited in
100.28section290.0674, subdivision 1 , clause (3). "Textbooks" does not include instructional
100.29books and materials used in the teaching of religious tenets, doctrines, or worship, the
100.30purpose of which is to instill such tenets, doctrines, or worship, nor does it include books
100.31or materials for, or transportation to, extracurricular activities including sporting events,
100.32musical or dramatic events, speech activities, driver's education, or similar programs. No
100.33deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or
100.34the qualifying child's vehicle to provide such transportation for a qualifying child. For
101.1purposes of the subtraction provided by this clause, "qualifying child" has the meaning
101.2given in section 32(c)(3) of the Internal Revenue Code;
101.3 (4) income as provided under section290.0802 ;
101.4 (5) to the extent included in federal adjusted gross income, income realized on
101.5disposition of property exempt from tax under section290.491 ;
101.6 (6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E)
101.7of the Internal Revenue Code in determining federal taxable income by an individual
101.8who does not itemize deductions for federal income tax purposes for the taxable year, an
101.9amount equal to 50 percent of the excess of charitable contributions over $500 allowable
101.10as a deduction for the taxable year under section 170(a) of the Internal Revenue Code,
101.11under the provisions of Public Law 109-1 and Public Law 111-126;
101.12 (7) for individuals who are allowed a federal foreign tax credit for taxes that do not
101.13qualify for a credit under section290.06, subdivision 22 , an amount equal to the carryover
101.14of subnational foreign taxes for the taxable year, but not to exceed the total subnational
101.15foreign taxes reported in claiming the foreign tax credit. For purposes of this clause,
101.16"federal foreign tax credit" means the credit allowed under section 27 of the Internal
101.17Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed
101.18under section 904(c) of the Internal Revenue Code minus national level foreign taxes to
101.19the extent they exceed the federal foreign tax credit;
101.20 (8) in each of the five tax years immediately following the tax year in which an
101.21addition is required under subdivision 19a, clause (7), or 19c, clause(15) (12), in the case
101.22of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
101.23delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount
101.24of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c,
101.25clause(15) (12), in the case of a shareholder of an S corporation, minus the positive value
101.26of any net operating loss under section 172 of the Internal Revenue Code generated for the
101.27tax year of the addition. The resulting delayed depreciation cannot be less than zero;
101.28 (9) job opportunity building zone income as provided under section469.316 ;
101.29 (10) to the extent included in federal taxable income, the amount of compensation
101.30paid to members of the Minnesota National Guard or other reserve components of the
101.31United States military for active service, excluding compensation for services performed
101.32under the Active Guard Reserve (AGR) program. For purposes of this clause, "active
101.33service" means (i) state active service as defined in section190.05, subdivision 5a , clause
101.34(1); or (ii) federally funded state active service as defined in section190.05, subdivision
101.355b , but "active service" excludes service performed in accordance with section
190.08,
101.36subdivision 3 ;
102.1 (11) to the extent included in federal taxable income, the amount of compensation
102.2paid to Minnesota residents who are members of the armed forces of the United States
102.3or United Nations for active duty performed under United States Code, title 10; or the
102.4authority of the United Nations;
102.5 (12) an amount, not to exceed $10,000, equal to qualified expenses related to a
102.6qualified donor's donation, while living, of one or more of the qualified donor's organs
102.7to another person for human organ transplantation. For purposes of this clause, "organ"
102.8means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow;
102.9"human organ transplantation" means the medical procedure by which transfer of a human
102.10organ is made from the body of one person to the body of another person; "qualified
102.11expenses" means unreimbursed expenses for both the individual and the qualified donor
102.12for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses
102.13may be subtracted under this clause only once; and "qualified donor" means the individual
102.14or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An
102.15individual may claim the subtraction in this clause for each instance of organ donation for
102.16transplantation during the taxable year in which the qualified expenses occur;
102.17 (13) in each of the five tax years immediately following the tax year in which an
102.18addition is required under subdivision 19a, clause (8), or 19c, clause(16) (13), in the case
102.19of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth of
102.20the addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause(16)
102.21 (13), in the case of a shareholder of a corporation that is an S corporation, minus the
102.22positive value of any net operating loss under section 172 of the Internal Revenue Code
102.23generated for the tax year of the addition. If the net operating loss exceeds the addition for
102.24the tax year, a subtraction is not allowed under this clause;
102.25 (14) to the extent included in the federal taxable income of a nonresident of
102.26Minnesota, compensation paid to a service member as defined in United States Code, title
102.2710, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief
102.28Act, Public Law 108-189, section 101(2);
102.29 (15) to the extent included in federal taxable income, the amount of national service
102.30educational awards received from the National Service Trust under United States Code,
102.31title 42, sections 12601 to 12604, for service in an approved Americorps National Service
102.32program;
102.33(16) to the extent included in federal taxable income, discharge of indebtedness
102.34income resulting from reacquisition of business indebtedness included in federal taxable
102.35income under section 108(i) of the Internal Revenue Code. This subtraction applies only
103.1to the extent that the income was included in net income in a prior year as a result of the
103.2addition under section290.01, subdivision 19a , clause (16); and
103.3(17) the amount of the net operating loss allowed under section290.095, subdivision
103.411 , paragraph (c); and
103.5(18) the amount of expenses not allowed for federal income tax purposes due
103.6to claiming the railroad track maintenance credit under section 45G(a) of the Internal
103.7Revenue Code.
103.8EFFECTIVE DATE.This section is effective for taxable years beginning after
103.9December 31, 2012.
103.10 Sec. 8. Minnesota Statutes 2012, section 290.01, subdivision 19c, is amended to read:
103.11 Subd. 19c. Corporations; additions to federal taxable income. For corporations,
103.12there shall be added to federal taxable income:
103.13 (1) the amount of any deduction taken for federal income tax purposes for income,
103.14excise, or franchise taxes based on net income or related minimum taxes, including but not
103.15limited to the tax imposed under section290.0922 , paid by the corporation to Minnesota,
103.16another state, a political subdivision of another state, the District of Columbia, or any
103.17foreign country or possession of the United States;
103.18 (2) interest not subject to federal tax upon obligations of: the United States, its
103.19possessions, its agencies, or its instrumentalities; the state of Minnesota or any other
103.20state, any of its political or governmental subdivisions, any of its municipalities, or any
103.21of its governmental agencies or instrumentalities; the District of Columbia; or Indian
103.22tribal governments;
103.23 (3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal
103.24Revenue Code;
103.25 (4) the amount of any net operating loss deduction taken for federal income tax
103.26purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations loss
103.27deduction under section 810 of the Internal Revenue Code;
103.28 (5) the amount of any special deductions taken for federal income tax purposes
103.29under sections 241 to 247 and 965 of the Internal Revenue Code;
103.30 (6) losses from the business of mining, as defined in section290.05, subdivision 1 ,
103.31clause (a), that are not subject to Minnesota income tax;
103.32 (7) the amount of any capital losses deducted for federal income tax purposes under
103.33sections 1211 and 1212 of the Internal Revenue Code;
103.34(8) the exempt foreign trade income of a foreign sales corporation under sections
103.35921(a) and 291 of the Internal Revenue Code;
104.1(9) (8) the amount of percentage depletion deducted under sections 611 through
104.2614 and 291 of the Internal Revenue Code;
104.3(10) (9) for certified pollution control facilities placed in service in a taxable year
104.4beginning before December 31, 1986, and for which amortization deductions were elected
104.5under section 169 of the Internal Revenue Code of 1954, as amended through December
104.631, 1985, the amount of the amortization deduction allowed in computing federal taxable
104.7income for those facilities;
104.8(11) the amount of any deemed dividend from a foreign operating corporation
104.9determined pursuant to section
290.17, subdivision 4, paragraph (g). The deemed dividend
104.10shall be reduced by the amount of the addition to income required by clauses (20), (21),
104.11(22), and (23);
104.12(12) (10) the amount of a partner's pro rata share of net income which does not flow
104.13through to the partner because the partnership elected to pay the tax on the income under
104.14section 6242(a)(2) of the Internal Revenue Code;
104.15(13) the amount of net income excluded under section 114 of the Internal Revenue
104.16Code;
104.17(14) (11) any increase in subpart F income, as defined in section 952(a) of the
104.18Internal Revenue Code, for the taxable year when subpart F income is calculated without
104.19regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343;
104.20(15) (12) 80 percent of the depreciation deduction allowed under section
104.21168(k)(1)(A) and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause, if
104.22the taxpayer has an activity that in the taxable year generates a deduction for depreciation
104.23under section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the taxable
104.24year that the taxpayer is not allowed to claim for the taxable year, "the depreciation
104.25allowed under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess
104.26of the depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A)
104.27over the amount of the loss from the activity that is not allowed in the taxable year. In
104.28succeeding taxable years when the losses not allowed in the taxable year are allowed, the
104.29depreciation under section 168(k)(1)(A) and (k)(4)(A) is allowed;
104.30(16) (13) 80 percent of the amount by which the deduction allowed by section 179 of
104.31the Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal
104.32Revenue Code of 1986, as amended through December 31, 2003;
104.33(17) (14) to the extent deducted in computing federal taxable income, the amount of
104.34the deduction allowable under section 199 of the Internal Revenue Code;
104.35(18) for taxable years beginning before January 1, 2013, the exclusion allowed under
104.36section 139A of the Internal Revenue Code for federal subsidies for prescription drug plans;
105.1(19) (15) the amount of expenses disallowed under section
290.10, subdivision 2 ; and
105.2(20) an amount equal to the interest and intangible expenses, losses, and costs paid,
105.3accrued, or incurred by any member of the taxpayer's unitary group to or for the benefit
105.4of a corporation that is a member of the taxpayer's unitary business group that qualifies
105.5as a foreign operating corporation. For purposes of this clause, intangible expenses and
105.6costs include:
105.7(i) expenses, losses, and costs for, or related to, the direct or indirect acquisition,
105.8use, maintenance or management, ownership, sale, exchange, or any other disposition of
105.9intangible property;
105.10(ii) losses incurred, directly or indirectly, from factoring transactions or discounting
105.11transactions;
105.12(iii) royalty, patent, technical, and copyright fees;
105.13(iv) licensing fees; and
105.14(v) other similar expenses and costs.
105.15For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent
105.16applications, trade names, trademarks, service marks, copyrights, mask works, trade
105.17secrets, and similar types of intangible assets.
105.18This clause does not apply to any item of interest or intangible expenses or costs paid,
105.19accrued, or incurred, directly or indirectly, to a foreign operating corporation with respect
105.20to such item of income to the extent that the income to the foreign operating corporation
105.21is income from sources without the United States as defined in subtitle A, chapter 1,
105.22subchapter N, part 1, of the Internal Revenue Code;
105.23(21) except as already included in the taxpayer's taxable income pursuant to clause
105.24(20), any interest income and income generated from intangible property received or
105.25accrued by a foreign operating corporation that is a member of the taxpayer's unitary
105.26group. For purposes of this clause, income generated from intangible property includes:
105.27(i) income related to the direct or indirect acquisition, use, maintenance or
105.28management, ownership, sale, exchange, or any other disposition of intangible property;
105.29(ii) income from factoring transactions or discounting transactions;
105.30(iii) royalty, patent, technical, and copyright fees;
105.31(iv) licensing fees; and
105.32(v) other similar income.
105.33For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent
105.34applications, trade names, trademarks, service marks, copyrights, mask works, trade
105.35secrets, and similar types of intangible assets.
106.1This clause does not apply to any item of interest or intangible income received or accrued
106.2by a foreign operating corporation with respect to such item of income to the extent that
106.3the income is income from sources without the United States as defined in subtitle A,
106.4chapter 1, subchapter N, part 1, of the Internal Revenue Code;
106.5(22) the dividends attributable to the income of a foreign operating corporation that
106.6is a member of the taxpayer's unitary group in an amount that is equal to the dividends
106.7paid deduction of a real estate investment trust under section 561(a) of the Internal
106.8Revenue Code for amounts paid or accrued by the real estate investment trust to the
106.9foreign operating corporation;
106.10(23) the income of a foreign operating corporation that is a member of the taxpayer's
106.11unitary group in an amount that is equal to gains derived from the sale of real or personal
106.12property located in the United States;
106.13(24) for taxable years beginning before January 1, 2010, the additional amount
106.14allowed as a deduction for donation of computer technology and equipment under section
106.15170(e)(6) of the Internal Revenue Code, to the extent deducted from taxable income; and
106.16(25) (16) discharge of indebtedness income resulting from reacquisition of business
106.17indebtedness and deferred under section 108(i) of the Internal Revenue Code.
106.18EFFECTIVE DATE.This section is effective for taxable years beginning after
106.19December 31, 2012.
106.20 Sec. 9. Minnesota Statutes 2012, section 290.01, subdivision 19d, is amended to read:
106.21 Subd. 19d. Corporations; modifications decreasing federal taxable income. For
106.22corporations, there shall be subtracted from federal taxable income after the increases
106.23provided in subdivision 19c:
106.24 (1) the amount of foreign dividend gross-up added to gross income for federal
106.25income tax purposes under section 78 of the Internal Revenue Code;
106.26 (2) the amount of salary expense not allowed for federal income tax purposes due to
106.27claiming the work opportunity credit under section 51 of the Internal Revenue Code;
106.28 (3) any dividend (not including any distribution in liquidation) paid within the
106.29taxable year by a national or state bank to the United States, or to any instrumentality of
106.30the United States exempt from federal income taxes, on the preferred stock of the bank
106.31owned by the United States or the instrumentality;
106.32 (4) amounts disallowed for intangible drilling costs due to differences between
106.33this chapter and the Internal Revenue Code in taxable years beginning before January
106.341, 1987, as follows:
107.1 (i) to the extent the disallowed costs are represented by physical property, an amount
107.2equal to the allowance for depreciation under Minnesota Statutes 1986, section290.09,
107.3subdivision 7 , subject to the modifications contained in subdivision 19e; and
107.4 (ii) to the extent the disallowed costs are not represented by physical property, an
107.5amount equal to the allowance for cost depletion under Minnesota Statutes 1986, section
107.6290.09, subdivision 8
;
107.7 (5) the deduction for capital losses pursuant to sections 1211 and 1212 of the
107.8Internal Revenue Code, except that:
107.9 (i) for capital losses incurred in taxable years beginning after December 31, 1986,
107.10capital loss carrybacks shall not be allowed;
107.11 (ii) for capital losses incurred in taxable years beginning after December 31, 1986,
107.12a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be
107.13allowed;
107.14 (iii) for capital losses incurred in taxable years beginning before January 1, 1987, a
107.15capital loss carryback to each of the three taxable years preceding the loss year, subject to
107.16the provisions of Minnesota Statutes 1986, section290.16 , shall be allowed; and
107.17 (iv) for capital losses incurred in taxable years beginning before January 1, 1987,
107.18a capital loss carryover to each of the five taxable years succeeding the loss year to the
107.19extent such loss was not used in a prior taxable year and subject to the provisions of
107.20Minnesota Statutes 1986, section290.16 , shall be allowed;
107.21 (6) an amount for interest and expenses relating to income not taxable for federal
107.22income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and
107.23expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or
107.24291 of the Internal Revenue Code in computing federal taxable income;
107.25 (7) in the case of mines, oil and gas wells, other natural deposits, and timber for
107.26which percentage depletion was disallowed pursuant to subdivision 19c, clause(9) (8), a
107.27reasonable allowance for depletion based on actual cost. In the case of leases the deduction
107.28must be apportioned between the lessor and lessee in accordance with rules prescribed
107.29by the commissioner. In the case of property held in trust, the allowable deduction must
107.30be apportioned between the income beneficiaries and the trustee in accordance with the
107.31pertinent provisions of the trust, or if there is no provision in the instrument, on the basis
107.32of the trust's income allocable to each;
107.33 (8) for certified pollution control facilities placed in service in a taxable year
107.34beginning before December 31, 1986, and for which amortization deductions were elected
107.35under section 169 of the Internal Revenue Code of 1954, as amended through December
108.131, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes
108.21986, section290.09, subdivision 7 ;
108.3 (9) amounts included in federal taxable income that are due to refunds of income,
108.4excise, or franchise taxes based on net income or related minimum taxes paid by the
108.5corporation to Minnesota, another state, a political subdivision of another state, the
108.6District of Columbia, or a foreign country or possession of the United States to the extent
108.7that the taxes were added to federal taxable income undersection
290.01, subdivision 19c
108.8clause (1), in a prior taxable year;
108.9(10) 80 percent of royalties, fees, or other like income accrued or received from a
108.10foreign operating corporation or a foreign corporation which is part of the same unitary
108.11business as the receiving corporation, unless the income resulting from such payments or
108.12accruals is income from sources within the United States as defined in subtitle A, chapter
108.131, subchapter N, part 1, of the Internal Revenue Code;
108.14(11) (10) income or gains from the business of mining as defined in section
290.05,
108.15subdivision 1 , clause (a), that are not subject to Minnesota franchise tax;
108.16(12) (11) the amount of disability access expenditures in the taxable year which are not
108.17allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code;
108.18(13) (12) the amount of qualified research expenses not allowed for federal income
108.19tax purposes under section 280C(c) of the Internal Revenue Code, but only to the extent
108.20that the amount exceeds the amount of the credit allowed under section290.068 ;
108.21(14) (13) the amount of salary expenses not allowed for federal income tax purposes
108.22due to claiming the Indian employment credit under section 45A(a) of the Internal
108.23Revenue Code;
108.24(15) for a corporation whose foreign sales corporation, as defined in section 922
108.25of the Internal Revenue Code, constituted a foreign operating corporation during any
108.26taxable year ending before January 1, 1995, and a return was filed by August 15, 1996,
108.27claiming the deduction under section
290.21, subdivision 4, for income received from
108.28the foreign operating corporation, an amount equal to
1.23 multiplied by the amount of
108.29income excluded under section 114 of the Internal Revenue Code, provided the income is
108.30not income of a foreign operating company;
108.31(16) (14) any decrease in subpart F income, as defined in section 952(a) of the
108.32Internal Revenue Code, for the taxable year when subpart F income is calculated without
108.33regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343;
108.34(17) (15) in each of the five tax years immediately following the tax year in which an
108.35addition is required under subdivision 19c, clause(15) (12), an amount equal to one-fifth
108.36of the delayed depreciation. For purposes of this clause, "delayed depreciation" means the
109.1amount of the addition made by the taxpayer under subdivision 19c, clause(15) (12). The
109.2resulting delayed depreciation cannot be less than zero;
109.3(18) (16) in each of the five tax years immediately following the tax year in which an
109.4addition is required under subdivision 19c, clause(16) (13), an amount equal to one-fifth
109.5of the amount of the addition;and
109.6(19) (17) to the extent included in federal taxable income, discharge of indebtedness
109.7income resulting from reacquisition of business indebtedness included in federal taxable
109.8income under section 108(i) of the Internal Revenue Code. This subtraction applies only
109.9to the extent that the income was included in net income in a prior year as a result of the
109.10addition undersection
290.01, subdivision 19c(25). (16); and
109.11(18) the amount of expenses not allowed for federal income tax purposes due
109.12to claiming the railroad track maintenance credit under section 45G(a) of the Internal
109.13Revenue Code.
109.14EFFECTIVE DATE.This section is effective for taxable years beginning after
109.15December 31, 2012.
109.16 Sec. 10. Minnesota Statutes 2012, section 290.06, subdivision 2c, is amended to read:
109.17 Subd. 2c. Schedules of rates for individuals, estates, and trusts. (a) The income
109.18taxes imposed by this chapter upon married individuals filing joint returns and surviving
109.19spouses as defined in section 2(a) of the Internal Revenue Code must be computed by
109.20applying to their taxable net income the following schedule of rates:
109.21 (1) On the first$25,680 $35,480, 5.35 percent;
109.22 (2) On all over$25,680 $35,480, but not over $102,030 $140,960, 7.05 percent;
109.23 (3) On all over$102,030 $140,960, but not over $250,000, 7.85 percent.;
109.24(4) On all over $250,000, 9.85 percent.
109.25 Married individuals filing separate returns, estates, and trusts must compute their
109.26income tax by applying the above rates to their taxable income, except that the income
109.27brackets will be one-half of the above amounts.
109.28 (b) The income taxes imposed by this chapter upon unmarried individuals must be
109.29computed by applying to taxable net income the following schedule of rates:
109.30 (1) On the first$17,570 $24,270, 5.35 percent;
109.31 (2) On all over$17,570 $24,270, but not over $57,710 $79,730, 7.05 percent;
109.32 (3) On all over$57,710 $79,730, but not over $150,000, 7.85 percent.;
109.33(4) On all over $150,000, 9.85 percent.
110.1 (c) The income taxes imposed by this chapter upon unmarried individuals qualifying
110.2as a head of household as defined in section 2(b) of the Internal Revenue Code must be
110.3computed by applying to taxable net income the following schedule of rates:
110.4 (1) On the first$21,630 $29,880, 5.35 percent;
110.5 (2) On all over$21,630 $29,880, but not over $86,910 $120,070, 7.05 percent;
110.6 (3) On all over$86,910 $120,070, but not over $200,000, 7.85 percent.;
110.7(4) On all over $200,000, 9.85 percent.
110.8 (d) In lieu of a tax computed according to the rates set forth in this subdivision, the
110.9tax of any individual taxpayer whose taxable net income for the taxable year is less than
110.10an amount determined by the commissioner must be computed in accordance with tables
110.11prepared and issued by the commissioner of revenue based on income brackets of not
110.12more than $100. The amount of tax for each bracket shall be computed at the rates set
110.13forth in this subdivision, provided that the commissioner may disregard a fractional part of
110.14a dollar unless it amounts to 50 cents or more, in which case it may be increased to $1.
110.15 (e) An individual who is not a Minnesota resident for the entire year must compute
110.16the individual's Minnesota income tax as provided in this subdivision. After the
110.17application of the nonrefundable credits provided in this chapter, the tax liability must
110.18then be multiplied by a fraction in which:
110.19 (1) the numerator is the individual's Minnesota source federal adjusted gross income
110.20as defined in section 62 of the Internal Revenue Code and increased by the additions
110.21required under section290.01, subdivision 19a , clauses (1), (5), (6), (7), (8), (9), (12),
110.22(13), and (16) to (18), and reduced by the Minnesota assignable portion of the subtraction
110.23for United States government interest under section290.01, subdivision 19b , clause
110.24(1), and the subtractions under section290.01, subdivision 19b , clauses (8), (9), (13),
110.25(14), (16), and (17), after applying the allocation and assignability provisions of section
110.26290.081
, clause (a), or
290.17 ; and
110.27 (2) the denominator is the individual's federal adjusted gross income as defined in
110.28section 62 of the Internal Revenue Code of 1986, increased by the amounts specified in
110.29section290.01, subdivision 19a , clauses (1), (5), (6), (7), (8), (9), (12), (13), and (16) to
110.30(18), and reduced by the amounts specified in section290.01, subdivision 19b , clauses (1),
110.31(8), (9), (13), (14), (16), and (17).
110.32EFFECTIVE DATE.This section is effective for taxable years beginning after
110.33December 31, 2012.
110.34 Sec. 11. Minnesota Statutes 2012, section 290.06, subdivision 2d, is amended to read:
111.1 Subd. 2d. Inflation adjustment of brackets. (a) For taxable years beginning after
111.2December 31,2000 2013, the minimum and maximum dollar amounts for each rate
111.3bracket for which a tax is imposed in subdivision 2c shall be adjusted for inflation by the
111.4percentage determined under paragraph (b). For the purpose of making the adjustment as
111.5provided in this subdivision all of the rate brackets provided in subdivision 2c shall be the
111.6rate brackets as they existed for taxable years beginning after December 31,1999 2012,
111.7and before January 1,2001 2014. The rate applicable to any rate bracket must not be
111.8changed. The dollar amounts setting forth the tax shall be adjusted to reflect the changes
111.9in the rate brackets. The rate brackets as adjusted must be rounded to the nearest $10
111.10amount. If the rate bracket ends in $5, it must be rounded up to the nearest $10 amount.
111.11(b) The commissioner shall adjust the rate brackets and by the percentage determined
111.12pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in
111.13section 1(f)(3)(B) the word"1999" "2012" shall be substituted for the word "1992." For
111.142001 2014, the commissioner shall then determine the percent change from the 12 months
111.15ending on August 31,1999 2012, to the 12 months ending on August 31, 2000 2013, and
111.16in each subsequent year, from the 12 months ending on August 31,1999 2012, to the 12
111.17months ending on August 31 of the year preceding the taxable year. The determination of
111.18the commissioner pursuant to this subdivision shall not be considered a "rule" and shall
111.19not be subject to the Administrative Procedure Act contained in chapter 14.
111.20No later than December 15 of each year, the commissioner shall announce the
111.21specific percentage that will be used to adjust the tax rate brackets.
111.22EFFECTIVE DATE.This section is effective for taxable years beginning after
111.23December 31, 2012.
111.24 Sec. 12. Minnesota Statutes 2012, section 290.06, is amended by adding a subdivision
111.25to read:
111.26 Subd. 36. Greater Minnesota internship credit. (a) A taxpayer who is an eligible
111.27employer may take a credit against the tax due under this chapter equal to the lesser of:
111.28(1) 40 percent of the compensation paid to an intern qualifying under the program
111.29established under section 136A.129, but not to exceed $2,000 per intern; or
111.30(2) the amount certified to the taxpayer by an eligible institution out of the
111.31institution's allocation of credits for the calendar year, as provided in section 136A.129.
111.32(b) Credits allowed to a partnership, a limited liability company taxed as a
111.33partnership, an S corporation, or multiple owners of property are passed through to the
111.34partners, members, shareholders, or owners, respectively, pro rata to each partner, member,
111.35shareholder, or owner based on their share of the entity's income for the taxable year.
112.1(c) If the amount of credit which the taxpayer is eligible to receive under this
112.2subdivision exceeds the taxpayer's tax liability under this chapter, the commissioner of
112.3revenue shall refund the excess to the taxpayer.
112.4(d) An amount necessary to pay claims for refund provided in this subdivision is
112.5appropriated from the general fund to the commissioner of revenue.
112.6(e) An amount equal to one percent of the total amount of the credits authorized
112.7under section 136A.129, subdivision 4, for an administrative fee for the Office of Higher
112.8Education and participating eligible institutions is appropriated from the general fund to
112.9the commissioner of revenue, for a transfer to the Office of Higher Education.
112.10(f) For purposes of this subdivision, the terms "eligible employer" and "eligible
112.11institution" have the meanings given in section 136A.129.
112.12EFFECTIVE DATE.This section is effective for taxable years beginning after
112.13December 31, 2013.
112.14 Sec. 13. Minnesota Statutes 2012, section 290.0677, subdivision 2, is amended to read:
112.15 Subd. 2. Definitions. (a) For purposes of this section, the following terms have
112.16the meanings given.
112.17 (b) "Designated area" means a:
112.18 (1) combat zone designated by Executive Order from the President of the United
112.19States;
112.20 (2) qualified hazardous duty area, designated in Public Law; or
112.21 (3) location certified by the U. S. Department of Defense as eligible for combat zone
112.22tax benefits due to the location's direct support of military operations.
112.23 (c) "Active military service" means active duty service in any of the United States
112.24armed forces, the National Guard, or reserves.
112.25 (d) "Qualified individual" means an individual who has:
112.26 (1)either (i) met one of the following criteria:
112.27 (i) has served at least 20 years in the militaryor;
112.28 (ii) has a service-connected disability rating of 100 percent for a total and permanent
112.29disability; or
112.30 (iii) has been determined by the military to be eligible for compensation from a
112.31pension or other retirement pay from the federal government for service in the military,
112.32as computed under United States Code, title 10, sections 1401 to 1414, 1447 to 1455,
112.33or 12733; and
112.34 (2) separated from military service before the end of the taxable year.
113.1 (e) "Adjusted gross income" has the meaning given in section 61 of the Internal
113.2Revenue Code.
113.3EFFECTIVE DATE.This section is effective for taxable years beginning after
113.4December 31, 2012.
113.5 Sec. 14. Minnesota Statutes 2012, section 290.068, subdivision 3, is amended to read:
113.6 Subd. 3. Limitation; carryover. (a)(1) The credit for a taxable year beginning
113.7before January 1, 2010, and after December 31, 2012, shall not exceed the liability for tax.
113.8"Liability for tax" for purposes of this section means the sum of the tax imposed under
113.9section290.06, subdivision subdivisions 1 and 2c , for the taxable year reduced by the sum
113.10of the nonrefundable credits allowed under this chapter, on all of the entities required to
113.11be included on the combined report of the unitary business. If the amount of the credit
113.12allowed exceeds the liability for tax of the taxpayer, but is allowed as a result of the
113.13liability for tax of other members of the unitary group for the taxable year, the taxpayer
113.14must allocate the excess as a research credit to another member of the unitary group.
113.15 (2) In the case of a corporation which is a partner in a partnership, the credit allowed
113.16for the taxable year shall not exceed the lesser of the amount determined under clause (1)
113.17for the taxable year or an amount (separately computed with respect to the corporation's
113.18interest in the trade or business or entity) equal to the amount of tax attributable to that
113.19portion of taxable income which is allocable or apportionable to the corporation's interest
113.20in the trade or business or entity.
113.21 (b) If the amount of the credit determined under this section for any taxable year
113.22exceeds the limitation under clause (a) including amounts allocated to other members
113.23of the unitary group, the excess shall be a research credit carryover to each of the 15
113.24succeeding taxable years. The entire amount of the excess unused credit for the taxable
113.25year shall be carried first to the earliest of the taxable years to which the credit may be
113.26carried and then to each successive year to which the credit may be carried. The amount
113.27of the unused credit which may be added under this clause shall not exceed the taxpayer's
113.28liability for tax less the research credit for the taxable year.
113.29EFFECTIVE DATE.This section is effective for taxable years beginning after
113.30December 31, 2012.
113.31 Sec. 15. Minnesota Statutes 2012, section 290.068, subdivision 6a, is amended to read:
113.32 Subd. 6a. Credit to be refundable. If the amount of credit allowed in this section
113.33for qualified research expenses incurred in taxable years beginning after December 31,
114.12009, and before January 1, 2013, exceeds the taxpayer's tax liability under this chapter,
114.2the commissioner shall refund the excess amount. The credit allowed for qualified research
114.3expenses incurred in taxable years beginning after December 31, 2009, and before January
114.41, 2013, must be used before any research credit earned under subdivision 3.
114.5EFFECTIVE DATE.This section is effective for taxable years beginning after
114.6December 31, 2012.
114.7 Sec. 16. Minnesota Statutes 2012, section 290.0681, subdivision 1, is amended to read:
114.8 Subdivision 1. Definitions. (a) For purposes of this section, the following terms
114.9have the meanings given.
114.10(b) "Account" means the historic credit administration account in the special
114.11revenue fund.
114.12(c) "Office" means the State Historic Preservation Office of the Minnesota Historical
114.13Society.
114.14(d) "Project" means rehabilitation of a certified historic structure, as defined in
114.15section 47(c)(3)(A) of the Internal Revenue Code, that is located in Minnesota and is
114.16allowed a federal creditunder section 47(a)(2) of the Internal Revenue Code.
114.17(e) "Society" means the Minnesota Historical Society.
114.18(f) "Federal credit" means the credit allowed under section 47(a)(2) of the Internal
114.19Revenue Code.
114.20(g) "Placed in service" has the meaning used in section 47 of the Internal Revenue
114.21Code.
114.22(h) "Qualified rehabilitation expenditures" has the meaning given in section 47 of
114.23the Internal Revenue Code.
114.24EFFECTIVE DATE.This section is effective the day following final enactment.
114.25 Sec. 17. Minnesota Statutes 2012, section 290.0681, subdivision 3, is amended to read:
114.26 Subd. 3. Applications; allocations. (a) To qualify for a credit or grant under this
114.27section, the developer of a project must apply to the office before the rehabilitation begins.
114.28The application must contain the information and be in the form prescribed by the office.
114.29The office may collect a fee for application of up to$5,000 0.5 percent of qualified
114.30rehabilitation expenditures, up to $40,000, based on estimated qualified rehabilitation
114.31expenses expenditures, to offset costs associated with personnel and administrative
114.32expenses related to administering the credit and preparing the economic impact report
114.33in subdivision 9. Application fees are deposited in the account. The application must
115.1indicate if the application is for a credit or a grant in lieu of the credit or a combination of
115.2the two and designate the taxpayer qualifying for the credit or the recipient of the grant.
115.3 (b) Upon approving an application for credit, the office shall issue allocation
115.4certificates that:
115.5 (1) verify eligibility for the credit or grant;
115.6 (2) state the amount of credit or grant anticipated with the project, with the credit
115.7amount equal to 100 percent and the grant amount equal to 90 percent of the federal
115.8credit anticipated in the application;
115.9 (3) state that the credit or grant allowed may increase or decrease if the federal
115.10credit the project receives at the time it is placed in service is different than the amount
115.11anticipated at the time the allocation certificate is issued; and
115.12 (4) state the fiscal year in which the credit or grant is allocated, and that the taxpayer
115.13or grant recipient is entitled to receive the credit or grant at the time the project is placed
115.14in service, provided that date is within three calendar years following the issuance of
115.15the allocation certificate.
115.16 (c) The office, in consultation with the commissionerof revenue, shall determine
115.17if the project is eligible for a credit or a grant under this section and must notify the
115.18developer in writing of its determination. Eligibility for the credit is subject to review
115.19and audit by the commissionerof revenue.
115.20 (d) The federal credit recapture and repayment requirements under section 50 of the
115.21Internal Revenue Code do not apply to the credit allowed under this section.
115.22(e) Any decision of the office under paragraph (c) may be challenged as a contested
115.23case under chapter 14. The contested case proceeding must be initiated within 45 days of
115.24the date of written notification by the office.
115.25EFFECTIVE DATE.This section is effective the day following final enactment
115.26and the change in paragraph (a) applies to applications first received on or after the day
115.27following final enactment.
115.28 Sec. 18. Minnesota Statutes 2012, section 290.0681, subdivision 4, is amended to read:
115.29 Subd. 4. Credit certificates; grants. (a)(1) The developer of a project for which the
115.30office has issued an allocation certificate must notify the office when the project is placed
115.31in service. Upon verifying that the project has been placed in service, and was allowed a
115.32federal credit, the office must issue a credit certificate to the taxpayer designated in the
115.33application or must issue a grant to the recipient designated in the application. The credit
115.34certificate must state the amount of the credit.
115.35 (2) The credit amount equals the federal credit allowed for the project.
116.1 (3) The grant amount equals 90 percent of the federal credit allowed for the project.
116.2 (b) The recipient of a credit certificate may assign the certificate to another taxpayer,
116.3which is then allowed the credit under this section or section297I.20, subdivision 3 . An
116.4assignment is not valid unless the assignee notifies the commissioner within 30 days of the
116.5date that the assignment is made. The commissioner shall prescribe the forms necessary
116.6for notifying the commissioner of the assignment of a credit certificate and for claiming
116.7a credit by assignment.
116.8 (c) Credits passed through to partners, members, shareholders, or owners pursuant to
116.9subdivision 5 are not an assignment of a credit certificate under this subdivision.
116.10 (d) A grant agreement between the office and the recipient of a grant may allow the
116.11grant to be issued to another individual or entity.
116.12EFFECTIVE DATE.This section is effective the day following final enactment.
116.13 Sec. 19. Minnesota Statutes 2012, section 290.0681, subdivision 5, is amended to read:
116.14 Subd. 5. Partnerships; multiple owners. Credits granted to a partnership, a limited
116.15liability company taxed as a partnership, S corporation, or multiple owners of property
116.16are passed through to the partners, members, shareholders, or owners, respectively, pro
116.17rata to each partner, member, shareholder, or owner based on their share of the entity's
116.18assets or as specially allocated in their organizational documents or any other executed
116.19agreement, as of the last day of the taxable year.
116.20EFFECTIVE DATE.This section is effective the day following final enactment.
116.21 Sec. 20. Minnesota Statutes 2012, section 290.0681, subdivision 10, is amended to read:
116.22 Subd. 10. Sunset. This section expires after fiscal year2015 2021, except that
116.23the office's authority to issue credit certificates under subdivision 4 based on allocation
116.24certificates that were issued before fiscal year2016 2022 remains in effect through 2018
116.25 2024, and the reporting requirements in subdivision 9 remain in effect through the year
116.26following the year in which all allocation certificates have either been canceled or resulted
116.27in issuance of credit certificates, or2019 2025, whichever is earlier.
116.28EFFECTIVE DATE.This section is effective the day following final enactment.
116.29 Sec. 21. Minnesota Statutes 2012, section 290.091, subdivision 1, is amended to read:
116.30 Subdivision 1. Imposition of tax. In addition to all other taxes imposed by this
116.31chapter a tax is imposed on individuals, estates, and trusts equal to the excess (if any) of
117.1(a) an amount equal to6.4 6.75 percent of alternative minimum taxable income after
117.2subtracting the exemption amount, over
117.3(b) the regular tax for the taxable year.
117.4EFFECTIVE DATE.This section is effective for taxable years beginning after
117.5December 31, 2012.
117.6 Sec. 22. Minnesota Statutes 2012, section 290.091, subdivision 2, is amended to read:
117.7 Subd. 2. Definitions. For purposes of the tax imposed by this section, the following
117.8terms have the meanings given:
117.9 (a) "Alternative minimum taxable income" means the sum of the following for
117.10the taxable year:
117.11 (1) the taxpayer's federal alternative minimum taxable income as defined in section
117.1255(b)(2) of the Internal Revenue Code;
117.13 (2) the taxpayer's itemized deductions allowed in computing federal alternative
117.14minimum taxable income, but excluding:
117.15 (i) the charitable contribution deduction under section 170 of the Internal Revenue
117.16Code;
117.17 (ii) the medical expense deduction;
117.18 (iii) the casualty, theft, and disaster loss deduction; and
117.19 (iv) the impairment-related work expenses of a disabled person;
117.20 (3) for depletion allowances computed under section 613A(c) of the Internal
117.21Revenue Code, with respect to each property (as defined in section 614 of the Internal
117.22Revenue Code), to the extent not included in federal alternative minimum taxable income,
117.23the excess of the deduction for depletion allowable under section 611 of the Internal
117.24Revenue Code for the taxable year over the adjusted basis of the property at the end of the
117.25taxable year (determined without regard to the depletion deduction for the taxable year);
117.26 (4) to the extent not included in federal alternative minimum taxable income, the
117.27amount of the tax preference for intangible drilling cost under section 57(a)(2) of the
117.28Internal Revenue Code determined without regard to subparagraph (E);
117.29 (5) to the extent not included in federal alternative minimum taxable income, the
117.30amount of interest income as provided by section290.01, subdivision 19a , clause (1); and
117.31 (6) the amount of addition required by section290.01, subdivision 19a , clauses (7)
117.32to (9), (12), (13), and (16) to (18);
117.33 less the sum of the amounts determined under the following:
117.34 (1) interest income as defined in section290.01, subdivision 19b , clause (1);
118.1 (2) an overpayment of state income tax as provided by section290.01, subdivision
118.219b , clause (2), to the extent included in federal alternative minimum taxable income;
118.3 (3) the amount of investment interest paid or accrued within the taxable year on
118.4indebtedness to the extent that the amount does not exceed net investment income, as
118.5defined in section 163(d)(4) of the Internal Revenue Code. Interest does not include
118.6amounts deducted in computing federal adjusted gross income;
118.7 (4) amounts subtracted from federal taxable income as provided by section290.01,
118.8subdivision 19b , clauses (6), (8) to (14), and (16); and
118.9(5) the amount of the net operating loss allowed under section290.095, subdivision
118.1011 , paragraph (c).
118.11 In the case of an estate or trust, alternative minimum taxable income must be
118.12computed as provided in section 59(c) of the Internal Revenue Code.
118.13 (b) "Investment interest" means investment interest as defined in section 163(d)(3)
118.14of the Internal Revenue Code.
118.15 (c) "Net minimum tax" means the minimum tax imposed by this section.
118.16 (d) "Regular tax" means the tax that would be imposed under this chapter (without
118.17regard to this section and section 290.032), reduced by the sum of the nonrefundable
118.18credits allowed under this chapter.
118.19 (e) "Tentative minimum tax" equals6.4 6.75 percent of alternative minimum taxable
118.20income after subtracting the exemption amount determined under subdivision 3.
118.21EFFECTIVE DATE.This section is effective for taxable years beginning after
118.22December 31, 2012.
118.23 Sec. 23. Minnesota Statutes 2012, section 290.091, subdivision 6, is amended to read:
118.24 Subd. 6. Credit for prior years' liability. (a) A credit is allowed against the tax
118.25imposed by this chapter on individuals, trusts, and estates equal to the minimum tax
118.26credit for the taxable year. The minimum tax credit equals the adjusted net minimum
118.27tax for taxable years beginning after December 31, 1988, reduced by the minimum tax
118.28credits allowed in a prior taxable year. The credit may not exceed the excess (if any) for
118.29the taxable year of
118.30(1) the regular tax, over
118.31(2) the greater of (i) the tentative alternative minimum tax, or (ii) zero.
118.32(b) The adjusted net minimum tax for a taxable year equals the lesser of the net
118.33minimum tax or the excess (if any) of
118.34(1) the tentative minimum tax, over
118.35(2)6.4 6.75 percent of the sum of
119.1(i) adjusted gross income as defined in section 62 of the Internal Revenue Code,
119.2(ii) interest income as defined in section290.01, subdivision 19a , clause (1),
119.3(iii) interest on specified private activity bonds, as defined in section 57(a)(5) of the
119.4Internal Revenue Code, to the extent not included under clause (ii),
119.5(iv) depletion as defined in section 57(a)(1), determined without regard to the last
119.6sentence of paragraph (1), of the Internal Revenue Code, less
119.7(v) the deductions allowed in computing alternative minimum taxable income
119.8provided in subdivision 2, paragraph (a), clause (2) of the first series of clauses and clauses
119.9(1), (2), and (3) of the second series of clauses, and
119.10(vi) the exemption amount determined under subdivision 3.
119.11In the case of an individual who is not a Minnesota resident for the entire year,
119.12adjusted net minimum tax must be multiplied by the fraction defined in section290.06,
119.13subdivision 2c , paragraph (e). In the case of a trust or estate, adjusted net minimum tax
119.14must be multiplied by the fraction defined under subdivision 4, paragraph (b).
119.15EFFECTIVE DATE.This section is effective for taxable years beginning after
119.16December 31, 2012.
119.17 Sec. 24. Minnesota Statutes 2012, section 290.0921, subdivision 3, is amended to read:
119.18 Subd. 3. Alternative minimum taxable income. "Alternative minimum taxable
119.19income" is Minnesota net income as defined in section290.01, subdivision 19 , and
119.20includes the adjustments and tax preference items in sections 56, 57, 58, and 59(d), (e),
119.21(f), and (h) of the Internal Revenue Code. If a corporation files a separate company
119.22Minnesota tax return, the minimum tax must be computed on a separate company basis.
119.23If a corporation is part of a tax group filing a unitary return, the minimum tax must be
119.24computed on a unitary basis. The following adjustments must be made.
119.25(1) For purposes of the depreciation adjustments under section 56(a)(1) and
119.2656(g)(4)(A) of the Internal Revenue Code, the basis for depreciable property placed in
119.27service in a taxable year beginning before January 1, 1990, is the adjusted basis for federal
119.28income tax purposes, including any modification made in a taxable year under section
119.29290.01, subdivision 19e
, or Minnesota Statutes 1986, section
290.09, subdivision 7 ,
119.30paragraph (c).
119.31For taxable years beginning after December 31, 2000, the amount of any remaining
119.32modification made under section290.01, subdivision 19e , or Minnesota Statutes 1986,
119.33section290.09, subdivision 7 , paragraph (c), not previously deducted is a depreciation
119.34allowance in the first taxable year after December 31, 2000.
120.1(2) The portion of the depreciation deduction allowed for federal income tax
120.2purposes under section 168(k) of the Internal Revenue Code that is required as an addition
120.3under section290.01, subdivision 19c , clause (15) (12), is disallowed in determining
120.4alternative minimum taxable income.
120.5(3) The subtraction for depreciation allowed under section290.01, subdivision
120.619d , clause (17) (15), is allowed as a depreciation deduction in determining alternative
120.7minimum taxable income.
120.8(4) The alternative tax net operating loss deduction under sections 56(a)(4) and 56(d)
120.9of the Internal Revenue Code does not apply.
120.10(5) The special rule for certain dividends under section 56(g)(4)(C)(ii) of the Internal
120.11Revenue Code does not apply.
120.12(6) The special rule for dividends from section 936 companies under section
120.1356(g)(4)(C)(iii) does not apply.
120.14(7) (6) The tax preference for depletion under section 57(a)(1) of the Internal
120.15Revenue Code does not apply.
120.16(8) (7) The tax preference for intangible drilling costs under section 57(a)(2) of the
120.17Internal Revenue Code must be calculated without regard to subparagraph (E) and the
120.18subtraction under section290.01, subdivision 19d , clause (4).
120.19(9) (8) The tax preference for tax exempt interest under section 57(a)(5) of the
120.20Internal Revenue Code does not apply.
120.21(10) (9) The tax preference for charitable contributions of appreciated property
120.22under section 57(a)(6) of the Internal Revenue Code does not apply.
120.23(11) (10) For purposes of calculating the tax preference for accelerated depreciation
120.24or amortization on certain property placed in service before January 1, 1987, under section
120.2557(a)(7) of the Internal Revenue Code, the deduction allowable for the taxable year is the
120.26deduction allowed under section290.01, subdivision 19e .
120.27For taxable years beginning after December 31, 2000, the amount of any remaining
120.28modification made under section290.01, subdivision 19e , not previously deducted is a
120.29depreciation or amortization allowance in the first taxable year after December 31, 2004.
120.30(12) (11) For purposes of calculating the adjustment for adjusted current earnings
120.31in section 56(g) of the Internal Revenue Code, the term "alternative minimum taxable
120.32income" as it is used in section 56(g) of the Internal Revenue Code, means alternative
120.33minimum taxable income as defined in this subdivision, determined without regard to the
120.34adjustment for adjusted current earnings in section 56(g) of the Internal Revenue Code.
120.35(13) (12) For purposes of determining the amount of adjusted current earnings under
120.36section 56(g)(3) of the Internal Revenue Code, no adjustment shall be made under section
121.156(g)(4) of the Internal Revenue Code with respect to (i) the amount of foreign dividend
121.2gross-up subtracted as provided in section290.01, subdivision 19d , clause (1), or (ii) the
121.3amount of refunds of income, excise, or franchise taxes subtracted as provided in section
121.4290.01, subdivision 19d
, clause (9), or (iii) the amount of royalties, fees or other like
121.5income subtracted as provided in section
290.01, subdivision 19d, clause (10).
121.6(14) (13) Alternative minimum taxable income excludes the income from operating
121.7in a job opportunity building zone as provided under section469.317 .
121.8(15) (14) Alternative minimum taxable income excludes the income from operating
121.9in a biotechnology and health sciences industry zone as provided under section469.337 .
121.10Items of tax preference must not be reduced below zero as a result of the
121.11modifications in this subdivision.
121.12EFFECTIVE DATE.This section is effective for taxable years beginning after
121.13December 31, 2012.
121.14 Sec. 25. Minnesota Statutes 2012, section 290.0922, subdivision 1, is amended to read:
121.15 Subdivision 1. Imposition. (a) In addition to the tax imposed by this chapter without
121.16regard to this section, the franchise tax imposed on a corporation required to file under
121.17section289A.08, subdivision 3 , other than a corporation treated as an "S" corporation
121.18under section290.9725 for the taxable year includes a tax equal to the following amounts:
121.33 (b) A tax is imposed for each taxable year on a corporation required to file a return
121.34under section289A.12, subdivision 3 , that is treated as an "S" corporation under section
121.35290.9725
and on a partnership required to file a return under section
289A.12, subdivision
121.363 , other than a partnership that derives over 80 percent of its income from farming. The
121.37tax imposed under this paragraph is due on or before the due date of the return for the
122.1taxpayer due under section289A.18, subdivision 1 . The commissioner shall prescribe
122.2the return to be used for payment of this tax. The tax under this paragraph is equal to
122.3the following amounts:
122.20 (c) The commissioner shall adjust the dollar amounts of both the tax and the property,
122.21payrolls, and sales or receipts thresholds in paragraphs (a) and (b) by the percentage
122.22determined pursuant to the provisions of section 1(f) of the Internal Revenue Code, except
122.23that in section 1(f)(3)(B) the word "2012" must be substituted for the word "1992." For
122.242014, the commissioner shall determine the percentage change from the 12 months ending
122.25on August 31, 2012, to the 12 months ending on August 31, 2013, and in each subsequent
122.26year, from the 12 months ending on August 31, 2012, to the 12 months ending on August
122.2731 of the year preceding the taxable year. The determination of the commissioner pursuant
122.28to this subdivision is not a "rule" subject to the Administrative Procedure Act contained in
122.29chapter 14. The tax amounts as adjusted must be rounded to the nearest $10 amount and
122.30the threshold amounts must be adjusted to the nearest $10,000 amount. For tax amounts
122.31that end in $5, the amount is rounded up to the nearest $10 amount and for the threshold
122.32amounts that end in $5,000, the amount is rounded up to the nearest $10,000.
122.33EFFECTIVE DATE.This section is effective for taxable years beginning after
122.34December 31, 2012.
122.35 Sec. 26. Minnesota Statutes 2012, section 290.095, subdivision 2, is amended to read:
122.36 Subd. 2. Defined and limited. (a) The term "net operating loss" as used in this
122.37section shall mean a net operating loss as defined in section 172(c) of the Internal Revenue
122.38Code, with the modifications specified in subdivision 4. The deductions provided in
123.1section290.21 and the modification provided in section
290.01, subdivision 19d, clause
123.2(10), cannot be used in the determination of a net operating loss.
123.3(b) The term "net operating loss deduction" as used in this section means the
123.4aggregate of the net operating loss carryovers to the taxable year, computed in accordance
123.5with subdivision 3. The provisions of section 172(b) of the Internal Revenue Code relating
123.6to the carryback of net operating losses, do not apply.
123.7EFFECTIVE DATE.This section is effective for taxable years beginning after
123.8December 31, 2012.
123.9 Sec. 27. Minnesota Statutes 2012, section 290.10, subdivision 1, is amended to read:
123.10 Subdivision 1. Expenses, interest, and taxes.Except as provided in section
290.17,
123.11subdivision 4
, paragraph (i), In computing the net income of a taxpayer no deduction shall
123.12in any case be allowed for expenses, interest and taxes connected with or allocable against
123.13the production or receipt of all income not included in the measure of the tax imposed by
123.14this chapter, except that for corporations engaged in the business of mining or producing
123.15iron ore, the mining of which is subject to the occupation tax imposed by section298.01,
123.16subdivision 4 , this shall not prevent the deduction of expenses and other items to the extent
123.17that the expenses and other items are allowable under this chapter and are not deductible,
123.18capitalizable, retainable in basis, or taken into account by allowance or otherwise in
123.19computing the occupation tax and do not exceed the amounts taken for federal income tax
123.20purposes for that year. Occupation taxes imposed under chapter 298, royalty taxes imposed
123.21under chapter 299, or depletion expenses may not be deducted under this subdivision.
123.22 Sec. 28. Minnesota Statutes 2012, section 290.17, subdivision 4, is amended to read:
123.23 Subd. 4. Unitary business principle. (a) If a trade or business conducted wholly
123.24within this state or partly within and partly without this state is part of a unitary business,
123.25the entire income of the unitary business is subject to apportionment pursuant to section
123.26290.191
. Notwithstanding subdivision 2, paragraph (c), none of the income of a unitary
123.27business is considered to be derived from any particular source and none may be allocated
123.28to a particular place except as provided by the applicable apportionment formula. The
123.29provisions of this subdivision do not apply to business income subject to subdivision 5,
123.30income of an insurance company, or income of an investment company determined under
123.31section290.36 .
123.32(b) The term "unitary business" means business activities or operations which
123.33result in a flow of value between them. The term may be applied within a single legal
124.1entity or between multiple entities and without regard to whether each entity is a sole
124.2proprietorship, a corporation, a partnership or a trust.
124.3(c) Unity is presumed whenever there is unity of ownership, operation, and use,
124.4evidenced by centralized management or executive force, centralized purchasing,
124.5advertising, accounting, or other controlled interaction, but the absence of these
124.6centralized activities will not necessarily evidence a nonunitary business. Unity is also
124.7presumed when business activities or operations are of mutual benefit, dependent upon or
124.8contributory to one another, either individually or as a group.
124.9(d) Where a business operation conducted in Minnesota is owned by a business
124.10entity that carries on business activity outside the state different in kind from that
124.11conducted within this state, and the other business is conducted entirely outside the state, it
124.12is presumed that the two business operations are unitary in nature, interrelated, connected,
124.13and interdependent unless it can be shown to the contrary.
124.14(e) Unity of ownershipis not deemed to does not exist when a corporation is two or
124.15more corporations are involved unlessthat corporation is a member of a group of two or
124.16more business entities and more than 50 percent of the voting stock of each member of
124.17the group corporation is directly or indirectly owned by a common owner or by common
124.18owners, either corporate or noncorporate, or by one or more of the member corporations
124.19of the group. For this purpose, the term "voting stock" shall include membership interests
124.20of mutual insurance holding companies formed under section66A.40 .
124.21(f) The net income and apportionment factors under section290.191 or
290.20 of
124.22foreign corporations and other foreign entities which are part of a unitary business shall
124.23not be included in the net income or the apportionment factors of the unitary business;
124.24except that the income and apportionment factors of a foreign entity, other than an entity
124.25treated as a C corporation for federal income tax purposes, that are included in the federal
124.26taxable income, as defined in section 63 of the Internal Revenue Code as amended through
124.27the date named in section 290.01, subdivision 19, of a domestic corporation, domestic
124.28entity, or individual must be included in determining net income and the factors to be used
124.29in the apportionment of net income pursuant to section 290.191 or 290.20. A foreign
124.30corporation or other foreign entity which is not included on a combined report and which
124.31is required to file a return under this chapter shall file on a separate return basis.The net
124.32income and apportionment factors under section
290.191 or
290.20 of foreign operating
124.33corporations shall not be included in the net income or the apportionment factors of the
124.34unitary business except as provided in paragraph (g).
124.35(g) The adjusted net income of a foreign operating corporation shall be deemed to
124.36be paid as a dividend on the last day of its taxable year to each shareholder thereof, in
125.1proportion to each shareholder's ownership, with which such corporation is engaged in
125.2a unitary business. Such deemed dividend shall be treated as a dividend under section
125.3290.21, subdivision 4.
125.4Dividends actually paid by a foreign operating corporation to a corporate shareholder
125.5which is a member of the same unitary business as the foreign operating corporation shall
125.6be eliminated from the net income of the unitary business in preparing a combined report
125.7for the unitary business. The adjusted net income of a foreign operating corporation
125.8shall be its net income adjusted as follows:
125.9(1) any taxes paid or accrued to a foreign country, the commonwealth of Puerto
125.10Rico, or a United States possession or political subdivision of any of the foregoing shall
125.11be a deduction; and
125.12(2) the subtraction from federal taxable income for payments received from foreign
125.13corporations or foreign operating corporations under section
290.01, subdivision 19d,
125.14clause (10), shall not be allowed.
125.15If a foreign operating corporation incurs a net loss, neither income nor deduction from
125.16that corporation shall be included in determining the net income of the unitary business.
125.17(h) (g) For purposes of determining the net income of a unitary business and the
125.18factors to be used in the apportionment of net income pursuant to section290.191 or
125.19290.20
, there must be included only the income and apportionment factors of domestic
125.20corporations or other domestic entitiesother than foreign operating corporations that are
125.21determined to be part of the unitary business pursuant to this subdivision, notwithstanding
125.22that foreign corporations or other foreign entities might be included in the unitary
125.23business; except that the income and apportionment factors of a foreign entity, other than
125.24an entity treated as a C corporation for federal income tax purposes, that is included in the
125.25federal taxable income, as defined in section 63 of the Internal Revenue Code as amended
125.26through the date named in section 290.01, subdivision 19, of a domestic corporation,
125.27domestic entity, or individual must be included in determining net income and the factors
125.28to be used in the apportionment of net income pursuant to section 290.191 or 290.20.
125.29(i) Deductions for expenses, interest, or taxes otherwise allowable under this chapter
125.30that are connected with or allocable against dividends, deemed dividends described
125.31in paragraph (g), or royalties, fees, or other like income described in section
290.01,
125.32subdivision 19d
, clause (10), shall not be disallowed.
125.33(j) (h) Each corporation or other entity, except a sole proprietorship, that is part of
125.34a unitary business must file combined reports as the commissioner determines. On the
125.35reports, all intercompany transactions between entities included pursuant to paragraph(h)
125.36 (g) must be eliminated and the entire net income of the unitary business determined in
126.1accordance with this subdivision is apportioned among the entities by using each entity's
126.2Minnesota factors for apportionment purposes in the numerators of the apportionment
126.3formula and the total factors for apportionment purposes of all entities included pursuant
126.4to paragraph(h) (g) in the denominators of the apportionment formula. Except as
126.5otherwise provided by paragraph (f), all sales of the unitary business made within this
126.6state pursuant to section 290.191 or 290.20 must be included on the combined report of a
126.7corporation or other entity that is a member of the unitary business and is subject to the
126.8jurisdiction of this state to impose tax under this chapter.
126.9(k) (i) If a corporation has been divested from a unitary business and is included in a
126.10combined report for a fractional part of the common accounting period of the combined
126.11report:
126.12(1) its income includable in the combined report is its income incurred for that part
126.13of the year determined by proration or separate accounting; and
126.14(2) its sales, property, and payroll included in the apportionment formula must
126.15be prorated or accounted for separately.
126.16EFFECTIVE DATE.This section is effective for taxable years beginning after
126.17December 31, 2012.
126.18 Sec. 29. Minnesota Statutes 2012, section 290.191, subdivision 5, is amended to read:
126.19 Subd. 5. Determination of sales factor. For purposes of this section, the following
126.20rules apply in determining the sales factor.
126.21 (a) The sales factor includes all sales, gross earnings, or receipts received in the
126.22ordinary course of the business, except that the following types of income are not included
126.23in the sales factor:
126.24 (1) interest;
126.25 (2) dividends;
126.26 (3) sales of capital assets as defined in section 1221 of the Internal Revenue Code;
126.27 (4) sales of property used in the trade or business, except sales of leased property of
126.28a type which is regularly sold as well as leased; and
126.29 (5) sales of debt instruments as defined in section 1275(a)(1) of the Internal Revenue
126.30Code or sales of stock; and.
126.31(6) royalties, fees, or other like income of a type which qualify for a subtraction from
126.32federal taxable income under section
290.01, subdivision 19d, clause (10).
126.33 (b) Sales of tangible personal property are made within this state if the property is
126.34received by a purchaser at a point within this state, and the taxpayer is taxable in this state,
127.1regardless of the f.o.b. point, other conditions of the sale, or the ultimate destination
127.2of the property.
127.3 (c) Tangible personal property delivered to a common or contract carrier or foreign
127.4vessel for delivery to a purchaser in another state or nation is a sale in that state or nation,
127.5regardless of f.o.b. point or other conditions of the sale.
127.6 (d) Notwithstanding paragraphs (b) and (c), when intoxicating liquor, wine,
127.7fermented malt beverages, cigarettes, or tobacco products are sold to a purchaser who is
127.8licensed by a state or political subdivision to resell this property only within the state of
127.9ultimate destination, the sale is made in that state.
127.10 (e) Sales made by or through a corporation that is qualified as a domestic
127.11international sales corporation under section 992 of the Internal Revenue Code are not
127.12considered to have been made within this state.
127.13 (f) Sales, rents, royalties, and other income in connection with real property is
127.14attributed to the state in which the property is located.
127.15 (g) Receipts from the lease or rental of tangible personal property, including finance
127.16leases and true leases, must be attributed to this state if the property is located in this
127.17state and to other states if the property is not located in this state. Receipts from the
127.18lease or rental of moving property including, but not limited to, motor vehicles, rolling
127.19stock, aircraft, vessels, or mobile equipment are included in the numerator of the receipts
127.20factor to the extent that the property is used in this state. The extent of the use of moving
127.21property is determined as follows:
127.22 (1) A motor vehicle is used wholly in the state in which it is registered.
127.23 (2) The extent that rolling stock is used in this state is determined by multiplying
127.24the receipts from the lease or rental of the rolling stock by a fraction, the numerator of
127.25which is the miles traveled within this state by the leased or rented rolling stock and the
127.26denominator of which is the total miles traveled by the leased or rented rolling stock.
127.27 (3) The extent that an aircraft is used in this state is determined by multiplying the
127.28receipts from the lease or rental of the aircraft by a fraction, the numerator of which is
127.29the number of landings of the aircraft in this state and the denominator of which is the
127.30total number of landings of the aircraft.
127.31 (4) The extent that a vessel, mobile equipment, or other mobile property is used in
127.32the state is determined by multiplying the receipts from the lease or rental of the property
127.33by a fraction, the numerator of which is the number of days during the taxable year the
127.34property was in this state and the denominator of which is the total days in the taxable year.
127.35 (h) Royalties and other incomenot described in paragraph (a), clause (6), received
127.36for the use of or for the privilege of using intangible property, including patents,
128.1know-how, formulas, designs, processes, patterns, copyrights, trade names, service names,
128.2franchises, licenses, contracts, customer lists, or similar items, must be attributed to the
128.3state in which the property is used by the purchaser. If the property is used in more
128.4than one state, the royalties or other income must be apportioned to this state pro rata
128.5according to the portion of use in this state. If the portion of use in this state cannot be
128.6determined, the royalties or other income must be excluded from both the numerator
128.7and the denominator. Intangible property is used in this state if the purchaser uses the
128.8intangible property or the rights therein in the regular course of its business operations in
128.9this state, regardless of the location of the purchaser's customers.
128.10 (i) Sales of intangible property are made within the state in which the property is
128.11used by the purchaser. If the property is used in more than one state, the sales must be
128.12apportioned to this state pro rata according to the portion of use in this state. If the
128.13portion of use in this state cannot be determined, the sale must be excluded from both the
128.14numerator and the denominator of the sales factor. Intangible property is used in this
128.15state if the purchaser used the intangible property in the regular course of its business
128.16operations in this state.
128.17 (j) Receipts from the performance of services must be attributed to the state where
128.18the services are received. For the purposes of this section, receipts from the performance
128.19of services provided to a corporation, partnership, or trust may only be attributed to a state
128.20where it has a fixed place of doing business. If the state where the services are received is
128.21not readily determinable or is a state where the corporation, partnership, or trust receiving
128.22the service does not have a fixed place of doing business, the services shall be deemed
128.23to be received at the location of the office of the customer from which the services were
128.24ordered in the regular course of the customer's trade or business. If the ordering office
128.25cannot be determined, the services shall be deemed to be received at the office of the
128.26customer to which the services are billed.
128.27 (k) For the purposes of this subdivision and subdivision 6, paragraph (l), receipts
128.28from management, distribution, or administrative services performed by a corporation
128.29or trust for a fund of a corporation or trust regulated under United States Code, title 15,
128.30sections 80a-1 through 80a-64, must be attributed to the state where the shareholder of
128.31the fund resides. Under this paragraph, receipts for services attributed to shareholders are
128.32determined on the basis of the ratio of: (1) the average of the outstanding shares in the
128.33fund owned by shareholders residing within Minnesota at the beginning and end of each
128.34year; and (2) the average of the total number of outstanding shares in the fund at the
128.35beginning and end of each year. Residence of the shareholder, in the case of an individual,
128.36is determined by the mailing address furnished by the shareholder to the fund. Residence
129.1of the shareholder, when the shares are held by an insurance company as a depositor for
129.2the insurance company policyholders, is the mailing address of the policyholders. In
129.3the case of an insurance company holding the shares as a depositor for the insurance
129.4company policyholders, if the mailing address of the policyholders cannot be determined
129.5by the taxpayer, the receipts must be excluded from both the numerator and denominator.
129.6Residence of other shareholders is the mailing address of the shareholder.
129.7EFFECTIVE DATE.This section is effective for taxable years beginning after
129.8December 31, 2012.
129.9 Sec. 30. Minnesota Statutes 2012, section 290.21, subdivision 4, is amended to read:
129.10 Subd. 4. Dividends received from another corporation. (a)(1) Eighty percent
129.11of dividends received by a corporation during the taxable year from another corporation,
129.12in which the recipient owns 20 percent or more of the stock, by vote and value, not
129.13including stock described in section 1504(a)(4) of the Internal Revenue Code when the
129.14corporate stock with respect to which dividends are paid does not constitute the stock in
129.15trade of the taxpayer or would not be included in the inventory of the taxpayer, or does not
129.16constitute property held by the taxpayer primarily for sale to customers in the ordinary
129.17course of the taxpayer's trade or business, or when the trade or business of the taxpayer
129.18does not consist principally of the holding of the stocks and the collection of the income
129.19and gains therefrom; and
129.20 (2)(i) the remaining 20 percent of dividends if the dividends received are the stock in
129.21an affiliated company transferred in an overall plan of reorganization and the dividend
129.22is eliminated in consolidation under Treasury Department Regulation 1.1502-14(a), as
129.23amended through December 31, 1989;
129.24 (ii) the remaining 20 percent of dividends if the dividends are received from a
129.25corporation which is subject to tax under section290.36 and which is a member of an
129.26affiliated group of corporations as defined by the Internal Revenue Code and the dividend
129.27is eliminated in consolidation under Treasury Department Regulation 1.1502-14(a), as
129.28amended through December 31, 1989, or is deducted under an election under section
129.29243(b) of the Internal Revenue Code; or
129.30 (iii) the remaining 20 percent of the dividends if the dividends are received from a
129.31property and casualty insurer as defined under section60A.60, subdivision 8 , which is a
129.32member of an affiliated group of corporations as defined by the Internal Revenue Code
129.33and either: (A) the dividend is eliminated in consolidation under Treasury Regulation
129.341.1502-14(a), as amended through December 31, 1989; or (B) the dividend is deducted
129.35under an election under section 243(b) of the Internal Revenue Code.
130.1 (b) Seventy percent of dividends received by a corporation during the taxable year
130.2from another corporation in which the recipient owns less than 20 percent of the stock,
130.3by vote or value, not including stock described in section 1504(a)(4) of the Internal
130.4Revenue Code when the corporate stock with respect to which dividends are paid does not
130.5constitute the stock in trade of the taxpayer, or does not constitute property held by the
130.6taxpayer primarily for sale to customers in the ordinary course of the taxpayer's trade or
130.7business, or when the trade or business of the taxpayer does not consist principally of the
130.8holding of the stocks and the collection of income and gain therefrom.
130.9 (c) The dividend deduction provided in this subdivision shall be allowed only with
130.10respect to dividends that are included in a corporation's Minnesota taxable net income
130.11for the taxable year.
130.12 The dividend deduction provided in this subdivision does not apply to a dividend
130.13from a corporation which, for the taxable year of the corporation in which the distribution
130.14is made or for the next preceding taxable year of the corporation, is a corporation exempt
130.15from tax under section 501 of the Internal Revenue Code.
130.16The dividend deduction provided in this subdivision does not apply to a dividend
130.17received from a real estate investment trust as defined in section 856 of the Internal
130.18Revenue Code.
130.19 The dividend deduction provided in this subdivision applies to the amount of
130.20regulated investment company dividends only to the extent determined under section
130.21854(b) of the Internal Revenue Code.
130.22 The dividend deduction provided in this subdivision shall not be allowed with
130.23respect to any dividend for which a deduction is not allowed under the provisions of
130.24section 246(c) of the Internal Revenue Code.
130.25 (d) If dividends received by a corporation that does not have nexus with Minnesota
130.26under the provisions of Public Law 86-272 are included as income on the return of
130.27an affiliated corporation permitted or required to file a combined report under section
130.28290.17, subdivision 4
, or
290.34, subdivision 2 , then for purposes of this subdivision the
130.29determination as to whether the trade or business of the corporation consists principally
130.30of the holding of stocks and the collection of income and gains therefrom shall be made
130.31with reference to the trade or business of the affiliated corporation having a nexus with
130.32Minnesota.
130.33 (e) The deduction provided by this subdivision does not apply if the dividends are
130.34paid by a FSC as defined in section 922 of the Internal Revenue Code.
130.35 (f) If one or more of the members of the unitary group whose income is included on
130.36the combined report received a dividend, the deduction under this subdivision for each
131.1member of the unitary business required to file a return under this chapter is the product
131.2of: (1) 100 percent of the dividends received by members of the group; (2) the percentage
131.3allowed pursuant to paragraph (a) or (b); and (3) the percentage of the taxpayer's business
131.4income apportionable to this state for the taxable year under section290.191 or
290.20 .
131.5EFFECTIVE DATE.This section is effective for taxable years beginning after
131.6December 31, 2012.
131.7 Sec. 31. Minnesota Statutes 2012, section 298.01, subdivision 3b, is amended to read:
131.8 Subd. 3b. Deductions. (a) For purposes of determining taxable income under
131.9subdivision 3, the deductions from gross income include only those expenses necessary
131.10to convert raw ores to marketable quality. Such expenses include costs associated with
131.11refinement but do not include expenses such as transportation, stockpiling, marketing, or
131.12marine insurance that are incurred after marketable ores are produced, unless the expenses
131.13are included in gross income. The allowable deductions from a mine or plant that mines
131.14and produces more than one mineral, metal, or energy resource must be determined
131.15separately for the purposes of computing the deduction in section290.01 , subdivision 19c,
131.16clause(9) (8). These deductions may be combined on one occupation tax return to arrive
131.17at the deduction from gross income for all production.
131.18(b) The provisions of section290.01, subdivisions 19c, clauses (6) and (9), and 19d,
131.19clauses (7) and(11) (10), are not used to determine taxable income.
131.20 Sec. 32. Laws 2010, chapter 216, section 11, the effective date, is amended to read:
131.21EFFECTIVE DATE.This section is effective for taxable years beginning
131.22after December 31, 2009, for certified historic structures for which qualifiedcosts of
131.23rehabilitation are first paid under construction contracts entered into after May 1, 2010
131.24 rehabilitation expenditures are first paid by the developer or taxpayer after May 1, 2010,
131.25for rehabilitation that occurs after May 1, 2010, provided that the application under
131.26subdivision 3 is submitted before the project is placed in service.
131.27EFFECTIVE DATE.This section is effective the day following final enactment
131.28and applies retroactively for taxable years beginning after December 31, 2009, and for
131.29certified historic structures placed in service after May 1, 2010, but the office may not
131.30issue certificates allowed under the change to this section until July 1, 2013.
131.31 Sec. 33. ESTIMATED TAXES; EXCEPTIONS.
132.1No addition to tax, penalties, or interest may be made under Minnesota Statutes,
132.2section 289A.25, for any period before September 15, 2013, with respect to an
132.3underpayment of estimated tax, to the extent that the underpayment was created or
132.4increased by the increase in income tax rates under this article.
132.5EFFECTIVE DATE.This section is effective for taxable years beginning after
132.6December 31, 2012.
132.7 Sec. 34. REPEALER.
132.8Minnesota Statutes 2012, sections 290.01, subdivision 6b; 290.06, subdivision 22a;
132.9and 290.0921, subdivision 7, are repealed.
132.10EFFECTIVE DATE.This section is effective for taxable years beginning after
132.11December 31, 2012.
132.14 Section 1. Minnesota Statutes 2012, section 270B.01, subdivision 8, is amended to read:
132.15 Subd. 8. Minnesota tax laws. For purposes of this chapter only, unless expressly
132.16stated otherwise, "Minnesota tax laws" means:
132.17 (1) the taxes, refunds, and fees administered by or paid to the commissioner under
132.18chapters 115B, 289A (except taxes imposed under sections298.01 ,
298.015 , and
298.24 ),
132.19290, 290A, 291, 292, 295, 297A, 297B, and 297H, or any similar Indian tribal tax
132.20administered by the commissioner pursuant to any tax agreement between the state and
132.21the Indian tribal government, and includes any laws for the assessment, collection, and
132.22enforcement of those taxes, refunds, and fees; and
132.23 (2) section273.1315 .
132.24EFFECTIVE DATE.This section is effective for gifts made after December 31,
132.252012.
132.26 Sec. 2. Minnesota Statutes 2012, section 270B.03, subdivision 1, is amended to read:
132.27 Subdivision 1. Who may inspect. Returns and return information must, on request,
132.28be made open to inspection by or disclosure to the data subject. The request must be made
132.29in writing or in accordance with written procedures of the chief disclosure officer of the
132.30department that have been approved by the commissioner to establish the identification
132.31of the person making the request as the data subject. For purposes of this chapter, the
132.32following are the data subject:
133.1(1) in the case of an individual return, that individual;
133.2(2) in the case of an income tax return filed jointly, either of the individuals with
133.3respect to whom the return is filed;
133.4(3) in the case of a return filed by a business entity, an officer of a corporation,
133.5a shareholder owning more than one percent of the stock, or any shareholder of an S
133.6corporation; a general partner in a partnership; the owner of a sole proprietorship; a
133.7member or manager of a limited liability company; a participant in a joint venture; the
133.8individual who signed the return on behalf of the business entity; or an employee who is
133.9responsible for handling the tax matters of the business entity, such as the tax manager,
133.10bookkeeper, or managing agent;
133.11(4) in the case of an estate return:
133.12(i) the personal representative or trustee of the estate; and
133.13(ii) any beneficiary of the estate as shown on the federal estate tax return;
133.14(5) in the case of a trust return:
133.15(i) the trustee or trustees, jointly or separately; and
133.16(ii) any beneficiary of the trust as shown in the trust instrument;
133.17(6) if liability has been assessed to a transferee under section270C.58, subdivision
133.181 , the transferee is the data subject with regard to the returns and return information
133.19relating to the assessed liability;
133.20(7) in the case of an Indian tribal government or an Indian tribal government-owned
133.21entity,
133.22(i) the chair of the tribal government, or
133.23(ii) any person authorized by the tribal government;and
133.24(8) in the case of a successor as defined in section270C.57, subdivision 1 , paragraph
133.25(b), the successor is the data subject and information may be disclosed as provided by
133.26section270C.57, subdivision 4 .; and
133.27(9) in the case of a gift return, the donor.
133.28EFFECTIVE DATE.This section is effective the day following final enactment.
133.29 Sec. 3. Minnesota Statutes 2012, section 289A.10, subdivision 1, is amended to read:
133.30 Subdivision 1. Return required. In the case of a decedent who has an interest in
133.31property with a situs in Minnesota, the personal representative must submit a Minnesota
133.32estate tax return to the commissioner, on a form prescribed by the commissioner, if:
133.33(1) a federal estate tax return is required to be filed; or
133.34(2) the sum of the federal gross estate and federal adjusted taxable gifts made within
133.35three years of the date of the decedent's death exceeds $1,000,000.
134.1The return must contain a computation of the Minnesota estate tax due. The return
134.2must be signed by the personal representative.
134.3EFFECTIVE DATE.This section is effective for estates of decedents dying after
134.4December 31, 2012.
134.5 Sec. 4. Minnesota Statutes 2012, section 291.005, subdivision 1, is amended to read:
134.6 Subdivision 1. Scope. Unless the context otherwise clearly requires, the following
134.7terms used in this chapter shall have the following meanings:
134.8 (1) "Commissioner" means the commissioner of revenue or any person to whom the
134.9commissioner has delegated functions under this chapter.
134.10 (2) "Federal gross estate" means the gross estate of a decedent as required to be valued
134.11and otherwise determined for federal estate tax purposes under the Internal Revenue Code.
134.12 (3) "Internal Revenue Code" means the United States Internal Revenue Code of
134.131986, as amended throughApril 14, 2011 January 3, 2013, but without regard to the
134.14provisions ofsections 501 and 901 of Public Law 107-16, as amended by Public Law
134.15111-312, and section 301(c) of Public Law 111-312 section 2011, paragraph (f), of the
134.16Internal Revenue Code.
134.17 (4) "Minnesota adjusted taxable estate" means federal adjusted taxable estate as
134.18defined by section 2011(b)(3) of the Internal Revenue Code, plus
134.19(i) the amount of deduction for state death taxes allowed under section 2058 of the
134.20Internal Revenue Code;
134.21(ii) the amount of taxable gifts, as defined in section 292.16, and made by the
134.22decedent within three years of the decedent's date of death; less
134.23(ii) (iii)(A) the value of qualified small business property under section
291.03,
134.24subdivision 9 , and the value of qualified farm property under section
291.03, subdivision
134.2510 , or (B) $4,000,000, whichever is less.
134.26 (5) "Minnesota gross estate" means the federal gross estate of a decedent after (a)
134.27excluding therefrom any property included therein which has its situs outside Minnesota,
134.28and (b) including therein any property omitted from the federal gross estate which is
134.29includable therein, has its situs in Minnesota, and was not disclosed to federal taxing
134.30authorities.
134.31 (6) "Nonresident decedent" means an individual whose domicile at the time of
134.32death was not in Minnesota.
134.33 (7) "Personal representative" means the executor, administrator or other person
134.34appointed by the court to administer and dispose of the property of the decedent. If there
134.35is no executor, administrator or other person appointed, qualified, and acting within this
135.1state, then any person in actual or constructive possession of any property having a situs in
135.2this state which is included in the federal gross estate of the decedent shall be deemed
135.3to be a personal representative to the extent of the property and the Minnesota estate tax
135.4due with respect to the property.
135.5 (8) "Resident decedent" means an individual whose domicile at the time of death
135.6was in Minnesota.
135.7 (9) "Situs of property" means, with respect to:
135.8 (i) real property, the state or country in which it is located;with respect to
135.9 (ii) tangible personal property, the state or country in which it was normally kept or
135.10located at the time of the decedent's death or for a gift of tangible personal property within
135.11three years of death, the state or country in which it was normally kept or located when
135.12the gift was executed; andwith respect to
135.13 (iii) intangible personal property, the state or country in which the decedent was
135.14domiciled at death or for a gift of intangible personal property within three years of death,
135.15the state or country in which the decedent was domiciled when the gift was executed.
135.16 For a nonresident decedent with an ownership interest in a pass-through entity
135.17with assets that include real or tangible personal property, situs of the real or tangible
135.18personal property is determined as if the pass-through entity does not exist and the real
135.19or tangible personal property is personally owned by the decedent. If the pass-through
135.20entity is owned by a person or persons in addition to the decedent, ownership of the
135.21property is attributed to the decedent in proportion to the decedent's capital ownership
135.22share of the pass-through entity.
135.23(10) "Pass-through entity" includes the following:
135.24(i) an entity electing S corporation status under section 1362 of the Internal Revenue
135.25Code;
135.26(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;
135.27(iii) a single-member limited liability company or similar entity, regardless of
135.28whether it is taxed as an association or is disregarded for federal income tax purposes
135.29under Code of Federal Regulations, title 26, section 301.7701-3; or
135.30(iv) a trust to the extent the property is includible in the decedent's federal gross estate.
135.31EFFECTIVE DATE.This section is effective for decedents dying after December
135.3231, 2012.
135.33 Sec. 5. Minnesota Statutes 2012, section 291.03, subdivision 1, is amended to read:
135.34 Subdivision 1. Tax amount. (a) The tax imposed shall be an amount equal to the
135.35proportion of the maximum credit for state death taxes computed under section 2011 of
136.1the Internal Revenue Code, but using Minnesota adjusted taxable estate instead of federal
136.2adjusted taxable estate, as the Minnesota gross estate bears to the value of the federal
136.3gross estate. The tax is reduced by:
136.4 (1) the gift tax paid by the decedent under section 292.17 on gifts included in the
136.5Minnesota adjusted taxable estate and not subtracted as qualified farm or small business
136.6property; and
136.7 (2) any credit allowed under subdivision 1c.
136.8 (b) The tax determined under this subdivision must not be greater than the sum of
136.9the following amounts multiplied by a fraction, the numerator of which is the Minnesota
136.10gross estate and the denominator of which is the federal gross estate:
136.11 (1) the rates and brackets under section 2001(c) of the Internal Revenue Code
136.12multiplied by the sum of:
136.13 (i) the taxable estate, as defined under section 2051 of the Internal Revenue Code; plus
136.14 (ii) adjusted taxable gifts, as defined in section 2001(b) of the Internal Revenue
136.15Code; less
136.16(iii) the lesser of (A) the sum of the value of qualified small business property
136.17under subdivision 9, and the value of qualified farm property under subdivision 10, or
136.18(B) $4,000,000; less
136.19 (2) the amount of tax allowed under section 2001(b)(2) of the Internal Revenue
136.20Code; and less
136.21 (3) the federal credit allowed under section 2010 of the Internal Revenue Code.
136.22 (c) For purposes of this subdivision, "Internal Revenue Code" means the Internal
136.23Revenue Code of 1986, as amended through December 31, 2000.
136.24EFFECTIVE DATE.This section is effective for decedents dying after December
136.2531, 2012.
136.26 Sec. 6. Minnesota Statutes 2012, section 291.03, is amended by adding a subdivision
136.27to read:
136.28 Subd. 1c. Nonresident decedent tax credit. (a) The estate of a nonresident
136.29decedent that is subject to tax under this chapter on the value of Minnesota situs property
136.30held in a pass-through entity is allowed a credit against the tax due under this section
136.31equal to the lesser of:
136.32(1) the amount of estate or inheritance tax paid to another state that is attributable to
136.33the Minnesota situs property held in the pass-through entity; or
136.34(2) the amount of tax paid under this section attributable to the Minnesota situs
136.35property held in the pass-through entity.
137.1(b) The amount of tax attributable to the Minnesota situs property held in the
137.2pass-through entity must be determined by the increase in the estate or inheritance tax that
137.3results from including the market value of the property in the estate or treating the value
137.4as a taxable inheritance to the recipient of the property.
137.5EFFECTIVE DATE.This section is effective for decedents dying after December
137.631, 2012.
137.7 Sec. 7. Minnesota Statutes 2012, section 291.03, subdivision 8, is amended to read:
137.8 Subd. 8. Definitions. (a) For purposes of this section, the following terms have the
137.9meanings given in this subdivision.
137.10(b) "Family member" means a family member as defined in section 2032A(e)(2) of
137.11the Internal Revenue Code, or a trust whose present beneficiaries are all family members
137.12as defined in section 2032A(e)(2) of the Internal Revenue Code.
137.13(c) "Qualified heir" means a family member who acquired qualified propertyfrom
137.14 upon the death of the decedent and satisfies the requirement under subdivision 9, clause
137.15(6) (7), or subdivision 10, clause (4) (5), for the property.
137.16(d) "Qualified property" means qualified small business property under subdivision
137.179 and qualified farm property under subdivision 10.
137.18EFFECTIVE DATE.This section is effective retroactively for estates of decedents
137.19dying after June 30, 2011.
137.20 Sec. 8. Minnesota Statutes 2012, section 291.03, subdivision 9, is amended to read:
137.21 Subd. 9. Qualified small business property. Property satisfying all of the following
137.22requirements is qualified small business property:
137.23(1) The value of the property was included in the federal adjusted taxable estate.
137.24(2) The property consists of the assets of a trade or business or shares of stock or
137.25other ownership interests in a corporation or other entity engaged in a trade or business.
137.26The decedent or the decedent's spouse must have materially participated in the trade or
137.27business within the meaning of section 469 of the Internal Revenue Code during the
137.28taxable year that ended before the date of the decedent's death. Shares of stock in a
137.29corporation or an ownership interest in another type of entity do not qualify under this
137.30subdivision if the shares or ownership interests are traded on a public stock exchange at
137.31any time during the three-year period ending on the decedent's date of death. For purposes
137.32of this subdivision, an ownership interest includes the interest the decedent is deemed to
137.33own under sections 2036, 2037, and 2038 of the Internal Revenue Code.
138.1(3) During the taxable year that ended before the decedent's death, the trade or
138.2business must not have been a passive activity within the meaning of section 469(c) of the
138.3Internal Revenue Code, and the decedent or the decedent's spouse must have materially
138.4participated in the trade or business within the meaning of section 469(h) of the Internal
138.5Revenue Code, excluding section 469(h)(3) of the Internal Revenue Code and any other
138.6provision provided by United States Treasury Department regulation that substitutes
138.7material participation in prior taxable years for material participation in the taxable year
138.8that ended before the decedent's death.
138.9(4) The gross annual sales of the trade or business were $10,000,000 or less for the
138.10last taxable year that ended before the date of the death of the decedent.
138.11(4) (5) The property does not consist of cash or, cash equivalents, publicly traded
138.12securities, or assets not used in the operation of the trade or business. For property
138.13consisting of shares of stock or other ownership interests in an entity, theamount value of
138.14cashor, cash equivalents, publicly traded securities, or assets not used in the operation of
138.15the trade or business held by the corporation or other entity must be deducted from the
138.16value of the property qualifying under this subdivision in proportion to the decedent's
138.17share of ownership of the entity on the date of death.
138.18(5) (6) The decedent continuously owned the property, including property the
138.19decedent is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue
138.20Code, for the three-year period ending on the date of death of the decedent. In the case of
138.21a sole proprietor, if the property replaced similar property within the three-year period,
138.22the replacement property will be treated as having been owned for the three-year period
138.23ending on the date of death of the decedent.
138.24(6) A family member continuously uses the property in the operation of the trade or
138.25business for three years following the date of death of the decedent.
138.26(7) For three years following the date of death of the decedent, the trade or business
138.27is not a passive activity within the meaning of section 469(c) of the Internal Revenue Code,
138.28and a family member materially participates in the operation of the trade or business within
138.29the meaning of section 469(h) of the Internal Revenue Code, excluding section 469(h)(3)
138.30of the Internal Revenue Code and any other provision provided by United States Treasury
138.31Department regulation that substitutes material participation in prior taxable years for
138.32material participation in the three years following the date of death of the decedent.
138.33(8) The estate and the qualified heir elect to treat the property as qualified small
138.34business property and agree, in the form prescribed by the commissioner, to pay the
138.35recapture tax under subdivision 11, if applicable.
139.1EFFECTIVE DATE.This section is effective retroactively for estates of decedents
139.2dying after June 30, 2011.
139.3 Sec. 9. Minnesota Statutes 2012, section 291.03, subdivision 10, is amended to read:
139.4 Subd. 10. Qualified farm property. Property satisfying all of the following
139.5requirements is qualified farm property:
139.6(1) The value of the property was included in the federal adjusted taxable estate.
139.7(2) The property consists ofa farm meeting the requirements of agricultural land and
139.8is owned by a person or entity that is either not subject to or is in compliance with section
139.9500.24
, and was classified for property tax purposes as the homestead of the decedent
139.10or the decedent's spouse or both under section
273.124, and as class 2a property under
139.11section
273.13, subdivision 23
139.12(3) For property taxes payable in the taxable year of the decedent's death, the
139.13property is classified as class 2a property under section 273.13, subdivision 23, and is
139.14classified as agricultural homestead, agricultural relative homestead, or special agricultural
139.15homestead under section 273.124.
139.16(4) The decedent continuously owned the property, including property the decedent
139.17is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code, for
139.18the three-year period ending on the date of death of the decedent either by ownership of
139.19the agricultural land or pursuant to holding an interest in an entity that is not subject to
139.20or is in compliance with section 500.24.
139.21(4) A family member continuously uses the property in the operation of the trade or
139.22business (5) The property is classified for property tax purposes as class 2a property under
139.23section 273.13, subdivision 23, for three years following the date of death of the decedent.
139.24(5) (6) The estate and the qualified heir elect to treat the property as qualified farm
139.25property and agree, in a form prescribed by the commissioner, to pay the recapture tax
139.26under subdivision 11, if applicable.
139.27EFFECTIVE DATE.This section is effective retroactively for estates of decedents
139.28dying after June 30, 2011.
139.29 Sec. 10. Minnesota Statutes 2012, section 291.03, subdivision 11, is amended to read:
139.30 Subd. 11. Recapture tax. (a) If, within three years after the decedent's death and
139.31before the death of the qualified heir, the qualified heir disposes of any interest in the
139.32qualified property, other than by a disposition to a family member, or a family member
139.33ceases touse the qualified property which was acquired or passed from the decedent
139.34 satisfy the requirement under subdivision 9, clause (7); or 10, clause (5), an additional
140.1estate tax is imposed on the property. In the case of a sole proprietor, if the qualified heir
140.2replaces qualified small business property excluded under subdivision 9 with similar
140.3property, then the qualified heir will not be treated as having disposed of an interest in the
140.4qualified property.
140.5(b) The amount of the additional tax equals the amount of the exclusion claimed by
140.6the estate under subdivision 8, paragraph (d), multiplied by 16 percent.
140.7(c) The additional tax under this subdivision is due on the day which is six months
140.8after the date of the disposition or cessation in paragraph (a).
140.9EFFECTIVE DATE.This section is effective retroactively for estates of decedents
140.10dying after June 30, 2011.
140.11 Sec. 11. [292.16] DEFINITIONS.
140.12(a) For purposes of this chapter, the following definitions apply.
140.13(b) The definitions of terms defined in section 291.005 apply.
140.14(c) "Resident" has the meaning given in section 290.01, subdivision 7, paragraph (a).
140.15(d) "Taxable gifts" means:
140.16(1) the transfers by gift which are included in taxable gifts for federal gift tax
140.17purposes under the following sections of the Internal Revenue Code:
140.18(i) section 2503;
140.19(ii) sections 2511 to 2514; and
140.20(iii) sections 2516 to 2519; less
140.21(2) the deductions allowed in sections 2522 to 2524 of the Internal Revenue Code.
140.22EFFECTIVE DATE.This section is effective for taxable gifts made after June
140.2330, 2013.
140.24 Sec. 12. [292.17] GIFT TAX.
140.25 Subdivision 1. Imposition. (a) A tax is imposed on the transfer of property by gift
140.26by any individual resident or nonresident in an amount equal to ten percent of the amount
140.27of the taxable gift.
140.28(b) The donor is liable for payment of the tax. If the gift tax is not paid when due,
140.29the donee of any gift is personally liable for the tax to the extent of the value of the gift.
140.30 Subd. 2. Lifetime credit. A credit is allowed against the tax imposed under this
140.31section equal to $100,000. This credit applies to the cumulative amount of taxable gifts
140.32made by the donor during the donor's lifetime.
140.33 Subd. 3. Out-of-state gifts. Taxable gifts exclude the transfer of:
141.1(1) real property located outside of this state;
141.2(2) tangible personal property that was normally kept at a location outside of the
141.3state on the date the gift was executed; and
141.4(3) intangible personal property made by an individual who is not a resident at
141.5the time the gift was executed.
141.6EFFECTIVE DATE.This section is effective for taxable gifts made after June
141.730, 2013.
141.8 Sec. 13. [292.18] RETURNS.
141.9(a) Any individual who makes a taxable gift during the taxable year shall file a gift
141.10tax return in the form and manner prescribed by the commissioner.
141.11(b) If the donor dies before filing the return, the executor of the donor's will or
141.12the administrator of the donor's estate shall file the return. If the donor becomes legally
141.13incompetent before filing the return, the guardian or conservator shall file the return.
141.14(c) The return must include:
141.15(1) each gift made during the calendar year which is to be included in computing the
141.16taxable gifts;
141.17(2) the deductions claimed and allowable under section 292.16, paragraph (d),
141.18clause (2);
141.19(3) a description of the gift, and the donee's name, address, and Social Security
141.20number;
141.21(4) the fair market value of gifts not made in money; and
141.22(5) any other information the commissioner requires to administer the gift tax.
141.23EFFECTIVE DATE.This section is effective for taxable gifts made after June
141.2430, 2013.
141.25 Sec. 14. [292.19] FILING REQUIREMENTS.
141.26Gift tax returns must be filed by the April 15 following the close of the calendar
141.27year, except if a gift is made during the calendar year in which the donor dies, the return
141.28for the donor must be filed by the last date, including extensions, for filing the gift tax
141.29return for federal gift tax purposes for the donor.
141.30EFFECTIVE DATE.This section is effective for taxable gifts made after June
141.3130, 2013.
141.32 Sec. 15. [292.20] APPRAISAL OF PROPERTY; DECLARATION BY DONOR.
142.1The commissioner may require the donor or the donee to show the property subject to
142.2the tax under section 292.17 to the commissioner upon demand and may employ a suitable
142.3person to appraise the property. The donor shall submit a declaration, in a form prescribed
142.4by the commissioner and including any certification required by the commissioner, that the
142.5property shown by the donor on the gift tax return includes all of the property transferred by
142.6gift for the calendar year and not deductible under section 292.16, paragraph (d), clause (2).
142.7EFFECTIVE DATE.This section is effective for taxable gifts made after June
142.830, 2013.
142.9 Sec. 16. [292.21] ADMINISTRATIVE PROVISIONS.
142.10 Subdivision 1. Payment of tax; penalty for late payment. The tax imposed under
142.11section 292.17 is due and payable to the commissioner by the April 15 following the close
142.12of the calendar year during which the gift was made. The return required under section
142.13292.19 must be included with the payment. If a taxable gift is made during the calendar
142.14year in which the donor dies, the due date is the last date, including extensions, for filing
142.15the gift tax return for federal gift tax purposes for the donor. If any person fails to pay the
142.16tax due within the time specified under this section, a penalty applies equal to ten percent
142.17of the amount due and unpaid or $100, whichever is greater. The unpaid tax and penalty
142.18bear interest at the rate under section 270C.40 from the due date of the return.
142.19 Subd. 2. Extensions. The commissioner may, for good cause, extend the time for
142.20filing a gift tax return, if a written request is filed with a tentative return accompanied by a
142.21payment of the tax, which is estimated in the tentative return, on or before the last day for
142.22filing the return. Any person to whom an extension is granted must pay, in addition to the
142.23tax, interest at the rate under section 270C.40 from the date on which the tax would have
142.24been due without the extension.
142.25 Subd. 3. Changes in federal gift tax. If the amount of a taxpayer's taxable gifts
142.26for federal gift tax purposes, as reported on the taxpayer's federal gift tax return for any
142.27calendar year, is changed or corrected by the Internal Revenue Service or other officer
142.28of the United States or other competent authority, the taxpayer shall report the change or
142.29correction in federal taxable gifts within 180 days after the final determination of the change
142.30or correction, and concede the accuracy of the determination or provide a letter detailing
142.31how the federal determination is incorrect or does not change the Minnesota gift tax. Any
142.32taxpayer filing an amended federal gift tax return shall also file within 180 days an amended
142.33return under this chapter and shall include any information the commissioner requires. The
142.34time for filing the report or amended return may be extended by the commissioner upon due
142.35cause shown. Notwithstanding any limitation of time in this chapter, if, upon examination,
143.1the commissioner finds that the taxpayer is liable for the payment of an additional tax, the
143.2commissioner shall, within a reasonable time from the receipt of the report or amended
143.3return, notify the taxpayer of the amount of additional tax, together with interest computed
143.4at the rate under section 270C.40 from the date when the original tax was due and payable.
143.5Within 30 days of the mailing of the notice, the taxpayer shall pay the commissioner the
143.6amount of the additional tax and interest. If, upon examination of the report or amended
143.7return and related information, the commissioner finds that the taxpayer has overpaid the
143.8tax due the state, the commissioner shall refund the overpayment to the taxpayer.
143.9 Subd. 4. Application of federal rules. In administering the tax under this chapter,
143.10the commissioner shall apply the provisions of sections 2701 to 2704 of the Internal
143.11Revenue Code. The words "secretary or his delegate," as used in those sections of the
143.12Internal Revenue Code, mean the commissioner.
143.13EFFECTIVE DATE.This section is effective for taxable gifts made after June
143.1430, 2013.
143.17 Section 1. [116J.3738] QUALIFIED EXPANSIONS OF GREATER MINNESOTA
143.18BUSINESSES.
143.19 Subdivision 1. Definitions. (a) For purposes of this section, the following terms
143.20have the meanings given unless the context clearly indicates otherwise.
143.21(b) "Agricultural processing facility" means one or more facilities or operations
143.22that transform, package, sort, or grade livestock or livestock products, agricultural
143.23commodities, or plants or plant products into goods that are used for intermediate or final
143.24consumption including goods for nonfood use, and surrounding property.
143.25(c) "Business" means an individual, corporation, partnership, limited liability
143.26company, association, or any other entity engaged in operating a trade or business located
143.27in greater Minnesota.
143.28(d) "City" means a statutory or home rule charter city.
143.29(e) "Greater Minnesota" means the area of the state that excludes the metropolitan
143.30area, as defined in section 473.121, subdivision 2.
143.31(f) "Qualified business" means a business that satisfies the requirements of subdivision
143.322, has been certified under subdivision 3, and has not been terminated under subdivision 5.
143.33 Subd. 2. Qualified business. (a) A business is a qualified business if it satisfies the
143.34requirement of this paragraph and is not disqualified under the provisions of paragraph
143.35(b). To qualify, the business must:
144.1(1) have operated its trade or business in a city or cities in greater Minnesota for at
144.2least one year before applying under subdivision 3;
144.3(2) pay or agree to pay in the future each employee compensation, including benefits
144.4not mandated by law, that on an annualized basis equal at least 120 percent of the federal
144.5poverty level for a family of four;
144.6(3) plan and agree to expand its employment in one or more cities in greater Minnesota
144.7by the minimum number of employees required under subdivision 3, paragraph (c); and
144.8(4) received certification from the commissioner under subdivision 3 that it is a
144.9qualified business.
144.10(b) A business is not a qualified business if it is either:
144.11(1) primarily engaged in making retail sales to purchasers who are physically present
144.12at the business's location or locations in greater Minnesota; or
144.13(2) a public utility, as defined in section 336B.01.
144.14(c) The requirements in paragraph (a) that the business' operations and expansion be
144.15located in a city do not apply to an agricultural processing facility.
144.16 Subd. 3. Certification of qualified business. (a) A business may apply to the
144.17commissioner for certification as a qualified business under this section. The commissioner
144.18shall specify the form of the application, the manner and times for applying, and the
144.19information required to be included in the application. The commissioner may impose an
144.20application fee in an amount sufficient to defray the commissioner's cost of processing
144.21certifications. A business must file a copy of its application with the chief clerical officer
144.22of the city at the same time it applies to the commissioner. For an agricultural processing
144.23facility located outside the boundaries of a city, the business must file a copy of the
144.24application with the county auditor.
144.25(b) The commissioner shall certify each business as a qualified business that:
144.26(1) satisfies the requirements of subdivision 2;
144.27(2) the commissioner determines would not expand its operations in greater
144.28Minnesota without the tax incentives available under subdivision 4; and
144.29(3) enters a business subsidy agreement with the commissioner that pledges to
144.30satisfy the minimum expansion requirements of paragraph (c) within three years or less
144.31following execution of the agreement.
144.32The commissioner must act on an application within 60 days after its filing. Failure
144.33by the commissioner to take action within the 60-day period is deemed approval of the
144.34application.
144.35(c) The following minimum expansion requirements apply, based on the number of
144.36employees of the business at locations in greater Minnesota:
145.1(1) a business that employees 50 or fewer full-time equivalent employees in greater
145.2Minnesota when the agreement is executed must increase its employment by five or more
145.3full-time equivalent employees;
145.4(2) a business that employees more than 50 but fewer than 200 full-time equivalent
145.5employees in greater Minnesota when the agreement is executed must increase the number
145.6of its full-time equivalent employees in greater Minnesota by at least ten percent; or
145.7(3) a business that employees 200 or more full-time equivalent employees in greater
145.8Minnesota when the agreement is executed must increase its employment by at least 21
145.9full-time equivalent employees.
145.10(d) The city, or a county for an agricultural processing facility located outside the
145.11boundaries of a city, in which the business proposes to expand its operations may file
145.12comments supporting or opposing the application with the commissioner. The comments
145.13must be filed within 30 days after receipt by the city of the application and may include a
145.14notice of any contribution the city or county intends to make to encourage or support the
145.15business expansion, such as the use of tax increment financing, property tax abatement,
145.16additional city or county services, or other financial assistance.
145.17(e) Certification of a qualified business is effective for the 12-year period beginning
145.18on the first day of the calendar month immediately following execution of the business
145.19subsidy agreement.
145.20 Subd. 4. Available tax incentives. A qualified business is entitled to a sales tax
145.21exemption, as provided in section 297A.68, subdivision 49, for purchases made during the
145.22period the business was certified as a qualified business under this section.
145.23 Subd. 5. Termination of status as a qualified business. (a) The commissioner shall
145.24put in place a system for monitoring and ensuring that each certified business meets within
145.25three years or less the minimum expansion requirement in its business subsidy agreement
145.26and continues to satisfy those requirements for the rest of the duration of the certification
145.27under subdivision 3. This system must include regular reporting by the business to the
145.28commissioner of its baseline and current employment levels and any other information
145.29the commissioner determines may be useful to ensure compliance and for legislative
145.30evaluation of the effectiveness of the tax incentives.
145.31(b) A business ceases to be a qualified business and to qualify for the sales tax
145.32exemption under section 297A.68, subdivision 49, under this subdivision upon the earlier
145.33of the following dates:
145.34(1) the end of the duration of its designation under subdivision 3, paragraph (e),
145.35effective as provided under this subdivision or other provision of law for the tax incentive;
145.36or
146.1(2) the date the commissioner finds that the business has breached its business
146.2subsidy agreement and failed to satisfy the minimum expansion required by subdivision 3
146.3and its agreement.
146.4(c) A business may contest the commissioner's finding that it breached its business
146.5subsidy agreement under paragraph (b), clause (2), under the contested case procedures in
146.6the Administrative Procedure Act, chapter 14.
146.7(d) The commissioner, after consulting with the commissioner of revenue, may
146.8waive a breach of the business subsidy agreement and permit continued receipt of tax
146.9incentives, if the commissioner determines that termination of the tax incentives is not in
146.10the best interest of the state or the local government units and the business' breach of the
146.11agreement is a result of circumstances beyond its control including, but not limited to:
146.12(1) a natural disaster;
146.13(2) unforeseen industry trends;
146.14(3) a decline in economic activity in the overall or greater Minnesota economy; or
146.15(4) loss of a major supplier or customer of the business.
146.16EFFECTIVE DATE.This section is effective the day following final enactment.
146.17 Sec. 2. Minnesota Statutes 2012, section 297A.61, subdivision 3, is amended to read:
146.18 Subd. 3. Sale and purchase. (a) "Sale" and "purchase" include, but are not limited
146.19to, each of the transactions listed in this subdivision. In applying the provisions of this
146.20chapter, the terms "tangible personal property" and "retail sale" include the taxable
146.21services listed in paragraph (g), clause (6), items (i) to (vi) and (viii), and the provision
146.22of these taxable services, unless specifically provided otherwise. Services performed by
146.23an employee for an employer are not taxable. Services performed by a partnership or
146.24association for another partnership or association are not taxable if one of the entities owns
146.25or controls more than 80 percent of the voting power of the equity interest in the other
146.26entity. Services performed between members of an affiliated group of corporations are not
146.27taxable. For purposes of the preceding sentence, "affiliated group of corporations" means
146.28those entities that would be classified as members of an affiliated group as defined under
146.29United States Code, title 26, section 1504, disregarding the exclusions in section 1504(b).
146.30 (b) Sale and purchase include:
146.31 (1) any transfer of title or possession, or both, of tangible personal property, whether
146.32absolutely or conditionally, for a consideration in money or by exchange or barter; and
146.33 (2) the leasing of or the granting of a license to use or consume, for a consideration
146.34in money or by exchange or barter, tangible personal property, other than a manufactured
146.35home used for residential purposes for a continuous period of 30 days or more.
147.1 (c) Sale and purchase include the production, fabrication, printing, or processing of
147.2tangible personal property for a consideration for consumers who furnish either directly or
147.3indirectly the materials used in the production, fabrication, printing, or processing.
147.4 (d) Sale and purchase include the preparing for a consideration of food.
147.5Notwithstanding section297A.67, subdivision 2 , taxable food includes, but is not limited
147.6to, the following:
147.7 (1) prepared food sold by the retailer;
147.8 (2) soft drinks;
147.9 (3) candy;
147.10 (4) dietary supplements; and
147.11 (5) all food sold through vending machines.
147.12 (e) A sale and a purchase includes the furnishing for a consideration of electricity,
147.13gas, water, or steam for use or consumption within this state.
147.14 (f) A sale and a purchase includes
147.15 the transfer for a consideration of prewritten computer software whether delivered
147.16electronically, by load and leave, or otherwise.
147.17 (g) A sale and a purchase includes the furnishing for a consideration of the following
147.18services:
147.19 (1) the privilege of admission to places of amusement, recreational areas, or athletic
147.20events, and the making available of amusement devices, tanning facilities, reducing
147.21salons, steam baths, Turkish baths, health clubs, and spas or athletic facilities;
147.22 (2) lodging and related services by a hotel, rooming house, resort, campground,
147.23motel, or trailer camp, including furnishing the guest of the facility with access to
147.24telecommunication services, and the granting of any similar license to use real property in
147.25a specific facility, other than the renting or leasing of it for a continuous period of 30 days
147.26or more under an enforceable written agreement that may not be terminated without prior
147.27notice and including accommodations intermediary services provided in connection with
147.28other services provided under this clause;
147.29 (3) nonresidential parking services, whether on a contractual, hourly, or other
147.30periodic basis, except for parking at a meter;
147.31 (4) the granting of membership in a club, association, or other organization if:
147.32 (i) the club, association, or other organization makes available for the use of its
147.33members sports and athletic facilities, without regard to whether a separate charge is
147.34assessed for use of the facilities; and
147.35 (ii) use of the sports and athletic facility is not made available to the general public
147.36on the same basis as it is made available to members.
148.1Granting of membership means both onetime initiation fees and periodic membership
148.2dues. Sports and athletic facilities include golf courses; tennis, racquetball, handball, and
148.3squash courts; basketball and volleyball facilities; running tracks; exercise equipment;
148.4swimming pools; and other similar athletic or sports facilities;
148.5 (5) delivery of aggregate materials by a third party, excluding delivery of aggregate
148.6material used in road construction; and delivery of concrete block by a third party if the
148.7delivery would be subject to the sales tax if provided by the seller of the concrete block.
148.8For purposes of this clause, "road construction" means construction of:
148.9 (i) public roads;
148.10 (ii) cartways; and
148.11 (iii) private roads in townships located outside of the seven-county metropolitan area
148.12up to the point of the emergency response location sign; and
148.13 (6) services as provided in this clause:
148.14 (i) laundry and dry cleaning services including cleaning, pressing, repairing, altering,
148.15and storing clothes, linen services and supply, cleaning and blocking hats, and carpet,
148.16drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not
148.17include services provided by coin operated facilities operated by the customer;
148.18 (ii) motor vehicle washing, waxing, and cleaning services, including services
148.19provided by coin operated facilities operated by the customer, and rustproofing,
148.20undercoating, and towing of motor vehicles;
148.21 (iii) building and residential cleaning, maintenance, and disinfecting services and
148.22pest control and exterminating services;
148.23 (iv) detective, security, burglar, fire alarm, and armored car services; but not
148.24including services performed within the jurisdiction they serve by off-duty licensed peace
148.25officers as defined in section626.84, subdivision 1 , or services provided by a nonprofit
148.26organization or any organization at the direction of a county for monitoring and electronic
148.27surveillance of persons placed on in-home detention pursuant to court order or under the
148.28direction of the Minnesota Department of Corrections;
148.29 (v) pet grooming services;
148.30 (vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting
148.31and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor
148.32plant care; tree, bush, shrub, and stump removal, except when performed as part of a land
148.33clearing contract as defined in section297A.68, subdivision 40 ; and tree trimming for
148.34public utility lines. Services performed under a construction contract for the installation of
148.35shrubbery, plants, sod, trees, bushes, and similar items are not taxable;
149.1 (vii) massages, except when provided by a licensed health care facility or
149.2professional or upon written referral from a licensed health care facility or professional for
149.3treatment of illness, injury, or disease; and
149.4 (viii) the furnishing of lodging, board, and care services for animals in kennels and
149.5other similar arrangements, but excluding veterinary and horse boarding services.
149.6In applying the provisions of this chapter, the terms "tangible personal property"
149.7and "retail sale" include taxable services listed in clause (6), items (i) to (vi) and (viii),
149.8and the provision of these taxable services, unless specifically provided otherwise.
149.9Services performed by an employee for an employer are not taxable. Services performed
149.10by a partnership or association for another partnership or association are not taxable if
149.11one of the entities owns or controls more than 80 percent of the voting power of the
149.12equity interest in the other entity. Services performed between members of an affiliated
149.13group of corporations are not taxable. For purposes of the preceding sentence, "affiliated
149.14group of corporations" means those entities that would be classified as members of an
149.15affiliated group as defined under United States Code, title 26, section 1504, disregarding
149.16the exclusions in section 1504(b).
149.17For purposes of clause (5), "road construction" means construction of (1) public
149.18roads, (2) cartways, and (3) private roads in townships located outside of the seven-county
149.19metropolitan area up to the point of the emergency response location sign.
149.20 (h) A sale and a purchase includes the furnishing for a consideration of tangible
149.21personal property or taxable services by the United States or any of its agencies or
149.22instrumentalities, or the state of Minnesota, its agencies, instrumentalities, or political
149.23subdivisions.
149.24 (i) A sale and a purchase includes the furnishing for a consideration of
149.25telecommunications services, ancillary services associated with telecommunication
149.26services,cable and pay television services, and direct satellite services. Telecommunication
149.27services include, but are not limited to, the following services, as defined in section
149.28297A.669
: air-to-ground radiotelephone service, mobile telecommunication service,
149.29postpaid calling service, prepaid calling service, prepaid wireless calling service, and
149.30private communication services. The services in this paragraph are taxed to the extent
149.31allowed under federal law.
149.32 (j) A sale and a purchase includes the furnishing for a consideration of installation if
149.33the installation charges would be subject to the sales tax if the installation were provided
149.34by the seller of the item being installed.
149.35 (k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer
149.36to a customer when (1) the vehicle is rented by the customer for a consideration, or (2)
150.1the motor vehicle dealer is reimbursed pursuant to a service contract as defined in section
150.259B.02, subdivision
11.
150.3 (l) A sale and a purchase includes furnishing for a consideration of specified digital
150.4products or other digital products or granting the right for a consideration to use specified
150.5digital products or other digital products on a temporary or permanent basis and regardless
150.6of whether the purchaser is required to make continued payments for such right. Wherever
150.7the term "tangible personal property" is used in this chapter, other than in subdivisions 10
150.8and 38, the provisions also apply to specified digital products, or other digital products,
150.9unless specifically provided otherwise or the context indicates otherwise.
150.10(m) A sale and purchase includes the furnishing for consideration of the following
150.11services:
150.12(1) repairing and maintaining electronic and precision equipment, which service can
150.13be deducted as a business expense under the Internal Revenue Code. This includes, but
150.14is not limited to, repair or maintenance of electronic devices, computers and computer
150.15peripherals, monitors, computer terminals, storage devices, and CD-ROM drives; other
150.16office equipment such as photocopying machines, printers, and facsimile machines;
150.17televisions, stereos, sound systems, video or digital recorders and players; two-way radios
150.18and other communications equipment; radar and sonar equipment, scientific instruments,
150.19microscopes, and medical equipment;
150.20(2) repairing and maintaining commercial and industrial machinery and equipment.
150.21For purposes of this subdivision, the following items are not commercial or industrial
150.22machinery and equipment: (i) motor vehicles; (ii) furniture and fixtures; (iii) ships; (iv)
150.23railroad stock; and (v) aircraft; and
150.24(3) warehousing or storage services for tangible personal property, excluding:
150.25(i) agricultural products;
150.26(ii) refrigerated storage;
150.27(iii) electronic data; and
150.28(iv) self-storage services and storage of motor vehicles, recreational vehicles, and
150.29boats, not eligible to be deducted as a business expense under the Internal Revenue Code.
150.30EFFECTIVE DATE.This section is effective for sales and purchases made after
150.31June 30, 2013, except that paragraph (m), clause (3), is effective for sales and purchases
150.32made after March 31, 2014.
150.33 Sec. 3. Minnesota Statutes 2012, section 297A.61, subdivision 4, is amended to read:
150.34 Subd. 4. Retail sale. (a) A "retail sale" means:
151.1 (1) any sale, lease, or rental of tangible personal propertyfor any purpose, other than
151.2resale, sublease, or subrent of items by the purchaser in the normal course of business
151.3as defined in subdivision 21; and
151.4 (2) any sale of a service enumerated in subdivision 3, for any purpose other than
151.5resale by the purchaser in the normal course of business as defined in subdivision 21.
151.6 (b) A sale of property used by the owner only by leasing it to others or by holding it
151.7in an effort to lease it, and put to no use by the owner other than resale after the lease or
151.8effort to lease, is a sale of property for resale.
151.9 (c) A sale of master computer software that is purchased and used to make copies for
151.10sale or lease is a sale of property for resale.
151.11 (d) A sale of building materials, supplies, and equipment to owners, contractors,
151.12subcontractors, or builders for the erection of buildings or the alteration, repair, or
151.13improvement of real property is a retail sale in whatever quantity sold, whether the sale is
151.14for purposes of resale in the form of real property or otherwise.
151.15 (e) A sale of carpeting, linoleum, or similar floor covering to a person who provides
151.16for installation of the floor covering is a retail sale and not a sale for resale since a sale of
151.17floor covering which includes installation is a contract for the improvement of real property.
151.18 (f) A sale of shrubbery, plants, sod, trees, and similar items to a person who provides
151.19for installation of the items is a retail sale and not a sale for resale since a sale of
151.20shrubbery, plants, sod, trees, and similar items that includes installation is a contract for
151.21the improvement of real property.
151.22 (g) A sale of tangible personal property that is awarded as prizes is a retail sale and
151.23is not considered a sale of property for resale.
151.24 (h) A sale of tangible personal property utilized or employed in the furnishing or
151.25providing of services under subdivision 3, paragraph (g), clause (1), including, but not
151.26limited to, property given as promotional items, is a retail sale and is not considered a
151.27sale of property for resale.
151.28 (i) A sale of tangible personal property used in conducting lawful gambling under
151.29chapter 349 or the State Lottery under chapter 349A, including, but not limited to, property
151.30given as promotional items, is a retail sale and is not considered a sale of property for resale.
151.31 (j) a sale of machines, equipment, or devices that are used to furnish, provide, or
151.32dispense goods or services, including, but not limited to, coin-operated devices, is a retail
151.33sale and is not considered a sale of property for resale.
151.34 (k) In the case of a lease, a retail sale occurs (1) when an obligation to make a lease
151.35payment becomes due under the terms of the agreement or the trade practices of the
151.36lessor or (2) in the case of a lease of a motor vehicle, as defined in section297B.01,
152.1subdivision 11 , but excluding vehicles with a manufacturer's gross vehicle weight rating
152.2greater than 10,000 pounds and rentals of vehicles for not more than 28 days, at the time
152.3the lease is executed.
152.4 (l) In the case of a conditional sales contract, a retail sale occurs upon the transfer of
152.5title or possession of the tangible personal property.
152.6 (m) A sale of a bundled transaction in which one or more of the products included
152.7in the bundle is a taxable product is a retail sale, except that if one of the products
152.8is a telecommunication service, ancillary service, Internet access, or audio or video
152.9programming service, and the seller has maintained books and records identifying through
152.10reasonable and verifiable standards the portions of the price that are attributable to the
152.11distinct and separately identifiable products, then the products are not considered part of a
152.12bundled transaction. For purposes of this paragraph:
152.13 (1) the books and records maintained by the seller must be maintained in the regular
152.14course of business, and do not include books and records created and maintained by the
152.15seller primarily for tax purposes;
152.16 (2) books and records maintained in the regular course of business include, but are
152.17not limited to, financial statements, general ledgers, invoicing and billing systems and
152.18reports, and reports for regulatory tariffs and other regulatory matters; and
152.19 (3) books and records are maintained primarily for tax purposes when the books
152.20and records identify taxable and nontaxable portions of the price, but the seller maintains
152.21other books and records that identify different prices attributable to the distinct products
152.22included in the same bundled transaction.
152.23 (n) A sale of motor vehicle repair paint and materials by a motor vehicle repair or
152.24body shop business is a retail sale and the sales tax is imposed on the gross receipts from the
152.25retail sale of the paint and materials. The motor vehicle repair or body shop that purchases
152.26motor vehicle repair paint and motor vehicle repair materials for resale must either:
152.27 (1) separately state each item of paint and each item of materials, and the sales price
152.28of each, on the invoice to the purchaser; or
152.29 (2) in order to calculate the sales price of the paint and materials, use a method
152.30which estimates the amount and monetary value of the paint and materials used in
152.31the repair of the motor vehicle by multiplying the number of labor hours by a rate of
152.32consideration for the paint and materials used in the repair of the motor vehicle following
152.33industry standard practices that fairly calculate the gross receipts from the retail sale of
152.34the motor vehicle repair paint and motor vehicle repair materials. An industry standard
152.35practice fairly calculates the gross receipts if the sales price of the paint and materials used
152.36or consumed in the repair of a motor vehicle equals or exceeds the purchase price paid
153.1by the motor vehicle repair or body shop business. Under this clause, the invoice must
153.2either separately state the "paint and materials" as a single taxable item, or separately state
153.3"paint" as a taxable item and "materials" as a taxable item. This clause does not apply to
153.4wholesale transactions at an auto auction facility.
153.5 (o) A sale of specified digital products or other digital products to an end user with
153.6or without rights of permanent use and regardless of whether rights of use are conditioned
153.7upon payment by the purchaser is a retail sale. When a digital code has been purchased that
153.8relates to specified digital products or other digital products, the subsequent receipt of or
153.9access to the related specified digital products or other digital products is not a retail sale.
153.10 (p) A payment made to a cooperative electric association or public utility as a
153.11contribution in aid of construction is a contract for improvement to real property and
153.12is not a retail sale.
153.13EFFECTIVE DATE.This section is effective for sales and purchases made after
153.14June 30, 2013.
153.15 Sec. 4. Minnesota Statutes 2012, section 297A.61, subdivision 10, is amended to read:
153.16 Subd. 10. Tangible personal property. (a) "Tangible personal property" means
153.17personal property that can be seen, weighed, measured, felt, or touched, or that is in any
153.18other manner perceptible to the senses. "Tangible personal property" includes, but is not
153.19limited to, electricity, water, gas, steam, and prewritten computer software.
153.20 (b) Tangible personal property does not include:
153.21 (1) large ponderous machinery and equipment used in a business or production
153.22activity which at common law would be considered to be real property;
153.23 (2) property which is subject to an ad valorem property tax;
153.24 (3) property described in section272.02, subdivision 9 , clauses (a) to (d); and
153.25 (4) property described in section272.03, subdivision 2 , clauses (3) and (5).; and
153.26(5) specified digital products, or other digital products, transferred electronically.
153.27EFFECTIVE DATE.This section is effective for sales and purchases made after
153.28June 30, 2013.
153.29 Sec. 5. Minnesota Statutes 2012, section 297A.61, subdivision 25, is amended to read:
153.30 Subd. 25.Cable Pay television service. "Cable Pay television service" means
153.31the transmission of video, audio, or other programming service to purchasers, and the
153.32subscriber interaction, if any, required for the selection or use of the programming service,
153.33regardless of whether the programming is transmitted over facilities owned or operated
154.1by the cable service provider or over facilities owned or operated by one or more dealers
154.2of communications services. The term includes point-to-multipoint distribution direct to
154.3home satellite services by which programming is transmitted or broadcast by microwave
154.4or other equipment directly to the subscriber's premises, or any similar or comparable
154.5method of service. The term includesbasic, extended, premium, all programming services,
154.6including subscriptions, digital video recorders, pay-per-view,digital, and music services.
154.7EFFECTIVE DATE.This section is effective for sales and purchases made after
154.8June 30, 2013.
154.9 Sec. 6. Minnesota Statutes 2012, section 297A.61, subdivision 38, is amended to read:
154.10 Subd. 38. Bundled transaction. (a) "Bundled transaction" means the retail sale
154.11of two or more products when the products are otherwise distinct and identifiable, and
154.12the products are sold for one nonitemized price. As used in this subdivision, "product"
154.13includes tangible personal property, services, intangibles, and digital goods, including
154.14specified digital products or other digital products, but does not include real property or
154.15services to real property. A bundled transaction does not include the sale of any products
154.16in which the sales price varies, or is negotiable, based on the selection by the purchaser of
154.17the products included in the transaction.
154.18 (b) For purposes of this subdivision, "distinct and identifiable" products does not
154.19include:
154.20 (1) packaging and other materials, such as containers, boxes, sacks, bags, and
154.21bottles, wrapping, labels, tags, and instruction guides, that accompany the retail sale of the
154.22products and are incidental or immaterial to the retail sale. Examples of packaging that are
154.23incidental or immaterial include grocery sacks, shoe boxes, dry cleaning garment bags,
154.24and express delivery envelopes and boxes;
154.25 (2) a promotional product provided free of charge with the required purchase of
154.26another product. A promotional product is provided free of charge if the sales price of
154.27another product, which is required to be purchased in order to receive the promotional
154.28product, does not vary depending on the inclusion of the promotional product; and
154.29 (3) items included in the definition of sales price.
154.30 (c) For purposes of this subdivision, the term "one nonitemized price" does not
154.31include a price that is separately identified by product on binding sales or other supporting
154.32sales-related documentation made available to the customer in paper or electronic form
154.33including but not limited to an invoice, bill of sale, receipt, contract, service agreement,
154.34lease agreement, periodic notice of rates and services, rate card, or price list.
155.1 (d) A transaction that otherwise meets the definition of a bundled transaction is
155.2not a bundled transaction if it is:
155.3 (1) the retail sale of tangible personal property and a service and the tangible
155.4personal property is essential to the use of the service, and is provided exclusively in
155.5connection with the service, and the true object of the transaction is the service;
155.6 (2) the retail sale of services if one service is provided that is essential to the use or
155.7receipt of a second service and the first service is provided exclusively in connection with
155.8the second service and the true object of the transaction is the second service;
155.9 (3) a transaction that includes taxable products and nontaxable products and the
155.10purchase price or sales price of the taxable products is de minimis; or
155.11 (4) the retail sale of exempt tangible personal property and taxable tangible personal
155.12property if:
155.13 (i) the transaction includes food and food ingredients, drugs, durable medical
155.14equipment, mobility enhancing equipment, over-the-counter drugs, prosthetic devices,
155.15or medical supplies; and
155.16 (ii) the seller's purchase price or sales price of the taxable tangible personal property is
155.1750 percent or less of the total purchase price or sales price of the bundled tangible personal
155.18property. Sellers must not use a combination of the purchase price and sales price of the
155.19tangible personal property when making the 50 percent determination for a transaction.
155.20 (e) For purposes of this subdivision, "purchase price" means the measure subject to
155.21use tax on purchases made by the seller, and "de minimis" means that the seller's purchase
155.22price or sales price of the taxable products is ten percent or less of the total purchase
155.23price or sales price of the bundled products. Sellers shall use either the purchase price
155.24or the sales price of the products to determine if the taxable products are de minimis.
155.25Sellers must not use a combination of the purchase price and sales price of the products
155.26to determine if the taxable products are de minimis. Sellers shall use the full term of a
155.27service contract to determine if the taxable products are de minimis.
155.28EFFECTIVE DATE.This section is effective for sales and purchases made after
155.29June 30, 2013.
155.30 Sec. 7. Minnesota Statutes 2012, section 297A.61, subdivision 45, is amended to read:
155.31 Subd. 45. Ring tone. "Ring tone" means a digitized sound file that is downloaded
155.32onto a device and that may be used to alert the customerof a telecommunication service
155.33 with respect to a communication. A ring tone does not include ring back tones or other
155.34digital audio files that are not stored on the purchaser's communication device.
156.1EFFECTIVE DATE.This section is effective for sales and purchases made after
156.2June 30, 2013.
156.3 Sec. 8. Minnesota Statutes 2012, section 297A.61, is amended by adding a subdivision
156.4to read:
156.5 Subd. 49. Motor vehicle repair paint and motor vehicle repair materials. "Motor
156.6vehicle repair paint" means a substance composed of solid matter suspended in a liquid
156.7medium and applied as a protective or decorative coating to the surface of a motor vehicle in
156.8order to restore the motor vehicle to its original condition, and includes primer, body paint,
156.9clear coat, and paint thinner used to paint motor vehicles, as defined in section 297B.01.
156.10"Motor vehicle repair materials" means items, other than motor vehicle repair paint
156.11or motor vehicle parts, that become a part of a repaired motor vehicle or are consumed in
156.12repairing the motor vehicle at retail, and include abrasives, battery water, body filler or
156.13putty, bolts and nuts, brake fluid, buffing pads, chamois, cleaning compounds, degreasing
156.14compounds, glaze, grease, grinding discs, hydraulic jack oil, lubricants, masking tape,
156.15oxygen and acetylene, polishes, rags, razor blades, sandpaper, sanding discs, scuff pads,
156.16sealer, solder, solvents, striping tape, tack cloth, thinner, waxes, and welding rods. Motor
156.17vehicle repair materials do not include items that are not used directly on the motor vehicle,
156.18such as floor dry that is used to clean the shop, or cleaning compounds and rags that are
156.19used to clean tools, equipment, or the shop and are not used to clean the motor vehicle.
156.20EFFECTIVE DATE.This section is effective for sales and purchases made after
156.21June 30, 2013.
156.22 Sec. 9. Minnesota Statutes 2012, section 297A.61, is amended by adding a subdivision
156.23to read:
156.24 Subd. 50. Digital audio works. "Digital audio works" means works that result from
156.25a fixation of a series of musical, spoken, or other sounds, that are transferred electronically.
156.26Digital audio works includes such items as the following which may either be prerecorded
156.27or live: songs, music, readings of books or other written materials, speeches, ring tones, or
156.28other sound recordings. Digital audio works does not include audio greeting cards sent by
156.29electronic mail. Unless the context provides otherwise, in this chapter digital audio works
156.30includes the digital code, or a subscription to or access to a digital code, for receiving,
156.31accessing, or otherwise obtaining digital audio works.
156.32EFFECTIVE DATE.This section is effective for sales and purchases made after
156.33June 30, 2013.
157.1 Sec. 10. Minnesota Statutes 2012, section 297A.61, is amended by adding a
157.2subdivision to read:
157.3 Subd. 51. Digital audiovisual works. "Digital audiovisual works" means a series
157.4of related images which, when shown in succession, impart an impression of motion,
157.5together with accompanying sounds, if any, that are transferred electronically. Digital
157.6audiovisual works includes such items as motion pictures, movies, musical videos, news
157.7and entertainment, and live events. Digital audiovisual works does not include video
157.8greeting cards sent by electronic mail. Unless the context provides otherwise, in this
157.9chapter digital audiovisual works includes the digital code, or a subscription to or access to
157.10a digital code, for receiving, accessing, or otherwise obtaining digital audiovisual works.
157.11EFFECTIVE DATE.This section is effective for sales and purchases made after
157.12June 30, 2013.
157.13 Sec. 11. Minnesota Statutes 2012, section 297A.61, is amended by adding a
157.14subdivision to read:
157.15 Subd. 52. Digital books. "Digital books" means any literary works, other than
157.16digital audiovisual works or digital audio works, expressed in words, numbers, or other
157.17verbal or numerical symbols or indicia so long as the product is generally recognized in
157.18the ordinary and usual sense as a "book." It includes works of fiction and nonfiction and
157.19short stories. It does not include periodicals, magazines, newspapers, or other news or
157.20information products, chat rooms, or weblogs. Unless the context provides otherwise, in
157.21this chapter digital books includes the digital code, or a subscription to or access to a
157.22digital code, for receiving, accessing, or otherwise obtaining digital books.
157.23EFFECTIVE DATE.This section is effective for sales and purchases made after
157.24June 30, 2013.
157.25 Sec. 12. Minnesota Statutes 2012, section 297A.61, is amended by adding a
157.26subdivision to read:
157.27 Subd. 53. Digital code. "Digital code" means a code which provides a purchaser
157.28with a right to obtain one or more specified digital products or other digital products.
157.29A digital code may be transferred electronically, such as through electronic mail, or it
157.30may be transferred on a tangible medium, such as on a plastic card, a piece of paper or
157.31invoice, or imprinted on another product. A digital code is not a code that represents a
157.32stored monetary value that is deducted from a total as it is used by the purchaser, and it
157.33is not a code that represents a redeemable card, gift card, or gift certificate that entitles
158.1the holder to select a digital product of an indicated cash value. The end user of a digital
158.2code is any purchaser except one who receives the contractual right to redistribute a digital
158.3product which is the subject of the transaction.
158.4EFFECTIVE DATE.This section is effective for sales and purchases made after
158.5June 30, 2013.
158.6 Sec. 13. Minnesota Statutes 2012, section 297A.61, is amended by adding a
158.7subdivision to read:
158.8 Subd. 54. Other digital products. "Other digital products" means the following
158.9items when transferred electronically:
158.10(1) greeting cards; and
158.11(2) online video or electronic games.
158.12EFFECTIVE DATE.This section is effective for sales and purchases made after
158.13June 30, 2013.
158.14 Sec. 14. Minnesota Statutes 2012, section 297A.61, is amended by adding a
158.15subdivision to read:
158.16 Subd. 55. Specified digital products. "Specified digital products" means digital
158.17audio works, digital audiovisual works, and digital books that are transferred electronically
158.18to a customer.
158.19EFFECTIVE DATE.This section is effective for sales and purchases made after
158.20June 30, 2013.
158.21 Sec. 15. Minnesota Statutes 2012, section 297A.61, is amended by adding a
158.22subdivision to read:
158.23 Subd. 56. Transferred electronically. "Transferred electronically" means obtained
158.24by the purchaser by means other than tangible storage media. For purposes of this
158.25subdivision, it is not necessary that a copy of the product be physically transferred to
158.26the purchaser. A product will be considered to have been transferred electronically to a
158.27purchaser if the purchaser has access to the product.
158.28EFFECTIVE DATE.This section is effective for sales and purchases made after
158.29June 30, 2013.
159.1 Sec. 16. Minnesota Statutes 2012, section 297A.61, is amended by adding a
159.2subdivision to read:
159.3 Subd. 58. Self-storage service. "Self-storage service" means a storage service that
159.4provides secure areas, such as rooms, units, compartments or containers, whether accessible
159.5from outside or from within a building, that are designated for the use of a purchaser,
159.6where the purchaser retains the care custody and control of their property, including
159.7self-storage units, mini-storage units, and areas by any other name to which the purchaser
159.8retains either unlimited free access or free access within reasonable business hours or upon
159.9reasonable notice to the service provider to add or remove property, but does not mean the
159.10rental of an entire building, such as a warehouse. Self-storage service does not include
159.11general warehousing and storage services where the warehouse typically handles, stores,
159.12and retrieves a purchaser's property using the warehouse's staff and equipment, and does
159.13not allow the purchaser free access to the storage space and does not include bailments.
159.14EFFECTIVE DATE.This section is effective July 1, 2013.
159.15 Sec. 17. Minnesota Statutes 2012, section 297A.64, subdivision 1, is amended to read:
159.16 Subdivision 1. Tax imposed. A tax is imposed on the lease or rental in this state
159.17for not more than 28 days of a passenger automobile as defined in section168.002,
159.18subdivision 24 , a van as defined in section
168.002, subdivision 40 , or a pickup truck as
159.19defined in section168.002, subdivision 26 . The rate of tax is 6.2 9.2 percent of the sales
159.20price. The tax applies whether or not the vehicle is licensed in the state.
159.21EFFECTIVE DATE.This section is effective for sales and purchases made after
159.22June 30, 2013.
159.23 Sec. 18. Minnesota Statutes 2012, section 297A.66, subdivision 3, is amended to read:
159.24 Subd. 3. Retailer not maintaining place of business in this state. (a) To the extent
159.25allowed by the United States Constitution andthe laws of the United States in accordance
159.26with the terms and conditions of federal remote seller law, a retailer making retail sales
159.27from outside this state to a destination within this state and not maintaining a place of
159.28business in this state shall collect sales and use taxes and remit them to the commissioner
159.29under section297A.77 ,.
159.30(b) To the extent allowed by the United States Constitution and the laws of the
159.31United States, a retailer making retail sales from outside this state to a destination within
159.32this state and not maintaining a place of business in this state shall collect sales and use
160.1taxes and remit them to the commissioner under section297A.77 , if the retailer engages in
160.2the regular or systematic soliciting of sales from potential customers in this state by:
160.3(1) distribution, by mail or otherwise, of catalogs, periodicals, advertising flyers, or
160.4other written solicitations of business to customers in this state;
160.5(2) display of advertisements on billboards or other outdoor advertising in this state;
160.6(3) advertisements in newspapers published in this state;
160.7(4) advertisements in trade journals or other periodicals the circulation of which is
160.8primarily within this state;
160.9(5) advertisements in a Minnesota edition of a national or regional publication or
160.10a limited regional edition in which this state is included as part of a broader regional or
160.11national publication which are not placed in other geographically defined editions of the
160.12same issue of the same publication;
160.13(6) advertisements in regional or national publications in an edition which is not
160.14by its contents geographically targeted to Minnesota but which is sold over the counter
160.15in Minnesota or by subscription to Minnesota residents;
160.16(7) advertisements broadcast on a radio or television station located in Minnesota; or
160.17(8) any other solicitation by telegraphy, telephone, computer database, cable, optic,
160.18microwave, or other communication system.
160.19This paragraph (a) must be construed without regard to the state from which
160.20distribution of the materials originated or in which they were prepared.
160.21(b) The location within or without this state of independent vendors that provide
160.22products or services to the retailer in connection with its solicitation of customers within this
160.23state, including such products and services as creation of copy, printing, distribution, and
160.24recording, is not considered in determining whether the retailer is required to collect tax.
160.25(c) A retailer not maintaining a place of business in this state is presumed, subject to
160.26rebuttal, to be engaged in regular solicitation within this state if it engages in any of the
160.27activities in paragraph (a) and:
160.28(1) makes 100 or more retail sales from outside this state to destinations in this state
160.29during a period of 12 consecutive months; or
160.30(2) makes ten or more retail sales totaling more than $100,000 from outside this state
160.31to destinations in this state during a period of 12 consecutive months.
160.32EFFECTIVE DATE.This section is effective the day after final enactment.
160.33 Sec. 19. Minnesota Statutes 2012, section 297A.66, is amended by adding a
160.34subdivision to read:
161.1 Subd. 4a. Solicitor. (a) "Solicitor," for purposes of subdivision 1, paragraph (a),
161.2means a person, whether an independent contractor or other representative, who directly
161.3or indirectly solicits business for the retailer.
161.4(b) A retailer is presumed to have a solicitor in this state if it enters into an agreement
161.5with a resident under which the resident, for a commission or other substantially similar
161.6consideration, directly or indirectly refers potential customers, whether by a link on an
161.7Internet Web site, or otherwise, to the seller. This paragraph only applies if the total gross
161.8receipts are at least $10,000 in the 12-month period ending on the last day of the most recent
161.9calendar quarter before the calendar quarter in which the sale is made. For purposes of this
161.10paragraph, gross receipts means receipts from sales to customers located in the state who
161.11were referred to the retailer by all residents with this type of agreement with the retailer.
161.12(c) The presumption under paragraph (b) may be rebutted by proof that the resident
161.13with whom the seller has an agreement did not engage in any solicitation in the state
161.14on behalf of the retailer that would satisfy the nexus requirement of the United States
161.15Constitution during the 12-month period in question. Nothing in this section shall be
161.16construed to narrow the scope of the terms affiliate, agent, salesperson, canvasser, or other
161.17representative for purposes of subdivision 1, paragraph (a).
161.18(d) For purposes of this paragraph, "resident" includes an individual who is a
161.19resident of this state, as defined in section 290.01, or a business that owns tangible
161.20personal property located in this state or has one or more employees providing services for
161.21the business in this state.
161.22(e) This subdivision does not apply to chapter 290 and does not expand or contract
161.23the jurisdiction to tax a trade or business under chapter 290.
161.24EFFECTIVE DATE.This section is effective for sales and purchases made after
161.25June 30, 2013.
161.26 Sec. 20. Minnesota Statutes 2012, section 297A.665, is amended to read:
161.27297A.665 PRESUMPTION OF TAX; BURDEN OF PROOF.
161.28 (a) For the purpose of the proper administration of this chapter and to prevent
161.29evasion of the tax, until the contrary is established, it is presumed that:
161.30 (1) all gross receipts are subject to the tax; and
161.31 (2) all retail sales for delivery in Minnesota are for storage, use, or other consumption
161.32in Minnesota.
161.33 (b) The burden of proving that a sale is not a taxable retail sale is on the seller.
161.34However, a seller is relieved of liability if:
162.1 (1) the seller obtains a fully completed exemption certificate or all the relevant
162.2information required by section297A.72, subdivision 2 , at the time of the sale or within
162.390 days after the date of the sale;or
162.4 (2) if the seller has not obtained a fully completed exemption certificate or all the
162.5relevant information required by section297A.72, subdivision 2 , within the time provided
162.6in clause (1), within 120 days after a request for substantiation by the commissioner,
162.7the seller either:
162.8 (i) obtains in good faith a fully completed exemption certificate or all the relevant
162.9information required by section297A.72, subdivision 2 , from the purchaser; or
162.10 (ii) proves by other means that the transaction was not subject to tax;
162.11 (3) in the case of drop shipment sales, a seller engaged in drop shipping may claim a
162.12resale exemption based on an exemption certificate provided by its customer or reseller,
162.13or any other acceptable information available to the seller engaged in drop shipping
162.14evidencing qualification for a resale exemption, regardless of whether the customer or
162.15reseller is registered to collect and remit sales and use tax in the state.
162.16 (c) Notwithstanding paragraph (b), relief from liability does not apply to a seller who:
162.17 (1) fraudulently fails to collect the tax; or
162.18 (2) solicits purchasers to participate in the unlawful claim of an exemption.
162.19 (d) A certified service provider, as defined in section297A.995, subdivision 2 , is
162.20relieved of liability under this section to the extent a seller who is its client is relieved of
162.21liability.
162.22 (e) A purchaser of tangible personal property or any items listed in section297A.63
162.23that are shipped or brought to Minnesota by the purchaser has the burden of proving that the
162.24property was not purchased from a retailer for storage, use, or consumption in Minnesota.
162.25 (f) If a seller claims that certain sales are exempt and does not provide the certificate,
162.26information, or proof required by paragraph (b), clause (2), within 120 days after the date
162.27of the commissioner's request for substantiation, then the exemptions claimed by the seller
162.28that required substantiation are disallowed.
162.29EFFECTIVE DATE.This section is effective for sales and purchases made after
162.30June 30, 2013.
162.31 Sec. 21. Minnesota Statutes 2012, section 297A.668, is amended by adding a
162.32subdivision to read:
162.33 Subd. 6a. Multiple points of use. (a) Notwithstanding the provisions of subdivisions
162.342 and 3, a business purchaser that has not received authorization to pay the tax directly to
162.35the commissioner may use an exemption certificate indicating multiple points of use if:
163.1(1) the purchaser knows at the time of its purchase of a digital good, computer
163.2software delivered electronically, or a service that the good or service will be concurrently
163.3available for use in more than one taxing jurisdiction; and
163.4(2) the purchaser delivers to the seller the exemption certificate indicating multiple
163.5points of use at the time of purchase.
163.6(b) Upon receipt of the fully completed exemption certificate indicating multiple
163.7points of use, the seller is relieved of the obligation to collect, pay, or remit the applicable
163.8tax and the purchaser is obligated to collect, pay, or remit the applicable tax on a direct
163.9pay basis. The provisions of section 297A.665 apply to this paragraph.
163.10(c) The purchaser delivering the exemption certificate indicating multiple points
163.11of use may use any reasonable but consistent and uniform method of apportionment
163.12that is supported by the purchaser's business records as they exist at the time of the
163.13consummation of the sale.
163.14(d) The purchaser shall provide the exemption certificate indicating multiple points
163.15of use to the seller at the time of purchase.
163.16(e) A purchaser that has received authorization to pay the tax directly to the
163.17commissioner is not required to deliver to the seller an exemption certificate indicating
163.18multiple points of use. A purchaser that has received authorization to pay the tax directly
163.19to the commissioner shall follow the provisions of paragraph (c) in apportioning the tax
163.20due on a digital good, computer software delivered electronically, or a service that will be
163.21concurrently available for use in more than one taxing jurisdiction.
163.22EFFECTIVE DATE.This section is effective for sales and purchases made after
163.23June 30, 2013.
163.24 Sec. 22. Minnesota Statutes 2012, section 297A.67, subdivision 7, is amended to read:
163.25 Subd. 7. Drugs; medical devices. (a) Sales of the following drugs and medical
163.26devices for human use are exempt:
163.27 (1) drugs, including over-the-counter drugs;
163.28 (2) single-use finger-pricking devices for the extraction of blood and other single-use
163.29devices and single-use diagnostic agents used in diagnosing, monitoring, or treating
163.30diabetes;
163.31 (3) insulin and medical oxygen for human use, regardless of whether prescribed
163.32or sold over the counter;
163.33 (4) prosthetic devices;
163.34 (5) durable medical equipment for home use only;
163.35 (6) mobility enhancing equipment;
164.1 (7) prescription corrective eyeglasses; and
164.2 (8) kidney dialysis equipment, including repair and replacement parts.
164.3(b) Items purchased in transactions covered by:
164.4(1) Medicare as defined under title XVIII of the Social Security Act, United States
164.5Code, title 42, section 1395, et seq.; or
164.6(2) Medicaid as defined under title XIX of the Social Security Act, United States
164.7Code, title 42, section 1396, et seq.
164.8(b) (c) For purposes of this subdivision:
164.9 (1) "Drug" means a compound, substance, or preparation, and any component of
164.10a compound, substance, or preparation, other than food and food ingredients, dietary
164.11supplements, or alcoholic beverages that is:
164.12 (i) recognized in the official United States Pharmacopoeia, official Homeopathic
164.13Pharmacopoeia of the United States, or official National Formulary, and supplement
164.14to any of them;
164.15 (ii) intended for use in the diagnosis, cure, mitigation, treatment, or prevention
164.16of disease; or
164.17 (iii) intended to affect the structure or any function of the body.
164.18 (2) "Durable medical equipment" means equipment, including repair and
164.19replacement parts, including single-patient use items, but not including mobility enhancing
164.20equipment, that:
164.21 (i) can withstand repeated use;
164.22 (ii) is primarily and customarily used to serve a medical purpose;
164.23 (iii) generally is not useful to a person in the absence of illness or injury; and
164.24 (iv) is not worn in or on the body.
164.25 For purposes of this clause, "repair and replacement parts" includes all components
164.26or attachments used in conjunction with the durable medical equipment,but does not
164.27include including repair and replacement parts which are for single patient use only.
164.28 (3) "Mobility enhancing equipment" means equipment, including repair and
164.29replacement parts, but not including durable medical equipment, that:
164.30 (i) is primarily and customarily used to provide or increase the ability to move from
164.31one place to another and that is appropriate for use either in a home or a motor vehicle;
164.32 (ii) is not generally used by persons with normal mobility; and
164.33 (iii) does not include any motor vehicle or equipment on a motor vehicle normally
164.34provided by a motor vehicle manufacturer.
164.35 (4) "Over-the-counter drug" means a drug that contains a label that identifies the
164.36product as a drug as required by Code of Federal Regulations, title 21, section 201.66. The
165.1label must include a "drug facts" panel or a statement of the active ingredients with a list of
165.2those ingredients contained in the compound, substance, or preparation. Over-the-counter
165.3drugs do not include grooming and hygiene products, regardless of whether they otherwise
165.4meet the definition. "Grooming and hygiene products" are soaps, cleaning solutions,
165.5shampoo, toothpaste, mouthwash, antiperspirants, and suntan lotions and sunscreens.
165.6 (5) "Prescribed" and "prescription" means a direction in the form of an order,
165.7formula, or recipe issued in any form of oral, written, electronic, or other means of
165.8transmission by a duly licensed health care professional.
165.9 (6) "Prosthetic device" means a replacement, corrective, or supportive device,
165.10including repair and replacement parts, worn on or in the body to:
165.11 (i) artificially replace a missing portion of the body;
165.12 (ii) prevent or correct physical deformity or malfunction; or
165.13 (iii) support a weak or deformed portion of the body.
165.14Prosthetic device does not include corrective eyeglasses.
165.15 (7) "Kidney dialysis equipment" means equipment that:
165.16 (i) is used to remove waste products that build up in the blood when the kidneys are
165.17not able to do so on their own; and
165.18 (ii) can withstand repeated use, including multiple use by a single patient,
165.19notwithstanding the provisions of clause (2).
165.20(8) A transaction is covered by Medicare or Medicaid if any portion of the cost of
165.21the item purchased in the transaction is paid for or reimbursed by the federal government
165.22or the state of Minnesota pursuant to the Medicare or Medicaid program, by a private
165.23insurance company administering the Medicare or Medicaid program on behalf of the
165.24federal government or the state of Minnesota, or by a managed care organization for the
165.25benefit of a patient enrolled in a prepaid program that furnishes medical services in lieu
165.26of conventional Medicare or Medicaid coverage pursuant to agreement with the federal
165.27government or the state of Minnesota.
165.28EFFECTIVE DATE.This section is effective for sales and purchases made after
165.29June 30, 2013.
165.30 Sec. 23. Minnesota Statutes 2012, section 297A.67, is amended by adding a
165.31subdivision to read:
165.32 Subd. 7a. Accessories and supplies. Accessories and supplies required for the
165.33effective use of durable medical equipment for home use only or purchased in a transaction
165.34covered by medicare or Medicaid, that are not already exempt under section 297A.67,
165.35subdivision 7, are exempt. Accessories and supplies for the effective use of a prosthetic
166.1device that are not already exempt under section 297A.67, subdivision 7, are exempt.
166.2For purposes of this subdivision "durable medical equipment," "prosthetic device,"
166.3"Medicare," and "Medicaid" have the definitions given in section 297A.67, subdivision 7.
166.4EFFECTIVE DATE.This section is effective for sales and purchases made after
166.5June 30, 2013.
166.6 Sec. 24. Minnesota Statutes 2012, section 297A.67, subdivision 13, is amended to read:
166.7 Subd. 13. Textbooks. Textbooks, including digital books, that are prescribed for use
166.8in conjunction with a course of study in a school, college, university, and private career
166.9school to students who are regularly enrolled at such institutions are exempt. For purposes
166.10of this subdivision (1) a "school" is as defined in section120A.22, subdivision 4 ; and (2)
166.11"private career school" means a school licensed under section141.25 .
166.12EFFECTIVE DATE.This section is effective for sales and purchases made after
166.13June 30, 2013.
166.14 Sec. 25. Minnesota Statutes 2012, section 297A.68, subdivision 2, is amended to read:
166.15 Subd. 2. Materials consumed in industrial production. (a) Materials stored, used,
166.16or consumed in industrial production of tangible personal property intended to be sold
166.17ultimately at retail, are exempt, whether or not the item so used becomes an ingredient
166.18or constituent part of the property produced. Materials that qualify for this exemption
166.19include, but are not limited to, the following:
166.20(1) chemicals, including chemicals used for cleaning food processing machinery
166.21and equipment;
166.22(2) materials, including chemicals, fuels, and electricity purchased by persons
166.23engaged in industrial production to treat waste generated as a result of the production
166.24process;
166.25(3) fuels, electricity, gas, and steam used or consumed in the production process,
166.26except that electricity, gas, or steam used for space heating, cooling, or lighting is exempt
166.27if (i) it is in excess of the average climate control or lighting for the production area, and
166.28(ii) it is necessary to produce that particular product;
166.29(4) petroleum products and lubricants;
166.30(5) packaging materials, including returnable containers used in packaging food
166.31and beverage products;
167.1(6) accessory tools, equipment, and other items that are separate detachable units
167.2with an ordinary useful life of less than 12 months used in producing a direct effect upon
167.3the product; and
167.4(7) the following materials, tools, and equipment used in metal-casting: crucibles,
167.5thermocouple protection sheaths and tubes, stalk tubes, refractory materials, molten metal
167.6filters and filter boxes, degassing lances, and base blocks.
167.7(b) This exemption does not include:
167.8(1) machinery, equipment, implements, tools, accessories, appliances, contrivances
167.9and furniture and fixtures, except those listed in paragraph (a), clause (6); and
167.10(2) petroleum and special fuels used in producing or generating power for propelling
167.11ready-mixed concrete trucks on the public highways of this state.
167.12(c) Industrial production includes, but is not limited to, research, development,
167.13design or production of any tangible personal property, manufacturing, processing (other
167.14than by restaurants and consumers) of agricultural products (whether vegetable or animal),
167.15commercial fishing, refining, smelting, reducing, brewing, distilling, printing, mining,
167.16quarrying, lumbering, generating electricity, the production of road building materials,
167.17and the research, development, design, or production of computer software. Industrial
167.18production does not include painting, cleaning, repairing or similar processing of property
167.19except as part of the original manufacturing process.
167.20(d) Industrial production does not include:
167.21(1) the furnishing of services listed in section297A.61, subdivision 3 , paragraph (g),
167.22clause (6), items (i) to (vi) and (viii), or paragraph (m); or
167.23(2) the transportation, transmission, or distribution of petroleum, liquefied gas,
167.24natural gas, water, or steam, in, by, or through pipes, lines, tanks, mains, or other means of
167.25transporting those products. For purposes of this paragraph, "transportation, transmission,
167.26or distribution" does not include blending of petroleum or biodiesel fuel as defined
167.27in section239.77 .
167.28EFFECTIVE DATE.This section is effective for sales and purchases made after
167.29June 30, 2013.
167.30 Sec. 26. Minnesota Statutes 2012, section 297A.68, subdivision 5, is amended to read:
167.31 Subd. 5. Capital equipment. (a) Capital equipment is exempt.The tax must be
167.32imposed and collected as if the rate under section
297A.62, subdivision 1, applied, and
167.33then refunded in the manner provided in section
297A.75.
167.34"Capital equipment" means machinery and equipment purchased or leased, and used
167.35in this state by the purchaser or lessee primarily for manufacturing, fabricating, mining,
168.1or refining tangible personal property to be sold ultimately at retail if the machinery and
168.2equipment are essential to the integrated production process of manufacturing, fabricating,
168.3mining, or refining. Capital equipment also includes machinery and equipment
168.4used primarily to electronically transmit results retrieved by a customer of an online
168.5computerized data retrieval system.
168.6(b) Capital equipment includes, but is not limited to:
168.7(1) machinery and equipment used to operate, control, or regulate the production
168.8equipment;
168.9(2) machinery and equipment used for research and development, design, quality
168.10control, and testing activities;
168.11(3) environmental control devices that are used to maintain conditions such as
168.12temperature, humidity, light, or air pressure when those conditions are essential to and are
168.13part of the production process;
168.14(4) materials and supplies used to construct and install machinery or equipment;
168.15(5) repair and replacement parts, including accessories, whether purchased as spare
168.16parts, repair parts, or as upgrades or modifications to machinery or equipment;
168.17(6) materials used for foundations that support machinery or equipment;
168.18(7) materials used to construct and install special purpose buildings used in the
168.19production process;
168.20(8) ready-mixed concrete equipment in which the ready-mixed concrete is mixed
168.21as part of the delivery process regardless if mounted on a chassis, repair parts for
168.22ready-mixed concrete trucks, and leases of ready-mixed concrete trucks; and
168.23(9) machinery or equipment used for research, development, design, or production
168.24of computer software.
168.25(c) Capital equipment does not include the following:
168.26(1) motor vehicles taxed under chapter 297B;
168.27(2) machinery or equipment used to receive or store raw materials;
168.28(3) building materials, except for materials included in paragraph (b), clauses (6)
168.29and (7);
168.30(4) machinery or equipment used for nonproduction purposes, including, but not
168.31limited to, the following: plant security, fire prevention, first aid, and hospital stations;
168.32support operations or administration; pollution control; and plant cleaning, disposal of
168.33scrap and waste, plant communications, space heating, cooling, lighting, or safety;
168.34(5) farm machinery and aquaculture production equipment as defined by section
168.35297A.61
, subdivisions 12 and 13;
169.1(6) machinery or equipment purchased and installed by a contractor as part of an
169.2improvement to real property;
169.3(7) machinery and equipment used by restaurants in the furnishing, preparing, or
169.4serving of prepared foods as defined in section297A.61, subdivision 31 ;
169.5(8) machinery and equipment used to furnish the services listed in section297A.61,
169.6subdivision 3 , paragraph (g), clause (6), items (i) to (vi) and (viii);
169.7(9) machinery or equipment used in the transportation, transmission, or distribution
169.8of petroleum, liquefied gas, natural gas, water, or steam, in, by, or through pipes, lines,
169.9tanks, mains, or other means of transporting those products. This clause does not apply to
169.10machinery or equipment used to blend petroleum or biodiesel fuel as defined in section
169.11239.77
; or
169.12(10) any other item that is not essential to the integrated process of manufacturing,
169.13fabricating, mining, or refining.
169.14(d) For purposes of this subdivision:
169.15(1) "Equipment" means independent devices or tools separate from machinery but
169.16essential to an integrated production process, including computers and computer software,
169.17used in operating, controlling, or regulating machinery and equipment; and any subunit or
169.18assembly comprising a component of any machinery or accessory or attachment parts of
169.19machinery, such as tools, dies, jigs, patterns, and molds.
169.20(2) "Fabricating" means to make, build, create, produce, or assemble components or
169.21property to work in a new or different manner.
169.22(3) "Integrated production process" means a process or series of operations through
169.23which tangible personal property is manufactured, fabricated, mined, or refined. For
169.24purposes of this clause, (i) manufacturing begins with the removal of raw materials
169.25from inventory and ends when the last process prior to loading for shipment has been
169.26completed; (ii) fabricating begins with the removal from storage or inventory of the
169.27property to be assembled, processed, altered, or modified and ends with the creation
169.28or production of the new or changed product; (iii) mining begins with the removal of
169.29overburden from the site of the ores, minerals, stone, peat deposit, or surface materials and
169.30ends when the last process before stockpiling is completed; and (iv) refining begins with
169.31the removal from inventory or storage of a natural resource and ends with the conversion
169.32of the item to its completed form.
169.33(4) "Machinery" means mechanical, electronic, or electrical devices, including
169.34computers and computer software, that are purchased or constructed to be used for the
169.35activities set forth in paragraph (a), beginning with the removal of raw materials from
169.36inventory through completion of the product, including packaging of the product.
170.1(5) "Machinery and equipment used for pollution control" means machinery and
170.2equipment used solely to eliminate, prevent, or reduce pollution resulting from an activity
170.3described in paragraph (a).
170.4(6) "Manufacturing" means an operation or series of operations where raw materials
170.5are changed in form, composition, or condition by machinery and equipment and which
170.6results in the production of a new article of tangible personal property. For purposes of
170.7this subdivision, "manufacturing" includes the generation of electricity or steam to be
170.8sold at retail.
170.9(7) "Mining" means the extraction of minerals, ores, stone, or peat.
170.10(8) "Online data retrieval system" means a system whose cumulation of information
170.11is equally available and accessible to all its customers.
170.12(9) "Primarily" means machinery and equipment used 50 percent or more of the time
170.13in an activity described in paragraph (a).
170.14(10) "Refining" means the process of converting a natural resource to an intermediate
170.15or finished product, including the treatment of water to be sold at retail.
170.16(11) This subdivision does not apply to telecommunications equipment as
170.17provided in subdivision 35, and does not apply to wire, cable, fiber, poles, or conduit
170.18for telecommunications services.
170.19EFFECTIVE DATE.This section is effective for sales and purchases made after
170.20August 31, 2014.
170.21 Sec. 27. Minnesota Statutes 2012, section 297A.68, subdivision 42, is amended to read:
170.22 Subd. 42. Qualified data centers. (a) Purchases of enterprise information
170.23technology equipment and computer software for use in a qualified data center, or a
170.24qualified refurbished data center, are exempt. The tax on purchases exempt under this
170.25paragraph must be imposed and collected as if the rate under section297A.62, subdivision
170.261 , applied, and then refunded after June 30, 2013, in the manner provided in section
170.27297A.75
. This exemption includes enterprise information technology equipment and
170.28computer software purchased to replace or upgrade enterprise information technology
170.29equipment and computer software in a qualified data center, or a qualified refurbished
170.30data center.
170.31(b) Electricity used or consumed in the operation of a qualified data center is exempt.
170.32(c) For purposes of this subdivision, "qualified data center, or a qualified refurbished
170.33data center," means a facility in Minnesota:
170.34(1) that is comprised of one or more buildings that consist in the aggregate of at least
170.3530,000 25,000 square feet, and that are located on a single parcel or on contiguous parcels,
171.1where the total cost of construction or refurbishment, investment in enterprise information
171.2technology equipment, and computer software is at least$50,000,000 $30,000,000 within
171.3a24 48-month period;
171.4(2) that is constructed or substantially refurbished after June 30, 2012, where
171.5"substantially refurbished" means that at least30,000 25,000 square feet have been rebuilt
171.6or modified; and, including:
171.7(i) installation of enterprise information technology equipment, environmental
171.8control, computer software, and energy efficiency improvements; and
171.9(ii) building improvements; and
171.10(3) that is used to house enterprise information technology equipment, where the
171.11facility has the following characteristics:
171.12(i) uninterruptible power supplies, generator backup power, or both;
171.13(ii) sophisticated fire suppression and prevention systems; and
171.14(iii) enhanced security. A facility will be considered to have enhanced security if it
171.15has restricted access to the facility to selected personnel; permanent security guards; video
171.16camera surveillance; an electronic system requiring pass codes, keycards, or biometric
171.17scans, such as hand scans and retinal or fingerprint recognition; or similar security features.
171.18In determining whether the facility has the required square footage, the square
171.19footage of the following spaces shall be included if the spaces support the operation
171.20of enterprise information technology equipment: office space, meeting space, and
171.21mechanical and other support facilities. For purposes of this subdivision, "computer
171.22software" includes, but is not limited to, software utilized or loaded at the qualified data
171.23center, including maintenance, licensing, and software customization.
171.24(d) For purposes of this subdivision, a "qualified refurbished data center" means an
171.25existing facility that qualifies as a data center under paragraph (c), clauses (2) and (3), but
171.26that is comprised of one or more buildings that consist in the aggregate of at least 25,000
171.27square feet, and that are located on a single parcel or contiguous parcels, where the total
171.28cost of construction or refurbishment, investment in enterprise information technology
171.29equipment, and computer software is at least $50,000,000 within a 24-month period.
171.30(d) (e) For purposes of this subdivision, "enterprise information technology
171.31equipment" means computers and equipment supporting computing, networking, or data
171.32storage, including servers and routers. It includes, but is not limited to: cooling systems,
171.33cooling towers, and other temperature control infrastructure; power infrastructure for
171.34transformation, distribution, or management of electricity used for the maintenance
171.35and operation of a qualified data center, including but not limited to exterior dedicated
171.36business-owned substations, backup power generation systems, battery systems, and
172.1related infrastructure; and racking systems, cabling, and trays, which are necessary for
172.2the maintenance and operation of the qualified data center.
172.3(e) (f) A qualified data center may claim the exemptions in this subdivision for
172.4purchases made either within 20 years of the date of its first purchase qualifying for the
172.5exemption under paragraph (a), or by June 30, 2042, whichever is earlier.
172.6(f) (g) The purpose of this exemption is to create jobs in the construction and data
172.7center industries.
172.8(g) (h) This subdivision is effective for sales and purchases made after June 30,
172.92012, and before July 1, 2042.
172.10EFFECTIVE DATE.This section is effective for sales and purchases made after
172.11June 30, 2013.
172.12 Sec. 28. Minnesota Statutes 2012, section 297A.68, is amended by adding a
172.13subdivision to read:
172.14 Subd. 49. Greater Minnesota business expansions. (a) Purchases and use of
172.15tangible personal property or taxable services by a qualified business, as defined in section
172.16116J.3738, are exempt if:
172.17(1) the business subsidy agreement provides that the exemption under this
172.18subdivision applies;
172.19(2) the property or services are primarily used or consumed in greater Minnesota; and
172.20(3) the purchase was made and delivery received during the duration of the
172.21certification of the business as a qualified business under section 116J.3738.
172.22(b) Purchase and use of construction materials and supplies used or consumed in,
172.23and equipment incorporated into, the construction of improvements to real property in
172.24greater Minnesota are exempt if the improvements after completion of construction are
172.25to be used in the conduct of the trade or business of the qualified business, as defined in
172.26section 116J.3738. This exemption applies regardless of whether the purchases are made
172.27by the business or a contractor.
172.28(c) The exemptions under this subdivision apply to a local sales and use tax.
172.29(d) The tax on purchases imposed under this subdivision must be imposed and
172.30collected as if the rate under section 297A.62 applied, and then refunded in the manner
172.31provided in section 297A.75. No more than $7,000,000 may be refunded in a fiscal year
172.32for all purchases under this subdivision. Refunds must be allocated on a first come, first
172.33served basis. If more than $7,000,000 of eligible claims are made in a fiscal year, claims
172.34by qualified businesses carryover to the next fiscal year, and the commissioner must first
172.35allocate refunds to qualified businesses eligible for a refund in the preceding fiscal year.
173.1Any portion of the balance of funds allocated for refunds under this paragraph does not
173.2cancel and shall be carried forward to and available for refunds in subsequent fiscal years.
173.3EFFECTIVE DATE.This section is effective for sales and purchases made after
173.4June 30, 2014.
173.5 Sec. 29. Minnesota Statutes 2012, section 297A.70, subdivision 2, is amended to read:
173.6 Subd. 2. Sales to government. (a) All sales, except those listed in paragraph (b),
173.7to the following governments and political subdivisions, or to the listed agencies or
173.8instrumentalities of governments and political subdivisions, are exempt:
173.9(1) the United States and its agencies and instrumentalities;
173.10(2) school districts, local governments, the University of Minnesota, state universities,
173.11community colleges, technical colleges, state academies, the Perpich Minnesota Center for
173.12Arts Education, and an instrumentality of a political subdivision that is accredited as an
173.13optional/special function school by the North Central Association of Colleges and Schools;
173.14(3) hospitals and nursing homes owned and operated by political subdivisions of
173.15the state of tangible personal property and taxable services used at or by hospitals and
173.16nursing homes;
173.17(4) the Metropolitan Council, for its purchases of vehicles and repair parts to equip
173.18operations provided for in section473.4051 ;
173.19(5) other states or political subdivisions of other states, if the sale would be exempt
173.20from taxation if it occurred in that state; and
173.21(6) public libraries, public library systems, multicounty, multitype library systems as
173.22defined in section134.001 , county law libraries under chapter 134A, state agency libraries,
173.23the state library under section480.09 , and the Legislative Reference Library; and.
173.24(7) towns.
173.25(b) This exemption does not apply to the sales of the following products and services:
173.26(1) building, construction, or reconstruction materials purchased by a contractor
173.27or a subcontractor as a part of a lump-sum contract or similar type of contract with a
173.28guaranteed maximum price covering both labor and materials for use in the construction,
173.29alteration, or repair of a building or facility;
173.30(2) construction materials purchased by tax exempt entities or their contractors to
173.31be used in constructing buildings or facilities which will not be used principally by the
173.32tax exempt entities;
173.33(3) the leasing of a motor vehicle as defined in section297B.01, subdivision 11 ,
173.34except for leases entered into by the United States or its agencies or instrumentalities;
174.1(4) lodging as defined under section297A.61, subdivision 3 , paragraph (g), clause
174.2(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section
174.3297A.67, subdivision 2
, except for lodging, prepared food, candy, soft drinks, and alcoholic
174.4beverages purchased directly by the United States or its agencies or instrumentalities; or
174.5(5) goods or services purchased by atown local government as inputs to goods and
174.6services that are generally provided by a private business and the purchases would be
174.7taxable if made by a private business engaged in the same activity.
174.8(c) As used in this subdivision, "school districts" means public school entities and
174.9districts of every kind and nature organized under the laws of the state of Minnesota, and
174.10any instrumentality of a school district, as defined in section471.59 .
174.11(d) As used in this subdivision, "local governments" means cities, counties, and
174.12townships.
174.13(d) (e) As used in this subdivision, "goods or services generally provided by a private
174.14business" include, but are not limited to, goods or services provided by liquor stores, gas
174.15and electric utilities, golf courses, marinas, health and fitness centers, campgrounds, cafes,
174.16and laundromats. "Goods or services generally provided by a private business" do not
174.17include housing services, sewer and water services, wastewater treatment, ambulance and
174.18other public safety services, correctional services, chore or homemaking services provided
174.19to elderly or disabled individuals, or road and street maintenance or lighting.
174.20EFFECTIVE DATE.This section is effective for sales and purchases made after
174.21December 31, 2013.
174.22 Sec. 30. Minnesota Statutes 2012, section 297A.70, subdivision 4, is amended to read:
174.23 Subd. 4. Sales to nonprofit groups. (a) All sales, except those listed in paragraph
174.24(b), to the following "nonprofit organizations" are exempt:
174.25(1) a corporation, society, association, foundation, or institution organized and
174.26operated exclusively for charitable, religious, or educational purposes if the item
174.27purchased is used in the performance of charitable, religious, or educational functions; and
174.28(2) any senior citizen group or association of groups that:
174.29(i) in general limits membership to persons who are either age 55 or older, or
174.30physically disabled;
174.31(ii) is organized and operated exclusively for pleasure, recreation, and other
174.32nonprofit purposes, not including housing, no part of the net earnings of which inures to
174.33the benefit of any private shareholders; and
174.34(iii) is an exempt organization under section 501(c) of the Internal Revenue Code.
175.1For purposes of this subdivision, charitable purpose includes the maintenance of a
175.2cemetery owned by a religious organization.
175.3(b) This exemption does not apply to the following sales:
175.4(1) building, construction, or reconstruction materials purchased by a contractor
175.5or a subcontractor as a part of a lump-sum contract or similar type of contract with a
175.6guaranteed maximum price covering both labor and materials for use in the construction,
175.7alteration, or repair of a building or facility;
175.8(2) construction materials purchased by tax-exempt entities or their contractors to
175.9be used in constructing buildings or facilities that will not be used principally by the
175.10tax-exempt entities; and
175.11(3) lodging as defined under section297A.61, subdivision 3 , paragraph (g), clause
175.12(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section
175.13297A.67, subdivision 2
, except wine purchased by an established religious organization
175.14for sacramental purposes or as allowed under subdivision 9a; and
175.15(4) leasing of a motor vehicle as defined in section297B.01, subdivision 11 , except
175.16as provided in paragraph (c).
175.17(c) This exemption applies to the leasing of a motor vehicle as defined in section
175.18297B.01, subdivision 11
, only if the vehicle is:
175.19(1) a truck, as defined in section168.002 , a bus, as defined in section
168.002 , or a
175.20passenger automobile, as defined in section168.002 , if the automobile is designed and
175.21used for carrying more than nine persons including the driver; and
175.22(2) intended to be used primarily to transport tangible personal property or
175.23individuals, other than employees, to whom the organization provides service in
175.24performing its charitable, religious, or educational purpose.
175.25(d) A limited liability company also qualifies for exemption under this subdivision if
175.26(1) it consists of a sole member that would qualify for the exemption, and (2) the items
175.27purchased qualify for the exemption.
175.28EFFECTIVE DATE.This section is effective retroactively for sales and purchases
175.29made after June 30, 2012.
175.30 Sec. 31. Minnesota Statutes 2012, section 297A.70, subdivision 5, is amended to read:
175.31 Subd. 5. Veterans groups. Sales to an organization of military service veterans or
175.32an auxiliary unit of an organization of military service veterans are exempt if:
175.33(1) the organization or auxiliary unit is organized within the state of Minnesota
175.34and is exempt from federal taxation under section 501(c), clause (19), of the Internal
175.35Revenue Code; and
176.1(2) the tangible personal propertyis or services are for charitable, civic, educational,
176.2or nonprofit uses and not for social, recreational, pleasure, or profit uses.
176.3EFFECTIVE DATE.This section is effective for sales and purchases made after
176.4June 30, 2013.
176.5 Sec. 32. Minnesota Statutes 2012, section 297A.70, subdivision 7, is amended to read:
176.6 Subd. 7. Hospitalsand, outpatient surgical centers, and critical access dental
176.7providers. (a) Sales, except for those listed in paragraph(c) (d), to a hospital are exempt,
176.8if the items purchased are used in providing hospital services. For purposes of this
176.9subdivision, "hospital" means a hospital organized and operated for charitable purposes
176.10within the meaning of section 501(c)(3) of the Internal Revenue Code, and licensed under
176.11chapter 144 or by any other jurisdiction, and "hospital services" are services authorized or
176.12required to be performed by a "hospital" under chapter 144.
176.13 (b) Sales, except for those listed in paragraph(c) (d), to an outpatient surgical center
176.14are exempt, if the items purchased are used in providing outpatient surgical services. For
176.15purposes of this subdivision, "outpatient surgical center" means an outpatient surgical
176.16center organized and operated for charitable purposes within the meaning of section
176.17501(c)(3) of the Internal Revenue Code, and licensed under chapter 144 or by any other
176.18jurisdiction. For the purposes of this subdivision, "outpatient surgical services" means:
176.19(1) services authorized or required to be performed by an outpatient surgical center under
176.20chapter 144; and (2) urgent care. For purposes of this subdivision, "urgent care" means
176.21health services furnished to a person whose medical condition is sufficiently acute to
176.22require treatment unavailable through, or inappropriate to be provided by, a clinic or
176.23physician's office, but not so acute as to require treatment in a hospital emergency room.
176.24 (c) Sales, except for those listed in paragraph (d), to a critical access dental provider
176.25are exempt, if the items purchased are used in providing critical access dental care
176.26services. For the purposes of this subdivision, "critical access dental provider" means a
176.27dentist or dental clinic that qualifies under section 256B.76, subdivision 4, paragraph (b)
176.28and, in the previous calendar year, had no more than 15 percent of its patients covered by
176.29private dental insurance.
176.30 (d) This exemption does not apply to the following products and services:
176.31 (1) purchases made by a clinic, physician's office, or any other medical facility not
176.32operating as a hospitalor, outpatient surgical center, or critical access dental provider,
176.33even though the clinic, office, or facility may be owned and operated by a hospitalor,
176.34 outpatient surgical center, or critical access dental provider;
177.1 (2) sales under section297A.61, subdivision 3 , paragraph (g), clause (2), and
177.2prepared food, candy, and soft drinks;
177.3 (3) building and construction materials used in constructing buildings or facilities
177.4that will not be used principally by the hospitalor, outpatient surgical center, or critical
177.5access dental provider;
177.6 (4) building, construction, or reconstruction materials purchased by a contractor or a
177.7subcontractor as a part of a lump-sum contract or similar type of contract with a guaranteed
177.8maximum price covering both labor and materials for use in the construction, alteration, or
177.9repair of a hospitalor, outpatient surgical center, or critical access dental provider; or
177.10 (5) the leasing of a motor vehicle as defined in section297B.01, subdivision 11 .
177.11(d) (e) A limited liability company also qualifies for exemption under this
177.12subdivision if (1) it consists of a sole member that would qualify for the exemption, and
177.13(2) the items purchased qualify for the exemption.
177.14(e) (f) An entity that contains both a hospital and a nonprofit unit may claim this
177.15exemption on purchases made for both the hospital and nonprofit unit provided that:
177.16 (1) the nonprofit unit would have qualified for exemption under subdivision 4; and
177.17 (2) the items purchased would have qualified for the exemption.
177.18EFFECTIVE DATE.This section is effective retroactively for sales and purchases
177.19made after June 30, 2007. Purchasers may apply for a refund of tax paid for qualifying
177.20purchases under this subdivision made after June 30, 2007, and before July 1, 2013, in the
177.21manner provided in Minnesota Statutes, section 297A.75. Notwithstanding limitations
177.22on claims for refunds under Minnesota Statutes, section 297A.40, claims may be filed
177.23with the commissioner until June 30, 2014.
177.24 Sec. 33. Minnesota Statutes 2012, section 297A.70, is amended by adding a
177.25subdivision to read:
177.26 Subd. 9a. Established religious orders. (a) Sales of lodging, prepared food, candy,
177.27soft drinks, and alcoholic beverages at noncatered events between an established religious
177.28order and an affiliated institution of higher education are exempt.
177.29(b) For purposes of this subdivision, "established religious order" means an
177.30organization directly or indirectly under the control or supervision of a church or
177.31convention or association of churches, where members of the organization:
177.32(1) normally live together as part of a community;
177.33(2) make long-term commitments to live under a strict set of moral and spiritual
177.34rules; and
178.1(3) work or engage full time in a combination of prayer, religious study, church
178.2reform or renewal, or other religious, educational, or charitable goals of the organization.
178.3(c) For purposes of this subdivision, an institution of higher education is "affiliated"
178.4with an established religious order if members of the religious order are represented
178.5on the governing board of the institution of higher education and the two organization
178.6share campus space and common facilities.
178.7EFFECTIVE DATE.This section is effective retroactively for sales and purchases
178.8made after June 30, 2012.
178.9 Sec. 34. Minnesota Statutes 2012, section 297A.70, subdivision 13, is amended to read:
178.10 Subd. 13. Fund-raising sales by or for nonprofit groups. (a) The following
178.11sales by the specified organizations for fund-raising purposes are exempt, subject to the
178.12limitations listed in paragraph (b):
178.13(1) all sales made by a nonprofit organization that exists solely for the purpose of
178.14providing educational or social activities for young people primarily age 18 and under;
178.15(2) all sales made by an organization that is a senior citizen group or association of
178.16groups if (i) in general it limits membership to persons age 55 or older; (ii) it is organized
178.17and operated exclusively for pleasure, recreation, and other nonprofit purposes; and (iii)
178.18no part of its net earnings inures to the benefit of any private shareholders;
178.19(3) the sale or use of tickets or admissions to a golf tournament held in Minnesota if
178.20the beneficiary of the tournament's net proceeds qualifies as a tax-exempt organization
178.21under section 501(c)(3) of the Internal Revenue Code; and
178.22(4) sales of candy sold for fund-raising purposes by a nonprofit organization that
178.23provides educational and social activities primarily for young people age 18 and under.
178.24(b) The exemptions listed in paragraph (a) are limited in the following manner:
178.25(1) the exemption under paragraph (a), clauses (1) and (2), applies only if the gross
178.26annual receipts of the organization from fund-raising do not exceed $10,000; and
178.27(2) the exemption under paragraph (a), clause (1), does not apply if the sales are
178.28derived from admission charges or from activities for which the money must be deposited
178.29with the school district treasurer under section123B.49, subdivision 2 , or be recorded in
178.30the same manner as other revenues or expenditures of the school district under section
178.31123B.49, subdivision 4
.
178.32(c) Sales of tangible personal property and services are exempt if the entire proceeds,
178.33less the necessary expenses for obtaining the property or services, will be contributed to
178.34a registered combined charitable organization described in section43A.50 , to be used
178.35exclusively for charitable, religious, or educational purposes, and the registered combined
179.1charitable organization has given its written permission for the sale. Sales that occur over
179.2a period of more than 24 days per year are not exempt under this paragraph.
179.3(d) For purposes of this subdivision, a club, association, or other organization of
179.4elementary or secondary school students organized for the purpose of carrying on sports,
179.5educational, or other extracurricular activities is a separate organization from the school
179.6district or school for purposes of applying the $10,000 limit.
179.7EFFECTIVE DATE.This section is effective for sales and purchases made after
179.8June 30, 2013.
179.9 Sec. 35. Minnesota Statutes 2012, section 297A.70, subdivision 14, is amended to read:
179.10 Subd. 14. Fund-raising events sponsored by nonprofit groups. (a) Sales of
179.11tangible personal property or services at, and admission charges for fund-raising events
179.12sponsored by, a nonprofit organization are exempt if:
179.13(1) all gross receipts are recorded as such, in accordance with generally accepted
179.14accounting practices, on the books of the nonprofit organization; and
179.15(2) the entire proceeds, less the necessary expenses for the event, will be used solely
179.16and exclusively for charitable, religious, or educational purposes. Exempt sales include
179.17the sale of prepared food, candy, and soft drinks at the fund-raising event.
179.18(b) This exemption is limited in the following manner:
179.19(1) it does not apply to admission charges for events involving bingo or other
179.20gambling activities or to charges for use of amusement devices involving bingo or other
179.21gambling activities;
179.22(2) all gross receipts are taxable if the profits are not used solely and exclusively for
179.23charitable, religious, or educational purposes;
179.24(3) it does not apply unless the organization keeps a separate accounting record,
179.25including receipts and disbursements from each fund-raising event that documents all
179.26deductions from gross receipts with receipts and other records;
179.27(4) it does not apply to any sale made by or in the name of a nonprofit corporation as
179.28the active or passive agent of a person that is not a nonprofit corporation;
179.29(5) all gross receipts are taxable if fund-raising events exceed 24 days per year;
179.30(6) it does not apply to fund-raising events conducted on premises leased for more
179.31than five days but less than 30 days; and
179.32(7) it does not apply if the risk of the event is not borne by the nonprofit organization
179.33and the benefit to the nonprofit organization is less than the total amount of the state and
179.34local tax revenues forgone by this exemption.
180.1(c) For purposes of this subdivision, a "nonprofit organization" means any unit of
180.2government, corporation, society, association, foundation, or institution organized and
180.3operated for charitable, religious, educational, civic, fraternal, and senior citizens' or
180.4veterans' purposes, no part of the net earnings of which inures to the benefit of a private
180.5individual.
180.6EFFECTIVE DATE.This section is effective for sales and purchases made after
180.7June 30, 2013.
180.8 Sec. 36. Minnesota Statutes 2012, section 297A.70, is amended by adding a
180.9subdivision to read:
180.10 Subd. 18. Nursing homes and boarding care homes. (a) All sales, except those
180.11listed in paragraph (b), to a nursing home licensed under section 144A.02 or a boarding
180.12care home certified as a nursing facility under title 19 of the Social Security Act are
180.13exempt if the facility:
180.14(1) is exempt from federal income taxation pursuant to section 501(c)(3) of the
180.15Internal Revenue Code; and
180.16(2) is certified to participate in the medical assistance program under title 19 of the
180.17Social Security Act, or certifies to the commissioner that it does not discharge residents
180.18due to the inability to pay.
180.19(b) This exemption does not apply to the following sales:
180.20(1) building, construction, or reconstruction materials purchased by a contractor
180.21or a subcontractor as a part of a lump-sum contract or similar type of contract with a
180.22guaranteed maximum price covering both labor and materials for use in the construction,
180.23alteration, or repair of a building or facility;
180.24(2) construction materials purchased by tax-exempt entities or their contractors to
180.25be used in constructing buildings or facilities that will not be used principally by the
180.26tax-exempt entities;
180.27(3) lodging as defined under section297A.61, subdivision 3 , paragraph (g), clause
180.28(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section
180.29297A.67, subdivision 2 ; and
180.30(4) leasing of a motor vehicle as defined in section297B.01, subdivision 11 , except
180.31as provided in paragraph (c).
180.32(c) This exemption applies to the leasing of a motor vehicle as defined in section
180.33297B.01, subdivision 11 , only if the vehicle is:
181.1(1) a truck, as defined in section168.002 ; a bus, as defined in section
168.002 ; or a
181.2passenger automobile, as defined in section168.002 , if the automobile is designed and
181.3used for carrying more than nine persons including the driver; and
181.4(2) intended to be used primarily to transport tangible personal property or residents
181.5of the nursing home or boarding care home.
181.6EFFECTIVE DATE.This section is effective for sales and purchases made after
181.7June 30, 2013.
181.8 Sec. 37. Minnesota Statutes 2012, section 297A.71, is amended by adding a
181.9subdivision to read:
181.10 Subd. 45. Biopharmaceutical manufacturing facility. (a) Materials and
181.11supplies used or consumed in, capital equipment incorporated into, and privately
181.12owned infrastructure in support of the construction, improvement, or expansion of a
181.13biopharmaceutical manufacturing facility in the state are exempt if the following criteria
181.14are met:
181.15(1) the facility is used for the manufacturing of biologics;
181.16(2) the total capital investment made at the facility exceeds $50,000,000; and
181.17(3) the facility creates and maintains at least 190 full-time equivalent positions at the
181.18facility. These positions must be new jobs in Minnesota and not the result of relocating
181.19jobs that currently exist in Minnesota.
181.20(b) The tax must be imposed and collected as if the rate under section 297A.62
181.21applied, and refunded in the manner provided in section 297A.75.
181.22(c) To be eligible for a refund, the owner of the biopharmaceutical manufacturing
181.23facility must:
181.24(1) initially apply to the Department of Employment and Economic Development
181.25for certification no later than one year from the final completion date of construction,
181.26improvement, or expansion of the facility; and
181.27(2) for each year that the owner of the biopharmaceutical manufacturing facility
181.28applies for a refund, the owner must have received written certification from the
181.29Department of Employment and Economic Development that the facility has met the
181.30criteria of paragraph (a).
181.31(d) The refund is to be paid annually at a rate of 25 percent of the total allowable
181.32refund payable to date, with the commissioner making annual payments of the remaining
181.33refund until all of the refund has been paid.
181.34(e) For purposes of this subdivision, "biopharmaceutical" and "biologics" are
181.35interchangeable and mean medical drugs or medicinal preparations produced using
182.1technology that uses biological systems, living organisms or derivatives of living
182.2organisms, to make or modify products or processes for specific use. The medical drugs or
182.3medicinal preparations include but are not limited to proteins, antibodies, nucleic acids,
182.4and vaccines.
182.5EFFECTIVE DATE.This section is effective retroactively to capital investments
182.6made and jobs created after December 31, 2012, and effective retroactively for sales and
182.7purchases made after December 31, 2012, and before July 1, 2019.
182.8 Sec. 38. Minnesota Statutes 2012, section 297A.71, is amended by adding a
182.9subdivision to read:
182.10 Subd. 46. Research and development facility. Materials and supplies used or
182.11consumed in, and equipment incorporated into, the construction or improvement of a
182.12research and development facility that has laboratory space of at least 400,000 square feet
182.13and utilizes both high-intensity and low-intensity laboratories, provided that the project
182.14has a total construction cost of at least $140,000,000 within a 24-month period. The tax on
182.15purchases imposed under this subdivision must be imposed and collected as if the rate under
182.16section 297A.62 applied and then refunded in the manner provided in section 297A.75.
182.17EFFECTIVE DATE.This section is effective for sales and purchases made after
182.18June 30, 2013, and before September 1, 2015.
182.19 Sec. 39. Minnesota Statutes 2012, section 297A.71, is amended by adding a
182.20subdivision to read:
182.21 Subd. 47. Industrial measurement manufacturing and controls facility. (a)
182.22Materials and supplies used or consumed in, capital equipment incorporated into,
182.23fixtures installed in, and privately owned infrastructure in support of the construction,
182.24improvement, or expansion of an industrial measurement manufacturing and controls
182.25facility are exempt if:
182.26(1) the total capital investment made at the facility is at least $60,000,000;
182.27(2) the facility employs at least 250 full-time equivalent employees that are not
182.28employees currently employed by the company in the state; and
182.29(3) the Department of Employment and Economic Development determines that
182.30the expansion, remodeling, or improvement of the facility has a significant impact on
182.31the state economy.
183.1(b) The tax must be imposed and collected as if the rate under section 297A.62
183.2applied and refunded in the manner provided in section 297A.75, only after the following
183.3criteria are met:
183.4(1) a refund may not be issued until the owner of the facility has received
183.5certification from the Department of Employment and Economic Development that the
183.6company meets the requirements in paragraph (a); and
183.7(2) to receive the refund, the owner of the industrial measurement manufacturing
183.8and controls facility must initially apply to the Department of Employment and Economic
183.9Development for certification no later than one year from the final completion date of
183.10construction, improvement, or expansion of the industrial measurement manufacturing
183.11and controls facility.
183.12EFFECTIVE DATE.This section is effective for sales and purchases made after
183.13June 30, 2013, and before December 31, 2015.
183.14 Sec. 40. Minnesota Statutes 2012, section 297A.75, subdivision 1, is amended to read:
183.15 Subdivision 1. Tax collected. The tax on the gross receipts from the sale of the
183.16following exempt items must be imposed and collected as if the sale were taxable and the
183.17rate under section297A.62, subdivision 1 , applied. The exempt items include:
183.18(1) capital equipment exempt under section
297A.68, subdivision 5;
183.19(2) (1) building materials for an agricultural processing facility exempt under section
183.20297A.71, subdivision 13
;
183.21(3) (2) building materials for mineral production facilities exempt under section
183.22297A.71, subdivision 14
;
183.23(4) (3) building materials for correctional facilities under section
297A.71,
183.24subdivision 3 ;
183.25(5) (4) building materials used in a residence for disabled veterans exempt under
183.26section297A.71, subdivision 11 ;
183.27(6) (5) elevators and building materials exempt under section
297A.71, subdivision
183.2812 ;
183.29(7) (6) building materials for the Long Lake Conservation Center exempt under
183.30section297A.71, subdivision 17 ;
183.31(8) (7) materials and supplies for qualified low-income housing under section
183.32297A.71, subdivision 23
;
183.33(9) (8) materials, supplies, and equipment for municipal electric utility facilities
183.34under section297A.71, subdivision 35 ;
184.1(10) (9) equipment and materials used for the generation, transmission, and
184.2distribution of electrical energy and an aerial camera package exempt under section
184.3297A.68
, subdivision 37;
184.4(11) (10) commuter rail vehicle and repair parts under section
297A.70 , subdivision
184.53, paragraph (a), clause (10);
184.6(12) (11) materials, supplies, and equipment for construction or improvement of
184.7projects and facilities under section297A.71, subdivision 40 ;
184.8(13) (12) materials, supplies, and equipment for construction or improvement of a
184.9meat processing facility exempt under section297A.71, subdivision 41 ;
184.10(14) (13) materials, supplies, and equipment for construction, improvement, or
184.11expansion of:
184.12(i) an aerospace defense manufacturing facility exempt under section297A.71 ,
184.13subdivision 42;
184.14(ii) a biopharmaceutical manufacturing facility exempt under section 297A.71,
184.15subdivision 45;
184.16(iii) a research and development facility exempt under section 297A.71, subdivision
184.174b; and
184.18(iv) an industrial measurement manufacturing and controls facility exempt under
184.19section 297A.71, subdivision 47;
184.20(15) (14) enterprise information technology equipment and computer software for
184.21use in a qualified data center exempt under section297A.68, subdivision 42 ; and
184.22(16) (15) materials, supplies, and equipment for qualifying capital projects under
184.23section297A.71, subdivision 44 ;
184.24(16) items purchased for use in providing critical access dental services exempt
184.25under section 297A.70, subdivision 7, paragraph (c); and
184.26(17) items and services purchased under a business subsidy agreement for use or
184.27consumption primarily in greater Minnesota exempt under section 297A.68, subdivision 49.
184.28EFFECTIVE DATE.The change to clause (1) is effective for sales and purchases
184.29made after August 31, 2014. The changes in clauses (13), (16), and (17), are effective the
184.30day following final enactment.
184.31 Sec. 41. Minnesota Statutes 2012, section 297A.75, subdivision 2, is amended to read:
184.32 Subd. 2. Refund; eligible persons. Upon application on forms prescribed by the
184.33commissioner, a refund equal to the tax paid on the gross receipts of the exempt items
184.34must be paid to the applicant. Only the following persons may apply for the refund:
185.1 (1) for subdivision 1, clauses (1) to (3), (2), and (16), the applicant must be the
185.2purchaser;
185.3 (2) for subdivision 1, clauses(4) (3) and (7) (6), the applicant must be the
185.4governmental subdivision;
185.5 (3) for subdivision 1, clause(5) (4), the applicant must be the recipient of the
185.6benefits provided in United States Code, title 38, chapter 21;
185.7 (4) for subdivision 1, clause(6) (5), the applicant must be the owner of the
185.8homestead property;
185.9 (5) for subdivision 1, clause(8) (7), the owner of the qualified low-income housing
185.10project;
185.11 (6) for subdivision 1, clause(9) (8), the applicant must be a municipal electric utility
185.12or a joint venture of municipal electric utilities;
185.13 (7) for subdivision 1, clauses(10), (9), (12), (13), (14), and (15) and (17), the owner
185.14of the qualifying business; and
185.15 (8) for subdivision 1, clauses (10), (11),(12), and (16) (15), the applicant must be
185.16the governmental entity that owns or contracts for the project or facility.
185.17EFFECTIVE DATE.This section is effective the day following final enactment.
185.18 Sec. 42. Minnesota Statutes 2012, section 297A.75, subdivision 3, is amended to read:
185.19 Subd. 3. Application. (a) The application must include sufficient information
185.20to permit the commissioner to verify the tax paid. If the tax was paid by a contractor,
185.21subcontractor, or builder, under subdivision 1,clause (4), (5), (6), (7), (8), (9), (10), (11),
185.22(12), (13), (14), clauses (3) to (15), or (16) (17), the contractor, subcontractor, or builder
185.23must furnish to the refund applicant a statement including the cost of the exempt items and
185.24the taxes paid on the items unless otherwise specifically provided by this subdivision. The
185.25provisions of sections289A.40 and
289A.50 apply to refunds under this section.
185.26 (b) An applicant may not file more than two applications per calendar year for
185.27refunds for taxes paid on capital equipment exempt under section297A.68, subdivision 5 .
185.28 (c) Total refunds for purchases of items in section297A.71, subdivision 40 , must not
185.29exceed $5,000,000 in fiscal years 2010 and 2011. Applications for refunds for purchases
185.30of items in sections297A.70, subdivision 3 , paragraph (a), clause (11), and
297A.71 ,
185.31subdivision 40, must not be filed until after June 30, 2009.
185.32EFFECTIVE DATE.This section is effective the day following final enactment.
185.33 Sec. 43. Minnesota Statutes 2012, section 297A.99, subdivision 1, is amended to read:
186.1 Subdivision 1. Authorization; scope. (a) A political subdivision of this state may
186.2impose a general sales tax (1) under section297A.992 , (2) under section
297A.993 , (3) if
186.3permitted by special law, or (4) if the political subdivision enacted and imposed the tax
186.4before January 1, 1982, and its predecessor provision.
186.5 (b) This section governs the imposition of a general sales tax by the political
186.6subdivision. The provisions of this section preempt the provisions of any special law:
186.7 (1) enacted before June 2, 1997, or
186.8 (2) enacted on or after June 2, 1997, that does not explicitly exempt the special law
186.9provision from this section's rules by reference.
186.10 (c) This section does not apply to or preempt a sales tax on motor vehicles or a
186.11special excise tax on motor vehicles.
186.12(d) A political subdivision may not advertise or expend funds for the promotion of a
186.13referendum to support imposing a local option sales tax.
186.14(e) Notwithstanding paragraph (d), a political subdivision mayonly expend funds to:
186.15(1) conduct the referendum.;
186.16(2) disseminate information included in the resolution adopted under subdivision 2;
186.17(3) provide notice of, and conduct public forums at which proponents and opponents
186.18on the merits of the referendum are given equal time to express their opinions on the
186.19merits of the referendum;
186.20(4) provide facts and data on the impact of the proposed sales tax on consumer
186.21purchases; and
186.22(5) provide facts and data related to the programs and projects to be funded with
186.23the sales tax.
186.24EFFECTIVE DATE.This section is effective the day following final enactment.
186.25 Sec. 44. Laws 1993, chapter 375, article 9, section 46, subdivision 2, as amended by
186.26Laws 1997, chapter 231, article 7, section 40, Laws 1998, chapter 389, article 8, section
186.2730, Laws 2003, First Special Session chapter 21, article 8, section 13, Laws 2005, First
186.28Special Session chapter 3, article 5, section 26, and Laws 2009, chapter 88, article 4,
186.29section 15, is amended to read:
186.30 Subd. 2. Use of revenues. Revenues received from the tax authorized by subdivision
186.311 may only be used by the city to pay the cost of collecting the tax, and, except as provided in
186.32paragraph (e), to pay for the following projects or to secure or pay any principal, premium,
186.33or interest on bonds issued in accordance with subdivision 3 for the following projects.
186.34 (a) To pay all or a portion of the capital expenses of construction, equipment and
186.35acquisition costs for the expansion and remodeling of the St. Paul Civic Center complex,
187.1including the demolition of the existing arena and the construction and equipping of a
187.2new arena.
187.3 (b) Except as provided in paragraphs (e) and (f), the remainder of the funds must be
187.4spent for:
187.5 (1) capital projects to further residential, cultural, commercial, and economic
187.6development in both downtown St. Paul and St. Paul neighborhoods; and
187.7 (2) capital and operating expenses of cultural organizations in the city, provided
187.8that the amount spent under this clause must equal ten percent of the total amount spent
187.9under this paragraph in any year.
187.10 (c) The amount apportioned under paragraph (b) shall be no less than 60 percent
187.11of the revenues derived from the tax each year, except to the extent that a portion of that
187.12amount is required to pay debt service on (1) bonds issued for the purposes of paragraph (a)
187.13prior to March 1, 1998; or (2) bonds issued for the purposes of paragraph (a) after March 1,
187.141998, but only if the city council determines that 40 percent of the revenues derived from
187.15the tax together with other revenues pledged to the payment of the bonds, including the
187.16proceeds of definitive bonds, is expected to exceed the annual debt service on the bonds.
187.17 (d) If in any year more than 40 percent of the revenue derived from the tax authorized
187.18by subdivision 1 is used to pay debt service on the bonds issued for the purposes of
187.19paragraph (a) and to fund a reserve for the bonds, the amount of the debt service payment
187.20that exceeds 40 percent of the revenue must be determined for that year. In any year when
187.2140 percent of the revenue produced by the sales tax exceeds the amount required to pay
187.22debt service on the bonds and to fund a reserve for the bonds under paragraph (a), the
187.23amount of the excess must be made available for capital projects to further residential,
187.24cultural, commercial, and economic development in the neighborhoods and downtown
187.25until the cumulative amounts determined for all years under the preceding sentence have
187.26been made available under this sentence. The amount made available as reimbursement in
187.27the preceding sentence is not included in the 60 percent determined under paragraph (c).
187.28 (e)In each of calendar years 2006 to 2014, revenue not to exceed $3,500,000 may be
187.29used to pay the principal of bonds issued for capital projects of the city. After December
187.3031, 2014, revenue from the tax imposed under subdivision 1 may not be used for this
187.31purpose. If the amount necessary to meet obligations under paragraphs (a) and (d) are less
187.32than 40 percent of the revenue from the tax in any year, the city may place the difference
187.33between 40 percent of the revenue and the amounts allocated under paragraphs (a) and (d)
187.34in an economic development fund to be used for any economic development purposes.
187.35 (f) By January 15 of each year, the mayor and the city council must report to the
187.36legislature on the use of sales tax revenues during the preceding one-year period.
188.1EFFECTIVE DATE.This section is effective the day after compliance by the
188.2governing body of the city of St. Paul with Minnesota Statutes, section 645.021,
188.3subdivisions 2 and 3.
188.4 Sec. 45. Laws 1993, chapter 375, article 9, section 46, subdivision 5, as amended by
188.5Laws 1998, chapter 389, article 8, section 32, is amended to read:
188.6 Subd. 5. Expiration of taxing authority. The authority granted by subdivision 1 to
188.7the city to impose a sales tax shall expire on December 31,2030 2042, or at an earlier
188.8time as the city shall, by ordinance, determine. Any funds remaining after completion of
188.9projects approved under subdivision 2, paragraph (a) and retirement or redemption of any
188.10bonds or other obligations may be placed in the general fund of the city.
188.11EFFECTIVE DATE.This section is effective the day after compliance by the
188.12governing body of the city of St. Paul with Minnesota Statutes, section 645.021,
188.13subdivisions 2 and 3.
188.14 Sec. 46. Laws 2002, chapter 377, article 3, section 25, as amended by Laws 2009,
188.15chapter 88, article 4, section 19, and Laws 2010, chapter 389, article 5, section 3, is
188.16amended to read:
188.17 Sec. 25. ROCHESTER LODGING TAX.
188.18 Subdivision 1. Authorization. Notwithstanding Minnesota Statutes, section
188.19469.190
or
477A.016 , or any other law, the city of Rochester may impose an additional
188.20tax of one percent on the gross receipts from the furnishing for consideration of lodging at
188.21a hotel, motel, rooming house, tourist court, or resort, other than the renting or leasing of it
188.22for a continuous period of 30 days or more.
188.23 Subd. 1a. Authorization. Notwithstanding Minnesota Statutes, section469.190 or
188.24477A.016
, or any other law, and in addition to the tax authorized by subdivision 1, the city
188.25of Rochester may impose an additional tax ofone three percent on the gross receipts from
188.26the furnishing for consideration of lodging at a hotel, motel, rooming house, tourist court, or
188.27resort, other than the renting or leasing of it for a continuous period of 30 days or more only
188.28upon the approval of the city governing body of a total financial package for the project.
188.29 Subd. 2. Disposition of proceeds. (a) The gross proceeds from the tax imposed
188.30under subdivision 1 must be used by the city to fund a local convention or tourism bureau
188.31for the purpose of marketing and promoting the city as a tourist or convention center.
188.32(b) The gross proceeds from theone three percent tax imposed under subdivision
188.331a shall be used to pay for (1) design, construction, renovation, improvement, and
188.34expansion of the Mayo Civic Center Complex and related infrastructure, including but not
189.1limited to, skyway access, lighting, parking, or landscaping; and (2) for payment of any
189.2principal, interest, or premium on bonds issued to finance the construction, renovation,
189.3improvement, and expansion of the Mayo Civic Center Complex.
189.4 Subd. 2a. Bonds. The city of Rochester may issue, without an election, general
189.5obligation bonds of the city, in one or more series, in the aggregate principal amount not to
189.6exceed$43,500,000 $50,000,000, to pay for capital and administrative costs for the design,
189.7construction, renovation, improvement, and expansion of the Mayo Civic Center Complex,
189.8and related infrastructure, including but not limited to, skyway, access, lighting, parking,
189.9and landscaping. The city may pledge the lodging tax authorized by subdivision 1aand the
189.10food and beverage tax authorized under Laws 2009, chapter 88, article 4, section 23, to the
189.11payment of the bonds. The debt represented by the bonds is not included in computing any
189.12debt limitations applicable to the city, and the levy of taxes required by Minnesota Statutes,
189.13section475.61 , to pay the principal of and interest on the bonds is not subject to any levy
189.14limitation or included in computing or applying any levy limitation applicable to the city.
189.15 Subd. 3. Expiration of taxing authority.The authority of the city to impose a tax
189.16under subdivision 1a shall expire when the principal and interest on any bonds or other
189.17obligations issued prior to December 31, 2014, to finance the construction, renovation,
189.18improvement, and expansion of the Mayo Civic Center Complex and related skyway
189.19access, lighting, parking, or landscaping have been paid, including any bonds issued to
189.20refund such bonds, or at an earlier time as the city shall, by ordinance, determine. Any
189.21funds remaining after completion of the project and retirement or redemption of the bonds
189.22shall be placed in the general fund of the city. The city may, by ordinance, repeal the
189.23tax provided that:
189.24(1) the revenues raised before the repeal are sufficient to meet all bond or other
189.25obligations backed by revenues of the tax; and
189.26(2) the repeal date meets the requirements of section 297A.99, subdivision 12.
189.27EFFECTIVE DATE.This section is effective the day after the governing body of
189.28the city of Rochester and its chief fiscal officer comply with Minnesota Statutes, section
189.29645.021, subdivisions 2 and 3.
189.30 Sec. 47. Laws 2005, First Special Session chapter 3, article 5, section 37, subdivision
189.312, is amended to read:
189.32 Subd. 2. Use of revenues. (a) Revenues received from the tax authorized by
189.33subdivision 1 by the city of St. Cloud must be used for the cost of collecting and
189.34administering the tax and to pay all or part of the capital or administrative costs of the
189.35development, acquisition, construction, improvement, and securing and paying debt
190.1service on bonds or other obligations issued to finance the following regional projects as
190.2approved by the voters and specifically detailed in the referendum authorizing the tax or
190.3extending the tax:
190.4 (1) St. Cloud Regional Airport;
190.5 (2) regional transportation improvements;
190.6 (3) regional community and aquatics centers;
190.7 (4) regional public libraries; and
190.8 (5) acquisition and improvement of regional park land and open space.
190.9 (b) Revenues received from the tax authorized by subdivision 1 by the cities of St.
190.10Joseph, Waite Park, Sartell, Sauk Rapids, and St. Augusta must be used for the cost of
190.11collecting and administering the tax and to pay all or part of the capital or administrative
190.12costs of the development, acquisition, construction, improvement, and securing and paying
190.13debt service on bonds or other obligations issued to fund the projects specifically approved
190.14by the voters at the referendum authorizing the tax or extending the tax. The portion of
190.15revenues from the city going to fund the regional airport or regional library located in the
190.16city of St. Cloud will be as required under the applicable joint powers agreement.
190.17 (c) The use of revenues received from the taxes authorized in subdivision 1 for
190.18projects allowed under paragraphs (a) and (b) are limited to the amount authorized for
190.19each project under the enabling referendum.
190.20EFFECTIVE DATE.This section is effective for the city that approves them the
190.21day after compliance by the governing body of each city with Minnesota Statutes, section
190.22645.021, subdivision 3.
190.23 Sec. 48. Laws 2005, First Special Session chapter 3, article 5, section 37, subdivision
190.244, is amended to read:
190.25 Subd. 4. Termination of tax. The tax imposed in the cities of St. Joseph, St.
190.26Cloud, St. Augusta, Sartell, Sauk Rapids, and Waite Park under subdivision 1 expires
190.27when the city council determines that sufficient funds have been collected from the tax
190.28to retire or redeem the bonds and obligations authorized under subdivision 2, paragraph
190.29(a), but no later than December 31, 2018. Notwithstanding Minnesota Statutes, section
190.30297A.99, subdivision 3, paragraphs (a), (c), and (d), a city may extend the tax imposed
190.31under subdivision 1 through December 31, 2038, if approved by voters of the city no later
190.32than November 7, 2017, at either a general election or at a special election held on a first
190.33Tuesday after a first Monday in November.
191.1EFFECTIVE DATE.This section is effective for the city that approves them the
191.2day after compliance by the governing body of each city with Minnesota Statutes, section
191.3645.021, subdivision 3.
191.4 Sec. 49. Laws 2008, chapter 366, article 7, section 19, subdivision 3, as amended by
191.5Laws 2011, First Special Session chapter 7, article 4, section 8, is amended to read:
191.6 Subd. 3. Use of revenues. Notwithstanding Minnesota Statutes, section297A.99,
191.7subdivision 3 , paragraph (b), the proceeds of the tax imposed under this section shall be
191.8used to pay for the costs of improvements to the Sportsman Park/Ballfields, Riverside
191.9Park, Lions Park/Pavilion, Cedar South Park also known as Eldorado Park, and Spring
191.10Street Park; improvements to and extension of the River County Bike Trail; acquisition,
191.11 and construction, improvement, and development of regional parks, bicycle trails, park
191.12land, open space, and of a pedestrian walkways, as described in the city improvement
191.13plan adopted by the city council by resolution on December 12, 2006, and walkway
191.14over Interstate 94 and State Highway 24; and the acquisition of land and construction of
191.15buildings for a community and recreation center. The total amount of revenues from the
191.16taxes in subdivisions 1 and 2 that may be used to fund these projects is $12,000,000
191.17plus any associated bond costs.
191.18EFFECTIVE DATE.This section is effective the day after compliance by the
191.19governing body of the city of Clearwater with Minnesota Statutes, section 645.021,
191.20subdivisions 2 and 3.
191.21 Sec. 50. Laws 2010, chapter 389, article 5, section 6, subdivision 6, is amended to read:
191.22 Subd. 6. Use of food and beverages tax. The revenues derived from the tax
191.23imposed under subdivision 5 must be used by the city of Marshall to pay the costs of
191.24collecting and administering the food and beverages tax, to pay all or part of the operating
191.25costs of the new and existing facilities of the Minnesota Emergency Response and
191.26Industry Training Center, including the payment of debt service on bonds issued under
191.27subdivision 2, and to pay all or part of the operating costs of the facilities of the Southwest
191.28Minnesota Regional Amateur Sports Center, including the payment of debt service on
191.29bonds issued under subdivision 2. Authorized expenses for each organization include,
191.30but are not limited to, acquiring property; predesign; design; and paying construction,
191.31furnishing, and equipment costs related to these facilities and paying debt service on
191.32bonds or other obligations issued by the city.
191.33EFFECTIVE DATE.This section is effective the day following final enactment.
192.1 Sec. 51. CITY OF MARSHALL; VALIDATION OF PRIOR ACT.
192.2 (a) Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city
192.3of Marshall may approve Laws 2010, chapter 389, article 5, section 6, as amended by
192.4Laws 201l, First Special Session chapter 7, article 4, section 9, and file its approval with
192.5the secretary of state by June 15, 2013. If approved as authorized under this paragraph,
192.6actions undertaken by the city pursuant to the approval of the voters on November 6, 2012,
192.7and otherwise in accordance with Laws 2010, chapter 389, article 5, section 6, as amended
192.8by Laws 201l, First Special Session chapter 7, article 4, section 9, are validated.
192.9 (b) Notwithstanding the time limit on the imposition of tax under Laws 2010,
192.10chapter 389, article 5, section 6, subdivision 1, as amended by Laws 201l, First Special
192.11Session chapter 7, article 4, section 9, and subject to local approval under paragraph (a),
192.12the city of Marshall may impose the tax on or before July 1, 2013.
192.13EFFECTIVE DATE.This section is effective the day following final enactment.
192.14 Sec. 52. CITY OF PROCTOR; VALIDATION OF PRIOR ACT.
192.15 Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city of
192.16Proctor may approve, by resolution, Laws 2008, chapter 366, article 7, section 13, and
192.17Laws 2010, chapter 389, article 5, sections 1 and 2, and file its approval with the secretary
192.18of state by January 1, 2014. If approved under this paragraph, actions undertaken by
192.19the city pursuant to the approval of the voters on November 2, 2010, and otherwise in
192.20accordance with those laws are validated.
192.21EFFECTIVE DATE.This section is effective the day following final enactment.
192.22 Sec. 53. REPEALER.
192.23(a) Minnesota Statutes 2012, sections 297A.61, subdivision 27; and 297A.68,
192.24subdivision 35, are repealed.
192.25(b) Laws 2009, chapter 88, article 4, section 23, as amended by Laws 2010, chapter
192.26389, article 5, section 4, is repealed.
192.27EFFECTIVE DATE.Paragraph (a) is effective for sales and purchases made after
192.28June 30, 2013. Paragraph (b) is effective the day following final enactment.
192.31 Section 1. Minnesota Statutes 2012, section 469.071, subdivision 5, is amended to read:
193.1 Subd. 5. Exception; parking facilities. Notwithstanding section469.068 , the
193.2Bloomington port authority need not require competitive bidding with respect to a
193.3structured parking facility or other public improvements constructed in conjunction with,
193.4and directly above or below, or adjacent and integrally related to, a development and
193.5financed with the proceeds of tax incrementor, revenue bonds, or other funds of the
193.6port authority and the city of Bloomington.
193.7EFFECTIVE DATE.This section is effective upon compliance of the governing
193.8body of the city of Bloomington with the requirements of Minnesota Statutes, section
193.9645.021, subdivision 3.
193.10 Sec. 2. Minnesota Statutes 2012, section 469.169, is amended by adding a subdivision
193.11to read:
193.12 Subd. 19. Additional border city allocation; 2013. (a) In addition to the tax
193.13reductions authorized in subdivisions 12 to 18, the commissioner shall allocate $750,000
193.14for tax reductions to border city enterprise zones in cities located on the western border
193.15of the state. The commissioner shall allocate this amount among cities on a per capita
193.16basis. Allocations made under this subdivision may be used for tax reductions under
193.17section 469.171, or for other offsets of taxes imposed on or remitted by businesses located
193.18in the enterprise zone, but only if the municipality determines that the granting of the tax
193.19reduction or offset is necessary to retain a business within or attract a business to the zone.
193.20The city alternatively may elect to use any portion of the allocation under this paragraph
193.21for tax reductions under section 469.1732 or 469.1734.
193.22 (b) The commissioner shall allocate $750,000 for tax reductions under section
193.23469.1732 or 469.1734 to cities with border city enterprise zones located on the western
193.24border of the state. The commissioner shall allocate this amount among the cities on a per
193.25capita basis. The city alternatively may elect to use any portion of the allocation provided
193.26in this paragraph for tax reductions under section 469.171.
193.27EFFECTIVE DATE.This section is effective July 1, 2013.
193.28 Sec. 3. Minnesota Statutes 2012, section 469.176, subdivision 4c, is amended to read:
193.29 Subd. 4c. Economic development districts. (a) Revenue derived from tax increment
193.30from an economic development district may not be used to provide improvements, loans,
193.31subsidies, grants, interest rate subsidies, or assistance in any form to developments
193.32consisting of buildings and ancillary facilities, if more than 15 percent of the buildings and
193.33facilities (determined on the basis of square footage) are used for a purpose other than:
194.1 (1) the manufacturing or production of tangible personal property, including
194.2processing resulting in the change in condition of the property;
194.3 (2) warehousing, storage, and distribution of tangible personal property, excluding
194.4retail sales;
194.5 (3) research and development related to the activities listed in clause (1) or (2);
194.6 (4) telemarketing if that activity is the exclusive use of the property;
194.7 (5) tourism facilities; or
194.8 (6)qualified border retail facilities; or
194.9(7) space necessary for and related to the activities listed in clauses (1) to (6) (5).
194.10 (b) Notwithstanding the provisions of this subdivision, revenues derived from tax
194.11increment from an economic development district may be used to provide improvements,
194.12loans, subsidies, grants, interest rate subsidies, or assistance in any form for up to 15,000
194.13square feet of any separately owned commercial facility located within the municipal
194.14jurisdiction of a small city, if the revenues derived from increments are spent only to
194.15assist the facility directly or for administrative expenses, the assistance is necessary to
194.16develop the facility, and all of the increments, except those for administrative expenses,
194.17are spent only for activities within the district.
194.18 (c) A city is a small city for purposes of this subdivision if the city was a small city
194.19in the year in which the request for certification was made and applies for the rest of
194.20the duration of the district, regardless of whether the city qualifies or ceases to qualify
194.21as a small city.
194.22(d) Notwithstanding the requirements of paragraph (a) and the finding requirements
194.23of section
469.174, subdivision 12, tax increments from an economic development district
194.24may be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or
194.25assistance in any form to developments consisting of buildings and ancillary facilities, if
194.26all the following conditions are met:
194.27(1) the municipality finds that the project will create or retain jobs in this state,
194.28including construction jobs, and that construction of the project would not have
194.29commenced before July 1, 2012, without the authority providing assistance under the
194.30provisions of this paragraph;
194.31(2) construction of the project begins no later than July 1, 2012;
194.32(3) the request for certification of the district is made no later than June 30, 2012; and
194.33(4) for development of housing under this paragraph, the construction must begin
194.34before January 1, 2012.
195.1The provisions of this paragraph may not be used to assist housing that is developed
195.2to qualify under section
469.1761, subdivision 2 or 3, or similar requirements of other law,
195.3if construction of the project begins later than July 1, 2011.
195.4EFFECTIVE DATE.This section is effective for districts for which the request for
195.5certification was made after June 30, 2012.
195.6 Sec. 4. Minnesota Statutes 2012, section 469.176, subdivision 4g, is amended to read:
195.7 Subd. 4g. General government use prohibited. (a) Tax increments may not be
195.8used to circumvent existing levy limit law.
195.9 (b) No tax increment from any district may be used for the acquisition, construction,
195.10renovation, operation, or maintenance of a building to be used primarily and regularly
195.11for conducting the business of a municipality, county, school district, or any other local
195.12unit of government or the state or federal government. This provision does not prohibit
195.13the use of revenues derived from tax increments for the construction or renovation of
195.14a parking structure.
195.15(c)(1) Tax increments may not be used to pay for the cost of public improvements,
195.16equipment, or other items, if:
195.17(i) the improvements, equipment, or other items are located outside of the area of the
195.18tax increment financing district from which the increments were collected; and
195.19(ii) the improvements, equipment, or items that (A) primarily serve a decorative or
195.20aesthetic purpose, or (B) serve a functional purpose, but their cost is increased by more than
195.21100 percent as a result of the selection of materials, design, or type as compared with more
195.22commonly used materials, designs, or types for similar improvements, equipment, or items.
195.23(2) The provisions of this paragraph do not apply to expenditures related to the
195.24rehabilitation of historic structures that are:
195.25(i) individually listed on the National Register of Historic Places; or
195.26(ii) a contributing element to a historic district listed on the National Register
195.27of Historic Places.
195.28EFFECTIVE DATE.This section is effective the day following final enactment for
195.29all tax increment financing districts, regardless of when the request for certification was
195.30made, but applies only to amounts spent after final enactment.
195.31 Sec. 5. Minnesota Statutes 2012, section 469.176, subdivision 6, is amended to read:
195.32 Subd. 6. Action required. (a) If, after four years from the date of certification of
195.33the original net tax capacity of the tax increment financing district pursuant to section
196.1469.177
, no demolition, rehabilitation, or renovation of property or other site preparation,
196.2including qualified improvement of a street adjacent to a parcel but not installation
196.3of utility service including sewer or water systems, has been commenced on a parcel
196.4located within a tax increment financing district by the authority or by the owner of the
196.5parcel in accordance with the tax increment financing plan, no additional tax increment
196.6may be taken from that parcel, and the original net tax capacity of that parcel shall be
196.7excluded from the original net tax capacity of the tax increment financing district. If the
196.8authority or the owner of the parcel subsequently commences demolition, rehabilitation,
196.9or renovation or other site preparation on that parcel including qualified improvement of
196.10a street adjacent to that parcel, in accordance with the tax increment financing plan, the
196.11authority shall certify to the county auditor that the activity has commenced, and the
196.12county auditor shall certify the net tax capacity thereof as most recently certified by the
196.13commissioner of revenue and add it to the original net tax capacity of the tax increment
196.14financing district. The county auditor must enforce the provisions of this subdivision. The
196.15authority must submit to the county auditor evidence that the required activity has taken
196.16place for each parcel in the district. The evidence for a parcel must be submitted by
196.17February 1 of the fifth year following the year in which the parcel was certified as included
196.18in the district. For purposes of this subdivision, qualified improvements of a street are
196.19limited to (1) construction or opening of a new street, (2) relocation of a street, and (3)
196.20substantial reconstruction or rebuilding of an existing street.
196.21(b) For districts which were certified on or after January 1, 2005, and before April
196.2220, 2009, the four-year period under paragraph (a) isincreased to six years deemed to end
196.23on December 31, 2016.
196.24EFFECTIVE DATE.This section is effective the day following final enactment
196.25and applies to districts certified on or after January 1, 2005, and before April 20, 2009.
196.26 Sec. 6. Minnesota Statutes 2012, section 469.177, subdivision 1a, is amended to read:
196.27 Subd. 1a. Original local tax rate. At the time of the initial certification of the
196.28original net tax capacity for a tax increment financing district or a subdistrict, the county
196.29auditor shall certify the original local tax rate that applies to the district or subdistrict. The
196.30original local tax rate is the sum of all the local tax rates, excluding that portion of the
196.31school rate attributable to the general education levy under section 126C.13, that apply
196.32to a property in the district or subdistrict. The local tax rate to be certified is the rate in
196.33effect for the same taxes payable year applicable to the tax capacity values certified as
196.34the district's or subdistrict's original tax capacity. The resulting tax capacity rate is the
196.35original local tax rate for the life of the district or subdistrict.
197.1EFFECTIVE DATE.This section is effective for districts for which the request for
197.2certification is made after April 15, 2013.
197.3 Sec. 7. Minnesota Statutes 2012, section 469.177, is amended by adding a subdivision
197.4to read:
197.5 Subd. 1d. Original net tax capacity adjustment; homestead market value
197.6exclusion. (a) Upon approval by the municipality, by resolution, the authority may elect to
197.7reduce the original net tax capacity of a qualified district by the amount of the tax capacity
197.8attributable to the market value exclusion under section 273.13, subdivision 35, for taxes
197.9payable in the year preceding the election. The amount of the reduction may not reduce
197.10the original net tax capacity below zero.
197.11 (b) For purposes of this subdivision, a qualified district means a tax increment
197.12financing district that satisfies the following conditions:
197.13 (1) for taxes payable in 2011, the authority received a homestead market value credit
197.14reimbursement under section 273.1384 for the district of $10,000 or more;
197.15 (2) for taxes payable in 2013, the reduction in captured tax capacity resulting from
197.16the market value exclusion for the district was equal to or greater than 1.75 percent of the
197.17district's captured tax capacity; and
197.18 (3) either (i) the authority is permitted to expend increments on activities under the
197.19provisions of section 469.1763, subdivision 3, or an equivalent provision of special law
197.20on July 1, 2013, or (ii) the district's tax increments received for taxes payable in 2012
197.21exceeded the amount of debt service payments due during calendar year 2012 on bonds
197.22issued under section 469.178 to which the district's increments are pledged.
197.23The calculation of the amount under clause (2) must reflect any adjustments to original
197.24net tax capacity made under subdivision 1, paragraphs (d) and (e), for the homestead
197.25market value exclusion.
197.26 (c) The authority must notify the county auditor of its election under this section no
197.27later than July 1, 2014. Notifications made by July 1, 2013, are effective beginning for
197.28taxes payable in 2014, and notifications made after July 1, 2013, are effective beginning
197.29for taxes payable in 2015.
197.30EFFECTIVE DATE.This section is effective the day following final enactment
197.31and applies to all tax increment financing districts regardless of when the request for
197.32certification was made.
197.33 Sec. 8. Minnesota Statutes 2012, section 469.177, is amended by adding a subdivision
197.34to read:
198.1 Subd. 1e. Adjustments; qualifying districts. (a) For any tax increment financing
198.2district that satisfies the requirements of paragraph (b), the original net tax capacity must
198.3be reduced by the full amount of the original net tax capacity or $20,000, whichever is less.
198.4 (b) A tax increment financing district qualifies under this subdivision if it satisfies
198.5the following conditions:
198.6 (1) the district was certified after January 1, 2011, and before January 1, 2012;
198.7 (2) for assessment year 2012, at least 75 percent of the tax capacity of the district
198.8is class 4d property; and
198.9 (3) for assessment year 2012, the average estimated market value is over $115,000
198.10per housing unit for the portion of the property that is class 4d.
198.11(c) An authority or a property owner within a tax increment financing district must
198.12notify the county assessor of a district that qualifies under this subdivision by July 1, 2013.
198.13(d) This subdivision expires on December 31, 2021.
198.14EFFECTIVE DATE.This section is effective beginning for taxes payable in 2014.
198.15 Sec. 9. Minnesota Statutes 2012, section 469.177, subdivision 9, is amended to read:
198.16 Subd. 9. Distributions of excess taxes on captured net tax capacity. (a) If the
198.17amount of tax paid on captured net tax capacity exceeds the amount of tax increment,
198.18the county auditor shall distribute the excess, except increment attributable to the
198.19general education levy, to the municipality, county, and school district as follows: each
198.20governmental unit's share of the excess equals
198.21(1) the total amount of the excess for the tax increment financing district, multiplied by
198.22(2) a fraction, the numerator of which is the current local tax rate of the governmental
198.23unit less the governmental unit's local tax rate for the year the original local tax rate for the
198.24district was certified (in no case may this amount be less than zero) and the denominator
198.25of which is the sum of the numerators for the municipality, county, and school district.
198.26If the entire increase in the local tax rate is attributable to a taxing district, other than
198.27the municipality, county, or school district, then the excess must be distributed to the
198.28municipality, county, and school district in proportion to their respective local tax rates.
198.29(b) The amounts distributed shall be deducted in computing the levy limits of the
198.30taxing district for the succeeding taxable year.
198.31(c) In the case of distributions to a school district, the county auditor shall report
198.32amounts distributed to the commissioner of education in the same manner as provided
198.33for excess increments under section469.176, subdivision 2 , and the distribution shall be
198.34deducted from the school district's state aid payments and levy limitation according to
198.35section127A.49, subdivision 3 .
199.1(d) The amount of taxes attributable to imposing the general education levy under
199.2section 126C.13 must be returned to the school district within which the tax increment
199.3financing district is located.
199.4EFFECTIVE DATE.This section is effective for districts for which the request for
199.5certification is made after April 15, 2013.
199.6 Sec. 10. Minnesota Statutes 2012, section 473F.08, is amended by adding a subdivision
199.7to read:
199.8 Subd. 3c. Mall of America. (a) When computing the net tax capacity under section
199.9473F.05, the Hennepin County auditor shall exclude the captured tax capacity of Tax
199.10Increment Financing Districts No. 1-C and No. 1-G in the city of Bloomington.
199.11 (b) Notwithstanding the provisions of subdivision 2, paragraph (a), the
199.12commercial-industrial contribution percentage for the city of Bloomington is the
199.13contribution net tax capacity divided by the total net tax capacity of commercial-industrial
199.14property in the city, excluding any commercial-industrial property that is captured tax
199.15capacity of Tax Increment Financing Districts No. 1-C and No. 1-G.
199.16 (c) The property taxes to be paid on commercial-industrial tax capacity that is
199.17included in the captured tax capacity of Tax Increment Financing Districts No. 1-C and
199.18No. 1-G in the city of Bloomington must be determined as described in subdivision 6,
199.19except that the portion of the tax that is based on the areawide tax rate is to be treated
199.20as tax increment under section 469.176.
199.21 (d) The provisions of this subdivision take effect only if the clerk of the city of
199.22Bloomington certifies to the Hennepin County auditor that the city has entered into a
199.23binding written agreement with the Metropolitan Council to repair and restore, or to
199.24replace, the old Cedar Avenue bridge for use by bicycle commuters and recreational users.
199.25 (e) This subdivision expires on the earliest of the following dates:
199.26 (1) when the tax increment financing districts have been decertified in 2024 or 2035,
199.27as provided by section 22, subdivision 2 or 4; or
199.28 (2) on January 1, 2014, if the city clerk fails to make the certification provided in
199.29paragraph (d) or if the city fails to file its local approval of section 23 with the secretary
199.30of state by December 31, 2013.
199.31EFFECTIVE DATE.This section is effective beginning for property taxes payable
199.32in 2014.
199.33 Sec. 11. Laws 2008, chapter 366, article 5, section 26, is amended to read:
200.1 Sec. 26. BLOOMINGTON TAX INCREMENT FINANCING; FIVE-YEAR
200.2RULE.
200.3 (a) The requirements of Minnesota Statutes, section469.1763, subdivision 3 , that
200.4activities must be undertaken within a five-year period from the date of certification of
200.5a tax increment financing district, are increased to aten-year 15-year period for the
200.6Port Authority of the City of Bloomington's Tax Increment Financing District No. 1-I,
200.7Bloomington Central Station.
200.8 (b) Notwithstanding the provisions of Minnesota Statutes, section 469.176, or any
200.9other law to the contrary, the city of Bloomington and its port authority may extend the
200.10duration limits of the district for a period through December 31, 2039.
200.11 (c) Effective for taxes payable in 2014, tax increment for the district must be
200.12computed using the current local tax rate, notwithstanding the provisions of Minnesota
200.13Statutes, section 469.177, subdivision 1a.
200.14EFFECTIVE DATE.Paragraphs (a) and (c) are effective upon compliance by
200.15the governing body of the city of Bloomington with the requirements of Minnesota
200.16Statutes, section 645.021, subdivision 3. Paragraph (b) is effective upon compliance by
200.17the governing bodies of the city of Bloomington, Hennepin County, and Independent
200.18School District No. 271 with the requirements of Minnesota Statutes, sections 469.1782,
200.19subdivision 2, and 645.021, subdivision 3.
200.20 Sec. 12. Laws 2008, chapter 366, article 5, section 34, as amended by Laws 2009,
200.21chapter 88, article 5, section 11, is amended to read:
200.22 Sec. 34. CITY OF OAKDALE;ORIGINAL TAX CAPACITY PARCELS
200.23DEEMED OCCUPIED.
200.24(a) The provisions of this section apply to redevelopment tax increment financing
200.25districts created by the Housing and Redevelopment Authority in and for the city of
200.26Oakdale in the areas comprised of the parcels with the following parcel identification
200.27numbers: (1) 3102921320053; 3102921320054; 3102921320055; 3102921320056;
200.283102921320057; 3102921320058; 3102921320062; 3102921320063; 3102921320059;
200.293102921320060; 3102921320061; 3102921330005; and 3102921330004; and (2)
200.302902921330001 and 2902921330005.
200.31(b) For a district subject to this section, the Housing and Redevelopment Authority
200.32may, when requesting certification of the original tax capacity of the district under
200.33Minnesota Statutes, section
469.177, elect to have the original tax capacity of the district
200.34be certified as the tax capacity of the land.
201.1(c) The authority to request certification of a district under this section expires on
201.2July 1, 2013.
201.3 (a) Parcel numbers 3102921320054, 3102921320055, 3102921320056,
201.43102921320057, 3102921320061, and 3102921330004 are deemed to meet the
201.5requirements of Minnesota Statutes, section 469.174, subdivision 10, paragraph (d),
201.6notwithstanding any contrary provisions of that paragraph, if the following conditions
201.7are met:
201.8 (1) a building located on any part of each of the specified parcels was demolished after
201.9the Housing and Redevelopment Authority for the city of Oakdale adopted a resolution
201.10under Minnesota Statutes, section 469.174, subdivision 10, paragraph (d), clause (3);
201.11 (2) the building was removed either by the authority, by a developer under a
201.12development agreement with the Housing and Redevelopment Authority for the city of
201.13Oakdale, or by the owner of the property without entering into a development agreement
201.14with the Housing and Redevelopment Authority for the city of Oakdale; and
201.15 (3) the request for certification of the parcel as part of a district is filed with the
201.16county auditor by December 31, 2017.
201.17 (b) The provisions of this section allow an election by the Housing and
201.18Redevelopment Authority for the city of Oakdale for the parcels deemed occupied under
201.19paragraph (a), notwithstanding the provisions of Minnesota Statutes, sections 469.174,
201.20subdivision 10, paragraph (d), and 469.177, subdivision 1, paragraph (f).
201.21 (c) The city may elect, in the tax increment financing plan, to collect increment from
201.22a redevelopment district created under the provisions of this section for an additional ten
201.23years beyond the limit in Minnesota Statutes, section 469.176, subdivision 1b.
201.24EFFECTIVE DATE.This section is effective upon compliance by the governing
201.25body of the city of Oakdale with the requirements of Minnesota Statutes, section 645.021,
201.26subdivision 3, except that the provisions of paragraph (c) are effective only upon
201.27compliance with Minnesota Statutes, section 469.1782, subdivision 2, by Ramsey County
201.28and Independent School District No. 622.
201.29 Sec. 13. Laws 2010, chapter 216, section 55, is amended to read:
201.30 Sec. 55. OAKDALE; TAX INCREMENT FINANCING DISTRICT.
201.31 Subdivision 1. Duration of district. Notwithstanding the provisions of Minnesota
201.32Statutes, section469.176, subdivision 1b , the city of Oakdale may collect tax increments
201.33from Tax Increment Financing District No. 6 (Bergen Plaza) through December 31,2024
201.34 2040, subject to the conditions described in subdivision 2.
202.1 Subd. 2. Conditions for extension. (a) Subdivision 1 applies only if the following
202.2conditions are met:
202.3 (1) by July 1, 2011, the city of Oakdale has entered into a development agreement
202.4with a private developer for development or redevelopment of all or a substantial part of
202.5thearea parcels described in clause (2); and
202.6 (2) by November 1, 2011, the city of Oakdale or a private developer commences
202.7construction of streets, traffic improvements, water, sewer, or related infrastructure that
202.8serves one or both of the parcels with the following parcel identification numbers:
202.92902921330001 and 2902921330005. For the purposes of this section, construction
202.10commences upon grading or other visible improvements that are part of the subject
202.11infrastructure.
202.12 (b) All tax increments received by the city of Oakdale under subdivision 1 after
202.13December 31, 2016, must be used only to pay costs that are both:
202.14 (1) related to redevelopment of the parcels specified in this subdivision or
202.15parcel numbers 3102921320053, 3102921320054, 3102921320055, 3102921320056,
202.163102921320057, 3102921320058, 3102921320059, 3102921320060, 3102921320061,
202.173102921320062, 3102921320063, 3102921330004, and 3102921330005, including,
202.18without limitation, anyof the infrastructure referenced in this subdivision that serves
202.19any of the referenced parcels; and
202.20 (2) otherwise eligible under law to be paid with increments from the specified tax
202.21increment financing district, except the authority under this clause does not apply to
202.22increments collected after the conclusion of the duration limit under general law.
202.23EFFECTIVE DATE.This section is effective upon compliance by the governing
202.24body of the city of Oakdale with the requirements of Minnesota Statutes, section 645.021,
202.25subdivision 3, except that the amendments to subdivision 1 are effective only upon
202.26compliance with Minnesota Statutes, section 469.1782, subdivision 2, by Ramsey County
202.27and Independent School District No. 622.
202.28 Sec. 14. ST. CLOUD; TAX INCREMENT FINANCING.
202.29 The request for certification of Tax Increment Financing District No. 2, commonly
202.30referred to as the Norwest District, in the city of St. Cloud is deemed to have been made
202.31on or after August 1, 1979, and before July 1, 1982. Revenues derived from tax increment
202.32for that district must be treated for purposes of any law as revenue of a tax increment
202.33financing district for which the request for certification was made during that time period.
203.1EFFECTIVE DATE.This section is effective upon approval by the governing
203.2body of the city of St. Cloud and compliance with Minnesota Statutes, section 645.021,
203.3subdivision 3.
203.4 Sec. 15. CITY OF GLENCOE; TAX INCREMENT FINANCING DISTRICT
203.5EXTENSION.
203.6 Subdivision 1. Duration of district. Notwithstanding the provisions of Minnesota
203.7Statutes, section 469.176, subdivision 1b, paragraph (a), clause (4), or any other law to the
203.8contrary, the city of Glencoe may collect tax increments from Tax Increment Financing
203.9District No. 4 (McLeod County District No. 007) through December 31, 2023, subject to
203.10the conditions in subdivision 2.
203.11 Subd. 2. Exclusive use of revenues. (a) All tax increments derived from Tax
203.12Increment Financing District No. 4 (McLeod County District No. 007) that are collected
203.13after December 31, 2013, must be used only to pay debt service on or to defease bonds that
203.14were outstanding on January 1, 2013 and that were issued to finance improvements serving:
203.15 (1) Tax Increment Financing District No. 14 (McLeod County District No. 033)
203.16(Downtown);
203.17 (2) Tax Increment Financing District No. 15 (McLeod County District No. 035)
203.18(Industrial Park); and
203.19 (3) benefited properties as further described in proceedings related to the city's series
203.202007A bonds, dated September 1, 2007, and any bonds issued to refund those bonds.
203.21 (b) Increments may also be used to pay debt service on or to defease bonds issued to
203.22refund the bonds described in paragraph (a), if the refunding bonds do not increase the
203.23present value of debt service due on the refunded bonds when the refunding is closed.
203.24 (c) When the bonds described in paragraphs (a) and (b) have been paid or defeased,
203.25the district must be decertified and any remaining increment returned to the city, county,
203.26and school district as provided in Minnesota Statutes, section 469.176, subdivision 2,
203.27paragraph (c), clause (4).
203.28EFFECTIVE DATE.This section is effective upon compliance by the governing
203.29bodies of the city of Glencoe, McLeod County, and Independent School District No.
203.302859 with the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and
203.31645.021, subdivision 3.
203.32 Sec. 16. CITY OF ELY; TAX INCREMENT FINANCING.
204.1 Subdivision 1. Extension of district. Notwithstanding Minnesota Statutes, section
204.2469.176, subdivision 1b, or any other law to the contrary, the city of Ely may collect
204.3tax increment from Tax Increment Financing District No. 1 through December 31,
204.42021. Increments from the district may only be used to pay binding obligations and
204.5administrative expenses.
204.6 Subd. 2. Binding obligations. For purposes of this section, "binding obligations"
204.7means the binding contractual or debt obligation of Tax Increment Financing District
204.8No. 1 entered into before January 1, 2013.
204.9 Subd. 3. Expenditures outside district. Notwithstanding Minnesota Statutes,
204.10section 469.1763, subdivision 2, the governing body of the city of Ely may elect to
204.11transfer revenues derived from increments from its Tax Increment Financing District No.
204.123 to the tax increment account established under Minnesota Statutes, section 469.177,
204.13subdivision 5, for Tax Increment Financing District No. 1. The amount that may be
204.14transferred is limited to the lesser of:
204.15 (1) $168,000; or
204.16 (2) the total amount due on binding obligations and outstanding on that date, less the
204.17amount of increment collected by Tax Increment Financing District No. 1 after December
204.1831, 2012, and administrative expenses of Tax Increment Financing District No. 1 incurred
204.19after December 31, 2012.
204.20EFFECTIVE DATE.This section is effective upon approval by the governing
204.21bodies of the city of Ely, St. Louis County, and Independent School District No. 696 with
204.22the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021,
204.23subdivision 3.
204.24 Sec. 17. DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY; TAX
204.25INCREMENT FINANCING DISTRICT.
204.26 Subdivision 1. Authorization. Notwithstanding the provisions of any other law,
204.27the Dakota County Community Development Agency may establish a redevelopment tax
204.28increment financing district comprised of the properties that (1) were included in the CDA
204.2910 Robert Street and Smith Avenue district in the city of West St. Paul, and (2) were not
204.30decertified before July 1, 2012. The district created under this section terminates no later
204.31than December 31, 2023.
204.32 Subd. 2. Special rules. The requirements for qualifying a redevelopment district
204.33under Minnesota Statutes, section 469.174, subdivision 10, do not apply to parcels located
205.1within the district. Minnesota Statutes, section 469.176, subdivision 4j, do not apply to the
205.2district. The original tax capacity of the district is $93,239.
205.3 Subd. 3. Authorized expenditures. Tax increment from the district may be
205.4expended to pay for any eligible activities authorized by Minnesota Statutes, chapter 469,
205.5within the redevelopment area that includes the district provided that the boundaries of the
205.6redevelopment area may not be expanded to add new area after April 1, 2013. All such
205.7expenditures are deemed to be activities within the district under Minnesota Statutes,
205.8section 469.1763, subdivisions 2 and 4.
205.9 Subd. 4. Adjusted net tax capacity. The captured tax capacity of the district must
205.10be included in the adjusted net tax capacity of the city, county, and school district for the
205.11purposes of determining local government aid, education aid, and county program aid.
205.12The county auditor shall report to the commissioner of revenue the amount of the captured
205.13tax capacity for the district at the time the assessment abstracts are filed.
205.14EFFECTIVE DATE.This section is effective upon compliance by the governing
205.15body of the Dakota County Community Development Agency with the requirements of
205.16Minnesota Statutes, section 645.021, subdivision 3.
205.17 Sec. 18. CITY OF APPLE VALLEY; TAX INCREMENT FINANCING
205.18DISTRICT.
205.19 Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
205.20have the meanings given to them.
205.21(b) "City" means the city of Apple Valley.
205.22(c) "Project area" means the following parcels: parcel numbers 01-03500-25-010,
205.2301-03500-03-011, 01-03500-02-010, 01-03500-52-011, 01-03500-78-011,
205.2401-03500-77-014, 01-03500-75-010, 01-03400-05-050,
205.25(d) "Soil deficiency district" means a type of tax increment financing district
205.26consisting of a portion of the project area in which the city finds by resolution that the
205.27following conditions exist:
205.28(1) unusual terrain or soil deficiencies that occurred over 70 percent of the acreage in
205.29the district require substantial filling, grading, or other physical preparation for use; and
205.30(2) the estimated cost of the physical preparation under clause (1), but excluding
205.31costs directly related to roads as defined in Minnesota Statutes, section 160.01, and local
205.32improvements as described in Minnesota Statutes, sections 429.021, subdivision 1, other
206.1than clauses (8) to (10), and 430.01, exceeds the fair market value of the land before
206.2completion of the preparation.
206.3 Subd. 2. Special rules. (a) If the city elects, upon the adoption of the tax increment
206.4financing plan for a district, the rules under this section apply to a redevelopment
206.5district, renewal and renovation district, soil condition district, or soil deficiency district
206.6established by the city or a development authority of the city in the project area. The city,
206.7or a development authority acting on its behalf, may establish one or more soils deficiency
206.8districts within the project area.
206.9(b) Prior to or upon the adoption of the first tax increment plan subject to the special
206.10rules under this subdivision, the city must find by resolution that parcels consisting
206.11of at least 70 percent of the acreage of the project area, excluding street and railroad
206.12rights-of-way, are characterized by one or more of the following conditions:
206.13(1) peat or other soils with geotechnical deficiencies that impair development of
206.14commercial buildings or infrastructure;
206.15(2) soils or terrain that requires substantial filling in order to permit the development
206.16of commercial buildings or infrastructure;
206.17(3) landfills, dumps, or similar deposits of municipal or private waste;
206.18(4) quarries or similar resource extraction sites;
206.19(5) floodway; and
206.20(6) substandard buildings, within the meaning of Minnesota Statutes, section
206.21469.174, subdivision 10.
206.22(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by
206.23the relevant condition if at least 60 percent of the area of the parcel contains the relevant
206.24condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by
206.25substandard buildings if substandard buildings occupy at least 30 percent of the area
206.26of the parcel.
206.27(d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is
206.28extended to ten years for any district, and the period under Minnesota Statutes, section
206.29469.1763, subdivision 4, is extended to 11 years.
206.30(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section
206.31469.1763, subdivision 2, paragraph (a), not more than 80 percent of the total revenue
206.32derived from tax increments paid by properties in any district, measured over the life of
206.33the district, may be expended on activities outside the district but within the project area.
206.34(f) For a soil deficiency district:
206.35(1) increments may be collected through 20 years after the receipt by the authority of
206.36the first increment from the district; and
207.1(2) except as otherwise provided in this subdivision, increments may be used only to:
207.2(i) acquire parcels on which the improvements described in item (ii) will occur;
207.3(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the
207.4additional cost of installing public improvements directly caused by the deficiencies; and
207.5(iii) pay for the administrative expenses of the authority allocable to the district.
207.6(g) The authority to approve tax increment financing plans to establish tax increment
207.7financing districts under this section expires December 31, 2022.
207.8EFFECTIVE DATE.This section is effective upon compliance with Minnesota
207.9Statutes, section 645.021, subdivision 3.
207.10 Sec. 19. CITY OF APPLE VALLEY; USE OF TAX INCREMENT FINANCING.
207.11 Subdivision 1. Developments consisting of building and ancillary facilities.
207.12 Notwithstanding Minnesota Statutes, section 469.176, subdivisions 4c and 4m, the city of
207.13Apple Valley may use tax increment financing to provide improvements, loans, subsidies,
207.14grants, interest rate subsidies, or assistance in any form to developments consisting of
207.15buildings and ancillary facilities, if all of the following conditions are met:
207.16 (1) the city of Apple Valley finds that the project will create or retain jobs in
207.17Minnesota, including construction jobs;
207.18 (2) the city of Apple Valley finds that construction of the project will not commence
207.19before July 1, 2014, without the use of tax increment financing;
207.20 (3) the request for certification of the district is made no later than June 30, 2014;
207.21 (4) construction of the project begins no later than July 1, 2014; and
207.22 (5) for development of housing, construction of the project begins no later than
207.23December 31, 2013.
207.24 Subd. 2. Extension of authority to spend tax increments. Notwithstanding the
207.25time limits in Minnesota Statutes, section 469.176, subdivision 4m, the city of Apple
207.26Valley has the authority to spend tax increments under Minnesota Statutes, section
207.27469.176, subdivision 4m, until December 31, 2014.
207.28EFFECTIVE DATE.This section is effective upon approval by the governing
207.29body of the city of Apple Valley and timely compliance with Minnesota Statutes, section
207.30645.021, subdivision 3.
207.31 Sec. 20. CITY OF MINNEAPOLIS; STREETCAR FINANCING.
208.1 Subdivision 1. Definitions. (a) For purposes of this section, the following terms
208.2have the meanings given them.
208.3 (b) "City" means the city of Minneapolis.
208.4 (c) "County" means Hennepin County.
208.5 (d) "District" means the areas certified by the city under subdivision 2 for collection
208.6of value capture taxes.
208.7 (e) "Project area" means the area including one city block on either side of a streetcar
208.8line designated by the city to serve the downtown and adjacent neighborhoods of the city.
208.9 Subd. 2. Authority to establish district. (a) The governing body of the city may, by
208.10resolution, establish a value capture district consisting of some or all of the taxable parcels
208.11located within one or more of the following areas of the city, as described in the resolution:
208.12 (1) the area bounded by Nicollet Avenue on the west, 16th Street East on the south,
208.13First Avenue South on the east, and 14th Street East on the north;
208.14 (2) the area bounded by Spruce Place on the west, 14th Street West on the south,
208.15LaSalle Avenue on the east, and Grant Street West on the north;
208.16 (3) the area bounded by Nicollet Avenue or Mall on the west, Fifth Street South on
208.17the south, Marquette Avenue on the east, and Fourth Street South on the north;
208.18 (4) the area bounded by First Avenue North on the west, Washington Avenue on the
208.19south, Hennepin Avenue on the east, and Second Street North on the north; and
208.20(5) the area bounded by Fifth Street North East on the west, Central Avenue North
208.21East on the southeast, Sixth Street North East on the east, Hennepin Avenue East on the
208.22south, and First Avenue North East on the north.
208.23 (b) The city may establish the district and the project area only after holding a public
208.24hearing on its proposed creation after publishing notice of the hearing and the proposal at
208.25least once not less than ten days nor more than 30 days before the date of the hearing.
208.26 Subd. 3. Calculation of value capture district; administrative provisions. (a) If
208.27the city establishes a value capture district under subdivision 2, the city shall request the
208.28county auditor to certify the district for calculation of the district's tax revenues.
208.29 (b) For purposes of calculating the tax revenues of the district, the county auditor
208.30shall treat the district as if it were a request for certification of a tax increment financing
208.31district under the provisions of Minnesota Statutes, section 469.177, subdivision 1,
208.32and shall calculate the tax revenues of the district for each year of its duration under
208.33subdivision 5 as equaling the amount of tax increment that would be computed by
208.34applying the provisions of Minnesota Statutes, section 469.177, subdivisions 1, 2, and
208.353, to determine captured tax capacity and multiplying by the current tax rate, excluding
209.1the state general tax rate. The city shall provide the county auditor with the necessary
209.2information to certify the district, including the option for calculating revenues derived
209.3from the areawide tax rate under Minnesota Statutes, chapter 473F.
209.4 (c) The county auditor shall pay to the city at the same times provided for settlement
209.5of taxes and payment of tax increments the tax revenues of the district. The city must use
209.6the tax revenues as provided under subdivision 4.
209.7 Subd. 4. Permitted uses of district tax revenues. (a) In addition to paying for
209.8reasonable administrative costs of the district, the city may spend tax revenues of the
209.9district for property acquisition, improvements, and equipment to be used for operations
209.10within the project area, along with related costs, for:
209.11 (1) planning, design, and engineering services related to the construction of the
209.12streetcar line;
209.13 (2) acquiring property for, constructing, and installing a streetcar line;
209.14 (3) acquiring and maintaining equipment and rolling stock and related facilities, such
209.15as maintenance facilities, which need not be located in the project area;
209.16 (4) acquiring, constructing, or improving transit stations; and
209.17 (5) acquiring or improving public space, including the construction and installation
209.18of improvements to streets and sidewalks, decorative lighting and surfaces, and plantings
209.19related to the streetcar line.
209.20 (b) The city may issue bonds or other obligations under Minnesota Statutes, chapter
209.21475, without an election, to fund acquisition or improvement of property of a capital
209.22nature authorized by this section, including any costs of issuance. The city may also issue
209.23bonds or other obligations to refund those bonds or obligations. Payment of principal
209.24and interest on the bonds or other obligations issued under this paragraph is a permitted
209.25use of the district's tax revenues.
209.26 (c) Tax revenues of the district may not be used for the operation of the streetcar line.
209.27 Subd. 5. Duration of the district. A district established under this section is limited
209.28to the lesser of (1) 25 years of tax revenues, or (2) the time necessary to collect tax revenues
209.29equal to the amount of the capital costs permitted under subdivision 4 or the amount needed
209.30to pay or defease bonds or other obligations issued under subdivision 4, whichever is later.
209.31EFFECTIVE DATE.This section is effective the day following final enactment.
209.32 Sec. 21. CITY OF MAPLEWOOD; TAX INCREMENT FINANCING
209.33DISTRICT; SPECIAL RULES.
210.1 (a) If the city of Maplewood elects, upon the adoption of a tax increment financing
210.2plan for a district, the rules under this section apply to one or more redevelopment
210.3tax increment financing districts established by the city or the economic development
210.4authority of the city. The area within which the redevelopment tax increment districts may
210.5be created is parcel 362922240002 (the "parcel") or any replatted parcels constituting a
210.6part of the parcel and the adjacent rights-of-way. For purposes of this section, the parcel is
210.7the "3M Renovation and Retention Project Area" or "project area."
210.8 (b) The requirements for qualifying redevelopment tax increment districts under
210.9Minnesota Statutes, section 469.174, subdivision 10, do not apply to the parcel, which is
210.10deemed eligible for inclusion in a redevelopment tax increment district.
210.11 (c) The 90 percent rule under Minnesota Statutes, section 469.176, subdivision
210.124j, does not apply to the parcel.
210.13 (d) The expenditures outside district rule under Minnesota Statutes, section
210.14469.1763, subdivision 2, does not apply; the five-year rule under Minnesota Statutes,
210.15section 469.1763, subdivision 3, is extended to ten years; and expenditures must only
210.16be made within the project area.
210.17 (e) If, after one year from the date of certification of the original net tax capacity
210.18of the tax increment district, no demolition, rehabilitation, or renovation of property has
210.19been commenced on a parcel located within the tax increment district, no additional tax
210.20increment may be taken from that parcel, and the original net tax capacity of the parcel
210.21shall be excluded from the original net tax capacity of the tax increment district. If 3M
210.22Company subsequently commences demolition, rehabilitation, or renovation, the authority
210.23shall certify to the county auditor that the activity has commenced, and the county auditor
210.24shall certify the net tax capacity thereof as most recently certified by the commissioner
210.25of revenue and add it to the original net tax capacity of the tax increment district. The
210.26authority must submit to the county auditor evidence that the required activity has taken
210.27place for each parcel in the district.
210.28 (f) The authority to approve a tax increment financing plan and to establish a tax
210.29increment financing district under this section expires December 31, 2018.
210.30EFFECTIVE DATE.This section is effective upon approval by the governing
210.31body of the city of Maplewood and upon compliance with Minnesota Statutes, section
210.32645.021, subdivision 3.
210.33 Sec. 22. CITY OF BLOOMINGTON; TAX INCREMENT FINANCING.
211.1 Subdivision 1. Addition of property to Tax Increment Financing District
211.2No. 1-G. (a) Notwithstanding the provisions of Minnesota Statutes, section 469.175,
211.3subdivision 4, or any other law to the contrary, the governing bodies of the Port Authority
211.4of the city of Bloomington and the city of Bloomington may elect to eliminate the real
211.5property north of the existing building line on Lot 1, Block 1, Mall of America 7th
211.6Addition, exclusive of Lots 2 and 3 from Tax Increment Financing District No. 1-C
211.7within Industrial Development District No. 1 Airport South in the city of Bloomington,
211.8Minnesota, and expand the boundaries of Tax Increment Financing District No. 1-G
211.9to include that property.
211.10 (b) If the city elects to transfer parcels under this authority, the county auditor shall
211.11transfer the original tax capacity of the affected parcels from Tax Increment Financing
211.12District No. 1-C to Tax Increment Financing District No. 1-G.
211.13 Subd. 2. Authority to extend duration limit; computation of increment. (a)
211.14Notwithstanding Minnesota Statutes, section 469.176, or Laws 1996, chapter 464, article
211.151, section 8, or any other law to the contrary, the city of Bloomington and its port authority
211.16may extend the duration limits of Tax Increment Financing Districts No. 1-C and No.
211.171-G through December 31, 2034.
211.18 (b) Effective for property taxes payable in 2017 through 2034, the captured tax
211.19capacity of Tax Increment Financing District No. 1-C must be included in computing the
211.20tax rates of each local taxing district and the tax increment equals only the amount of tax
211.21computed under Minnesota Statutes, section 473F.08, subdivision 3c, paragraph (c).
211.22 (c) Effective for property taxes payable in 2019 through 2034, the captured tax
211.23capacity of Tax Increment Financing District No. 1-G must be included in computing the
211.24tax rates of each local taxing district and the tax increment for the district equals only
211.25the amount of tax computed under Minnesota Statutes, section 473F.08, subdivision
211.263c, paragraph (c).
211.27 Subd. 3. Treatment of increment. Increments received under the provisions
211.28of subdivision 2, paragraph (b) or (c), and Minnesota Statutes, section 473F.08,
211.29subdivision 3c, are deemed to be tax increments of Tax Increment Financing District No.
211.301-G, notwithstanding any law to the contrary, and without regard to whether they are
211.31attributable to captured tax capacity of Tax Increment Financing District No. 1-C.
211.32 Subd. 4. Condition. The authority under this section expires and Tax Increment
211.33Financing Districts No. 1-C and No. 1-G must be decertified for taxes payable in 2024
211.34and thereafter, if the total estimated market value of improvements for parcels located in
212.1Tax Increment Financing District No. 1-G, as modified, do not exceed $100,000,000
212.2by taxes payable in 2023.
212.3EFFECTIVE DATE.This section is effective upon compliance of the governing
212.4body of the city of Bloomington with the requirements of Minnesota Statutes, section
212.5645.021, subdivision 3, but only if the city enters into a binding written agreement with
212.6the Metropolitan Council to repair and restore, or to replace, the old Cedar Avenue bridge
212.7for use by bicycle commuters and recreational users. This section is effective without
212.8approval of the county and school district under Minnesota Statutes, section 469.1782,
212.9subdivision 2. The legislature finds that the county and school district are not "affected
212.10local government units" within the meaning of Minnesota Statutes, section 469.1782,
212.11because the provision allowing extended collection of increment by the tax increment
212.12financing districts does not affect their tax bases and tax rates dissimilarly to other counties
212.13and school districts in the metropolitan area.
212.14 Sec. 23. CITY OF BLOOMINGTON; OLD CEDAR AVENUE BRIDGE.
212.15 (a) Notwithstanding any law to the contrary, the city of Bloomington shall transfer
212.16from the tax increment financing accounts for its Tax Increment Financing District No.
212.171-C and Tax Increment Financing District No. 1-G an amount equal to the tax increment
212.18for each district that is computed under the provisions of Minnesota Statutes, section
212.19473F.08, subdivision 3c, for taxes payable in 2014 to an account or fund established for
212.20the repair, restoration, or replacement of the Old Cedar Avenue bridge for use by bicycle
212.21commuters and recreational users. The city is authorized to and must use the transferred
212.22funds to complete the repair, renovation, or replacement of the bridge.
212.23 (b) No signs, plaques, or markers acknowledging or crediting donations for,
212.24sponsorships of, or naming rights may be posted on or in the vicinity of the Old Cedar
212.25Avenue bridge.
212.26EFFECTIVE DATE.This section is effective upon compliance by the city of
212.27Bloomington with the requirements of Minnesota Statutes, section 645.021, subdivision 3.
212.30 Section 1. Minnesota Statutes 2012, section 13.792, is amended to read:
212.3113.792 PRIVATE DONOR GIFT DATA.
212.32The following data maintained by the Minnesota Zoological Garden, the University
212.33of Minnesota, the Minnesota State Colleges and Universities, the Regional Parks
213.1Foundation of the Twin Cities, State Services for the Blind, the Destination Medical
213.2Center Corporation established pursuant to section 469.41, and any related entity subject
213.3to chapter 13 are classified as private or nonpublic:
213.4(1) research information about prospects and donors gathered to aid in determining
213.5appropriateness of solicitation and level of gift request;
213.6(2) specific data in prospect lists that would identify prospects to be solicited, dollar
213.7amounts to be requested, and name of solicitor;
213.8(3) portions of solicitation letters and proposals that identify the prospect being
213.9solicited and the dollar amount being requested;
213.10(4) letters, pledge cards, and other responses received from donors regarding
213.11prospective gifts in response to solicitations;
213.12(5) portions of thank-you letters and other gift acknowledgment communications
213.13that would identify the name of the donor and the specific amount of the gift, pledge,
213.14or pledge payment;
213.15(6) donor financial or estate planning information, or portions of memoranda, letters,
213.16or other documents commenting on any donor's financial circumstances; and
213.17(7) data detailing dates of gifts, payment schedule of gifts, form of gifts, and specific
213.18gift amounts made by donors.
213.19Names of donors and gift ranges are public data.
213.20 Sec. 2. Minnesota Statutes 2012, section 297A.71, is amended by adding a subdivision
213.21to read:
213.22 Subd. 48. Construction materials, public infrastructure related to the
213.23destination medical center. Materials and supplies used in, and equipment incorporated
213.24into, the construction and improvement of publicly owned buildings and infrastructure
213.25included in the development plan adopted under section 469.43, and financed with public
213.26funds, are exempt.
213.27EFFECTIVE DATE.This section is effective for sales and purchases made after
213.28June 30, 2015, and before July 1, 2049.
213.29 Sec. 3. [469.40] DEFINITIONS.
213.30 Subdivision 1. Application. For the purposes of sections 469.40 to 469.47, the
213.31terms defined in this section have the meanings given them.
213.32 Subd. 2. City. "City" means the city of Rochester.
213.33 Subd. 3. County. "County" means Olmsted County.
214.1 Subd. 4. Destination Medical Center Corporation, corporation, DMCC.
214.2"Destination Medical Center Corporation," "corporation," or "DMCC" means the
214.3nonprofit corporation created by the city as provided in section 469.41, and organized
214.4under chapter 317A.
214.5 Subd. 5. Destination Medical Center Development District. "Destination medical
214.6center development district" or "development district" means a geographic area in the city
214.7identified in the DMCC development plan in which public infrastructure projects are
214.8implemented.
214.9 Subd. 6. Development plan. "Development plan" means the plan adopted by
214.10the DMCC under section 469.43.
214.11 Subd. 7. Financial interest. "Financial interest" means a person's direct or indirect
214.12ownership or investment interest or compensation arrangement, whether through business,
214.13investment, or family, including spouse, children and stepchildren, and other relatives
214.14living with the person, as follows:
214.15(1) ownership or investment interest in the development, acquisition, or construction
214.16of a project in the development district;
214.17(2) compensation arrangement with respect to the development, acquisition, or
214.18construction of a project in the development district; or
214.19(3) potential ownership or investment interest in, or compensation arrangement with
214.20respect to, the development, acquisition, or construction of a project in the development
214.21district.
214.22 Subd. 8. Medical business entity. "Medical business entity" means a medical
214.23business entity with its principal place of business in the city that, as of the effective date
214.24of this section, together with all business entities of which it is the sole member or sole
214.25shareholder, collectively employs more than 30,000 persons in the state.
214.26 Subd. 9. Nonprofit economic development agency, agency. "Nonprofit economic
214.27development agency" or "agency" means the nonprofit agency required under section
214.28469.43 to provide experience and expertise to the DMCC for purposes of developing and
214.29marketing the destination medical center.
214.30 Subd. 10. Project. "Project" means a project to implement the development plan,
214.31whether public or private.
214.32 Subd. 11. Public infrastructure project. (a) "Public infrastructure project" means
214.33a project financed in part or in whole with public money in order to support the medical
214.34business entity's development plans, as identified in the DMCC development plan. A
214.35public infrastructure project may:
214.36(1) acquire real property and other assets associated with the real property;
215.1(2) demolish, repair, or rehabilitate buildings;
215.2(3) remediate land and buildings as required to prepare the property for acquisition
215.3or development;
215.4(4) install, construct, or reconstruct elements of public infrastructure required to
215.5support the overall development of the destination medical center development district
215.6including, but not limited to, streets, roadways, utilities systems and related facilities,
215.7utility relocations and replacements, network and communication systems, streetscape
215.8improvements, drainage systems, sewer and water systems, subgrade structures and
215.9associated improvements, landscaping, façade construction and restoration, wayfinding
215.10and signage, and other components of community infrastructure;
215.11(5) acquire, construct or reconstruct, and equip parking facilities and other facilities
215.12to encourage intermodal transportation and public transit;
215.13(6) install, construct or reconstruct, furnish, and equip parks, cultural, and
215.14recreational facilities, facilities to promote tourism and hospitality, conferencing and
215.15conventions, broadcast and related multimedia infrastructure;
215.16(7) make related site improvements including, without limitation, excavation,
215.17earth retention, soil stabilization and correction, and site improvements to support the
215.18destination medical center development district;
215.19(8) prepare land for private development and to sell or lease land;
215.20(9) costs of providing relocation benefits to occupants of acquired properties; and
215.21(10) construct and equip all or a portion of one or more suitable structures on land
215.22owned by the city for sale or lease to private development; provided, however, that the
215.23portion of any structure directly financed by the city as a public infrastructure project must
215.24not be sold or leased to a medical business entity.
215.25(b) A public infrastructure project is not a business subsidy under section 116J.993.
215.26 Subd. 12. Year. "Year" means a calendar year, except where otherwise provided.
215.27 Sec. 4. [469.41] DESTINATION MEDICAL CENTER CORPORATION
215.28ESTABLISHED.
215.29 Subdivision 1. DMCC created. The city must establish a destination medical
215.30center corporation as a nonprofit corporation under chapter 317A to provide the city with
215.31expertise in preparing and implementing the development plan to establish the city as a
215.32destination medical center. Except as provided in sections 469.40 to 469.47, the nonprofit
215.33corporation is not subject to laws governing the city.
215.34 Subd. 2. Membership; quorum. (a) The corporation's governing board consists
215.35of eight members appointed, as follows:
216.1(1) the mayor of the city, or the mayor's designee, subject to approval by the city
216.2council;
216.3(2) the city council president, or the city council president's designee, subject
216.4to approval by the city council;
216.5 (3) the chair or member of the county board, appointed by the county board;
216.6 (4) a representative of the medical business entity appointed by and serving at the
216.7pleasure of the medical business entity; and
216.8 (5) four members appointed by the governor, subject to confirmation by the senate.
216.9(b) Appointing authorities must make their respective appointments as soon as
216.10practicable after the effective date of this section, but no later than 60 days after enactment
216.11of this section.
216.12(c) A quorum of the board is six members.
216.13 Subd. 3. Terms. (a) A member first appointed after the effective date of this section
216.14under subdivision 2, paragraph (a), clauses (1), (2), and (3), serves for a term coterminous
216.15with the term of the elected office, but may be reappointed.
216.16 (b) Two members first appointed after the effective date of this section under
216.17subdivision 2, paragraph (a), clause (5), serve from the date of appointment until the first
216.18Tuesday after the first Monday in January 2017, and two members first appointed after the
216.19effective date of this section under subdivision 2, paragraph (a), clause (5), serve from
216.20the date of appointment until the first Tuesday after the first Monday in January 2020.
216.21Thereafter, members appointed by the governor serve six-year terms.
216.22 Subd. 4. Vacancies. A vacancy occurs as provided in section 351.02 or upon
216.23a member's removal under subdivision 7. A vacancy on the board must be filled by
216.24the appointing authority for the balance of the term in the same manner as a regular
216.25appointment.
216.26 Subd. 5. Chair. The board must elect a chair from among the governor's appointees.
216.27The governor must convene the first meeting within 30 days of completion of all
216.28appointments to the board.
216.29 Subd. 6. Pay. Members must be compensated as provided in section 15.0575,
216.30subdivision 3. For the purposes of this subdivision, the member representing the medical
216.31business entity shall be treated as if an employee of a political subdivision. All money
216.32paid for compensation or reimbursement must be paid out of the corporation's budget.
216.33 Subd. 7. Removal for cause. A member may be removed by the board for
216.34inefficiency, neglect of duty, or misconduct in office. A member may be removed only
216.35after a hearing of the board. A copy of the charges must be given to the board member at
216.36least ten days before the hearing. The board member must be given an opportunity to be
217.1heard in person or by counsel at the hearing. When written charges have been submitted
217.2against a board member, the board may temporarily suspend the member. If the board finds
217.3that those charges have not been substantiated, the board member must be immediately
217.4reinstated. If a board member is removed, a record of the proceedings, together with the
217.5charges and findings, must be filed with the office of the appointing authority.
217.6 Subd. 8. Open meeting law; data practices. Meetings of the corporation and any
217.7committee or subcommittee of the corporation are subject to the open meeting law in
217.8chapter 13D. The corporation is a government entity for purposes of chapter 13.
217.9 Subd. 9. Conflicts of interest. Except for the member appointed by the medical
217.10business entity, a member must not be a director, officer, or employee of the medical
217.11business entity. A member must not participate in or vote on a decision of the corporation
217.12relating to any project authorized by or under consideration by the corporation in which
217.13the member has either a direct or indirect financial interest. No member may serve as a
217.14lobbyist, as defined under section 10A.01, subdivision 21.
217.15 Subd. 10. Public official. A member of the corporation is a public official, as
217.16defined in section 10A.01, subdivision 35.
217.17 Subd. 11. Powers. The corporation may exercise any other powers that are
217.18granted by its articles of incorporation and bylaws to the extent that those powers are not
217.19inconsistent with the provisions of sections 469.40 to 469.47.
217.20 Subd. 12. Contract for services. (a) The corporation may contract for the services
217.21of the nonprofit economic development agency, financial advisors, other consultants,
217.22agents, public accountants, legal counsel, and other persons needed to perform its duties
217.23and exercise its powers. The corporation may contract with the city or county to provide
217.24administrative, clerical, and accounting services to the corporation.
217.25(b) The corporation must contract with the nonprofit agency for the services
217.26enumerated in section 469.43, subdivision 6, paragraph (a). The requirement to contract
217.27with the nonprofit agency does not limit the corporation's authority to contract with other
217.28providers for the services.
217.29 Subd. 13. DMCC approval of projects. A project must be approved by the
217.30corporation before it is proposed to the city. The corporation must review the project
217.31proposed for consistency with the adopted development plan.
217.32 Subd. 14. Dissolution. The city must provide for the terms for dissolution of the
217.33corporation in the articles of incorporation.
217.34 Sec. 5. [469.42] OFFICERS; DUTIES; ORGANIZATIONAL MATTERS.
218.1 Subdivision 1. Bylaws, rules, seal. The corporation may adopt bylaws and rules of
218.2procedure and may adopt an official seal.
218.3 Subd. 2. Officers. The corporation must annually elect a treasurer. The chair must
218.4appoint a secretary and assistant treasurer. The secretary and assistant treasurer need
218.5not, but may, be members of the board.
218.6 Subd. 3. Duties and powers. The officers have the usual duties and powers of their
218.7offices. They may be given other duties and powers by the corporation. The corporation
218.8must establish and maintain a Web site.
218.9 Subd. 4. Treasurer's duties. The treasurer:
218.10(1) must receive and is responsible for corporation money;
218.11(2) is responsible for the acts of the assistant treasurer;
218.12(3) must disburse corporation money by check or electronic procedures;
218.13(4) must keep an account of the source of all receipts, and of the nature, purpose, and
218.14authority of all disbursements; and
218.15(5) must file the corporation's detailed financial statement with its secretary at least
218.16once a year at times set by the authority.
218.17 Subd. 5. Secretary. The secretary must perform duties as required by the board.
218.18 Subd. 6. Assistant treasurer. The assistant treasurer has the powers and duties of
218.19the treasurer if the treasurer is absent or disabled.
218.20 Sec. 6. [469.43] DEVELOPMENT PLAN.
218.21 Subdivision 1. Development plan; adoption by DMCC; notice; findings. (a) The
218.22corporation, working with the city and the nonprofit economic development agency, must
218.23prepare and adopt a development plan. The corporation must hold a public hearing before
218.24adopting a development plan. At least 60 days before the hearing, the corporation must
218.25make copies of the proposed plan available to the public at the corporation and city offices
218.26during normal business hours, on the corporation's and city's Web site, and as otherwise
218.27determined appropriate by the corporation. At least ten days before the hearing, the
218.28corporation must publish notice of the hearing in the official newspaper of the city. The
218.29development plan may not be adopted, unless the corporation finds, by resolution, that:
218.30(1) the plan provides an outline for the development of the city as a destination
218.31medical center, and the plan is sufficiently complete, including the identification of planned
218.32and anticipated projects, to indicate its relationship to definite state and local objectives;
218.33(2) the proposed development affords maximum opportunity, consistent with the
218.34needs of the city, county, and state, for the development of the city by private enterprise
218.35as a destination medical center;
219.1(3) the proposed development conforms to the general plan for the development of
219.2the city and is consistent with the city comprehensive plan;
219.3(4) the plan includes:
219.4(i) strategic planning consistent with a destination medical center in the core areas of
219.5commercial research and technology, learning environment, hospitality and convention,
219.6sports and recreation, livable communities, including mixed-use urban development
219.7and neighborhood residential development, retail/dining/entertainment, and health and
219.8wellness;
219.9(ii) estimates of short- and long-range fiscal and economic impacts;
219.10(iii) a framework to identify and prioritize short- and long-term public investment
219.11and public infrastructure project development and to facilitate private investment
219.12and development, including the criteria and process for evaluating and underwriting
219.13development proposals;
219.14(iv) land use planning;
219.15(v) transportation and transit planning;
219.16(vi) operational planning required to support the medical center development
219.17district; and
219.18(vii) ongoing market research plans; and
219.19(5) the city has approved the plan.
219.20(b) The identification of planned and anticipated projects under paragraph (a), clause
219.21(1), must give priority to projects that will pay wages at least equal to the basic cost of living
219.22wage as calculated by the commissioner of employment and economic development for
219.23the county in which the project is located. The calculation of the basic cost of living wage
219.24must be done as provided for under section 116J.013, if enacted by the 2013 legislature.
219.25 Subd. 2. Development plan approval by city. Section 15.99 does not apply to
219.26review and approval of the development plan. The city shall act on the development plan
219.27within 60 days following its submission by the corporation. The city may incorporate the
219.28development plan into the city's comprehensive plan.
219.29 Subd. 3. Subject to city requirements. All projects are subject to the planning,
219.30zoning, sanitary, and building laws; ordinances; regulations; and land use plans that apply
219.31to the city.
219.32 Subd. 4. Modification of development plan. The corporation may modify the
219.33development plan at any time. The corporation must update the development plan not less
219.34than every five years. A modification or update under this subdivision must be adopted by
219.35the corporation upon the notice and after the public hearing and findings required for the
219.36original adoption of the development plan, including approval by the city.
220.1 Subd. 5. Medical center development districts; creation; notice; findings. As
220.2part of the development plan, the corporation may create and define the boundaries of
220.3medical center development districts and subdistricts at any place or places within the
220.4city. Projects may be undertaken within defined medical center development districts
220.5consistent with the development plan.
220.6 Subd. 6. Nonprofit economic development agency. (a) The medical business
220.7entity must establish a nonprofit economic development agency organized under chapter
220.8317A to provide experience and expertise in developing and marketing the destination
220.9medical center. The corporation must engage the agency to assist the corporation in
220.10preparing the development plan. The governing board of the agency must be comprised of
220.11members of the medical community, city, and county. The agency must collaborate with
220.12city, county, and other community representatives. The nonprofit agency must provide
220.13services to assist the corporation and city in implementing the goals, objectives, and
220.14strategies in the development plan including, but not limited to:
220.15(1) facilitating private investment through development of a comprehensive
220.16marketing program to global interests;
220.17(2) developing and updating the criteria for evaluating and underwriting
220.18development proposals;
220.19(3) drafting and implementing the development plan, including soliciting and
220.20evaluating proposals for development and evaluating and making recommendations to the
220.21authority and the city regarding those proposals;
220.22(4) providing transactional services in connection with approved projects;
220.23(5) developing patient, visitor, and community outreach programs for a destination
220.24medical center development district;
220.25(6) working with the corporation to acquire and facilitate the sale, lease, or other
220.26transactions involving land and real property;
220.27(7) seeking financial support for the corporation, the city, and a project;
220.28(8) partnering with other development agencies and organizations, the city, and the
220.29county in joint efforts to promote economic development and establish a destination
220.30medical center;
220.31(9) supporting and administering the planning and development activities required to
220.32implement the development plan;
220.33(10) preparing and supporting the marketing and promotion of the medical center
220.34development district;
220.35(11) preparing and implementing a program for community and public relations in
220.36support of the medical center development district;
221.1(12) assisting the corporation or city and others in applications for federal grants, tax
221.2credits, and other sources of funding to aid both private and public development; and
221.3(13) making other general advisory recommendations to the corporation and the
221.4city, as requested.
221.5(b) The nonprofit economic development agency must disclose to the city and
221.6to the corporation the existence, nature, and all material facts regarding any financial
221.7interest its employees or contractors have in any public infrastructure project submitted
221.8to the city for approval and any financial interest its employees or contractors have in
221.9the destination medical center development. "Contractors" includes affiliates of the
221.10contractors or members or shareholders with an ownership interest of more than 20
221.11percent in the contractor.
221.12 Subd. 7. Audit of nonprofit economic development agency contract. Any contract
221.13for services between the corporation and the nonprofit economic development agency
221.14paid, in whole or in part, with public money provides the corporation, the city, and the state
221.15auditor the right to audit the books and records of the agency that are necessary to certify:
221.16(1) the nature and extent of the services furnished pursuant to the contract; and
221.17(2) that the payment for services and related disbursements complies with all state
221.18laws, regulations, and the terms of the contract.
221.19Any contract for services between the corporation and the agency paid, in whole
221.20or in part, with public money must require the corporation to maintain for the life of the
221.21corporation accurate and complete books and records directly relating to the contract.
221.22 Subd. 8. Report. By February 15 of each year, the corporation and city must jointly
221.23submit a report to the chairs and ranking minority members of the legislative committees
221.24and divisions with jurisdiction over local and state government operations, economic
221.25development, and taxes, and to the commissioners of revenue and employment and
221.26economic development, and the county. The corporation and city must also submit the
221.27report as provided in section 3.195. The report must include:
221.28(1) the development plan and any proposed changes to the development plan;
221.29(2) progress of projects identified in the development plan;
221.30(3) actual costs and financing sources, including the amount paid with state aid under
221.31section 469.47, and required local contributions of projects completed in the previous two
221.32years by the corporation, city, county, and the medical business entity;
221.33(4) estimated costs and financing sources for projects to be started in the next two
221.34years by the corporation, city, county, and the medical business entity; and
221.35(5) debt service schedules for all outstanding obligations of the city for debt issued
221.36for projects identified in the plan.
222.1 Sec. 7. [469.44] CITY POWERS, DUTIES; AUTHORITY TO ISSUE BONDS.
222.2 Subdivision 1. Port authority powers. The city may exercise the powers of a
222.3port authority under sections 469.048 to 469.068 for the purposes of implementing the
222.4destination medical center development plan.
222.5 Subd. 2. Support to the corporation. The city must provide financial and
222.6administrative support, and office and other space, to the corporation. The city may
222.7appropriate city funds to the corporation for its work.
222.8 Subd. 3. City to issue debt. The city may issue general obligation bonds, revenue
222.9bonds, or other obligations, as it determines appropriate, to finance public infrastructure
222.10projects, as provided by chapter 475. Notwithstanding section 475.53, obligations issued
222.11under this section are not subject to the limits on net debt, regardless of their source of
222.12security or payment. Notwithstanding section 475.58 or any other law or charter provision
222.13to the contrary, issuance of obligations under the provisions of this section are not subject
222.14to approval of the electors. The city may pledge any of its revenues, including property
222.15taxes, the taxes authorized by sections 469.45 and 469.46, and the state aid under section
222.16469.47, as security for and to pay the obligations. The city must not issue obligations that
222.17are only payable from or secured by state aid under section 469.47.
222.18 Subd. 4. Local government tax base not reduced. Nothing in sections 469.40 to
222.19469.47 reduces the tax base or affects the taxes due and payable to the city, the county,
222.20or any school district within the boundaries of the city, including without limitation,
222.21the city's general local sales tax.
222.22 Subd. 5. Project implementation before plan adoption. The city may exercise the
222.23powers under subdivision 3 with respect to any public infrastructure project commenced
222.24within the area that will be in the destination medical center development district after the
222.25effective date of this section but before the development plan is adopted subject to approval
222.26by the corporation. Actions taken under this authority must be approved by the corporation
222.27to be credited against the local contribution required under section 469.47, subdivision 4.
222.28 Subd. 6. American made steel. The city must require that a public infrastructure
222.29project use American steel products to the extent practicable. In determining whether it
222.30is practicable, the city may consider the exceptions to the requirement in Public Law
222.31111-5, section 1605.
222.32 Subd. 7. City contracts; construction requirements. For all public infrastructure
222.33projects, the city must make every effort to hire and cause the construction manager and
222.34any subcontractors to employ women and members of minority communities. Goals for
222.35construction contracts must be established in the manner required under the city's minority
222.36and women-owned business enterprises utilization plan.
223.1 Subd. 8. Conduit bond issuance. (a) Upon the request of the corporation or the
223.2nonprofit agency, the city or its economic development authority shall issue revenue bonds
223.3or other similar obligations for a qualifying project. Revenue bonds or other obligations as
223.4used in this subdivision means bonds or other obligations issued under sections 469.152
223.5to 469.165 or under chapter 462C, the interest on which is tax exempt. The city or its
223.6development authority shall use its best efforts to issue the bonds or other obligations
223.7as promptly and efficiently as possible following the request and the provision of the
223.8information and completion of the actions by the corporation or the nonprofit agency that
223.9are necessary for the issuance. Upon request of the corporation or nonprofit agency,
223.10the city or its economic development authority shall adopt methods and procedures that
223.11preserve the confidentiality of private donors or other private participants in the qualifying
223.12project, including structures and methods that do not require disclosing information on
223.13the donors or participants to the city or its economic development authority, and shall
223.14segregate in separate accounts all funds related to a qualifying project from other city
223.15and authority funds.
223.16(b) For purposes of this section, a "qualifying project" means a project, as that
223.17term is defined in section 469.153, or a project that would qualify for financing under
223.18chapter 462C, that:
223.19(1) the corporation finds is consistent with and will further the goals of the
223.20development plan;
223.21(2) is located in a medical development district; and
223.22(3) has a commitment of private funding sources such as donations of money or
223.23in-kind contributions, other than revenues generated by the project, equal to at least ten
223.24percent of the total capital cost of the project.
223.25 Subd. 9. Public bidding exemption. (a) Notwithstanding section 469.068 or any
223.26other law to the contrary, the city need not require competitive bidding with respect to a
223.27parking facility or other public improvements constructed in conjunction with, and directly
223.28above or below, or adjacent and integrally related to, a private development financed
223.29or developed under the development plan.
223.30(b) For purposes of this section, "city" includes the development authority
223.31established by the city.
223.32 Sec. 8. [469.45] CITY TAX AUTHORITY.
223.33 Subdivision 1. Rochester, other local taxes authorized. (a) Notwithstanding
223.34section477A.016 , or any other contrary provision of law, ordinance, or city charter, and in
223.35addition to any taxes the city may impose on these transactions under another statute or
224.1law, the city of Rochester may, by ordinance, impose at a rate or rates, determined by the
224.2city, any of the following taxes:
224.3(1) a tax on the gross receipts from the furnishing for consideration of lodging and
224.4related services as defined in section 297A.61, subdivision 3, paragraph (g), clause (2); the
224.5city may choose to impose a differential tax based on the number of rooms in the facility;
224.6(2) a tax on the gross receipts of food and beverages sold primarily for consumption
224.7on the premises by restaurants and places of refreshment that occur in the city of
224.8Rochester; the city may elect to impose the tax in a defined district of the city; and
224.9(3) a tax on the admission receipts to entertainment and recreational facilities, as
224.10defined by ordinance, in the city of Rochester.
224.11(b) The provisions of section 297A.99, subdivisions 4 to 13, govern the
224.12administration, collection, and enforcement of any tax imposed by the city under
224.13paragraph (a).
224.14(c) The proceeds of any taxes imposed under this subdivision, less refunds and
224.15costs of collection, must be used by the city only to meet its share of obligations for
224.16public infrastructure projects contained in the development plan and approved by the
224.17corporation, including any associated financing costs. Any tax imposed under paragraph
224.18(a) expires at the earlier of December 31, 2049, or when the city council determines
224.19that sufficient funds have been raised from the tax plus all other local funding sources
224.20authorized in this article to meet the city obligation for financing public infrastructure
224.21projects contained in the development plan and approved by the corporation, including
224.22any associated financing costs.
224.23 Subd. 2. General sales tax authority. The city may elect to extend the existing
224.24local sales and use tax under section 13 or to impose an additional rate of up to one quarter
224.25of one percent tax on sales and use under section 11. The proceeds of any extended or
224.26additional taxes imposed under this subdivision, less refunds and costs of collection, must
224.27be used by the city only to meet its share of obligations for public infrastructure projects
224.28contained in the development plan and approved by the corporation, including all financing
224.29costs. Revenues collected in any year to meet the obligations must be used for payment of
224.30obligations or expenses for public infrastructure projects approved by the corporation.
224.31 Subd. 3. Special abatement rules. (a) If the city or the county elects to use tax
224.32abatement under sections 469.1812 to 469.1815 to finance costs of public infrastructure
224.33projects, including all financing costs, the special rules under this subdivision apply.
224.34Taxes abated for public infrastructure projects must be used only for obligations or other
224.35infrastructure projects approved by the corporation.
225.1(b) The limitations under section 469.1813, subdivision 6, do not apply to the city
225.2or the county.
225.3(c) The limitations under section 469.1813, subdivision 8, do not apply and property
225.4taxes abated by the city or the county to finance costs of public infrastructure projects are
225.5not included for purposes of applying section 469.1813, subdivision 8, to the use of tax
225.6abatement for other purposes of the city or the county; however, the total amount of property
225.7taxes abated by the city and the county under this authority must not exceed $87,750,000.
225.8 Subd. 4. Special tax increment financing rules. If the city elects to establish
225.9one or more redevelopment tax increment financing districts within the area of the
225.10destination medical center development district to fund public infrastructure projects, the
225.11requirements, definitions, limitations, or restrictions in the following statutes do not apply:
225.12sections 469.174, subdivisions 10 and 25, clause (2); 469.176, subdivisions 4j, 4l, and 5;
225.13and 469.1763, subdivisions 2, 3, and 4. The provisions of this subdivision expire effective
225.14for tax increments expended after December 31, 2049. After that date, the provisions of
225.15section 469.1763, subdivision 4, apply to any remaining unspent or unobligated increments.
225.16 Sec. 9. [469.46] COUNTY TAX AUTHORITY.
225.17(a) Notwithstanding sections 297A.99, 297A.993, and 477A.016, or any other
225.18contrary provision of law, ordinance, or charter, and in addition to any taxes the county
225.19may impose under another law or statute, the Board of Commissioners of Olmsted County
225.20may, by resolution, impose a transit tax of up to one quarter of one percent on retail sales
225.21and uses taxable under chapter 297A. The provisions of section 297A.99, subdivisions
225.224 to 13, govern the imposition, administration, collection, and enforcement of the tax
225.23authorized under this paragraph.
225.24(b) The Board of Commissioners of Olmsted County may, by resolution, levy an
225.25annual wheelage tax of up to $10 on each motor vehicle kept in the county when not in
225.26operation which is subject to annual registration and taxation under chapter 168, for
225.27transportation projects within the county. The wheelage tax must not be imposed on the
225.28vehicles exempt from wheelage tax under section 163.051, subdivision 1. The board,
225.29by resolution, may provide for collection of the wheelage tax by county officials, or it
225.30may request that the tax be collected by the state registrar on behalf of the county. The
225.31provisions of section 163.051, subdivisions 2, 2a, 3, and 7, must govern the administration,
225.32collection, and enforcement of the tax authorized under this paragraph. The tax authorized
225.33under this section is in addition to any tax the county may be authorized to impose under
225.34section 163.051, but until January 1, 2018, the county tax imposed under this paragraph,
226.1in combination with any tax imposed under section 163.051, must equal the specified
226.2rate under section 163.051.
226.3(c) The proceeds of any taxes imposed under paragraph (a), less refunds and costs
226.4of collection, must be first used by the county to meet its local matching contributions
226.5under section 469.47, subdivision 6, for financing transit infrastructure related to the
226.6public infrastructure projects contained in the development plan and approved by the
226.7corporation, including any financing costs. Revenues collected in any calendar year in
226.8excess of the county obligation to pay for projects contained in the development plan may
226.9be retained by the county and used for funding other transportation projects, including
226.10roads and bridges, airports, and transportation improvements.
226.11(d) Any taxes imposed under paragraph (a) expire December 31, 2049, or at an
226.12earlier time if approved by resolution of the county board of commissioners. The taxes
226.13must not terminate before the county board of commissioners determines that revenues
226.14from these taxes and any other revenue source the county dedicates are sufficient to pay
226.15the county share of transit project costs and financing costs under the development plan.
226.16 Sec. 10. [469.47] STATE INFRASTRUCTURE AID.
226.17 Subdivision 1. Definitions. (a) For purposes of this section, the following terms
226.18have the meanings given them.
226.19(b) "Commissioner" means the commissioner of employment and economic
226.20development.
226.21(c) "Construction projects" means:
226.22(1) for expenditures by a medical business entity, construction of buildings in the
226.23city for which the building permit was issued after June 30, 2013; and
226.24(2) for any other expenditures, construction of privately owned buildings and other
226.25improvements that are undertaken pursuant to or as part of the development plan and are
226.26located within a medical center development district.
226.27(d) "Expenditures" means expenditures made by a medical business entity or by an
226.28individual or private entity on construction projects for the capital cost of the project
226.29including, but not limited to:
226.30(1) design and predesign, including architectural, engineering, and similar services;
226.31(2) legal, regulatory, and other compliance costs of the project;
226.32(3) land acquisition, demolition of existing improvements, and other site preparation
226.33costs;
226.34(4) construction costs, including all materials and supplies of the project; and
226.35(5) equipment and furnishings that are attached to or become part of the real property.
227.1Expenditures excludes supplies and other items with a useful life of less than a
227.2year that are not used or consumed in constructing improvements to real property or
227.3are otherwise chargeable to capital costs.
227.4(e) "Qualified expenditures" has the following meaning. In the first year in which aid
227.5is paid under this section, "qualified expenditures" means the total certified expenditures
227.6since June 30, 2013, through the end of the preceding year, minus $200,000,000. For
227.7subsequent years, "qualified expenditures" means the certified expenditures for the
227.8preceding year.
227.9(f) "Transit costs" means the portions of a public infrastructure project that are for
227.10public transit intended primarily to serve the district, such as transit stations, equipment,
227.11rights-of-way, and similar costs.
227.12 Subd. 2. Certification of expenditures. By April 1 of each year, the medical
227.13business entity must certify to the commissioner the amount of expenditures made by the
227.14medical business entity in the preceding year. For expenditures made by an individual
227.15or entity other than the medical business entity, the corporation shall compile the
227.16information on the expenditures and may certify the amount to the commissioner. The
227.17certification must be made in the form that the commissioner prescribes and include
227.18any documentation of and supporting information regarding the expenditures that the
227.19commissioner requires. By August 1 of each year, the commissioner must determine the
227.20amount of the expenditures for the preceding year.
227.21 Subd. 3. General state infrastructure aid. (a) General state infrastructure aid may
227.22not be paid out under this section until total expenditures exceed $200,000,000.
227.23(b) The amount of the general state infrastructure aid for a fiscal year equals the sum
227.24of qualified expenditures, multiplied by 2.75 percent. The maximum amount of state
227.25aid payable in any year is limited to no more than $30,000,000. If the aid entitlement
227.26for the year exceeds the maximum annual limit, the excess is an aid carryover to later
227.27years. The carryover aid must be paid in the first year in which the aid entitlement for the
227.28current year is less than the maximum annual limit, but only to the extent the carryover,
227.29when added to the current year aid, is less than the maximum annual limit. If the
227.30commissioner determines that the city has made the required matching local contribution
227.31under subdivision 4, the commissioner must pay to the city the amount of general state
227.32infrastructure aid for the year by September 1.
227.33(c) The city must use general state infrastructure aid it receives under this subdivision
227.34for improvements and other capital costs related to the public infrastructure projects
227.35approved by the corporation, other than transit costs. The city must maintain appropriate
227.36records to document the use of the funds under this requirement.
228.1(d) The commissioner, in consultation with the commissioner of management and
228.2budget, and representatives of the city and the corporation, must establish a total limit on
228.3the amount of state aid payable under this subdivision that will be adequate to finance, in
228.4combination with the local contribution, $455,000,000 of general public infrastructure
228.5projects.
228.6 Subd. 4. General aid; local matching contribution. In order to qualify for general
228.7state infrastructure aid, the city must enter a written agreement with the commissioner
228.8that requires the city to make a qualifying local matching contribution to pay for
228.9$128,000,000 of the cost of public infrastructure projects approved by the corporation,
228.10including financing costs, using funds other than state aid received under this section.
228.11The $128,000,000 required local matching contribution is reduced by one half of the
228.12amounts the city pays for operating and administrative costs of the corporation up to a
228.13maximum amount agreed to by the board and the city. The agreement must provide for the
228.14manner, timing, and amounts of the city contributions, including the city's commitment
228.15for each year. Notwithstanding any law to the contrary, the agreement may provide that
228.16the city contributions for public infrastructure project principal costs may be made over a
228.1720-year period at a rate not greater than $1 from the city for each $2.55 from the state.
228.18The local match contribution may be provided by the city from any source identified in
228.19section 469.45 and any other local tax proceeds or other funds from the city and may
228.20include providing funds to assist developers undertaking projects in accordance with the
228.21development plan or by the city directly undertaking public infrastructure projects in
228.22accordance with the development plan, provided the projects have been approved by the
228.23corporation. City contributions that are in excess of this ratio carry forward and are credited
228.24towards subsequent years. The commissioner and city may agree to amend the agreement
228.25at any time in light of new information or other appropriate factors. The city may enter
228.26into arrangements with the county to pay for or otherwise meet the local matching
228.27contribution requirement. Any public infrastructure project within the area that will be in
228.28the destination medical center development district whose implementation is started or
228.29funded by the city after the effective date of this section but before the development plan
228.30is adopted, as provided by section 469.46, subdivision 5, will be included for the purposes
228.31of determining the amount the city has contributed as required by this section and the
228.32agreement with the commissioner, subject to approval by the corporation.
228.33 Subd. 5. State transit aid. (a) The city qualifies for state transit aid under this section
228.34if the county contributes the required local matching contribution under subdivision 6 or the
228.35city or county has agreed to make an equivalent contribution out of other funds for the year.
229.1(b) If the city qualifies for aid under paragraph (a), the commissioner must pay the
229.2city the state transit aid in the amount calculated under this paragraph. The amount of the
229.3state transit aid for a fiscal year equals the sum of qualified expenditures, as certified by
229.4the commissioner for the prior year, multiplied by 0.75 percent, reduced by the amount
229.5of the local contribution under subdivision 6. The maximum amount of state transit aid
229.6payable in any year is limited to no more than $7,500,000. If the aid entitlement for the
229.7year exceeds the maximum annual limit, the excess is an aid carryover to later years. The
229.8carryover aid must be paid in the first year in which the aid entitlement for the current year
229.9is less than the maximum annual limit, but only to the extent the carryover, when added to
229.10the current year aid, is less than the maximum annual limit.
229.11(c) The commissioner, in consultation with the commissioner of management and
229.12budget, and representatives of the city and the corporation, must establish a total limit on
229.13the amount of state aid payable under this subdivision that will be adequate to finance, in
229.14combination with the local contribution, $116,000,000 of transit costs.
229.15(d) The city must use state transit aid it receives under this subdivision for transit
229.16costs. The city must maintain appropriate records to document the use of the funds
229.17under this requirement.
229.18 Subd. 6. Transit aid; local matching contribution. (a) The required local matching
229.19contribution for state transit aid equals the lesser of:
229.20(1) 40 percent of the state transit aid under subdivision 5; or
229.21(2) the amount that would be raised by a 0.15 percent sales tax imposed by the
229.22county in the preceding year.
229.23The county may impose the sales tax or the wheelage tax under section 469.46
229.24to meet this obligation.
229.25(b) If the county elects not to impose any of the taxes authorized under section 469.46,
229.26the county, or city, or both, may agree to make the local contribution out of other available
229.27funds, other than state aid payable under this section. The commissioner of revenue must
229.28estimate the required amount and certify it to the commissioner, city, and county.
229.29 Subd. 7. Prevailing wage requirement. During the construction, installation,
229.30remodelling, and repairs of any public infrastructure project funded by state aid or a local
229.31matching contribution under this section, laborers and mechanics at the site must be paid
229.32the prevailing wage rate as defined in section 177.42, subdivision 6, and the project is
229.33subject to the requirements of sections 177.30 and 177.41 to 177.44.
229.34 Subd. 8. Termination. No aid may be paid under this section after fiscal year 2049.
230.1 Subd. 9. Appropriation. An amount sufficient to pay the state general infrastructure
230.2and state transit aid authorized under this section is appropriated to the commissioner
230.3from the general fund.
230.4 Sec. 11. Laws 1998, chapter 389, article 8, section 43, subdivision 1, is amended to read:
230.5 Subdivision 1. Sales and use taxes authorized. (a) Notwithstanding Minnesota
230.6Statutes, section477A.016 , or any other contrary provision of law, ordinance, or city
230.7charter, upon termination of the taxes authorized under Laws 1992, chapter 511, article
230.88, section 33, subdivision 1, and if approved by the voters of the city at a general or
230.9special election held within one year of the date of final enactment of this act, the city of
230.10Rochester may, by ordinance, impose an additional sales and use tax of up to one-half
230.11of one percent. The provisions of Minnesota Statutes, section297A.48
230.12the imposition, administration, collection, and enforcement of the tax authorized under
230.13thissubdivision paragraph.
230.14(b) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any
230.15other contrary provision of law, ordinance, or charter, the city of Rochester may, by
230.16ordinance, impose an additional sales and use tax of up to one quarter of one percent. The
230.17provisions of Minnesota Statutes, section 297A.99, subdivisions 1 and 4 to 13, govern
230.18the imposition, administration, collection, and enforcement of the tax authorized under
230.19this paragraph.
230.20 Sec. 12. Laws 1998, chapter 389, article 8, section 43, subdivision 3, as amended by
230.21Laws 2005, First Special Session chapter 3, article 5, section 28, and Laws 2011, First
230.22Special Session chapter 7, article 4, section 5, is amended to read:
230.23 Subd. 3. Use of revenues. (a) Revenues received from the taxes authorized by
230.24subdivisions 1, paragraph (a), and 2 must be used by the city to pay for the cost of
230.25collecting and administering the taxes and to pay for the following projects:
230.26 (1) transportation infrastructure improvements including regional highway and
230.27airport improvements;
230.28 (2) improvements to the civic center complex;
230.29 (3) a municipal water, sewer, and storm sewer project necessary to improve regional
230.30ground water quality; and
230.31 (4) construction of a regional recreation and sports center and other higher education
230.32facilities available for both community and student use.
230.33 (b) The total amount of capital expenditures or bonds for projects listed in paragraph
230.34(a) that may be paid from the revenues raised from the taxes authorized in this section
231.1may not exceed $111,500,000. The total amount of capital expenditures or bonds for the
231.2project in clause (4) that may be paid from the revenues raised from the taxes authorized
231.3in this section may not exceed $28,000,000.
231.4(c) In addition to the projects authorized in paragraph (a) and not subject to the
231.5amount stated in paragraph (b), the city of Rochester may, if approved by the voters at an
231.6election under subdivision 5, paragraph (c), use the revenues received from the taxes and
231.7bonds authorized in this section to pay the costs of or bonds for the following purposes:
231.8(1) $17,000,000 for capital expenditures and bonds for the following Olmsted
231.9County transportation infrastructure improvements:
231.10(i) County State Aid Highway 34 reconstruction;
231.11(ii) Trunk Highway 63 and County State Aid Highway 16 interchange;
231.12(iii) phase II of the Trunk Highway 52 and County State Aid Highway 22 interchange;
231.13(iv) widening of County State Aid Highway 22 West Circle Drive; and
231.14(v) 60th Avenue Northwest corridor preservation;
231.15(2) $30,000,000 for city transportation projects including:
231.16(i) Trunk Highway 52 and 65th Street interchange;
231.17(ii) NW transportation corridor acquisition;
231.18(iii) Phase I of the Trunk Highway 52 and County State Aid Highway 22 interchange;
231.19(iv) Trunk Highway 14 and Trunk Highway 63 intersection;
231.20(v) Southeast transportation corridor acquisition;
231.21(vi) Rochester International Airport expansion; and
231.22(vii) a transit operations center bus facility;
231.23(3) $14,000,000 for the University of Minnesota Rochester academic and
231.24complementary facilities;
231.25(4) $6,500,000 for the Rochester Community and Technical College/Winona State
231.26University career technical education and science and math facilities;
231.27(5) $6,000,000 for the Rochester Community and Technical College regional
231.28recreation facilities at University Center Rochester;
231.29(6) $20,000,000 for the Destination Medical Community Initiative;
231.30(7) $8,000,000 for the regional public safety and 911 dispatch center facilities;
231.31(8) $20,000,000 for a regional recreation/senior center;
231.32(9) $10,000,000 for an economic development fund; and
231.33(10) $8,000,000 for downtown infrastructure.
231.34(d) No revenues from the taxes raised from the taxes authorized in subdivisions 1
231.35and 2 may be used to fund transportation improvements related to a railroad bypass that
231.36would divert traffic from the city of Rochester.
232.1(e)The city shall use $5,000,000 of the money allocated to the purpose in paragraph
232.2(c), clause (9), for grants to the cities of Byron, Chatfield, Dodge Center, Dover, Elgin,
232.3Eyota, Kasson, Mantorville, Oronoco, Pine Island, Plainview, St. Charles, Stewartville,
232.4Zumbrota, Spring Valley, West Concord, and Hayfield for economic development projects
232.5that these communities would fund through their economic development authority or
232.6housing and redevelopment authority. Notwithstanding Minnesota Statutes, section
232.7297A.99, subdivisions 2 and 3, if the city decides to extend the taxes in subdivisions 1,
232.8paragraph (a), and 2, as allowed under subdivision 5, paragraph (c), the city must use
232.9any amount in excess of the amount necessary to meet obligations under paragraphs (a)
232.10to (c) from those taxes to fund obligations, including financing costs, related to public
232.11infrastructure projects in the development plan adopted under Minnesota Statutes, section
232.12469.43.
232.13(f) Revenues from the tax under subdivision 1, paragraph (b), must be used to
232.14fund obligations, including financing costs, related to the public infrastructure projects
232.15contained in the development plan approved by the DMCC and adopted by the city under
232.16Minnesota Statutes, section 469.43.
232.17 Sec. 13. Laws 1998, chapter 389, article 8, section 43, subdivision 5, as amended by
232.18Laws 2005, First Special Session chapter 3, article 5, section 30, and Laws 2011, First
232.19Special Session chapter 7, article 4, section 7, is amended to read:
232.20 Subd. 5. Termination of taxes. (a) The taxes imposed under subdivisions 1 and 2
232.21expire at the later of (1) December 31, 2009, or (2) when the city council determines that
232.22sufficient funds have been received from the taxes to finance the first $71,500,000 of capital
232.23expenditures and bonds for the projects authorized in subdivision 3, including the amount to
232.24prepay or retire at maturity the principal, interest, and premium due on any bonds issued for
232.25the projects under subdivision 4, unless the taxes are extended as allowed in paragraph (b).
232.26Any funds remaining after completion of the project and retirement or redemption of the
232.27bonds shall also be used to fund the projects under subdivision 3. The taxes imposed under
232.28subdivisions 1 and 2 may expire at an earlier time if the city so determines by ordinance.
232.29 (b) Notwithstanding Minnesota Statutes, sections297A.99 and
477A.016 , or any
232.30other contrary provision of law, ordinance, or city charter, the city of Rochester may, by
232.31ordinance, extend the taxes authorized in subdivisions 1 and 2 beyond December 31, 2009,
232.32if approved by the voters of the city at a special election in 2005 or the general election in
232.332006. The question put to the voters must indicate that an affirmative vote would allow
232.34up to an additional $40,000,000 of sales tax revenues be raised and up to $40,000,000
232.35of bonds to be issued above the amount authorized in the June 23, 1998, referendum for
233.1the projects specified in subdivision 3. If the taxes authorized in subdivisions 1 and 2 are
233.2extended under this paragraph, the taxes expire when the city council determines that
233.3sufficient funds have been received from the taxes to finance the projects and to prepay
233.4or retire at maturity the principal, interest, and premium due on any bonds issued for the
233.5projects under subdivision 4. Any funds remaining after completion of the project and
233.6retirement or redemption of the bonds may be placed in the general fund of the city.
233.7(c) Notwithstanding Minnesota Statutes, sections297A.99 and
477A.016 , or any
233.8other contrary provision of law, ordinance, or city charter, the city of Rochester may, by
233.9ordinance, extend the taxes authorized in subdivisions 1, paragraph (a), and 2beyond the
233.10date, up to December 31, 2049, provided that all additional revenues above those necessary
233.11to fund the projects and associated financing costs listed in subdivision 3, paragraphs (a) to
233.12(e), are committed to fund public infrastructure projects contained in the development plan
233.13adopted under Minnesota Statutes, section 469.43, including all financing costs; otherwise
233.14the taxes terminate when the city council determines that sufficient funds have been
233.15received from the taxes to finance$111,500,000 of expenditures and bonds for the projects
233.16authorized in subdivision 3,paragraph (a) paragraphs (a) to (e), plus an amount equal to
233.17the costs of issuance of the bonds and including the amount to prepay or retire at maturity
233.18the principal, interest, and premiums due on any bonds issued for the projects under
233.19subdivision 4, paragraph (a), if approved by the voters of the city at the general election in
233.202012. If the election to authorize the additional $139,500,000 of bonds plus an amount
233.21equal to the costs of the issuance of the bonds is placed on the general election ballot in
233.222012, the city may continue to collect the taxes authorized in subdivisions 1 and 2 until
233.23December 31, 2012. The question put to the voters must indicate that an affirmative vote
233.24would allow sales tax revenues be raised for an extended period of time and an additional
233.25$139,500,000 of bonds plus an amount equal to the costs of issuance of the bonds, to be
233.26issued above the amount authorized in the previous elections required under paragraphs
233.27(a) and (b) for the projects and amounts specified in subdivision 3. If the taxes authorized
233.28in subdivisions 1 and 2 are extended under this paragraph, the taxes expire when the city
233.29council determines that $139,500,000 has been received from the taxes to finance the
233.30projects plus an amount sufficient to prepay or retire at maturity the principal, interest,
233.31and premium due on any bonds issued for the projects under subdivision 4, including any
233.32bonds issued to refund the bonds. Any funds remaining after completion of the projects
233.33and retirement or redemption of the bonds may be placed in the general fund of the city.
233.34(d) The tax imposed under subdivision 1, paragraph (b), expires at the earlier of
233.352049, or when the city council determines that sufficient funds have been raised from the
233.36tax plus all other city funding sources authorized in this article to meet the city obligation
234.1for financing the public infrastructure projects contained in the development plan adopted
234.2under Minnesota Statutes, section 469.43, including all financing costs.
234.3 Sec. 14. ROCHESTER SALES TAX SHARING.
234.4The city council may, after holding a public hearing and passing a resolution, use
234.5$5,000,000 of the $10,000,000 allocated to an economic development fund in Laws 1998,
234.6chapter 389, article 8, section 43, subdivision 3, as amended by Laws 2005, First Special
234.7Session chapter 3, article 5, section 28, and Laws 2011, First Special Session chapter 7,
234.8article 4, section 5, paragraph (c), clause (9), for grants to any or all of the cities of Byron,
234.9Chatfield, Dodge Center, Dover, Elgin, Eyota, Hayfield, Kasson, Mantorville, Oronoco,
234.10Pine Island, Plainview, Spring Valley, St. Charles, Stewartville, West Concord, and
234.11Zumbrota for economic development projects that these communities would fund through
234.12their economic development authority or housing and redevelopment authority. The
234.13public hearing may be part of a regular city council meeting. If the council does not pass
234.14the resolution by September 1, 2013, the $5,000,000 may not be used for grants to the
234.15other cities but shall instead be used to fund public infrastructure projects contained in the
234.16development plan under Minnesota Statutes, section 469.42.
234.17 Sec. 15. OLMSTED INTERREGIONAL PASSENGER RAIL STUDY.
234.18The study by the Olmsted County Regional Rail authority, in conjunction with the
234.19Minnesota Department of Transportation, on interregional passenger rail, and funded
234.20under Laws 2009, chapter 93, article 1, section 11, subdivision 5, must include analysis
234.21of the feasibility of a high-speed rail connection between Rochester and the Mall of
234.22America via Minnesota State Highway 77 with connections to the Minneapolis-St. Paul
234.23International Airport and the Union Depot in St. Paul; and, to the extent feasible, take into
234.24account available data, forecasts, available transportation demand modeling information,
234.25and transportation impacts of major economic initiatives and proposals including, but not
234.26limited to, expansion of the Mayo Clinic.
234.27EFFECTIVE DATE.This section is effective the day following final enactment.
234.28 Sec. 16. EFFECTIVE DATE.
234.29Except as otherwise provided, this article is effective the day after the governing
234.30body of the city of Rochester and its chief clerical officer timely comply with Minnesota
234.31Statutes, section 645.021, subdivisions 2 and 3.
235.3 Section 1. Minnesota Statutes 2012, section 126C.48, subdivision 8, is amended to read:
235.4 Subd. 8. Taconite payment and other reductions. (1) Reductions in levies
235.5pursuant to subdivision 1 must be made prior to the reductions in clause (2).
235.6(2) Notwithstanding any other law to the contrary, districts that have revenue
235.7pursuant to sections298.018 ;
298.225 ;
298.24 to
298.28 , except an amount distributed
235.8under sections298.26 ;
298.28, subdivision 4 , paragraphs (c), clause (ii), and (d);
298.34
235.9to298.39 ;
298.391 to
298.396 ;
298.405 ;
477A.15 ; and any law imposing a tax upon
235.10severed mineral values must reduce the levies authorized by this chapter and chapters
235.11120B, 122A, 123A, 123B, 124A, 124D, 125A, and 127A by 95 percent of the sum of the
235.12previous year's revenue specified under this clause and the amount attributable to the same
235.13production year distributed to the cities and townships within the school district under
235.14section 298.28, subdivision 2, paragraph (c).
235.15(3) The amount of any voter approved referendum, facilities down payment, and
235.16debt levies shall not be reduced by more than 50 percent under this subdivision. In
235.17administering this paragraph, the commissioner shall first reduce the nonvoter approved
235.18levies of a district; then, if any payments, severed mineral value tax revenue or recognized
235.19revenue under paragraph (2) remains, the commissioner shall reduce any voter approved
235.20referendum levies authorized under section126C.17 ; then, if any payments, severed
235.21mineral value tax revenue or recognized revenue under paragraph (2) remains, the
235.22commissioner shall reduce any voter approved facilities down payment levies authorized
235.23under section123B.63 and then, if any payments, severed mineral value tax revenue or
235.24recognized revenue under paragraph (2) remains, the commissioner shall reduce any
235.25voter approved debt levies.
235.26(4) Before computing the reduction pursuant to this subdivision of the health and
235.27safety levy authorized by sections123B.57 and
126C.40, subdivision 5 , the commissioner
235.28shall ascertain from each affected school district the amount it proposes to levy under
235.29each section or subdivision. The reduction shall be computed on the basis of the amount
235.30so ascertained.
235.31(5) To the extent the levy reduction calculated under paragraph (2) exceeds the
235.32limitation in paragraph (3), an amount equal to the excess must be distributed from the
235.33school district's distribution under sections298.225 ,
298.28 , and
477A.15 in the following
235.34year to the cities and townships within the school district in the proportion that their
235.35taxable net tax capacity within the school district bears to the taxable net tax capacity of
235.36the school district for property taxes payable in the year prior to distribution. No city or
236.1township shall receive a distribution greater than its levy for taxes payable in the year prior
236.2to distribution. The commissioner of revenue shall certify the distributions of cities and
236.3towns under this paragraph to the county auditor by September 30 of the year preceding
236.4distribution. The county auditor shall reduce the proposed and final levies of cities and
236.5towns receiving distributions by the amount of their distribution. Distributions to the cities
236.6and towns shall be made at the times provided under section298.27 .
236.7EFFECTIVE DATE.This section is effective for levies certified in 2013 and later.
236.8 Sec. 2. Minnesota Statutes 2012, section 298.17, is amended to read:
236.9298.17 OCCUPATION TAXES TO BE APPORTIONED.
236.10(a) All occupation taxes paid by persons, copartnerships, companies, joint stock
236.11companies, corporations, and associations, however or for whatever purpose organized,
236.12engaged in the business of mining or producing iron ore or other ores, when collected
236.13shall be apportioned and distributed in accordance with the Constitution of the state of
236.14Minnesota, article X, section 3, in the manner following: 90 percent shall be deposited
236.15in the state treasury and credited to the general fund of which four-ninths shall be used
236.16for the support of elementary and secondary schools; and ten percent of the proceeds of
236.17the tax imposed by this section shall be deposited in the state treasury and credited to the
236.18general fund for the general support of the university.
236.19(b) Of the moneys apportioned to the general fund by this section: (1) there is
236.20annually appropriated and credited to the mining environmental and regulatory account in
236.21the special revenue fund an amount equal to that which would have been generated by a
236.22two and one-half cent tax imposed by section298.24 on each taxable ton produced in the
236.23preceding calendar year. Money in the mining environmental and regulatory account is
236.24appropriated annually to the commissioner of natural resources to fund agency staff to
236.25work on environmental issues and provide regulatory services for ferrous and nonferrous
236.26mining operations in this state. Payment to the mining environmental and regulatory
236.27account shall be made by July 1 annually. The commissioner of natural resources shall
236.28execute an interagency agreement with the pollution control agency to assist with the
236.29provision of environmental regulatory services such as monitoring and permitting required
236.30for ferrous and nonferrous mining operations; and (2) there is annually appropriated and
236.31credited to the Iron Range Resources and Rehabilitation Board account in the special
236.32revenue fund an amount equal to that which would have been generated by a 1.5 cent tax
236.33imposed by section298.24 on each taxable ton produced in the preceding calendar year, to
236.34be expended for the purposes of section298.22 .
237.1The money appropriated pursuant tothis section clause (2) shall be used (1) (i)
237.2 to provide environmental development grants to local governments located within any
237.3county in region 3 as defined in governor's executive order number 60, issued on June
237.412, 1970, which does not contain a municipality qualifying pursuant to section273.134,
237.5paragraph (b) , or (2) (ii) to provide economic development loans or grants to businesses
237.6located within any such county, provided that the county board or an advisory group
237.7appointed by the county board to provide recommendations on economic development
237.8shall make recommendations to the Iron Range Resources and Rehabilitation Board
237.9regarding the loans. Payment to the Iron Range Resources and Rehabilitation Board
237.10account shall be made by May 15 annually.
237.11(c) Of the money allocated to Koochiching County, one-third must be paid to the
237.12Koochiching County Economic Development Commission.
237.13EFFECTIVE DATE.This section is effective beginning for the 2013 production
237.14year.
237.15 Sec. 3. Minnesota Statutes 2012, section 298.227, as amended by Laws 2013, chapter
237.163, section 17, is amended to read:
237.17298.227 TACONITE ECONOMIC DEVELOPMENT FUND.
237.18 (a) An amount equal to that distributed pursuant to each taconite producer's taxable
237.19production and qualifying sales under section298.28, subdivision 9a , shall be held by
237.20the Iron Range Resources and Rehabilitation Board in a separate taconite economic
237.21development fund for each taconite and direct reduced ore producer. Money from the
237.22fund for each producer shall be released by the commissioner after review by a joint
237.23committee consisting of an equal number of representatives of the salaried employees and
237.24the nonsalaried production and maintenance employees of that producer. The District 11
237.25director of the United States Steelworkers of America, on advice of each local employee
237.26president, shall select the employee members. In nonorganized operations, the employee
237.27committee shall be elected by the nonsalaried production and maintenance employees. The
237.28review must be completed no later than six months after the producer presents a proposal
237.29for expenditure of the funds to the committee. The funds held pursuant to this section may
237.30be released only for workforce development and associated public facility improvement,
237.31or for acquisition of plant and stationary mining equipment and facilities for the producer
237.32or for research and development in Minnesota on new mining, or taconite, iron, or steel
237.33production technology, but only if the producer provides a matching expenditure equal to
237.34the amount of the distribution to be used for the same purposeof at least 50 percent of
238.1the distribution based on 14.7 cents per ton beginning with distributions in 2002 2014.
238.2Effective for proposals for expenditures of money from the fund beginning May 26, 2007,
238.3the commissioner may not release the funds before the next scheduled meeting of the
238.4board. If a proposed expenditure is not approved by the board, the funds must be deposited
238.5in the Taconite Environmental Protection Fund under sections298.222 to
298.225 . If a
238.6producer uses money which has been released from the fund prior to May 26, 2007 to
238.7procure haulage trucks, mobile equipment, or mining shovels, and the producer removes
238.8the piece of equipment from the taconite tax relief area defined in section273.134 within
238.9ten years from the date of receipt of the money from the fund, a portion of the money
238.10granted from the fund must be repaid to the taconite economic development fund. The
238.11portion of the money to be repaid is 100 percent of the grant if the equipment is removed
238.12from the taconite tax relief area within 12 months after receipt of the money from the fund,
238.13declining by ten percent for each of the subsequent nine years during which the equipment
238.14remains within the taconite tax relief area. If a taconite production facility is sold after
238.15operations at the facility had ceased, any money remaining in the fund for the former
238.16producer may be released to the purchaser of the facility on the terms otherwise applicable
238.17to the former producer under this section. If a producer fails to provide matching funds
238.18for a proposed expenditure within six months after the commissioner approves release
238.19of the funds, the funds are available for release to another producer in proportion to the
238.20distribution provided and under the conditions of this section. Any portion of the fund
238.21which is not released by the commissioner within one year of its deposit in the fund shall
238.22be divided between the taconite environmental protection fund created in section298.223
238.23and the Douglas J. Johnson economic protection trust fund created in section
298.292 for
238.24placement in their respective special accounts. Two-thirds of the unreleased funds shall be
238.25distributed to the taconite environmental protection fund and one-third to the Douglas J.
238.26Johnson economic protection trust fund.
238.27 (b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of
238.28distributions and the review process, an amount equal to ten cents per taxable ton of
238.29production in 2007, for distribution in 2008 only, that would otherwise be distributed
238.30under paragraph (a), may be used for a loan or grant for the cost of providing for a
238.31value-added wood product facility located in the taconite tax relief area and in a county
238.32that contains a city of the first class. This amount must be deducted from the distribution
238.33under paragraph (a) for which a matching expenditure by the producer is not required. The
238.34granting of the loan or grant is subject to approval by the board. If the money is provided
238.35as a loan, interest must be payable on the loan at the rate prescribed in section298.2213,
238.36subdivision 3 . (ii) Repayments of the loan and interest, if any, must be deposited in the
239.1taconite environment protection fund under sections298.222 to
298.225 . If a loan or
239.2grant is not made under this paragraph by July 1, 2012, the amount that had been made
239.3available for the loan under this paragraph must be transferred to the taconite environment
239.4protection fund under sections298.222 to
298.225 . (iii) Money distributed in 2008 to the
239.5fund established under this section that exceeds ten cents per ton is available to qualifying
239.6producers under paragraph (a) on a pro rata basis.
239.7(c) Repayment or transfer of money to the taconite environmental protection fund
239.8under paragraph (b), item (ii), must be allocated by the Iron Range Resources and
239.9Rehabilitation Board for public works projects in house legislative districts in the same
239.10proportion as taxable tonnage of production in 2007 in each house legislative district, for
239.11distribution in 2008, bears to total taxable tonnage of production in 2007, for distribution
239.12in 2008. Notwithstanding any other law to the contrary, expenditures under this paragraph
239.13do not require approval by the governor. For purposes of this paragraph, "house legislative
239.14districts" means the legislative districts in existence on May 15, 2009.
239.15EFFECTIVE DATE.This section is effective beginning for the 2014 distribution.
239.16 Sec. 4. Minnesota Statutes 2012, section 298.24, subdivision 1, is amended to read:
239.17 Subdivision 1. Imposed; calculation. (a) For concentrate produced in2001, 2002,
239.18and 2003 2013, there is imposed upon taconite and iron sulphides, and upon the mining
239.19and quarrying thereof, and upon the production of iron ore concentrate therefrom, and
239.20upon the concentrate so produced, a tax of$2.103 $2.56 per gross ton of merchantable
239.21iron ore concentrate produced therefrom.For concentrates produced in 2005, the tax rate
239.22is the same rate imposed for concentrates produced in 2004. For concentrates produced in
239.232009 and subsequent years, The tax is also imposed upon other iron-bearing material.
239.24 (b) For concentrates produced in2006 2014 and subsequent years, the tax rate shall
239.25be equal to the preceding year's tax rate plus an amount equal to the preceding year's tax
239.26rate multiplied by the percentage increase in the implicit price deflator from the fourth
239.27quarter of the second preceding year to the fourth quarter of the preceding year. "Implicit
239.28price deflator" means the implicit price deflator for the gross domestic product prepared by
239.29the Bureau of Economic Analysis of the United States Department of Commerce.
239.30 (c) An additional tax is imposed equal to three cents per gross ton of merchantable
239.31iron ore concentrate for each one percent that the iron content of the product exceeds 72
239.32percent, when dried at 212 degrees Fahrenheit.
239.33 (d) The tax on taconite and iron sulphides shall be imposed on the average of the
239.34production for the current year and the previous two years. The rate of the tax imposed
239.35will be the current year's tax rate. This clause shall not apply in the case of the closing
240.1of a taconite facility if the property taxes on the facility would be higher if this clause
240.2and section298.25 were not applicable. The tax on other iron-bearing material shall be
240.3imposed on the current year production.
240.4 (e) If the tax or any part of the tax imposed by this subdivision is held to be
240.5unconstitutional, a tax of$2.103 $2.56 per gross ton of merchantable iron ore concentrate
240.6produced shall be imposed.
240.7 (f) Consistent with the intent of this subdivision to impose a tax based upon the
240.8weight of merchantable iron ore concentrate, the commissioner of revenue may indirectly
240.9determine the weight of merchantable iron ore concentrate included in fluxed pellets by
240.10subtracting the weight of the limestone, dolomite, or olivine derivatives or other basic
240.11flux additives included in the pellets from the weight of the pellets. For purposes of this
240.12paragraph, "fluxed pellets" are pellets produced in a process in which limestone, dolomite,
240.13olivine, or other basic flux additives are combined with merchantable iron ore concentrate.
240.14No subtraction from the weight of the pellets shall be allowed for binders, mineral and
240.15chemical additives other than basic flux additives, or moisture.
240.16 (g)(1) Notwithstanding any other provision of this subdivision, for the first two years
240.17of a plant's commercial production of direct reduced ore from ore mined in this state, no
240.18tax is imposed under this section. As used in this paragraph, "commercial production" is
240.19production of more than 50,000 tons of direct reduced ore in the current year or in any prior
240.20year, "noncommercial production" is production of 50,000 tons or less of direct reduced ore
240.21in any year, and "direct reduced ore" is ore that results in a product that has an iron content
240.22of at least 75 percent. For the third year of a plant's commercial production of direct
240.23reduced ore, the rate to be applied to direct reduced ore is 25 percent of the rate otherwise
240.24determined under this subdivision. For the fourth commercial production year, the rate is
240.2550 percent of the rate otherwise determined under this subdivision; for the fifth commercial
240.26production year, the rate is 75 percent of the rate otherwise determined under this
240.27subdivision; and for all subsequent commercial production years, the full rate is imposed.
240.28 (2) Subject to clause (1), production of direct reduced ore in this state is subject to
240.29the tax imposed by this section, but if that production is not produced by a producer of
240.30taconite, iron sulfides, or other iron-bearing material, the production of taconite, iron
240.31sulfides, or other iron-bearing material, that is consumed in the production of direct
240.32reduced iron in this state is not subject to the tax imposed by this section on taconite,
240.33iron sulfides, or other iron-bearing material.
240.34 (3) Notwithstanding any other provision of this subdivision, no tax is imposed
240.35on direct reduced ore under this section during the facility's noncommercial production
240.36of direct reduced ore. The taconite or iron sulphides consumed in the noncommercial
241.1production of direct reduced ore is subject to the tax imposed by this section on taconite
241.2and iron sulphides. Three-year average production of direct reduced ore does not
241.3include production of direct reduced ore in any noncommercial year. Three-year average
241.4production for a direct reduced ore facility that has noncommercial production is the
241.5average of the commercial production of direct reduced ore for the current year and the
241.6previous two commercial years.
241.7 (4) This paragraph applies only to plants for which all environmental permits have
241.8been obtained and construction has begun before July 1, 2008.
241.9EFFECTIVE DATE.This section is effective beginning for the 2013 production
241.10year.
241.11 Sec. 5. Minnesota Statutes 2012, section 298.28, subdivision 4, is amended to read:
241.12 Subd. 4. School districts. (a)23.15 32.15 cents per taxable ton, plus the increase
241.13provided in paragraph (d), less the amount that would have been computed under
241.14Minnesota Statutes 2008, section126C.21, subdivision 4 , for the current year for that
241.15district, must be allocated to qualifying school districts to be distributed, based upon the
241.16certification of the commissioner of revenue, under paragraphs (b), (c), and (f).
241.17 (b)(i) 3.43 cents per taxable ton must be distributed to the school districts in which
241.18the lands from which taconite was mined or quarried were located or within which the
241.19concentrate was produced. The distribution must be based on the apportionment formula
241.20prescribed in subdivision 2.
241.21 (ii) Four cents per taxable ton from each taconite facility must be distributed to
241.22each affected school district for deposit in a fund dedicated to building maintenance
241.23and repairs, as follows:
241.24 (1) proceeds from Keewatin Taconite or its successor are distributed to Independent
241.25School Districts Nos. 316, Coleraine, and 319, Nashwauk-Keewatin, or their successor
241.26districts;
241.27 (2) proceeds from the Hibbing Taconite Company or its successor are distributed to
241.28Independent School Districts Nos. 695, Chisholm, and 701, Hibbing, or their successor
241.29districts;
241.30 (3) proceeds from the Mittal Steel Company and Minntac or their successors are
241.31distributed to Independent School Districts Nos. 712, Mountain Iron-Buhl, 706, Virginia,
241.322711, Mesabi East, and 2154, Eveleth-Gilbert, or their successor districts;
241.33 (4) proceeds from the Northshore Mining Company or its successor are distributed
241.34to Independent School Districts Nos. 2142, St. Louis County, and 381, Lake Superior,
241.35or their successor districts; and
242.1 (5) proceeds from United Taconite or its successor are distributed to Independent
242.2School Districts Nos. 2142, St. Louis County, and 2154, Eveleth-Gilbert, or their
242.3successor districts.
242.4 Revenues that are required to be distributed to more than one district shall be
242.5apportioned according to the number of pupil units identified in section126C.05,
242.6subdivision 1 , enrolled in the second previous year.
242.7 (c)(i)15.72 24.72 cents per taxable ton, less any amount distributed under paragraph
242.8(e), shall be distributed to a group of school districts comprised of those school districts
242.9which qualify as a tax relief area under section273.134, paragraph (b) , or in which there is
242.10a qualifying municipality as defined by section273.134, paragraph (a) , in direct proportion
242.11to school district indexes as follows: for each school district, its pupil units determined
242.12under section126C.05 for the prior school year shall be multiplied by the ratio of the
242.13average adjusted net tax capacity per pupil unit for school districts receiving aid under
242.14this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year
242.15ending prior to distribution to the adjusted net tax capacity per pupil unit of the district.
242.16Each district shall receive that portion of the distribution which its index bears to the sum
242.17of the indices for all school districts that receive the distributions.
242.18 (ii) Notwithstanding clause (i), each school district that receives a distribution
242.19under sections298.018 ;
298.23 to
298.28 , exclusive of any amount received under this
242.20clause;298.34 to
298.39 ;
298.391 to
298.396 ;
298.405 ; or any law imposing a tax on
242.21severed mineral values after reduction for any portion distributed to cities and towns
242.22under section126C.48, subdivision 8 , paragraph (5), that is less than the amount of its
242.23levy reduction under section126C.48, subdivision 8 , for the second year prior to the
242.24year of the distribution shall receive a distribution equal to the difference; the amount
242.25necessary to make this payment shall be derived from proportionate reductions in the
242.26initial distribution to other school districts under clause (i). If there are insufficient tax
242.27proceeds to make the distribution provided under this paragraph in any year, money must
242.28be transferred from the taconite property tax relief account in subdivision 6, to the extent
242.29of the shortfall in the distribution.
242.30 (d)(1) Any school district described in paragraph (c) where a levy increase pursuant
242.31to section126C.17, subdivision 9 , was authorized by referendum for taxes payable in
242.322001, shall receive a distribution of 21.3 cents per ton. Each district shall receive $175
242.33times the pupil units identified in section126C.05, subdivision 1 , enrolled in the second
242.34previous year or the 1983-1984 school year, whichever is greater, less the product of 1.8
242.35percent times the district's taxable net tax capacity inthe second previous year 2011.
243.1(2) Districts qualifying under paragraph (c) must receive additional taconite aid each
243.2year equal to 22.5 percent of the amount obtained by subtracting:
243.3(i) 1.8 percent of the district's net tax capacity for 2011, from:
243.4(ii) the district's weighted average daily membership for fiscal year 2012 multiplied
243.5by the sum of:
243.6(A) $415, plus
243.7(B) the district's referendum revenue allowance for fiscal year 2013.
243.8 If the total amount provided by paragraph (d) is insufficient to make the payments
243.9herein required then the entitlement of $175 per pupil unit shall be reduced uniformly
243.10so as not to exceed the funds available. Any amounts received by a qualifying school
243.11district in any fiscal year pursuant to paragraph (d) shall not be applied to reduce general
243.12education aid which the district receives pursuant to section126C.13 or the permissible
243.13levies of the district. Any amount remaining after the payments provided in this paragraph
243.14shall be paid to the commissioner of Iron Range resources and rehabilitation who shall
243.15deposit the same in the taconite environmental protection fund and the Douglas J. Johnson
243.16economic protection trust fund as provided in subdivision 11.
243.17 Each district receiving money according to this paragraph shall reserve the lesser of
243.18the amount received under this paragraph or $25 times the number of pupil units served
243.19in the district. It may use the money for early childhood programsor for outcome-based
243.20learning programs that enhance the academic quality of the district's curriculum. The
243.21outcome-based learning programs must be approved by the commissioner of education.
243.22 (e) There shall be distributed to any school district the amount which the school
243.23district was entitled to receive under section298.32 in 1975.
243.24 (f) Four cents per taxable ton must be distributed to qualifying school districts
243.25according to the distribution specified in paragraph (b), clause (ii), andtwo 11 cents
243.26per taxable ton must be distributed according to the distribution specified in paragraph
243.27(c). These amounts are not subject to sections126C.21, subdivision 4 , and
126C.48,
243.28subdivision 8 .
243.29EFFECTIVE DATE.This section is effective beginning for the 2014 distribution.
243.30 Sec. 6. Minnesota Statutes 2012, section 298.28, subdivision 6, is amended to read:
243.31 Subd. 6. Property tax relief. (a) In2002 2014 and thereafter, 33.9 34.8 cents per
243.32taxable ton, less any amount required to be distributed under paragraphs (b) and (c), or
243.33section298.2961 , subdivision 5, must be allocated to St. Louis County acting as the
243.34counties' fiscal agent, to be distributed as provided in sections273.134 to
273.136 .
244.1 (b) If an electric power plant owned by and providing the primary source of power
244.2for a taxpayer mining and concentrating taconite is located in a county other than the
244.3county in which the mining and the concentrating processes are conducted, .1875 cent per
244.4taxable ton of the tax imposed and collected from such taxpayer shall be paid to the county.
244.5 (c) If an electric power plant owned by and providing the primary source of power
244.6for a taxpayer mining and concentrating taconite is located in a school district other than
244.7a school district in which the mining and concentrating processes are conducted, .4541
244.8cent per taxable ton of the tax imposed and collected from the taxpayer shall be paid to
244.9the school district.
244.10EFFECTIVE DATE.This section is effective beginning for the 2014 distribution.
244.11 Sec. 7. Minnesota Statutes 2012, section 298.28, subdivision 9c, is amended to read:
244.12 Subd. 9c.Temporary Distribution; city of Eveleth. 0.20 cent per taxable ton
244.13must be paid to the city of Eveleth for distribution in2007 through 2011 only 2013
244.14and thereafter, to be used for the support of the Hockey Hall of Fame, provided that it
244.15continues to operate in that city, and provided that the city of Eveleth certifies to the St.
244.16Louis County auditor that it has received donations for the support of the Hockey Hall of
244.17Fame fromprofessional hockey organizations or other donors in an amount at least equal
244.18to the amount of the distribution under this subdivision. If the Hockey Hall of Fame
244.19ceases to operate in the city of Eveleth prior to receipt of the distribution ineither any
244.20year, and the governing body of the city determines that it is unlikely to resume operation
244.21there within a six-month period, the distribution under this subdivision shall be made to
244.22the Iron Range Resources and Rehabilitation Board.If the amount of the distribution
244.23authorized under this subdivision exceeds the total amount of donations for the support of
244.24the Hockey Hall of Fame during the 12-month period ending 30 days before the date of
244.25the distribution, the amount by which 0.20 cent per ton exceeds the donations shall be
244.26distributed to the Iron Range Resources and Rehabilitation Board.
244.27 Sec. 8. Minnesota Statutes 2012, section 298.28, subdivision 10, is amended to read:
244.28 Subd. 10. Increase. (a) Except as provided in paragraph (b), beginning with
244.29distributions in 2000, the amount determined under subdivision 9 shall be increased in the
244.30same proportion as the increase in the implicit price deflator as provided in section298.24,
244.31subdivision 1 . Beginning with distributions in 2003 2015, the amount determined under
244.32subdivision 6, paragraph (a), shall be increased in the same proportion as the increase in
244.33the implicit price deflator as provided in section298.24, subdivision 1 .
245.1(b) For distributions in 2005 and subsequent years, an amount equal to the increased
245.2tax proceeds attributable to the increase in the implicit price deflator as provided in
245.3section298.24, subdivision 1 , for taxes paid in 2005, except for the amount of revenue
245.4increases provided in subdivision 4, paragraph (d), is distributed to the grant and loan fund
245.5established in section298.2961, subdivision 4 .
245.6EFFECTIVE DATE.This section is effective beginning for the 2014 distribution.
245.7 Sec. 9. IRON RANGE FISCAL DISPARITIES STUDY.
245.8The commissioner of revenue, in coordination with the commissioner of the Iron
245.9Range Resources and Rehabilitation Board, shall conduct a study of the tax relief
245.10area revenue distribution program contained in Minnesota Statutes, chapter 276A,
245.11commonly known as the Iron Range fiscal disparities program. By February 1, 2014, the
245.12commissioner of revenue shall submit a report to the chairs and ranking minority members
245.13of the house of representatives and senate tax committees consisting of the findings of the
245.14study and identification of issues for policy makers to consider. The study must analyze:
245.15(1) trends in population, property tax base, property tax rates, and contribution
245.16and distribution capacity across the region;
245.17(2) the volatility of the program's distribution and causes of the volatility;
245.18(3) the impact of state tax policy changes on the fiscal disparities program; and
245.19(4) the interaction between the program and the distribution of property tax aids and
245.20credits, taconite aid, and Iron Range Resources and Rehabilitation Board funding across
245.21the region.
245.22EFFECTIVE DATE.This section is effective June 1, 2013.
245.23 Sec. 10. 2013 DISTRIBUTION ONLY.
245.24For the 2013 distribution, a special fund is established to receive 38.7 cents per ton of
245.25any excess of the balance remaining after distribution of amounts required under Minnesota
245.26Statutes, section 298.28, subdivision 6. The following amounts are allocated to St. Louis
245.27County acting as the fiscal agent for the recipients for the following specific purposes:
245.28(1) 5.1 cents per ton to the city of Hibbing for improvements to the city's water
245.29supply system;
245.30(2) 4.3 cents per ton to the city of Mountain Iron for the cost of moving utilities
245.31required as a result of actions undertaken by United States Steel Corporation;
245.32(3) 2.5 cents per ton to the city of Biwabik for improvements to the city's water supply
245.33system, payable upon agreement with ArcelorMittal to satisfy water permit conditions;
246.1(4) 2 cents per ton to the city of Tower for the Tower Marina;
246.2(5) 2.4 cents per ton to the city of Grand Rapids for an eco-friendly heat transfer
246.3system to replace aging effluent lines and for parking lot repaving;
246.4(6) 2.4 cents per ton to the city of Two Harbors for wastewater treatment plant
246.5improvements;
246.6(7) 0.9 cents per ton to the city of Ely for the sanitary sewer replacement project;
246.7(8) 0.6 cents per ton to the town of Crystal Bay for debt service of the Claire Nelson
246.8Intermodal Transportation Center;
246.9(9) 0.5 cents per ton to the Greenway Joint Recreation Board for the Coleraine
246.10hockey arena renovations;
246.11(10) 1.2 cents per ton for the West Range Regional Fire Hall and Training Center
246.12to merge the existing fire services of Coleraine, Bovey, Taconite Marble, Calumet, and
246.13Greenway Township;
246.14(11) 2.5 cents per ton to the city of Hibbing for the Memorial Building;
246.15(12) 0.7 cents per ton to the city of Chisholm for public works infrastructure;
246.16(13) 1.8 cents per ton to the Crane Lake Water and Sanitary District for sanitary
246.17sewer extension;
246.18(14) 2.5 cents per ton for the city of Buhl for the roof on the Mesabi Academy;
246.19(15) 1.2 cents per ton to the city of Gilbert for the New Jersey/Ohio Avenue project;
246.20(16) 1.5 cents per ton to the city of Cook for street improvements, business park
246.21infrastructure, and a maintenance garage;
246.22(17) 0.5 cents per ton to the city of Cook for a water line project;
246.23(18) 1.8 cents per ton to the city of Eveleth to be used for Jones Street reconstruction
246.24and the city auditorium;
246.25(19) 0.5 cents for the city of Keewatin for an electrical substation and water line
246.26replacements;
246.27(20) 3.3 cents for the city of Virginia for Fourth Street North infrastructure and
246.28Franklin Park improvement; and
246.29(21) 0.5 cents per ton to the city of Grand Rapids for an economic development
246.30project.
246.31EFFECTIVE DATE.This section is effective for the 2013 distribution, and all
246.32payments must be made separately and within ten days of the date of the August 2013
246.33payment. This section supersedes article 5, section 46, of 2013 H.F. No. 729, if enacted in
246.34the 2013 regular session of the legislature.
247.1 Sec. 11. IRON RANGE RESOURCES AND REHABILITATION
247.2COMMISSIONER; BONDS AUTHORIZED.
247.3 Subdivision 1. Issuance; purpose. Notwithstanding any provision of Minnesota
247.4Statutes, chapter 298, to the contrary, the commissioner of Iron Range resources and
247.5rehabilitation shall issue revenue bonds in a principal amount of $38,000,000 plus an
247.6amount sufficient to pay costs of issuance in one or more series, and thereafter may
247.7issue bonds to refund those bonds. The proceeds of the bonds must be used to pay costs
247.8of issuance and to make grants to school districts located in the taconite tax relief area
247.9defined in Minnesota Statutes, section 273.134, or the taconite assistance area defined
247.10in Minnesota Statutes, section 273.1341, to be used by the school districts to pay for
247.11building projects, such as energy efficiency, technology, infrastructure, health, safety, and
247.12maintenance improvements. Proceeds granted to School District No. 2142 must be used
247.13to reduce debt service on the building bond passed on December 8, 2009.
247.14 Subd. 2. Appropriation. (a) There is annually appropriated from the distribution of
247.15taconite production tax revenues under Minnesota Statues, section 298.28, prior to the
247.16calculation of the amount of the remainder under Minnesota Statutes, section 298.28,
247.17subdivision 11, an amount sufficient to pay when due the principal and interest on the
247.18bonds issued pursuant to subdivision 1. The appropriation under this section must not
247.19exceed an amount equal to ten cents per taxable ton.
247.20 (b) If in any year the amount available under paragraph (a) is insufficient to pay
247.21principal and interest due on the bonds in that year, an additional amount is appropriated
247.22from the Douglas J. Johnson fund to make up the deficiency.
247.23 (c) The appropriation under this subdivision terminates upon payment or maturity of
247.24the last of the bonds issued under this section.
247.25 Subd. 3. Credit enhancement. The bonds issued under this section are "debt
247.26obligations" and the commissioner of Iron Range resources and rehabilitation is a "district"
247.27for purposes of Minnesota Statutes, section 126C.55, provided that advances made under
247.28Minnesota Statutes, section 126C.55, subdivision 2, are not subject to Minnesota Statutes,
247.29section 126C.55, subdivisions 4 to 7.
247.30EFFECTIVE DATE.This section is effective the day following final enactment and
247.31applies beginning with the 2014 distribution under Minnesota Statutes, section 298.28.
247.34 Section 1. Minnesota Statutes 2012, section 118A.04, subdivision 3, is amended to read:
248.1 Subd. 3. State and local securities. Funds may be invested in the following:
248.2(1) any security which is a general obligation of any state or local government with
248.3taxing powers which is rated "A" or better by a national bond rating service;
248.4(2) any security which is a revenue obligation of any state or local governmentwith
248.5taxing powers which is rated "AA" or better by a national bond rating service; and
248.6(3) a general obligation of the Minnesota housing finance agency which is a moral
248.7obligation of the state of Minnesota and is rated "A" or better by a national bond rating
248.8agency.; and
248.9(4) any security which is an obligation of a school district with an original maturity
248.10not exceeding 13 months and (i) rated in the highest category by a national bond rating
248.11service or (ii) enrolled in the credit enhancement program pursuant to section 126C.55.
248.12 Sec. 2. Minnesota Statutes 2012, section 118A.05, subdivision 5, is amended to read:
248.13 Subd. 5. Guaranteed investment contracts. Agreements or contracts for
248.14guaranteed investment contracts may be entered into if they are issued or guaranteed
248.15by United States commercial banks, domestic branches of foreign banks, United States
248.16insurance companies, or their Canadian subsidiaries, or the domestic affiliates of any
248.17of the foregoing. The credit quality of the issuer's or guarantor's short- and long-term
248.18unsecured debt must be rated in one of the two highest categories by a nationally
248.19recognized rating agency. Agreements or contracts for guaranteed investment contracts
248.20with a term of 18 months or less may be entered into regardless of the credit quality of
248.21the issuer's or guarantor's long-term unsecured debt, provided that the credit quality of
248.22the issuer's short-term unsecured debt is rated in the highest category by a nationally
248.23recognized rating agency. Should the issuer's or guarantor's credit quality be downgraded
248.24below "A", the government entity must have withdrawal rights.
248.25 Sec. 3. Minnesota Statutes 2012, section 216C.436, subdivision 7, is amended to read:
248.26 Subd. 7. Repayment. An implementing entity that finances an energy improvement
248.27under this section must:
248.28(1) secure payment with a lien against thebenefited qualifying real property; and
248.29(2) collect repayments as a special assessment as provided for in section429.101
248.30or by charter, provided that special assessments may be made payable in up to 20 equal
248.31annual installments.
248.32If the implementing entity is an authority, the local government that authorized
248.33the authority to act as implementing entity shall impose and collect special assessments
249.1necessary to pay debt service on bonds issued by the implementing entity under subdivision
249.28, and shall transfer all collections of the assessments upon receipt to the authority.
249.3EFFECTIVE DATE.This section is effective the day following final enactment.
249.4 Sec. 4. Minnesota Statutes 2012, section 373.01, subdivision 3, is amended to read:
249.5 Subd. 3. Capital notes. (a) A county board may, by resolution and without
249.6referendum, issue capital notes subject to the county debt limit to purchase capital
249.7equipment useful for county purposes that has an expected useful life at least equal to the
249.8term of the notes. The notes shall be payable in not more than ten years and shall be
249.9issued on terms and in a manner the board determines. A tax levy shall be made for
249.10payment of the principal and interest on the notes, in accordance with section475.61 ,
249.11as in the case of bonds.
249.12 (b) For purposes of this subdivision, "capital equipment" means:
249.13 (1) public safety, ambulance, road construction or maintenance, and medical
249.14equipment; and
249.15 (2) computer hardware and software, whether bundled with machinery or equipment
249.16or unbundled, together with application development services and training related to the
249.17use of the computer hardware or software.
249.18 Sec. 5. Minnesota Statutes 2012, section 373.40, subdivision 1, is amended to read:
249.19 Subdivision 1. Definitions. For purposes of this section, the following terms have
249.20the meanings given.
249.21(a) "Bonds" means an obligation as defined under section475.51 .
249.22(b) "Capital improvement" means acquisition or betterment of public lands,
249.23buildings, or other improvements within the county for the purpose of a county courthouse,
249.24administrative building, health or social service facility, correctional facility, jail, law
249.25enforcement center, hospital, morgue, library, park, qualified indoor ice arena, roads
249.26and bridges, public works facilities, fairground buildings, and records and data storage
249.27facilities, and the acquisition of development rights in the form of conservation easements
249.28under chapter 84C. An improvement must have an expected useful life of five years or more
249.29to qualify. "Capital improvement" does not include a recreation or sports facility building
249.30(such as, but not limited to, a gymnasium, ice arena, racquet sports facility, swimming
249.31pool, exercise room or health spa), unless the building is part of an outdoor park facility
249.32and is incidental to the primary purpose of outdoor recreation. For purposes of this section,
249.33"capital improvement" includes expenditures for purposes described in this paragraph that
249.34have been incurred by a county before approval of a capital improvement plan, if such
250.1expenditures are included in a capital improvement plan approved on or before the date of
250.2the public hearing under subdivision 2 regarding issuance of bonds for such expenditures.
250.3(c) "Metropolitan county" means a county located in the seven-county metropolitan
250.4area as defined in section473.121 or a county with a population of 90,000 or more.
250.5(d) "Population" means the population established by the most recent of the
250.6following (determined as of the date the resolution authorizing the bonds was adopted):
250.7(1) the federal decennial census,
250.8(2) a special census conducted under contract by the United States Bureau of the
250.9Census, or
250.10(3) a population estimate made either by the Metropolitan Council or by the state
250.11demographer under section4A.02 .
250.12(e) "Qualified indoor ice arena" means a facility that meets the requirements of
250.13section373.43 .
250.14(f) "Tax capacity" means total taxable market value, but does not include captured
250.15market value.
250.16 Sec. 6. Minnesota Statutes 2012, section 373.40, subdivision 2, is amended to read:
250.17 Subd. 2. Application of election requirement. (a) Bonds issued by a county
250.18to finance capital improvements under an approved capital improvement plan are not
250.19subject to the election requirements of section375.18 or
475.58 . The bonds must be
250.20approved by vote of at least three-fifths of the members of the county board. In the case
250.21of a metropolitan county, the bonds must be approved by vote of at least two-thirds of
250.22the members of the county board.
250.23(b) Before issuance of bonds qualifying under this section, the county must publish
250.24a notice of its intention to issue the bonds and the date and time of a hearing to obtain
250.25public comment on the matter. The notice must be published in the official newspaper
250.26of the county or in a newspaper of general circulation in the county. The notice must be
250.27published at least 14, but not more than 28, days before the date of the hearing.
250.28(c) A county may issue the bonds only upon obtaining the approval of a majority of
250.29the voters voting on the question of issuing the obligations, if a petition requesting a vote
250.30on the issuance is signed by voters equal to five percent of the votes cast in the county in
250.31the last county general election and is filed with the county auditor within 30 days after
250.32the public hearing.The commissioner of revenue shall prepare a suggested form of the
250.33question to be presented at the election. If the county elects not to submit the question to
250.34the voters, the county shall not propose the issuance of bonds under this section for the
250.35same purpose and in the same amount for a period of 365 days from the date of receipt
251.1of the petition. If the question of issuing the bonds is submitted and not approved by the
251.2voters, the provisions of section 475.58, subdivision 1a, shall apply.
251.3 Sec. 7. Minnesota Statutes 2012, section 383D.41, is amended by adding a subdivision
251.4to read:
251.5 Subd. 10. Housing improvement areas. (a) In addition to its other powers, the
251.6Dakota County Community Development Agency shall have all powers of a city under
251.7sections 428A.11 to 428A.21 in connection with housing improvement areas in Dakota
251.8County.
251.9(b) For purposes of the Dakota County Community Development Agency's exercise
251.10of the powers granted in this subdivision, references in sections 428A.11 to 428A.21 to:
251.11(1) a "mayor" shall be references to the chair of the board of commissioners of the
251.12Dakota County Community Development Agency;
251.13(2) a "council" shall be references to the board of commissioners of the Dakota
251.14County Community Development Agency; and
251.15(3) a "city clerk" shall be references to an official of the Dakota County Community
251.16Development Agency designated by the executive director of the Dakota County
251.17Community Development Agency.
251.18(c) Notwithstanding sections 428A.11, subdivision 3, and 428A.13, subdivision 1,
251.19the governing body of the Dakota County Community Development Agency may adopt
251.20a resolution, rather than an ordinance, establishing one or more housing improvement
251.21areas, and "enabling ordinance" for purposes of sections 428A.11 to 428A.21 means a
251.22resolution under this clause.
251.23(d) The community development agency (1) shall send a copy of each petition
251.24for the establishment of a housing improvement area to the city in which the proposed
251.25housing improvement area is located, and (2) may not hold the public hearing required in
251.26section 428A.13, subdivision 2, fewer than 30 days after the date on which the related
251.27application was sent pursuant to clause (1). The community development agency may
251.28not establish a housing improvement area if the applicable city council opposes the
251.29establishment by resolution adopted within 30 days after the petition required to be sent
251.30pursuant to clause (1).
251.31 Sec. 8. Minnesota Statutes 2012, section 410.32, is amended to read:
251.32410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.
252.1 (a) Notwithstanding any contrary provision of other law or charter, a home rule
252.2charter city may, by resolution and without public referendum, issue capital notes subject
252.3to the city debt limit to purchase capital equipment.
252.4 (b) For purposes of this section, "capital equipment" means:
252.5 (1) public safety equipment, ambulance and other medical equipment, road
252.6construction and maintenance equipment, and other capital equipment; and
252.7 (2) computer hardware and software, whether bundled with machinery or equipment
252.8or unbundled, together with application development services and training related to the
252.9use of the computer hardware and software.
252.10 (c) The equipment or software must have an expected useful life at least as long
252.11as the term of the notes.
252.12 (d) The notes shall be payable in not more than ten years and be issued on terms and
252.13in the manner the city determines. The total principal amount of the capital notes issued
252.14in a fiscal year shall not exceed 0.03 percent of the market value of taxable property
252.15in the city for that year.
252.16 (e) A tax levy shall be made for the payment of the principal and interest on the
252.17notes, in accordance with section475.61 , as in the case of bonds.
252.18 (f) Notes issued under this section shall require an affirmative vote of two-thirds of
252.19the governing body of the city.
252.20 (g) Notwithstanding a contrary provision of other law or charter, a home rule charter
252.21city may also issue capital notes subject to its debt limit in the manner and subject to the
252.22limitations applicable to statutory cities pursuant to section412.301 .
252.23 Sec. 9. Minnesota Statutes 2012, section 412.301, is amended to read:
252.24412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.
252.25 (a) The council may issue certificates of indebtedness or capital notes subject to the
252.26city debt limits to purchase capital equipment.
252.27 (b) For purposes of this section, "capital equipment" means:
252.28 (1) public safety equipment, ambulance and other medical equipment, road
252.29construction and maintenance equipment, and other capital equipment; and
252.30 (2) computer hardware and software, whether bundled with machinery or equipment
252.31or unbundled, together with application development services and training related to the
252.32use of the computer hardware or software.
252.33 (c) The equipment or software must have an expected useful life at least as long as
252.34the terms of the certificates or notes.
253.1 (d) Such certificates or notes shall be payable in not more than ten years and shall be
253.2issued on such terms and in such manner as the council may determine.
253.3 (e) If the amount of the certificates or notes to be issued to finance any such purchase
253.4exceeds 0.25 percent of the market value of taxable property in the city, they shall not
253.5be issued for at least ten days after publication in the official newspaper of a council
253.6resolution determining to issue them; and if before the end of that time, a petition asking
253.7for an election on the proposition signed by voters equal to ten percent of the number of
253.8voters at the last regular municipal election is filed with the clerk, such certificates or notes
253.9shall not be issued until the proposition of their issuance has been approved by a majority
253.10of the votes cast on the question at a regular or special election.
253.11 (f) A tax levy shall be made for the payment of the principal and interest on such
253.12certificates or notes, in accordance with section475.61 , as in the case of bonds.
253.13 Sec. 10. Minnesota Statutes 2012, section 473.39, is amended by adding a subdivision
253.14to read:
253.15 Subd. 1s. Obligations. After July 1, 2013, in addition to other authority in this
253.16section, the council may issue certificates of indebtedness, bonds, or other obligations
253.17under this section in an amount not exceeding $35,800,000 for capital expenditures as
253.18prescribed in the council's transit capital improvement program and for related costs,
253.19including the costs of issuance and sale of the obligations.
253.20EFFECTIVE DATE.This section is effective the day following final enactment
253.21and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and
253.22Washington. This section is not effective if the legislature authorizes and enacts issuance
253.23authority of at least $35,800,000 in 2013 H.F. No. 1444. If the legislature authorizes and
253.24enacts issuance authority of less than $35,800,000 in 2013 H.F. No. 1444, this section
253.25prevails, regardless of order of enactment.
253.26 Sec. 11. Minnesota Statutes 2012, section 473.606, subdivision 3, is amended to read:
253.27 Subd. 3. Treasurer; investments. The treasurer shall receive and be responsible
253.28for all moneys of the corporation, from whatever source derived, and the same shall be
253.29considered public funds. The treasurer shall disburse the moneys of the corporation only
253.30on orders made by the executive and operating officer, herein provided for, countersigned
253.31by such other officer or such employee of the corporation as may be authorized and
253.32directed so to do by the corporation, showing the name of the claimant and the nature of
253.33the claim. No disbursement shall be certified by such officers until the same have been
253.34approved by said commissioners at a meeting thereof. Whenever the executive director of
254.1the corporation shall certify, pursuant to action taken by the commissioners at a meeting
254.2thereof, that there are moneys and the amount thereof in the possession of the treasurer not
254.3currently needed, then the treasurer may invest said amount or any part thereof in:
254.4(a) Treasury bonds, certificates of indebtedness, bonds or notes of the United States
254.5of America, or bonds, notes or certificates of indebtedness of the state of Minnesota, all of
254.6which must mature not later than three years from the date of purchase.
254.7(b) Bonds, notes, debentures or other obligations issued by any agency or
254.8instrumentality of the United States or any securities guaranteed by the United States
254.9government, or for which the credit of the United States is pledged for the payment of
254.10the principal and interest thereof, all of which must mature not later than three years
254.11from date of purchase.
254.12(c) Commercial paper of prime quality, or rated among the top third of the quality
254.13categories, not applicable to defaulted paper, as defined by a nationally recognized
254.14organization which rates such securities as eligible for investment in the state employees
254.15retirement fund except that any nonbanking issuing corporation, or parent company in the
254.16case of paper issued by operating utility or finance subsidiaries, must have total assets
254.17exceeding $500,000,000. Such commercial paper may constitute no more than 30 percent
254.18of the book value of the fund at the time of purchase, and the commercial paper of any
254.19one corporation shall not constitute more than four percent of the book value of the fund
254.20at the time of such investment.
254.21(d) Any securities eligible under the preceding provisions, purchased with
254.22simultaneous repurchase agreement under which the securities will be sold to the particular
254.23dealer on a specified date at a predetermined price. In such instances, all maturities of
254.24United States government securities, or securities issued or guaranteed by the United
254.25States government or an agency thereof, may be purchased so long as any such securities
254.26which mature later than three years from the date of purchase have a current market
254.27value exceeding the purchase price by at least five percent on the date of purchase, and
254.28so long as such repurchase agreement involving securities extending beyond three years
254.29in maturity be limited to a period not exceeding 45 days.
254.30(e) Certificates of deposit issued by any official depository of the commission. The
254.31commission may purchase certificates of deposit from a depository bank in an amount
254.32exceeding that insured by federal depository insurance to the extent that those certificates
254.33are secured by collateral maintained by the bank in a manner as prescribed for investments
254.34of the State Board of Investment.
254.35(f) securities approved for investment under section 118A.04.
255.1Whenever it shall appear to the commissioners that any invested funds are needed
255.2for current purposes before the maturity dates of the securities held, they shall cause the
255.3executive director to so certify to the treasurer and it shall then be the duty of the treasurer
255.4to order the sale or conversion into cash of the securities in the amount so certified. All
255.5interest and profit on said investments shall be credited to and constitute a part of the
255.6funds of the commission. The treasurer shall keep an account of all moneys received
255.7and disbursed, and at least once a year, at times to be designated by the corporation, file
255.8with the secretary a financial statement of the corporation, showing in appropriate and
255.9identifiable groupings the receipts and disbursements since the last approved statements;
255.10moneys on hand and the purposes for which the same are appropriated; and shall keep an
255.11account of all securities purchased as herein provided, the funds from which purchased
255.12and the interest and profit which may have accrued thereon, and shall accompany the
255.13financial statement aforesaid with a statement setting forth such account. The corporation
255.14may pay to the treasurer from time to time compensation in such amount as it may
255.15determine to cover clerk hire to enable the treasurer to carry out duties and those required
255.16in connection with bonds issued by the corporation as in this act authorized.
255.17 Sec. 12. Minnesota Statutes 2012, section 474A.04, subdivision 1a, is amended to read:
255.18 Subd. 1a. Entitlement reservations; carryforward; deduction. Any amount
255.19returned by an entitlement issuer before July 15 shall be reallocated through the housing
255.20pool. Any amount returned on or after July 15 shall be reallocated through the unified
255.21pool. An amount returned after the last Monday in November shall be reallocated to the
255.22Minnesota Housing Finance Agency.Any amount of bonding authority that an entitlement
255.23issuer carries forward under federal tax law that is not permanently issued or for which
255.24the governing body of the entitlement issuer has not enacted a resolution electing to use
255.25the authority for mortgage credit certificates and has not provided a notice of issue to the
255.26commissioner before 4:30 p.m. on the last business day in December of the succeeding
255.27calendar year shall be deducted from the entitlement allocation for that entitlement issuer
255.28in the next succeeding calendar year. Any amount deducted from an entitlement issuer's
255.29allocation under this subdivision shall be reallocated to other entitlement issuers, the
255.30housing pool, the small issue pool, and the public facilities pool on a proportional basis
255.31consistent with section
474A.03.
255.32EFFECTIVE DATE.This section is effective the day following final enactment
255.33and applies to any bonding authority allocated in 2012 and subsequent years.
255.34 Sec. 13. Minnesota Statutes 2012, section 474A.062, is amended to read:
256.1474A.062 MINNESOTA OFFICE OF HIGHER EDUCATION 120-DAY
256.2ISSUANCE EXEMPTION.
256.3 The Minnesota Office of Higher Education is exempt from the 120-day issuance
256.4requirements in this chapter and may carry forward allocations for student loan bondsinto
256.5one successive calendar year, subject to carryforward notice requirements of section
256.6474A.131, subdivision 2
.
256.7EFFECTIVE DATE.This section is effective the day following final enactment
256.8and applies to any bonding authority allocated in 2012 and subsequent years.
256.9 Sec. 14. Minnesota Statutes 2012, section 474A.091, subdivision 3a, is amended to read:
256.10 Subd. 3a. Mortgage bonds. (a) Bonding authority remaining in the unified pool on
256.11October 1 is available for single-family housing programs for cities that applied in January
256.12and received an allocation under section474A.061, subdivision 2a , in the same calendar
256.13year. The Minnesota Housing Finance Agency shall receive an allocation for mortgage
256.14bonds pursuant to this section, minus any amounts for a city or consortium that intends to
256.15issue bonds on its own behalf under paragraph (c).
256.16 (b) The agency may issue bonds on behalf of participating cities. The agency shall
256.17request an allocation from the commissioner for all applicants who choose to have the
256.18agency issue bonds on their behalf and the commissioner shall allocate the requested
256.19amount to the agency. Allocations shall be awarded by the commissioner each Monday
256.20commencing on the first Monday in October through the last Monday in November for
256.21applications received by 4:30 p.m. on the Monday of the week preceding an allocation.
256.22 For cities who choose to have the agency issue bonds on their behalf, allocations
256.23will be made loan by loan, on a first-come, first-served basis among the cities. The
256.24agency shall submit an application fee pursuant to section474A.03, subdivision 4 , and an
256.25application deposit equal to two percent of the requested allocation to the commissioner
256.26when requesting an allocation from the unified pool. After awarding an allocation and
256.27receiving a notice of issuance for mortgage bonds issued on behalf of the participating
256.28cities, the commissioner shall transfer the application deposit to the Minnesota Housing
256.29Finance Agency.
256.30 For purposes of paragraphs (a) to (d), "city" means a county or a consortium of
256.31local government units that agree through a joint powers agreement to apply together
256.32for single-family housing programs, and has the meaning given it in section462C.02,
256.33subdivision 6 . "Agency" means the Minnesota Housing Finance Agency.
256.34 (c) Any city that received an allocation pursuant to section474A.061, subdivision
256.352a, paragraph (f) , in the current year that wishes to receive an additional allocation from
257.1the unified pool and issue bonds on its own behalf or pursuant to a joint powers agreement
257.2shall notify the Minnesota Housing Finance Agency by the third Monday in September.
257.3The total amount of allocation for mortgage bonds for a city choosing to issue bonds on its
257.4own behalf or through a joint powers agreement is limited to the lesser of: (i) the amount
257.5requested, or (ii) the product of the total amount available for mortgage bonds from the
257.6unified pool, multiplied by the ratio of the population of each city that applied in January
257.7and received an allocation under section474A.061, subdivision 2a , in the same calendar
257.8year, as determined by the most recent estimate of the city's population released by the
257.9state demographer's office to the total of the population of all the cities that applied in
257.10January and received an allocation under section474A.061, subdivision 2a , in the same
257.11calendar year. If a city choosing to issue bonds on its own behalf or through a joint powers
257.12agreement is located within a county that has also chosen to issue bonds on its own behalf
257.13or through a joint powers agreement, the city's population will be deducted from the
257.14county's population in calculating the amount of allocations under this paragraph.
257.15 The Minnesota Housing Finance Agency shall notify each city choosing to issue
257.16bonds on its own behalf or pursuant to a joint powers agreement of the amount of its
257.17allocation by October 15. Upon determining the amount of the allocation of each choosing
257.18to issue bonds on its own behalf or through a joint powers agreement, the agency shall
257.19forward a list specifying the amounts allotted to each city.
257.20 A city that chooses to issue bonds on its own behalf or through a joint powers
257.21agreement may request an allocation from the commissioner by forwarding an application
257.22with an application fee pursuant to section474A.03, subdivision 4 , and an application
257.23deposit equal to two percent of the requested amount to the commissioner no later than
257.244:30 p.m. on the Monday of the week preceding an allocation. Allocations to cities that
257.25choose to issue bonds on their own behalf shall be awarded by the commissioner on
257.26the first Monday after October 15 through the last Monday in November. No city may
257.27receive an allocation from the commissioner after the last Monday in November. The
257.28commissioner shall allocate the requested amount to the city or cities subject to the
257.29limitations under this subdivision.
257.30 If a city issues mortgage bonds from an allocation received under this paragraph,
257.31the issuer must provide for the recycling of funds into new loans. If the issuer is not
257.32able to provide for recycling, the issuer must notify the commissioner in writing of the
257.33reason that recycling was not possible and the reason the issuer elected not to have the
257.34Minnesota Housing Finance Agency issue the bonds. "Recycling" means the use of money
257.35generated from the repayment and prepayment of loans for further eligible loans or for the
257.36redemption of bonds and the issuance of current refunding bonds.
258.1 (d) No entitlement city or county or city in an entitlement county may apply for or
258.2be allocated authority to issue mortgage bonds or use mortgage credit certificates from
258.3the unified pool.
258.4 (e) An allocation awarded to the agency for mortgage bonds under this section
258.5may be carried forward by the agencyinto the next succeeding calendar year subject to
258.6notice requirements under section474A.131 and is available until the last business day in
258.7December of that succeeding calendar year.
258.8EFFECTIVE DATE.This section is effective the day following final enactment
258.9and applies to any bonding authority allocated in 2012 and subsequent years.
258.10 Sec. 15. Minnesota Statutes 2012, section 475.521, subdivision 1, is amended to read:
258.11 Subdivision 1. Definitions. For purposes of this section, the following terms have
258.12the meanings given.
258.13(a) "Bonds" mean an obligation defined under section475.51 .
258.14(b) "Capital improvement" means acquisition or betterment of public lands,
258.15buildings or other improvements for the purpose of a city hall, town hall, library, public
258.16safety facility, and public works facility. An improvement must have an expected useful
258.17life of five years or more to qualify. Capital improvement does not include light rail transit
258.18or any activity related to it, or a park, road, bridge, administrative building other than a
258.19city or town hall, or land for any of those facilities. For purposes of this section, "capital
258.20improvement" includes expenditures for purposes described in this paragraph that have
258.21been incurred by a municipality before approval of a capital improvement plan, if such
258.22expenditures are included in a capital improvement plan approved on or before the date of
258.23the public hearing under subdivision 2 regarding issuance of bonds for such expenditures.
258.24(c) "Municipality" means a home rule charter or statutory city or a town described in
258.25section368.01, subdivision 1 or 1a.
258.26 Sec. 16. Minnesota Statutes 2012, section 475.521, subdivision 2, is amended to read:
258.27 Subd. 2. Election requirement. (a) Bonds issued by a municipality to finance
258.28capital improvements under an approved capital improvements plan are not subject to the
258.29election requirements of section475.58 . The bonds must be approved by an affirmative
258.30vote of three-fifths of the members of a five-member governing body. In the case of a
258.31governing body having more or less than five members, the bonds must be approved by a
258.32vote of at least two-thirds of the members of the governing body.
258.33(b) Before the issuance of bonds qualifying under this section, the municipality
258.34must publish a notice of its intention to issue the bonds and the date and time of the
259.1hearing to obtain public comment on the matter. The notice must be published in the
259.2official newspaper of the municipality or in a newspaper of general circulation in the
259.3municipality. Additionally, the notice may be posted on the official Web site, if any, of the
259.4municipality. The notice must be published at least 14 but not more than 28 days before
259.5the date of the hearing.
259.6(c) A municipality may issue the bonds only after obtaining the approval of a
259.7majority of the voters voting on the question of issuing the obligations, if a petition
259.8requesting a vote on the issuance is signed by voters equal to five percent of the votes cast
259.9in the municipality in the last municipal general election and is filed with the clerk within
259.1030 days after the public hearing.The commissioner of revenue shall prepare a suggested
259.11form of the question to be presented at the election. If the municipality elects not to submit
259.12the question to the voters, the municipality shall not propose the issuance of bonds under
259.13this section for the same purpose and in the same amount for a period of 365 days from the
259.14date of receipt of the petition. If the question of issuing the bonds is submitted and not
259.15approved by the voters, the provisions of section 475.58, subdivision 1a, shall apply.
259.16 Sec. 17. Minnesota Statutes 2012, section 475.58, subdivision 3b, is amended to read:
259.17 Subd. 3b. Street reconstruction and bituminous overlays. (a) A municipality may,
259.18without regard to the election requirement under subdivision 1, issue and sell obligations
259.19for street reconstruction or bituminous overlays, if the following conditions are met:
259.20 (1) the streets are reconstructed or overlaid under a street reconstruction or overlay
259.21plan that describes the street reconstruction or overlay to be financed, the estimated costs,
259.22and any planned reconstruction or overlay of other streets in the municipality over the
259.23next five years, and the plan and issuance of the obligations has been approved by a vote
259.24of all of the members of the governing body present at the meeting following a public
259.25hearing for which notice has been published in the official newspaper at least ten days but
259.26not more than 28 days prior to the hearing; and
259.27 (2) if a petition requesting a vote on the issuance is signed by voters equal to
259.28five percent of the votes cast in the last municipal general election and is filed with the
259.29municipal clerk within 30 days of the public hearing, the municipality may issue the bonds
259.30only after obtaining the approval of a majority of the voters voting on the question of the
259.31issuance of the obligations. If the municipality elects not to submit the question to the
259.32voters, the municipality shall not propose the issuance of bonds under this section for the
259.33same purpose and in the same amount for a period of 365 days from the date of receipt
259.34of the petition. If the question of issuing the bonds is submitted and not approved by the
259.35voters, the provisions of section 475.58, subdivision 1a, shall apply.
260.1 (b) Obligations issued under this subdivision are subject to the debt limit of the
260.2municipality and are not excluded from net debt under section475.51, subdivision 4 .
260.3 (c) For purposes of this subdivision, street reconstruction and bituminous overlays
260.4includes utility replacement and relocation and other activities incidental to the street
260.5reconstruction, turn lanes and other improvements having a substantial public safety
260.6function, realignments, other modifications to intersect with state and county roads, and
260.7the local share of state and county road projects. For purposes of this subdivision, "street
260.8reconstruction" includes expenditures for street reconstruction that have been incurred
260.9by a municipality before approval of a street reconstruction plan, if such expenditures
260.10are included in a street reconstruction plan approved on or before the date of the public
260.11hearing under paragraph (a), clause (1), regarding issuance of bonds for such expenditures.
260.12 (d) Except in the case of turn lanes, safety improvements, realignments, intersection
260.13modifications, and the local share of state and county road projects, street reconstruction
260.14and bituminous overlays does not include the portion of project cost allocable to widening
260.15a street or adding curbs and gutters where none previously existed.
260.16 Sec. 18. Laws 1971, chapter 773, section 1, subdivision 2, as amended by Laws 1974,
260.17chapter 351, section 5, Laws 1976, chapter 234, sections 1 and 7, Laws 1978, chapter 788,
260.18section 1, Laws 1981, chapter 369, section 1, Laws 1983, chapter 302, section 1, Laws
260.191988, chapter 513, section 1, Laws 1992, chapter 511, article 9, section 23, Laws 1998,
260.20chapter 389, article 3, section 27, and Laws 2002, chapter 390, section 23, is amended to
260.21read:
260.22 Subd. 2. For each of the years2003 to 2013 to 2024, the city of St. Paul is
260.23authorized to issue bonds in the aggregate principal amount of $20,000,000 for each year.
260.24EFFECTIVE DATE.This section is effective the day after compliance by the
260.25governing body of the city of St. Paul with Minnesota Statutes, section 645.021,
260.26subdivisions 2 and 3.
260.27 Sec. 19. CARRYFORWARD OF BONDING AUTHORITY FOR 2011; NO
260.28DEDUCTION FROM ENTITLEMENT ALLOCATION.
260.29 Notwithstanding Minnesota Statutes, section 474A.04, subdivision 1a, bonding
260.30authority that was allocated to an entitlement issuer in 2011 and that was carried forward
260.31under federal tax law, but for which the entitlement issuer did not provide a notice of issue
260.32to the commissioner of management and budget before 4:30 p.m. on the last business
260.33day of December 2012 must not be deducted from the entitlement allocation for that
260.34entitlement issuer in 2013.
261.1EFFECTIVE DATE.This section is effective the day following final enactment
261.2and applies retroactively to rescind any reallocation by the commissioner of management
261.3and budget under Minnesota Statues, section 474A.04, subdivision 1a, of any amounts so
261.4deducted.
261.5 Sec. 20. LOCAL MATCH; INDEPENDENT SCHOOL DISTRICT NO. 435;
261.6WAUBUN-OGEMA-WHITE EARTH.
261.7(a) Independent School District No. 435, Waubun-Ogema-White Earth, may expand
261.8classroom space at its Ogema Elementary site using a grant of $551,532 that was awarded
261.9to the district by the Department of Human Services on August 12, 2012, pursuant to a
261.10grant agreement as provided by Minnesota Statutes, section 16A.695, subdivision 9.
261.11Notwithstanding Minnesota Statutes, section 16A.695, subdivision 6, to satisfy the match
261.12requirements of the grant agreement, the district may use a lease-purchase agreement.
261.13Notwithstanding Minnesota Statutes, section 465.71, the lease-purchase agreement must
261.14provide that the title to the lease-purchased property must be held by the district.
261.15(b) Notwithstanding Minnesota Statutes, section 126C.13, subdivision 4, if the
261.16school district enters a lease-purchase agreement to satisfy the local match under
261.17paragraph (a), but fails to make a lease-purchase payment, the commissioner of education
261.18shall reduce its general education aid under Minnesota Statutes, section 126C.13,
261.19subdivision 4, by the amount of the lease-purchase payment.
261.20EFFECTIVE DATE.This section is effective the day following final enactment.
261.21 Sec. 21. LEGISLATIVE OFFICE FACILITIES.
261.22(a) The commissioner of administration may enter into a long-term lease-purchase
261.23agreement for a term of up to 25 years, to predesign, design, construct, and equip offices,
261.24hearing rooms, and parking facilities for legislative and other functions. The facility must
261.25be located on the block bounded by Sherburne Avenue on the north, Park Street on the
261.26west, University Avenue on the south, and North Capitol Boulevard on the east. The
261.27legislative office facility must provide office accommodations for all senators and senate
261.28staff who do not have offices in the Capitol building and on-site parking facilities for all
261.29members and staff and disabled visitors to senate offices. A parking structure may also
261.30be built on the state-owned land located in the block bounded by Sherburne Avenue
261.31on the north, Park Street on the east, University Avenue on the south, and Rice Street
261.32on the west. The commissioner of management and budget may issue lease revenue
261.33bonds or certificates of participation associated with the lease-purchase agreement. The
261.34lease-purchase agreements must not be terminated, except for nonappropriation of
262.1money. The lease-purchase agreements must provide the state with a unilateral right to
262.2purchase the leased premises at specified times for specified amounts. The lease-purchase
262.3agreements are exempt from Minnesota Statutes, section 16B.24, subdivisions 6 and 6a.
262.4(b) The facilities under the lease-purchase agreement are exempt from the design
262.5competition requirement under Minnesota Statutes, section 15B.10. Notwithstanding
262.6anything to the contrary under Minnesota Statutes, sections 16C.32 and 16C.33, if the
262.7commissioner of administration elects to use a design-build delivery method to design and
262.8construct one or more facilities under this appropriation, the Capitol Area Architectural and
262.9Planning Board, in cooperation with the commissioner, shall create a selection committee
262.10to act as the board under Minnesota Statutes, sections 16C.32 and 16C.33, for the design
262.11and construction of the facilities. Notwithstanding Minnesota Statutes, section 16B.33, if
262.12the commissioner elects to contract with a primary designer to design one or more facilities
262.13under this appropriation, the Capitol Area Architectural and Planning Board, in cooperation
262.14with the commissioner, shall create a selection committee to conduct the selection process
262.15in accordance with standards under Minnesota Statutes, chapters 15B, 16B, and 16C. A
262.16selection committee created under this section must contain no more than seven members,
262.17including at least three representatives designated by the senate Committee on Rules and
262.18Administration and three representatives designated by the speaker of the house.
262.19(c) Notwithstanding any provision to the contrary in Minnesota Statutes, sections
262.2016C.32 and 16C.33, if the commissioner of administration elects to use a design-build
262.21delivery method to design, construct, and equip one or more facilities and associated
262.22infrastructure to provide audio and video broadcast services for the Capitol building, State
262.23Office Building, and a new legislative office building, if applicable, the commissioner
262.24shall create a selection committee to act as the board under Minnesota Statutes, sections
262.2516C.32 and 16C.33, to design, build, and equip the facilities. The selected design-builder
262.26may self-perform trade work or name an audio and video subcontractor as a member of
262.27the design-builder's team. If an audio and video subcontractor is named as a member of
262.28the design-builder's team, the design-builder is not required to competitively bid the trade
262.29work. Notwithstanding Minnesota Statutes, section 16C.33, subdivision 5, paragraph (b),
262.30after obtaining and evaluating qualifications from each design-builder, in accordance
262.31with the weighted criteria and subcriteria and procedures provided in the request for
262.32qualifications, the selection committee shall select a short list of up to five proposals. If
262.33the commissioner does not receive any proposals, the commissioner may either:
262.34(1) solicit new proposals;
262.35(2) revise the request for qualifications and thereafter solicit new proposals using
262.36the revised request for qualifications; or
263.1(3) request selection of a primary designer under Minnesota Statutes, section
263.216B.33, 16C.08, or 16C.095, and proceed with competitive bidding pursuant to Minnesota
263.3Statutes, sections 16C.25 to 16C.29.
263.4(d) The commissioner of administration may enter into a ground lease for state-owned
263.5property in the capitol area in conjunction with the execution of a lease-purchase
263.6agreement entered into under this section for any improvements constructed on that site.
263.7Notwithstanding the requirements of Minnesota Statutes, section 16A.695, subdivision 2,
263.8paragraph (b), the ground lease must be for a term equal to the term of the lease-purchase
263.9agreement, and must include an option to purchase the land at its then fair market value, if
263.10the improvements are not purchased by the state at the end of the term of the lease-purchase
263.11agreement, or at any earlier time that the lease-purchase agreement is terminated.
263.12(e) The commissioner of administration must not prepare final plans and
263.13specifications for any construction authorized under this section until the program plan
263.14and cost estimates for all elements necessary to complete the project have been approved
263.15by the senate Committee on Rules and Administration.
263.16(f) $3,000,000 is appropriated in fiscal year 2014 from the general fund to the
263.17commissioner of administration for predesign and design of facilities authorized under
263.18paragraph (a). This appropriation is available for expenditure the day following final
263.19enactment and until June 30, 2015.
263.20(g) The commissioner of administration may reserve a portion of money from
263.21appropriations for office space costs of the legislature to fund future repairs for facilities
263.22constructed under the authority provided in this section. Money reserved under this
263.23paragraph must be credited to a segregated account for each building in the special
263.24revenue fund and is appropriated to the commissioner to make the repairs. When the state
263.25acquires title to a building with an account established under this paragraph, the account
263.26for that building must be abolished and the balance remaining in the account must be
263.27transferred to the appropriate asset preservation and replacement account.
263.28EFFECTIVE DATE.This section is effective the day following final enactment.
263.29 Sec. 22. APPROPRIATION; RELOCATION EXPENSES.
263.30$1,860,000 is appropriated from the general fund to the commissioner of
263.31administration for rent loss and relocation expenses related to the Capitol renovation
263.32project for fiscal year 2014. Notwithstanding Minnesota Statutes, section 16A.642,
263.33this appropriation is available until June 30, 2015. The base for this appropriation is
263.34$1,380,000 in fiscal year 2016, $960,000 in fiscal year 2017, and $0 after that.
264.3 Section 1. Minnesota Statutes 2012, section 16A.727, is amended to read:
264.416A.727 BACKUP REVENUES; FOOTBALL STADIUM FUNDING.
264.5 (a) If the commissioner of management and budget determines that the amount of
264.6revenues under section297E.021, subdivision 2 , for the next fiscal year, plus $20,000,000,
264.7 will be less than the amounts specified in section297E.021, subdivision 3 , paragraph (a),
264.8 clause (1), items (i) to (iii), for that fiscal year, the commissioner may implement the
264.9revenue options authorized in Laws 2012, chapter 299, article 6; provided that this section
264.10does not constitute a pledge of tax revenues as security for the payment of principal and
264.11interest on appropriation bonds issued under section16A.695 . If the commissioner
264.12determines to exercise the authority under this section for a fiscal year, the commissioner
264.13must implement the revenue options, as necessary, in the following order:
264.14 (1) a sports-themed lottery game under section349A.20 ; and
264.15(2) a tax on suites as provided under section473J.14 .
264.16 (b) Revenue raised under the authority granted by this section must be deposited
264.17in the general fund.
264.18 (c) If the commissioner determines to implement one or more of the revenue options
264.19authorized by this section, each subsequent year the commissioner must determine if
264.20the revenue is needed and will be imposed and collected for the next fiscal year. If the
264.21commissioner determines that one or more revenue options implemented for a fiscal year
264.22are not needed for a subsequent fiscal year, the commissioner must terminate them in the
264.23reverse order they were required to be implemented by paragraph (a) with the last option
264.24implemented terminated first and so forth.
264.25 (d) Before implementing a revenue source authorized under this section, the
264.26commissioner must report the intent to do so to the Legislative Commission on Planning
264.27and Fiscal Policy. The commissioner must inform the commission of determinations to
264.28continue or discontinue each revenue source for a subsequent fiscal year.
264.29(e) The provisions of this section no longer apply after the Minnesota Sports
264.30Facilities Authority certifies to the commissioner that it has determined that the revenues
264.31of the general fund under section297A.994 , the increased revenues under chapter 297E,
264.32and other available resources of the authority provide adequate financial security for
264.33the state and the authority.
264.34EFFECTIVE DATE.This section is effective the day following final enactment.
265.1 Sec. 2. [116V.03] APPROPRIATION.
265.2$1,000,000 in fiscal year 2014 and each year thereafter is appropriated from the
265.3general fund to the commissioner of revenue for transfer to the agricultural project
265.4utilization account in the special revenue fund for the Agricultural Utilization Research
265.5Institute established under section 116V.01.
265.6 Sec. 3. Minnesota Statutes 2012, section 237.52, subdivision 3, is amended to read:
265.7 Subd. 3. Collection. Every provider of services capable of originating a TRS call,
265.8including cellular communications and other nonwire access services, in this state shall,
265.9except as provided in subdivision 3a, collect the charges established by the commission
265.10under subdivision 2 and transfer amounts collected to the commissioner of public
265.11safety in the same manner as provided in section403.11, subdivision 1 , paragraph (d).
265.12The commissioner of public safety must deposit the receipts in the fund established in
265.13subdivision 1.
265.14EFFECTIVE DATE.This section is effective January 1, 2014.
265.15 Sec. 4. Minnesota Statutes 2012, section 237.52, is amended by adding a subdivision
265.16to read:
265.17 Subd. 3a. Fee for prepaid wireless telecommunications service. The fee
265.18established in subdivision 2 does not apply to prepaid wireless telecommunications
265.19services as defined in section 403.02, subdivision 17b, which are instead subject to the
265.20prepaid wireless telecommunications access Minnesota fee established in section 403.161,
265.21subdivision 1, paragraph (b). Collection, remittance, and deposit of prepaid wireless
265.22telecommunications access Minnesota fees are governed by sections 403.161 and 403.162.
265.23EFFECTIVE DATE.This section is effective January 1, 2014.
265.24 Sec. 5. Minnesota Statutes 2012, section 270B.01, subdivision 8, is amended to read:
265.25 Subd. 8. Minnesota tax laws. For purposes of this chapter only, unless expressly
265.26stated otherwise, "Minnesota tax laws" means:
265.27 (1) the taxes, refunds, and fees administered by or paid to the commissioner under
265.28chapters 115B, 289A (except taxes imposed under sections298.01 ,
298.015 , and
298.24 ),
265.29290, 290A, 291, 295, 297A, 297B,and 297H, and 403, or any similar Indian tribal tax
265.30administered by the commissioner pursuant to any tax agreement between the state and
265.31the Indian tribal government, and includes any laws for the assessment, collection, and
265.32enforcement of those taxes, refunds, and fees; and
266.1 (2) section273.1315 .
266.2EFFECTIVE DATE.This section is effective January 1, 2014.
266.3 Sec. 6. Minnesota Statutes 2012, section 270B.12, subdivision 4, is amended to read:
266.4 Subd. 4. Department of Public Safety. The commissioner may disclose return
266.5information to the Department of Public Safety for the purpose of and to the extent
266.6necessary to administersection sections 270C.725 and 403.16 to 403.162.
266.7EFFECTIVE DATE.This section is effective January 1, 2014.
266.8 Sec. 7. Minnesota Statutes 2012, section 270C.03, subdivision 1, is amended to read:
266.9 Subdivision 1. Powers and duties. The commissioner shall have and exercise
266.10the following powers and duties:
266.11 (1) administer and enforce the assessment and collection of taxes;
266.12 (2) make determinations, corrections, and assessments with respect to taxes,
266.13including interest, additions to taxes, and assessable penalties;
266.14 (3) use statistical or other sampling techniques consistent with generally accepted
266.15auditing standards in examining returns or records and making assessments;
266.16 (4) investigate the tax laws of other states and countries, and formulate and submit
266.17to the legislature such legislation as the commissioner may deem expedient to prevent
266.18evasions of state revenue laws and to secure just and equal taxation and improvement in
266.19the system of state revenue laws;
266.20 (5) consult and confer with the governor upon the subject of taxation, the
266.21administration of the laws in regard thereto, and the progress of the work of the
266.22department, and furnish the governor, from time to time, such assistance and information
266.23as the governor may require relating to tax matters;
266.24 (6) execute and administer any agreement with the secretary of the treasury or the
266.25Bureau of Alcohol, Tobacco, Firearms and Explosives in the Department of Justice of the
266.26United States or a representative of another state regarding the exchange of information
266.27and administration of the state revenue laws;
266.28 (7) require town, city, county, and other public officers to report information as to the
266.29collection of taxes received from licenses and other sources, and such other information
266.30as may be needful in the work of the commissioner, in such form as the commissioner
266.31may prescribe;
266.32 (8) authorize the use of unmarked motor vehicles to conduct seizures or criminal
266.33investigations pursuant to the commissioner's authority;
267.1 (9) authorize the participation in audits performed by the Multistate Tax Commission.
267.2For the purposes of chapter 270B, the Multistate Tax Commission will be considered to be
267.3a state for the purposes of auditing corporate sales, excise, and income tax returns.
267.4 (10) maintain toll-free telephone access for taxpayer assistance for calls from
267.5locations within the state; and
267.6(10) (11) exercise other powers and authority and perform other duties required of or
267.7imposed upon the commissioner by law.
267.8EFFECTIVE DATE.This section is effective the day following final enactment.
267.9 Sec. 8. Minnesota Statutes 2012, section 271.06, subdivision 2a, as added by Laws
267.102013, chapter 36, section 1, is amended to read:
267.11 Subd. 2a. Timely mailing treated as timely filing. (a) If, after the period prescribed
267.12by subdivision 2, the original notice of appeal, proof of service upon the commissioner,
267.13and filing fee are delivered bymail in the United States mail to the Tax Court administrator
267.14or the court administrator of district court acting as court administrator of the Tax Court,
267.15then the date of filing is the date of the United States postmark stamped on the envelope
267.16or other appropriate wrapper in which the notice of appeal, proof of service upon the
267.17commissioner, and filing fee are mailed.
267.18(b) This subdivision applies only if the postmark date falls within the period
267.19prescribed by subdivision 2 and the original notice of appeal, proof of service upon the
267.20commissioner, and filing fee are, within the time prescribed by subdivision 2, deposited in
267.21the mail in the United States in an envelope or other appropriate wrapper, postage prepaid,
267.22properly addressed to the Tax Court administrator or the court administrator of district
267.23court acting as court administrator of the Tax Court.
267.24(c) Only the postmark of the United States Postal Service qualifies as proof of
267.25timely mailing under this subdivision. Private postage meters do not qualify as proof of
267.26timely filing under this subdivision. If the original notice of appeal, proof of service
267.27upon the commissioner, and filing fee are sent by United States registered mail, the date
267.28of registration is the postmark date. If the original notice of appeal, proof of service
267.29upon the commissioner, and filing fee are sent by United States certified mail and the
267.30sender's receipt is postmarked by the postal employee to whom the envelope containing
267.31the original notice of appeal, proof of service upon the commissioner, and filing fee is
267.32presented, the date of the United States postmark on the receipt is the postmark date.
267.33(d) A reference in this section tomail in the United States mail must be treated as
267.34including a reference to any designated delivery service and a reference in this section to
267.35a postmark by the United States Postal Service must be treated as including a reference
268.1to any date recorded or marked by any designated delivery service in accordance with
268.2section 7502(f) of the Internal Revenue Code.
268.3EFFECTIVE DATE.This section is effective for filings delivered by the United
268.4States Postal Service with a postmark date after August 1, 2013.
268.5 Sec. 9. Minnesota Statutes 2012, section 297E.021, subdivision 3, is amended to read:
268.6 Subd. 3. Available revenues. For purposes of this section, "available revenues"
268.7equals the amount determined under subdivision 2, plus up to $20,000,000 each fiscal year
268.8from the taxes imposed under section 290.06, subdivision 1:
268.9(1) reduced by the following amounts paid for the fiscal year under:
268.10 (i) the appropriation to principal and interest on appropriation bonds under section
268.1116A.965, subdivision 8
;
268.12 (ii) the appropriation from the general fund to make operating expense payments
268.13under section473J.13, subdivision 2 , paragraph (b);
268.14 (iii) the appropriation for contributions to the capital reserve fund under section
268.15473J.13, subdivision 4
, paragraph (c);
268.16 (iv) the appropriations under Laws 2012, chapter 299, article 4, for administration
268.17and any successor appropriation;
268.18 (v) the reduction in revenues resulting from the sales tax exemptions under section
268.19297A.71, subdivision 43
;
268.20 (vi) reimbursements authorized by section473J.15, subdivision 2 , paragraph (d);
268.21 (vii) the compulsive gambling appropriations under section297E.02, subdivision 3 ,
268.22paragraph (c), and any successor appropriation; and
268.23(viii) the appropriation for the city of St. Paul under section16A.726 , paragraph
268.24(c); and
268.25 (2) increased by the revenue deposited in the general fund under section297A.994 ,
268.26subdivision 4, clauses (1) to (3), for the fiscal year.
268.27EFFECTIVE DATE.This section is effective the day following final enactment.
268.28 Sec. 10. Minnesota Statutes 2012, section 403.02, is amended by adding a subdivision
268.29to read:
268.30 Subd. 17b. Prepaid wireless telecommunications service. "Prepaid wireless
268.31telecommunications service" means a wireless telecommunications service that allows the
268.32caller to dial 911 to access the 911 system, which service must be paid for in advance and is:
269.1(1) sold in predetermined units or dollars of which the number declines with use in a
269.2known amount; or
269.3(2) provides unlimited use for a predetermined time period.
269.4The inclusion of nontelecommunications services, including the download of digital
269.5products delivered electronically, content, and ancillary services, with a prepaid wireless
269.6telecommunications service does not preclude that service from being considered a
269.7prepaid wireless telecommunications service under this chapter.
269.8EFFECTIVE DATE.This section is effective January 1, 2014.
269.9 Sec. 11. Minnesota Statutes 2012, section 403.02, is amended by adding a subdivision
269.10to read:
269.11 Subd. 20a. Wireless telecommunications service. Wireless telecommunications
269.12service means a commercial mobile radio service, as that term is defined in United
269.13States Code, title 47, section 332, subsection (d), including all broadband personal
269.14communication services, wireless radio telephone services, and geographic area
269.15specialized mobile radio licensees, that offer real-time, two-way voice service
269.16interconnected with the public switched telephone network.
269.17EFFECTIVE DATE.This section is effective January 1, 2014.
269.18 Sec. 12. Minnesota Statutes 2012, section 403.02, subdivision 21, is amended to read:
269.19 Subd. 21. Wireless telecommunications service provider. "Wireless
269.20telecommunications service provider" means a provider ofcommercial mobile radio
269.21services, as that term is defined in United States Code, title 47, section 332, subsection
269.22(d), including all broadband personal communications services, wireless radio telephone
269.23services, geographic area specialized and enhanced specialized mobile radio services, and
269.24incumbent wide area specialized mobile radio licensees, that offers real-time, two-way
269.25voice service interconnected with the public switched telephone network and that is doing
269.26business in the state of Minnesota wireless telecommunications service.
269.27EFFECTIVE DATE.This section is effective January 1, 2014.
269.28 Sec. 13. Minnesota Statutes 2012, section 403.06, subdivision 1a, is amended to read:
269.29 Subd. 1a. Biennial budget; annual financial report. The commissioner shall
269.30prepare a biennial budget for maintaining the 911 system. By December 15 of each year,
269.31the commissioner shall submit a report to the legislature detailing the expenditures for
269.32maintaining the 911 system, the 911 fees collected, the balance of the 911 fund,and the
270.1911-related administrative expenses of the commissioner, and the most recent forecast of
270.2revenues and expenditures for the 911 emergency telecommunications service account,
270.3including a separate projection of E911 fees from prepaid wireless customers and
270.4projections of year-end fund balances. The commissioner is authorized to expend money
270.5that has been appropriated to pay for the maintenance, enhancements, and expansion
270.6of the 911 system.
270.7EFFECTIVE DATE.This section is effective the day following final enactment.
270.8 Sec. 14. Minnesota Statutes 2012, section 403.11, subdivision 1, is amended to read:
270.9 Subdivision 1. Emergency telecommunications service fee; account. (a) Each
270.10customer of a wireless or wire-line switched or packet-based telecommunications service
270.11provider connected to the public switched telephone network that furnishes service capable
270.12of originating a 911 emergency telephone call is assessed a fee based upon the number
270.13of wired or wireless telephone lines, or their equivalent, to cover the costs of ongoing
270.14maintenance and related improvements for trunking and central office switching equipment
270.15for 911 emergency telecommunications service, to offset administrative and staffing costs
270.16of the commissioner related to managing the 911 emergency telecommunications service
270.17program, to make distributions provided for in section403.113 , and to offset the costs,
270.18including administrative and staffing costs, incurred by the State Patrol Division of the
270.19Department of Public Safety in handling 911 emergency calls made from wireless phones.
270.20 (b) Money remaining in the 911 emergency telecommunications service account
270.21after all other obligations are paid must not cancel and is carried forward to subsequent
270.22years and may be appropriated from time to time to the commissioner to provide financial
270.23assistance to counties for the improvement of local emergency telecommunications
270.24services. The improvements may include providing access to 911 service for
270.25telecommunications service subscribers currently without access and upgrading existing
270.26911 service to include automatic number identification, local location identification,
270.27automatic location identification, and other improvements specified in revised county
270.28911 plans approved by the commissioner.
270.29 (c) The fee may not be less than eight cents nor more than 65 cents a month until
270.30June 30, 2008, not less than eight cents nor more than 75 cents a month until June 30,
270.312009, not less than eight cents nor more than 85 cents a month until June 30, 2010, and
270.32not less than eight cents nor more than 95 cents a month on or after July 1, 2010, for
270.33each customer access line or other basic access service, including trunk equivalents as
270.34designated by the Public Utilities Commission for access charge purposes and including
270.35wireless telecommunications services. With the approval of the commissioner of
271.1management and budget, the commissioner of public safety shall establish the amount of
271.2the fee within the limits specified and inform the companies and carriers of the amount to
271.3be collected. When the revenue bonds authorized under section403.27, subdivision 1 ,
271.4have been fully paid or defeased, the commissioner shall reduce the fee to reflect that debt
271.5service on the bonds is no longer needed. The commissioner shall provide companies and
271.6carriers a minimum of 45 days' notice of each fee change. The fee must be the same for all
271.7customers, except that the fee imposed under this subdivision does not apply to prepaid
271.8wireless telecommunications service, which is instead subject to the fee imposed under
271.9section 403.161, subdivision 1, paragraph (a).
271.10 (d) The fee must be collected by each wireless or wire-line telecommunications
271.11service provider subject to the fee. Fees are payable to and must be submitted to the
271.12commissioner monthly before the 25th of each month following the month of collection,
271.13except that fees may be submitted quarterly if less than $250 a month is due, or annually if
271.14less than $25 a month is due. Receipts must be deposited in the state treasury and credited
271.15to a 911 emergency telecommunications service account in the special revenue fund. The
271.16money in the account may only be used for 911 telecommunications services.
271.17 (e) This subdivision does not apply to customers of interexchange carriers.
271.18 (f) The installation and recurring charges for integrating wireless 911 calls into
271.19enhanced 911 systems are eligible for payment by the commissioner if the 911 service
271.20provider is included in the statewide design plan and the charges are made pursuant to
271.21contract.
271.22 (g) Competitive local exchanges carriers holding certificates of authority from the
271.23Public Utilities Commission are eligible to receive payment for recurring 911 services.
271.24EFFECTIVE DATE.This section is effective January 1, 2014.
271.25 Sec. 15. Minnesota Statutes 2012, section 403.11, is amended by adding a subdivision
271.26to read:
271.27 Subd. 3d. Eligible telecommunications carrier; requirement. No wireless
271.28communications provider may provide telecommunications services under a designation
271.29of eligible telecommunications carrier, as provided under Minnesota Rule 7811.1400,
271.30until and unless the commissioner of public safety certifies to the chair of the public
271.31utilities commission that the wireless telecommunications provider is not in arrears in
271.32amounts owed to the 911 emergency telecommunications service account in the special
271.33revenue fund.
271.34EFFECTIVE DATE.This section is effective the day following final enactment.
272.1 Sec. 16. Minnesota Statutes 2012, section 403.11, is amended by adding a subdivision
272.2to read:
272.3 Subd. 6. Report. (a) Beginning September 1, 2013, and continuing semiannually
272.4thereafter, each wireless telecommunications service provider shall report to the
272.5commissioner, based on the mobile telephone number, both the total number of prepaid
272.6wireless telecommunications subscribers sourced to Minnesota and the total number of
272.7wireless telecommunications subscribers sourced to Minnesota. The report must be filed
272.8on the same schedule as Federal Communications Commission Form 477.
272.9(b) The commissioner shall make a standard form available to all wireless
272.10telecommunications service providers for submitting information required to compile
272.11the report required under this subdivision.
272.12(c) The information provided to the commissioner under this subdivision is
272.13considered trade secret information under section 13.37 and may only be used for purposes
272.14of administering this chapter.
272.15EFFECTIVE DATE.This section is effective January 1, 2014.
272.16 Sec. 17. [403.16] DEFINITIONS.
272.17 Subdivision 1. Scope. For the purposes of sections 403.16 to 403.164, the terms
272.18defined in this section have the meanings given them.
272.19 Subd. 2. Consumer. "Consumer" means a person who purchases prepaid wireless
272.20telecommunications service in a retail transaction.
272.21 Subd. 3. Department. "Department" means the Department of Revenue.
272.22 Subd. 4. Prepaid wireless E911 fee. "Prepaid wireless E911 fee" means the fee that
272.23is required to be collected by a seller from a consumer as established in section 403.161,
272.24subdivision 1, paragraph (a).
272.25 Subd. 5. Prepaid wireless telecommunications access Minnesota fee. "Prepaid
272.26wireless telecommunications access Minnesota fee" means the fee that is required to be
272.27collected by a seller from a consumer as established in section 403.161, subdivision 1,
272.28paragraph (b).
272.29 Subd. 6. Provider. "Provider" means a person that provides prepaid wireless
272.30telecommunications service under a license issued by the Federal Communications
272.31Commission.
272.32 Subd. 7. Retail transaction. "Retail transaction" means the purchase of prepaid
272.33wireless telecommunications service from a seller for any purpose other than resale.
272.34 Subd. 8. Seller. "Seller" means a person who sells prepaid wireless
272.35telecommunications service to another person.
273.1EFFECTIVE DATE.This section is effective January 1, 2014.
273.2 Sec. 18. [403.161] PREPAID WIRELESS FEES IMPOSED; COLLECTION;
273.3REMITTANCE.
273.4 Subdivision 1. Fees imposed. (a) A prepaid wireless E911 fee of 80 cents per retail
273.5transaction is imposed on prepaid wireless telecommunications service until the fee is
273.6adjusted as an amount per retail transaction under subdivision 7.
273.7(b) A prepaid wireless telecommunications access Minnesota fee, in the amount of
273.8the monthly charge provided for in section 237.52, subdivision 2, is imposed on each
273.9retail transaction for prepaid wireless telecommunications service until the fee is adjusted
273.10as an amount per retail transaction under subdivision 7.
273.11 Subd. 2. Exemption. The fees established under subdivision 1 are not imposed on a
273.12minimal amount of prepaid wireless telecommunications service that is sold with a prepaid
273.13wireless device and is charged a single nonitemized price, and a seller may not apply the
273.14fees to such a transaction. For purposes of this subdivision, a minimal amount of service
273.15means an amount of service denominated as either ten minutes or less or $5 or less.
273.16 Subd. 3. Fee collected. The prepaid wireless E911 and telecommunications
273.17access Minnesota fees must be collected by the seller from the consumer for each retail
273.18transaction occurring in this state. The amount of each fee must be combined into one
273.19amount, which must be separately stated on an invoice, receipt, or other similar document
273.20that is provided to the consumer by the seller.
273.21 Subd. 4. Sales and use tax treatment. For purposes of this section, a retail
273.22transaction conducted in person by a consumer at a business location of the seller must
273.23be treated as occurring in this state if that business location is in this state, and any other
273.24retail transaction must be treated as occurring in this state if the retail transaction is treated
273.25as occurring in this state for purposes of the sales and use tax as specified in section
273.26297A.669, subdivision 3, paragraph (c).
273.27 Subd. 5. Remittance. The prepaid wireless E911 and telecommunications access
273.28Minnesota fees are the liability of the consumer and not of the seller or of any provider,
273.29except that the seller is liable to remit all fees as provided in section 403.162.
273.30 Subd. 6. Exclusion for calculating other charges. The combined amount of the
273.31prepaid wireless E911 and telecommunications access Minnesota fees collected by a seller
273.32from a consumer must not be included in the base for measuring any tax, fee, surcharge,
273.33or other charge that is imposed by this state, any political subdivision of this state, or
273.34any intergovernmental agency.
274.1 Subd. 7. Fee changes. (a) The prepaid wireless E911 and telecommunications
274.2access Minnesota fee must be proportionately increased or reduced upon any change to
274.3the fee imposed under section 403.11, subdivision 1, paragraph (c), after July 1, 2013, or
274.4the fee imposed under section 237.52, subdivision 2, as applicable.
274.5(b) The department shall post notice of any fee changes on its Web site at least 30
274.6days in advance of the effective date of the fee changes. It is the responsibility of sellers to
274.7monitor the department's Web site for notice of fee changes.
274.8(c) Fee changes are effective 60 days after the first day of the first calendar month
274.9after the commissioner of public safety or the Public Utilities Commission, as applicable,
274.10changes the fee.
274.11EFFECTIVE DATE.This section is effective January 1, 2014.
274.12 Sec. 19. [403.162] ADMINISTRATION OF PREPAID WIRELESS E911 FEES.
274.13 Subdivision 1. Remittance. Prepaid wireless E911 and telecommunications access
274.14Minnesota fees collected by sellers must be remitted to the commissioner of revenue
274.15at the times and in the manner provided by chapter 297A with respect to the general
274.16sales and use tax. The commissioner of revenue shall establish registration and payment
274.17procedures that substantially coincide with the registration and payment procedures that
274.18apply in chapter 297A.
274.19 Subd. 2. Seller's fee retention. A seller may deduct and retain three percent of
274.20prepaid wireless E911 and telecommunications access Minnesota fees collected by the
274.21seller from consumers.
274.22 Subd. 3. Department of Revenue provisions. The audit, assessment, appeal,
274.23collection, refund, penalty, interest, enforcement, and administrative provisions of
274.24chapters 270C and 289A that are applicable to the taxes imposed by chapter 297A apply
274.25to any fee imposed under section 403.161.
274.26 Subd. 4. Procedures for resale transactions. The commissioner of revenue shall
274.27establish procedures by which a seller of prepaid wireless telecommunications service
274.28may document that a sale is not a retail transaction. These procedures must substantially
274.29coincide with the procedures for documenting sale for resale transactions as provided in
274.30chapter 297A.
274.31 Subd. 5. Fees deposited. (a) The commissioner of revenue shall, based on
274.32the relative proportion of the prepaid wireless E911 fee and the prepaid wireless
274.33telecommunications access Minnesota fee imposed per retail transaction, divide the fees
274.34collected in corresponding proportions. Within 30 days of receipt of the collected fees,
274.35the commissioner shall:
275.1(1) deposit the proportion of the collected fees attributable to the prepaid wireless
275.2E911 fee in the 911 emergency telecommunications service account in the special revenue
275.3fund; and
275.4(2) deposit the proportion of collected fees attributable to the prepaid wireless
275.5telecommunications access Minnesota fee in the telecommunications access fund
275.6established in section 237.52, subdivision 1.
275.7(b) The department may deduct and retain an amount, not to exceed two percent of
275.8collected fees, to reimburse its direct costs of administering the collection and remittance
275.9of prepaid wireless E911 fees and prepaid wireless telecommunications access Minnesota
275.10fees.
275.11EFFECTIVE DATE.This section is effective January 1, 2014.
275.12 Sec. 20. [403.163] LIABILITY PROTECTION FOR SELLERS AND
275.13PROVIDERS.
275.14(a) A provider or seller of prepaid wireless telecommunications service is not liable
275.15for damages to any person resulting from or incurred in connection with providing any
275.16lawful assistance in good faith to any investigative or law enforcement officer of the
275.17United States, this or any other state, or any political subdivision of this or any other state.
275.18(b) In addition to the protection from liability provided by paragraph (a), section
275.19403.08, subdivision 11, applies to sellers and providers.
275.20EFFECTIVE DATE.This section is effective the day following final enactment.
275.21 Sec. 21. [403.164] EXCLUSIVITY OF PREPAID WIRELESS E911 FEE.
275.22The prepaid wireless E911 fee imposed by section 403.161 is the only E911 funding
275.23obligation imposed with respect to prepaid wireless telecommunications service in this
275.24state, and no tax, fee, surcharge, or other charge may be imposed by this state, any political
275.25subdivision of this state, or any intergovernmental agency, for E911 funding purposes,
275.26upon any provider, seller, or consumer with respect to the sale, purchase, use, or provision
275.27of prepaid wireless telecommunications service.
275.28EFFECTIVE DATE.This section is effective January 1, 2014.
275.29 Sec. 22. PURPOSE STATEMENTS; TAX EXPENDITURES.
275.30 Subdivision 1. Authority. This section is intended to fulfill the requirement under
275.31Minnesota Statutes, section 3.192, that a bill creating, renewing, or continuing a tax
276.1expenditure provide a purpose for the tax expenditure and a standard or goal against
276.2which its effectiveness may be measured.
276.3 Subd. 2. Federal conformity. The provisions of article 6 conforming Minnesota
276.4individual income tax to changes in federal law related to bonus depreciation and section
276.5179 expensing are intended to simplify compliance with and administration of the
276.6individual income tax.
276.7 Subd. 3. Sales tax exemption for certain aircraft parts and labor. The provisions
276.8of article 5 exempting parts and labor for certain aircraft, is intended to encourage the
276.9growth of the aviation services industry in the state.
276.10 Subd. 4. Railroad track maintenance subtraction. The provisions of article 6
276.11allowing an individual income and corporate franchise tax subtraction for the amount
276.12allowed under the federal credit for railroad maintenance expenses, are intended to
276.13increase the combined federal and state tax incentives available to Class II and Class III
276.14railroads for maintaining and upgrading track in Minnesota. The standard against which
276.15effectiveness is to be measured is the additional miles of track maintained or upgraded
276.16following allowance of the state tax subtraction in addition to the existing federal tax credit.
276.17 Subd. 5. Historic structure rehabilitation credit. The provisions of article 6
276.18extending the sunset date of the historic structure rehabilitation credit and modifying
276.19the effective date of the credit, are intended to encourage the preservation of historic
276.20structures in Minnesota and to create and retain jobs related to rehabilitation of historic
276.21structures in the state. The standard against which the effectiveness of the extension
276.22of the credit and modification of the effective date is to be measured is the number of
276.23jobs created through the rehabilitation of historic structures and the number of historic
276.24structures rehabilitated and placed in service.
276.25 Subd. 6. Greater Minnesota internship credit. The provisions of article 6
276.26providing a tax credit to employers of qualified interns, are intended to encourage
276.27Minnesota businesses to employ and provide valuable education and work experience
276.28to Minnesota students and foster long-term relationships between students and greater
276.29Minnesota employers. The standard against which the effectiveness of the extension of the
276.30credit is the number of students who participated in the program who were subsequently
276.31employed full time by the employer.
277.1 Subd. 7. Sales tax exemption for greater Minnesota business expansion. The
277.2provisions of article 8 are intended to induce existing businesses in greater Minnesota to
277.3increase investment and expand employment in greater Minnesota.
277.4 Subd. 8. Expansion of sales tax exemption on durable medical products and
277.5prosthetics. The provisions of article 8 expanding the definition of items included in
277.6repair and replacement parts of durable medical equipment and prosthetics and exempting
277.7Medicare and medicaid purchases is intended to simplify sales tax administration in this
277.8area and provide relief for sellers who cannot collect the tax under these programs.
277.9 Subd. 9. Sales tax exemption for established religious orders. The provisions
277.10of article 8 exempting certain sales between a religious order and an affiliated institute
277.11of higher education, is intended to retain an existing sales tax exemption that exists
277.12between St. John's Abbey and St. John's University after a governing restructure between
277.13the two entities.
277.14 Subd. 10. Sales tax exemption for certain dental providers. The provisions
277.15of article 8 exempting certain purchases by qualifying critical access dental providers,
277.16is intended to assist critical access dental providers in defraying the overall cost of the
277.17services they provide to underserved communities.
277.18 Subd. 11. Sales tax exemption for nursing homes and boarding care homes.
277.19The provisions of article 8 exempting certain nursing homes and boarding care homes is
277.20intended to clarify that an existing exemption for these facilities is not affected by a recent
277.21property tax case related to defining nonprofit organizations engaged in charitable activities.
277.22 Subd. 12. Construction sales tax exemptions. The provisions of article 8
277.23exempting from sales tax construction materials for various entities, are intended to
277.24increase jobs and reduce tax pyramiding by reducing the tax on inputs used to provide
277.25taxable goods and services.
277.26 Subd. 13. Sales tax exemption on certain public infrastructure. The provisions
277.27of article 10 exempting construction materials used in public infrastructure projects related
277.28to the destination medical center plan is intended to reduce city costs for those projects.
277.29EFFECTIVE DATE.This section is effective the day following final enactment.
277.30 Sec. 23. APPROPRIATIONS.
278.1(a) $950,000 is appropriated from the general fund to the commissioner of revenue
278.2in fiscal year 2014 for administering this act. This appropriation does not cancel but is
278.3available until June 30, 2015. $300,000 of this amount is added to the annual base budget.
278.4(b) $25,000 in fiscal year 2014 and $25,000 in fiscal year 2015 are appropriated
278.5from the general fund to the commissioner of employment and economic development for
278.6administering the provisions of article 10.
278.7EFFECTIVE DATE.This section is effective the day following final enactment.
278.8 Sec. 24. REPEALER.
278.9Minnesota Statutes 2012, sections 290.171; 290.173; and 290.174, are repealed.
278.12 Section 1. Minnesota Statutes 2012, section 38.18, is amended to read:
278.1338.18 COUNTY FAIRGROUNDS; IMPROVEMENT AIDED.
278.14Any Each town, statutory city, or school district in this state, now or hereafter at any
278.15time havinga an estimated market value of all its taxable property, exclusive of money and
278.16credits, of more than $105,000,000, and having a county fair located within its corporate
278.17limits,is hereby authorized to aid in defraying may pay part of the expense of improving
278.18any such the fairground, by appropriating and paying over to the treasurer of the county
278.19owning the fairgroundsuch sum of money, not exceeding $10,000, for each of the political
278.20subdivisions, as the its governing body of the town, statutory city, or school district may,
278.21by resolution,determine determines to be for the best interest of the political subdivision,.
278.22 Thesums so appropriated to amounts paid to the county must be used solely for the purpose
278.23of aiding in the improvement of to improve the fairground in such the manner as the county
278.24boardof the county shall determine determines to be for the best interest of the county.
278.25 Sec. 2. Minnesota Statutes 2012, section 40A.15, subdivision 2, is amended to read:
278.26 Subd. 2. Eligible recipients. All counties within the state, municipalities that prepare
278.27plans and official controls instead of a county, and districts are eligible for assistance
278.28under the program. Counties and districts may apply for assistance on behalf of other
278.29municipalities. In order to be eligible for financial assistance a county or municipality must
278.30agree to levy at least 0.01209 percent oftaxable estimated market value for agricultural
278.31land preservation and conservation activities or otherwise spend the equivalent amount of
278.32local money on those activities, or spend $15,000 of local money, whichever is less.
279.1 Sec. 3. Minnesota Statutes 2012, section 69.011, subdivision 1, is amended to read:
279.2 Subdivision 1. Definitions. Unless the language or context clearly indicates that
279.3a different meaning is intended, the following words and terms, for the purposes of this
279.4chapter and chapters 423, 423A, 424 and 424A, have the meanings ascribed to them:
279.5 (a) "Commissioner" means the commissioner of revenue.
279.6 (b) "Municipality" means:
279.7 (1) a home rule charter or statutory city;
279.8 (2) an organized town;
279.9 (3) a park district subject to chapter 398;
279.10 (4) the University of Minnesota;
279.11 (5) for purposes of the fire state aid program only, an American Indian tribal
279.12government entity located within a federally recognized American Indian reservation;
279.13 (6) for purposes of the police state aid program only, an American Indian tribal
279.14government with a tribal police department which exercises state arrest powers under
279.15section626.90 ,
626.91 ,
626.92 , or
626.93 ;
279.16 (7) for purposes of the police state aid program only, the Metropolitan Airports
279.17Commission; and
279.18 (8) for purposes of the police state aid program only, the Department of Natural
279.19Resources and the Department of Public Safety with respect to peace officers covered
279.20under chapter 352B.
279.21 (c) "Minnesota Firetown Premium Report" means a form prescribed by the
279.22commissioner containing space for reporting by insurers of fire, lightning, sprinkler
279.23leakage and extended coverage premiums received upon risks located or to be performed
279.24in this state less return premiums and dividends.
279.25 (d) "Firetown" means the area serviced by any municipality having a qualified fire
279.26department or a qualified incorporated fire department having a subsidiary volunteer
279.27firefighters' relief association.
279.28 (e) "Estimated market value" means latest available estimated market value of all
279.29property in a taxing jurisdiction, whether the property is subject to taxation, or exempt
279.30from ad valorem taxation obtained from information which appears on abstracts filed with
279.31the commissioner of revenue or equalized by the State Board of Equalization.
279.32 (f) "Minnesota Aid to Police Premium Report" means a form prescribed by the
279.33commissioner for reporting by each fire and casualty insurer of all premiums received
279.34upon direct business received by it in this state, or by its agents for it, in cash or otherwise,
279.35during the preceding calendar year, with reference to insurance written for insuring against
279.36the perils contained in auto insurance coverages as reported in the Minnesota business
280.1schedule of the annual financial statement which each insurer is required to file with
280.2the commissioner in accordance with the governing laws or rules less return premiums
280.3and dividends.
280.4 (g) "Peace officer" means any person:
280.5 (1) whose primary source of income derived from wages is from direct employment
280.6by a municipality or county as a law enforcement officer on a full-time basis of not less
280.7than 30 hours per week;
280.8 (2) who has been employed for a minimum of six months prior to December 31
280.9preceding the date of the current year's certification under subdivision 2, clause (b);
280.10 (3) who is sworn to enforce the general criminal laws of the state and local ordinances;
280.11 (4) who is licensed by the Peace Officers Standards and Training Board and is
280.12authorized to arrest with a warrant; and
280.13 (5) who is a member of the State Patrol retirement plan or the public employees
280.14police and fire fund.
280.15 (h) "Full-time equivalent number of peace officers providing contract service" means
280.16the integral or fractional number of peace officers which would be necessary to provide
280.17the contract service if all peace officers providing service were employed on a full-time
280.18basis as defined by the employing unit and the municipality receiving the contract service.
280.19 (i) "Retirement benefits other than a service pension" means any disbursement
280.20authorized under section424A.05, subdivision 3 , clauses (3) and (4).
280.21 (j) "Municipal clerk, municipal clerk-treasurer, or county auditor" means:
280.22 (1) for the police state aid program and police relief association financial reports:
280.23 (i) the person who was elected or appointed to the specified position or, in the
280.24absence of the person, another person who is designated by the applicable governing body;
280.25 (ii) in a park district, the secretary of the board of park district commissioners;
280.26 (iii) in the case of the University of Minnesota, the official designated by the Board
280.27of Regents;
280.28 (iv) for the Metropolitan Airports Commission, the person designated by the
280.29commission;
280.30 (v) for the Department of Natural Resources or the Department of Public Safety, the
280.31respective commissioner;
280.32 (vi) for a tribal police department which exercises state arrest powers under section
280.33626.90
,
626.91 ,
626.92 , or
626.93 , the person designated by the applicable American
280.34Indian tribal government; and
280.35 (2) for the fire state aid program and fire relief association financial reports, the
280.36person who was elected or appointed to the specified position, or, for governmental
281.1entities other than counties, if the governing body of the governmental entity designates
281.2the position to perform the function, the chief financial official of the governmental entity
281.3or the chief administrative official of the governmental entity.
281.4 (k) "Voluntary statewide lump-sum volunteer firefighter retirement plan" means the
281.5retirement plan established by chapter 353G.
281.6 Sec. 4. Minnesota Statutes 2012, section 69.021, subdivision 7, is amended to read:
281.7 Subd. 7. Apportionment of fire state aid to municipalities and relief associations.
281.8 (a) The commissioner shall apportion the fire state aid relative to the premiums reported
281.9on the Minnesota Firetown Premium Reports filed under this chapter to each municipality
281.10and/or firefighters relief association.
281.11 (b) The commissioner shall calculate an initial fire state aid allocation amount for
281.12each municipality or fire department under paragraph (c) and a minimum fire state aid
281.13allocation amount for each municipality or fire department under paragraph (d). The
281.14municipality or fire department must receive the larger fire state aid amount.
281.15 (c) The initial fire state aid allocation amount is the amount available for
281.16apportionment as fire state aid under subdivision 5, without inclusion of any additional
281.17funding amount to support a minimum fire state aid amount under section423A.02,
281.18subdivision 3 , allocated one-half in proportion to the population as shown in the last official
281.19statewide federal census for each fire town and one-half in proportion to the estimated
281.20market value of each fire town, including (1) the estimated market value of tax-exempt
281.21property and (2) the estimated market value of natural resources lands receiving in lieu
281.22payments under sections477A.11 to
477A.14 , but excluding the estimated market value
281.23of minerals. In the case of incorporated or municipal fire departments furnishing fire
281.24protection to other cities, towns, or townships as evidenced by valid fire service contracts
281.25filed with the commissioner, the distribution must be adjusted proportionately to take
281.26into consideration the crossover fire protection service. Necessary adjustments must be
281.27made to subsequent apportionments. In the case of municipalities or independent fire
281.28departments qualifying for the aid, the commissioner shall calculate the state aid for the
281.29municipality or relief association on the basis of the population and the estimated market
281.30value of the area furnished fire protection service by the fire department as evidenced by
281.31duly executed and valid fire service agreements filed with the commissioner. If one or
281.32more fire departments are furnishing contracted fire service to a city, town, or township,
281.33only the population and estimated market value of the area served by each fire department
281.34may be considered in calculating the state aid and the fire departments furnishing service
281.35shall enter into an agreement apportioning among themselves the percent of the population
282.1and the estimated market value of each service area. The agreement must be in writing
282.2and must be filed with the commissioner.
282.3 (d) The minimum fire state aid allocation amount is the amount in addition to the
282.4initial fire state allocation amount that is derived from any additional funding amount
282.5to support a minimum fire state aid amount under section423A.02, subdivision 3 , and
282.6allocated to municipalities with volunteer firefighters relief associations or covered by the
282.7voluntary statewide lump-sum volunteer firefighter retirement plan based on the number
282.8of active volunteer firefighters who are members of the relief association as reported
282.9in the annual financial reporting for the calendar year 1993 to the Office of the State
282.10Auditor, but not to exceed 30 active volunteer firefighters, so that all municipalities or
282.11fire departments with volunteer firefighters relief associations receive in total at least a
282.12minimum fire state aid amount per 1993 active volunteer firefighter to a maximum of
282.1330 firefighters. If a relief association is established after calendar year 1993 and before
282.14calendar year 2000, the number of active volunteer firefighters who are members of the
282.15relief association as reported in the annual financial reporting for calendar year 1998
282.16to the Office of the State Auditor, but not to exceed 30 active volunteer firefighters,
282.17shall be used in this determination. If a relief association is established after calendar
282.18year 1999, the number of active volunteer firefighters who are members of the relief
282.19association as reported in the first annual financial reporting submitted to the Office of
282.20the State Auditor, but not to exceed 20 active volunteer firefighters, must be used in this
282.21determination. If a relief association is terminated as a result of providing retirement
282.22coverage for volunteer firefighters by the voluntary statewide lump-sum volunteer
282.23firefighter retirement plan under chapter 353G, the number of active volunteer firefighters
282.24of the municipality covered by the statewide plan as certified by the executive director of
282.25the Public Employees Retirement Association to the commissioner and the state auditor,
282.26but not to exceed 30 active firefighters, must be used in this determination.
282.27 (e) Unless the firefighters of the applicable fire department are members of the
282.28voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid must
282.29be paid to the treasurer of the municipality where the fire department is located and the
282.30treasurer of the municipality shall, within 30 days of receipt of the fire state aid, transmit
282.31the aid to the relief association if the relief association has filed a financial report with the
282.32treasurer of the municipality and has met all other statutory provisions pertaining to the
282.33aid apportionment. If the firefighters of the applicable fire department are members of
282.34the voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid
282.35must be paid to the executive director of the Public Employees Retirement Association
282.36and deposited in the voluntary statewide lump-sum volunteer firefighter retirement fund.
283.1 (f) The commissioner may make rules to permit the administration of the provisions
283.2of this section.
283.3 (g) Any adjustments needed to correct prior misallocations must be made to
283.4subsequent apportionments.
283.5 Sec. 5. Minnesota Statutes 2012, section 69.021, subdivision 8, is amended to read:
283.6 Subd. 8. Population and estimated market value. (a) In computations relating to
283.7fire state aid requiring the use of population figures, only official statewide federal census
283.8figures are to be used. Increases or decreases in population disclosed by reason of any
283.9special census must not be taken into consideration.
283.10 (b) In calculations relating to fire state aid requiring the use of estimated market
283.11value property figures, only the latest available estimated market value property figures
283.12may be used.
283.13 Sec. 6. Minnesota Statutes 2012, section 88.51, subdivision 3, is amended to read:
283.14 Subd. 3. Determination of estimated market value. In determining the net tax
283.15capacity of property within any taxing district the value of the surface of lands within any
283.16auxiliary forest therein, as determined by the county board under the provisions of section
283.1788.48, subdivision 3
, shall, for all purposes except the levying of taxes on lands within any
283.18such forest, be deemed the estimated market value thereof.
283.19 Sec. 7. Minnesota Statutes 2012, section 103B.245, subdivision 3, is amended to read:
283.20 Subd. 3. Tax. After adoption of the ordinance under subdivision 2, a local
283.21government unit may annually levy a tax on all taxable property in the district for the
283.22purposes for which the tax district is established. The tax may not exceed 0.02418 percent
283.23of estimated market value on taxable property located in rural towns other than urban
283.24towns, unless allowed by resolution of the town electors. The proceeds of the tax shall
283.25be paid into a fund reserved for these purposes. Any proceeds remaining in the reserve
283.26fund at the time the tax is terminated or the district is dissolved shall be transferred and
283.27irrevocably pledged to the debt service fund of the local unit to be used solely to reduce
283.28tax levies for bonded indebtedness of taxable property in the district.
283.29 Sec. 8. Minnesota Statutes 2012, section 103B.251, subdivision 8, is amended to read:
283.30 Subd. 8. Tax. (a) For the payment of principal and interest on the bonds issued
283.31under subdivision 7 and the payment required under subdivision 6, the county shall
283.32irrevocably pledge and appropriate the proceeds of a tax levied on all taxable property
284.1located within the territory of the watershed management organization or subwatershed
284.2unit for which the bonds are issued. Each year until the reserve for payment of the bonds
284.3is sufficient to retire the bonds, the county shall levy on all taxable property in the territory
284.4of the organization or unit, without respect to any statutory or other limitation on taxes, an
284.5amount of taxes sufficient to pay principal and interest on the bonds and to restore any
284.6deficiencies in reserves required to be maintained for payment of the bonds.
284.7 (b) The tax levied on rural towns other than urban towns may not exceed 0.02418
284.8percent oftaxable estimated market value, unless approved by resolution of the town
284.9electors.
284.10 (c) If at any time the amounts available from the levy on property in the territory of
284.11the organization are insufficient to pay principal and interest on the bonds when due, the
284.12county shall make payment from any available funds in the county treasury.
284.13 (d) The amount of any taxes which are required to be levied outside of the territory
284.14of the watershed management organization or unit or taken from the general funds of the
284.15county to pay principal or interest on the bonds shall be reimbursed to the county from
284.16taxes levied within the territory of the watershed management organization or unit.
284.17 Sec. 9. Minnesota Statutes 2012, section 103B.635, subdivision 2, is amended to read:
284.18 Subd. 2. Municipal funding of district. (a) The governing body or board of
284.19supervisors of each municipality in the district must provide the funds necessary to meet
284.20its proportion of the total cost determined by the board, provided the total funding from
284.21all municipalities in the district for the costs shall not exceed an amount equal to .00242
284.22percent of the totaltaxable estimated market value within the district, unless three-fourths
284.23of the municipalities in the district pass a resolution concurring to the additional costs.
284.24 (b) The funds must be deposited in the treasury of the district in amounts and at
284.25times as the treasurer of the district requires.
284.26 Sec. 10. Minnesota Statutes 2012, section 103B.691, subdivision 2, is amended to read:
284.27 Subd. 2. Municipal funding of district. (a) The governing body or board of
284.28supervisors of each municipality in the district shall provide the funds necessary to meet its
284.29proportion of the total cost to be borne by the municipalities as finally certified by the board.
284.30 (b) The municipality's funds may be raised by any means within the authority of
284.31the municipality. The municipalities may each levy a tax not to exceed .02418 percent of
284.32taxable estimated market value on the taxable property located in the district to provide
284.33the funds. The levy shall be within all other limitations provided by law.
285.1 (c) The funds must be deposited into the treasury of the district in amounts and at
285.2times as the treasurer of the district requires.
285.3 Sec. 11. Minnesota Statutes 2012, section 103D.905, subdivision 2, is amended to read:
285.4 Subd. 2. Organizational expense fund. (a) An organizational expense fund,
285.5consisting of an ad valorem tax levy, shall not exceed 0.01596 percent oftaxable estimated
285.6 market value, or $60,000, whichever is less. The money in the fund shall be used for
285.7organizational expenses and preparation of the watershed management plan for projects.
285.8 (b) The managers may borrow from the affected counties up to 75 percent of the
285.9anticipated funds to be collected from the organizational expense fund levy and the
285.10counties affected may make the advancements.
285.11 (c) The advancement of anticipated funds shall be apportioned among affected
285.12counties in the same ratio as the net tax capacity of the area of the counties within
285.13the watershed district bears to the net tax capacity of the entire watershed district. If a
285.14watershed district is enlarged, an organizational expense fund may be levied against the
285.15area added to the watershed district in the same manner as provided in this subdivision.
285.16 (d) Unexpended funds collected for the organizational expense may be transferred to
285.17the administrative fund and used for the purposes of the administrative fund.
285.18 Sec. 12. Minnesota Statutes 2012, section 103D.905, subdivision 3, is amended to read:
285.19 Subd. 3. General fund. A general fund, consisting of an ad valorem tax levy, may
285.20not exceed 0.048 percent oftaxable estimated market value, or $250,000, whichever is
285.21less. The money in the fund shall be used for general administrative expenses and for
285.22the construction or implementation and maintenance of projects of common benefit to
285.23the watershed district. The managers may make an annual levy for the general fund as
285.24provided in section103D.911 . In addition to the annual general levy, the managers may
285.25annually levy a tax not to exceed 0.00798 percent oftaxable estimated market value
285.26for a period not to exceed 15 consecutive years to pay the cost attributable to the basic
285.27water management features of projects initiated by petition of a political subdivision
285.28within the watershed district or by petition of at least 50 resident owners whose property
285.29is within the watershed district.
285.30 Sec. 13. Minnesota Statutes 2012, section 103D.905, subdivision 8, is amended to read:
285.31 Subd. 8. Survey and data acquisition fund. (a) A survey and data acquisition fund
285.32is established and used only if other funds are not available to the watershed district to pay
285.33for making necessary surveys and acquiring data.
286.1 (b) The survey and data acquisition fund consists of the proceeds of a property tax
286.2that can be levied only once every five years. The levy may not exceed 0.02418 percent of
286.3taxable estimated market value.
286.4 (c) The balance of the survey and data acquisition fund may not exceed $50,000.
286.5 (d) In a subsequent proceeding for a project where a survey has been made, the
286.6attributable cost of the survey as determined by the managers shall be included as a part of
286.7the cost of the work and the sum shall be repaid to the survey and data acquisition fund.
286.8 Sec. 14. Minnesota Statutes 2012, section 117.025, subdivision 7, is amended to read:
286.9 Subd. 7. Structurally substandard. "Structurally substandard" means a building:
286.10 (1) that was inspected by the appropriate local government and cited for one or more
286.11enforceable housing, maintenance, or building code violations;
286.12 (2) in which the cited building code violations involve one or more of the following:
286.13 (i) a roof and roof framing element;
286.14 (ii) support walls, beams, and headers;
286.15 (iii) foundation, footings, and subgrade conditions;
286.16 (iv) light and ventilation;
286.17 (v) fire protection, including egress;
286.18 (vi) internal utilities, including electricity, gas, and water;
286.19 (vii) flooring and flooring elements; or
286.20 (viii) walls, insulation, and exterior envelope;
286.21 (3) in which the cited housing, maintenance, or building code violations have not
286.22been remedied after two notices to cure the noncompliance; and
286.23 (4) has uncured housing, maintenance, and building code violations, satisfaction of
286.24which would cost more than 50 percent of theassessor's taxable estimated market value
286.25for the building, excluding land value, as determined under section273.11 for property
286.26taxes payable in the year in which the condemnation is commenced.
286.27A local government is authorized to seek from a judge or magistrate an administrative
286.28warrant to gain access to inspect a specific building in a proposed development or
286.29redevelopment area upon showing of probable cause that a specific code violation has
286.30occurred and that the violation has not been cured, and that the owner has denied the local
286.31government access to the property. Items of evidence that may support a conclusion of
286.32probable cause may include recent fire or police inspections, housing inspection, exterior
286.33evidence of deterioration, or other similar reliable evidence of deterioration in the specific
286.34building.
287.1 Sec. 15. Minnesota Statutes 2012, section 127A.48, subdivision 1, is amended to read:
287.2 Subdivision 1. Computation. The Department of Revenue must annually conduct
287.3an assessment/sales ratio study of the taxable property in each county, city, town, and
287.4school district in accordance with the procedures in subdivisions 2 and 3. Based upon the
287.5results of this assessment/sales ratio study, the Department of Revenue must determine an
287.6aggregate equalized net tax capacity for the various classes of taxable property in each
287.7taxing district, the aggregate of whichtax capacity shall be is designated as the adjusted net
287.8tax capacity. The adjusted net tax capacity must be reduced by the captured tax capacity of
287.9tax increment districts under section 469.177, subdivision 2, fiscal disparities contribution
287.10tax capacities under sections 276A.06 and 473F.08, and the tax capacity of transmission
287.11lines required to be subtracted from the local tax base under section 273.425; and increased
287.12by fiscal disparities distribution tax capacities under sections 276A.06 and 473F.08. The
287.13adjusted net tax capacities shall be determined using the net tax capacity percentages in
287.14effect for the assessment year following the assessment year of the study. The Department
287.15of Revenue must make whatever estimates are necessary to account for changes in the
287.16classification system. The Department of Revenue may incur the expense necessary to
287.17make the determinations. The commissioner of revenue may reimburse any county or
287.18governmental official for requested services performed in ascertaining the adjusted net tax
287.19capacity. On or before March 15 annually, the Department of Revenue shall file with the
287.20chair of the Tax Committee of the house of representatives and the chair of the Committee
287.21on Taxes and Tax laws of the senate a report of adjusted net tax capacities for school
287.22districts. On or before June 15 annually, the Department of Revenue shall file its final report
287.23on the adjusted net tax capacities for school districts established by the previous year's
287.24assessments and the current year's net tax capacity percentages with the commissioner of
287.25education and each county auditor for those school districts for which the auditor has the
287.26responsibility for determination of local tax rates. A copy of the report so filed shall be
287.27mailed to the clerk of each school district involved and to the county assessor or supervisor
287.28of assessments of the county or counties in which each school district is located.
287.29EFFECTIVE DATE.This section is effective the day following final enactment.
287.30 Sec. 16. Minnesota Statutes 2012, section 138.053, is amended to read:
287.31138.053 COUNTY HISTORICAL SOCIETY; TAX LEVY; CITIES OR
287.32TOWNS.
287.33 The governing body of any home rule charter or statutory city or town may annually
287.34appropriate from its general fund an amount not to exceed 0.02418 percent oftaxable
288.1 estimated market value, derived from ad valorem taxes on property or other revenues, to
288.2be paid to the historical society of its respective county to be used for the promotion of
288.3historical work and to aid in defraying the expenses of carrying on the historical work in the
288.4county. No city or town may appropriate any funds for the benefit of any historical society
288.5unless the society is affiliated with and approved by the Minnesota Historical Society.
288.6 Sec. 17. Minnesota Statutes 2012, section 144F.01, subdivision 4, is amended to read:
288.7 Subd. 4. Property tax levy authority. The district's board may levy a tax on the
288.8taxable real and personal property in the district. The ad valorem tax levy may not exceed
288.90.048 percent of thetaxable estimated market value of the district or $400,000, whichever
288.10is less. The proceeds of the levy must be used as provided in subdivision 5. The board shall
288.11certify the levy at the times as provided under section275.07 . The board shall provide the
288.12county with whatever information is necessary to identify the property that is located within
288.13the district. If the boundaries include a part of a parcel, the entire parcel shall be included
288.14in the district. The county auditors must spread, collect, and distribute the proceeds of the
288.15tax at the same time and in the same manner as provided by law for all other property taxes.
288.16 Sec. 18. Minnesota Statutes 2012, section 162.07, subdivision 3, is amended to read:
288.17 Subd. 3. Computation for rural counties. An amount equal to a levy of 0.01596
288.18percent on each rural county's totaltaxable estimated market value for the last preceding
288.19calendar year shall be computed and shall be subtracted from the county's total estimated
288.20construction costs. The result thereof shall be the money needs of the county. For the
288.21purpose of this section, "rural counties" means all counties having a population of less
288.22than 175,000.
288.23 Sec. 19. Minnesota Statutes 2012, section 162.07, subdivision 4, is amended to read:
288.24 Subd. 4. Computation for urban counties. An amount equal to a levy of 0.00967
288.25percent on each urban county's totaltaxable estimated market value for the last preceding
288.26calendar year shall be computed and shall be subtracted from the county's total estimated
288.27construction costs. The result thereof shall be the money needs of the county. For
288.28the purpose of this section, "urban counties" means all counties having a population
288.29of 175,000 or more.
288.30 Sec. 20. Minnesota Statutes 2012, section 163.04, subdivision 3, is amended to read:
288.31 Subd. 3. Bridges within certain cities. When the council of any statutory city or
288.32city of the third or fourth class may determine that it is necessary to build or improve any
289.1bridge or bridges, including approaches thereto, and any dam or retaining works connected
289.2therewith, upon or forming a part of streets or highways either wholly or partly within
289.3its limits, the county board shall appropriate one-half of the money as may be necessary
289.4therefor from the county road and bridge fund, not exceeding during any year one-half
289.5the amount of taxes paid into the county road and bridge fund during the preceding year,
289.6on property within the corporate limits of the city. The appropriation shall be made upon
289.7the petition of the council, which petition shall be filed by the council with the county
289.8board prior to the fixing by the board of the annual county tax levy. The county board
289.9shall determine the plans and specifications, shall let all necessary contracts, shall have
289.10charge of construction, and upon its request, warrants in payment thereof shall be issued
289.11by the county auditor, from time to time, as the construction work proceeds. Any unpaid
289.12balance may be paid or advanced by the city. On petition of the council, the appropriations
289.13of the county board, during not to exceed three successive years, may be made to apply
289.14on the construction of the same items and to repay any money advanced by the city in
289.15the construction thereof. None of the provisions of this section shall be construed to
289.16be mandatory as applied to any city whose estimated market value exceeds $2,100 per
289.17capita of its population.
289.18 Sec. 21. Minnesota Statutes 2012, section 163.06, subdivision 6, is amended to read:
289.19 Subd. 6. Expenditure in certain counties. In any county having not less than 95
289.20nor more than 105 full and fractional townships, and havinga an estimated market value
289.21of not less than $12,000,000 nor more than $21,000,000,exclusive of money and credits,
289.22 the county board, by resolution, may expend the funds provided in subdivision 4 in any
289.23organizedor unorganized township town or unorganized territory or portion thereof in
289.24such county.
289.25 Sec. 22. Minnesota Statutes 2012, section 165.10, subdivision 1, is amended to read:
289.26 Subdivision 1. Certain counties may issue and sell. The county board of any
289.27county having no outstanding road and bridge bonds may issue and sell county road bonds
289.28in an amount not exceeding 0.12089 percent of the estimated market value of the taxable
289.29property within the countyexclusive of money and credits, for the purpose of constructing,
289.30reconstructing, improving, or maintaining any bridge or bridges on any highway under its
289.31jurisdiction, without submitting the matter to a vote of the electors of the county.
289.32 Sec. 23. Minnesota Statutes 2012, section 272.03, is amended by adding a subdivision
289.33to read:
290.1 Subd. 14. Estimated market value. "Estimated market value" means the assessor's
290.2determination of market value, including the effects of any orders made under section
290.3270.12 or chapter 274, for the parcel. The provisions of section 273.032 apply for certain
290.4uses in determining the total estimated market value for the taxing jurisdiction.
290.5 Sec. 24. Minnesota Statutes 2012, section 272.03, is amended by adding a subdivision
290.6to read:
290.7 Subd. 15. Taxable market value. "Taxable market value" means estimated market
290.8value for the parcel as reduced by market value exclusions, deferments of value, or other
290.9adjustments required by law, that reduce market value before the application of class rates.
290.10 Sec. 25. Minnesota Statutes 2012, section 273.032, is amended to read:
290.11273.032 MARKET VALUE DEFINITION.
290.12 (a) Unless otherwise provided, for the purpose of determining any property tax
290.13levy limitation based on market value or any limit on net debt, the issuance of bonds,
290.14certificates of indebtedness, or capital notes based on market value, any qualification to
290.15receive state aid based on market value, or any state aid amount based on market value, the
290.16terms "market value," "taxable estimated market value," and "market valuation," whether
290.17equalized or unequalized, mean thetotal taxable estimated market value of taxable property
290.18within the local unit of government before any of the following or similar adjustments for:
290.19 (1) the market value exclusions under:
290.20 (i) section 273.11, subdivisions 14a and 14c (vacant platted land);
290.21 (ii) section 273.11, subdivision 16 (certain improvements to homestead property);
290.22 (iii) section 273.11, subdivisions 19 and 20 (certain improvements to business
290.23properties);
290.24 (iv) section 273.11, subdivision 21 (homestead property damaged by mold);
290.25 (v) section 273.11, subdivision 22 (qualifying lead hazardous reduction projects);
290.26 (vi) section 273.13, subdivision 34 (homestead of a disabled veteran or family
290.27caregiver);
290.28 (vii) section 273.13, subdivision 35 (homestead market value exclusion); or
290.29 (2) the deferment of value under:
290.30 (i) the Minnesota Agricultural Property Tax Law, section 273.111;
290.31 (ii) the Aggregate Resource Preservation Law, section 273.1115;
290.32 (iii) the Minnesota Open Space Property Tax Law, section 273.112;
290.33 (iv) the rural preserves property tax program, section 273.114; or
290.34 (v) the Metropolitan Agricultural Preserves Act, section 473H.10; or
291.1 (3) the adjustments to tax capacity for:
291.2 (i) tax increment, financing under sections 469.174 to 469.1794;
291.3 (ii) fiscaldisparity, disparities under chapter 276A or 473F; or
291.4 (iii) powerline credit, or wind energy values, but after the limited market adjustments
291.5under section
273.11, subdivision 1a, and after the market value exclusions of certain
291.6improvements to homestead property under section
273.11, subdivision 16
291.7273.425.
291.8 (b) Estimated market value under paragraph (a) also includes the market value
291.9of tax-exempt property if the applicable law specifically provides that the limitation,
291.10qualification, or aid calculation includes tax-exempt property.
291.11 (c) Unless otherwise provided, "market value," "taxable estimated market value,"
291.12and "market valuation" for purposes ofthis paragraph property tax levy limitations and
291.13calculation of state aid, refer to thetaxable estimated market value for the previous
291.14assessment year and for purposes of limits on net debt, the issuance of bonds, certificates of
291.15indebtedness, or capital notes refer to the estimated market value as last finally equalized.
291.16For the purpose of determining any net debt limit based on market value, or any limit
291.17on the issuance of bonds, certificates of indebtedness, or capital notes based on market
291.18value, the terms "market value," "taxable market value," and "market valuation," whether
291.19equalized or unequalized, mean the total taxable market value of property within the local
291.20unit of government before any adjustments for tax increment, fiscal disparity, powerline
291.21credit, or wind energy values, but after the limited market value adjustments under section
291.22273.11, subdivision 1a, and after the market value exclusions of certain improvements to
291.23homestead property under section
273.11, subdivision 16. Unless otherwise provided,
291.24"market value," "taxable market value," and "market valuation" for purposes of this
291.25paragraph, mean the taxable market value as last finally equalized.
291.26 (d) For purposes of a provision of a home rule charter or of any special law that is not
291.27codified in the statutes and that imposes a levy limitation based on market value or any limit
291.28on debt, the issuance of bonds, certificates of indebtedness, or capital notes based on market
291.29value, the terms "market value," "taxable market value," and "market valuation," whether
291.30equalized or unequalized, mean "estimated market value" as defined in paragraph (a).
291.31 Sec. 26. Minnesota Statutes 2012, section 273.11, subdivision 1, is amended to read:
291.32 Subdivision 1. Generally. Except as provided in this section or section273.17,
291.33subdivision 1 , all property shall be valued at its market value. The market value as
291.34determined pursuant to this section shall be stated such that any amount under $100 is
291.35rounded up to $100 and any amount exceeding $100 shall be rounded to the nearest $100.
292.1In estimating and determining such value, the assessor shall not adopt a lower or different
292.2standard of value because the same is to serve as a basis of taxation, nor shall the assessor
292.3adopt as a criterion of value the price for which such property would sell at a forced sale,
292.4or in the aggregate with all the property in the town or district; but the assessor shall value
292.5each article or description of property by itself, and at such sum or price as the assessor
292.6believes the same to be fairly worth in money. The assessor shall take into account the
292.7effect on the market value of property of environmental factors in the vicinity of the
292.8property. In assessing any tract or lot of real property, the value of the land, exclusive of
292.9structures and improvements, shall be determined, and also the value of all structures and
292.10improvements thereon, and the aggregate value of the property, including all structures
292.11and improvements, excluding the value of crops growing upon cultivated land. In valuing
292.12real property upon which there is a mine or quarry, it shall be valued at such price as such
292.13property, including the mine or quarry, would sell for at a fair, voluntary sale, for cash,
292.14if the material being mined or quarried is not subject to taxation under section298.015
292.15and the mine or quarry is not exempt from the general property tax under section298.25 .
292.16In valuing real property which is vacant, platted property shall be assessed as provided
292.17insubdivision 14 subdivisions 14a and 14c. All property, or the use thereof, which is
292.18taxable under section272.01, subdivision 2 , or
273.19 , shall be valued at the market
292.19value of such property and not at the value of a leasehold estate in such property, or at
292.20some lesser value than its market value.
292.21 Sec. 27. Minnesota Statutes 2012, section 273.124, subdivision 3a, is amended to read:
292.22 Subd. 3a. Manufactured home park cooperative. (a) When a manufactured home
292.23park is owned by a corporation or association organized under chapter 308A or 308B,
292.24and each person who owns a share or shares in the corporation or association is entitled
292.25to occupy a lot within the park, the corporation or association may claim homestead
292.26treatment for the park. Each lot must be designated by legal description or number, and
292.27each lot is limited to not more than one-half acre of land.
292.28 (b) The manufactured home park shall be entitled to homestead treatment if all
292.29of the following criteria are met:
292.30 (1) the occupant or the cooperative corporation or association is paying the ad
292.31valorem property taxes and any special assessments levied against the land and structure
292.32either directly, or indirectly through dues to the corporation or association; and
292.33 (2) the corporation or association organized under chapter 308A or 308B is wholly
292.34owned by persons having a right to occupy a lot owned by the corporation or association.
293.1 (c) A charitable corporation, organized under the laws of Minnesota with no
293.2outstanding stock, and granted a ruling by the Internal Revenue Service for 501(c)(3)
293.3tax-exempt status, qualifies for homestead treatment with respect to a manufactured home
293.4park if its members hold residential participation warrants entitling them to occupy a lot
293.5in the manufactured home park.
293.6 (d) "Homestead treatment" under this subdivision means the class rate provided for
293.7class 4c property classified under section273.13, subdivision 25 , paragraph (d), clause (5),
293.8item (ii). The homestead market valuecredit exclusion under section
273.1384
293.9subdivision 35, does not apply and the property taxes assessed against the park shall not
293.10be included in the determination of taxes payable for rent paid under section290A.03 .
293.11EFFECTIVE DATE.This section is effective for taxes payable in 2013 and
293.12thereafter.
293.13 Sec. 28. Minnesota Statutes 2012, section 273.124, subdivision 13, is amended to read:
293.14 Subd. 13. Homestead application. (a) A person who meets the homestead
293.15requirements under subdivision 1 must file a homestead application with the county
293.16assessor to initially obtain homestead classification.
293.17 (b) The format and contents of a uniform homestead application shall be prescribed
293.18by the commissioner of revenue. The application must clearly inform the taxpayer that
293.19this application must be signed by all owners who occupy the property or by the qualifying
293.20relative and returned to the county assessor in order for the property to receive homestead
293.21treatment.
293.22 (c) Every property owner applying for homestead classification must furnish to the
293.23county assessor the Social Security number of each occupant who is listed as an owner
293.24of the property on the deed of record, the name and address of each owner who does not
293.25occupy the property, and the name and Social Security number of each owner's spouse who
293.26occupies the property. The application must be signed by each owner who occupies the
293.27property and by each owner's spouse who occupies the property, or, in the case of property
293.28that qualifies as a homestead under subdivision 1, paragraph (c), by the qualifying relative.
293.29 If a property owner occupies a homestead, the property owner's spouse may not
293.30claim another property as a homestead unless the property owner and the property owner's
293.31spouse file with the assessor an affidavit or other proof required by the assessor stating that
293.32the property qualifies as a homestead under subdivision 1, paragraph (e).
293.33 Owners or spouses occupying residences owned by their spouses and previously
293.34occupied with the other spouse, either of whom fail to include the other spouse's name
293.35and Social Security number on the homestead application or provide the affidavits or
294.1other proof requested, will be deemed to have elected to receive only partial homestead
294.2treatment of their residence. The remainder of the residence will be classified as
294.3nonhomestead residential. When an owner or spouse's name and Social Security number
294.4appear on homestead applications for two separate residences and only one application is
294.5signed, the owner or spouse will be deemed to have elected to homestead the residence for
294.6which the application was signed.
294.7 The Social Security numbers, state or federal tax returns or tax return information,
294.8including the federal income tax schedule F required by this section, or affidavits or other
294.9proofs of the property owners and spouses submitted under this or another section to
294.10support a claim for a property tax homestead classification are private data on individuals as
294.11defined by section13.02, subdivision 12 , but, notwithstanding that section, the private data
294.12may be disclosed to the commissioner of revenue, or, for purposes of proceeding under the
294.13Revenue Recapture Act to recover personal property taxes owing, to the county treasurer.
294.14 (d) If residential real estate is occupied and used for purposes of a homestead by a
294.15relative of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in
294.16order for the property to receive homestead status, a homestead application must be filed
294.17with the assessor. The Social Security number of each relative and spouse of a relative
294.18occupying the property shall be required on the homestead application filed under this
294.19subdivision. If a different relative of the owner subsequently occupies the property, the
294.20owner of the property must notify the assessor within 30 days of the change in occupancy.
294.21The Social Security number of a relative or relative's spouse occupying the property
294.22is private data on individuals as defined by section13.02, subdivision 12 , but may be
294.23disclosed to the commissioner of revenue, or, for the purposes of proceeding under the
294.24Revenue Recapture Act to recover personal property taxes owing, to the county treasurer.
294.25 (e) The homestead application shall also notify the property owners that the
294.26application filed under this section will not be mailed annually and that if the property
294.27is granted homestead status for any assessment year, that same property shall remain
294.28classified as homestead until the property is sold or transferred to another person, or
294.29the owners, the spouse of the owner, or the relatives no longer use the property as their
294.30homestead. Upon the sale or transfer of the homestead property, a certificate of value must
294.31be timely filed with the county auditor as provided under section272.115 . Failure to
294.32notify the assessor within 30 days that the property has been sold, transferred, or that the
294.33owner, the spouse of the owner, or the relative is no longer occupying the property as a
294.34homestead, shall result in the penalty provided under this subdivision and the property
294.35will lose its current homestead status.
295.1 (f) If the homestead application is not returned within 30 days, the county will send a
295.2second application to the present owners of record. The notice of proposed property taxes
295.3prepared under section275.065, subdivision 3 , shall reflect the property's classification. If
295.4a homestead application has not been filed with the county by December 15, the assessor
295.5shall classify the property as nonhomestead for the current assessment year for taxes
295.6payable in the following year, provided that the owner may be entitled to receive the
295.7homestead classification by proper application under section375.192 .
295.8 (g) At the request of the commissioner, each county must give the commissioner a
295.9list that includes the name and Social Security number of each occupant of homestead
295.10property who is the property owner, property owner's spouse, qualifying relative of a
295.11property owner, or a spouse of a qualifying relative. The commissioner shall use the
295.12information provided on the lists as appropriate under the law, including for the detection
295.13of improper claims by owners, or relatives of owners, under chapter 290A.
295.14 (h) If the commissioner finds that a property owner may be claiming a fraudulent
295.15homestead, the commissioner shall notify the appropriate counties. Within 90 days of
295.16the notification, the county assessor shall investigate to determine if the homestead
295.17classification was properly claimed. If the property owner does not qualify, the county
295.18assessor shall notify the county auditor who will determine the amount of homestead
295.19benefits that had been improperly allowed. For the purpose of this section, "homestead
295.20benefits" means the tax reduction resulting from the classification as a homestead and the
295.21homestead market value exclusion under section273.13 , the taconite homestead credit
295.22under section273.135 , the residential homestead and agricultural homestead credits credit
295.23 under section273.1384 , and the supplemental homestead credit under section
273.1391 .
295.24 The county auditor shall send a notice to the person who owned the affected property
295.25at the time the homestead application related to the improper homestead was filed,
295.26demanding reimbursement of the homestead benefits plus a penalty equal to 100 percent
295.27of the homestead benefits. The person notified may appeal the county's determination
295.28by serving copies of a petition for review with county officials as provided in section
295.29278.01
and filing proof of service as provided in section
278.01 with the Minnesota Tax
295.30Court within 60 days of the date of the notice from the county. Procedurally, the appeal
295.31is governed by the provisions in chapter 271 which apply to the appeal of a property tax
295.32assessment or levy, but without requiring any prepayment of the amount in controversy. If
295.33the amount of homestead benefits and penalty is not paid within 60 days, and if no appeal
295.34has been filed, the county auditor shall certify the amount of taxes and penalty to the county
295.35treasurer. The county treasurer will add interest to the unpaid homestead benefits and
295.36penalty amounts at the rate provided in section279.03 for real property taxes becoming
296.1delinquent in the calendar year during which the amount remains unpaid. Interest may be
296.2assessed for the period beginning 60 days after demand for payment was made.
296.3 If the person notified is the current owner of the property, the treasurer may add the
296.4total amount of homestead benefits, penalty, interest, and costs to the ad valorem taxes
296.5otherwise payable on the property by including the amounts on the property tax statements
296.6under section276.04, subdivision 3 . The amounts added under this paragraph to the ad
296.7valorem taxes shall include interest accrued through December 31 of the year preceding
296.8the taxes payable year for which the amounts are first added. These amounts, when added
296.9to the property tax statement, become subject to all the laws for the enforcement of real or
296.10personal property taxes for that year, and for any subsequent year.
296.11 If the person notified is not the current owner of the property, the treasurer may
296.12collect the amounts due under the Revenue Recapture Act in chapter 270A, or use any of
296.13the powers granted in sections277.20 and
277.21 without exclusion, to enforce payment
296.14of the homestead benefits, penalty, interest, and costs, as if those amounts were delinquent
296.15tax obligations of the person who owned the property at the time the application related to
296.16the improperly allowed homestead was filed. The treasurer may relieve a prior owner of
296.17personal liability for the homestead benefits, penalty, interest, and costs, and instead extend
296.18those amounts on the tax lists against the property as provided in this paragraph to the extent
296.19that the current owner agrees in writing. On all demands, billings, property tax statements,
296.20and related correspondence, the county must list and state separately the amounts of
296.21homestead benefits, penalty, interest and costs being demanded, billed or assessed.
296.22 (i) Any amount of homestead benefits recovered by the county from the property
296.23owner shall be distributed to the county, city or town, and school district where the
296.24property is located in the same proportion that each taxing district's levy was to the total
296.25of the three taxing districts' levy for the current year. Any amount recovered attributable
296.26to taconite homestead credit shall be transmitted to the St. Louis County auditor to be
296.27deposited in the taconite property tax relief account. Any amount recovered that is
296.28attributable to supplemental homestead credit is to be transmitted to the commissioner of
296.29revenue for deposit in the general fund of the state treasury. The total amount of penalty
296.30collected must be deposited in the county general fund.
296.31 (j) If a property owner has applied for more than one homestead and the county
296.32assessors cannot determine which property should be classified as homestead, the county
296.33assessors will refer the information to the commissioner. The commissioner shall make
296.34the determination and notify the counties within 60 days.
296.35 (k) In addition to lists of homestead properties, the commissioner may ask the
296.36counties to furnish lists of all properties and the record owners. The Social Security
297.1numbers and federal identification numbers that are maintained by a county or city
297.2assessor for property tax administration purposes, and that may appear on the lists retain
297.3their classification as private or nonpublic data; but may be viewed, accessed, and used by
297.4the county auditor or treasurer of the same county for the limited purpose of assisting the
297.5commissioner in the preparation of microdata samples under section270C.12 .
297.6 (l) On or before April 30 each year beginning in 2007, each county must provide the
297.7commissioner with the following data for each parcel of homestead property by electronic
297.8means as defined in section289A.02, subdivision 8 :
297.9 (i) the property identification number assigned to the parcel for purposes of taxes
297.10payable in the current year;
297.11 (ii) the name and Social Security number of each occupant of homestead property
297.12who is the property owner, property owner's spouse, qualifying relative of a property
297.13owner, or spouse of a qualifying relative;
297.14 (iii) the classification of the property under section273.13 for taxes payable in the
297.15current year and in the prior year;
297.16 (iv) an indication of whether the property was classified as a homestead for taxes
297.17payable in the current year because of occupancy by a relative of the owner or by a
297.18spouse of a relative;
297.19 (v) the property taxes payable as defined in section290A.03, subdivision 13 , for the
297.20current year and the prior year;
297.21 (vi) the market value of improvements to the property first assessed for tax purposes
297.22for taxes payable in the current year;
297.23 (vii) the assessor's estimated market value assigned to the property for taxes payable
297.24in the current year and the prior year;
297.25 (viii) the taxable market value assigned to the property for taxes payable in the
297.26current year and the prior year;
297.27 (ix) whether there are delinquent property taxes owing on the homestead;
297.28 (x) the unique taxing district in which the property is located; and
297.29 (xi) such other information as the commissioner decides is necessary.
297.30 The commissioner shall use the information provided on the lists as appropriate
297.31under the law, including for the detection of improper claims by owners, or relatives
297.32of owners, under chapter 290A.
297.33EFFECTIVE DATE.This section is effective for taxes payable in 2013 and
297.34thereafter.
297.35 Sec. 29. Minnesota Statutes 2012, section 273.13, subdivision 21b, is amended to read:
298.1 Subd. 21b. Net tax capacity.(a) Gross tax capacity means the product of the
298.2appropriate gross class rates in this section and market values.
298.3(b) Net tax capacity means the product of the appropriate net class rates in this
298.4section and taxable market values.
298.5EFFECTIVE DATE.This section is effective the day following final enactment.
298.6 Sec. 30. Minnesota Statutes 2012, section 273.1398, subdivision 3, is amended to read:
298.7 Subd. 3. Disparity reduction aid. The amount of disparity aid certified for each
298.8taxing district within each unique taxing jurisdiction for taxes payable in the prior year
298.9shall be multiplied by the ratio of (1) the jurisdiction's tax capacity using the class rates for
298.10taxes payable in the year for which aid is being computed, to (2) its tax capacity using
298.11the class rates for taxes payable in the year prior to that for which aid is being computed,
298.12both based upon taxable market values for taxes payable in the year prior to that for which
298.13aid is being computed. If the commissioner determines that insufficient information is
298.14available to reasonably and timely calculate the numerator in this ratio for the first taxes
298.15payable year that a class rate change or new class rate is effective, the commissioner shall
298.16omit the effects of that class rate change or new class rate when calculating this ratio for
298.17aid payable in that taxes payable year. For aid payable in the year following a year for
298.18which such omission was made, the commissioner shall use in the denominator for the
298.19class that was changed or created, the tax capacity for taxes payable two years prior to that
298.20in which the aid is payable, based on taxable market values for taxes payable in the year
298.21prior to that for which aid is being computed.
298.22 Sec. 31. Minnesota Statutes 2012, section 273.1398, subdivision 4, is amended to read:
298.23 Subd. 4. Disparity reduction credit. (a) Beginning with taxes payable in 1989,
298.24class 4a and class 3a property qualifies for a disparity reduction credit if: (1) the property
298.25is located in a border city that has an enterprise zone, as defined in section469.166 ; (2)
298.26the property is located in a city with a population greater than 2,500 and less than 35,000
298.27according to the 1980 decennial census; (3) the city is adjacent to a city in another state or
298.28immediately adjacent to a city adjacent to a city in another state; and (4) the adjacent city
298.29in the other state has a population of greater than 5,000 and less than 75,000 according to
298.30the 1980 decennial census.
298.31 (b) The credit is an amount sufficient to reduce (i) the taxes levied on class 4a
298.32property to 2.3 percent of the property's taxable market value and (ii) the tax on class 3a
298.33property to 2.3 percent of taxable market value.
299.1 (c) The county auditor shall annually certify the costs of the credits to the
299.2Department of Revenue. The department shall reimburse local governments for the
299.3property taxes forgone as the result of the credits in proportion to their total levies.
299.4 Sec. 32. Minnesota Statutes 2012, section 275.011, subdivision 1, is amended to read:
299.5 Subdivision 1. Determination of levy limit. The property tax levied for any
299.6purpose under a special law that is not codified in Minnesota Statutes or a city charter
299.7provision and that is subject to a mill rate limitation imposed by the special law or city
299.8charter provision, excluding levies subject to mill rate limitations that use adjusted
299.9assessed values determined by the commissioner of revenue under section124.2131 , must
299.10not exceed the following amount for the years specified:
299.11 (a) for taxes payable in 1988, the product of the applicable mill rate limitation
299.12imposed by special law or city charter provision multiplied by the total assessed valuation
299.13of all taxable property subject to the tax as adjusted by the provisions of Minnesota
299.14Statutes 1986, sections272.64 ;
273.13, subdivision 7a ; and
275.49 ;
299.15 (b) for taxes payable in 1989, the product of (1) the property tax levy limitation for
299.16the taxes payable year 1988 determined under clause (a) multiplied by (2) an index for
299.17market valuation changes equal to the assessment year 1988 total market valuation of all
299.18taxable property subject to the tax divided by the assessment year 1987 total market
299.19valuation of all taxable property subject to the tax; and
299.20 (c) for taxes payable in 1990 and subsequent years, the product of (1) the property
299.21tax levy limitation for the previous year determined pursuant to this subdivision multiplied
299.22by (2) an index for market valuation changes equal to the total market valuation of all
299.23taxable property subject to the tax for the current assessment year divided by the total
299.24market valuation of all taxable property subject to the tax for the previous assessment year.
299.25 For the purpose of determining the property tax levy limitation for the taxes payable
299.26year1988 2014 and subsequent years under this subdivision, "total market valuation"
299.27means thetotal estimated market valuation value of all taxable property subject to the
299.28taxwithout valuation adjustments for fiscal disparities (chapters 276A and 473F), tax
299.29increment financing (sections
469.174 to 469.179), or powerline credit (section 273.425)
299.30 as provided under section 273.032.
299.31 Sec. 33. Minnesota Statutes 2012, section 275.077, subdivision 2, is amended to read:
299.32 Subd. 2. Correction of levy amount. The difference between the correct levy and
299.33the erroneous levy shall be added to the township levy for the subsequent levy year;
299.34provided that if the amount of the difference exceeds 0.12089 percent oftaxable estimated
300.1 market value, the excess shall be added to the township levy for the second and later
300.2subsequent levy years, not to exceed an additional levy of 0.12089 percent oftaxable
300.3 estimated market value in any year, until the full amount of the difference has been levied.
300.4The funds collected from the corrected levies shall be used to reimburse the county for the
300.5payment required by subdivision 1.
300.6 Sec. 34. Minnesota Statutes 2012, section 275.71, subdivision 4, is amended to read:
300.7 Subd. 4. Adjusted levy limit base. For taxes levied in 2008 through 2010, the
300.8adjusted levy limit base is equal to the levy limit base computed under subdivision 2
300.9or section275.72 , multiplied by:
300.10 (1) one plus the percentage growth in the implicit price deflator, but the percentage
300.11shall not be less than zero or exceed 3.9 percent;
300.12 (2) one plus a percentage equal to 50 percent of the percentage increase in the number
300.13of households, if any, for the most recent 12-month period for which data is available; and
300.14 (3) one plus a percentage equal to 50 percent of the percentage increase in the
300.15taxable estimated market value of the jurisdiction due to new construction of class 3
300.16property, as defined in section273.13, subdivision 4 , except for state-assessed utility and
300.17railroad property, for the most recent year for which data is available.
300.18 Sec. 35. Minnesota Statutes 2012, section 276.04, subdivision 2, is amended to read:
300.19 Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the printing
300.20of the tax statements. The commissioner of revenue shall prescribe the form of the property
300.21tax statement and its contents. The tax statement must not state or imply that property tax
300.22credits are paid by the state of Minnesota. The statement must contain a tabulated statement
300.23of the dollar amount due to each taxing authority and the amount of the state tax from the
300.24parcel of real property for which a particular tax statement is prepared. The dollar amounts
300.25attributable to the county, the state tax, the voter approved school tax, the other local school
300.26tax, the township or municipality, and the total of the metropolitan special taxing districts
300.27as defined in section275.065, subdivision 3 , paragraph (i), must be separately stated.
300.28The amounts due all other special taxing districts, if any, may be aggregated except that
300.29any levies made by the regional rail authorities in the county of Anoka, Carver, Dakota,
300.30Hennepin, Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate
300.31line directly under the appropriate county's levy. If the county levy under this paragraph
300.32includes an amount for a lake improvement district as defined under sections103B.501
300.33to103B.581 , the amount attributable for that purpose must be separately stated from the
300.34remaining county levy amount. In the case of Ramsey County, if the county levy under this
301.1paragraph includes an amount for public library service under section134.07 , the amount
301.2attributable for that purpose may be separated from the remaining county levy amount.
301.3The amount of the tax on homesteads qualifying under the senior citizens' property tax
301.4deferral program under chapter 290B is the total amount of property tax before subtraction
301.5of the deferred property tax amount. The amount of the tax on contamination value
301.6imposed under sections270.91 to
270.98 , if any, must also be separately stated. The dollar
301.7amounts, including the dollar amount of any special assessments, may be rounded to the
301.8nearest even whole dollar. For purposes of this section whole odd-numbered dollars may
301.9be adjusted to the next higher even-numbered dollar. The amount of market value excluded
301.10under section273.11, subdivision 16 , if any, must also be listed on the tax statement.
301.11 (b) The property tax statements for manufactured homes and sectional structures
301.12taxed as personal property shall contain the same information that is required on the
301.13tax statements for real property.
301.14 (c) Real and personal property tax statements must contain the following information
301.15in the order given in this paragraph. The information must contain the current year tax
301.16information in the right column with the corresponding information for the previous year
301.17in a column on the left:
301.18 (1) the property's estimated market value under section273.11, subdivision 1 ;
301.19 (2) the property's homestead market value exclusion under section273.13 ,
301.20subdivision 35;
301.21 (3) the property's taxable market valueafter reductions under sections
273.11,
301.22subdivisions 1a and 16, and
273.13, subdivision 35
301.23 (4) the property's gross tax, before credits;
301.24 (5) for homestead agricultural properties, the credit under section273.1384 ;
301.25 (6) any credits received under sections273.119 ;
273.1234 or
273.1235 ;
273.135 ;
301.26273.1391
;
273.1398, subdivision 4 ;
469.171 ; and
473H.10 , except that the amount of
301.27credit received under section273.135 must be separately stated and identified as "taconite
301.28tax relief"; and
301.29 (7) the net tax payable in the manner required in paragraph (a).
301.30 (d) If the county uses envelopes for mailing property tax statements and if the county
301.31agrees, a taxing district may include a notice with the property tax statement notifying
301.32taxpayers when the taxing district will begin its budget deliberations for the current
301.33year, and encouraging taxpayers to attend the hearings. If the county allows notices to
301.34be included in the envelope containing the property tax statement, and if more than
301.35one taxing district relative to a given property decides to include a notice with the tax
302.1statement, the county treasurer or auditor must coordinate the process and may combine
302.2the information on a single announcement.
302.3 Sec. 36. Minnesota Statutes 2012, section 276A.01, subdivision 10, is amended to read:
302.4 Subd. 10. Adjusted market value. "Adjusted market value" of real and personal
302.5property within a municipality means theassessor's estimated taxable market value,
302.6as defined in section 272.03, of all real and personal property, including the value of
302.7manufactured housing, within the municipality. For purposes of sections
276A.01 to
302.8276A.09, the commissioner of revenue shall annually make determinations and reports
302.9with respect to each municipality which are comparable to those it makes for school
302.10districts, adjusted for sales ratios in a manner similar to the adjustments made to city and
302.11town net tax capacities under section127A.48, subdivisions 1 to 6 , in the same manner
302.12and at the same times prescribed by the subdivision. The commissioner of revenue shall
302.13annually determine, for each municipality, information comparable to that required by
302.14section
475.53, subdivision 4, for school districts, as soon as practicable after it becomes
302.15available. The commissioner of revenue shall then compute the equalized market value of
302.16property within each municipality.
302.17EFFECTIVE DATE.This section is effective the day following final enactment.
302.18 Sec. 37. Minnesota Statutes 2012, section 276A.01, subdivision 12, is amended to read:
302.19 Subd. 12. Fiscal capacity. "Fiscal capacity" of a municipality means itsvaluation
302.20 adjusted market value, determined as of January 2 of any year, divided by its population,
302.21determined as of a date in the same year.
302.22 Sec. 38. Minnesota Statutes 2012, section 276A.01, subdivision 13, is amended to read:
302.23 Subd. 13. Average fiscal capacity. "Average fiscal capacity" of municipalities
302.24means the sum of thevaluations adjusted market values of all municipalities, determined
302.25as of January 2 of any year, divided by the sum of their populations, determined as of
302.26a date in the same year.
302.27 Sec. 39. Minnesota Statutes 2012, section 276A.01, subdivision 15, is amended to read:
302.28 Subd. 15. Net tax capacity. "Net tax capacity" means the taxable market value of
302.29real and personal property multiplied by its net tax capacity rates in section273.13 .
302.30 Sec. 40. Minnesota Statutes 2012, section 276A.06, subdivision 10, is amended to read:
303.1 Subd. 10. Adjustment of valuesfor other computations. For the purpose of
303.2computingthe amount or rate of any salary, aid, tax, or debt authorized, required, or
303.3limited by any provision of any law or charter, where the authorization, requirement, or
303.4limitation is related to any value or valuation of taxable property within any governmental
303.5unit, the value or net tax capacity fiscal capacity under section 276A.01, subdivision 12, a
303.6municipality's taxable market value must be adjusted to reflect theadjustments reductions
303.7 to net tax capacity effected by subdivision 2, clause (a), provided that: (1) in determining
303.8the taxable market value of commercial-industrial property or any class thereof within
303.9agovernmental unit for any purpose other than section
276A.05(a) the
303.10reduction required by this subdivision is that amount which bears the same proportion to
303.11the amount subtracted from thegovernmental unit's municipality's net tax capacity pursuant
303.12to subdivision 2, clause (a), as the taxable market value of commercial-industrial property,
303.13or such class thereof, located within thegovernmental unit municipality bears to the net
303.14tax capacity of commercial-industrial property, or such class thereof, located within the
303.15governmental unit, and (b) the increase required by this subdivision is that amount which
303.16bears the same proportion to the amount added to the governmental unit's net tax capacity
303.17pursuant to subdivision 2, clause (b), as the market value of commercial-industrial property,
303.18or such class thereof, located within the governmental unit bears to the net tax capacity of
303.19commercial-industrial property, or such class thereof, located within the governmental unit;
303.20and (2) in determining the market value of real property within a municipality for purposes
303.21of section
276A.05, the adjustment prescribed by clause (1)(a) must be made and that
303.22prescribed by clause (1)(b) must not be made municipality. No adjustment shall be made
303.23to taxable market value for the increase in net tax capacity under subdivision 2, clause (b).
303.24 Sec. 41. Minnesota Statutes 2012, section 287.08, is amended to read:
303.25287.08 TAX, HOW PAYABLE; RECEIPTS.
303.26 (a) The tax imposed by sections287.01 to
287.12 must be paid to the treasurer of
303.27any county in this state in which the real property or some part is located at or before
303.28the time of filing the mortgage for record. The treasurer shall endorse receipt on the
303.29mortgage and the receipt is conclusive proof that the tax has been paid in the amount
303.30stated and authorizes any county recorder or registrar of titles to record the mortgage. Its
303.31form, in substance, shall be "registration tax hereon of ..................... dollars paid." If the
303.32mortgage is exempt from taxation the endorsement shall, in substance, be "exempt from
303.33registration tax." In either case the receipt must be signed by the treasurer. In case the
303.34treasurer is unable to determine whether a claim of exemption should be allowed, the tax
303.35must be paid as in the case of a taxable mortgage. For documents submitted electronically,
304.1the endorsements and tax amount shall be affixed electronically and no signature by the
304.2treasurer will be required. The actual payment method must be arranged in advance
304.3between the submitter and the receiving county.
304.4 (b) The county treasurer may refund in whole or in part any mortgage registry tax
304.5overpayment if a written application by the taxpayer is submitted to the county treasurer
304.6within 3-1/2 years from the date of the overpayment. If the county has not issued a denial
304.7of the application, the taxpayer may bring an action in Tax Court in the county in which
304.8the tax was paid at any time after the expiration of six months from the time that the
304.9application was submitted. A denial of refund may be appealed within 60 days from
304.10the date of the denial by bringing an action in Tax Court in the county in which the tax
304.11was paid. The action is commenced by the serving of a petition for relief on the county
304.12treasurer, and by filing a copy with the court. The county attorney shall defend the action.
304.13The county treasurer shall notify the treasurer of each county that has or would receive a
304.14portion of the tax as paid.
304.15 (c) If the county treasurer determines a refund should be paid, or if a refund is
304.16ordered by the court, the county treasurer of each county that actually received a portion
304.17of the tax shall immediately pay a proportionate share of three percent of the refund
304.18using any available county funds. The county treasurer of each county that received, or
304.19would have received, a portion of the tax shall also pay their county's proportionate share
304.20of the remaining 97 percent of the court-ordered refund on or before the 20th day of the
304.21following month using solely the mortgage registry tax funds that would be paid to the
304.22commissioner of revenue on that date under section287.12 . If the funds on hand under
304.23this procedure are insufficient to fully fund 97 percent of the court-ordered refund, the
304.24county treasurer of the county in which the action was brought shall file a claim with the
304.25commissioner of revenue under section16A.48 for the remaining portion of 97 percent of
304.26the refund, and shall pay over the remaining portion upon receipt of a warrant from the
304.27state issued pursuant to the claim.
304.28 (d) When any mortgage covers real property located in more than one county in this
304.29state the total tax must be paid to the treasurer of the county where the mortgage is first
304.30presented for recording, and the payment must be receipted as provided in paragraph
304.31(a). If the principal debt or obligation secured by such a multiple county mortgage
304.32exceeds $10,000,000, the nonstate portion of the tax must be divided and paid over by
304.33the county treasurer receiving it, on or before the 20th day of each month after receipt,
304.34to the county or counties entitled in the ratio that the estimated market value of the real
304.35property covered by the mortgage in each county bears to the estimated market value of
304.36all the real property in this state described in the mortgage. In making the division and
305.1payment the county treasurer shall send a statement giving the description of the real
305.2property described in the mortgage and the estimated market value of the part located in
305.3each county. For this purpose, the treasurer of any county may require the treasurer of
305.4any other county to certify to the former the estimated marketvaluation value of any tract
305.5of real property in any mortgage.
305.6 (e) The mortgagor must pay the tax imposed by sections287.01 to
287.12 . The
305.7mortgagee may undertake to collect and remit the tax on behalf of the mortgagor. If the
305.8mortgagee collects money from the mortgagor to remit the tax on behalf of the mortgagor,
305.9the mortgagee has a fiduciary duty to remit the tax on behalf of the mortgagor as to the
305.10amount of the tax collected for that purpose and the mortgagor is relieved of any further
305.11obligation to pay the tax as to the amount collected by the mortgagee for this purpose.
305.12 Sec. 42. Minnesota Statutes 2012, section 287.23, subdivision 1, is amended to read:
305.13 Subdivision 1. Real property outside county. If any taxable deed or instrument
305.14describes any real property located in more than one county in this state, the total tax must
305.15be paid to the treasurer of the county where the document is first presented for recording,
305.16and the payment must be receipted as provided in section287.08 . If the net consideration
305.17exceeds $700,000, the nonstate portion of the tax must be divided and paid over by the
305.18county treasurer receiving it, on or before the 20th day of each month after receipt, to
305.19the county or counties entitled in the ratio which the estimated market value of the real
305.20property covered by the document in each county bears to the estimated market value of
305.21all the real property in this state described in the document. In making the division and
305.22payment the county treasurer shall send a statement to the other involved counties giving
305.23the description of the real property described in the document and the estimated market
305.24value of the part located in each county. The treasurer of any county may require the
305.25treasurer of any other county to certify to the former the estimated marketvaluation value
305.26 of any parcel of real property for this purpose.
305.27 Sec. 43. Minnesota Statutes 2012, section 353G.08, subdivision 2, is amended to read:
305.28 Subd. 2. Cash flow funding requirement. If the executive director determines that
305.29an account in the voluntary statewide lump-sum volunteer firefighter retirement plan has
305.30insufficient assets to meet the service pensions determined payable from the account,
305.31the executive director shall certify the amount of the potential service pension shortfall
305.32to the municipality or municipalities and the municipality or municipalities shall make
305.33an additional employer contribution to the account within ten days of the certification.
305.34If more than one municipality is associated with the account, unless the municipalities
306.1agree to a different allocation, the municipalities shall allocate the additional employer
306.2contribution one-half in proportion to the population of each municipality and one-half in
306.3proportion to the estimated market value of the property of each municipality.
306.4 Sec. 44. Minnesota Statutes 2012, section 365.025, subdivision 4, is amended to read:
306.5 Subd. 4. Major purchases: notice, petition, election. Before buying anything
306.6under subdivision 2 that costs more than 0.24177 percent of the estimated market value of
306.7the town, the town must follow this subdivision.
306.8 The town must publish in its official newspaper the board's resolution to pay for the
306.9property over time. Then a petition for an election on the contract may be filed with the
306.10clerk. The petition must be filed within ten days after the resolution is published. To require
306.11the election the petition must be signed by a number of voters equal to ten percent of the
306.12voters at the last regular town election. The contract then must be approved by a majority of
306.13those voting on the question. The question may be voted on at a regular or special election.
306.14 Sec. 45. Minnesota Statutes 2012, section 366.095, subdivision 1, is amended to read:
306.15 Subdivision 1. Certificates of indebtedness. The town board may issue certificates
306.16of indebtedness within the debt limits for a town purpose otherwise authorized by law.
306.17The certificates shall be payable in not more than ten years and be issued on the terms and
306.18in the manner as the board may determine. If the amount of the certificates to be issued
306.19exceeds 0.25 percent of the estimated market value of the town, they shall not be issued
306.20for at least ten days after publication in a newspaper of general circulation in the town of
306.21the board's resolution determining to issue them. If within that time, a petition asking for
306.22an election on the proposition signed by voters equal to ten percent of the number of voters
306.23at the last regular town election is filed with the clerk, the certificates shall not be issued
306.24until their issuance has been approved by a majority of the votes cast on the question at
306.25a regular or special election. A tax levy shall be made to pay the principal and interest
306.26on the certificates as in the case of bonds.
306.27 Sec. 46. Minnesota Statutes 2012, section 366.27, is amended to read:
306.28366.27 FIREFIGHTERS' RELIEF; TAX LEVY.
306.29 The town board of any town in this state having therein a platted portion on
306.30which resides 1,200 or more people, and wherein a duly incorporated firefighters' relief
306.31association is located may each year levy a tax not to exceed 0.00806 percent oftaxable
306.32 estimated market value for the benefit of the relief association.
307.1 Sec. 47. Minnesota Statutes 2012, section 368.01, subdivision 23, is amended to read:
307.2 Subd. 23. Financing purchase of certain equipment. The town board may issue
307.3certificates of indebtedness within debt limits to purchase fire or police equipment or
307.4ambulance equipment or street construction or maintenance equipment. The certificates
307.5shall be payable in not more than five years and be issued on terms and in the manner as the
307.6board may determine. If the amount of the certificates to be issued to finance a purchase
307.7exceeds 0.24177 percent of the estimated market value of the town,excluding money
307.8and credits, they shall not be issued for at least ten days after publication in the official
307.9newspaper of a town board resolution determining to issue them. If before the end of that
307.10time, a petition asking for an election on the proposition signed by voters equal to ten
307.11percent of the number of voters at the last regular town election is filed with the clerk, the
307.12certificates shall not be issued until the proposition of their issuance has been approved by a
307.13majority of the votes cast on the question at a regular or special election. A tax levy shall be
307.14made for the payment of the principal and interest on the certificates as in the case of bonds.
307.15 Sec. 48. Minnesota Statutes 2012, section 368.47, is amended to read:
307.16368.47 TOWNS MAY BE DISSOLVED.
307.17 (1) When the voters residing within a town have failed to elect any town officials for
307.18more than ten years continuously;
307.19 (2) when a town has failed for a period of ten years to exercise any of the powers
307.20and functions of a town;
307.21 (3) when the estimated market value of a town drops to less than $165,000;
307.22 (4) when the tax delinquency of a town, exclusive of taxes that are delinquent or
307.23unpaid because they are contested in proceedings for the enforcement of taxes, amounts to
307.2412 percent of its market value; or
307.25 (5) when the state or federal government has acquired title to 50 percent of the
307.26real estate of a town,
307.27which facts, or any of them, may be found and determined by the resolution of the county
307.28board of the county in which the town is located, according to the official records in the
307.29office of the county auditor, the county board by resolution may declare the town, naming
307.30it, dissolved and no longer entitled to exercise any of the powers or functions of a town.
307.31 In Cass, Itasca, and St. Louis Counties, before the dissolution is effective the voters
307.32of the town shall express their approval or disapproval. The town clerk shall, upon a
307.33petition signed by a majority of the registered voters of the town, filed with the clerk at
307.34least 60 days before a regular or special town election, give notice at the same time and
307.35in the same manner of the election that the question of dissolution of the town will be
308.1submitted for determination at the election. At the election the question shall be voted
308.2upon by a separate ballot, the terms of which shall be either "for dissolution" or "against
308.3dissolution." The ballot shall be deposited in a separate ballot box and the result of the
308.4voting canvassed, certified, and returned in the same manner and at the same time as
308.5other facts and returns of the election. If a majority of the votes cast at the election are
308.6for dissolution, the town shall be dissolved. If a majority of the votes cast at the election
308.7are against dissolution, the town shall not be dissolved.
308.8 When a town is dissolved under sections368.47 to
368.49 the county shall acquire
308.9title to any telephone company or other business conducted by the town. The business
308.10shall be operated by the board of county commissioners until it can be sold. The
308.11subscribers or patrons of the business shall have the first opportunity of purchase. If the
308.12town has any outstanding indebtedness chargeable to the business, the county auditor shall
308.13levy a tax against the property situated in the dissolved town to pay the indebtedness
308.14as it becomes due.
308.15 Sec. 49. Minnesota Statutes 2012, section 370.01, is amended to read:
308.16370.01 CHANGE OF BOUNDARIES; CREATION OF NEW COUNTIES.
308.17 The boundaries of counties may be changed by taking territory from a county and
308.18attaching it to an adjoining county, and new counties may be established out of territory of
308.19one or more existing counties. A new county shall contain at least 400 square miles and
308.20have at least 4,000 inhabitants. A proposed new county must have a totaltaxable estimated
308.21 market value of at least 35 percent of (i) the totaltaxable estimated market value of the
308.22existing county, or (ii) the average totaltaxable estimated market value of the existing
308.23counties, included in the proposition. The determination of thetaxable estimated market
308.24value of a county must be made by the commissioner of revenue. An existing county shall
308.25not be reduced in area below 400 square miles, have less than 4,000 inhabitants, or have a
308.26totaltaxable estimated market value of less than that required of a new county.
308.27 No change in the boundaries of any county having an area of more than 2,500 square
308.28miles, whether by the creation of a new county, or otherwise, shall detach from the existing
308.29county any territory within 12 miles of the county seat.
308.30 Sec. 50. Minnesota Statutes 2012, section 373.40, subdivision 1, is amended to read:
308.31 Subdivision 1. Definitions. For purposes of this section, the following terms have
308.32the meanings given.
308.33 (a) "Bonds" means an obligation as defined under section475.51 .
309.1 (b) "Capital improvement" means acquisition or betterment of public lands,
309.2buildings, or other improvements within the county for the purpose of a county courthouse,
309.3administrative building, health or social service facility, correctional facility, jail, law
309.4enforcement center, hospital, morgue, library, park, qualified indoor ice arena, roads and
309.5bridges, and the acquisition of development rights in the form of conservation easements
309.6under chapter 84C. An improvement must have an expected useful life of five years or
309.7more to qualify. "Capital improvement" does not include a recreation or sports facility
309.8building (such as, but not limited to, a gymnasium, ice arena, racquet sports facility,
309.9swimming pool, exercise room or health spa), unless the building is part of an outdoor
309.10park facility and is incidental to the primary purpose of outdoor recreation.
309.11 (c) "Metropolitan county" means a county located in the seven-county metropolitan
309.12area as defined in section473.121 or a county with a population of 90,000 or more.
309.13 (d) "Population" means the population established by the most recent of the
309.14following (determined as of the date the resolution authorizing the bonds was adopted):
309.15 (1) the federal decennial census,
309.16 (2) a special census conducted under contract by the United States Bureau of the
309.17Census, or
309.18 (3) a population estimate made either by the Metropolitan Council or by the state
309.19demographer under section4A.02 .
309.20 (e) "Qualified indoor ice arena" means a facility that meets the requirements of
309.21section373.43 .
309.22(f) "Tax capacity" means total taxable market value, but does not include captured
309.23market value.
309.24 Sec. 51. Minnesota Statutes 2012, section 373.40, subdivision 4, is amended to read:
309.25 Subd. 4. Limitations on amount. A county may not issue bonds under this section
309.26if the maximum amount of principal and interest to become due in any year on all the
309.27outstanding bonds issued pursuant to this section (including the bonds to be issued) will
309.28equal or exceed 0.12 percent oftaxable the estimated market value of property in the
309.29county. Calculation of the limit must be made using thetaxable estimated market value for
309.30the taxes payable year in which the obligations are issued and sold. This section does not
309.31limit the authority to issue bonds under any other special or general law.
309.32 Sec. 52. Minnesota Statutes 2012, section 375.167, subdivision 1, is amended to read:
309.33 Subdivision 1. Appropriations. Notwithstanding any contrary law, a county board
309.34may appropriate from the general revenue fund to any nonprofit corporation a sum not
310.1to exceed 0.00604 percent oftaxable estimated market value to provide legal assistance
310.2to persons who are unable to afford private legal counsel.
310.3 Sec. 53. Minnesota Statutes 2012, section 375.18, subdivision 3, is amended to read:
310.4 Subd. 3. Courthouse. Each county board may erect, furnish, and maintain a
310.5suitable courthouse. No indebtedness shall be created for a courthouse in excess of an
310.6amount equal to a levy of 0.04030 percent oftaxable estimated market value without the
310.7approval of a majority of the voters of the county voting on the question of issuing the
310.8obligation at an election.
310.9 Sec. 54. Minnesota Statutes 2012, section 375.555, is amended to read:
310.10375.555 FUNDING.
310.11 To implement the county emergency jobs program, the county board may expend
310.12an amount equal to what would be generated by a levy of 0.01209 percent oftaxable
310.13 estimated market value. The money to be expended may be from any available funds
310.14not otherwise earmarked.
310.15 Sec. 55. Minnesota Statutes 2012, section 383B.152, is amended to read:
310.16383B.152 BUILDING AND MAINTENANCE FUND.
310.17 The county board may by resolution levy a tax to provide money which shall be kept
310.18in a fund known as the county reserve building and maintenance fund. Money in the fund
310.19shall be used solely for the construction, maintenance, and equipping of county buildings
310.20that are constructed or maintained by the board. The levy shall not be subject to any limit
310.21fixed by any other law or by any board of tax levy or other corresponding body, but shall
310.22not exceed 0.02215 percent oftaxable estimated market value, less the amount required by
310.23chapter 475 to be levied in the year for the payment of the principal of and interest on all
310.24bonds issued pursuant to Extra Session Laws 1967, chapter 47, section 1.
310.25 Sec. 56. Minnesota Statutes 2012, section 383B.245, is amended to read:
310.26383B.245 LIBRARY LEVY.
310.27 (a) The county board may levy a tax on the taxable property within the county to
310.28acquire, better, and construct county library buildings and branches and to pay principal
310.29and interest on bonds issued for that purpose.
310.30 (b) The county board may by resolution adopted by a five-sevenths vote issue and
310.31sell general obligation bonds of the county in the manner provided in sections475.60 to
311.1475.73
. The bonds shall not be subject to the limitations of sections
475.51 to
475.59 ,
311.2but the maturity years and amounts and interest rates of each series of bonds shall be
311.3fixed so that the maximum amount of principal and interest to become due in any year,
311.4on the bonds of that series and of all outstanding series issued by or for the purposes of
311.5libraries, shall not exceed an amount equal to 0.01612 percent of estimated market value
311.6of all taxable property in the county as last finally equalized before the issuance of the new
311.7series. When the tax levy authorized in this section is collected it shall be appropriated
311.8and credited to a debt service fund for the bonds in amounts required each year in lieu of a
311.9countywide tax levy for the debt service fund under section475.61 .
311.10 Sec. 57. Minnesota Statutes 2012, section 383B.73, subdivision 1, is amended to read:
311.11 Subdivision 1. Levy. To provide funds for the purposes of the Three Rivers Park
311.12District as set forth in its annual budget, in lieu of the levies authorized by any other
311.13special law for such purposes, the Board of Park District Commissioners may levy taxes
311.14on all the taxable property in the county and park district at a rate not exceeding 0.03224
311.15percent of estimated market value. Notwithstanding section398.16 , on or before October
311.161 of each year, after public hearing, the Board of Park District Commissioners shall adopt
311.17a budget for the ensuing year and shall determine the total amount necessary to be raised
311.18from ad valorem tax levies to meet its budget. The Board of Park District Commissioners
311.19shall submit the budget to the county board. The county board may veto or modify an item
311.20contained in the budget. If the county board determines to veto or to modify an item in the
311.21budget, it must, within 15 days after the budget was submitted by the district board, state
311.22in writing the specific reasons for its objection to the item vetoed or the reason for the
311.23modification. The Park District Board, after consideration of the county board's objections
311.24and proposed modifications, may reapprove a vetoed item or the original version of an item
311.25with respect to which a modification has been proposed, by a two-thirds majority. If the
311.26district board does not reapprove a vetoed item, the item shall be deleted from the budget.
311.27If the district board does not reapprove the original version of a modified item, the item
311.28shall be included in the budget as modified by the county board. After adoption of the final
311.29budget and no later than October 1, the superintendent of the park district shall certify to the
311.30office of the Hennepin County director of tax and public records exercising the functions
311.31of the county auditor the total amount to be raised from ad valorem tax levies to meet its
311.32budget for the ensuing year. The director of tax and public records shall add the amount of
311.33any levy certified by the district to other tax levies on the property of the county within the
311.34district for collection by the director of tax and public records with other taxes. When
312.1collected, the director shall make settlement of such taxes with the district in the same
312.2manner as other taxes are distributed to the other political subdivisions in Hennepin County.
312.3 Sec. 58. Minnesota Statutes 2012, section 383E.20, is amended to read:
312.4383E.20 BONDING FOR COUNTY LIBRARY BUILDINGS.
312.5 The Anoka County Board may, by resolution adopted by a four-sevenths vote, issue
312.6and sell general obligation bonds of the county in the manner provided in chapter 475 to
312.7acquire, better, and construct county library buildings. The bonds shall not be subject to the
312.8requirements of sections 475.57 to 475.59. The maturity years and amounts and interest
312.9rates of each series of bonds shall be fixed so that the maximum amount of principal and
312.10interest to become due in any year, on the bonds of that series and of all outstanding series
312.11issued by or for the purposes of libraries, shall not exceed an amount equal to .01 percent
312.12of thetaxable estimated market value of all taxable property in the county, excluding any
312.13taxable property taxed by any city for the support of any free public library. When the tax
312.14levy authorized in this section is collected, it shall be appropriated and credited to a debt
312.15service fund for the bonds. The tax levy for the debt service fund under section 475.61
312.16shall be reduced by the amount available or reasonably anticipated to be available in the
312.17fund to make payments otherwise payable from the levy pursuant to section 475.61.
312.18 Sec. 59. Minnesota Statutes 2012, section 383E.23, is amended to read:
312.19383E.23 LIBRARY TAX.
312.20 The Anoka County Board may levy a tax of not more than .01 percent of thetaxable
312.21 estimated market value of taxable property located within the county excluding any
312.22taxable property taxed by any city for the support of any free public library, to acquire,
312.23better, and construct county library buildings and to pay principal and interest on bonds
312.24issued for that purpose. The tax shall be disregarded in the calculation of levies or limits
312.25on levies provided by section 373.40, or other law.
312.26 Sec. 60. Minnesota Statutes 2012, section 385.31, is amended to read:
312.27385.31 PAYMENT OF COUNTY ORDERS OR WARRANTS.
312.28 When any order or warrant drawn on the treasurer is presented for payment, if there
312.29is money in the treasury for that purpose, the county treasurer shall redeem the same, and
312.30write across the entire face thereof the word "redeemed," the date of the redemption, and
312.31the treasurer's official signature. If there is not sufficient funds in the proper accounts to
312.32pay such orders they shall be numbered and registered in their order of presentation,
313.1and proper endorsement thereof shall be made on such orders and they shall be entitled
313.2to payment in like order. Such orders shall bear interest at not to exceed the rate of six
313.3percent per annum from such date of presentment. The treasurer, as soon as there is
313.4sufficient money in the treasury, shall appropriate and set apart a sum sufficient for the
313.5payment of the orders so presented and registered, and, if entitled to interest, issue to the
313.6original holder a notice that interest will cease in 30 days from the date of such notice; and,
313.7if orders thus entitled to priority of payment are not then presented, the next in order of
313.8registry may be paid until such orders are presented. No interest shall be paid on any order,
313.9except upon a warrant drawn by the county auditor for that purpose, giving the number
313.10and the date of the order on account of which the interest warrant is drawn. In any county
313.11in this state now or hereafter havinga an estimated market value of all taxable property,
313.12exclusive of money and credits, of not less than $1,033,000,000, the county treasurer, in
313.13order to save payment of interest on county warrants drawn upon a fund in which there
313.14shall be temporarily insufficient money in the treasury to redeem the same, may borrow
313.15temporarily from any other fund in the county treasury in which there is a sufficient balance
313.16to care for the needs of such fund and allow a temporary loan or transfer to any other fund,
313.17and may pay such warrants out of such funds. Any such money so transferred and used in
313.18redeeming such county warrants shall be returned to the fund from which drawn as soon
313.19as money shall come in to the credit of such fund on which any such warrant was drawn
313.20and paid as aforesaid. Any county operating on a cash basis may use a combined form of
313.21warrant or order and check, which, when signed by the chair of the county board and by
313.22the auditor, is an order or warrant for the payment of the claim, and, when countersigned
313.23by the county treasurer, is a check for the payment of the amount thereof.
313.24 Sec. 61. Minnesota Statutes 2012, section 394.36, subdivision 1, is amended to read:
313.25 Subdivision 1. Continuation of nonconformity; limitations. Except as provided in
313.26subdivision 2, 3, or 4, any nonconformity, including the lawful use or occupation of land
313.27or premises existing at the time of the adoption of an official control under this chapter,
313.28may be continued, although the use or occupation does not conform to the official control.
313.29If the nonconformity or occupancy is discontinued for a period of more than one year, or
313.30any nonconforming building or structure is destroyed by fire or other peril to the extent of
313.3150 percent of its estimated market value, any subsequent use or occupancy of the land or
313.32premises shall be a conforming use or occupancy.
313.33 Sec. 62. Minnesota Statutes 2012, section 398A.04, subdivision 8, is amended to read:
314.1 Subd. 8. Taxation. Before deciding to exercise the power to tax, the authority shall
314.2give six weeks' published notice in all municipalities in the region. If a number of voters
314.3in the region equal to five percent of those who voted for candidates for governor at the
314.4last gubernatorial election present a petition within nine weeks of the first published notice
314.5to the secretary of state requesting that the matter be submitted to popular vote, it shall be
314.6submitted at the next general election. The question prepared shall be:
314.7 "Shall the regional rail authority have the power to impose a property tax?
314.10 If a majority of those voting on the question approve or if no petition is presented
314.11within the prescribed time the authority may levy a tax at any annual rate not exceeding
314.120.04835 percent of estimated market value of all taxable property situated within the
314.13municipality or municipalities named in its organization resolution. Its recording officer
314.14shall file, on or before September 15, in the office of the county auditor of each county
314.15in which territory under the jurisdiction of the authority is located a certified copy of the
314.16board of commissioners' resolution levying the tax, and each county auditor shall assess
314.17and extend upon the tax rolls of each municipality named in the organization resolution the
314.18portion of the tax that bears the same ratio to the whole amount that the net tax capacity of
314.19taxable property in that municipality bears to the net tax capacity of taxable property in
314.20all municipalities named in the organization resolution. Collections of the tax shall be
314.21remitted by each county treasurer to the treasurer of the authority. For taxes levied in 1991,
314.22the amount levied for light rail transit purposes under this subdivision shall not exceed 75
314.23percent of the amount levied in 1990 for light rail transit purposes under this subdivision.
314.24 Sec. 63. Minnesota Statutes 2012, section 401.05, subdivision 3, is amended to read:
314.25 Subd. 3. Leasing. (a) A county or joint powers board of a group of counties
314.26which acquires or constructs and equips or improves facilities under this chapter may,
314.27with the approval of the board of county commissioners of each county, enter into a
314.28lease agreement with a city situated within any of the counties, or a county housing and
314.29redevelopment authority established under chapter 469 or any special law. Under the lease
314.30agreement, the city or county housing and redevelopment authority shall:
314.31 (1) construct or acquire and equip or improve a facility in accordance with plans
314.32prepared by or at the request of a county or joint powers board of the group of counties
314.33and approved by the commissioner of corrections; and
314.34 (2) finance the facility by the issuance of revenue bonds.
315.1 (b) The county or joint powers board of a group of counties may lease the facility
315.2site, improvements, and equipment for a term upon rental sufficient to produce revenue
315.3for the prompt payment of the revenue bonds and all interest accruing on them. Upon
315.4completion of payment, the lessee shall acquire title. The real and personal property
315.5acquired for the facility constitutes a project and the lease agreement constitutes a revenue
315.6agreement as provided in sections469.152 to
469.165 . All proceedings by the city or
315.7county housing and redevelopment authority and the county or joint powers board shall be
315.8as provided in sections469.152 to
469.165 , with the following adjustments:
315.9 (1) no tax may be imposed upon the property;
315.10 (2) the approval of the project by the commissioner of employment and economic
315.11development is not required;
315.12 (3) the Department of Corrections shall be furnished and shall record information
315.13concerning each project as it may prescribe, in lieu of reports required on other projects to
315.14the commissioner of employment and economic development;
315.15 (4) the rentals required to be paid under the lease agreement shall not exceed in any
315.16year one-tenth of one percent of the estimated market value of property within the county
315.17or group of counties as last equalized before the execution of the lease agreement;
315.18 (5) the county or group of counties shall provide for payment of all rentals due
315.19during the term of the lease agreement in the manner required in subdivision 4;
315.20 (6) no mortgage on the facilities shall be granted for the security of the bonds, but
315.21compliance with clause (5) may be enforced as a nondiscretionary duty of the county
315.22or group of counties; and
315.23 (7) the county or the joint powers board of the group of counties may sublease any
315.24part of the facilities for purposes consistent with their maintenance and operation.
315.25 Sec. 64. Minnesota Statutes 2012, section 410.32, is amended to read:
315.26410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.
315.27 (a) Notwithstanding any contrary provision of other law or charter, a home rule
315.28charter city may, by resolution and without public referendum, issue capital notes subject
315.29to the city debt limit to purchase capital equipment.
315.30 (b) For purposes of this section, "capital equipment" means:
315.31 (1) public safety equipment, ambulance and other medical equipment, road
315.32construction and maintenance equipment, and other capital equipment; and
315.33 (2) computer hardware and software, whether bundled with machinery or equipment
315.34or unbundled.
316.1 (c) The equipment or software must have an expected useful life at least as long
316.2as the term of the notes.
316.3 (d) The notes shall be payable in not more than ten years and be issued on terms
316.4and in the manner the city determines. The total principal amount of the capital notes
316.5issued in a fiscal year shall not exceed 0.03 percent of the estimated market value of
316.6taxable property in the city for that year.
316.7 (e) A tax levy shall be made for the payment of the principal and interest on the
316.8notes, in accordance with section475.61 , as in the case of bonds.
316.9 (f) Notes issued under this section shall require an affirmative vote of two-thirds of
316.10the governing body of the city.
316.11 (g) Notwithstanding a contrary provision of other law or charter, a home rule charter
316.12city may also issue capital notes subject to its debt limit in the manner and subject to the
316.13limitations applicable to statutory cities pursuant to section412.301 .
316.14 Sec. 65. Minnesota Statutes 2012, section 412.221, subdivision 2, is amended to read:
316.15 Subd. 2. Contracts. The council shall have power to make such contracts as may
316.16be deemed necessary or desirable to make effective any power possessed by the council.
316.17The city may purchase personal property through a conditional sales contract and real
316.18property through a contract for deed under which contracts the seller is confined to the
316.19remedy of recovery of the property in case of nonpayment of all or part of the purchase
316.20price, which shall be payable over a period of not to exceed five years. When the contract
316.21price of property to be purchased by contract for deed or conditional sales contract
316.22exceeds 0.24177 percent of the estimated market value of the city, the city may not enter
316.23into such a contract for at least ten days after publication in the official newspaper of a
316.24council resolution determining to purchase property by such a contract; and, if before the
316.25end of that time a petition asking for an election on the proposition signed by voters equal
316.26to ten percent of the number of voters at the last regular city election is filed with the clerk,
316.27the city may not enter into such a contract until the proposition has been approved by a
316.28majority of the votes cast on the question at a regular or special election.
316.29 Sec. 66. Minnesota Statutes 2012, section 412.301, is amended to read:
316.30412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.
316.31 (a) The council may issue certificates of indebtedness or capital notes subject to the
316.32city debt limits to purchase capital equipment.
316.33 (b) For purposes of this section, "capital equipment" means:
317.1 (1) public safety equipment, ambulance and other medical equipment, road
317.2construction and maintenance equipment, and other capital equipment; and
317.3 (2) computer hardware and software, whether bundled with machinery or equipment
317.4or unbundled.
317.5 (c) The equipment or software must have an expected useful life at least as long as
317.6the terms of the certificates or notes.
317.7 (d) Such certificates or notes shall be payable in not more than ten years and shall be
317.8issued on such terms and in such manner as the council may determine.
317.9 (e) If the amount of the certificates or notes to be issued to finance any such purchase
317.10exceeds 0.25 percent of the estimated market value of taxable property in the city, they
317.11shall not be issued for at least ten days after publication in the official newspaper of
317.12a council resolution determining to issue them; and if before the end of that time, a
317.13petition asking for an election on the proposition signed by voters equal to ten percent
317.14of the number of voters at the last regular municipal election is filed with the clerk, such
317.15certificates or notes shall not be issued until the proposition of their issuance has been
317.16approved by a majority of the votes cast on the question at a regular or special election.
317.17 (f) A tax levy shall be made for the payment of the principal and interest on such
317.18certificates or notes, in accordance with section475.61 , as in the case of bonds.
317.19 Sec. 67. Minnesota Statutes 2012, section 428A.02, subdivision 1, is amended to read:
317.20 Subdivision 1. Ordinance. The governing body of a city may adopt an ordinance
317.21establishing a special service district. Only property that is classified under section273.13
317.22and used for commercial, industrial, or public utility purposes, or is vacant land zoned or
317.23designated on a land use plan for commercial or industrial use and located in the special
317.24service district, may be subject to the charges imposed by the city on the special service
317.25district. Other types of property may be included within the boundaries of the special
317.26service district but are not subject to the levies or charges imposed by the city on the
317.27special service district. If 50 percent or more of the estimated market value of a parcel of
317.28property is classified under section273.13 as commercial, industrial, or vacant land zoned
317.29or designated on a land use plan for commercial or industrial use, or public utility for the
317.30current assessment year, then the entire taxable market value of the property is subject to a
317.31service charge based on net tax capacity for purposes of sections428A.01 to
428A.10 .
317.32The ordinance shall describe with particularity the area within the city to be included in
317.33the district and the special services to be furnished in the district. The ordinance may not
317.34be adopted until after a public hearing has been held on the question. Notice of the hearing
317.35shall include the time and place of hearing, a map showing the boundaries of the proposed
318.1district, and a statement that all persons owning property in the proposed district that
318.2would be subject to a service charge will be given opportunity to be heard at the hearing.
318.3Within 30 days after adoption of the ordinance under this subdivision, the governing body
318.4shall send a copy of the ordinance to the commissioner of revenue.
318.5 Sec. 68. Minnesota Statutes 2012, section 430.102, subdivision 2, is amended to read:
318.6 Subd. 2. Council approval; special tax levy limitation. The council shall receive
318.7and consider the estimate required in subdivision 1 and the items of cost after notice and
318.8hearing before it or its appropriate committee as it considers necessary or expedient, and
318.9shall approve the estimate, with necessary amendments. The amounts of each item of cost
318.10estimated are then appropriated to operate, maintain, and improve the pedestrian mall
318.11during the next fiscal year. The amount of the special tax to be charged under subdivision
318.121, clause (3), must not, however, exceed 0.12089 percent of estimated market value of
318.13taxable property in the district. The council shall make any necessary adjustment in costs of
318.14operating and maintaining the district to keep the amount of the tax within this limitation.
318.15 Sec. 69. Minnesota Statutes 2012, section 447.10, is amended to read:
318.16447.10 TAX LEVY FOR OPERATING AND MAINTAINING HOSPITAL.
318.17 The governing body of a city of the first class owning a hospital may annually levy
318.18a tax to operate and maintain the hospital. The tax must not exceed 0.00806 percent of
318.19taxable estimated market value.
318.20 Sec. 70. Minnesota Statutes 2012, section 450.19, is amended to read:
318.21450.19 TOURIST CAMPING GROUNDS.
318.22 A home rule charter or statutory city or town may establish and maintain public
318.23tourist camping grounds. The governing body thereof may acquire by lease, purchase, or
318.24gift, suitable lands located either within or without the corporate limits for use as public
318.25tourist camping grounds and provide for the equipment, operation, and maintenance
318.26of the same. The amount that may be expended for the maintenance, improvement, or
318.27operation of tourist camping grounds shall not exceed, in any year, a sum equal to 0.00806
318.28percent oftaxable estimated market value.
318.29 Sec. 71. Minnesota Statutes 2012, section 450.25, is amended to read:
318.30450.25 MUSEUM, GALLERY, OR SCHOOL OF ARTS OR CRAFTS; TAX
318.31LEVY.
319.1 After the acquisition of any museum, gallery, or school of arts or crafts, the board
319.2of park commissioners of the city in which it is located shall cause to be included in the
319.3annual tax levy upon all the taxable property of the county in which the museum, gallery,
319.4or school of arts or crafts is located, a tax of 0.00846 percent of estimated market value.
319.5The board shall certify the levy to the county auditor and it shall be added to, and collected
319.6with and as part of, the general, real, and personal property taxes, with like penalties and
319.7interest, in case of nonpayment and default, and all provisions of law in respect to the
319.8levy, collection, and enforcement of other taxes shall, so far as applicable, be followed in
319.9respect of these taxes. All of these taxes, penalties, and interest, when collected, shall be
319.10paid to the city treasurer of the city in which is located the museum, gallery, or school
319.11of arts or crafts and credited to a fund to be known as the park museum fund, and shall
319.12be used only for the purposes specified in sections450.23 to
450.25 . Any part of the
319.13proceeds of the levy not expended for the purposes specified in section450.24 may be
319.14used for the erection of new buildings for the same purposes.
319.15 Sec. 72. Minnesota Statutes 2012, section 458A.10, is amended to read:
319.16458A.10 PROPERTY TAX.
319.17 The commission shall annually levy a tax not to exceed 0.12089 percent of estimated
319.18market value on all the taxable property in the transit area at a rate sufficient to produce
319.19an amount necessary for the purposes of sections458A.01 to
458A.15 , other than the
319.20payment of principal and interest due on any revenue bonds issued pursuant to section
319.21458A.05
. Property taxes levied under this section shall be certified by the commission to
319.22the county auditors of the transit area, extended, assessed, and collected in the manner
319.23provided by law for the property taxes levied by the governing bodies of cities. The
319.24proceeds of the taxes levied under this section shall be remitted by the respective county
319.25treasurers to the treasurer of the commission, who shall credit the same to the funds of
319.26the commission for use for the purposes of sections458A.01 to
458A.15 subject to any
319.27applicable pledges or limitations on account of tax anticipation certificates or other
319.28specific purposes. At any time after making a tax levy under this section and certifying
319.29it to the county auditors, the commission may issue general obligation certificates of
319.30indebtedness in anticipation of the collection of the taxes as provided by section412.261 .
319.31 Sec. 73. Minnesota Statutes 2012, section 458A.31, subdivision 1, is amended to read:
319.32 Subdivision 1. Levy limit. Notwithstanding anything to the contrary contained in
319.33the charter of the city of Duluth, any ordinance thereof, or any statute applicable thereto,
319.34limiting the amount levied in any one year for general or special purposes, the city council
320.1of the city of Duluth shall each year levy a tax in an amount not to exceed 0.07253
320.2percent oftaxable estimated market value, by ordinance. An ordinance fixing the levy
320.3shall take effect immediately upon its passage and approval. The proceeds of the levy
320.4shall be paid into the city treasury and deposited in the operating fund provided for in
320.5section458A.24, subdivision 3 .
320.6 Sec. 74. Minnesota Statutes 2012, section 465.04, is amended to read:
320.7465.04 ACCEPTANCE OF GIFTS.
320.8 Cities of the second, third, or fourth class, having at any timea an estimated
320.9 market value of not more than $41,000,000,exclusive of money and credits, as officially
320.10equalized by the commissioner of revenue, either under home rule charter or under the
320.11laws of this state, in addition to all other powers possessed by them, hereby are authorized
320.12and empowered to receive and accept gifts and donations for the use and benefit of
320.13such cities and the inhabitants thereof upon terms and conditions to be approved by the
320.14governing bodies of such cities; and such cities are authorized to comply with and perform
320.15such terms and conditions, which may include payment to the donor or donors of interest
320.16on the value of the gift at not exceeding five percent per annum payable annually or
320.17semiannually, during the remainder of the natural life or lives of such donor or donors.
320.18 Sec. 75. Minnesota Statutes 2012, section 469.033, subdivision 6, is amended to read:
320.19 Subd. 6. Operation area as taxing district, special tax. All of the territory included
320.20within the area of operation of any authority shall constitute a taxing district for the
320.21purpose of levying and collecting special benefit taxes as provided in this subdivision. All
320.22of the taxable property, both real and personal, within that taxing district shall be deemed
320.23to be benefited by projects to the extent of the special taxes levied under this subdivision.
320.24Subject to the consent by resolution of the governing body of the city in and for which
320.25it was created, an authority may levy a tax upon all taxable property within that taxing
320.26district. The tax shall be extended, spread, and included with and as a part of the general
320.27taxes for state, county, and municipal purposes by the county auditor, to be collected and
320.28enforced therewith, together with the penalty, interest, and costs. As the tax, including any
320.29penalties, interest, and costs, is collected by the county treasurer it shall be accumulated
320.30and kept in a separate fund to be known as the "housing and redevelopment project fund."
320.31The money in the fund shall be turned over to the authority at the same time and in the same
320.32manner that the tax collections for the city are turned over to the city, and shall be expended
320.33only for the purposes of sections469.001 to
469.047 . It shall be paid out upon vouchers
320.34signed by the chair of the authority or an authorized representative. The amount of the
321.1levy shall be an amount approved by the governing body of the city, but shall not exceed
321.20.0185 percent oftaxable estimated market value. The authority shall each year formulate
321.3and file a budget in accordance with the budget procedure of the city in the same manner as
321.4required of executive departments of the city or, if no budgets are required to be filed, by
321.5August 1. The amount of the tax levy for the following year shall be based on that budget.
321.6 Sec. 76. Minnesota Statutes 2012, section 469.034, subdivision 2, is amended to read:
321.7 Subd. 2. General obligation revenue bonds. (a) An authority may pledge the
321.8general obligation of the general jurisdiction governmental unit as additional security for
321.9bonds payable from income or revenues of the project or the authority. The authority
321.10must find that the pledged revenues will equal or exceed 110 percent of the principal and
321.11interest due on the bonds for each year. The proceeds of the bonds must be used for a
321.12qualified housing development project or projects. The obligations must be issued and
321.13sold in the manner and following the procedures provided by chapter 475, except the
321.14obligations are not subject to approval by the electors, and the maturities may extend to
321.15not more than 35 years for obligations sold to finance housing for the elderly and 40 years
321.16for other obligations issued under this subdivision. The authority is the municipality for
321.17purposes of chapter 475.
321.18 (b) The principal amount of the issue must be approved by the governing body of
321.19the general jurisdiction governmental unit whose general obligation is pledged. Public
321.20hearings must be held on issuance of the obligations by both the authority and the general
321.21jurisdiction governmental unit. The hearings must be held at least 15 days, but not more
321.22than 120 days, before the sale of the obligations.
321.23 (c) The maximum amount of general obligation bonds that may be issued and
321.24outstanding under this section equals the greater of (1) one-half of one percent of the
321.25taxable estimated market value of the general jurisdiction governmental unit whose
321.26general obligation is pledged, or (2) $3,000,000. In the case of county or multicounty
321.27general obligation bonds, the outstanding general obligation bonds of all cities in the
321.28county or counties issued under this subdivision must be added in calculating the limit
321.29under clause (1).
321.30 (d) "General jurisdiction governmental unit" means the city in which the housing
321.31development project is located. In the case of a county or multicounty authority, the
321.32county or counties may act as the general jurisdiction governmental unit. In the case of
321.33a multicounty authority, the pledge of the general obligation is a pledge of a tax on the
321.34taxable property in each of the counties.
322.1 (e) "Qualified housing development project" means a housing development project
322.2providing housing either for the elderly or for individuals and families with incomes not
322.3greater than 80 percent of the median family income as estimated by the United States
322.4Department of Housing and Urban Development for the standard metropolitan statistical
322.5area or the nonmetropolitan county in which the project is located. The project must be
322.6owned for the term of the bonds either by the authority or by a limited partnership or other
322.7entity in which the authority or another entity under the sole control of the authority is
322.8the sole general partner and the partnership or other entity must receive (1) an allocation
322.9from the Department of Management and Budget or an entitlement issuer of tax-exempt
322.10bonding authority for the project and a preliminary determination by the Minnesota
322.11Housing Finance Agency or the applicable suballocator of tax credits that the project
322.12will qualify for four percent low-income housing tax credits or (2) a reservation of nine
322.13percent low-income housing tax credits from the Minnesota Housing Finance Agency or a
322.14suballocator of tax credits for the project. A qualified housing development project may
322.15admit nonelderly individuals and families with higher incomes if:
322.16 (1) three years have passed since initial occupancy;
322.17 (2) the authority finds the project is experiencing unanticipated vacancies resulting in
322.18insufficient revenues, because of changes in population or other unforeseen circumstances
322.19that occurred after the initial finding of adequate revenues; and
322.20 (3) the authority finds a tax levy or payment from general assets of the general
322.21jurisdiction governmental unit will be necessary to pay debt service on the bonds if higher
322.22income individuals or families are not admitted.
322.23 (f) The authority may issue bonds to refund bonds issued under this subdivision in
322.24accordance with section475.67 . The finding of the adequacy of pledged revenues required
322.25by paragraph (a) and the public hearing required by paragraph (b) shall not apply to the
322.26issuance of refunding bonds. This paragraph applies to refunding bonds issued on and
322.27after July 1, 1992.
322.28 Sec. 77. Minnesota Statutes 2012, section 469.053, subdivision 4, is amended to read:
322.29 Subd. 4. Mandatory city levy. A city shall, at the request of the port authority, levy
322.30a tax in any year for the benefit of the port authority. The tax must not exceed 0.01813
322.31percent oftaxable estimated market value. The amount levied must be paid by the city
322.32treasurer to the treasurer of the port authority, to be spent by the authority.
322.33 Sec. 78. Minnesota Statutes 2012, section 469.053, subdivision 4a, is amended to read:
323.1 Subd. 4a. Seaway port authority levy. A levy made under this subdivision shall
323.2replace the mandatory city levy under subdivision 4. A seaway port authority is a special
323.3taxing district under section275.066 and may levy a tax in any year for the benefit of the
323.4seaway port authority. The tax must not exceed 0.01813 percent oftaxable estimated
323.5 market value. The county auditor shall distribute the proceeds of the property tax levy to
323.6the seaway port authority.
323.7 Sec. 79. Minnesota Statutes 2012, section 469.053, subdivision 6, is amended to read:
323.8 Subd. 6. Discretionary city levy. Upon request of a port authority, the port
323.9authority's city may levy a tax to be spent by and for its port authority. The tax must
323.10enable the port authority to carry out efficiently and in the public interest sections469.048
323.11to469.068 to create and develop industrial development districts. The levy must not be
323.12more than 0.00282 percent oftaxable estimated market value. The county treasurer shall
323.13pay the proceeds of the tax to the port authority treasurer. The money may be spent by
323.14the authority in performance of its duties to create and develop industrial development
323.15districts. In spending the money the authority must judge what best serves the public
323.16interest. The levy in this subdivision is in addition to the levy in subdivision 4.
323.17 Sec. 80. Minnesota Statutes 2012, section 469.107, subdivision 1, is amended to read:
323.18 Subdivision 1. City tax levy. A city may, at the request of the authority, levy a tax in
323.19any year for the benefit of the authority. The tax must be not more than 0.01813 percent of
323.20taxable estimated market value. The amount levied must be paid by the city treasurer to
323.21the treasurer of the authority, to be spent by the authority.
323.22 Sec. 81. Minnesota Statutes 2012, section 469.180, subdivision 2, is amended to read:
323.23 Subd. 2. Tax levies. Notwithstanding any law, the county board of any county may
323.24appropriate from the general revenue fund a sum not to exceed a county levy of 0.00080
323.25percent oftaxable estimated market value to carry out the purposes of this section.
323.26 Sec. 82. Minnesota Statutes 2012, section 469.187, is amended to read:
323.27469.187 FIRST CLASS CITY SPENDING FOR PUBLICITY; PUBLICITY
323.28BOARD.
323.29 Any city of the first class may expend money for city publicity purposes. The city may
323.30levy a tax, not exceeding 0.00080 percent oftaxable estimated market value. The proceeds
323.31of the levy shall be expended in the manner and for the city publicity purposes the council
324.1directs. The council may establish and provide for a publicity board or bureau to administer
324.2the fund, subject to the conditions and limitations the council prescribes by ordinance.
324.3 Sec. 83. Minnesota Statutes 2012, section 469.206, is amended to read:
324.4469.206 HAZARDOUS PROPERTY PENALTY.
324.5 A city may assess a penalty up to one percent of the estimated market value of
324.6real property, including any building located within the city that the city determines to
324.7be hazardous as defined in section463.15, subdivision 3 . The city shall send a written
324.8notice to the address to which the property tax statement is sent at least 90 days before it
324.9may assess the penalty. If the owner of the property has not paid the penalty or fixed the
324.10property within 90 days after receiving notice of the penalty, the penalty is considered
324.11delinquent and is increased by 25 percent each 60 days the penalty is not paid and the
324.12property remains hazardous. For the purposes of this section, a penalty that is delinquent
324.13is considered a delinquent property tax and subject to chapters 279, 280, and 281, in the
324.14same manner as delinquent property taxes.
324.15 Sec. 84. Minnesota Statutes 2012, section 471.24, is amended to read:
324.16471.24 TOWNS, STATUTORY CITIES; JOINT MAINTENANCE OF
324.17CEMETERY.
324.18 Where a statutory city or town owns and maintains an established cemetery or burial
324.19ground, either within or without the municipal limits, the statutory city or town may, by
324.20mutual agreement with contiguous statutory cities and towns, each havinga an estimated
324.21 market value of not less than $2,000,000, join together in the maintenance of such public
324.22cemetery or burial ground for the use of the inhabitants of each of such municipalities; and
324.23each such municipality is hereby authorized, by action of its council or governing body,
324.24to levy a tax or make an appropriation for the annual support and maintenance of such
324.25cemetery or burial ground; provided, the amount thus appropriated by each municipality
324.26shall not exceed a total of $10,000 in any one year.
324.27 Sec. 85. Minnesota Statutes 2012, section 471.571, subdivision 1, is amended to read:
324.28 Subdivision 1. Application. This section applies to each city in which the net tax
324.29capacity of real and personal property consists in part of iron ore or lands containing
324.30taconite or semitaconite and in which the totaltaxable estimated market value of real
324.31and personal property exceeds $2,500,000.
324.32 Sec. 86. Minnesota Statutes 2012, section 471.571, subdivision 2, is amended to read:
325.1 Subd. 2. Creation of fund, tax levy. The governing body of the city may create a
325.2permanent improvement and replacement fund to be maintained by an annual tax levy.
325.3The governing body may levy a tax in excess of any charter limitation for the support of
325.4the permanent improvement and replacement fund, but not exceeding the following:
325.5 (a) in cities having a population of not more than 500 inhabitants, the lesser of $20
325.6per capita or 0.08059 percent oftaxable estimated market value;
325.7 (b) in cities having a population of more than 500 and less than2500 2,500, the
325.8greater of $12.50 per capita or $10,000 but not exceeding 0.08059 percent oftaxable
325.9 estimated market value;
325.10 (c) in cities having a population ofmore than 2500 2,500 or more inhabitants,
325.11the greater of $10 per capita or $31,500 but not exceeding 0.08059 percent oftaxable
325.12 estimated market value.
325.13 Sec. 87. Minnesota Statutes 2012, section 471.73, is amended to read:
325.14471.73 ACCEPTANCE OF PROVISIONS.
325.15 In the case of any city within the class specified in section471.72 having a an
325.16estimated market value, as defined in section
471.72, in excess of $37,000,000; and in the
325.17case of any statutory city within such class havinga an estimated market value, as defined
325.18in section
471.72, of less than $5,000,000; and in the case of any statutory city within such
325.19class which is governed by Laws 1933, chapter 211, or Laws 1937, chapter 356; and in
325.20the case of any statutory city within such class which is governed by Laws 1929, chapter
325.21208, and hasa an estimated market value of less than $83,000,000; and in the case of
325.22any school district within such class havinga an estimated market value, as defined in
325.23section
471.72, of more than $54,000,000; and in the case of all towns within said class;
325.24sections471.71 to
471.83 apply only if the governing body of the city or statutory city, the
325.25board of the school district, or the town board of the town shall have adopted a resolution
325.26determining to issue bonds under the provisions of sections471.71 to
471.83 or to go
325.27upon a cash basis in accordance with the provisions thereof.
325.28 Sec. 88. Minnesota Statutes 2012, section 473.325, subdivision 2, is amended to read:
325.29 Subd. 2. Chapter 475 applies; exceptions. The Metropolitan Council shall sell and
325.30issue the bonds in the manner provided in chapter 475, and shall have the same powers
325.31and duties as a municipality issuing bonds under that law, except that the approval of a
325.32majority of the electors shall not be required and the net debt limitations shall not apply.
325.33The terms of each series of bonds shall be fixed so that the amount of principal and interest
325.34on all outstanding and undischarged bonds, together with the bonds proposed to be issued,
326.1due in any year shall not exceed 0.01209 percent of estimated market value of all taxable
326.2property in the metropolitan area as last finally equalized prior to a proposed issue. The
326.3bonds shall be secured in accordance with section475.61, subdivision 1 , and any taxes
326.4required for their payment shall be levied by the council, shall not affect the amount or rate
326.5of taxes which may be levied by the council for other purposes, shall be spread against all
326.6taxable property in the metropolitan area and shall not be subject to limitation as to rate or
326.7amount. Any taxes certified by the council to the county auditors for collection shall be
326.8reduced by the amount received by the council from the commissioner of management and
326.9budget or the federal government for the purpose of paying the principal and interest on
326.10bonds to which the levy relates. The council shall certify the fact and amount of all money
326.11so received to the county auditors, and the auditors shall reduce the levies previously made
326.12for the bonds in the manner and to the extent provided in section475.61, subdivision 3 .
326.13 Sec. 89. Minnesota Statutes 2012, section 473.629, is amended to read:
326.14473.629 VALUE OF PROPERTY FOR BOND ISSUES BY SCHOOL
326.15DISTRICTS.
326.16 As to any landsto be detached from any school district under the provisions hereof
326.17 section 473.625, notwithstandingsuch prospective the detachment, the estimated market
326.18value ofsuch the detached lands and the net tax capacity of taxable properties now located
326.19therein or thereon shall be and on the lands on the date of the detachment constitute
326.20from and after the date of the enactment hereof a part of the estimated market value of
326.21propertiesupon the basis of which such used to calculate the net debt limit of the school
326.22districtmay issue its bonds,. The value of such the lands for such purpose to be and other
326.23taxable properties for purposes of the school district's net debt limit are 33-1/3 percent of
326.24the estimated market value thereof as determined and certified bysaid the assessor to said
326.25 the school district, andit shall be the duty of such the assessor annually on or before the
326.26tenth day of Octoberfrom and after the passage hereof, to so of each year, shall determine
326.27and certify that value; provided, however, that the value ofsuch the detached lands and
326.28such taxable properties shall never exceed 20 percent of the estimated market value of
326.29all propertiesconstituting and making up the basis aforesaid used to calculate the net
326.30debt limit of the school district.
326.31 Sec. 90. Minnesota Statutes 2012, section 473.661, subdivision 3, is amended to read:
326.32 Subd. 3. Levy limit. In any budget certified by the commissioners under this section,
326.33the amount included for operation and maintenance shall not exceed an amount which,
326.34when extended against the property taxable therefor under section473.621, subdivision 5 ,
327.1will require a levy at a rate of 0.00806 percent of estimated market value. Taxes levied by
327.2the corporation shall not affect the amount or rate of taxes which may be levied by any other
327.3local government unit within the metropolitan area under the provisions of any charter.
327.4 Sec. 91. Minnesota Statutes 2012, section 473.667, subdivision 9, is amended to read:
327.5 Subd. 9. Additional taxes. Nothing herein shall prevent the commission from
327.6levying a tax not to exceed 0.00121 percent of estimated market value on taxable property
327.7within its taxing jurisdiction, in addition to any levies found necessary for the debt
327.8service fund authorized by section473.671 . Nothing herein shall prevent the levy and
327.9appropriation for purposes of the commission of any other tax on property or on any
327.10income, transaction, or privilege, when and if authorized by law. All collections of any
327.11taxes so levied shall be included in the revenues appropriated for the purposes referred
327.12to in this section, unless otherwise provided in the law authorizing the levies; but no
327.13covenant as to the continuance or as to the rate and amount of any such levy shall be made
327.14with the holders of the commission's bonds unless specifically authorized by law.
327.15 Sec. 92. Minnesota Statutes 2012, section 473.671, is amended to read:
327.16473.671 LIMIT OF TAX LEVY.
327.17 The taxes levied against the property of the metropolitan area in any one year shall
327.18not exceed 0.00806 percent oftaxable estimated market value, exclusive of taxes levied
327.19to pay the principal or interest on any bonds or indebtedness of the city issued under
327.20Laws 1943, chapter 500, and exclusive of any taxes levied to pay the share of the city for
327.21payments on bonded indebtedness of the corporation provided for in Laws 1943, chapter
327.22500. The levy of taxes authorized in Laws 1943, chapter 500, shall be in addition to the
327.23maximum rate allowed to be levied to defray the cost of government under the provisions
327.24of the charter of any city affected by Laws 1943, chapter 500.
327.25 Sec. 93. Minnesota Statutes 2012, section 473.711, subdivision 2a, is amended to read:
327.26 Subd. 2a. Tax levy. (a) The commission may levy a tax on all taxable property in the
327.27district as defined in section473.702 to provide funds for the purposes of sections
473.701
327.28to473.716 . The tax shall not exceed the property tax levy limitation determined in this
327.29subdivision. A participating county may agree to levy an additional tax to be used by the
327.30commission for the purposes of sections473.701 to
473.716 but the sum of the county's and
327.31commission's taxes may not exceed the county's proportionate share of the property tax levy
327.32limitation determined under this subdivision based on the ratio of its total net tax capacity
327.33to the total net tax capacity of the entire district as adjusted by section270.12, subdivision
328.13 . The auditor of each county in the district shall add the amount of the levy made by the
328.2district to other taxes of the county for collection by the county treasurer with other taxes.
328.3When collected, the county treasurer shall make settlement of the tax with the district in
328.4the same manner as other taxes are distributed to political subdivisions. No county shall
328.5levy any tax for mosquito, disease vectoring tick, and black gnat (Simuliidae) control
328.6except under this section. The levy shall be in addition to other taxes authorized by law.
328.7 (b) The property tax levied by the Metropolitan Mosquito Control Commission shall
328.8not exceed the product of (i) the commission's property tax levy limitation for the previous
328.9year determined under this subdivision multiplied by (ii) an index for market valuation
328.10changes equal to the total estimated marketvaluation value of all taxable property for the
328.11current tax payable year located within the district plus any area that has been added to the
328.12district since the previous year, divided by the total estimated marketvaluation value of all
328.13taxable property located within the district for the previous taxes payable year.
328.14(c) For the purpose of determining the commission's property tax levy limitation
328.15under this subdivision, "total market valuation" means the total market valuation of all
328.16taxable property within the district without valuation adjustments for fiscal disparities
328.17(chapter 473F), tax increment financing (sections
469.174 to 469.179), and high voltage
328.18transmission lines (section 273.425).
328.19 Sec. 94. Minnesota Statutes 2012, section 473F.02, subdivision 12, is amended to read:
328.20 Subd. 12. Adjusted market value. "Adjusted market value" of real and personal
328.21property within a municipality means theassessor's estimated taxable market value,
328.22as defined in section 272.03, of all real and personal property, including the value of
328.23manufactured housing, within the municipality, adjusted for sales ratios in a manner
328.24similar to the adjustments made to city and town net tax capacities. For purposes
328.25of sections
473F.01 to
473F.13, the commissioner of revenue shall annually make
328.26determinations and reports with respect to each municipality which are comparable to
328.27those it makes for school districts under section
127A.48, subdivisions 1 to 6 , in the same
328.28manner and at the same times as are prescribed by the subdivisions. The commissioner
328.29of revenue shall annually determine, for each municipality, information comparable to
328.30that required by section
475.53, subdivision 4, for school districts, as soon as practicable
328.31after it becomes available. The commissioner of revenue shall then compute the equalized
328.32market value of property within each municipality using the aggregate sales ratios from
328.33the Department of Revenue's sales ratio study.
328.34 Sec. 95. Minnesota Statutes 2012, section 473F.02, subdivision 14, is amended to read:
329.1 Subd. 14. Fiscal capacity. "Fiscal capacity" of a municipality means itsvaluation
329.2 adjusted market value, determined as of January 2 of any year, divided by its population,
329.3determined as of a date in the same year.
329.4 Sec. 96. Minnesota Statutes 2012, section 473F.02, subdivision 15, is amended to read:
329.5 Subd. 15. Average fiscal capacity. "Average fiscal capacity" of municipalities
329.6means the sum of thevaluations adjusted market values of all municipalities, determined
329.7as of January 2 of any year, divided by the sum of their populations, determined as of
329.8a date in the same year.
329.9 Sec. 97. Minnesota Statutes 2012, section 473F.02, subdivision 23, is amended to read:
329.10 Subd. 23. Net tax capacity. "Net tax capacity" means the taxable market value of
329.11real and personal property multiplied by its net tax capacity rates in section273.13 .
329.12 Sec. 98. Minnesota Statutes 2012, section 473F.08, subdivision 10, is amended to read:
329.13 Subd. 10. Adjustment of valueor net tax capacity. For the purpose of computing
329.14the amount or rate of any salary, aid, tax, or debt authorized, required, or limited by any
329.15provision of any law or charter, where such authorization, requirement, or limitation
329.16is related in any manner to any value or valuation of taxable property within any
329.17governmental unit, such value or net tax capacity fiscal capacity under section 473F.02,
329.18subdivision 14, a municipality's taxable market value shall be adjusted to reflect the
329.19adjustments reductions to net tax capacity effected by subdivision 2, clause (a), provided
329.20that: (1) in determining the taxable market value of commercial-industrial property
329.21or any class thereof within agovernmental unit for any purpose other than section
329.22473F.07(a) the reduction required by this subdivision shall be that amount
329.23which bears the same proportion to the amount subtracted from thegovernmental unit's
329.24 municipality's net tax capacity pursuant to subdivision 2, clause (a), as the taxable
329.25market value of commercial-industrial property, or such class thereof, located within the
329.26governmental unit municipality bears to the net tax capacity of commercial-industrial
329.27property, or such class thereof, located within thegovernmental unit, and (b) the increase
329.28required by this subdivision shall be that amount which bears the same proportion to
329.29the amount added to the governmental unit's net tax capacity pursuant to subdivision 2,
329.30clause (b), as the market value of commercial-industrial property, or such class thereof,
329.31located within the governmental unit bears to the net tax capacity of commercial-industrial
329.32property, or such class thereof, located within the governmental unit; and (2) in determining
329.33the market value of real property within a municipality for purposes of section
473F.07,
330.1the adjustment prescribed by clause (1)(a) hereof shall be made and that prescribed by
330.2clause (1)(b) hereof shall not be made municipality. No adjustment shall be made to
330.3taxable market value for the increase in net tax capacity under subdivision 2, clause (b).
330.4 Sec. 99. Minnesota Statutes 2012, section 475.521, subdivision 4, is amended to read:
330.5 Subd. 4. Limitations on amount. A municipality may not issue bonds under this
330.6section if the maximum amount of principal and interest to become due in any year on
330.7all the outstanding bonds issued under this section, including the bonds to be issued,
330.8will equal or exceed 0.16 percent of thetaxable estimated market value of property
330.9in the municipality. Calculation of the limit must be made using thetaxable estimated
330.10 market value for the taxes payable year in which the obligations are issued and sold. In
330.11the case of a municipality with a population of 2,500 or more, the bonds are subject to
330.12the net debt limits under section475.53 . In the case of a shared facility in which more
330.13than one municipality participates, upon compliance by each participating municipality
330.14with the requirements of subdivision 2, the limitations in this subdivision and the net debt
330.15represented by the bonds shall be allocated to each participating municipality in proportion
330.16to its required financial contribution to the financing of the shared facility, as set forth in
330.17the joint powers agreement relating to the shared facility. This section does not limit the
330.18authority to issue bonds under any other special or general law.
330.19 Sec. 100. Minnesota Statutes 2012, section 475.53, subdivision 1, is amended to read:
330.20 Subdivision 1. Generally. Except as otherwise provided in sections475.51 to
330.21475.74
, no municipality, except a school district or a city of the first class, shall incur or be
330.22subject to a net debt in excess of three percent of the estimated market value of taxable
330.23property in the municipality.
330.24 Sec. 101. Minnesota Statutes 2012, section 475.53, subdivision 3, is amended to read:
330.25 Subd. 3. Cities first class. Unless its charter permits a greater net debt a city of
330.26the first class may not incur a net debt in excess of two percent of the estimated market
330.27value of all taxable property therein. If the charter of the city permits a net debt of the city
330.28in excess of two percent of its valuation, it may not incur a net debt in excess of 3-2/3
330.29percent of the estimated market value of the taxable property therein.
330.30 The county auditor, at the time of preparing the tax list of the city, shall compile a
330.31statement setting forth the total net tax capacity and the total estimated market value of
330.32each class of taxable property in such city for such year.
331.1 Sec. 102. Minnesota Statutes 2012, section 475.53, subdivision 4, is amended to read:
331.2 Subd. 4. School districts. Except as otherwise provided by law, no school district
331.3shall be subject to a net debt in excess of 15 percent of theactual estimated market value of
331.4all taxable property situated within its corporate limits, as computed in accordance with this
331.5subdivision. The county auditor of each county containing taxable real or personal property
331.6situated within any school district shall certify to the district upon request the estimated
331.7market value of all such property. Whenever the commissioner of revenue, in accordance
331.8with section127A.48, subdivisions 1 to 6 , has determined that the net tax capacity of any
331.9district furnished by county auditors is not based upon the adjusted market value of taxable
331.10property in the district exceeds the estimated market value of property within the district,
331.11the commissioner of revenue shall certify to the district upon request the ratio most recently
331.12ascertained to exist betweensuch the estimated market value and the actual adjusted
331.13 market value of property within the district., and the actual market value of property
331.14within a district, on which its debt limit under this subdivision is will be based, is (a) the
331.15value certified by the county auditors, or (b) this on the estimated market value divided by
331.16the ratio certified by the commissioner of revenue, whichever results in a higher value.
331.17 Sec. 103. Minnesota Statutes 2012, section 475.58, subdivision 2, is amended to read:
331.18 Subd. 2. Funding, refunding. Any county, city, town, or school district whose
331.19outstanding gross debt, including all items referred to in section475.51, subdivision
331.204 , exceed in amount 1.62 percent of its estimated market value may issue bonds under
331.21this subdivision for the purpose of funding or refunding such indebtedness or any part
331.22thereof. A list of the items of indebtedness to be funded or refunded shall be made by the
331.23recording officer and treasurer and filed in the office of the recording officer. The initial
331.24resolution of the governing body shall refer to this subdivision as authority for the issue,
331.25state the amount of bonds to be issued and refer to the list of indebtedness to be funded or
331.26refunded. This resolution shall be published once each week for two successive weeks
331.27in a legal newspaper published in the municipality or if there be no such newspaper, in
331.28a legal newspaper published in the county seat. Such bonds may be issued without the
331.29submission of the question of their issue to the electors unless within ten days after the
331.30second publication of the resolution a petition requesting such election signed by ten or
331.31more voters who are taxpayers of the municipality, shall be filed with the recording officer.
331.32In event such petition is filed, no bonds shall be issued hereunder unless authorized by a
331.33majority of the electors voting on the question.
331.34 Sec. 104. Minnesota Statutes 2012, section 475.73, subdivision 1, is amended to read:
332.1 Subdivision 1. May purchase these bonds; conditions. Obligations sold under the
332.2provisions of section475.60 may be purchased by the State Board of Investment if the
332.3obligations meet the requirements of section11A.24, subdivision 2 , upon the approval of
332.4the attorney general as to form and execution of the application therefor, and under rules
332.5as the board may specify, and the state board shall have authority to purchase the same
332.6to an amount not exceeding3.63 percent of the estimated market value of the taxable
332.7property of the municipality, according to the last preceding assessment. The obligations
332.8shall not run for a shorter period than one year, nor for a longer period than 30 years and
332.9shall bear interest at a rate to be fixed by the state board but not less than two percent per
332.10annum. Forthwith upon the delivery to the state of Minnesota of any obligations issued by
332.11virtue thereof, the commissioner of management and budget shall certify to the respective
332.12auditors of the various counties wherein are situated the municipalities issuing the same,
332.13the number, denomination, amount, rate of interest and date of maturity of each obligation.
332.14 Sec. 105. Minnesota Statutes 2012, section 477A.011, subdivision 20, is amended to
332.15read:
332.16 Subd. 20. City net tax capacity. "City net tax capacity" means(1) the net tax
332.17capacity computed using the net tax capacity rates in section
273.13 for taxes payable
332.18in the year of the aid distribution, and the market values, after the exclusion in section
332.19273.13, subdivision 35, for taxes payable in the year prior to the aid distribution plus (2)
332.20a city's fiscal disparities distribution tax capacity under section
276A.06, subdivision 2,
332.21paragraph (b), or
473F.08, subdivision 2, paragraph (b), for taxes payable in the year prior
332.22to that for which aids are being calculated. The market value utilized in computing city
332.23net tax capacity shall be reduced by the sum of (1) a city's market value of commercial
332.24industrial property as defined in section
276A.01, subdivision 3, or
473F.02, subdivision 3,
332.25multiplied by the ratio determined pursuant to section
276A.06, subdivision 2, paragraph
332.26(a), or
473F.08, subdivision 2, paragraph (a), (2) the market value of the captured value
332.27of tax increment financing districts as defined in section
469.177, subdivision 2, and (3)
332.28the market value of transmission lines deducted from a city's total net tax capacity under
332.29section
273.425. The city net tax capacity will be computed using equalized market values
332.30 the city's adjusted net tax capacity under section 273.1325.
332.31EFFECTIVE DATE.This section is effective the day following final enactment.
332.32 Sec. 106. Minnesota Statutes 2012, section 477A.0124, subdivision 2, is amended to
332.33read:
333.1 Subd. 2. Definitions. (a) For the purposes of this section, the following terms
333.2have the meanings given them.
333.3 (b) "County program aid" means the sum of "county need aid," "county tax base
333.4equalization aid," and "county transition aid."
333.5 (c) "Age-adjusted population" means a county's population multiplied by the county
333.6age index.
333.7 (d) "County age index" means the percentage of the population over age 65 within
333.8the county divided by the percentage of the population over age 65 within the state, except
333.9that the age index for any county may not be greater than 1.8 nor less than 0.8.
333.10 (e) "Population over age 65" means the population over age 65 established as of
333.11July 15 in an aid calculation year by the most recent federal census, by a special census
333.12conducted under contract with the United States Bureau of the Census, by a population
333.13estimate made by the Metropolitan Council, or by a population estimate of the state
333.14demographer made pursuant to section4A.02 , whichever is the most recent as to the stated
333.15date of the count or estimate for the preceding calendar year and which has been certified
333.16to the commissioner of revenue on or before July 15 of the aid calculation year. A revision
333.17to an estimate or count is effective for these purposes only if certified to the commissioner
333.18on or before July 15 of the aid calculation year. Clerical errors in the certification or use of
333.19estimates and counts established as of July 15 in the aid calculation year are subject to
333.20correction within the time periods allowed under section477A.014 .
333.21 (f) "Part I crimes" means the three-year average annual number of Part I crimes
333.22reported for each county by the Department of Public Safety for the most recent years
333.23available. By July 1 of each year, the commissioner of public safety shall certify to the
333.24commissioner of revenue the number of Part I crimes reported for each county for the
333.25three most recent calendar years available.
333.26 (g) "Households receiving food stamps" means the average monthly number of
333.27households receiving food stamps for the three most recent years for which data is
333.28available. By July 1 of each year, the commissioner of human services must certify to the
333.29commissioner of revenue the average monthly number of households in the state and in
333.30each county that receive food stamps, for the three most recent calendar years available.
333.31 (h) "County net tax capacity" means thenet tax capacity of the county, computed
333.32analogously to city net tax capacity under section
477A.011, subdivision 20
333.33adjusted net tax capacity under section 273.1325.
333.34EFFECTIVE DATE.This section is effective the day following final enactment.
333.35 Sec. 107. Minnesota Statutes 2012, section 641.23, is amended to read:
334.1641.23 FUNDS; HOW PROVIDED.
334.2 Before any contract is made for the erection of a county jail, sheriff's residence, or
334.3both, the county board shall either levy a sufficient tax to provide the necessary funds, or
334.4issue county bonds therefor in accordance with the provisions of chapter 475, provided
334.5that no election is required if the amount of all bonds issued for this purpose and interest
334.6on them which are due and payable in any year does not exceed an amount equal to
334.70.09671 percent of estimated market value of taxable property within the county, as last
334.8determined before the bonds are issued.
334.9 Sec. 108. Minnesota Statutes 2012, section 641.24, is amended to read:
334.10641.24 LEASING.
334.11 The county may, by resolution of the county board, enter into a lease agreement with
334.12any statutory or home rule charter city situated within the county, or a county housing and
334.13redevelopment authority established pursuant to chapter 469 or any special law whereby
334.14the city or county housing and redevelopment authority will construct a jail or other law
334.15enforcement facilities for the county sheriff, deputy sheriffs, and other employees of the
334.16sheriff and other law enforcement agencies, in accordance with plans prepared by or at
334.17the request of the county board and, when required, approved by the commissioner of
334.18corrections and will finance it by the issuance of revenue bonds, and the county may lease
334.19the site and improvements for a term and upon rentals sufficient to produce revenue for the
334.20prompt payment of the bonds and all interest accruing thereon and, upon completion of
334.21payment, will acquire title thereto. The real and personal property acquired for the jail
334.22shall constitute a project and the lease agreement shall constitute a revenue agreement
334.23as contemplated in chapter 469, and all proceedings shall be taken by the city or county
334.24housing and redevelopment authority and the county in the manner and with the force and
334.25effect provided in chapter 469; provided that:
334.26 (1) no tax shall be imposed upon or in lieu of a tax upon the property;
334.27 (2) the approval of the project by the commissioner of commerce shall not be required;
334.28 (3) the Department of Corrections shall be furnished and shall record such
334.29information concerning each project as it may prescribe;
334.30 (4) the rentals required to be paid under the lease agreement shall not exceed in any
334.31year one-tenth of one percent of the estimated market value of property within the county,
334.32as last finally equalized before the execution of the agreement;
334.33 (5) the county board shall provide for the payment of all rentals due during the term
334.34of the lease, in the manner required in section641.264, subdivision 2 ;
335.1 (6) no mortgage on the property shall be granted for the security of the bonds, but
335.2compliance with clause (5) hereof may be enforced as a nondiscretionary duty of the
335.3county board; and
335.4 (7) the county board may sublease any part of the jail property for purposes consistent
335.5with the maintenance and operation of a county jail or other law enforcement facility.
335.6 Sec. 109. Minnesota Statutes 2012, section 645.44, is amended by adding a subdivision
335.7to read:
335.8 Subd. 20. Estimated market value. When used in determining or calculating a
335.9limit on taxation, spending, state aid amounts, or debt, bond, certificate of indebtedness, or
335.10capital note issuance by or for a local government unit, "estimated market value" has the
335.11meaning given in section 273.032.
335.12 Sec. 110. REVISOR'S INSTRUCTION.
335.13 The revisor of statutes shall recodify Minnesota Statutes, section 127A.48,
335.14subdivisions 1 to 6, as section 273.1325, subdivisions 1 to 6, and change all
335.15cross-references to the affected subdivisions accordingly.
335.16EFFECTIVE DATE.This section is effective the day following final enactment.
335.17 Sec. 111. REPEALER.
335.18Minnesota Statutes 2012, sections 276A.01, subdivision 11; 473F.02, subdivision
335.1913; and 477A.011, subdivision 21, are repealed.
335.20 Sec. 112. EFFECTIVE DATE.
335.21 Unless otherwise specifically provided, this article is effective the day following
335.22final enactment for purposes of limits on net debt, the issuance of bonds, certificates of
335.23indebtedness, and capital notes and is effective beginning for taxes payable in 2014 for
335.24all other purposes.
335.28 Section 1. Minnesota Statutes 2012, section 289A.10, is amended by adding a
335.29subdivision to read:
335.30 Subd. 1a. Recapture tax return required. If a disposition or cessation as provided
335.31by section 291.03, subdivision 11, paragraph (a), has occurred, the qualified heir, as
336.1defined under section 291.03, subdivision 8, paragraph (c), or personal representative of
336.2the decedent's estate must submit a recapture tax return to the commissioner.
336.3EFFECTIVE DATE.This section is effective for estates of decedents dying after
336.4June 30, 2011.
336.5 Sec. 2. Minnesota Statutes 2012, section 289A.12, subdivision 14, is amended to read:
336.6 Subd. 14. Regulated investment companies; reporting exempt-interest
336.7dividends. (a) A regulated investment company paying $10 or more in exempt-interest
336.8dividends to an individual who is a resident of Minnesota must make a return indicating
336.9the amount of the exempt-interest dividends, the name, address, and Social Security
336.10number of the recipient, and any other information that the commissioner specifies. The
336.11return must be provided to the shareholder by February 15 of the year following the year
336.12of the payment. The return provided to the shareholder must include a clear statement,
336.13in the form prescribed by the commissioner, that the exempt-interest dividends must be
336.14included in the computation of Minnesota taxable income. By June 1 of each year, the
336.15regulated investment company must file a copy of the return with the commissioner.
336.16(b) This subdivision applies to regulated investment companies required to register
336.17under chapter 80A.
336.18(c) (b) For purposes of this subdivision, the following definitions apply.
336.19 (1) "Exempt-interest dividends" mean exempt-interest dividends as defined in
336.20section 852(b)(5) of the Internal Revenue Code, but does not include the portion of
336.21exempt-interest dividends that are not required to be added to federal taxable income
336.22under section290.01, subdivision 19a , clause (1)(ii).
336.23 (2) "Regulated investment company" means regulated investment company as
336.24defined in section 851(a) of the Internal Revenue Code or a fund of the regulated
336.25investment company as defined in section 851(g) of the Internal Revenue Code.
336.26EFFECTIVE DATE.This section is effective the day following final enactment.
336.27 Sec. 3. Minnesota Statutes 2012, section 289A.12, is amended by adding a subdivision
336.28to read:
336.29 Subd. 18. Returns by qualified heirs. A qualified heir, as defined in section 291.03,
336.30subdivision 8, paragraph (c), must file two returns with the commissioner attesting that
336.31no disposition or cessation as provided by section 291.03, subdivision 11, paragraph
336.32(a), occurred. The first return must be filed no earlier than 24 months and no later than
337.126 months after the decedent's death. The second return must be filed no earlier than 36
337.2months and no later than 39 months after the decedent's death.
337.3EFFECTIVE DATE.This section is effective for returns required to be filed after
337.4December 31, 2013.
337.5 Sec. 4. Minnesota Statutes 2012, section 289A.18, is amended by adding a subdivision
337.6to read:
337.7 Subd. 3a. Recapture tax return. A recapture tax return must be filed with the
337.8commissioner within six months after the date of the disposition or cessation as provided
337.9by section 291.03, subdivision 11, paragraph (a).
337.10EFFECTIVE DATE.This section is effective for estates of decedents dying after
337.11June 30, 2011.
337.12 Sec. 5. Minnesota Statutes 2012, section 289A.20, subdivision 3, is amended to read:
337.13 Subd. 3. Estate tax. Taxes imposed bychapter 291 section 291.03, subdivision 1,
337.14 take effect at and upon the death of the person whose estate is subject to taxation and are
337.15due and payable on or before the expiration of nine months from that death.
337.16EFFECTIVE DATE.This section is effective for estates of decedents dying after
337.17June 30, 2011.
337.18 Sec. 6. Minnesota Statutes 2012, section 289A.20, is amended by adding a subdivision
337.19to read:
337.20 Subd. 3a. Recapture tax. The additional estate tax imposed by section 291.03,
337.21subdivision 11, paragraph (b), is due and payable on or before the expiration of the date
337.22provided by section 291.03, subdivision 11, paragraph (c).
337.23EFFECTIVE DATE.This section is effective for estates of decedents dying after
337.24June 30, 2011.
337.25 Sec. 7. Minnesota Statutes 2012, section 289A.26, subdivision 3, is amended to read:
337.26 Subd. 3. Short taxable year. (a) A corporation or an entity with a short taxable year
337.27of less than 12 months, but at least four months, must pay estimated tax in equal installments
337.28on or before the 15th day of the third, sixth, ninth, and final month of the short taxable
337.29year, to the extent applicable based on the number of months in the short taxable year.
338.1(b) A corporation or an entity is not required to make estimated tax payments for a
338.2short taxable year unless its tax liability before the first day of the last month of the taxable
338.3year can reasonably be expected to exceed $500.
338.4(c) No payment is required for a short taxable year of less than four months.
338.5EFFECTIVE DATE.This section is effective the day following final enactment.
338.6 Sec. 8. Minnesota Statutes 2012, section 289A.26, subdivision 4, is amended to read:
338.7 Subd. 4. Underpayment of estimated tax. If there is an underpayment of estimated
338.8tax by a corporation or an entity, there shall be added to the tax for the taxable year an
338.9amount determined at the rate in section270C.40 on the amount of the underpayment,
338.10determined under subdivision 5, for the period of the underpayment determined under
338.11subdivision 6. This subdivision does not apply in the first taxable year that a corporation is
338.12subject to the tax imposed under section290.02 or an entity is subject to the tax imposed
338.13under section 290.05, subdivision 3.
338.14EFFECTIVE DATE.This section is effective the day following final enactment.
338.15 Sec. 9. Minnesota Statutes 2012, section 289A.26, subdivision 7, is amended to read:
338.16 Subd. 7. Required installments. (a) Except as otherwise provided in this
338.17subdivision, the amount of a required installment is 25 percent of the required annual
338.18payment.
338.19(b) Except as otherwise provided in this subdivision, the term "required annual
338.20payment" means the lesser of:
338.21(1) 100 percent of the tax shown on the return for the taxable year, or, if no return is
338.22filed, 100 percent of the tax for that year; or
338.23(2) 100 percent of the tax shown on the return of the corporation or entity for the
338.24preceding taxable year provided the return was for a full 12-month period, showed a
338.25liability, and was filed by the corporation or entity.
338.26(c) Except for determining the first required installment for any taxable year,
338.27paragraph (b), clause (2), does not apply in the case of a large corporation. The term
338.28"large corporation" means a corporation or any predecessor corporation that had taxable
338.29net income of $1,000,000 or more for any taxable year during the testing period. The
338.30term "testing period" means the three taxable years immediately preceding the taxable
338.31year involved. A reduction allowed to a large corporation for the first installment that is
338.32allowed by applying paragraph (b), clause (2), must be recaptured by increasing the next
338.33required installment by the amount of the reduction.
339.1(d) In the case of a required installment, if the corporation or entity establishes that
339.2the annualized income installment is less than the amount determined in paragraph (a), the
339.3amount of the required installment is the annualized income installment and the recapture
339.4of previous quarters' reductions allowed by this paragraph must be recovered by increasing
339.5later required installments to the extent the reductions have not previously been recovered.
339.6(e) The "annualized income installment" is the excess, if any, of:
339.7(1) an amount equal to the applicable percentage of the tax for the taxable year
339.8computed by placing on an annualized basis the taxable income:
339.9(i) for the first two months of the taxable year, in the case of the first required
339.10installment;
339.11(ii) for the first two months or for the first five months of the taxable year, in the
339.12case of the second required installment;
339.13(iii) for the first six months or for the first eight months of the taxable year, in the
339.14case of the third required installment; and
339.15(iv) for the first nine months or for the first 11 months of the taxable year, in the
339.16case of the fourth required installment, over
339.17(2) the aggregate amount of any prior required installments for the taxable year.
339.18(3) For the purpose of this paragraph, the annualized income shall be computed
339.19by placing on an annualized basis the taxable income for the year up to the end of the
339.20month preceding the due date for the quarterly payment multiplied by 12 and dividing
339.21the resulting amount by the number of months in the taxable year (2, 5, 6, 8, 9, or 11 as
339.22the case may be) referred to in clause (1).
339.23(4) The "applicable percentage" used in clause (1) is:
339.31(f)(1) If this paragraph applies, the amount determined for any installment must
339.32be determined in the following manner:
339.33(i) take the taxable income for the months during the taxable year preceding the
339.34filing month;
339.35(ii) divide that amount by the base period percentage for the months during the
339.36taxable year preceding the filing month;
339.37(iii) determine the tax on the amount determined under item (ii); and
340.1(iv) multiply the tax computed under item (iii) by the base period percentage for the
340.2filing month and the months during the taxable year preceding the filing month.
340.3(2) For purposes of this paragraph:
340.4(i) the "base period percentage" for a period of months is the average percent that the
340.5taxable income for the corresponding months in each of the three preceding taxable years
340.6bears to the taxable income for the three preceding taxable years;
340.7(ii) the term "filing month" means the month in which the installment is required
340.8to be paid;
340.9(iii) this paragraph only applies if the base period percentage for any six consecutive
340.10months of the taxable year equals or exceeds 70 percent; and
340.11(iv) the commissioner may provide by rule for the determination of the base period
340.12percentage in the case of reorganizations, new corporations or entities, and other similar
340.13circumstances.
340.14(3) In the case of a required installment determined under this paragraph, if the
340.15 corporation or entity determines that the installment is less than the amount determined in
340.16paragraph (a), the amount of the required installment is the amount determined under this
340.17paragraph and the recapture of previous quarters' reductions allowed by this paragraph
340.18must be recovered by increasing later required installments to the extent the reductions
340.19have not previously been recovered.
340.20EFFECTIVE DATE.This section is effective the day following final enactment.
340.21 Sec. 10. Minnesota Statutes 2012, section 289A.26, subdivision 9, is amended to read:
340.22 Subd. 9. Failure to file an estimate. In the case of a corporation or an entity
340.23that fails to file an estimated tax for a taxable year when one is required, the period of
340.24the underpayment runs from the four installment dates in subdivision 2 or 3, whichever
340.25applies, to the earlier of the periods in subdivision 6, clauses (1) and (2).
340.26EFFECTIVE DATE.This section is effective the day following final enactment.
340.27 Sec. 11. Minnesota Statutes 2012, section 290.9705, subdivision 1, is amended to read:
340.28 Subdivision 1. Withholding of payments to out-of-state contractors. (a) In this
340.29section, "person" means a person, corporation, or cooperative, the state of Minnesota and
340.30its political subdivisions, and a city, county, and school district in Minnesota.
340.31(b) A person who in the regular course of business is hiring, contracting, or having a
340.32contract with a nonresident person or foreign corporation, as defined in Minnesota Statutes
340.331986, section
290.01, subdivision 5, to perform construction work in Minnesota, shall
341.1deduct and withhold eight percent ofcumulative calendar year payments made to the
341.2contractorwhich exceed if the value of the contract exceeds $50,000.
341.3EFFECTIVE DATE.This section is effective for payments made to contractors
341.4after December 31, 2013.
341.8 Section 1. Minnesota Statutes 2012, section 287.20, is amended by adding a
341.9subdivision to read:
341.10 Subd. 11. Partition. "Partition" means the division by conveyance of real property
341.11that is held jointly or in common by two or more persons into individually owned interests.
341.12If one of the co-owners gives consideration for all or a part of the individually owned
341.13interest conveyed to them, that portion of the conveyance is not a part of the partition.
341.14EFFECTIVE DATE.This section is effective the day following final enactment.
341.15 Sec. 2. Minnesota Statutes 2012, section 289A.20, subdivision 4, is amended to read:
341.16 Subd. 4. Sales and use tax. (a) The taxes imposed by chapter 297A are due and
341.17payable to the commissioner monthly on or before the 20th day of the month following
341.18the month in which the taxable event occurred, or following another reporting period
341.19as the commissioner prescribes or as allowed under section289A.18, subdivision 4 ,
341.20paragraph (f) or (g), except that:
341.21(1) use taxes due on an annual use tax return as provided under section
289A.11,
341.22subdivision 1 , are payable by April 15 following the close of the calendar year; and.
341.23(2) except as provided in paragraph (f), for a vendor having a liability of $120,000
341.24or more during a fiscal year ending June 30, 2009, and fiscal years thereafter, the taxes
341.25imposed by chapter 297A, except as provided in paragraph (b), are due and payable to the
341.26commissioner monthly in the following manner:
341.27(i) On or before the 14th day of the month following the month in which the taxable
341.28event occurred, the vendor must remit to the commissioner 90 percent of the estimated
341.29liability for the month in which the taxable event occurred.
341.30(ii) On or before the 20th day of the month in which the taxable event occurs, the
341.31vendor must remit to the commissioner a prepayment for the month in which the taxable
341.32event occurs equal to 67 percent of the liability for the previous month.
341.33(iii) On or before the 20th day of the month following the month in which the taxable
341.34event occurred, the vendor must pay any additional amount of tax not previously remitted
342.1under either item (i) or (ii ) or, if the payment made under item (i) or (ii) was greater than
342.2the vendor's liability for the month in which the taxable event occurred, the vendor may
342.3take a credit against the next month's liability in a manner prescribed by the commissioner.
342.4(iv) Once the vendor first pays under either item (i) or (ii), the vendor is required to
342.5continue to make payments in the same manner, as long as the vendor continues having a
342.6liability of $120,000 or more during the most recent fiscal year ending June 30.
342.7(v) Notwithstanding items (i), (ii), and (iv), if a vendor fails to make the required
342.8payment in the first month that the vendor is required to make a payment under either item
342.9(i) or (ii), then the vendor is deemed to have elected to pay under item (ii) and must make
342.10subsequent monthly payments in the manner provided in item (ii).
342.11(vi) For vendors making an accelerated payment under item (ii), for the first month
342.12that the vendor is required to make the accelerated payment, on the 20th of that month, the
342.13vendor will pay 100 percent of the liability for the previous month and a prepayment for
342.14the first month equal to 67 percent of the liability for the previous month.
342.15 (b)Notwithstanding paragraph (a), A vendor having a liability of $120,000 or more
342.16during a fiscal year ending June 30 must remit the June liability for the next year in the
342.17following manner:
342.18 (1) Two business days before June 30 of the year, the vendor must remit 90 percent
342.19of the estimated June liability to the commissioner.
342.20 (2) On or before August 20 of the year, the vendor must pay any additional amount
342.21of tax not remitted in June.
342.22 (c) A vendor having a liability of:
342.23 (1) $10,000 or more, but less than $120,000 during a fiscal year ending June 30,
342.242009, and fiscal years thereafter, must remit by electronic means all liabilities on returns
342.25due for periods beginning in the subsequent calendar year on or before the 20th day of
342.26the month following the month in which the taxable event occurred, or on or before the
342.2720th day of the month following the month in which the sale is reported under section
342.28289A.18, subdivision 4
; or
342.29(2) $120,000 or more, during a fiscal year ending June 30, 2009, and fiscal years
342.30thereafter, must remit by electronic means all liabilities in the manner provided in
342.31paragraph (a), clause (2), on returns due for periods beginning in the subsequent calendar
342.32year, except for 90 percent of the estimated June liability, which is due two business days
342.33before June 30. The remaining amount of the June liability is due on August 20.
342.34(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's
342.35religious beliefs from paying electronically shall be allowed to remit the payment by mail.
342.36The filer must notify the commissioner of revenue of the intent to pay by mail before
343.1doing so on a form prescribed by the commissioner. No extra fee may be charged to a
343.2person making payment by mail under this paragraph. The payment must be postmarked
343.3at least two business days before the due date for making the payment in order to be
343.4considered paid on a timely basis.
343.5(e) Whenever the liability is $120,000 or more separately for: (1) the tax imposed
343.6under chapter 297A; (2) a fee that is to be reported on the same return as and paid with the
343.7chapter 297A taxes; or (3) any other tax that is to be reported on the same return as and
343.8paid with the chapter 297A taxes, then the payment of all the liabilities on the return must
343.9be accelerated as provided in this subdivision.
343.10(f) At the start of the first calendar quarter at least 90 days after the cash flow account
343.11established in section
16A.152, subdivision 1, and the budget reserve account established in
343.12section
16A.152, subdivision 1a, reach the amounts listed in section
16A.152, subdivision
343.132
, paragraph (a), the remittance of the accelerated payments required under paragraph (a),
343.14clause (2), must be suspended. The commissioner of management and budget shall notify
343.15the commissioner of revenue when the accounts have reached the required amounts.
343.16Beginning with the suspension of paragraph (a), clause (2), for a vendor with a liability of
343.17$120,000 or more during a fiscal year ending June 30, 2009, and fiscal years thereafter, the
343.18taxes imposed by chapter 297A are due and payable to the commissioner on the 20th day
343.19of the month following the month in which the taxable event occurred. Payments of tax
343.20liabilities for taxable events occurring in June under paragraph (b) are not changed.
343.21EFFECTIVE DATE.This section is effective the day following final enactment.
343.22 Sec. 3. Minnesota Statutes 2012, section 297A.665, is amended to read:
343.23297A.665 PRESUMPTION OF TAX; BURDEN OF PROOF.
343.24 (a) For the purpose of the proper administration of this chapter and to prevent
343.25evasion of the tax, until the contrary is established, it is presumed that:
343.26 (1) all gross receipts are subject to the tax; and
343.27 (2) all retail sales for delivery in Minnesota are for storage, use, or other consumption
343.28in Minnesota.
343.29 (b) The burden of proving that a sale is not a taxable retail sale is on the seller.
343.30However, a seller is relieved of liability if:
343.31 (1) the seller obtains a fully completed exemption certificate or all the relevant
343.32information required by section297A.72, subdivision 2 , at the time of the sale or within
343.3390 days after the date of the sale; or
344.1 (2) if the seller has not obtained a fully completed exemption certificate or all the
344.2relevant information required by section297A.72, subdivision 2 , within the time provided
344.3in clause (1), within 120 days after a request for substantiation by the commissioner,
344.4the seller either:
344.5 (i) obtainsin good faith from the purchaser a fully completed exemption certificate
344.6or all the relevant information required by section297A.72, subdivision 2 , from the
344.7purchaser taken in good faith which means that the exemption certificate claims an
344.8exemption that (A) was statutorily available on the date of the transaction, (B) could be
344.9applicable to the item for which the exemption is claimed, and (C) is reasonable for the
344.10purchaser's type of business; or
344.11 (ii) proves by other means that the transaction was not subject to tax.
344.12 (c) Notwithstanding paragraph (b), relief from liability does not apply to a seller who:
344.13 (1) fraudulently fails to collect the tax; or
344.14 (2) solicits purchasers to participate in the unlawful claim of an exemption.
344.15(d) Notwithstanding paragraph (b), relief from liability does not apply to a seller
344.16who has obtained information under paragraph (b), clause (2), if through the audit process
344.17the commissioner finds the following:
344.18(1) that at the time the information was provided the seller had knowledge or had
344.19reason to know that the information relating to the exemption was materially false; or
344.20(2) that the seller knowingly participated in activity intended to purposefully evade
344.21the sales tax due on the transaction.
344.22(d) (e) A certified service provider, as defined in section
297A.995, subdivision 2 , is
344.23relieved of liability under this section to the extent a seller who is its client is relieved of
344.24liability.
344.25(e) (f) A purchaser of tangible personal property or any items listed in section
297A.63
344.26that are shipped or brought to Minnesota by the purchaser has the burden of proving that the
344.27property was not purchased from a retailer for storage, use, or consumption in Minnesota.
344.28(f) (g) If a seller claims that certain sales are exempt and does not provide the
344.29certificate, information, or proof required by paragraph (b), clause (2), within 120 days
344.30after the date of the commissioner's request for substantiation, then the exemptions
344.31claimed by the seller that required substantiation are disallowed.
344.32EFFECTIVE DATE.This section is effective retroactively from January 1, 2013.
344.33 Sec. 4. Minnesota Statutes 2012, section 297F.01, subdivision 23, is amended to read:
344.34 Subd. 23. Wholesale sales price. "Wholesale sales price" means the pricestated
344.35on the price list in effect at the time of sale for which a manufacturer or person sells a
345.1tobacco product to a distributor, exclusive of any discount, promotional offer, or other
345.2reduction. For purposes of this subdivision, "price list" means the manufacturer's price at
345.3which tobacco products are made available for sale to all distributors on an ongoing basis
345.4 at which a distributor purchases a tobacco product. Wholesale sales price includes the
345.5applicable federal excise tax, freight charges, or packaging costs, regardless of whether
345.6they were included in the purchase price.
345.7EFFECTIVE DATE.This section is effective for purchases made after December
345.831, 2013.
345.9 Sec. 5. Minnesota Statutes 2012, section 297G.04, subdivision 2, is amended to read:
345.10 Subd. 2. Tax credit. A qualified brewer producing fermented malt beverages
345.11is entitled to a tax credit of $4.60 per barrel on 25,000 barrels sold in any fiscal year
345.12beginning July 1, regardless of the alcohol content of the product. Qualified brewers may
345.13take the credit on the 18th day of each month, but the total credit allowed may not exceed
345.14in any fiscal year the lesser of:
345.15(1) the liability for tax; or
345.16(2) $115,000.
345.17For purposes of this subdivision, a "qualified brewer" means a brewer, whether
345.18or not located in this state, manufacturing less than 100,000 barrels of fermented malt
345.19beverages in the calendar year immediately preceding thecalendar fiscal year for which
345.20the credit under this subdivision is claimed. In determining the number of barrels, all
345.21brands or labels of a brewer must be combined. All facilities for the manufacture of
345.22fermented malt beverages owned or controlled by the same person, corporation, or other
345.23entity must be treated as a single brewer.
345.24EFFECTIVE DATE.This section is effective the day following final enactment.
345.25 Sec. 6. Minnesota Statutes 2012, section 297I.05, subdivision 7, is amended to read:
345.26 Subd. 7. Nonadmitted insurance premium tax. (a) A tax is imposed on surplus
345.27lines brokers. The rate of tax is equal to three percent of the gross premiums less return
345.28premiums paid by an insured whose home state is Minnesota.
345.29(b) A tax is imposed onpersons, firms, or corporations a person, firm, corporation,
345.30or purchasing group as defined in section 60E.02, or any member of a purchasing group,
345.31 thatprocure procures insurance directly from a nonadmitted insurer. The rate of tax is
345.32equal to two percent of the gross premiums less return premiums paid by an insured
345.33whose home state is Minnesota.
346.1(c) No state other than the home state of an insured may require any premium tax
346.2payment for nonadmitted insurance. When Minnesota is the home state of the insured,
346.3as provided under section297I.01 , 100 percent of the gross premiums are taxable in
346.4Minnesota with no allocation of the tax to other states.
346.5EFFECTIVE DATE.This section is effective for premiums received after
346.6December 31, 2013.
346.7 Sec. 7. Minnesota Statutes 2012, section 297I.05, subdivision 11, is amended to read:
346.8 Subd. 11. Retaliatory provisions. (a) If any other state or country imposes any
346.9taxes, fines, deposits, penalties, licenses, or fees upon any insurance companies of this
346.10state and their agents doing business in another state or country that are in addition to or in
346.11excess of those imposed by the laws of this state upon foreign insurance companies and
346.12their agents doing business in this state, the same taxes, fines, deposits, penalties, licenses,
346.13and fees are imposed upon every similar insurance company of that state or country and
346.14their agents doing or applying to do business in this state.
346.15(b) If any conditions precedent to the right to do business in any other state or
346.16country are imposed by the laws of that state or country, beyond those imposed upon
346.17foreign companies by the laws of this state, the same conditions precedent are imposed
346.18upon every similar insurance company of that state or country and their agents doing or
346.19applying to do business in that state.
346.20(c) For purposes of this subdivision, "taxes, fines, deposits, penalties, licenses, or
346.21fees" means an amount of money that is deposited in the general revenue fund of the state
346.22or other similar fund in another state or country and is not dedicated to a special purpose
346.23or use or money deposited in the general revenue fund of the state or other similar fund in
346.24another state or country and appropriated to the commissioner of commerce or insurance
346.25for the operation of the Department of Commerce or other similar agency with jurisdiction
346.26over insurance. Taxes, fines, deposits, penalties, licenses, or fees do not include:
346.27(1) special purpose obligations or assessments imposed in connection with particular
346.28kinds of insurance, including but not limited to assessments imposed in connection with
346.29residual market mechanisms; or
346.30(2) assessments made by the insurance guaranty association, life and health
346.31guarantee association, or similar association.
346.32(d) This subdivision applies to taxes imposed under subdivisions 1,; 3,; 4, 6, and; 12,
346.33paragraph (a), clauses (1) and (2); and 14.
346.34(e) This subdivision does not apply to insurance companies organized or domiciled
346.35in a state or country, the laws of which do not impose retaliatory taxes, fines, deposits,
347.1penalties, licenses, or fees or which grant, on a reciprocal basis, exemptions from
347.2retaliatory taxes, fines, deposits, penalties, licenses, or fees to insurance companies
347.3domiciled in this state.
347.4EFFECTIVE DATE.This section is effective the day following final enactment.
347.5 Sec. 8. Minnesota Statutes 2012, section 297I.05, subdivision 12, is amended to read:
347.6 Subd. 12. Other entities. (a) A tax is imposed equal to two percent of:
347.7 (1) gross premiums less return premiums written for risks resident or located in
347.8Minnesota by a risk retention group;
347.9 (2) gross premiums less return premiums received by an attorney in fact acting
347.10in accordance with chapter 71A;
347.11 (3) gross premiums less return premiums received pursuant to assigned risk policies
347.12and contracts of coverage under chapter 79; and
347.13 (4) the direct funded premium received by the reinsurance association under section
347.1479.34
from self-insurers approved under section
176.181 and political subdivisions that
347.15self-insure; and.
347.16(5) gross premiums less return premiums paid to an insurer other than a licensed
347.17insurance company or a surplus lines broker for coverage of risks resident or located in
347.18Minnesota by a purchasing group or any members of the purchasing group to a broker or
347.19agent for the purchasing group.
347.20 (b) A tax is imposed on a joint self-insurance plan operating under chapter 60F. The
347.21rate of tax is equal to two percent of the total amount of claims paid during the fund year,
347.22with no deduction for claims wholly or partially reimbursed through stop-loss insurance.
347.23 (c) A tax is imposed on a joint self-insurance plan operating under chapter 62H.
347.24The rate of tax is equal to two percent of the total amount of claims paid during the
347.25fund's fiscal year, with no deduction for claims wholly or partially reimbursed through
347.26stop-loss insurance.
347.27 (d) A tax is imposed equal to the tax imposed under section297I.05, subdivision 5 ,
347.28on the gross premiums less return premiums on all coverages received by an accountable
347.29provider network or agents of an accountable provider network in Minnesota, in cash or
347.30otherwise, during the year.
347.31EFFECTIVE DATE.This section is effective for premiums received after
347.32December 31, 2013.
347.33 Sec. 9. Minnesota Statutes 2012, section 297I.30, subdivision 1, is amended to read:
348.1 Subdivision 1. General rule. On or before March 1, every taxpayer subject to
348.2taxation under section297I.05, subdivisions 1 to
5 ,; 7, paragraph (b),; 12, paragraphs (a),
348.3clauses (1) to (4), (b), (c), and (d),; and 14, shall file an annual return for the preceding
348.4calendar year in the form prescribed by the commissioner.
348.5EFFECTIVE DATE.This section is effective for premiums received after
348.6December 31, 2013.
348.7 Sec. 10. Minnesota Statutes 2012, section 297I.30, subdivision 2, is amended to read:
348.8 Subd. 2. Surplus lines brokersand purchasing groups. On or before February
348.915 and August 15 of each year, every surplus lines broker subject to taxation under
348.10section297I.05, subdivision 7 , paragraph (a), and every purchasing group or member of
348.11a purchasing group subject to tax under section
297I.05, subdivision 12, paragraph (a),
348.12clause (5), shall file a return with the commissioner for the preceding six-month period
348.13ending December 31, or June 30, in the form prescribed by the commissioner.
348.14EFFECTIVE DATE.This section is effective for premiums received after
348.15December 31, 2013.
348.16 Sec. 11. REPEALER.
348.17Minnesota Statutes 2012, section 289A.60, subdivision 31, is repealed.
348.18EFFECTIVE DATE.This section is effective the day following final enactment.
348.22 Section 1. Minnesota Statutes 2012, section 123A.455, subdivision 1, is amended to
348.23read:
348.24 Subdivision 1. Definitions. "Split residential property parcel" means a parcel of
348.25real estate that is located within the boundaries of more than one school district and that
348.26is classified as residential property under:
348.27 (1) section273.13, subdivision 22 , paragraph (a) or (b);
348.28 (2) section273.13, subdivision 25 , paragraph (b), clause (1); or
348.29 (3) section273.13, subdivision 25 , paragraph (c), clause (1).
348.30EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
348.31thereafter.
349.1 Sec. 2. Minnesota Statutes 2012, section 270.077, is amended to read:
349.2270.077 TAXES CREDITED TO STATE AIRPORTS FUND.
349.3 All taxes levied under sections270.071 to
270.079 must be collected by the
349.4commissioner and credited to the state airports fund created in section360.017 .
349.5EFFECTIVE DATE.This section is effective the day following final enactment.
349.6 Sec. 3. Minnesota Statutes 2012, section 270.41, subdivision 5, is amended to read:
349.7 Subd. 5. Prohibited activity. A licensed assessor or other person employed by an
349.8assessment jurisdiction or contracting with an assessment jurisdiction for the purpose
349.9of valuing or classifying property for property tax purposes is prohibited from making
349.10appraisals or analyses, accepting an appraisal assignment, or preparing an appraisal report
349.11as defined in section82B.021, subdivisions 2 , 4, 6, and 7, on any property within the
349.12assessment jurisdiction where the individual is employed or performing the duties of the
349.13assessor under contract. Violation of this prohibition shall result in immediate revocation
349.14of the individual's license to assess property for property tax purposes. This prohibition
349.15must not be construed to prohibit an individual from carrying out any duties required
349.16for the proper assessment of property for property tax purposes or performing duties
349.17enumerated in section273.061, subdivision 7 or 8. If a formal resolution has been adopted
349.18by the governing body of a governmental unit, which specifies the purposes for which
349.19such work will be done, this prohibition does not apply to appraisal activities undertaken
349.20on behalf of and at the request of the governmental unit that has employed or contracted
349.21with the individual. The resolution may only allow appraisal activities which are related to
349.22condemnations, right-of-way acquisitions, land exchanges, or special assessments.
349.23EFFECTIVE DATE.This section is effective the day following final enactment.
349.24 Sec. 4. Minnesota Statutes 2012, section 270C.34, subdivision 1, is amended to read:
349.25 Subdivision 1. Authority. (a) The commissioner may abate, reduce, or refund any
349.26penalty or interest that is imposed by a law administered by the commissioner, or imposed
349.27by section270.0725, subdivision 1 or 2, or 270.075, subdivision 2, as a result of the late
349.28payment of tax or late filing of a return, or any part of an additional tax charge under
349.29section289A.25, subdivision 2 , or
289A.26, subdivision 4 , if the failure to timely pay the
349.30tax or failure to timely file the return is due to reasonable cause, or if the taxpayer is located
349.31in a presidentially declared disaster or in a presidentially declared state of emergency area
349.32or in an area declared to be in a state of emergency by the governor under section12.31 .
350.1 (b) The commissioner shall abate any part of a penalty or additional tax charge
350.2under section289A.25, subdivision 2 , or
289A.26, subdivision 4 , attributable to erroneous
350.3advice given to the taxpayer in writing by an employee of the department acting in
350.4an official capacity, if the advice:
350.5 (1) was reasonably relied on and was in response to a specific written request of the
350.6taxpayer; and
350.7 (2) was not the result of failure by the taxpayer to provide adequate or accurate
350.8information.
350.9EFFECTIVE DATE.This section is effective the day following final enactment.
350.10 Sec. 5. Minnesota Statutes 2012, section 272.01, subdivision 2, is amended to read:
350.11 Subd. 2. Exempt property used by private entity for profit. (a) When any real or
350.12personal property which is exempt from ad valorem taxes, and taxes in lieu thereof, is
350.13leased, loaned, or otherwise made available and used by a private individual, association,
350.14or corporation in connection with a business conducted for profit, there shall be imposed a
350.15tax, for the privilege of so using or possessing such real or personal property, in the same
350.16amount and to the same extent as though the lessee or user was the owner of such property.
350.17 (b) The tax imposed by this subdivision shall not apply to:
350.18 (1) property leased or used as a concession in or relative to the use in whole
350.19or part of a public park, market, fairgrounds, port authority, economic development
350.20authority established under chapter 469, municipal auditorium, municipal parking facility,
350.21municipal museum, or municipal stadium;
350.22 (2) property of an airport owned by a city, town, county, or group thereof which is:
350.23 (i) leased to or used by any person or entity including a fixed base operator; and
350.24 (ii) used as a hangar for the storage or repair of aircraft or to provide aviation goods,
350.25services, or facilities to the airport or general public;
350.26the exception from taxation provided in this clause does not apply to:
350.27 (i) property located at an airport owned or operated by the Metropolitan Airports
350.28Commission or by a city of over 50,000 population according to the most recent federal
350.29census or such a city's airport authority; or
350.30 (ii) hangars leased by a private individual, association, or corporation in connection
350.31with a business conducted for profit other than an aviation-related business;
350.32 (3) property constituting or used as a public pedestrian ramp or concourse in
350.33connection with a public airport;
350.34 (4) property constituting or used as a passenger check-in area or ticket sale counter,
350.35boarding area, or luggage claim area in connection with a public airport but not the
351.1airports owned or operated by the Metropolitan Airports Commission or cities of over
351.250,000 population or an airport authority therein. Real estate owned by a municipality
351.3in connection with the operation of a public airport and leased or used for agricultural
351.4purposes is not exempt;
351.5 (5) property leased, loaned, or otherwise made available to a private individual,
351.6corporation, or association under a cooperative farming agreement made pursuant to
351.7section97A.135 ; or
351.8 (6) property leased, loaned, or otherwise made available to a private individual,
351.9corporation, or association under section272.68, subdivision 4 .
351.10 (c) Taxes imposed by this subdivision are payable as in the case of personal property
351.11taxes and shall be assessed to the lessees or users of real or personal property in the same
351.12manner as taxes assessed to owners of real or personal property, except that such taxes
351.13shall not become a lien against the property. When due, the taxes shall constitute a debt due
351.14from the lessee or user to the state, township, city, county, and school district for which the
351.15taxes were assessed and shall be collected in the same manner as personal property taxes.
351.16If property subject to the tax imposed by this subdivision is leased or used jointly by two or
351.17more persons, each lessee or user shall be jointly and severally liable for payment of the tax.
351.18 (d) The tax on real property of the federal government, the state or any of its political
351.19subdivisions that is leasedby, loaned, or otherwise made available to a private individual,
351.20association, or corporation and becomes taxable under this subdivision or other provision
351.21of law must be assessed and collected as a personal property assessment. The taxes do
351.22not become a lien against the real property.
351.23EFFECTIVE DATE.This section is effective the day following final enactment.
351.24 Sec. 6. Minnesota Statutes 2012, section 272.02, subdivision 97, is amended to read:
351.25 Subd. 97. Property used in business of mining subject to net proceeds tax. The
351.26following property used in the business of mining that is subject to the net proceeds tax
351.27under section298.015 is exempt:
351.28 (1) deposits of ores, metals, and minerals and the lands in which they are contained;
351.29 (2) all real and personal property used in mining, quarrying, producing, or refining
351.30ores, minerals, or metals, including lands occupied by or used in connection with the
351.31mining, quarrying, production, or ore refining facilities; and
351.32 (3) concentrateor direct reduced ore.
351.33 This exemption applies for each year that a person subject to tax under section
351.34298.015
uses the property for mining, quarrying, producing, or refining ores, metals, or
351.35minerals.
352.1EFFECTIVE DATE.This section is effective the day following final enactment.
352.2 Sec. 7. Minnesota Statutes 2012, section 272.03, subdivision 9, is amended to read:
352.3 Subd. 9. Person. "Person"includes means an individual, association, estate, trust,
352.4partnership, firm, company, or corporation.
352.5EFFECTIVE DATE.This section is effective the day following final enactment.
352.6 Sec. 8. Minnesota Statutes 2012, section 273.114, subdivision 6, is amended to read:
352.7 Subd. 6. Additional taxes. (a) When real property which is being, or has been
352.8valued and assessed under this section is sold, transferred, or no longer qualifies under
352.9subdivision 2, the portion sold, transferred, or no longer qualifying shall be subject to
352.10additional taxes in the amount equal to the difference between the taxes determined in
352.11accordance with subdivision 3 and the amount determined under subdivision 4, provided
352.12that the amount determined under subdivision 4 shall not be greater than it would have
352.13been had the actual bona fide sale price of the real property at an arm's-length transaction
352.14been used in lieu of the market value determined under subdivision 4. The additional taxes
352.15shall be extended against the property on the tax list for taxes payable in the current year,
352.16provided that no interest or penalties shall be levied on the additional taxes if timely paid
352.17and provided that the additional taxes shall only be levied with respect to the current year
352.18plus two prior years that the property has been valued and assessed under this section.
352.19 (b) In the case of a sale or transfer, the additional taxes under paragraph (a) shall not
352.20be extended against the property if the new owner submits a successful application under
352.21this section by the later of May 1 of the current year or 30 days after the sale or transfer.
352.22 (c) For the purposes of this section, the following events do not constitute a sale or
352.23transfer for property that qualified under subdivision 2 prior to the event:
352.24 (1) death of a property owner when the surviving owners retain ownership of the
352.25property;
352.26 (2) divorce of a married couple when one of the spouses retains ownership of the
352.27property;
352.28 (3) marriage of a single property owner when that owner retains ownership of the
352.29property in whole or in part;
352.30 (4) the organization or reorganization of a farm ownership entity that is not prohibited
352.31from owning agricultural land in this state under section 500.24, if all owners maintain the
352.32same beneficial interest both before and after the organization or reorganization; and
353.1 (5) transfer of the property to a trust or trustee, provided that the individual owners
353.2of the property are the grantors of the trust and they maintain the same beneficial interest
353.3both before and after placement of the property in trust.
353.4EFFECTIVE DATE.This section is effective the day following final enactment.
353.5 Sec. 9. Minnesota Statutes 2012, section 273.13, subdivision 23, is amended to read:
353.6 Subd. 23. Class 2. (a) An agricultural homestead consists of class 2a agricultural
353.7land that is homesteaded, along with any class 2b rural vacant land that is contiguous to
353.8the class 2a land under the same ownership. The market value of the house and garage
353.9and immediately surrounding one acre of land has the same class rates as class 1a or 1b
353.10property under subdivision 22. The value of the remaining land including improvements
353.11up to the first tier valuation limit of agricultural homestead property has a net class rate
353.12of 0.5 percent of market value. The remaining property over the first tier has a class rate
353.13of one percent of market value. For purposes of this subdivision, the "first tier valuation
353.14limit of agricultural homestead property" and "first tier" means the limit certified under
353.15section273.11 , subdivision 23.
353.16 (b) Class 2a agricultural land consists of parcels of property, or portions thereof, that
353.17are agricultural land and buildings. Class 2a property has a net class rate of one percent of
353.18market value, unless it is part of an agricultural homestead under paragraph (a). Class 2a
353.19property must also include any property that would otherwise be classified as 2b, but is
353.20interspersed with class 2a property, including but not limited to sloughs, wooded wind
353.21shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback requirement,
353.22and other similar land that is impractical for the assessor to value separately from the rest of
353.23the property or that is unlikely to be able to be sold separately from the rest of the property.
353.24 An assessor may classify the part of a parcel described in this subdivision that is used
353.25for agricultural purposes as class 2a and the remainder in the class appropriate to its use.
353.26 (c) Class 2b rural vacant land consists of parcels of property, or portions thereof,
353.27that are unplatted real estate, rural in character and not used for agricultural purposes,
353.28including land used for growing trees for timber, lumber, and wood and wood products,
353.29that is not improved with a structure. The presence of a minor, ancillary nonresidential
353.30structure as defined by the commissioner of revenue does not disqualify the property from
353.31classification under this paragraph. Any parcel of 20 acres or more improved with a
353.32structure that is not a minor, ancillary nonresidential structure must be split-classified, and
353.33ten acres must be assigned to the split parcel containing the structure. Class 2b property
353.34has a net class rate of one percent of market value unless it is part of an agricultural
353.35homestead under paragraph (a), or qualifies as class 2c under paragraph (d).
354.1 (d) Class 2c managed forest land consists of no less than 20 and no more than 1,920
354.2acres statewide per taxpayer that is being managed under a forest management plan that
354.3meets the requirements of chapter 290C, but is not enrolled in the sustainable forest
354.4resource management incentive program. It has a class rate of .65 percent, provided that
354.5the owner of the property must apply to the assessor in order for the property to initially
354.6qualify for the reduced rate and provide the information required by the assessor to verify
354.7that the property qualifies for the reduced rate. If the assessor receives the application
354.8and information before May 1 in an assessment year, the property qualifies beginning
354.9with that assessment year. If the assessor receives the application and information after
354.10April 30 in an assessment year, the property may not qualify until the next assessment
354.11year. The commissioner of natural resources must concur that the land is qualified. The
354.12commissioner of natural resources shall annually provide county assessors verification
354.13information on a timely basis. The presence of a minor, ancillary nonresidential structure
354.14as defined by the commissioner of revenue does not disqualify the property from
354.15classification under this paragraph.
354.16 (e) Agricultural land as used in this section means:
354.17 (1) contiguous acreage of ten acres or more, used during the preceding year for
354.18agricultural purposes.; or
354.19 (2) contiguous acreage used during the preceding year for an intensive livestock or
354.20poultry confinement operation, provided that land used only for pasturing or grazing
354.21does not qualify under this clause.
354.22 "Agricultural purposes" as used in this section means the raising, cultivation, drying,
354.23or storage of agricultural products for sale, or the storage of machinery or equipment
354.24used in support of agricultural production by the same farm entity. For a property to be
354.25classified as agricultural based only on the drying or storage of agricultural products,
354.26the products being dried or stored must have been produced by the same farm entity as
354.27the entity operating the drying or storage facility. "Agricultural purposes" also includes
354.28enrollment in the Reinvest in Minnesota program under sections103F.501 to
103F.535 or
354.29the federal Conservation Reserve Program as contained in Public Law 99-198 or a similar
354.30state or federal conservation program if the property was classified as agricultural (i)
354.31under this subdivision forthe assessment year 2002 taxes payable in 2003 because of its
354.32enrollment in a qualifying program and the land remains enrolled or (ii) in the year prior
354.33to its enrollment. Agricultural classification shall not be based upon the market value of
354.34any residential structures on the parcel or contiguous parcels under the same ownership.
355.1 "Contiguous acreage," for purposes of this paragraph, means all of, or a contiguous
355.2portion of, a tax parcel as described in section 272.193, or all of, or a contiguous portion
355.3of, a set of contiguous tax parcels under that section that are owned by the same person.
355.4 (f)Real estate of Agricultural land under this section also includes:
355.5 (1) contiguous acreage that is less than ten acres, which is in size and exclusively or
355.6intensively used in the preceding year for raising or cultivating agricultural products, shall
355.7be considered as agricultural land. To qualify under this paragraph, property that includes
355.8a residential structure must be used intensively for one of the following purposes:; or
355.9 (2) contiguous acreage that contains a residence and is less than 11 acres in size, if
355.10the contiguous acreage exclusive of the house, garage, and surrounding one acre of land
355.11was used in the preceding year for one or more of the following three uses:
355.12 (i) for an intensive grain drying or storageof grain operation, or for intensive
355.13machinery or equipment storageof machinery or equipment activities used to support
355.14agricultural activities on other parcels of property operated by the same farming entity;
355.15 (ii) as a nursery, provided that only those acres used intensively to produce nursery
355.16stock are considered agricultural land; or
355.17(iii) for livestock or poultry confinement, provided that land that is used only for
355.18pasturing and grazing does not qualify; or
355.19(iv) (iii) for intensive market farming; for purposes of this paragraph, "market
355.20farming" means the cultivation of one or more fruits or vegetables or production of animal
355.21or other agricultural products for sale to local markets by the farmer or an organization
355.22with which the farmer is affiliated.
355.23 "Contiguous acreage," for purposes of this paragraph, means all of a tax parcel as
355.24described in section 272.193, or all of a set of contiguous tax parcels under that section
355.25that are owned by the same person.
355.26 (g) Land shall be classified as agricultural even if all or a portion of the agricultural
355.27use of that property is the leasing to, or use by another person for agricultural purposes.
355.28 Classification under this subdivision is not determinative for qualifying under
355.29section273.111 .
355.30 (h) The property classification under this section supersedes, for property tax
355.31purposes only, any locally administered agricultural policies or land use restrictions that
355.32define minimum or maximum farm acreage.
355.33 (i) The term "agricultural products" as used in this subdivision includes production
355.34for sale of:
356.1 (1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing
356.2animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains,
356.3bees, and apiary products by the owner;
356.4 (2) fish bred for sale and consumption if the fish breeding occurs on land zoned
356.5for agricultural use;
356.6 (3) the commercial boarding of horses, which may include related horse training and
356.7riding instruction, if the boarding is done on property that is also used for raising pasture
356.8to graze horses or raising or cultivating other agricultural products as defined in clause (1);
356.9 (4) property which is owned and operated by nonprofit organizations used for
356.10equestrian activities, excluding racing;
356.11 (5) game birds and waterfowl bred and raised (i) on a game farm licensed under
356.12section97A.105 , provided that the annual licensing report to the Department of Natural
356.13Resources, which must be submitted annually by March 30 to the assessor, indicates
356.14that at least 500 birds were raised or used for breeding stock on the property during the
356.15preceding year and that the owner provides a copy of the owner's most recent schedule F;
356.16or (ii) for use on a shooting preserve licensed under section97A.115 ;
356.17 (6) insects primarily bred to be used as food for animals;
356.18 (7) trees, grown for sale as a crop, including short rotation woody crops, and not
356.19sold for timber, lumber, wood, or wood products; and
356.20 (8) maple syrup taken from trees grown by a person licensed by the Minnesota
356.21Department of Agriculture under chapter 28A as a food processor.
356.22 (j) If a parcel used for agricultural purposes is also used for commercial or industrial
356.23purposes, including but not limited to:
356.24 (1) wholesale and retail sales;
356.25 (2) processing of raw agricultural products or other goods;
356.26 (3) warehousing or storage of processed goods; and
356.27 (4) office facilities for the support of the activities enumerated in clauses (1), (2),
356.28and (3),
356.29the assessor shall classify the part of the parcel used for agricultural purposes as class
356.301b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its
356.31use. The grading, sorting, and packaging of raw agricultural products for first sale is
356.32considered an agricultural purpose. A greenhouse or other building where horticultural
356.33or nursery products are grown that is also used for the conduct of retail sales must be
356.34classified as agricultural if it is primarily used for the growing of horticultural or nursery
356.35products from seed, cuttings, or roots and occasionally as a showroom for the retail sale of
357.1those products. Use of a greenhouse or building only for the display of already grown
357.2horticultural or nursery products does not qualify as an agricultural purpose.
357.3 (k) The assessor shall determine and list separately on the records the market value
357.4of the homestead dwelling and the one acre of land on which that dwelling is located. If
357.5any farm buildings or structures are located on this homesteaded acre of land, their market
357.6value shall not be included in this separate determination.
357.7 (l) Class 2d airport landing area consists of a landing area or public access area of
357.8a privately owned public use airport. It has a class rate of one percent of market value.
357.9To qualify for classification under this paragraph, a privately owned public use airport
357.10must be licensed as a public airport under section360.018 . For purposes of this paragraph,
357.11"landing area" means that part of a privately owned public use airport properly cleared,
357.12regularly maintained, and made available to the public for use by aircraft and includes
357.13runways, taxiways, aprons, and sites upon which are situated landing or navigational aids.
357.14A landing area also includes land underlying both the primary surface and the approach
357.15surfaces that comply with all of the following:
357.16 (i) the land is properly cleared and regularly maintained for the primary purposes of
357.17the landing, taking off, and taxiing of aircraft; but that portion of the land that contains
357.18facilities for servicing, repair, or maintenance of aircraft is not included as a landing area;
357.19 (ii) the land is part of the airport property; and
357.20 (iii) the land is not used for commercial or residential purposes.
357.21The land contained in a landing area under this paragraph must be described and certified
357.22by the commissioner of transportation. The certification is effective until it is modified,
357.23or until the airport or landing area no longer meets the requirements of this paragraph.
357.24For purposes of this paragraph, "public access area" means property used as an aircraft
357.25parking ramp, apron, or storage hangar, or an arrival and departure building in connection
357.26with the airport.
357.27 (m) Class 2e consists of land with a commercial aggregate deposit that is not actively
357.28being mined and is not otherwise classified as class 2a or 2b, provided that the land is not
357.29located in a county that has elected to opt-out of the aggregate preservation program as
357.30provided in section273.1115, subdivision 6 . It has a class rate of one percent of market
357.31value. To qualify for classification under this paragraph, the property must be at least
357.32ten contiguous acres in size and the owner of the property must record with the county
357.33recorder of the county in which the property is located an affidavit containing:
357.34 (1) a legal description of the property;
357.35 (2) a disclosure that the property contains a commercial aggregate deposit that is not
357.36actively being mined but is present on the entire parcel enrolled;
358.1 (3) documentation that the conditional use under the county or local zoning
358.2ordinance of this property is for mining; and
358.3 (4) documentation that a permit has been issued by the local unit of government
358.4or the mining activity is allowed under local ordinance. The disclosure must include a
358.5statement from a registered professional geologist, engineer, or soil scientist delineating
358.6the deposit and certifying that it is a commercial aggregate deposit.
358.7 For purposes of this section and section273.1115 , "commercial aggregate deposit"
358.8means a deposit that will yield crushed stone or sand and gravel that is suitable for use
358.9as a construction aggregate; and "actively mined" means the removal of top soil and
358.10overburden in preparation for excavation or excavation of a commercial deposit.
358.11 (n) When any portion of the property under this subdivision or subdivision 22 begins
358.12to be actively mined, the owner must file a supplemental affidavit within 60 days from
358.13the day any aggregate is removed stating the number of acres of the property that is
358.14actively being mined. The acres actively being mined must be (1) valued and classified
358.15under subdivision 24 in the next subsequent assessment year, and (2) removed from the
358.16aggregate resource preservation property tax program under section273.1115 , if the
358.17land was enrolled in that program. Copies of the original affidavit and all supplemental
358.18affidavits must be filed with the county assessor, the local zoning administrator, and the
358.19Department of Natural Resources, Division of Land and Minerals. A supplemental
358.20affidavit must be filed each time a subsequent portion of the property is actively mined,
358.21provided that the minimum acreage change is five acres, even if the actual mining activity
358.22constitutes less than five acres.
358.23 (o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are
358.24not rules and are exempt from the rulemaking provisions of chapter 14, and the provisions
358.25in section14.386 concerning exempt rules do not apply.
358.26EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
358.27thereafter.
358.28 Sec. 10. Minnesota Statutes 2012, section 273.19, subdivision 1, is amended to read:
358.29 Subdivision 1. Tax-exempt property; lease. Except as provided in subdivision 3 or
358.304, tax-exempt property held under a lease for a term of at least one year, and not taxable
358.31under section272.01, subdivision 2 , or under a contract for the purchase thereof, shall be
358.32considered, for all purposes of taxation, as the property of the person holding it. In this
358.33subdivision, "tax-exempt property" means property owned by the United States, the state
358.34 or any of its political subdivisions, a school, or any religious, scientific, or benevolent
358.35society or institution, incorporated or unincorporated, or any corporation whose property
359.1is not taxed in the same manner as other property. This subdivision does not apply to
359.2property exempt from taxation under section272.01, subdivision 2 , paragraph (b), clauses
359.3(2), (3), and (4), or to property exempt from taxation under section272.0213 .
359.4EFFECTIVE DATE.This section is effective the day following final enactment.
359.5 Sec. 11. Minnesota Statutes 2012, section 273.372, subdivision 4, is amended to read:
359.6 Subd. 4. Administrative appeals. (a) Companies that submit the reports under
359.7section270.82 or
273.371 by the date specified in that section, or by the date specified by
359.8the commissioner in an extension, may appeal administratively to the commissioner prior
359.9to bringing an action in courtby submitting.
359.10 (b) Companies that must submit reports under section 270.82 must submit a written
359.11requestwith to the commissioner for a conference within ten days after the date of the
359.12commissioner's valuation certification or notice to the company, or byMay June 15,
359.13whichever is earlier.
359.14 (c) Companies that submit reports under section 273.371 must submit a written
359.15request to the commissioner for a conference within ten days after the date of the
359.16commissioner's valuation certification or notice to the company, or by July 1, whichever
359.17is earlier.
359.18 (d) The commissioner shall conduct the conference upon the commissioner's entire
359.19files and records and such further information as may be offered. The conference must
359.20be held no later than 20 days after the date of the commissioner's valuation certification
359.21or notice to the company, or by the date specified by the commissioner in an extension.
359.22Within 60 days after the conference the commissioner shall make a final determination of
359.23the matter and shall notify the company promptly of the determination. The conference
359.24is not a contested case hearing.
359.25(b) (e) In addition to the opportunity for a conference under paragraph (a), the
359.26commissioner shall also provide the railroad and utility companies the opportunity to
359.27discuss any questions or concerns relating to the values established by the commissioner
359.28through certification or notice in a less formal manner. This does not change or modify
359.29the deadline for requesting a conference under paragraph (a), the deadline in section
359.30271.06
for appealing an order of the commissioner, or the deadline in section
278.01 for
359.31appealing property taxes in court.
359.32EFFECTIVE DATE.This section is effective beginning with assessment year 2014.
359.33 Sec. 12. Minnesota Statutes 2012, section 273.39, is amended to read:
360.1273.39 RURAL AREA.
360.2 As used in sections273.39 to
273.41 , the term "rural area" shall be deemed to mean
360.3any area of the state not included within the boundaries of anyincorporated statutory
360.4city or home rule charter city, and such term shall be deemed to include both farm and
360.5nonfarm population thereof.
360.6EFFECTIVE DATE.This section is effective the day following final enactment.
360.7 Sec. 13. Minnesota Statutes 2012, section 279.06, subdivision 1, is amended to read:
360.8 Subdivision 1. List and notice. Within five days after the filing of such list, the
360.9court administrator shall return a copy thereof to the county auditor, with a notice prepared
360.10and signed by the court administrator, and attached thereto, which may be substantially in
360.11the following form:
360.17 The state of Minnesota, to all persons, companies, or corporations who have or claim
360.18any estate, right, title, or interest in, claim to, or lien upon, any of the several parcels of
360.19land described in the list hereto attached:
360.20 The list of taxes and penalties on real property for the county of ...............................
360.21remaining delinquent on the first Monday in January, ......., has been filed in the office of
360.22the court administrator of the district court of said county, of which that hereto attached is a
360.23copy. Therefore, you, and each of you, are hereby required to file in the office of said court
360.24administrator, on or before the 20th day after the publication of this notice and list, your
360.25answer, in writing, setting forth any objection or defense you may have to the taxes, or any
360.26part thereof, upon any parcel of land described in the list, in, to, or on which you have or
360.27claim any estate, right, title, interest, claim, or lien, and, in default thereof, judgment will
360.28be entered against such parcel of land for the taxes on such list appearing against it, and
360.29for all penalties, interest, and costs. Based upon said judgment, the land shall be sold to
360.30the state of Minnesota on the second Monday in May, .......The period of redemption for
360.31all lands sold to the state at a tax judgment sale shall be three years from the date of sale to
360.32the state of Minnesota if the land is within an incorporated area unless it is:
360.33(a) nonagricultural homesteaded land as defined in section
273.13, subdivision 22;
360.34(b) homesteaded agricultural land as defined in section
273.13, subdivision 23,
360.35paragraph (a);
361.1(c) seasonal residential recreational land as defined in section
273.13, subdivisions
361.222, paragraph (c)
, and 25, paragraph (d), clause (1), in which event the period of
361.3redemption is five years from the date of sale to the state of Minnesota;
361.4(d) abandoned property and pursuant to section
281.173 a court order has been
361.5entered shortening the redemption period to five weeks; or
361.6(e) vacant property as described under section
281.174, subdivision 2, and for which
361.7a court order is entered shortening the redemption period under section
281.174.
361.8The period of redemption for all other lands sold to the state at a tax judgment sale
361.9shall be five years from the date of sale.
361.10 Inquiries as to the proceedings set forth above can be made to the county auditor of
361.11..... county whose address is ......
361.16 The notice must contain a narrative description of the various periods to redeem
361.17specified in sections 281.17, 281.173, and 281.174, in the manner prescribed by the
361.18commissioner of revenue under subdivision 2.
361.19 The list referred to in the notice shall be substantially in the following form:
361.20 List of real property for the county of ......................., on which taxes remain
361.21delinquent on the first Monday in January, .......
361.23Township (40), Range (20),
362.20 As to platted property, the form of heading shall conform to circumstances and be
362.21substantially in the following form:
362.23Brown's Addition, or Subdivision
362.40 The names, descriptions, and figures employed in parentheses in the above forms are
362.41merely for purposes of illustration.
362.42 The name of the town, township, range or city, and addition or subdivision, as the
362.43case may be, shall be repeated at the head of each column of the printed lists as brought
362.44forward from the preceding column.
362.45 Errors in the list shall not be deemed to be a material defect to affect the validity
362.46of the judgment and sale.
363.1EFFECTIVE DATE.This section is effective for lists and notices required after
363.2December 31, 2013.
363.3 Sec. 14. Minnesota Statutes 2012, section 290B.04, subdivision 2, is amended to read:
363.4 Subd. 2. Approval; recording. The commissioner shall approve all initial
363.5applications that qualify under this chapter and shall notify qualifying homeowners on or
363.6before December 1. The commissioner may investigate the facts or require confirmation
363.7in regard to an application. The commissioner shall record or file a notice of qualification
363.8for deferral, including the names of the qualifying homeowners and a legal description
363.9of the property, in the office of the county recorder, or registrar of titles, whichever is
363.10applicable, in the county where the qualifying property is located. The notice must state
363.11that it serves as a notice of lien and that it includes deferrals under this section for future
363.12years. The commissioner shall prescribe the form of the notice. Execution of the notice
363.13by the original or facsimile signature of the commissioner or a delegate entitles them to
363.14be recorded, and no other attestation, certification, or acknowledgment is necessary. The
363.15homeowner shall pay the recording or filing fees for the notice, which, notwithstanding
363.16section357.18 , shall be paid by the homeowner at the time of satisfaction of the lien.
363.17EFFECTIVE DATE.This section is effective for notices that are both executed
363.18and recorded after June 30, 2013.
363.19 Sec. 15. Minnesota Statutes 2012, section 298.01, subdivision 3, is amended to read:
363.20 Subd. 3. Occupation tax; other ores. Every person engaged in the business of
363.21mining, refining, or producing ores, metals, or minerals in this state, except iron ore or
363.22taconite concentrates, shall pay an occupation tax to the state of Minnesota as provided
363.23in this subdivision. For purposes of this subdivision, mining includes the application of
363.24hydrometallurgical processes. Hydrometallurgical processes are processes that extract
363.25the ores, metals, or minerals, by use of aqueous solutions that leach, concentrate, and
363.26recover the ore, metal, or mineral. The tax is determined in the same manner as the tax
363.27imposed by section290.02 , except that sections
290.05, subdivision 1 , clause (a),
290.17,
363.28subdivision 4 , and
290.191, subdivision 2 , do not apply, and the occupation tax must
363.29be computed by applying to taxable income the rate of 2.45 percent. A person subject
363.30to occupation tax under this section shall apportion its net income on the basis of the
363.31percentage obtained by taking the sum of:
363.32 (1) 75 percent of the percentage which the sales made within this state in connection
363.33with the trade or business during the tax period are of the total sales wherever made in
363.34connection with the trade or business during the tax period;
364.1 (2) 12.5 percent of the percentage which the total tangible property used by the
364.2taxpayer in this state in connection with the trade or business during the tax period is of
364.3the total tangible property, wherever located, used by the taxpayer in connection with the
364.4trade or business during the tax period; and
364.5 (3) 12.5 percent of the percentage which the taxpayer's total payrolls paid or incurred
364.6in this state or paid in respect to labor performed in this state in connection with the trade
364.7or business during the tax period are of the taxpayer's total payrolls paid or incurred in
364.8connection with the trade or business during the tax period.
364.9 The tax is in addition to all other taxes.
364.10EFFECTIVE DATE.This section is effective the day following final enactment.
364.11 Sec. 16. Minnesota Statutes 2012, section 298.018, is amended to read:
364.12298.018 DISTRIBUTION OF PROCEEDS.
364.13 Subdivision 1. Within taconite assistance area. The proceeds of the tax paid
364.14under sections298.015 and
298.016 on ores, metals, or minerals and energy resources
364.15 mined or extracted within the taconite assistance area defined in section273.1341 , shall
364.16be allocated as follows:
364.17 (1) five percent to the city or town within which the minerals or energy resources
364.18are mined or extracted;
364.19 (2) ten percent to the taconite municipal aid account to be distributed as provided
364.20in section298.282 ;
364.21 (3) ten percent to the school district within which the minerals or energy resources
364.22are mined or extracted;
364.23 (4) 20 percent to a group of school districts comprised of those school districts
364.24wherein the mineral or energy resource was mined or extracted or in which there is a
364.25qualifying municipality as defined by section273.134, paragraph (b) , in direct proportion
364.26to school district indexes as follows: for each school district, its pupil units determined
364.27under section126C.05 for the prior school year shall be multiplied by the ratio of the
364.28average adjusted net tax capacity per pupil unit for school districts receiving aid under
364.29this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year
364.30ending prior to distribution to the adjusted net tax capacity per pupil unit of the district.
364.31Each district shall receive that portion of the distribution which its index bears to the sum
364.32of the indices for all school districts that receive the distributions;
364.33 (5) 20 percent to the county within which the minerals or energy resources are
364.34mined or extracted;
365.1 (6) 20 percent to St. Louis County acting as the counties' fiscal agent to be
365.2distributed as provided in sections273.134 to
273.136 ;
365.3 (7) five percent to the Iron Range Resources and Rehabilitation Board for the
365.4purposes of section298.22 ;
365.5 (8) five percent to the Douglas J. Johnson economic protection trust fund; and
365.6 (9) five percent to the taconite environmental protection fund.
365.7 The proceeds of the tax shall be distributed on July 15 each year.
365.8 Subd. 2. Outside taconite assistance area. The proceeds of the tax paid under
365.9sections298.015 and
298.016 on ores, metals, or minerals and energy resources mined
365.10or extracted outside of the taconite assistance area defined in section273.1341 , shall
365.11be deposited in the general fund.
365.12EFFECTIVE DATE.This section is effective the day following final enactment.
365.13 Sec. 17. Minnesota Statutes 2012, section 373.01, subdivision 1, is amended to read:
365.14 Subdivision 1. Public corporation; listed powers. (a) Each county is a body politic
365.15and corporate and may:
365.16 (1) Sue and be sued.
365.17 (2) Acquire and hold real and personal property for the use of the county, and lands
365.18sold for taxes as provided by law.
365.19 (3) Purchase and hold for the benefit of the county real estate sold by virtue of
365.20judicial proceedings, to which the county is a party.
365.21 (4) Sell, lease, and convey real or personal estate owned by the county, and give
365.22contracts or options to sell, lease, or convey it, and make orders respecting it as deemed
365.23conducive to the interests of the county's inhabitants.
365.24 (5) Make all contracts and do all other acts in relation to the property and concerns
365.25of the county necessary to the exercise of its corporate powers.
365.26 (b) No sale, lease, or conveyance of real estate owned by the county, except the lease
365.27of a residence acquired for the furtherance of an approved capital improvement project, nor
365.28any contract or option for it, shall be valid, without first advertising for bids or proposals in
365.29the official newspaper of the county for three consecutive weeks and once in a newspaper
365.30of general circulation in the area where the property is located. The notice shall state the
365.31time and place of considering the proposals, contain a legal description of any real estate,
365.32and a brief description of any personal property. Leases that do not exceed $15,000 for any
365.33one year may be negotiated and are not subject to the competitive bid procedures of this
365.34section. All proposals estimated to exceed $15,000 in any one year shall be considered at
366.1the time set for the bid opening, and the one most favorable to the county accepted, but the
366.2county board may, in the interest of the county, reject any or all proposals.
366.3 (c) Sales of personal property the value of which is estimated to be $15,000 or
366.4more shall be made only after advertising for bids or proposals in the county's official
366.5newspaper, on the county's Web site, or in a recognized industry trade journal. At the same
366.6time it posts on its Web site or publishes in a trade journal, the county must publish in the
366.7official newspaper, either as part of the minutes of a regular meeting of the county board
366.8or in a separate notice, a summary of all requests for bids or proposals that the county
366.9advertises on its Web site or in a trade journal. After publication in the official newspaper,
366.10on the Web site, or in a trade journal, bids or proposals may be solicited and accepted by
366.11the electronic selling process authorized in section471.345, subdivision 17 . Sales of
366.12personal property the value of which is estimated to be less than $15,000 may be made
366.13either on competitive bids or in the open market, in the discretion of the county board.
366.14"Web site" means a specific, addressable location provided on a server connected to the
366.15Internet and hosting World Wide Web pages and other files that are generally accessible
366.16on the Internet all or most of a day.
366.17 (d) Notwithstanding anything to the contrary herein, the county may, when acquiring
366.18real property for county highway right-of-way, exchange parcels of real property of
366.19substantially similar or equal value without advertising for bids. The estimated values for
366.20these parcels shall be determined by the county assessor.
366.21 (e) Notwithstanding anything in this section to the contrary, the county may, when
366.22acquiring real property for purposes other than county highway right-of-way, exchange
366.23parcels of real property of substantially similar or equal value without advertising for
366.24bids. The estimated values for these parcels must be determined by the county assessor
366.25or a private appraisal performed by a licensed Minnesota real estate appraiser. For the
366.26purpose of determining for the county the estimated values of parcels proposed to be
366.27exchanged, the county assessor need not be licensed under chapter 82B. Before giving
366.28final approval to any exchange of land, the county board shall hold a public hearing on
366.29the exchange. At least two weeks before the hearing, the county auditor shall post a
366.30notice in the auditor's office and the official newspaper of the county of the hearing that
366.31contains a description of the lands affected.
366.32 (f) If real estate or personal property remains unsold after advertising for and
366.33consideration of bids or proposals the county may employ a broker to sell the property.
366.34The broker may sell the property for not less than 90 percent of its appraised market value
366.35as determined by the county. The broker's fee shall be set by agreement with the county but
366.36may not exceed ten percent of the sale price and must be paid from the proceeds of the sale.
367.1 (g) A county or its agent may rent a county-owned residence acquired for the
367.2furtherance of an approved capital improvement project subject to the conditions set
367.3by the county board and not subject to the conditions for lease otherwise provided by
367.4paragraph (a), clause (4), and paragraphs (b), (c), (d), (f), and (h).
367.5 (h) In no case shall lands be disposed of without there being reserved to the county
367.6all iron ore and other valuable minerals in and upon the lands, with right to explore for,
367.7mine and remove the iron ore and other valuable minerals, nor shall the minerals and
367.8mineral rights be disposed of, either before or after disposition of the surface rights,
367.9otherwise than by mining lease, in similar general form to that provided by section93.20
367.10for mining leases affecting state lands. The lease shall be for a term not exceeding 50
367.11years, and be issued on a royalty basis, the royalty to be not less than 25 cents per ton of
367.122,240 pounds, and fix a minimum amount of royalty payable during each year, whether
367.13mineral is removed or not. Prospecting options for mining leases may be granted for
367.14periods not exceeding one year. The options shall require, among other things, periodical
367.15showings to the county board of the results of exploration work done.
367.16 (i) Notwithstanding anything in this subdivision to the contrary, the county may,
367.17when selling real property owned in fee simple that cannot be improved because of
367.18noncompliance with local ordinances regarding minimum area, shape, frontage, or access,
367.19proceed to sell the nonconforming parcel without advertising for bid. At the county's
367.20discretion, the real property may be restricted to sale to adjoining landowners or may be
367.21sold to any other interested party. The property shall be sold to the highest bidder, but in no
367.22case shall the property be sold for less than 90 percent of its fair market value as determined
367.23by the county assessor. All owners of land adjoining the land to be sold shall be given a
367.24written notice at least 30 days before the sale. This paragraph shall be liberally construed to
367.25encourage the sale of nonconforming real property and promote its return to the tax roles.
367.26EFFECTIVE DATE.This section is effective the day following final enactment.
367.27 Sec. 18. REPEALER.
367.28Minnesota Statutes 2012, sections 272.69; and 273.11, subdivisions 1a and 22, are
367.29repealed.
367.30EFFECTIVE DATE.This section is effective the day following final enactment.
367.33 Section 1. Minnesota Statutes 2012, section 16A.46, is amended to read:
368.116A.46 LOST OR DESTROYED WARRANT DUPLICATE; INDEMNITY.
368.2 Subdivision 1. Duplicate warrant. The commissioner may issue a duplicate of an
368.3unpaid warrant to an owner if the owner certifies that the original was lost or destroyed. The
368.4commissioner may require certification be documented by affidavit. The commissioner
368.5may refuse to issue a duplicate of an unpaid state warrant. If the commissioner acts in
368.6good faith, the commissioner is not liable, whether the application is granted or denied.
368.7 Subd. 2. Original warrant is void. When the duplicate is issued, the original is
368.8void. The commissioner may require an indemnity bond from the applicant to the state for
368.9double the amount of the warrant for anyone damaged by the issuance of the duplicate.
368.10The commissionermay refuse to issue a duplicate of an unpaid state warrant. If the
368.11commissioner acts in good faith the commissioner is not liable, whether the application is
368.12granted or denied is not liable to any holder who took the void original warrant for value,
368.13whether or not the commissioner required an indemnity bond from the applicant.
368.14 Subd. 3. Unpaid refund or rebate. For an unpaid refund or rebate issued under a
368.15tax law administered by the commissioner of revenue that has been lost or destroyed, an
368.16affidavit is not required for the commissioner to issue a duplicate if the duplicate is issued
368.17to the same name and Social Security number as the original warrant and that information
368.18is verified on a tax return filed by the recipient.
368.19EFFECTIVE DATE.This section is effective the day following final enactment.
368.20 Sec. 2. Minnesota Statutes 2012, section 270C.38, subdivision 1, is amended to read:
368.21 Subdivision 1. Sufficient notice. (a) If no method of notification of a written
368.22determination or action of the commissioner is otherwise specifically provided for by
368.23law, notice of the determination or action sent postage prepaid by United States mail to
368.24the taxpayer or other person affected by the determination or action at the taxpayer's
368.25or person's last known address, is sufficient. If the taxpayer or person being notified is
368.26deceased or is under a legal disability, or, in the case of a corporation being notified that
368.27has terminated its existence, notice to the last known address of the taxpayer, person, or
368.28corporation is sufficient, unless the department has been provided with a new address by a
368.29party authorized to receive notices from the commissioner.
368.30(b) If a taxpayer or other person agrees to accept notification by electronic means,
368.31notice of a determination or action of the commissioner sent by electronic mail to the
368.32taxpayer's or person's last known electronic mailing address as provided for in section
368.33325L.08 is sufficient.
368.34EFFECTIVE DATE.This section is effective the day following final enactment.
369.1 Sec. 3. Minnesota Statutes 2012, section 270C.42, subdivision 2, is amended to read:
369.2 Subd. 2. Penalty for failure to pay electronically. In addition to other applicable
369.3penalties imposed by law, after notification from the commissioner to the taxpayer that
369.4payments for a tax payable to the commissioner are required to be made by electronic
369.5means, and the payments are remitted by some other means, there is a penalty in the
369.6amount of five percent of each payment that should have been remitted electronically.
369.7After the commissioner's initial notification to the taxpayer that payments are required to
369.8be made by electronic means, the commissioner is not required to notify the taxpayer in
369.9subsequent periods if the initial notification specified the amount of tax liability at which a
369.10taxpayer is required to remit payments by electronic means. The penalty can be abated
369.11under the abatement procedures prescribed in section270C.34 if the failure to remit the
369.12payment electronically is due to reasonable cause. The penalty bears interest at the rate
369.13specified in section270C.40 from the due date of the payment of the tax provided in
369.14section 270C.40, subdivision 3, to the date of payment of the penalty.
369.15EFFECTIVE DATE.This section is effective the day following final enactment.
369.16 Sec. 4. Minnesota Statutes 2012, section 287.385, subdivision 7, is amended to read:
369.17 Subd. 7. Interest on penalties. A penalty imposed under this chapter bears interest
369.18from the datepayment was required to be paid, including any extensions, provided in
369.19section 270C.40, subdivision 3, to the date of payment of the penalty.
369.20EFFECTIVE DATE.This section is effective the day following final enactment.
369.21 Sec. 5. Minnesota Statutes 2012, section 289A.55, subdivision 9, is amended to read:
369.22 Subd. 9. Interest on penalties. (a) A penalty imposed under section289A.60,
369.23subdivision 1 , 2, 2a, 4, 5, 6, or 21 bears interest from the date the return or payment
369.24was required to be filed or paid, including any extensions provided in section 270C.40,
369.25subdivision 3, to the date of payment of the penalty.
369.26(b) A penalty not included in paragraph (a) bears interest only if it is not paid within
369.2760 days from the date of notice. In that case interest is imposed from the date of notice
369.28to the date of payment.
369.29EFFECTIVE DATE.This section is effective the day following final enactment.
369.30 Sec. 6. Minnesota Statutes 2012, section 289A.60, subdivision 4, is amended to read:
370.1 Subd. 4. Substantial understatement of liability; penalty. (a) The commissioner
370.2of revenue shall impose a penalty for substantial understatement of any tax payable to the
370.3commissioner, except a tax imposed under chapter 297A.
370.4(b) There must be added to the tax an amount equal to 20 percent of the amount of any
370.5underpayment attributable to the understatement. There is a substantial understatement of
370.6tax for the period if the amount of the understatement for the period exceeds the greater of:
370.7(1) ten percent of the tax required to be shown on the return for the period; or
370.8(2)(i) $10,000 in the case of a mining company or a corporation, other than an S
370.9corporation as defined in section290.9725 , when the tax is imposed by chapter 290 or
370.10section298.01 or
298.015 , or
370.11(ii) $5,000 in the case of any other taxpayer, and in the case of a mining company or
370.12a corporation any tax not imposed by chapter 290 or section298.01 or
298.015 .
370.13(c) For a corporation, other than an S corporation, there is also a substantial
370.14understatement of tax for any taxable year if the amount of the understatement for the
370.15taxable year exceeds the lesser of:
370.16(1) ten percent of the tax required to be shown on the return for the taxable year
370.17(or, if greater, $10,000); or
370.18(2) $10,000,000.
370.19(d) The term "understatement" means the excess of the amount of the tax required
370.20to be shown on the return for the period, over the amount of the tax imposed that is
370.21shown on the return. The excess must be determined without regard to items to which
370.22subdivision 27 applies. The amount of the understatement shall be reduced by that part of
370.23the understatement that is attributable to the tax treatment of any item by the taxpayer if
370.24(1) there is or was substantial authority for the treatment, or (2)(i) any item with respect to
370.25which the relevant facts affecting the item's tax treatment are adequately disclosed in the
370.26return or in a statement attached to the return and (ii) there is a reasonable basis for the tax
370.27treatment of the item. The exception for substantial authority under clause (1) does not
370.28apply to positions listed by the Secretary of the Treasury under section 6662(d)(3) of the
370.29Internal Revenue Code. A corporation does not have a reasonable basis for its tax treatment
370.30of an item attributable to a multiple-party financing transaction if the treatment does not
370.31clearly reflect the income of the corporation within the meaning of section 6662(d)(2)(B)
370.32of the Internal Revenue Code. The special rules in cases involving tax shelters provided in
370.33section 6662(d)(2)(C) of the Internal Revenue Code shall apply and shall apply to a tax
370.34shelter the principal purpose of which is the avoidance or evasion of state taxes.
370.35(e) The commissioner may abate all or any part of the addition to the tax provided
370.36by this section on a showing by the taxpayer that there was reasonable cause for the
371.1understatement, or part of it, and that the taxpayer acted in good faith. The additional tax
371.2and penalty shall bear interestat the rate as specified in section
270C.40 from the time
371.3the tax should have been paid until paid.
371.4EFFECTIVE DATE.This section is effective the day following final enactment.
371.5 Sec. 7. Minnesota Statutes 2012, section 296A.01, subdivision 7, is amended to read:
371.6 Subd. 7. Aviation gasoline. "Aviation gasoline" means any gasoline that is
371.7capable of use for the purpose of producing or generating power for propelling internal
371.8combustion engine aircraft, that meets the specifications in ASTM specificationD910-07a
371.9 D910-11, and that either:
371.10 (1) is invoiced and billed by a producer, manufacturer, refiner, or blender to a
371.11distributor or dealer, by a distributor to a dealer or consumer, or by a dealer to consumer,
371.12as "aviation gasoline"; or
371.13 (2) whether or not invoiced and billed as provided in clause (1), is received, sold,
371.14stored, or withdrawn from storage by any person, to be used for the purpose of producing
371.15or generating power for propelling internal combustion engine aircraft.
371.16EFFECTIVE DATE.This section is effective the day following final enactment.
371.17 Sec. 8. Minnesota Statutes 2012, section 296A.01, subdivision 8, is amended to read:
371.18 Subd. 8. Aviation turbine fuel and jet fuel. "Aviation turbine fuel" and "jet
371.19fuel" mean blends of hydrocarbons derived from crude petroleum, natural gasoline, and
371.20synthetic hydrocarbons, intended for use in aviation turbine engines, and that meet the
371.21specifications in ASTM specificationD1655-08a D1655-12.
371.22EFFECTIVE DATE.This section is effective the day following final enactment.
371.23 Sec. 9. Minnesota Statutes 2012, section 296A.01, is amended by adding a subdivision
371.24to read:
371.25 Subd. 8b. Biobutanol. "Biobutanol" means isobutyl alcohol produced by
371.26fermenting agriculturally generated organic material that is to be blended with gasoline
371.27and meets either:
371.28 (1) the initial ASTM Standard Specification for Butanol for Blending with Gasoline
371.29for use as an Automotive Spark-Ignition Engine Fuel once it has been released by ASTM
371.30for general distribution; or
371.31 (2) in the absence of an ASTM Standard Specification, the following list of
371.32requirements:
372.1 (i) visually free of sediment and suspended matter;
372.2 (ii) clear and bright at the ambient temperature of 21 degrees Celsius or the ambient
372.3temperature whichever is higher;
372.4 (iii) free of any adulterant or contaminant that can render it unacceptable for its
372.5commonly used applications;
372.6 (iv) contains not less than 96 volume percent isobutyl alcohol;
372.7 (v) contains not more than 0.4 volume percent methanol;
372.8 (vi) contains not more than 1.0 volume percent water as determined by ASTM
372.9standard test method E203 or E1064;
372.10 (vii) acidity (as acetic acid) of not more than 0.007 mass percent as determined
372.11by ASTM standard test method D1613;
372.12 (viii) solvent washed gum content of not more than 5.0 milligrams per 100 milliliters
372.13as determined by ASTM standard test method D381;
372.14 (ix) sulfur content of not more than 30 parts per million as determined by ASTM
372.15standard test method D2622 or D5453; and
372.16 (x) contains not more than 4 parts per million total inorganic sulfate.
372.17 Sec. 10. Minnesota Statutes 2012, section 296A.01, subdivision 14, is amended to read:
372.18 Subd. 14. Diesel fuel oil. "Diesel fuel oil" means a petroleum distillate or blend of
372.19petroleum distillate and residual fuels that is intended for use as a motor fuel in internal
372.20combustion diesel engines and that meets ASTM specificationD975-07b D975-11b.
372.21EFFECTIVE DATE.This section is effective the day following final enactment.
372.22 Sec. 11. Minnesota Statutes 2012, section 296A.01, subdivision 19, is amended to read:
372.23 Subd. 19. E85. "E85" means a petroleum product that is a blend of agriculturally
372.24derived denatured ethanol and gasoline or natural gasoline thattypically contains not more
372.25than 85 percent ethanol by volume, but at a minimum must contain60 greater than 50
372.26 percent ethanol by volume. For the purposes of this chapter, the energy content of E85
372.27will be considered to be 82,000 BTUs per gallon. E85 produced for use as a motor fuel in
372.28alternative fuel vehicles as defined in subdivision 5 must comply with ASTM specification
372.29D5798-07 D5798-11.
372.30EFFECTIVE DATE.This section is effective the day following final enactment.
372.31 Sec. 12. Minnesota Statutes 2012, section 296A.01, subdivision 20, is amended to read:
373.1 Subd. 20. Ethanol, denatured. "Ethanol, denatured" means ethanol that is to
373.2be blended with gasoline, has been agriculturally derived, and complies with ASTM
373.3specificationD4806-08 D4806-11a. This includes the requirement that ethanol may be
373.4denatured only as specified in Code of Federal Regulations, title 27, parts 20 and 21.
373.5EFFECTIVE DATE.This section is effective the day following final enactment.
373.6 Sec. 13. Minnesota Statutes 2012, section 296A.01, subdivision 23, is amended to read:
373.7 Subd. 23. Gasoline. (a) "Gasoline" means:
373.8 (1) all products commonly or commercially known or sold as gasoline regardless of
373.9their classification or uses, except casinghead gasoline, absorption gasoline, condensation
373.10gasoline, drip gasoline, or natural gasoline that under the requirements of section239.761,
373.11subdivision 3 , must not be blended with gasoline that has been sold, transferred, or
373.12otherwise removed from a refinery or terminal; and
373.13 (2) any liquid prepared, advertised, offered for sale or sold for use as, or commonly
373.14and commercially used as, a fuel in spark-ignition, internal combustion engines, and that
373.15when tested by the Weights and Measures Division meets the specifications in ASTM
373.16specificationD4814-08b D4814-11b.
373.17 (b) Gasoline that is not blended with ethanol must not be contaminated with water or
373.18other impurities and must comply with both ASTM specificationD4814-08b D4814-11b
373.19 and the volatility requirements in Code of Federal Regulations, title 40, part 80.
373.20 (c) After gasoline is sold, transferred, or otherwise removed from a refinery or
373.21terminal, a person responsible for the product:
373.22 (1) may blend the gasoline with agriculturally derived ethanol, as provided in
373.23subdivision 24;
373.24 (2) must not blend the gasoline with any oxygenate other than denatured,
373.25agriculturally derived ethanol;
373.26 (3) must not blend the gasoline with other petroleum products that are not gasoline
373.27or denatured, agriculturally derived ethanol;
373.28 (4) must not blend the gasoline with products commonly and commercially known
373.29as casinghead gasoline, absorption gasoline, condensation gasoline, drip gasoline, or
373.30natural gasoline; and
373.31 (5) may blend the gasoline with a detergent additive, an antiknock additive, or an
373.32additive designed to replace tetra-ethyl lead, that is registered by the EPA.
373.33EFFECTIVE DATE.This section is effective the day following final enactment.
374.1 Sec. 14. Minnesota Statutes 2012, section 296A.01, subdivision 24, is amended to read:
374.2 Subd. 24. Gasoline blended with nonethanol oxygenate. "Gasoline blended with
374.3nonethanol oxygenate" means gasoline blended with ETBE, MTBE, or other alcohol
374.4or ether, except denatured ethanol, that is approved as an oxygenate by the EPA, and
374.5that complies with ASTM specificationD4814-08b D4814-11b. Oxygenates, other than
374.6denatured ethanol, must not be blended into gasoline after the gasoline has been sold,
374.7transferred, or otherwise removed from a refinery or terminal.
374.8EFFECTIVE DATE.This section is effective the day following final enactment.
374.9 Sec. 15. Minnesota Statutes 2012, section 296A.01, subdivision 26, is amended to read:
374.10 Subd. 26. Heating fuel oil. "Heating fuel oil" means a petroleum distillate, blend
374.11of petroleum distillates and residuals, or petroleum residual heating fuel that meets the
374.12specifications in ASTM specificationD396-08b D396-12.
374.13EFFECTIVE DATE.This section is effective the day following final enactment.
374.14 Sec. 16. Minnesota Statutes 2012, section 296A.22, subdivision 1, is amended to read:
374.15 Subdivision 1. Penalty for failure to pay tax, general rule. Upon the failure of
374.16any person to pay any tax or fee when due, a penalty of one percent per day for the first
374.17ten days of delinquency shall accrue, and thereafter the tax, fees, and penalty shall bear
374.18interest at the rate specified in section270C.40 until paid.
374.19EFFECTIVE DATE.This section is effective the day following final enactment.
374.20 Sec. 17. Minnesota Statutes 2012, section 296A.22, subdivision 3, is amended to read:
374.21 Subd. 3. Operating without license. If any person operates as a distributor, special
374.22fuel dealer, bulk purchaser, or motor carrier without first securing the license required
374.23under this chapter, any tax or fee imposed by this chapter shall become immediately due
374.24and payable. A penalty of 25 percent is imposed upon the tax and fee due. The tax, and
374.25 fees, and penalty shall bear interest at the rate specified in section
270C.40 . The penalty
374.26imposed in this subdivision shall bear interest from the date provided in section 270C.40,
374.27subdivision 3, to the date of payment of the penalty.
374.28EFFECTIVE DATE.This section is effective the day following final enactment.
374.29 Sec. 18. Minnesota Statutes 2012, section 297B.11, is amended to read:
375.1297B.11 REGISTRAR AS AGENT OF COMMISSIONER OF REVENUE;
375.2POWERS.
375.3The state commissioner of revenue is charged with the administration of the
375.4sales tax on motor vehicles. The commissioner may prescribe all rules not inconsistent
375.5with the provisions of this chapter, necessary and advisable for the proper and efficient
375.6administration of the law. The collection of this sales tax on motor vehicles shall be
375.7carried out by the motor vehicle registrar who shall act as the agent of the commissioner
375.8and who shall be subject to all rules not inconsistent with the provisions of this chapter,
375.9that may be prescribed by the commissioner.
375.10The provisions of chapters 270C, 289A, and 297A relating to the commissioner's
375.11authority to audit, assess, and collect the tax, and to issue refunds and to hear appeals,
375.12are applicable to the sales tax on motor vehicles. The commissioner may impose civil
375.13penalties as provided in chapters 289A and 297A, and the additional tax and penalties
375.14are subject to interest at the rate provided in section270C.40 from the date provided in
375.15section 270C.40, subdivision 3, until paid.
375.16EFFECTIVE DATE.This section is effective the day following final enactment.
375.17 Sec. 19. Minnesota Statutes 2012, section 297E.14, subdivision 7, is amended to read:
375.18 Subd. 7. Interest on penalties. (a) A penalty imposed under section297E.12,
375.19subdivision 1 , 2, 3, 4, or 5, bears interest from the date the return or payment was required
375.20to be filed or paid, including any extensions provided in section 270C.40, subdivision
375.213, to the date of payment of the penalty.
375.22(b) A penalty not included in paragraph (a) bears interest only if it is not paid within
375.23ten days from the date of notice. In that case interest is imposed from the date of notice
375.24to the date of payment.
375.25EFFECTIVE DATE.This section is effective the day following final enactment.
375.26 Sec. 20. Minnesota Statutes 2012, section 297F.09, subdivision 9, is amended to read:
375.27 Subd. 9. Interest. The amount of tax not timely paid, together with any penalty
375.28imposed in this section, bears interest at the rate specified in section
270C.40 from the
375.29time such tax should have been paid until paid. The penalty imposed in this section bears
375.30interest at the rate specified in section 270C.40 from the date provided in section 270C.40,
375.31subdivision 3, to the date of payment of the penalty. Any interest and penalty is added to
375.32the tax and collected as a part of it.
375.33EFFECTIVE DATE.This section is effective the day following final enactment.
376.1 Sec. 21. Minnesota Statutes 2012, section 297F.18, subdivision 7, is amended to read:
376.2 Subd. 7. Interest on penalties. (a) A penalty imposed under section297F.19 ,
376.3subdivisions 2 to 7, bears interest from the datethe return or payment was required to be
376.4filed or paid, including any extensions provided in section 270C.40, subdivision 3, to the
376.5date of payment of the penalty.
376.6(b) A penalty not included in paragraph (a) bears interest only if it is not paid within
376.7ten days from the date of the notice. In that case interest is imposed from the date of notice
376.8to the date of payment.
376.9EFFECTIVE DATE.This section is effective the day following final enactment.
376.10 Sec. 22. Minnesota Statutes 2012, section 297G.09, subdivision 8, is amended to read:
376.11 Subd. 8. Interest. The amount of tax not timely paid, together with any penalty
376.12imposed by this chapter, bears interest at the rate specified in section
270C.40 from the
376.13time the tax should have been paid until paid. Any penalty imposed by this chapter bears
376.14interest from the date provided in section 270C.40, subdivision 3, to the date of payment
376.15of the penalty. Any interest and penalty is added to the tax and collected as a part of it.
376.16EFFECTIVE DATE.This section is effective the day following final enactment.
376.17 Sec. 23. Minnesota Statutes 2012, section 297G.17, subdivision 7, is amended to read:
376.18 Subd. 7. Interest on penalties. (a) A penalty imposed under section297G.18 ,
376.19subdivisions 2 to 7, bears interest from the datethe return or payment was required to be
376.20filed or paid, including any extensions provided in section 270C.40, subdivision 3, to the
376.21date of payment of the penalty.
376.22(b) A penalty not included in paragraph (a) bears interest only if it is not paid within
376.23ten days from the date of the notice. In that case interest is imposed from the date of notice
376.24to the date of payment.
376.25EFFECTIVE DATE.This section is effective the day following final enactment.
376.26 Sec. 24. Minnesota Statutes 2012, section 297I.80, subdivision 1, is amended to read:
376.27 Subdivision 1. Payable to commissioner. (a) When interest is required under this
376.28section, interest is computed at the rate specified in section270C.40 .
376.29(b) If a tax or surcharge is not paid within the time named by law for payment, the
376.30unpaid tax or surcharge bears interest from the date the tax or surcharge should have been
376.31paid until the date the tax or surcharge is paid.
377.1(c) Whenever a taxpayer is liable for additional tax or surcharge because of a
377.2redetermination by the commissioner or other reason, the additional tax or surcharge
377.3bears interest from the time the tax or surcharge should have been paid until the date the
377.4tax or surcharge is paid.
377.5(d) A penalty bears interest from the datethe return or payment was required to be
377.6filed or paid provided in section 270C.40, subdivision 3, to the date of payment of the
377.7penalty.
377.8EFFECTIVE DATE.This section is effective the day following final enactment.
377.9 Sec. 25. Minnesota Statutes 2012, section 469.319, subdivision 4, is amended to read:
377.10 Subd. 4. Repayment procedures. (a) For the repayment of taxes imposed under
377.11chapter 290 or 297A or local taxes collected pursuant to section297A.99 , a business must
377.12file an amended return with the commissioner of revenue and pay any taxes required
377.13to be repaid within 30 days after becoming subject to repayment under this section.
377.14The amount required to be repaid is determined by calculating the tax for the period or
377.15periods for which repayment is required without regard to the exemptions and credits
377.16allowed under section469.315 .
377.17 (b) For the repayment of taxes imposed under chapter 297B, a business must pay any
377.18taxes required to be repaid to the motor vehicle registrar, as agent for the commissioner of
377.19revenue, within 30 days after becoming subject to repayment under this section.
377.20 (c) For the repayment of property taxes, the county auditor shall prepare a tax
377.21statement for the business, applying the applicable tax extension rates for each payable
377.22year and provide a copy to the business and to the taxpayer of record. The business must
377.23pay the taxes to the county treasurer within 30 days after receipt of the tax statement. The
377.24business or the taxpayer of record may appeal the valuation and determination of the
377.25property tax to the Tax Court within 30 days after receipt of the tax statement.
377.26 (d) The provisions of chapters 270C and 289A relating to the commissioner's
377.27authority to audit, assess, and collect the tax and to hear appeals are applicable to the
377.28repayment required under paragraphs (a) and (b). The commissioner may impose civil
377.29penalties as provided in chapter 289A, and the additional tax and penalties are subject
377.30to interest at the rate provided in section270C.40 ,. The additional tax shall bear interest
377.31 from 30 days after becoming subject to repayment under this section until the date the
377.32tax is paid. Any penalty imposed pursuant to this section shall bear interest from the date
377.33provided in section 270C.40, subdivision 3, to the date of payment of the penalty.
377.34 (e) If a property tax is not repaid under paragraph (c), the county treasurer shall
377.35add the amount required to be repaid to the property taxes assessed against the property
378.1for payment in the year following the year in which the auditor provided the statement
378.2under paragraph (c).
378.3 (f) For determining the tax required to be repaid, a reduction of a state or local sales or
378.4use tax is deemed to have been received on the date that the good or service was purchased
378.5or first put to a taxable use. In the case of an income tax or franchise tax, including the
378.6credit payable under section469.318 , a reduction of tax is deemed to have been received
378.7for the two most recent tax years that have ended prior to the date that the business became
378.8subject to repayment under this section. In the case of a property tax, a reduction of tax is
378.9deemed to have been received for the taxes payable in the year that the business became
378.10subject to repayment under this section and for the taxes payable in the prior year.
378.11 (g) The commissioner may assess the repayment of taxes under paragraph (d) any
378.12time within two years after the business becomes subject to repayment under subdivision
378.131, or within any period of limitations for the assessment of tax under section289A.38 ,
378.14whichever period is later. The county auditor may send the statement under paragraph
378.15(c) any time within three years after the business becomes subject to repayment under
378.16subdivision 1.
378.17 (h) A business is not entitled to any income tax or franchise tax benefits, including
378.18refundable credits, for any part of the year in which the business becomes subject to
378.19repayment under this section nor for any year thereafter. Property is not exempt from tax
378.20under section272.02, subdivision 64 , for any taxes payable in the year following the year
378.21in which the property became subject to repayment under this section nor for any year
378.22thereafter. A business is not eligible for any sales tax benefits beginning with goods
378.23or services purchased or first put to a taxable use on the day that the business becomes
378.24subject to repayment under this section.
378.25EFFECTIVE DATE.This section is effective the day following final enactment.
378.26 Sec. 26. Minnesota Statutes 2012, section 469.340, subdivision 4, is amended to read:
378.27 Subd. 4. Repayment procedures. (a) For the repayment of taxes imposed under
378.28chapter 290 or 297A or local taxes collected pursuant to section297A.99 , a business must
378.29file an amended return with the commissioner of revenue and pay any taxes required to be
378.30repaid within 30 days after ceasing to do business in the zone. The amount required to be
378.31repaid is determined by calculating the tax for the period or periods for which repayment
378.32is required without regard to the exemptions and credits allowed under section469.336 .
378.33(b) For the repayment of property taxes, the county auditor shall prepare a tax
378.34statement for the business, applying the applicable tax extension rates for each payable
378.35year and provide a copy to the business. The business must pay the taxes to the county
379.1treasurer within 30 days after receipt of the tax statement. The taxpayer may appeal the
379.2valuation and determination of the property tax to the Tax Court within 30 days after
379.3receipt of the tax statement.
379.4(c) The provisions of chapters 270C and 289A relating to the commissioner's
379.5authority to audit, assess, and collect the tax and to hear appeals are applicable to the
379.6repayment required under paragraph (a). The commissioner may impose civil penalties as
379.7provided in chapter 289A, and the additional tax and penalties are subject to interest at the
379.8rate provided in section270C.40 ,. The additional tax shall bear interest from 30 days after
379.9ceasing to do business in the biotechnology and health sciences industry zone until the
379.10date the tax is paid. Any penalty imposed pursuant to this section shall bear interest from
379.11the date provided in section 270C.40, subdivision 3, to the date of payment of the penalty.
379.12(d) If a property tax is not repaid under paragraph (b), the county treasurer shall add
379.13the amount required to be repaid to the property taxes assessed against the property for
379.14payment in the year following the year in which the treasurer discovers that the business
379.15ceased to operate in the biotechnology and health sciences industry zone.
379.16(e) For determining the tax required to be repaid, a tax reduction is deemed to have
379.17been received on the date that the tax would have been due if the taxpayer had not been
379.18entitled to the exemption, or on the date a refund was issued for a refundable credit.
379.19(f) The commissioner may assess the repayment of taxes under paragraph (c) any
379.20time within two years after the business ceases to operate in the biotechnology and health
379.21sciences industry zone, or within any period of limitations for the assessment of tax under
379.22section289A.38 , whichever period is later.
379.23EFFECTIVE DATE.This section is effective the day following final enactment."
379.24Delete the title and insert:
379.26relating to financing and operation of state and local government; making
379.27changes to individual income, corporate franchise, property, sales and use,
379.28estate, mineral, tobacco, alcohol, special, local, and other taxes and tax-related
379.29provisions modifying the property tax refund; changing property tax aids and
379.30credits; modifying the Sustainable Forest Incentive Act; modifying education
379.31aids and levies; providing additional pension funding; modifying definitions and
379.32distributions for property taxes; providing for property tax exemptions; modifying
379.33the payment in lieu of tax provisions; modifying education aids and levies;
379.34modifying tobacco tax provisions; making changes to additions and subtractions
379.35from federal taxable income; providing for federal conformity; changing income
379.36tax rates for individuals, estates, and trusts; providing income tax credits;
379.37modifying estate tax provisions; providing for a state gift tax; expanding the sales
379.38tax base; modifying the duty to collect and remit sales taxes for certain sellers;
379.39imposing the sales tax on digital products and selected services; modifying the
379.40definition of sale and purchase; modifying provisions for the rental motor vehicle
379.41tax rate; providing for multiple points of use certificates; modifying sales tax
379.42exemptions; authorizing local sales taxes; authorizing economic development
380.1powers; modifying tax increment financing rules; providing authority,
380.2organization, powers, duties, and requiring a prevailing wage for development
380.3of a Destination Medical Center; authorizing state infrastructure aid; modifying
380.4the distribution of taconite production taxes; authorizing taconite production tax
380.5bonds for grants to school districts; modifying and providing provisions for
380.6public finance; providing funding for legislative office facilities; modifying the
380.7definition of market value for tax, debt, and other purposes; making conforming,
380.8policy, and technical changes to tax provisions; requiring studies and reports;
380.9appropriating money;amending Minnesota Statutes 2012, sections 13.792;
380.1016A.46; 16A.727; 38.18; 40A.15, subdivision 2; 69.011, subdivision 1; 69.021,
380.11subdivisions 7, 8; 88.51, subdivision 3; 103B.102, subdivision 3; 103B.245,
380.12subdivision 3; 103B.251, subdivision 8; 103B.335; 103B.3369, subdivision 5;
380.13103B.635, subdivision 2; 103B.691, subdivision 2; 103C.501, subdivision 4;
380.14103D.905, subdivisions 2, 3, 8; 103F.405, subdivision 1; 116J.8737, subdivisions
380.151, 2, 8; 117.025, subdivision 7; 118A.04, subdivision 3; 118A.05, subdivision
380.165; 123A.455, subdivision 1; 126C.10, subdivision 1, by adding a subdivision;
380.17126C.13, subdivision 4; 126C.17; 126C.48, subdivision 8; 127A.48, subdivision
380.181; 138.053; 144F.01, subdivision 4; 162.07, subdivisions 3, 4; 163.04, subdivision
380.193; 163.06, subdivision 6; 165.10, subdivision 1; 168.012, subdivision 9, by
380.20adding a subdivision; 216C.436, subdivision 7; 237.52, subdivision 3, by adding
380.21a subdivision; 270.077; 270.41, subdivisions 3, 5, by adding a subdivision;
380.22270.45; 270B.01, subdivision 8; 270B.03, subdivision 1; 270B.12, subdivision
380.234; 270C.03, subdivision 1; 270C.34, subdivision 1; 270C.38, subdivision 1;
380.24270C.42, subdivision 2; 270C.56, subdivision 1; 271.06, subdivision 2a, as added;
380.25272.01, subdivision 2; 272.02, subdivisions 39, 97, by adding subdivisions;
380.26272.03, subdivision 9, by adding subdivisions; 273.032; 273.061, subdivision
380.272; 273.0645; 273.11, subdivision 1; 273.114, subdivision 6; 273.117; 273.124,
380.28subdivisions 3a, 13; 273.13, subdivisions 21b, 23, 25; 273.1398, subdivisions 3,
380.294; 273.19, subdivision 1; 273.372, subdivision 4; 273.39; 275.011, subdivision 1;
380.30275.077, subdivision 2; 275.71, subdivision 4; 276.04, subdivision 2; 276A.01,
380.31subdivisions 10, 12, 13, 15; 276A.06, subdivision 10; 279.01, subdivision 1, by
380.32adding a subdivision; 279.02; 279.06, subdivision 1; 279.37, subdivisions 1a, 2;
380.33281.14; 281.17; 287.05, by adding a subdivision; 287.08; 287.20, by adding a
380.34subdivision; 287.23, subdivision 1; 287.385, subdivision 7; 289A.08, subdivision
380.353; 289A.10, subdivision 1, by adding a subdivision; 289A.12, subdivision 14, by
380.36adding a subdivision; 289A.18, by adding a subdivision; 289A.20, subdivisions
380.373, 4, by adding a subdivision; 289A.26, subdivisions 3, 4, 7, 9; 289A.55,
380.38subdivision 9; 289A.60, subdivision 4; 290.01, subdivisions 19, as amended,
380.3919b, 19c, 19d; 290.06, subdivisions 2c, 2d, by adding a subdivision; 290.0677,
380.40subdivision 2; 290.068, subdivisions 3, 6a; 290.0681, subdivisions 1, 3, 4, 5, 10;
380.41290.091, subdivisions 1, 2, 6; 290.0921, subdivision 3; 290.0922, subdivision 1;
380.42290.095, subdivision 2; 290.10, subdivision 1; 290.17, subdivision 4; 290.191,
380.43subdivision 5; 290.21, subdivision 4; 290.9705, subdivision 1; 290A.03,
380.44subdivision 3; 290A.04, subdivisions 2, 2a, 4; 290B.04, subdivision 2; 290C.02,
380.45subdivision 6; 290C.03; 290C.055; 290C.07; 291.005, subdivision 1; 291.03,
380.46subdivisions 1, 8, 9, 10, 11, by adding a subdivision; 296A.01, subdivisions 7, 8,
380.4714, 19, 20, 23, 24, 26, by adding a subdivision; 296A.09, subdivision 2; 296A.17,
380.48subdivision 3; 296A.22, subdivisions 1, 3; 297A.61, subdivisions 3, 4, 10, 25,
380.4938, 45, by adding subdivisions; 297A.64, subdivision 1; 297A.66, subdivision
380.503, by adding a subdivision; 297A.665; 297A.668, by adding a subdivision;
380.51297A.67, subdivisions 7, 13, by adding a subdivision; 297A.68, subdivisions
380.522, 5, 42, by adding a subdivision; 297A.70, subdivisions 2, 4, 5, 7, 13, 14, by
380.53adding subdivisions; 297A.71, by adding subdivisions; 297A.75, subdivisions
380.541, 2, 3; 297A.82, subdivision 4, by adding a subdivision; 297A.99, subdivision
380.551; 297B.11; 297E.021, subdivision 3; 297E.14, subdivision 7; 297F.01,
380.56subdivisions 3, 19, 23, by adding subdivisions; 297F.05, subdivisions 1, 3, 4, by
380.57adding subdivisions; 297F.09, subdivision 9; 297F.18, subdivision 7; 297F.24,
380.58subdivision 1; 297F.25, subdivision 1; 297G.04, subdivision 2; 297G.09,
381.1subdivision 8; 297G.17, subdivision 7; 297I.05, subdivisions 7, 11, 12; 297I.30,
381.2subdivisions 1, 2; 297I.80, subdivision 1; 298.01, subdivisions 3, 3b; 298.018;
381.3298.17; 298.227, as amended; 298.24, subdivision 1; 298.28, subdivisions 4, 6,
381.49c, 10; 325D.32, subdivision 2; 325F.781, subdivision 1; 349.166, subdivision
381.51; 353G.08, subdivision 2; 360.531; 360.66; 365.025, subdivision 4; 366.095,
381.6subdivision 1; 366.27; 368.01, subdivision 23; 368.47; 370.01; 373.01,
381.7subdivisions 1, 3; 373.40, subdivisions 1, 2, 4; 375.167, subdivision 1; 375.18,
381.8subdivision 3; 375.555; 383A.80, subdivision 4; 383B.152; 383B.245; 383B.73,
381.9subdivision 1; 383B.80, subdivision 4; 383D.41, by adding a subdivision;
381.10383E.20; 383E.23; 385.31; 394.36, subdivision 1; 398A.04, subdivision 8;
381.11401.05, subdivision 3; 403.02, subdivision 21, by adding subdivisions; 403.06,
381.12subdivision 1a; 403.11, subdivision 1, by adding subdivisions; 410.32; 412.221,
381.13subdivision 2; 412.301; 428A.02, subdivision 1; 428A.101; 428A.21; 430.102,
381.14subdivision 2; 447.10; 450.19; 450.25; 458A.10; 458A.31, subdivision 1; 465.04;
381.15469.033, subdivision 6; 469.034, subdivision 2; 469.053, subdivisions 4, 4a, 6;
381.16469.071, subdivision 5; 469.107, subdivision 1; 469.169, by adding a subdivision;
381.17469.176, subdivisions 4c, 4g, 6; 469.177, subdivisions 1a, 9, by adding
381.18subdivisions; 469.180, subdivision 2; 469.187; 469.206; 469.319, subdivision
381.194; 469.340, subdivision 4; 471.24; 471.571, subdivisions 1, 2; 471.73; 473.325,
381.20subdivision 2; 473.39, by adding a subdivision; 473.606, subdivision 3; 473.629;
381.21473.661, subdivision 3; 473.667, subdivision 9; 473.671; 473.711, subdivision
381.222a; 473F.02, subdivisions 12, 14, 15, 23; 473F.08, subdivisions 3a, 10, by adding
381.23a subdivision; 474A.04, subdivision 1a; 474A.062; 474A.091, subdivision 3a;
381.24475.521, subdivisions 1, 2, 4; 475.53, subdivisions 1, 3, 4; 475.58, subdivisions
381.252, 3b; 475.73, subdivision 1; 477A.011, subdivisions 20, 30, 34, 42, by adding
381.26subdivisions; 477A.0124, subdivision 2; 477A.013, subdivisions 1, 8, 9, by
381.27adding a subdivision; 477A.015; 477A.03, subdivisions 2a, 2b, by adding a
381.28subdivision; 477A.11, subdivisions 3, 4, by adding subdivisions; 477A.12,
381.29subdivisions 1, 2, 3; 477A.14, subdivision 1, by adding a subdivision; 641.23;
381.30641.24; 645.44, by adding a subdivision; Laws 1971, chapter 773, section 1,
381.31subdivision 2, as amended; Laws 1988, chapter 645, section 3, as amended;
381.32Laws 1993, chapter 375, article 9, section 46, subdivisions 2, as amended, 5, as
381.33amended; Laws 1998, chapter 389, article 8, section 43, subdivisions 1, 3, as
381.34amended, 5, as amended; Laws 1999, chapter 243, article 6, section 11; Laws
381.352002, chapter 377, article 3, section 25, as amended; Laws 2005, First Special
381.36Session chapter 3, article 5, section 37, subdivisions 2, 4; Laws 2006, chapter
381.37259, article 11, section 3, as amended; Laws 2008, chapter 366, article 5, sections
381.3826; 33; 34, as amended; article 7, section 19, subdivision 3, as amended; Laws
381.392009, chapter 88, article 2, section 46, subdivisions 1, 3; Laws 2010, chapter 216,
381.40sections 11; 55; Laws 2010, chapter 389, article 1, section 12; article 5, section 6,
381.41subdivision 6; proposing coding for new law in Minnesota Statutes, chapters 116J;
381.42116V; 124D; 136A; 270C; 287; 290A; 292; 403; 423A; 469; 477A; repealing
381.43Minnesota Statutes 2012, sections 16A.725; 97A.061; 256.9658; 272.69; 273.11,
381.44subdivisions 1a, 22; 276A.01, subdivision 11; 289A.60, subdivision 31; 290.01,
381.45subdivision 6b; 290.06, subdivision 22a; 290.0921, subdivision 7; 290.171;
381.46290.173; 290.174; 297A.61, subdivision 27; 297A.68, subdivision 35; 473F.02,
381.47subdivision 13; 477A.011, subdivisions 2a, 19, 21, 29, 31, 32, 33, 36, 39, 40, 41;
381.48477A.013, subdivisions 11, 12; 477A.0133; 477A.0134; Laws 1973, chapter 567,
381.49section 7, as amended; Laws 2009, chapter 88, article 4, section 23, as amended."
1.3 relating to financing of state and local government; making changes to individual
1.4income, corporate franchise, property, sales and use, estate, mineral, liquor,
1.5tobacco, aggregate materials, local, and other taxes and tax-related provisions;
1.6restoring the school district current year aid payment shift percentage to 90;
1.7conforming to federal section 179 expensing allowances; imposing an income
1.8surcharge; allowing an up-front exemption for capital equipment; modifying
1.9the definition of income for the property tax refund; decreasing the threshold
1.10percentage for the homestead credit refund for homeowners and the property
1.11tax refund for renters; increasing the maximum refunds for renters; changing
1.12property tax aids and credits; imposing an insurance surcharge; modifying
1.13pension aids; providing pension funding; changing provisions of the Sustainable
1.14Forest Incentive Act; modifying definitions for property taxes; providing
1.15exemptions; creating joint entertainment facilities coordination; imposing a
1.16sports memorabilia gross receipts tax; changing tax rates on tobacco and liquor;
1.17providing reimbursement for certain property tax abatement; modifying the small
1.18business investment tax credit; expanding the definition of domestic corporation
1.19to include foreign corporations incorporated in or doing business in tax havens;
1.20making changes to additions and subtractions from federal taxable income;
1.21changing rates for individuals, estates, and trusts; providing for charitable
1.22contributions and veterans jobs tax credits; modifying estate tax exclusions for
1.23qualifying small business and farm property; imposing a gift tax; expanding
1.24the sales tax to include suite and box seat rentals; modifying the definition
1.25of sales and purchase; changing the tax rate and modifying provisions for the
1.26rental motor vehicle tax; modifying nexus provisions; providing for multiple
1.27points of use certificates; modifying exemptions; authorizing local sales taxes;
1.28authorizing economic development powers; providing authority, organization,
1.29powers, and duties for development of a Destination Medical Center; authorizing
1.30state infrastructure aid; imposing a tax on extraction and processing of fracturing
1.31sand; providing a taconite production tax grant for water supply improvements;
1.32authorizing taconite production tax bonds for grants to school districts; modifying
1.33and providing provisions for public finance; modifying the definition of market
1.34value for tax, debt, and other purposes; requiring labor peace agreements on
1.35certain qualifying projects; making conforming, policy, and technical changes to
1.36tax provisions; requiring studies and reports; appropriating money;amending
1.37Minnesota Statutes 2012, sections 16A.152, subdivision 2; 16A.46; 38.18;
1.3840A.15, subdivision 2; 69.011, subdivision 1; 69.021, subdivisions 7, 8, by
1.39adding a subdivision; 88.51, subdivision 3; 103B.102, subdivision 3; 103B.245,
1.40subdivision 3; 103B.251, subdivision 8; 103B.335; 103B.3369, subdivision 5;
1.41103B.635, subdivision 2; 103B.691, subdivision 2; 103C.501, subdivision 4;
1.42103D.905, subdivisions 2, 3, 8; 103F.405, subdivision 1; 116J.8737, subdivisions
1.431, 2, 8; 117.025, subdivision 7; 118A.04, subdivision 3; 118A.05, subdivision
2.15; 123A.455, subdivision 1; 123B.75, subdivision 5; 126C.48, subdivision 8;
2.2127A.45, subdivision 2; 127A.48, subdivision 1; 138.053; 144F.01, subdivision
2.34; 162.07, subdivisions 3, 4; 163.04, subdivision 3; 163.051; 163.06, subdivision
2.46; 165.10, subdivision 1; 168.012, subdivision 9, by adding a subdivision;
2.5216C.436, subdivision 7; 237.52, subdivision 3, by adding a subdivision;
2.6270.077; 270.41, subdivision 5; 270B.01, subdivision 8; 270B.12, subdivision
2.74; 270C.34, subdivision 1; 270C.38, subdivision 1; 270C.42, subdivision 2;
2.8270C.56, subdivision 1; 271.06, by adding a subdivision; 272.01, subdivision 2;
2.9272.02, subdivisions 39, 97, by adding subdivisions; 272.03, subdivision 9, by
2.10adding subdivisions; 273.032; 273.11, subdivision 1, by adding a subdivision;
2.11273.114, subdivision 6; 273.124, subdivisions 3a, 13; 273.13, subdivisions
2.1221b, 23, 25; 273.1398, subdivisions 3, 4; 273.19, subdivision 1; 273.372,
2.13subdivision 4; 273.39; 275.011, subdivision 1; 275.077, subdivision 2; 275.71,
2.14subdivision 4; 276.04, subdivision 2; 276A.01, subdivisions 10, 12, 13, 15;
2.15276A.06, subdivision 10; 279.01, subdivision 1, by adding a subdivision; 279.02;
2.16279.06, subdivision 1; 287.05, by adding a subdivision; 287.08; 287.20, by
2.17adding a subdivision; 287.23, subdivision 1; 287.385, subdivision 7; 289A.02,
2.18subdivision 7; 289A.08, subdivisions 1, 3, 7; 289A.10, subdivision 1, by adding
2.19a subdivision; 289A.12, subdivision 14, by adding a subdivision; 289A.18, by
2.20adding a subdivision; 289A.20, subdivisions 3, 4, by adding a subdivision;
2.21289A.26, subdivisions 3, 4, 7, 9; 289A.55, subdivision 9; 289A.60, subdivision
2.224; 290.01, subdivisions 5, 19, as amended, 19a, 19b, 19c, 19d, 31, as amended,
2.23by adding subdivisions; 290.06, subdivisions 2c, 2d, by adding subdivisions;
2.24290.067, subdivisions 1, 2a; 290.0671, subdivision 1; 290.0675, subdivision 1;
2.25290.0677, subdivision 2; 290.068, subdivisions 3, 6a; 290.0681, subdivisions 1,
2.263, 4, 5; 290.091, subdivision 2; 290.0921, subdivision 3; 290.0922, subdivision 1;
2.27290.17, subdivision 4; 290.21, subdivision 4; 290.9705, subdivision 1; 290A.03,
2.28subdivisions 3, 15, as amended; 290A.04, subdivisions 2, 2a, 4; 290B.04,
2.29subdivision 2; 290C.02, subdivision 6; 290C.05; 290C.07; 291.005, subdivision
2.301; 291.03, subdivisions 1, 8, 9, 10, 11, by adding a subdivision; 296A.01,
2.31subdivision 19, by adding a subdivision; 296A.22, subdivisions 1, 3; 297A.61,
2.32subdivisions 3, 4, by adding a subdivision; 297A.64, subdivisions 1, 2; 297A.66,
2.33by adding a subdivision; 297A.665; 297A.668, by adding a subdivision;
2.34297A.67, subdivision 7; 297A.68, subdivision 5; 297A.70, subdivisions 4, 8, by
2.35adding subdivisions; 297A.71, by adding subdivisions; 297A.75, subdivisions 1,
2.362, 3; 297A.815, subdivision 3; 297A.993, subdivisions 1, 2; 297B.11; 297E.021,
2.37subdivision 2; 297E.14, subdivision 7; 297F.01, subdivisions 3, 19, 23, by
2.38adding a subdivision; 297F.05, subdivisions 1, 3, 4, by adding a subdivision;
2.39297F.09, subdivision 9; 297F.18, subdivision 7; 297F.24, subdivision 1; 297F.25,
2.40subdivision 1; 297G.03, subdivision 1, by adding a subdivision; 297G.04;
2.41297G.09, subdivision 8; 297G.17, subdivision 7; 297I.05, subdivisions 7, 11, 12;
2.42297I.30, subdivisions 1, 2; 297I.80, subdivision 1; 298.01, subdivisions 3, 3b,
2.434; 298.018; 298.227, as amended; 298.24, subdivision 1; 298.28, subdivisions
2.444, 6, 10; 298.75, subdivision 2; 325D.32, subdivision 2; 353G.08, subdivision
2.452; 365.025, subdivision 4; 366.095, subdivision 1; 366.27; 368.01, subdivision
2.4623; 368.47; 370.01; 373.01, subdivisions 1, 3; 373.40, subdivisions 1, 2, 4;
2.47375.167, subdivision 1; 375.18, subdivision 3; 375.555; 383B.152; 383B.245;
2.48383B.73, subdivision 1; 383D.41, by adding a subdivision; 383E.20; 383E.23;
2.49385.31; 394.36, subdivision 1; 398A.04, subdivision 8; 401.05, subdivision 3;
2.50403.02, subdivision 21, by adding subdivisions; 403.06, subdivision 1a; 403.11,
2.51subdivision 1, by adding a subdivision; 410.32; 412.221, subdivision 2; 412.301;
2.52428A.02, subdivision 1; 430.102, subdivision 2; 447.10; 450.19; 450.25;
2.53458A.10; 458A.31, subdivision 1; 465.04; 469.033, subdivision 6; 469.034,
2.54subdivision 2; 469.053, subdivisions 4, 4a, 6; 469.071, subdivision 5; 469.107,
2.55subdivision 1; 469.169, by adding a subdivision; 469.176, subdivisions 4c, 4g,
2.566; 469.177, by adding a subdivision; 469.180, subdivision 2; 469.187; 469.190,
2.57subdivision 7, by adding a subdivision; 469.206; 469.319, subdivision 4; 469.340,
2.58subdivision 4; 471.24; 471.571, subdivisions 1, 2; 471.73; 473.325, subdivision
3.12; 473.39, by adding a subdivision; 473.629; 473.661, subdivision 3; 473.667,
3.2subdivision 9; 473.671; 473.711, subdivision 2a; 473F.02, subdivisions 12, 14,
3.315, 23; 473F.08, subdivision 10, by adding a subdivision; 474A.04, subdivision
3.41a; 474A.062; 474A.091, subdivision 3a; 475.521, subdivisions 1, 2, 4; 475.53,
3.5subdivisions 1, 3, 4; 475.58, subdivisions 2, 3b; 475.73, subdivision 1; 477A.011,
3.6subdivisions 20, 30, 32, 34, 42, by adding subdivisions; 477A.0124, subdivision
3.72; 477A.013, subdivisions 8, 9, by adding a subdivision; 477A.015; 477A.03,
3.8subdivisions 2a, 2b, by adding a subdivision; 641.23; 641.24; 645.44, by adding
3.9a subdivision; Laws 1971, chapter 773, section 1, subdivision 2, as amended;
3.10Laws 1988, chapter 645, section 3, as amended; Laws 1993, chapter 375, article
3.119, section 46, subdivisions 2, as amended, 5, as amended; Laws 1998, chapter
3.12389, article 8, section 43, subdivisions 1, 3, as amended, 5, as amended; Laws
3.131999, chapter 243, article 6, section 11; Laws 2002, chapter 377, article 3, section
3.1425, as amended; Laws 2005, First Special Session chapter 3, article 5, section
3.1537, subdivisions 2, 4; Laws 2008, chapter 366, article 5, sections 26; 33; 34, as
3.16amended; article 7, section 19, subdivision 3, as amended; Laws 2010, chapter
3.17216, section 55; Laws 2010, chapter 389, article 1, section 12; article 5, section 6,
3.18subdivisions 4, 6; Laws 2010, First Special Session chapter 1, article 13, section 4,
3.19subdivision 1, as amended; proposing coding for new law in Minnesota Statutes,
3.20chapters 116C; 287; 290; 290A; 292; 295; 297I; 403; 435; 469; proposing coding
3.21for new law as Minnesota Statutes, chapter 297J; repealing Minnesota Statutes
3.222012, sections 16A.725; 256.9658; 272.69; 273.11, subdivisions 1a, 22; 276A.01,
3.23subdivision 11; 289A.60, subdivision 31; 290.01, subdivision 6b; 290.06,
3.24subdivision 22a; 290.0672; 290.0921, subdivision 7; 383A.80, subdivision 4;
3.25383B.80, subdivision 4; 428A.101; 428A.21; 473F.02, subdivision 13; 477A.011,
3.26subdivisions 2a, 19, 21, 29, 31, 32, 33, 36, 39, 40, 41, 42; 477A.013, subdivisions
3.2711, 12; 477A.0133; 477A.0134; Laws 2006, chapter 259, article 11, section 3, as
3.28amended; Laws 2009, chapter 88, article 4, section 23, as amended.
3.29May 19, 2013
3.30The Honorable Paul Thissen
3.31Speaker of the House of Representatives
3.32The Honorable Sandra L. Pappas
3.33President of the Senate
3.34We, the undersigned conferees for H. F. No. 677 report that we have agreed upon the
3.35items in dispute and recommend as follows:
3.36That the Senate recede from its amendments and that H. F. No. 677 be further
3.37amended as follows:
3.38Delete everything after the enacting clause and insert:
3.41 Section 1. Minnesota Statutes 2012, section 290A.03, subdivision 3, is amended to read:
3.42 Subd. 3. Income. (1) "Income" means the sum of the following:
3.43 (a) federal adjusted gross income as defined in the Internal Revenue Code; and
3.44 (b) the sum of the following amounts to the extent not included in clause (a):
3.45 (i) all nontaxable income;
4.1 (ii) the amount of a passive activity loss that is not disallowed as a result of section
4.2469, paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity
4.3loss carryover allowed under section 469(b) of the Internal Revenue Code;
4.4 (iii) an amount equal to the total of any discharge of qualified farm indebtedness
4.5of a solvent individual excluded from gross income under section 108(g) of the Internal
4.6Revenue Code;
4.7 (iv) cash public assistance and relief;
4.8 (v) any pension or annuity (including railroad retirement benefits, all payments
4.9received under the federal Social Security Act, Supplemental Security Income, and
4.10veterans benefits), which was not exclusively funded by the claimant or spouse, or which
4.11was funded exclusively by the claimant or spouse and which funding payments were
4.12excluded from federal adjusted gross income in the years when the payments were made;
4.13 (vi) interest received from the federal or a state government or any instrumentality
4.14or political subdivision thereof;
4.15 (vii) workers' compensation;
4.16 (viii) nontaxable strike benefits;
4.17 (ix) the gross amounts of payments received in the nature of disability income or
4.18sick pay as a result of accident, sickness, or other disability, whether funded through
4.19insurance or otherwise;
4.20 (x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
4.211986, as amended through December 31, 1995;
4.22 (xi) contributions made by the claimant to an individual retirement account,
4.23including a qualified voluntary employee contribution; simplified employee pension plan;
4.24self-employed retirement plan; cash or deferred arrangement plan under section 401(k)
4.25of the Internal Revenue Code; or deferred compensation plan under section 457 of the
4.26Internal Revenue Code, to the extent the sum of amounts exceeds the retirement base
4.27amount for the claimant and spouse;
4.28 (xii) to the extent not included in federal adjusted gross income, distributions received
4.29by the claimant or spouse from a traditional or Roth style retirement account or plan;
4.30 (xiii) nontaxable scholarship or fellowship grants;
4.31
4.32Revenue Code;
4.33
4.34Revenue Code;
5.1
5.2
5.3Internal Revenue Code; and
5.4
5.5school teachers under section 62(a)(2)(D) of the Internal Revenue Code
5.6
5.7 In the case of an individual who files an income tax return on a fiscal year basis, the
5.8term "federal adjusted gross income" shall mean federal adjusted gross income reflected
5.9in the fiscal year ending in the calendar year. Federal adjusted gross income shall not be
5.10reduced by the amount of a net operating loss carryback or carryforward or a capital loss
5.11carryback or carryforward allowed for the year.
5.12 (2) "Income" does not include:
5.13 (a) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
5.14 (b) amounts of any pension or annuity which was exclusively funded by the claimant
5.15or spouse and which funding payments were not excluded from federal adjusted gross
5.16income in the years when the payments were made;
5.17 (c) to the extent included in federal adjusted gross income, amounts contributed by
5.18the claimant or spouse to a traditional or Roth style retirement account or plan, but not
5.19to exceed the retirement base amount reduced by the amount of contributions excluded
5.20from federal adjusted gross income, but not less than zero;
5.21 (d) surplus food or other relief in kind supplied by a governmental agency;
5.22
5.23
5.24dissolution or legal separation; or
5.25
5.26as defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of
5.272001, Public Law 107-16.
5.28 (3) The sum of the following amounts may be subtracted from income:
5.29 (a) for the claimant's first dependent, the exemption amount multiplied by 1.4;
5.30 (b) for the claimant's second dependent, the exemption amount multiplied by 1.3;
5.31 (c) for the claimant's third dependent, the exemption amount multiplied by 1.2;
5.32 (d) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
5.33 (e) for the claimant's fifth dependent, the exemption amount; and
5.34 (f) if the claimant or claimant's spouse was disabled or attained the age of 65
5.35on or before December 31 of the year for which the taxes were levied or rent paid, the
5.36exemption amount.
6.1 For purposes of this subdivision, the "exemption amount" means the exemption
6.2amount under section 151(d) of the Internal Revenue Code for the taxable year for which
6.3the income is reported; "retirement base amount" means the deductible amount for the
6.4taxable year for the claimant and spouse under section 219(b)(5)(A) of the Internal
6.5Revenue Code, adjusted for inflation as provided in section 219(b)(5)(D) of the Internal
6.6Revenue Code, without regard to whether the claimant or spouse claimed a deduction;
6.7and "traditional or Roth style retirement account or plan" means retirement plans under
6.8sections 401, 403, 408, 408A, and 457 of the Internal Revenue Code.
6.9EFFECTIVE DATE.This section is effective beginning with refunds based on
6.10property taxes payable in 2014 and rent paid in 2013.
6.11 Sec. 2. Minnesota Statutes 2012, section 290A.04, subdivision 2, is amended to read:
6.12 Subd. 2. Homeowners; homestead credit refund. A claimant whose property
6.13taxes payable are in excess of the percentage of the household income stated below shall
6.14pay an amount equal to the percent of income shown for the appropriate household
6.15income level along with the percent to be paid by the claimant of the remaining amount
6.16of property taxes payable. The state refund equals the amount of property taxes payable
6.17that remain, up to the state refund amount shown below.
7.35 The payment made to a claimant shall be the amount of the state refund calculated
7.36under this subdivision. No payment is allowed if the claimant's household income is
7.37
7.38EFFECTIVE DATE.This section is effective for refund claims based on taxes
7.39payable in 2014 and thereafter.
7.40 Sec. 3. Minnesota Statutes 2012, section 290A.04, subdivision 2a, is amended to read:
8.1 Subd. 2a. Renters. A claimant whose rent constituting property taxes exceeds the
8.2percentage of the household income stated below must pay an amount equal to the percent
8.3of income shown for the appropriate household income level along with the percent to
8.4be paid by the claimant of the remaining amount of rent constituting property taxes. The
8.5state refund equals the amount of rent constituting property taxes that remain, up to the
8.6maximum state refund amount shown below.
9.19 The payment made to a claimant is the amount of the state refund calculated under
9.20this subdivision. No payment is allowed if the claimant's household income is
9.21 $57,170 or more.
9.22EFFECTIVE DATE.This section is effective for claims based on rent paid in
9.232013 and following years.
9.24 Sec. 4. Minnesota Statutes 2012, section 290A.04, subdivision 4, is amended to read:
9.25 Subd. 4. Inflation adjustment. (a) Beginning for property tax refunds payable in
9.26calendar year 2002, the commissioner shall annually adjust the dollar amounts of the
9.27income thresholds and the maximum refunds under subdivisions 2 and 2a for inflation.
9.28The commissioner shall make the inflation adjustments in accordance with section 1(f) of
9.29the Internal Revenue Code, except that for purposes of this subdivision the percentage
9.30increase shall be determined as provided in this subdivision.
9.31 (b) In adjusting the dollar amounts of the income thresholds and the maximum
9.32refunds under subdivision 2 for inflation, the percentage increase shall be determined
9.33from the year ending on June 30,
9.34preceding that in which the refund is payable.
9.35 (c) In adjusting the dollar amounts of the income thresholds and the maximum
9.36refunds under subdivision 2a for inflation, the percentage increase shall be determined
10.1from the year ending on June 30,
10.2preceding that in which the refund is payable.
10.3 (d) The commissioner shall use the appropriate percentage increase to annually
10.4adjust the income thresholds and maximum refunds under subdivisions 2 and 2a for
10.5inflation without regard to whether or not the income tax brackets are adjusted for inflation
10.6in that year. The commissioner shall round the thresholds and the maximum amounts,
10.7as adjusted to the nearest $10 amount. If the amount ends in $5, the commissioner shall
10.8round it up to the next $10 amount.
10.9 (e) The commissioner shall annually announce the adjusted refund schedule at the
10.10same time provided under section
10.11this subdivision is not a rule under the Administrative Procedure Act.
10.12EFFECTIVE DATE.This section is effective for refund claims based on taxes
10.13payable in 2014 and rent paid in 2013 and following years.
10.14 Sec. 5. [290A.28] NOTIFICATION OF POTENTIAL ELIGIBILITY.
10.15 Subdivision 1. Notification of eligibility. (a) By September 1, 2014, the
10.16commissioner shall notify, in writing or electronically, individual homeowners whom the
10.17commissioner determines may be eligible for a homestead credit refund under this chapter
10.18for that property taxes payable year as provided in this section. In determining whether
10.19to notify a homeowner, the commissioner shall consider the property tax information
10.20available to the commissioner under paragraph (b) for the homeowner and must estimate
10.21the homeowner's household income using the most recent income information available to
10.22the commissioner from filing under this chapter for the prior year, under chapter 290 for
10.23the current or prior year, and any other income information available to the commissioner.
10.24For each homeowner, the commissioner must estimate the homestead credit refund
10.25amount under the schedule in section 290A.04, subdivision 2, using the homeowner's
10.26property tax amount and estimated household income. If the estimated homestead credit
10.27refund is at least $1,000, the commissioner must notify the homeowner of potential
10.28eligibility for the homestead credit refund. The notification must include information
10.29on how to file for the homestead credit refund. The notification requirement under this
10.30section does not apply to a homeowner who has already filed for the homestead credit
10.31refund for the current or prior year.
10.32 (b) By May 15, 2014, each county auditor shall transmit to the commissioner
10.33of revenue the following information for each property classified as a residential or
10.34agricultural homestead under section 273.13, subdivision 22 or 23:
10.35 (1) the property taxes payable;
11.1 (2) the name and address of the owner;
11.2 (3) the Social Security number or numbers of the owners; and
11.3 (4) any other information the commissioner deems necessary or useful to carry
11.4out the provisions of this section.
11.5The information must be provided in the form and manner prescribed by the commissioner.
11.6 Subd. 2. Reports. (a) By March 15, 2015, the commissioner must provide a written
11.7report to the chairs and ranking minority members of the legislative committees with
11.8jurisdiction over taxes, in compliance with sections 3.195 and 3.197. The report must
11.9provide information on the number and dollar amount of homeowner property tax refund
11.10claims based on taxes payable in 2014, including:
11.11 (1) the number and dollar amount of claims projected for homestead credit refunds
11.12based on taxes payable in 2014 prior to enactment of the notification requirement in
11.13this section;
11.14 (2) the number of notifications issued as provided in this section, including the
11.15number issued by county;
11.16 (3) preliminary information on the number and dollar amount of claims for
11.17homestead credit refunds based on taxes payable in 2014; and
11.18 (4) a description of any outreach efforts undertaken by the commissioner for
11.19homestead credit refunds based on taxes payable in 2014, in addition to the notification
11.20required in this section.
11.21 (b) By February 1, 2016, the commissioner must provide a written report to the chairs
11.22and ranking minority members of the legislative committees with jurisdiction over taxes,
11.23in compliance with sections 3.195 and 3.197. The report must include the information
11.24required in paragraph (a) and must also include final information on the number and dollar
11.25amount of claims for homestead credit refunds based on taxes payable in 2014.
11.26EFFECTIVE DATE.This section is effective for refund claims based on property
11.27taxes payable in 2014.
11.30 Section 1. Minnesota Statutes 2012, section 273.1398, subdivision 4, is amended to read:
11.31 Subd. 4. Disparity reduction credit. (a) Beginning with taxes payable in 1989,
11.32class 4a and class 3a property qualifies for a disparity reduction credit if: (1) the property
11.33is located in a border city that has an enterprise zone, as defined in section
11.34the property is located in a city with a population greater than 2,500 and less than 35,000
11.35according to the 1980 decennial census; (3) the city is adjacent to a city in another state or
12.1immediately adjacent to a city adjacent to a city in another state; and (4) the adjacent city
12.2in the other state has a population of greater than 5,000 and less than 75,000 according to
12.3the 1980 decennial census.
12.4 (b) The credit is an amount sufficient to reduce (i) the taxes levied on class 4a
12.5property to
12.6property to
12.7 (c) The county auditor shall annually certify the costs of the credits to the
12.8Department of Revenue. The department shall reimburse local governments for the
12.9property taxes forgone as the result of the credits in proportion to their total levies.
12.10EFFECTIVE DATE.This section is effective beginning with taxes payable in 2014.
12.11 Sec. 2. Minnesota Statutes 2012, section 290C.02, subdivision 6, is amended to read:
12.12 Subd. 6. Forest land. "Forest land" means land containing a minimum of 20
12.13contiguous acres for which the owner has implemented a forest management plan that was
12.14prepared or updated within the past ten years by an approved plan writer. For purposes of
12.15this subdivision, acres are considered to be contiguous even if they are separated by a road,
12.16waterway, railroad track, or other similar intervening property. At least 50 percent of the
12.17contiguous acreage must meet the definition of forest land in section
12.187
12.19land used for residential or agricultural purposes, (ii) land enrolled in the reinvest in
12.20Minnesota program, a state or federal conservation reserve or easement reserve program
12.21under sections
12.22section
12.23as defined in section
12.24chapter 473H,
12.25easement funded under section 97A.056 or a comparable permanent easement conveyed
12.26to a governmental or nonprofit entity; (iv) any land that becomes subject to a conservation
12.27easement funded under section 97A.056 or a comparable permanent easement conveyed
12.28to a governmental or nonprofit entity after May 30, 2013; or (v) land improved with a
12.29structure, pavement, sewer, campsite, or any road, other than a township road, used for
12.30purposes not prescribed in the forest management plan.
12.31EFFECTIVE DATE.This section is effective for certifications and applications
12.32due in 2013 and thereafter.
12.33 Sec. 3. Minnesota Statutes 2012, section 290C.03, is amended to read:
13.1290C.03 ELIGIBILITY REQUIREMENTS.
13.2(a) Land may be enrolled in the sustainable forest incentive program under this
13.3chapter if all of the following conditions are met:
13.4(1) the land consists of at least 20 contiguous acres and at least 50 percent of the
13.5land must meet the definition of forest land in section
13.6enrollment;
13.7(2) a forest management plan for the land must be prepared by an approved plan
13.8writer and implemented during the period in which the land is enrolled;
13.9(3) timber harvesting and forest management guidelines must be used in conjunction
13.10with any timber harvesting or forest management activities conducted on the land during
13.11the period in which the land is enrolled;
13.12(4) the land must be enrolled for a minimum of eight years;
13.13(5) there are no delinquent property taxes on the land; and
13.14(6) claimants enrolling more than 1,920 acres in the sustainable forest incentive
13.15program must allow year-round, nonmotorized access to fish and wildlife resources and
13.16motorized access on established and maintained roads and trails, unless the road or trail is
13.17temporarily closed for safety, natural resource, or road damage reasons on enrolled land
13.18except within one-fourth mile of a permanent dwelling or during periods of high fire
13.19hazard as determined by the commissioner of natural resources.
13.20(b) Claimants required to allow access under paragraph (a), clause (6), do not by
13.21that action:
13.22(1) extend any assurance that the land is safe for any purpose;
13.23(2) confer upon the person the legal status of an invitee or licensee to whom a duty
13.24of care is owed; or
13.25(3) assume responsibility for or incur liability for any injury to the person or property
13.26caused by an act or omission of the person.
13.27EFFECTIVE DATE.This section is effective for calculations made in 2013 and
13.28thereafter.
13.29 Sec. 4. Minnesota Statutes 2012, section 290C.055, is amended to read:
13.30290C.055 LENGTH OF COVENANT.
13.31(a) The covenant remains in effect for a minimum of eight years. If land is removed
13.32from the program before it has been enrolled for four years, the covenant remains in
13.33effect for eight years from the date recorded.
14.1(b) If land that has been enrolled for four years or more is removed from the program
14.2for any reason, there is a waiting period before the covenant terminates. The covenant
14.3terminates on January 1 of the fifth calendar year that begins after the date that:
14.4(1) the commissioner receives notification from the claimant that the claimant wishes
14.5to remove the land from the program under section
14.6(2) the date that the land is removed from the program under section
14.7(c) Notwithstanding the other provisions of this section, the covenant is terminated:
14.8(1) at the same time that the land is removed from the program due to acquisition of
14.9title or possession for a public purpose under section
14.10(2) at the request of the claimant after a reduction in payments due to changes in the
14.11payment formula under section 290C.07.
14.12EFFECTIVE DATE.This section is effective for calculations made in 2013 and
14.13thereafter.
14.14 Sec. 5. Minnesota Statutes 2012, section 290C.07, is amended to read:
14.15290C.07 CALCULATION OF INCENTIVE PAYMENT.
14.16
14.17to receive an annual payment. The payment shall equal $7 per acre for each acre enrolled
14.18in the sustainable forest incentive program.
14.19
14.20
14.21EFFECTIVE DATE.This section is effective for calculations made in 2013 and
14.22thereafter.
14.23 Sec. 6. [423A.022] POLICE AND FIREFIGHTER RETIREMENT
14.24SUPPLEMENTAL STATE AID.
14.25 Subdivision 1. Supplemental state aid. Annually, the commissioner of revenue
14.26shall allocate police and firefighter retirement supplemental state aid appropriated under
14.27subdivision 6 as provided in subdivision 2 and paid as provided in subdivision 4.
14.28 Subd. 2. Allocation. Of the total amount appropriated as supplemental state aid:
14.29 (1) 58.065 percent must be paid to the executive director of the Public Employees
14.30Retirement Association for deposit in the public employees police and fire retirement fund
14.31established by section 353.65, subdivision 1;
14.32 (2) 35.484 percent must be paid to municipalities other than municipalities solely
14.33employing firefighters with retirement coverage provided by the public employees police
15.1and fire retirement plan which qualified to receive fire state aid in that calendar year,
15.2allocated in proportion to the most recent amount of fire state aid paid under section
15.369.021, subdivision 7, for the municipality bears to the most recent total fire state aid
15.4for all municipalities other than the municipalities solely employing firefighters with
15.5retirement coverage provided by the public employees police and fire retirement plan
15.6paid under section 69.021, subdivision 7, with the allocated amount for fire departments
15.7participating in the voluntary statewide lump-sum volunteer firefighter retirement plan
15.8paid to the executive director of the Public Employees Retirement Association for deposit
15.9in the fund established by section 353G.02, subdivision 3, and credited to the respective
15.10account and with the balance paid to the treasurer of each municipality for transmittal
15.11within 30 days of receipt to the treasurer of the applicable volunteer firefighter relief
15.12association for deposit in its special fund; and
15.13 (3) 6.452 percent must be paid to the executive director of the Minnesota State
15.14Retirement System for deposit in the state patrol retirement fund.
15.15 Subd. 3. Reporting; definitions. (a) On or before September 1, annually, the
15.16executive director of the Public Employees Retirement Association shall report to the
15.17commissioner of revenue the following:
15.18 (1) the municipalities which employ firefighters with retirement coverage by the
15.19public employees police and fire retirement plan;
15.20 (2) the number of firefighters with public employees police and fire retirement plan
15.21coverage employed by each municipality;
15.22 (3) the fire departments covered by the voluntary statewide lump-sum volunteer
15.23firefighter retirement plan; and
15.24 (4) any other information requested by the commissioner to administer the police
15.25and firefighter retirement supplemental state aid program.
15.26 (b) For this subdivision, (i) the number of firefighters employed by a municipality
15.27who have public employees police and fire retirement plan coverage means the number
15.28of firefighters with public employees police and fire retirement plan coverage that were
15.29employed by the municipality for not less than 30 hours per week for a minimum of six
15.30months prior to December 31 preceding the date of the payment under this section and, if
15.31the person was employed for less than the full year, prorated to the number of full months
15.32employed; and (ii) the number of active police officers certified for police state aid receipt
15.33under section 69.011, subdivisions 2 and 2b, means, for each municipality, the number of
15.34police officers meeting the definition of peace officer in section 69.011, subdivision 1,
15.35counted as provided and limited by section 69.011, subdivisions 2 and 2b.
16.1 Subd. 4. Payments; conditions prerequisite. (a) The payments under this section
16.2must be made on October 1 each year, with interest at one percent for each month, or
16.3portion of a month, that the amount remains unpaid after October 1. Any necessary
16.4adjustments must be made to subsequent payments.
16.5 (b) The provisions of sections 69.011 to 69.051 that prevent municipalities and relief
16.6associations from being eligible for, or receiving fire state aid under sections 69.011 to
16.769.051 until the applicable financial reporting requirements have been complied with,
16.8apply to the amounts payable to municipalities and relief associations under this section.
16.9 Subd. 5. Aid termination. The aid program under this section ends on the
16.10December 1 next following the actuarial valuation date on which the assets of the
16.11retirement plan on a market value basis equals or exceeds 90 percent of the total
16.12actuarial accrued liabilities of the retirement plan as disclosed in an actuarial valuation
16.13prepared under section 356.215 and the Standards for Actuarial Work promulgated by the
16.14Legislative Commission on Pensions and Retirement, for the State Patrol retirement plan
16.15or the public employees police and fire retirement plan, whichever occurs last.
16.16 Subd. 6. Appropriation. $15,500,000 is appropriated annually to the commissioner
16.17of revenue for this aid program.
16.18EFFECTIVE DATE.This section is effective beginning in the fiscal year beginning
16.19July 1, 2013.
16.20 Sec. 7. Minnesota Statutes 2012, section 477A.011, subdivision 30, is amended to read:
16.21 Subd. 30. Pre-1940 housing percentage. (a) Except as provided in paragraph (b),
16.22"pre-1940 housing percentage" for a city is 100 times the most recent
16.23by the United States Bureau of the Census of all housing units in the city built before
16.241940, divided by the total number of all housing units in the city. Housing units includes
16.25both occupied and vacant housing units as defined by the federal census. For aids payable
16.26in 2014, "pre-1940 housing percentage" shall be based on 2010 housing data.
16.27 (b) For the city of East Grand Forks only, "pre-1940 housing percentage" is equal
16.28to 100 times the 1990 federal census count of all housing units in the city built before
16.291940, divided by the most recent count by the United States Bureau of the Census of all
16.30housing units in the city. Housing units includes both occupied and vacant housing units
16.31as defined by the federal census.
16.32EFFECTIVE DATE.This section is effective for aids payable in calendar year
16.332014 and thereafter.
17.1 Sec. 8. Minnesota Statutes 2012, section 477A.011, is amended by adding a
17.2subdivision to read:
17.3 Subd. 30a. Percent of housing built between 1940 and 1970. "Percent of housing
17.4built between 1940 and 1970" is equal to 100 times the most recent count by the United
17.5States Bureau of the Census of all housing units in the city built after 1939 but before
17.61970, divided by the total number of all housing units in the city. Housing units includes
17.7both occupied and vacant housing units as defined by the federal census. For aids payable
17.8in 2014, "percent of housing built between 1940 and 1970" shall be based on 2010
17.9housing data.
17.10EFFECTIVE DATE.This section is effective for aids payable in calendar year
17.112014 and thereafter.
17.12 Sec. 9. Minnesota Statutes 2012, section 477A.011, subdivision 34, is amended to read:
17.13 Subd. 34. City revenue need. (a) For a city with a population equal to or greater
17.14than
17.15
17.16
17.171970; plus (3)
17.18capita; plus (4)
17.19
17.20 (b) For a city with a population equal to or greater than 2,500 and less than 10,000,
17.21"city revenue need" is 1.15 times the sum of (1) 572.62; plus (2) 5.026 times the pre-1940
17.22housing percentage; minus (3) 53.768 times household size; plus (4) 14.022 times peak
17.23population decline.
17.24
17.25
17.26
17.27
17.28population over 100. The city revenue need under this paragraph shall not exceed 630.
17.29
17.30
17.31
17.32
17.33
17.34
17.35
18.1
18.2
18.3revenue need" equals (1) the transition factor times the city's revenue need calculated in
18.4paragraph (b) plus (2) 630 times the difference between one and the transition factor. For
18.5a city with a population of at least 10,000 but less than 10,500, the "city revenue need"
18.6equals (1) the transition factor times the city's revenue need calculated in paragraph (a)
18.7plus (2) the city's revenue need calculated under the formula in paragraph (b) times the
18.8difference between one and the transition factor. For purposes of this paragraph "transition
18.9factor" is 0.2 percent times the amount that the city's population exceeds the minimum
18.10threshold in either of the first two sentences.
18.11
18.12
18.13a city, as determined in paragraphs (a) to
18.14implicit price deflator for government consumption expenditures and gross investment for
18.15state and local governments as prepared by the United States Department of Commerce,
18.16for the most recently available year to the
18.17and local government purchases.
18.18EFFECTIVE DATE.This section is effective for aids payable in calendar year
18.192014 and thereafter.
18.20 Sec. 10. Minnesota Statutes 2012, section 477A.011, subdivision 42, is amended to read:
18.21 Subd. 42.
18.22
18.23
18.24
18.25
18.26
18.27
18.28
18.29
18.30
18.31
18.32
18.33average annual number of employees in the city based on the data from the Quarterly
18.34Census of Employment and Wages, as reported by the Department of Employment and
18.35Economic Development, for the most recent calendar year available
19.1 November 1 of every odd-numbered year, divided by (2) the city's population for the
19.2same calendar year as the employment data. The commissioner of the Department of
19.3Employment and Economic Development shall certify to the city the average annual
19.4number of employees for each city by
19.5year beginning with January 1, 2014. A city may challenge an estimate under this
19.6paragraph by filing its specific objection, including the names of employers that it feels
19.7may have misreported data, in writing with the commissioner by
19.81 of every odd-numbered year. The commissioner shall make every reasonable effort
19.9to address the specific objection and adjust the data as necessary. The commissioner
19.10shall certify the estimates of the annual employment to the commissioner of revenue by
19.11
19.12objection. For aids payable in 2014, "jobs per capita" shall be based on the annual number
19.13of employees and population for calendar year 2010 without additional review.
19.14EFFECTIVE DATE.This section is effective for aids payable in calendar year
19.152014 and thereafter.
19.16 Sec. 11. Minnesota Statutes 2012, section 477A.011, is amended by adding a
19.17subdivision to read:
19.18 Subd. 44. Peak population decline. "Peak population decline" is equal to 100
19.19times the difference between one and the ratio of the city's current population, to the
19.20highest city population reported in a federal census from the 1970 census or later. "Peak
19.21population decline" shall not be less than zero.
19.22EFFECTIVE DATE.This section is effective for aids payable in calendar year
19.232014 and thereafter.
19.24 Sec. 12. Minnesota Statutes 2012, section 477A.011, is amended by adding a
19.25subdivision to read:
19.26 Subd. 45. Sparsity adjustment. For a city with a population of 10,000 or more, the
19.27sparsity adjustment is 100 for any city with an average population density less than 150
19.28per square mile, according to the most recent federal census, and the sparsity adjustment is
19.29zero for all other cities.
19.30EFFECTIVE DATE.This section is effective for aids payable in calendar year
19.312014 and thereafter.
19.32 Sec. 13. Minnesota Statutes 2012, section 477A.013, subdivision 1, is amended to read:
20.1 Subdivision 1. Towns.
20.2
20.3subdivision equal to the product of (i) its agricultural property factor, (ii) its town area
20.4factor, (iii) its population factor, and (iv) 0.0045. As used in this subdivision, the following
20.5terms have the meanings given them:
20.6(1) "agricultural property factor" means the ratio of the adjusted net tax capacity of
20.7agricultural property located in a town, divided by the adjusted net tax capacity of all other
20.8property located in the town. The agricultural property factor cannot exceed eight;
20.9(2) "agricultural property" means property classified under section 273.13, as
20.10homestead and nonhomestead agricultural property, rural vacant land, and noncommercial
20.11seasonal recreational property;
20.12(3) "town area factor" means the most recent estimate of total acreage, not to exceed
20.1350,000 acres, located in the township available as of July 1 in the aid calculation year,
20.14estimated or established by:
20.15(i) the United States Bureau of the Census;
20.16(ii) the State Land Management Information Center; or
20.17(iii) the secretary of state; and
20.18(4) "population factor" means the square root of the towns' population.
20.19If the sum of the aids payable to all towns under this subdivision exceeds the limit
20.20under section 477A.03, subdivision 2c, the distribution to each town must be reduced
20.21proportionately so that the total amount of aids distributed under this section does not
20.22exceed the limit in section 477A.03, subdivision 2c.
20.23EFFECTIVE DATE.This section is effective for aids payable in calendar year
20.242014 and thereafter.
20.25 Sec. 14. Minnesota Statutes 2012, section 477A.013, subdivision 8, is amended to read:
20.26 Subd. 8. City formula aid. (a) For aids payable in 2014 only, the formula aid for a
20.27city is equal to the sum of (1) its 2013 certified aid and (2) the product of (i) the difference
20.28between its unmet need and its 2013 certified aid and (ii) the aid gap percentage.
20.29 (b) For aids payable in 2015 and thereafter, the formula aid for a city is equal to
20.30the sum of (1) its
20.31
20.32
20.33its unmet need and its certified aid in the previous year under subdivision 9, and (ii)
20.34the aid gap percentage.
21.1No city may have a formula aid amount less than zero. The
21.2 percentage must be the same for all cities.
21.3 The applicable
21.4Department of Revenue so that the total of the aid under subdivision 9 equals the total
21.5amount available for aid under section
21.6under sections
21.7January 1 in the year in which the aid is calculated
21.8
21.9EFFECTIVE DATE.This section is effective for aids payable in calendar year
21.102014 and thereafter.
21.11 Sec. 15. Minnesota Statutes 2012, section 477A.013, subdivision 9, is amended to read:
21.12 Subd. 9. City aid distribution. (a) In calendar year
21.13city shall receive an aid distribution equal to the sum of (1) the city formula aid under
21.14subdivision 8, and (2) its
21.15
21.16
21.17
21.18
21.19
21.20
21.21
21.22
21.23
21.24
21.25
21.26
21.27amount it was certified to receive in 2013. For aids payable in
21.28the total aid for a city
21.29it was certified to receive in the previous year minus the lesser of $10 multiplied by its
21.30population, or five percent of
21.31
21.32
21.33
21.34
22.1
22.2
22.3
22.4
22.5
22.6
22.7
22.8
22.9
22.10
22.11
22.12EFFECTIVE DATE.This section is effective for aids payable in calendar year
22.132014 and thereafter.
22.14 Sec. 16. Minnesota Statutes 2012, section 477A.013, is amended by adding a
22.15subdivision to read:
22.16 Subd. 13. Certified aid adjustments. (a) A city that received an aid base increase
22.17under Minnesota Statutes 2012, section 477A.011, subdivision 36, paragraph (e), shall
22.18have its total aid under subdivision 9 increased by an amount equal to $150,000 for aids
22.19payable in 2014 through 2018.
22.20(b) A city that received an aid base increase under section 477A.011, subdivision 36,
22.21paragraph (r), shall have its total aid under subdivision 9 increased by an amount equal to
22.22$160,000 for aids payable in 2014 and thereafter.
22.23(c) A city that received a temporary aid increase under Minnesota Statutes 2012,
22.24section 477A.011, subdivision 36, paragraph (o), shall have its total aid under subdivision
22.259 increased by an amount equal to $1,000,000 for aids payable in 2014 only.
22.26 Sec. 17. Minnesota Statutes 2012, section 477A.015, is amended to read:
22.27477A.015 PAYMENT DATES.
22.28The commissioner of revenue shall make the payments of local government aid to
22.29affected taxing authorities in two installments on July 20 and December 26 annually.
22.30When the commissioner of public safety determines that a local government has
22.31suffered financial hardship due to a natural disaster, the commissioner of public safety
22.32shall notify the commissioner of revenue, who shall make payments of aids under sections
23.2after the determination is made but not before July 20.
23.3The commissioner may pay all or part of the payments of aids under sections
23.5local government requests such payment as being necessary for meeting its cash flow
23.6needs. For aids payable in 2013 only, a city that is located in an area deemed a disaster
23.7area during the month of April 2013, as defined in section 12A.02, subdivision 5, shall
23.8receive its December 26, 2013 payment with its July 20, 2013 payment.
23.9EFFECTIVE DATE.This section is effective for aids payable in calendar year
23.102013 and thereafter.
23.11 Sec. 18. Minnesota Statutes 2012, section 477A.03, subdivision 2a, is amended to read:
23.12 Subd. 2a. Cities. For aids payable in
23.13under section
23.14under section 477A.013, subdivision 9, is $509,098,012 for aids payable in 2015. For aids
23.15payable in 2016 and thereafter, the total aid paid under section 477A.013, subdivision
23.169, is $511,598,012.
23.17EFFECTIVE DATE.This section is effective for aids payable in calendar year
23.182014 and thereafter.
23.19 Sec. 19. Minnesota Statutes 2012, section 477A.03, subdivision 2b, is amended to read:
23.20 Subd. 2b. Counties. (a) For aids payable in
23.21payable under section
23.22calendar year, $500,000 of this appropriation shall be retained by the commissioner
23.23of revenue to make reimbursements to the commissioner of management and budget
23.24for payments made under section
23.25
23.26
23.27
23.28costs associated with court-ordered counsel under section
23.29not used for reimbursement in a year shall be included in the next distribution of county
23.30need aid that is certified to the county auditors for the purpose of property tax reduction
23.31for the next taxes payable year.
23.32 (b) For aids payable in
24.1
24.2commissioner of management and budget $207,000 annually for the cost of preparation
24.3of local impact notes as required by section
24.4
24.5
24.6
24.7
24.8preparation of local impact notes for school districts as required by section 3.987. The
24.9commissioner of revenue shall deduct the amounts
24.10from the appropriation under this paragraph. The amounts
24.11appropriated to the commissioner of management and budget and the commissioner of
24.12education
24.13EFFECTIVE DATE.This section is effective for aid payable in 2014 and thereafter.
24.14 Sec. 20. Minnesota Statutes 2012, section 477A.03, is amended by adding a
24.15subdivision to read:
24.16 Subd. 2c. Towns. For aids payable in 2014, the total aids paid under section
24.17477A.013, subdivision 1, is limited to $10,000,000. For aids payable in 2015 and
24.18thereafter, the total aids paid under section 477A.013, subdivision 1, is limited to the
24.19amount certified to be paid in the previous year.
24.20EFFECTIVE DATE.This section is effective for aids payable in calendar year
24.212014 and thereafter.
24.22 Sec. 21. [477A.085] DEBT SERVICE AID; CITY OF MINNEAPOLIS.
24.23On or before November 1, 2016, and the first day of each November thereafter, the
24.24commissioner shall pay to the city of Minneapolis an amount equal to 40 percent of the
24.25city's otherwise required levy to pay its general obligation library referendum bonds for
24.26the following calendar year. The levy excludes any amount to pay bonds, other than
24.27refunding bonds, issued after May 1, 2013. An amount sufficient to pay the aid under this
24.28section is appropriated from the general fund to the commissioner of revenue.
24.29 Sec. 22. [477A.10] NATURAL RESOURCES LAND PAYMENTS IN LIEU;
24.30PURPOSE.
24.31The purposes of sections 477A.11 to 477A.14 are:
25.1(1) to compensate local units of government for the loss of tax base from state
25.2ownership of land and the need to provide services for state land;
25.3(2) to address the disproportionate impact of state land ownership on local units of
25.4government with a large proportion of state land; and
25.5(3) to address the need to manage state lands held in trust for the local taxing districts.
25.6 Sec. 23. Minnesota Statutes 2012, section 477A.11, subdivision 3, is amended to read:
25.7 Subd. 3. Acquired natural resources land. "Acquired natural resources land"
25.8means:
25.9(1)
25.10commissioner in which the state acquired by purchase, condemnation, or gift, a fee title
25.11interest in lands which were previously privately owned; and
25.12(2) lands acquired by the state under chapter 84A that are designated as state parks,
25.13state recreation areas, scientific and natural areas, or wildlife management areas.
25.14EFFECTIVE DATE.This section is effective for aids payable in calendar year
25.152013 and thereafter.
25.16 Sec. 24. Minnesota Statutes 2012, section 477A.11, subdivision 4, is amended to read:
25.17 Subd. 4. Other natural resources land. "Other natural resources land" means
25.18any
25.19 presently owned in fee title by the state and administered by the commissioner, or
25.20any tax-forfeited land, other than platted lots within a city or those lands described
25.21under subdivision 3, clause (2), which is owned by the state and administered by the
25.22commissioner or by the county in which it is located.
25.23EFFECTIVE DATE.This section is effective for aids payable in calendar year
25.242013 and thereafter.
25.25 Sec. 25. Minnesota Statutes 2012, section 477A.11, is amended by adding a
25.26subdivision to read:
25.27 Subd. 6. Military game refuge. "Military game refuge" means land owned in
25.28fee by another state agency for military purposes and designated as a state game refuge
25.29under section 97A.085.
25.30EFFECTIVE DATE.This section is effective for aids payable in calendar year
25.312013 and thereafter.
26.1 Sec. 26. Minnesota Statutes 2012, section 477A.11, is amended by adding a
26.2subdivision to read:
26.3 Subd. 7. Transportation wetland. "Transportation wetland" means land
26.4administered by the Department of Transportation in which the state acquired, by purchase
26.5from a private owner, a fee title interest in over 500 acres of land within a county to
26.6replace wetland losses from transportation projects.
26.7EFFECTIVE DATE.This section is effective for aids payable in calendar year
26.82013 and thereafter.
26.9 Sec. 27. Minnesota Statutes 2012, section 477A.11, is amended by adding a
26.10subdivision to read:
26.11 Subd. 8. Wildlife management land. "Wildlife management land" means land
26.12administered by the commissioner in which the state acquired, from a private owner by
26.13purchase, condemnation, or gift, a fee interest under the authority granted in chapter 94 or
26.1497A for wildlife management purposes and actually used as a wildlife management area.
26.15EFFECTIVE DATE.This section is effective for aids payable in calendar year
26.162013 and thereafter.
26.17 Sec. 28. Minnesota Statutes 2012, section 477A.12, subdivision 1, is amended to read:
26.18 Subdivision 1. Types of land; payments.
26.19
26.20annually appropriated to the commissioner of natural resources from the general fund for
26.21transfer to the commissioner of revenue. The commissioner of revenue shall pay the
26.22transferred funds to counties as required by sections
26.23based on the acreage as of July 1 of each year prior to the payment year, are:
26.24(1)
26.25of acquired natural resources land or, at the county's option three-fourths of one percent of
26.26the appraised value of all acquired natural resources land in the county, whichever is greater;
26.27(2) $5.133, multiplied by the total number of acres of transportation wetland or, at
26.28the county's option, three-fourths of one percent of the appraised value of all acquired
26.29natural resources land in the county, whichever is greater;
26.30(3) three-fourths of one percent of the appraised value of all wildlife management
26.31land in the county;
26.32(4) 50 percent of the dollar amount as determined under clause (1), multiplied by
26.33the number of acres of military refuge land in the county;
27.1
27.2natural resources land in the county;
27.3
27.4project land in the county;
27.5
27.6commissioner-administered other natural resources land
27.7
27.8 (8) without regard to acreage, $300,000 for local assessments under section 84A.55,
27.9subdivision 9.
27.10
27.11
27.12
27.13
27.14
27.15EFFECTIVE DATE.This section is effective for aids payable in calendar year
27.162013 and thereafter.
27.17 Sec. 29. Minnesota Statutes 2012, section 477A.12, subdivision 2, is amended to read:
27.18 Subd. 2. Procedure.
27.19
27.20
27.21Natural Resources during July of each year prior to the payment year the number of acres
27.22of county-administered other natural resources land within the county. The Department of
27.23Natural resources may, in addition to the certification of acreage, require descriptive lists
27.24of land so certified. The commissioner of natural resources shall determine and certify to
27.25the commissioner of revenue by March 1 of the payment year:
27.26(1) the number of acres and most recent appraised value of acquired natural
27.27resources land, wildlife management land, and military refuge land within each county;
27.28(2) the number of acres of commissioner-administered natural resources land within
27.29each county;
27.30(3) the number of acres of county-administered other natural resources land within
27.31each county, based on the reports filed by each county auditor with the commissioner
27.32of natural resources; and
27.33(4) the number of acres of land utilization project land within each county.
27.34The commissioner of transportation shall determine and certify to the commissioner
27.35of revenue by March 1 of the payment year the number of acres of
28.1wetland and the appraised value of the land
28.2only if it exceeds 500 acres in a county.
28.3The commissioner of revenue shall determine the distributions provided for in this
28.4section using the number of acres and appraised values certified by the commissioner of
28.5natural resources and the commissioner of transportation by March 1 of the payment year.
28.6EFFECTIVE DATE.This section is effective for aids payable in calendar year
28.72013 and thereafter.
28.8 Sec. 30. Minnesota Statutes 2012, section 477A.12, subdivision 3, is amended to read:
28.9 Subd. 3. Determination of appraised value. For the purposes of this section, the
28.10appraised value of acquired natural resources land is the purchase price
28.11
28.12The appraised value of acquired natural resources land received as a donation is the value
28.13determined for the commissioner of natural resources by a licensed appraiser, or the
28.14county assessor's estimated market value if no appraisal is done. The appraised value must
28.15be determined by the county assessor every
28.16reappraisals shall be done in the same year as county assessors are required to assess
28.17exempt land under section 273.18.
28.18EFFECTIVE DATE.This section is effective for aids payable in calendar year
28.192013 and thereafter.
28.20 Sec. 31. Minnesota Statutes 2012, section 477A.14, subdivision 1, is amended to read:
28.21 Subdivision 1. General distribution. Except as provided in
28.22
28.23the county shall be deposited in the county general revenue fund to be used to provide
28.24property tax levy reduction. The remainder shall be distributed by the county in the
28.25following priority:
28.26(a) 64.2 cents, for each acre of county-administered other natural resources land shall
28.27be deposited in a resource development fund to be created within the county treasury for
28.28use in resource development, forest management, game and fish habitat improvement, and
28.29recreational development and maintenance of county-administered other natural resources
28.30land. Any county receiving less than $5,000 annually for the resource development fund
28.31may elect to deposit that amount in the county general revenue fund;
28.32(b) from the funds remaining, within 30 days of receipt of the payment to the county,
28.33the county treasurer shall pay each organized township
29.1
29.2
29.3
29.4under section 477A.12, subdivision 1, clauses (1), (2), and (5) to (7). Payments for natural
29.5resources lands not located in an organized township shall be deposited in the county
29.6general revenue fund. Payments to counties and townships pursuant to this paragraph shall
29.7be used to provide property tax levy reduction, except that of the payments for natural
29.8resources lands not located in an organized township, the county may allocate the amount
29.9determined to be necessary for maintenance of roads in unorganized townships. Provided
29.10that, if the total payment to the county pursuant to section
29.11fund the distribution provided for in this clause, the amount available shall be distributed
29.12to each township and the county general revenue fund on a pro rata basis; and
29.13(c) any remaining funds shall be deposited in the county general revenue fund.
29.14Provided that, if the distribution to the county general revenue fund exceeds $35,000, the
29.15excess shall be used to provide property tax levy reduction.
29.16EFFECTIVE DATE.This section is effective for aids payable in calendar year
29.172013 and thereafter.
29.18 Sec. 32. Minnesota Statutes 2012, section 477A.14, is amended by adding a
29.19subdivision to read:
29.20 Subd. 3. Distribution for wildlife management lands and military refuge lands.
29.21(a) The county treasurer shall allocate the payment for wildlife management land and
29.22military game refuge land among the county, towns, and school districts on the same basis
29.23as if the payments were taxes on the land received in the year. Payment of a town's or a
29.24school district's allocation must be made by the county treasurer to the town or school
29.25district within 30 days of receipt of the payment to the county. The county's share of the
29.26payment shall be deposited in the county general revenue fund.
29.27(b) The county treasurer of a county with a population over 39,000, but less than
29.2842,000, in the 1950 federal census shall allocate the payment only among the towns and
29.29school districts on the same basis as if the payments were taxes on the lands received
29.30in the current year.
29.31(c) If a town received a payment in calendar year 2006 or thereafter under this
29.32subdivision, and subsequently incorporated as a city, the city shall continue to receive any
29.33future year's allocations of wildlife land payments that would have been made to the town
29.34had it not incorporated, provided that the payments shall terminate if the governing body
29.35of the city passes an ordinance that prohibits hunting within the boundaries of the city.
30.1EFFECTIVE DATE.This section is effective for aids payable in calendar year
30.22013 and thereafter.
30.3 Sec. 33. Laws 2006, chapter 259, article 11, section 3, as amended by Laws 2008,
30.4chapter 154, article 1, section 4, is amended to read:
30.5 Sec. 3. MAHNOMEN COUNTY; COUNTY, CITY, SCHOOL DISTRICT,
30.6PROPERTY TAX REIMBURSEMENT.
30.7 Subdivision 1. Aid appropriation.
30.8from the general fund to the commissioner of revenue to be used to make payments to
30.9compensate for the loss of property tax revenue related to the trust conversion application
30.10of the Shooting Star Casino. The commissioner shall pay the county of Mahnomen,
30.11
30.12District No. 432, Mahnomen,
30.13of
30.14EFFECTIVE DATE.This section is effective for aids payable in calendar year
30.152013 and thereafter.
30.16 Sec. 34. INELIGIBILITY; SUSTAINABLE FOREST INCENTIVE PROGRAM.
30.17Lands that no longer qualify as forest land under Minnesota Statutes, section
30.18290C.02, subdivision 6, item (iii), are released from the covenant required under
30.19Minnesota Statutes, section 290C.04.
30.20EFFECTIVE DATE.This section is effective the day following final enactment.
30.21 Sec. 35. REENROLLMENT; SUSTAINABLE FOREST INCENTIVE
30.22PROGRAM.
30.23A person who elected to terminate participation in the sustainable forest incentive
30.24program, as provided in Laws 2011, First Special Session chapter 7, article 6, section 12,
30.25may reenroll lands for which the claimant terminated participation and be eligible for a
30.26payment in October 2013. A person must apply for reenrollment under this section within
30.2760 days after the effective date of this section.
30.28EFFECTIVE DATE.This section is effective the day following final enactment.
30.29 Sec. 36. REPEALER.
31.1(a) Minnesota Statutes 2012, sections 477A.011, subdivisions 2a, 19, 29, 31, 32, 33,
31.236, 39, 40, and 41; 477A.013, subdivisions 11 and 12; 477A.0133; and 477A.0134, are
31.3repealed.
31.4(b) Minnesota Statutes 2012, section 97A.061, and Laws 1973, chapter 567, section
31.57, as amended by Laws 1977, chapter 403, section 12, are repealed on July 1, 2013.
31.6EFFECTIVE DATE.This section is effective for aids payable in calendar year
31.72014 and thereafter.
31.10 Section 1. [124D.862] ACHIEVEMENT AND INTEGRATION REVENUE.
31.11 Subdivision 1. Initial achievement and integration revenue. (a) An eligible
31.12district's initial achievement and integration revenue equals the sum of (1) $350 times
31.13the district's adjusted pupil units for that year times the ratio of the district's enrollment
31.14of protected students for the previous school year to total enrollment for the previous
31.15school year and (2) the greater of zero or 66 percent of the difference between the district's
31.16integration revenue for fiscal year 2013 and the district's integration revenue for fiscal
31.17year 2014 under clause (1).
31.18(b) In each year, 0.3 percent of each district's initial achievement and integration
31.19revenue is transferred to the department for the oversight and accountability activities
31.20required under this section and section 124D.861.
31.21 Subd. 2. Incentive revenue. An eligible school district's maximum incentive
31.22revenue equals $10 per adjusted pupil unit. In order to receive this revenue, a district must
31.23be implementing a voluntary plan to reduce racial and economic enrollment disparities
31.24through intradistrict and interdistrict activities that have been approved as a part of the
31.25district's achievement and integration plan.
31.26 Subd. 3. Achievement and integration revenue. Achievement and integration
31.27revenue equals the sum of initial achievement and integration revenue and incentive
31.28revenue.
31.29 Subd. 4. Achievement and integration aid. For fiscal year 2015 and later,
31.30a district's achievement and integration aid equals 70 percent of its achievement and
31.31integration revenue.
31.32 Subd. 5. Achievement and integration levy. A district's achievement and
31.33integration levy equals its achievement and integration revenue times 30 percent. For
31.34Special School District No. 1, Minneapolis; Independent School District No. 625, St.
31.35Paul; and Independent School District No. 709, Duluth, 100 percent of the levy certified
32.1under this subdivision is shifted into the prior calendar year for purposes of sections
32.2123B.75, subdivision 5, and 127A.441.
32.3 Subd. 6. Revenue uses. (a) At least 80 percent of a district's achievement and
32.4integration revenue received under this section must be used for innovative and integrated
32.5learning environments, school enrollment choices, family engagement activities, and other
32.6approved programs providing direct services to students.
32.7(b) Up to 20 percent of the revenue may be used for professional development and
32.8staff development activities and placement services.
32.9(c) No more than ten percent of the total amount of revenue may be spent on
32.10administrative services.
32.11 Subd. 7. Revenue reserved. Integration revenue received under this section must
32.12be reserved and used only for the programs authorized in subdivision 2.
32.13 Subd. 8. Commissioner authority to withhold revenue. (a) The commissioner
32.14must review the results of each district's integration and achievement plan by August 1 at
32.15the end of the third year of implementing the plan and determine if the district met its goals.
32.16(b) If a district met its goals, it may submit a new three-year plan to the commissioner
32.17for review.
32.18(c) If a district has not met its goals, the commissioner must:
32.19(1) develop a district improvement plan and timeline, in consultation with the
32.20affected district, that identifies strategies and practices designed to meet the district's goals
32.21under this section and section 120B.11; and
32.22(2) use up to 20 percent of the district's integration revenue, until the district's goals
32.23are reached, to implement the improvement plan.
32.24EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014 and
32.25later. Subdivision 5 is effective for taxes payable in 2014 only.
32.26 Sec. 2. Minnesota Statutes 2012, section 126C.10, subdivision 1, is amended to read:
32.27 Subdivision 1. General education revenue. (a) For fiscal years 2013 and 2014, the
32.28general education revenue for each district equals the sum of the district's basic revenue,
32.29extended time revenue, gifted and talented revenue, small schools revenue, basic skills
32.30revenue,
32.31revenue, transportation sparsity revenue, total operating capital revenue, equity revenue,
32.32alternative teacher compensation revenue, and transition revenue.
32.33(b) For fiscal year 2015 and later, the general education revenue for each district
32.34equals the sum of the district's basic revenue, extended time revenue, gifted and
32.35talented revenue, declining enrollment revenue, location equity revenue, small schools
33.1revenue, basic skills revenue, secondary sparsity revenue, elementary sparsity revenue,
33.2transportation sparsity revenue, total operating capital revenue, equity revenue, pension
33.3adjustment revenue, and transition revenue.
33.4 Sec. 3. Minnesota Statutes 2012, section 126C.10, is amended by adding a subdivision
33.5to read:
33.6 Subd. 2d. Location equity revenue. (a) For a school district with any of its area
33.7located within the seven-county metropolitan area, location equity revenue equals $424
33.8times the adjusted pupil units of the district for that school year.
33.9(b) For all other school districts with more than 2,000 pupils in adjusted average
33.10daily membership for the fiscal year ending in the year before the levy is certified, location
33.11equity revenue equals $212 times the adjusted pupil units of the district for that year.
33.12(c) A district's location equity levy equals its location equity revenue times the lesser
33.13of one or the ratio of its referendum market value per resident pupil unit to $510,000. The
33.14location equity revenue levy must be spread on referendum market value.
33.15(d) A district's location equity aid equals its location equity revenue less its location
33.16equity levy, times the ratio of the actual amount levied to the permitted levy.
33.17(e) A school district may elect not to participate in the location equity revenue
33.18program by a board vote taken prior to September 1 of the fiscal year before the fiscal year
33.19for which the decision not to participate becomes effective. The board resolution must
33.20state which fiscal years the district will not participate. A copy of the board resolution
33.21to not participate must be submitted to the commissioner.
33.22EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
33.23and later.
33.24 Sec. 4. Minnesota Statutes 2012, section 126C.13, subdivision 4, is amended to read:
33.25 Subd. 4. General education aid. (a) For fiscal years
33.26a district's general education aid is the sum of the following amounts:
33.27 (1) general education revenue, excluding equity revenue, total operating capital
33.28revenue, alternative teacher compensation revenue, and transition revenue;
33.29 (2) operating capital aid under section
33.30 (3) equity aid under section
33.31 (4) alternative teacher compensation aid under section
33.32 (5) transition aid under section
33.33 (6) shared time aid under section
33.34 (7) referendum aid under section
34.1 (8) online learning aid according to section
34.2(b) For fiscal year 2015 and later, a district's general education aid equals:
34.3(1) general education revenue, excluding operating capital revenue, equity revenue,
34.4location equity revenue, and transition revenue, minus the student achievement levy,
34.5multiplied times the ratio of the actual amount of student achievement levy levied to the
34.6permitted student achievement levy; plus
34.7(2) equity aid under section 126C.10, subdivision 30; plus
34.8(3) transition aid under section 126C.10, subdivision 33; plus
34.9(4) shared time aid under section 126C.10, subdivision 7; plus
34.10(5) referendum aid under section 126C.17, subdivisions 7 and 7a;
34.11(6) online learning aid under section 124D.096; plus
34.12(7) location equity aid according to section 126C.10, subdivision 2d, paragraph (d).
34.13 Sec. 5. Minnesota Statutes 2012, section 126C.17, is amended to read:
34.14126C.17 REFERENDUM REVENUE.
34.15 Subdivision 1. Referendum allowance.
34.16
34.17
34.18
34.19
34.20
34.21
34.22
34.23
34.24
34.25
34.26
34.27
34.28
34.29
34.30
34.31
34.32
34.33
34.34
34.35
35.1
35.2
35.3(a) A district's initial referendum allowance for fiscal year 2015 equals the result of
35.4the following calculations:
35.5(1) multiply the referendum allowance the district would have received for fiscal
35.6year 2015 under Minnesota Statutes 2012, section 126C.17, subdivision 1, based on
35.7elections held before July 1, 2013, by the resident marginal cost pupil units the district
35.8would have counted for fiscal year 2015 under Minnesota Statutes 2012, section 126C.05;
35.9(2) add to the result of clause (1) the adjustment the district would have received
35.10under Minnesota Statutes 2012, section 127A.47, subdivision 7, paragraphs (a), (b), and
35.11(c), based on elections held before July 1, 2013;
35.12(3) divide the result of clause (2) by the district's adjusted pupil units for fiscal
35.13year 2015; and
35.14(4) if the result of clause (3) is less than zero, set the allowance to zero.
35.15(b) A district's referendum allowance equals the sum of the district's initial
35.16referendum allowance for fiscal year 2015, plus any additional referendum allowance per
35.17adjusted pupil unit authorized after June 30, 2013, minus (i) the location equity revenue
35.18subtraction, and (ii) any allowances expiring in fiscal year 2016 or later, provided that
35.19the allowance may not be less than zero. For a district with more than one referendum
35.20allowance for fiscal year 2015 under Minnesota Statutes 2012, section 126C.17, the
35.21allowance calculated under paragraph (a) must be divided into components such that the
35.22same percentage of the district's allowance expires at the same time as the old allowances
35.23would have expired under Minnesota Statutes 2012, section 126C.17.
35.24(c) For purposes of this subdivision, a district's location equity revenue subtraction
35.25equals $424 for a district receiving location equity revenue under section 126C.10,
35.26subdivision 2d, paragraph (a), $212 for a district receiving location equity revenue under
35.27section 126C.10, subdivision 2d, paragraph (b), and zero for all other school districts.
35.28 Subd. 2. Referendum allowance limit. (a) Notwithstanding subdivision 1, for fiscal
35.29year
35.30
35.31
35.32
35.33
35.34annual inflationary increase as calculated under paragraph (b)
35.35(1) $1,845;
36.1(2) the sum of the referendum revenue the district would have received for fiscal
36.2year 2015 under Minnesota Statutes 2012, section 126C.17, subdivision 4, based on
36.3elections held before July 1, 2013, and the adjustment the district would have received
36.4under Minnesota Statutes 2012, section 127A.47, subdivision 7, paragraphs (a), (b), and
36.5(c), based on elections held before July 1, 2013, divided by the district's adjusted pupil
36.6units for fiscal year 2015; or
36.7(3) the product of the referendum allowance limit the district would have received
36.8for fiscal year 2015 under Minnesota Statutes 2012, section 126C.17, subdivision 2, and
36.9the resident marginal cost pupil units the district would have received for fiscal year 2015
36.10under Minnesota Statutes 2012, section 126C.05, subdivision 6, plus the adjustment the
36.11district would have received under Minnesota Statutes 2012, section 127A.47, subdivision
36.127, paragraphs (a), (b), and (c), based on elections held before July 1, 2013, divided by
36.13the district's adjusted pupil units for fiscal year 2015; minus $424 for a district receiving
36.14location equity revenue under section 126C.10, subdivision 2d, paragraph (a), minus
36.15$212 for a district receiving location equity revenue under section 126C.10, subdivision
36.162d, paragraph (b), or
36.17
36.18revenue authority for each reorganizing district in the year preceding reorganization divided
36.19by its
36.20(b) For purposes of this subdivision, for fiscal year
36.21increase" means one plus the percentage change in the Consumer Price Index for urban
36.22consumers, as prepared by the United States Bureau of Labor Standards, for the current
36.23fiscal year to fiscal year
36.24of paragraph (a), clause
36.25
36.26for that year compared with the formula allowance for fiscal year
36.27 Subd. 3. Sparsity exception. A district that qualifies for sparsity revenue under
36.28section
36.29 Subd. 4. Total referendum revenue. The total referendum revenue for each district
36.30equals the district's referendum allowance times the
36.31units for the school year.
36.32 Subd. 5. Referendum equalization revenue. (a)
36.33 A district's referendum equalization revenue equals the sum of the first tier referendum
36.34equalization revenue and the second tier referendum equalization revenue, and the third
36.35tier referendum equalization revenue.
37.1(b) A district's first tier referendum equalization revenue equals the district's first
37.2tier referendum equalization allowance times the district's
37.3 pupil units for that year.
37.4(c)
37.5
37.6
37.7
37.8
37.9equals the lesser of the district's referendum allowance under subdivision 1 or
37.10(d) A district's second tier referendum equalization revenue equals the district's
37.11second tier referendum equalization allowance times the district's
37.12 adjusted pupil units for that year.
37.13(e)
37.14
37.15
37.16
37.17allowance equals the lesser of the district's referendum allowance under subdivision 1
37.18or
37.19equalization allowance.
37.20(f)
37.21
37.22
37.23
37.24
37.25district's third tier referendum equalization allowance times the district's adjusted pupil
37.26units for that year.
37.27(g) A district's third tier referendum equalization allowance equals the lesser of
37.28the district's referendum allowance under subdivision 1 or 25 percent of the formula
37.29allowance, minus the sum of the district's first tier referendum equalization allowance and
37.30second tier referendum equalization allowance.
37.31(h) Notwithstanding paragraph (g), the third tier referendum allowance for a district
37.32qualifying for secondary sparsity revenue under section 126C.10, subdivision 7, or
37.33elementary sparsity revenue under section 126C.10, subdivision 8, equals the district's
37.34referendum allowance under subdivision 1 minus the sum of the district's first tier
37.35referendum equalization allowance and second tier referendum equalization allowance.
38.1 Subd. 6. Referendum equalization levy. (a) For fiscal year 2003 and later,
38.2a district's referendum equalization levy equals the sum of the first tier referendum
38.3equalization levy
38.4referendum equalization levy.
38.5(b) A district's first tier referendum equalization levy equals the district's first tier
38.6referendum equalization revenue times the lesser of one or the ratio of the district's
38.7referendum market value per resident
38.8(c) A district's second tier referendum equalization levy equals the district's second
38.9tier referendum equalization revenue times the lesser of one or the ratio of the district's
38.10referendum market value per resident
38.11(d) A district's third tier referendum equalization levy equals the district's third
38.12tier referendum equalization revenue times the lesser of one or the ratio of the district's
38.13referendum market value per resident pupil unit to $290,000.
38.14 Subd. 7. Referendum equalization aid. (a) A district's referendum equalization aid
38.15equals the difference between its referendum equalization revenue and levy.
38.16(b) If a district's actual levy for first
38.17revenue is less than its maximum levy limit for that tier, aid shall be proportionately
38.18reduced.
38.19(c) Notwithstanding paragraph (a), the referendum equalization aid for a district,
38.20where the referendum equalization aid under paragraph (a) exceeds 90 percent of the
38.21referendum revenue, must not exceed
38.22district's
38.23increased by the amount of any reduction in referendum aid under this paragraph.
38.24 Subd. 7a. Referendum tax base replacement aid. For each school district that
38.25had a referendum allowance for fiscal year 2002 exceeding $415, for each separately
38.26authorized referendum levy, the commissioner of revenue, in consultation with the
38.27commissioner of education, shall certify the amount of the referendum levy in taxes
38.28payable year 2001 attributable to the portion of the referendum allowance exceeding $415
38.29levied against property classified as class 2, noncommercial 4c(1), or 4c(4), under section
38.31of the house, garage, and surrounding one acre of land. The resulting amount must be
38.32used to reduce the district's referendum levy amount otherwise determined, and must be
38.33paid to the district each year that the referendum authority remains in effect, is renewed,
38.34or new referendum authority is approved. The aid payable under this subdivision must
38.35be subtracted from the district's referendum equalization aid under subdivision 7. The
38.36referendum equalization aid after the subtraction must not be less than zero.
39.1 Subd. 7b. Referendum aid guarantee. (a) Notwithstanding subdivision 7, a
39.2district's referendum equalization aid for fiscal year 2015 must not be less than the sum
39.3of the referendum equalization aid the district would have received for fiscal year 2015
39.4under Minnesota Statutes 2012, section 126C.17, subdivision 7, and the adjustment the
39.5district would have received under Minnesota Statutes 2012, section 127A.47, subdivision
39.67, paragraphs (a), (b), and (c).
39.7(b) Notwithstanding subdivision 7, referendum equalization aid for fiscal year 2016
39.8and later, for a district qualifying for additional aid under paragraph (a) for fiscal year
39.92015, must not be less than the product of (1) the district's referendum equalization aid
39.10for fiscal year 2015, times (2) the lesser of one or the ratio of the district's referendum
39.11revenue for that school year to the district's referendum revenue for fiscal year 2015, times
39.12(3) the lesser of one or the ratio of the district's referendum market value used for fiscal
39.13year 2015 referendum equalization calculations to the district's referendum market value
39.14used for that year's referendum equalization calculations.
39.15 Subd. 8. Unequalized referendum levy. Each year, a district may levy an amount
39.16equal to the difference between its total referendum revenue according to subdivision 4
39.17and its referendum equalization revenue according to subdivision 5.
39.18 Subd. 9. Referendum revenue. (a) The revenue authorized by section
39.19subdivision 1
39.20at a referendum called for the purpose. The referendum may be called by the board.
39.21The referendum must be conducted one or two calendar years before the increased levy
39.22authority, if approved, first becomes payable. Only one election to approve an increase
39.23may be held in a calendar year. Unless the referendum is conducted by mail under
39.24subdivision 11, paragraph (a), the referendum must be held on the first Tuesday after the
39.25first Monday in November. The ballot must state the maximum amount of the increased
39.26revenue per
39.27determined by the board, of increased revenue per
39.28unit that differs from year to year over the number of years for which the increased revenue
39.29is authorized or may state that the amount shall increase annually by the rate of inflation.
39.30For this purpose, the rate of inflation shall be the annual inflationary increase calculated
39.31under subdivision 2, paragraph (b). The ballot may state that existing referendum levy
39.32authority is expiring. In this case, the ballot may also compare the proposed levy authority
39.33to the existing expiring levy authority, and express the proposed increase as the amount, if
39.34any, over the expiring referendum levy authority. The ballot must designate the specific
39.35number of years, not to exceed ten, for which the referendum authorization applies. The
39.36ballot, including a ballot on the question to revoke or reduce the increased revenue amount
40.1under paragraph (c), must abbreviate the term "per
40.2unit" as "per pupil." The notice required under section
40.3cases of renewing existing levies at the same amount per pupil as in the previous year:
40.4"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING
40.5TO EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS
40.6SCHEDULED TO EXPIRE."
40.7 The ballot may contain a textual portion with the information required in this
40.8subdivision and a question stating substantially the following:
40.9 "Shall the increase in the revenue proposed by (petition to) the board of .........,
40.10School District No. .., be approved?"
40.11 If approved, an amount equal to the approved revenue per
40.12 adjusted pupil unit times the
40.13year beginning in the year after the levy is certified shall be authorized for certification
40.14for the number of years approved, if applicable, or until revoked or reduced by the voters
40.15of the district at a subsequent referendum.
40.16 (b) The board must prepare and deliver by first class mail at least 15 days but no more
40.17than 30 days before the day of the referendum to each taxpayer a notice of the referendum
40.18and the proposed revenue increase. The board need not mail more than one notice to any
40.19taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be
40.20those shown to be owners on the records of the county auditor or, in any county where
40.21tax statements are mailed by the county treasurer, on the records of the county treasurer.
40.22Every property owner whose name does not appear on the records of the county auditor
40.23or the county treasurer is deemed to have waived this mailed notice unless the owner
40.24has requested in writing that the county auditor or county treasurer, as the case may be,
40.25include the name on the records for this purpose. The notice must project the anticipated
40.26amount of tax increase in annual dollars for typical residential homesteads, agricultural
40.27homesteads, apartments, and commercial-industrial property within the school district.
40.28 The notice for a referendum may state that an existing referendum levy is expiring
40.29and project the anticipated amount of increase over the existing referendum levy in
40.30the first year, if any, in annual dollars for typical residential homesteads, agricultural
40.31homesteads, apartments, and commercial-industrial property within the district.
40.32 The notice must include the following statement: "Passage of this referendum will
40.33result in an increase in your property taxes." However, in cases of renewing existing levies,
40.34the notice may include the following statement: "Passage of this referendum extends an
40.35existing operating referendum at the same amount per pupil as in the previous year."
41.1 (c) A referendum on the question of revoking or reducing the increased revenue
41.2amount authorized pursuant to paragraph (a) may be called by the board. A referendum to
41.3revoke or reduce the revenue amount must state the amount per resident marginal cost
41.4pupil unit by which the authority is to be reduced. Revenue authority approved by the
41.5voters of the district pursuant to paragraph (a) must be available to the school district at
41.6least once before it is subject to a referendum on its revocation or reduction for subsequent
41.7years. Only one revocation or reduction referendum may be held to revoke or reduce
41.8referendum revenue for any specific year and for years thereafter.
41.9 (d) The approval of 50 percent plus one of those voting on the question is required to
41.10pass a referendum authorized by this subdivision.
41.11 (e) At least 15 days before the day of the referendum, the district must submit a
41.12copy of the notice required under paragraph (b) to the commissioner and to the county
41.13auditor of each county in which the district is located. Within 15 days after the results
41.14of the referendum have been certified by the board, or in the case of a recount, the
41.15certification of the results of the recount by the canvassing board, the district must notify
41.16the commissioner of the results of the referendum.
41.17 Subd. 9a. Board-approved referendum allowance. Notwithstanding subdivision
41.189, a school district may convert up to $300 per adjusted pupil unit of referendum authority
41.19from voter approved to board approved by a board vote. A district with less than $300
41.20per adjusted pupil unit of referendum authority may authorize new referendum authority
41.21up to the difference between $300 per adjusted pupil unit and the district's referendum
41.22authority. The board may authorize this levy for up to five years and may subsequently
41.23reauthorize that authority in increments of up to five years.
41.24 Subd. 10. School referendum levy; market value. A school referendum levy must
41.25be levied against the referendum market value of all taxable property as defined in section
41.27subdivision must be certified separately to the county auditor under section
41.28 Subd. 11. Referendum date. (a) Except for a referendum held under paragraph (b),
41.29any referendum under this section held on a day other than the first Tuesday after the first
41.30Monday in November must be conducted by mail in accordance with section
41.31Notwithstanding subdivision 9, paragraph (b), to the contrary, in the case of a referendum
41.32conducted by mail under this paragraph, the notice required by subdivision 9, paragraph (b),
41.33must be prepared and delivered by first-class mail at least 20 days before the referendum.
41.34(b) In addition to the referenda allowed in subdivision 9, clause (a), the commissioner
41.35may grant authority to a district to hold a referendum on a different day if the district is in
42.1statutory operating debt and has an approved plan or has received an extension from the
42.2department to file a plan to eliminate the statutory operating debt.
42.3(c) The commissioner must approve, deny, or modify each district's request for a
42.4referendum levy on a different day within 60 days of receiving the request from a district.
42.5 Subd. 13. Referendum conversion allowance. A school district that received
42.6supplemental or transition revenue in fiscal year 2002 may convert its supplemental
42.7revenue conversion allowance and transition revenue conversion allowance to additional
42.8referendum allowance under subdivision 1 for fiscal year 2003 and thereafter. A majority
42.9of the school board must approve the conversion at a public meeting before November 1,
42.102001. For a district with other referendum authority, the referendum conversion allowance
42.11approved by the board continues until the portion of the district's other referendum
42.12authority with the earliest expiration date after June 30, 2006, expires. For a district
42.13with no other referendum authority, the referendum conversion allowance approved by
42.14the board continues until June 30, 2012.
42.15EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
42.16and later.
42.17 Sec. 6. OPERATING REFERENDUM FREEZE, FISCAL YEAR 2015.
42.18(a) Notwithstanding Minnesota Statutes, section 126C.17, subdivision 9, a school
42.19district may not authorize an increase to its operating referendum in fiscal year 2015. A
42.20school district may reauthorize an operating referendum that is expiring in fiscal year 2015.
42.21(b) Paragraph (a) shall not apply to a district if, prior to June 30, 2013, the board
42.22adopted a resolution to conduct a referendum in 2013.
42.23(c) Paragraph (a) shall not apply to a district if the district did not authorize an
42.24operating referendum in fiscal year 2014.
42.25(d) Paragraph (a) shall not apply to a district if the district is in statutory operating
42.26debt under Minnesota Statutes, section 123B.81, as of June 30, 2013, and has an approved
42.27plan with the Department of Education.
42.30 Section 1. Minnesota Statutes 2012, section 103B.102, subdivision 3, is amended to
42.31read:
42.32 Subd. 3. Evaluation and report. The Board of Water and Soil Resources shall
42.33evaluate performance, financial, and activity information for each local water management
42.34entity. The board shall evaluate the entities' progress in accomplishing their adopted plans
43.1on a regular basis as determined by the board based on budget and operations of the local
43.2water management entity, but not less than once every
43.3maintain a summary of local water management entity performance on the board's Web site.
43.4Beginning February 1, 2008, and annually thereafter, the board shall provide an analysis
43.5of local water management entity performance to the chairs of the house of representatives
43.6and senate committees having jurisdiction over environment and natural resources policy.
43.7 Sec. 2. Minnesota Statutes 2012, section 103B.335, is amended to read:
43.8103B.335 TAX LEVY AUTHORITY.
43.9 Subdivision 1. Local water planning and management. The governing body of
43.10any county, municipality, or township may levy a tax in an amount required to implement
43.11sections
43.12defined in section 103B.3363.
43.13 Subd. 2. Priority programs; conservation and watershed districts. A county
43.14may levy amounts necessary to pay the reasonable
43.15conservation districts and watershed districts of administering and implementing priority
43.16programs identified in an approved and adopted plan or a comprehensive watershed
43.17management plan as defined in section 103B.3363.
43.18 Sec. 3. Minnesota Statutes 2012, section 103B.3369, subdivision 5, is amended to read:
43.19 Subd. 5. Financial assistance. A base grant may be awarded to a county that
43.20provides a match utilizing a water implementation tax or other local source. A water
43.21implementation tax that a county intends to use as a match to the base grant must be
43.22levied at a rate sufficient to generate a minimum amount determined by the board.
43.23The board may award performance-based grants to local units of government that are
43.24responsible for implementing elements of applicable portions of watershed management
43.25plans, comprehensive plans, local water management plans, or comprehensive watershed
43.26management plans, developed or amended, adopted and approved, according to chapter
43.27103B, 103C, or 103D. Upon request by a local government unit, the board may also
43.28award performance-based grants to local units of government to carry out TMDL
43.29implementation plans as provided in chapter 114D, if the TMDL implementation plan has
43.30been incorporated into the local water management plan according to the procedures for
43.31approving comprehensive plans, watershed management plans, local water management
43.32plans, or comprehensive watershed management plans under chapter 103B, 103C, or
43.33103D, or if the TMDL implementation plan has undergone a public review process.
43.34Notwithstanding section
44.1advanced basis. The fee authorized in section 40A.152 may be used as a local match
44.2or as a supplement to state funding to accomplish implementation of comprehensive
44.3plans, watershed management plans, local water management plans, or comprehensive
44.4watershed management plans under chapter 103B, 103C, or 103D.
44.5 Sec. 4. Minnesota Statutes 2012, section 103C.501, subdivision 4, is amended to read:
44.6 Subd. 4. Cost-sharing funds. (a) The state board shall allocate
44.7
44.8problems or water quantity problems due to altered hydrology. The areas must be selected
44.9based on
44.10 (b) The allocated funds must be used for conservation practices for high priority
44.11problems identified in the comprehensive and annual work plans of the districts, for
44.12the technical assistance portion of the grant funds to leverage federal or other nonstate
44.13funds, or to address high-priority needs identified in local water management plans or
44.14comprehensive watershed management plans.
44.15
44.16
44.17
44.18
44.19
44.20 Sec. 5. Minnesota Statutes 2012, section 103F.405, subdivision 1, is amended to read:
44.21 Subdivision 1. Authority. Each statutory or home rule charter city, town, or
44.22county that has planning and zoning authority under sections
44.23to
44.24loss ordinance must use the soil loss tolerance for each soil series described in the United
44.25States
44.26another method approved by the Board of Water and Soil Resources, to determine the
44.27soil loss limits, but the soil loss limits must be attainable by the best practicable soil
44.28conservation practice. Ordinances adopted by local governments
44.29
44.30
44.31watershed management plan developed or amended, adopted, and approved according
44.32to chapter 103B, 103C, or 103D.
44.33 Sec. 6. Minnesota Statutes 2012, section 168.012, subdivision 9, is amended to read:
45.1 Subd. 9. Manufactured homes and park trailers. Manufactured homes and park
45.2trailers shall not be taxed as motor vehicles using the public streets and highways and shall
45.3be exempt from the motor vehicle tax provisions of this chapter. Except as provided in
45.4section
45.5The provisions of Minnesota Statutes 1957, section
45.6tax exemption shall be inapplicable to manufactured homes and park trailers, except
45.7such manufactured homes as are held by a licensed dealer or limited dealer, as defined
45.8in section 327B.04, and exempted as inventory under subdivision 9a. Travel trailers not
45.9conspicuously displaying current registration plates on the property tax assessment date
45.10shall be taxed as manufactured homes if occupied as human dwelling places.
45.11EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
45.12thereafter.
45.13 Sec. 7. Minnesota Statutes 2012, section 168.012, is amended by adding a subdivision
45.14to read:
45.15 Subd. 9a. Manufactured home as dealer inventory. Manufactured homes as
45.16defined in section 327.31, subdivision 6, shall be considered as dealer inventory, on the
45.17January 2 assessment date, if the home is:
45.18(1) listed as inventory and held by a licensed or limited dealer;
45.19(2) unoccupied and not available for rent;
45.20(3) connected or not connected to utilities when located in a manufactured home
45.21park; and
45.22(4) connected or not connected to utilities when located at a dealer's sales center.
45.23The exemption under this subdivision is allowable for up to five assessment years after
45.24the date a home is initially claimed as dealer inventory.
45.25EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
45.26thereafter.
45.27 Sec. 8. Minnesota Statutes 2012, section 270.41, subdivision 3, is amended to read:
45.28 Subd. 3.
45.29 (a) The board may (i) refuse to grant or renew, or may suspend or revoke, a license
45.30of an applicant or licensee, or (ii) censure, warn, or fine any licensed assessor, or any
45.31other person employed by an assessment jurisdiction or contracting with an assessment
45.32jurisdiction for the purpose of valuing or classifying property for property tax purposes,
45.33 for any of the following causes or acts:
46.1 (1) failure to complete required training;
46.2 (2) inefficiency or neglect of duty;
46.3 (3) failure to comply with the Code of Conduct and Ethics for Licensed Minnesota
46.4Assessors adopted by the board pursuant to Laws 2005, First Special Session chapter 3,
46.5article 1, section 38;
46.6 (4) conviction of a crime involving moral turpitude;
46.7(5) failure to faithfully and fully perform his or her duties through malfeasance,
46.8misfeasance, or nonfeasance; or
46.9
46.10
46.11this subdivision.
46.12(b) When appropriate for the level of infraction, a written warning must be given
46.13to assessors who have no prior identified infractions. The warning must identify the
46.14infraction and, as appropriate, detail future expectations of performance and behavior.
46.15Fines must not exceed $1,000 for the first occurrence and must not exceed $3,000 for each
46.16occurrence thereafter, and suspensions must not exceed one year for each occurrence,
46.17depending in each case upon the severity of the infraction and the level of negligence or
46.18intent. An action by the board to impose a sanction is subject to review in a contested
46.19case hearing under chapter 14.
46.20EFFECTIVE DATE.This section is effective beginning July 1, 2013.
46.21 Sec. 9. Minnesota Statutes 2012, section 270.41, is amended by adding a subdivision
46.22to read:
46.23 Subd. 3a. Report on disciplinary actions. Each odd-numbered year, the board
46.24must publish a report detailing the number and types of disciplinary actions recommended
46.25by the commissioner of revenue under section 273.0645, subdivision 2, and the disposition
46.26of those recommendations by the board. The report must be presented to the house of
46.27representatives and senate committees with jurisdiction over property taxes by February 1
46.28of each odd-numbered year.
46.29EFFECTIVE DATE.This section is effective beginning July 1, 2013.
46.30 Sec. 10. Minnesota Statutes 2012, section 270.45, is amended to read:
46.31270.45 DISPOSITION OF FEES AND FINES.
47.1 All fees and fines so established and collected shall be paid to the commissioner of
47.2management and budget for deposit in the general fund. The expenses of carrying out the
47.3provisions of sections
47.4EFFECTIVE DATE.This section is effective beginning July 1, 2013.
47.5 Sec. 11. [270C.9901] ASSESSOR ACCREDITATION.
47.6Every individual who appraises or physically inspects real property for the purpose
47.7of determining its valuation or classification for property tax purposes must obtain
47.8licensure as an accredited Minnesota assessor from the State Board of Assessors by July 1,
47.92019, or within four years of that person having become licensed as a certified Minnesota
47.10assessor, whichever is later.
47.11EFFECTIVE DATE.This section is effective beginning January 1, 2014.
47.12 Sec. 12. Minnesota Statutes 2012, section 272.02, subdivision 39, is amended to read:
47.13 Subd. 39. Economic development; public purpose. The holding of property by a
47.14political subdivision of the state for later resale for economic development purposes
47.15shall be considered a public purpose in accordance with subdivision 8 for a period not to
47.16exceed nine years, except that:
47.17(1) for property located in a city of
47.18outside of the metropolitan area as defined in section
47.19must not exceed 15 years
47.20(2) for any property that was acquired on or after January 1, 2000, and on or before
47.21December 31, 2010, and is located in a city, the period must not exceed 15 years.
47.22The holding of property by a political subdivision of the state for later resale (1)
47.23which is purchased or held for housing purposes, or (2) which meets the conditions
47.24described in section
47.25accordance with subdivision 8.
47.26The governing body of the political subdivision which acquires property which is
47.27subject to this subdivision shall after the purchase of the property certify to the city or
47.28county assessor whether the property is held for economic development purposes or
47.29housing purposes, or whether it meets the conditions of section
47.30If the property is acquired for economic development purposes and buildings or other
47.31improvements are constructed after acquisition of the property, and if more than one-half
47.32of the floor space of the buildings or improvements which is available for lease to or use
47.33by a private individual, corporation, or other entity is leased to or otherwise used by
48.1a private individual, corporation, or other entity the provisions of this subdivision shall
48.2not apply to the property. This subdivision shall not create an exemption from section
48.4law providing for the taxation of or for payments in lieu of taxes for publicly held property
48.5which is leased, loaned, or otherwise made available and used by a private person.
48.6EFFECTIVE DATE.This section is effective for assessment year 2013 and
48.7thereafter and for taxes payable in 2014 and thereafter.
48.8 Sec. 13. Minnesota Statutes 2012, section 272.02, is amended by adding a subdivision
48.9to read:
48.10 Subd. 98. Certain property owned by an Indian tribe. (a) Property is exempt that:
48.11(1) was classified as 3a under section 273.13, subdivision 24, for taxes payable
48.12in 2013;
48.13(2) is located in a city of the first class with a population greater than 300,000 as of
48.14the 2010 federal census;
48.15(3) was on January 2, 2012, and is for the current assessment owned by a federally
48.16recognized Indian tribe, or its instrumentality, that is located within the state of Minnesota;
48.17and
48.18(4) is used exclusively for tribal purposes or institutions of purely public charity as
48.19defined in subdivision 7.
48.20(b) For purposes of this subdivision, a "tribal purpose" means a public purpose
48.21as defined in subdivision 8 and includes noncommercial tribal government activities.
48.22Property that qualifies for the exemption under this subdivision is limited to no more than
48.23two contiguous parcels and structures that do not exceed in the aggregate 20,000 square
48.24feet. Property acquired for single-family housing, market-rate apartments, agriculture, or
48.25forestry does not qualify for this exemption. The exemption created by this subdivision
48.26expires with taxes payable in 2024.
48.27EFFECTIVE DATE.This section is effective beginning with taxes payable in 2014.
48.28 Sec. 14. Minnesota Statutes 2012, section 272.02, is amended by adding a subdivision
48.29to read:
48.30 Subd. 99. Electric generation facility; personal property. (a) Notwithstanding
48.31subdivision 9, clause (a), and section 453.54, subdivision 20, attached machinery and
48.32other personal property which is part of an electric generation facility that exceeds five
49.1megawatts of installed capacity and meets the requirements of this subdivision is exempt.
49.2At the time of construction, the facility must be:
49.3 (1) designed to utilize natural gas as a primary fuel;
49.4 (2) owned and operated by a municipal power agency as defined in section 453.52,
49.5subdivision 8;
49.6 (3) designed to utilize reciprocating engines paired with generators to produce
49.7electrical power;
49.8 (4) located within the service territory of a municipal power agency's electrical
49.9municipal utility that serves load exclusively in a metropolitan county as defined in
49.10section 473.121, subdivision 4; and
49.11(5) designed to connect directly with a municipality's substation.
49.12 (b) Construction of the facility must be commenced after June 1, 2013, and before
49.13June 1, 2017. Property eligible for this exemption does not include electric transmission
49.14lines and interconnections or gas pipelines and interconnections appurtenant to the
49.15property or the facility.
49.16EFFECTIVE DATE.This section is effective for assessment year 2013, taxes
49.17payable in 2014, and thereafter.
49.18 Sec. 15. Minnesota Statutes 2012, section 273.061, subdivision 2, is amended to read:
49.19 Subd. 2. Term; vacancy. (a) The terms of county assessors appointed under this
49.20section shall be four years. A new term shall begin on January 1 of every fourth year
49.21after 1973. When any vacancy in the office occurs, the board of county commissioners,
49.22within 90 days thereafter, shall fill the same by appointment for the remainder of the term,
49.23following the procedure prescribed in subdivision 1. The term of the county assessor
49.24may be terminated by the board of county commissioners at any time, on charges of
49.25malfeasance, misfeasance, or nonfeasance by the commissioner of revenue. If the board
49.26of county commissioners does not intend to reappoint a county assessor who has been
49.27certified by the state Board of Assessors, the board shall present written notice to the
49.28county assessor not later than 90 days prior to the termination of the assessor's term, that it
49.29does not intend to reappoint the assessor. If written notice is not timely made, the county
49.30assessor will automatically be reappointed by the board of county commissioners.
49.31
49.32
49.33
49.34(b) In the event of a vacancy in the office of county assessor, through death,
49.35resignation or other reasons, the deputy (or chief deputy, if more than one) shall perform
50.1the functions of the office. If there is no deputy, the county auditor shall designate a person
50.2to perform the duties of the office until an appointment is made as provided in clause (a).
50.3Such person shall perform the duties of the office for a period not exceeding 90 days
50.4during which the county board must appoint a county assessor. Such 90-day period may,
50.5however, be extended by written approval of the commissioner of revenue.
50.6(c) In the case of the first appointment under paragraph (a) of a county assessor who
50.7is accredited but who does not have senior accreditation, an approval of the appointment
50.8by the commissioner shall be provisional, provided that a county assessor appointed to
50.9a provisional term under this paragraph must reapply to the commissioner at the end of
50.10the provisional term. A provisional term may not exceed two years. The commissioner
50.11shall not approve the appointment for the remainder of the four-year term unless the
50.12assessor has obtained senior accreditation.
50.13EFFECTIVE DATE.This section is effective beginning July 1, 2013.
50.14 Sec. 16. Minnesota Statutes 2012, section 273.0645, is amended to read:
50.15273.0645 COMMISSIONER REVIEW OF
50.16PRACTICES.
50.17 Subdivision 1. Local assessment practices. The commissioner of revenue must
50.18review the assessment practices in a taxing jurisdiction if requested in writing by a
50.19qualifying number of property owners in that taxing jurisdiction. The request must be
50.20signed by the greater of:
50.21 (1) ten percent of the registered voters who voted in the last general election; or
50.22 (2) five property owners.
50.23 The request must identify the city, town, or county and describe why a review is
50.24sought for that taxing jurisdiction. The commissioner must conduct the review in a
50.25reasonable amount of time and report the findings to the county board of the affected
50.26county, to the affected city council or town board, if the review is for a specific city or
50.27town, and to the property owner designated in the request as the person to receive the
50.28report on behalf of all the property owners who signed the request. The commissioner
50.29must also provide the report electronically to all property owners who signed the request
50.30and provided an e-mail address in order to receive the report electronically.
50.31 Subd. 2. Nonfeasance, misfeasance, and malfeasance. County assessors may file a
50.32written complaint with the commissioner of revenue detailing allegations of nonfeasance,
50.33misfeasance, or malfeasance by a local assessor. After receiving a complaint from a county
50.34assessor, the commissioner must complete an investigation and recommend an appropriate
51.1action to the State Board of Assessors. The commissioner is not required to have a written
51.2complaint from a county assessor in order to conduct an investigation and recommend an
51.3action to the board. Active investigative data relating to the investigation of complaints
51.4against an assessor by the commissioner of revenue are subject to section 13.39.
51.5EFFECTIVE DATE.This section is effective July 1, 2013.
51.6 Sec. 17. Minnesota Statutes 2012, section 273.117, is amended to read:
51.7273.117 CONSERVATION PROPERTY TAX VALUATION.
51.8 The value of real property which is subject to a conservation restriction or easement
51.9
51.10 (a) the restriction or easement is for a conservation purpose as defined in section
51.12 (b) the property is being used in accordance with the terms of the conservation
51.13restriction or easement.
51.14This section does not apply to (1) conservation restrictions or easements covering
51.15riparian buffers along lakes, rivers, and streams that are used for water quantity or quality
51.16control; or (2) to easements in a county that has adopted, by referendum, a program to
51.17protect farmland and natural areas since 1999.
51.18EFFECTIVE DATE.This section is effective for assessment year 2013 and
51.19thereafter, and for taxes payable in 2014 and thereafter.
51.20 Sec. 18. Minnesota Statutes 2012, section 273.13, subdivision 25, is amended to read:
51.21 Subd. 25. Class 4. (a) Class 4a is residential real estate containing four or more
51.22units and used or held for use by the owner or by the tenants or lessees of the owner
51.23as a residence for rental periods of 30 days or more, excluding property qualifying for
51.24class 4d. Class 4a also includes hospitals licensed under sections
51.25than hospitals exempt under section
51.26purposes, without regard to whether the property has been platted or subdivided. The
51.27market value of class 4a property has a class rate of 1.25 percent.
51.28 (b) Class 4b includes:
51.29 (1) residential real estate containing less than four units that does not qualify as class
51.304bb, other than seasonal residential recreational property;
51.31 (2) manufactured homes not classified under any other provision;
51.32 (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead
51.33farm classified under subdivision 23, paragraph (b) containing two or three units; and
52.1 (4) unimproved property that is classified residential as determined under subdivision
52.233.
52.3 The market value of class 4b property has a class rate of 1.25 percent.
52.4 (c) Class 4bb includes
52.5
52.6residential recreational property; and
52.7
52.8nonhomestead farm classified under subdivision 23, paragraph (b).
52.9 Class 4bb property has the same class rates as class 1a property under subdivision 22.
52.10 Property that has been classified as seasonal residential recreational property at
52.11any time during which it has been owned by the current owner or spouse of the current
52.12owner does not qualify for class 4bb.
52.13 (d) Class 4c property includes:
52.14 (1) except as provided in subdivision 22, paragraph (c), real and personal property
52.15devoted to commercial temporary and seasonal residential occupancy for recreation
52.16purposes, for not more than 250 days in the year preceding the year of assessment. For
52.17purposes of this clause, property is devoted to a commercial purpose on a specific day
52.18if any portion of the property is used for residential occupancy, and a fee is charged for
52.19residential occupancy. Class 4c property under this clause must contain three or more
52.20rental units. A "rental unit" is defined as a cabin, condominium, townhouse, sleeping room,
52.21or individual camping site equipped with water and electrical hookups for recreational
52.22vehicles. A camping pad offered for rent by a property that otherwise qualifies for class
52.234c under this clause is also class 4c under this clause regardless of the term of the rental
52.24agreement, as long as the use of the camping pad does not exceed 250 days. In order for a
52.25property to be classified under this clause, either (i) the business located on the property
52.26must provide recreational activities, at least 40 percent of the annual gross lodging receipts
52.27related to the property must be from business conducted during 90 consecutive days,
52.28and either (A) at least 60 percent of all paid bookings by lodging guests during the year
52.29must be for periods of at least two consecutive nights; or (B) at least 20 percent of the
52.30annual gross receipts must be from charges for providing recreational activities, or (ii) the
52.31business must contain 20 or fewer rental units, and must be located in a township or a city
52.32with a population of 2,500 or less located outside the metropolitan area, as defined under
52.33section
52.34Department of Natural Resources. For purposes of item (i)(A), a paid booking of five or
52.35more nights shall be counted as two bookings. Class 4c property also includes commercial
52.36use real property used exclusively for recreational purposes in conjunction with other class
53.14c property classified under this clause and devoted to temporary and seasonal residential
53.2occupancy for recreational purposes, up to a total of two acres, provided the property is
53.3not devoted to commercial recreational use for more than 250 days in the year preceding
53.4the year of assessment and is located within two miles of the class 4c property with which
53.5it is used. In order for a property to qualify for classification under this clause, the owner
53.6must submit a declaration to the assessor designating the cabins or units occupied for 250
53.7days or less in the year preceding the year of assessment by January 15 of the assessment
53.8year. Those cabins or units and a proportionate share of the land on which they are located
53.9must be designated class 4c under this clause as otherwise provided. The remainder of the
53.10cabins or units and a proportionate share of the land on which they are located will be
53.11designated as class 3a. The owner of property desiring designation as class 4c property
53.12under this clause must provide guest registers or other records demonstrating that the units
53.13for which class 4c designation is sought were not occupied for more than 250 days in the
53.14year preceding the assessment if so requested. The portion of a property operated as a
53.15(1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) other
53.16nonresidential facility operated on a commercial basis not directly related to temporary and
53.17seasonal residential occupancy for recreation purposes does not qualify for class 4c. For
53.18the purposes of this paragraph, "recreational activities" means renting ice fishing houses,
53.19boats and motors, snowmobiles, downhill or cross-country ski equipment; providing
53.20marina services, launch services, or guide services; or selling bait and fishing tackle;
53.21 (2) qualified property used as a golf course if:
53.22 (i) it is open to the public on a daily fee basis. It may charge membership fees or
53.23dues, but a membership fee may not be required in order to use the property for golfing,
53.24and its green fees for golfing must be comparable to green fees typically charged by
53.25municipal courses; and
53.26 (ii) it meets the requirements of section
53.27 A structure used as a clubhouse, restaurant, or place of refreshment in conjunction
53.28with the golf course is classified as class 3a property;
53.29 (3) real property up to a maximum of three acres of land owned and used by a
53.30nonprofit community service oriented organization and not used for residential purposes
53.31on either a temporary or permanent basis, provided that:
53.32 (i) the property is not used for a revenue-producing activity for more than six days
53.33in the calendar year preceding the year of assessment; or
53.34 (ii) the organization makes annual charitable contributions and donations at least
53.35equal to the property's previous year's property taxes and the property is allowed to be
54.1used for public and community meetings or events for no charge, as appropriate to the
54.2size of the facility.
54.3 For purposes of this clause:
54.4 (A) "charitable contributions and donations" has the same meaning as lawful
54.5gambling purposes under section
54.6relating to the payment of taxes, assessments, fees, auditing costs, and utility payments;
54.7 (B) "property taxes" excludes the state general tax;
54.8 (C) a "nonprofit community service oriented organization" means any corporation,
54.9society, association, foundation, or institution organized and operated exclusively for
54.10charitable, religious, fraternal, civic, or educational purposes, and which is exempt from
54.11federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal
54.12Revenue Code; and
54.13 (D) "revenue-producing activities" shall include but not be limited to property or that
54.14portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt
54.15liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling
54.16alley, a retail store, gambling conducted by organizations licensed under chapter 349, an
54.17insurance business, or office or other space leased or rented to a lessee who conducts a
54.18for-profit enterprise on the premises.
54.19 Any portion of the property not qualifying under either item (i) or (ii) is class 3a.
54.20The use of the property for social events open exclusively to members and their guests
54.21for periods of less than 24 hours, when an admission is not charged nor any revenues are
54.22received by the organization shall not be considered a revenue-producing activity.
54.23 The organization shall maintain records of its charitable contributions and donations
54.24and of public meetings and events held on the property and make them available upon
54.25request any time to the assessor to ensure eligibility. An organization meeting the
54.26requirement under item (ii) must file an application by May 1 with the assessor for
54.27eligibility for the current year's assessment. The commissioner shall prescribe a uniform
54.28application form and instructions;
54.29 (4) postsecondary student housing of not more than one acre of land that is owned by
54.30a nonprofit corporation organized under chapter 317A and is used exclusively by a student
54.31cooperative, sorority, or fraternity for on-campus housing or housing located within two
54.32miles of the border of a college campus;
54.33 (5)(i) manufactured home parks as defined in section
54.34excluding manufactured home parks described in section
54.35manufactured home parks as defined in section
54.36section
55.1 (6) real property that is actively and exclusively devoted to indoor fitness, health,
55.2social, recreational, and related uses, is owned and operated by a not-for-profit corporation,
55.3and is located within the metropolitan area as defined in section
55.4 (7) a leased or privately owned noncommercial aircraft storage hangar not exempt
55.5under section
55.6 (i) the land is on an airport owned or operated by a city, town, county, Metropolitan
55.7Airports Commission, or group thereof; and
55.8 (ii) the land lease, or any ordinance or signed agreement restricting the use of the
55.9leased premise, prohibits commercial activity performed at the hangar.
55.10 If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must
55.11be filed by the new owner with the assessor of the county where the property is located
55.12within 60 days of the sale;
55.13 (8) a privately owned noncommercial aircraft storage hangar not exempt under
55.14section
55.15 (i) the land abuts a public airport; and
55.16 (ii) the owner of the aircraft storage hangar provides the assessor with a signed
55.17agreement restricting the use of the premises, prohibiting commercial use or activity
55.18performed at the hangar; and
55.19 (9) residential real estate, a portion of which is used by the owner for homestead
55.20purposes, and that is also a place of lodging, if all of the following criteria are met:
55.21 (i) rooms are provided for rent to transient guests that generally stay for periods
55.22of 14 or fewer days;
55.23 (ii) meals are provided to persons who rent rooms, the cost of which is incorporated
55.24in the basic room rate;
55.25 (iii) meals are not provided to the general public except for special events on fewer
55.26than seven days in the calendar year preceding the year of the assessment; and
55.27 (iv) the owner is the operator of the property.
55.28 The market value subject to the 4c classification under this clause is limited to
55.29five rental units. Any rental units on the property in excess of five, must be valued and
55.30assessed as class 3a. The portion of the property used for purposes of a homestead by the
55.31owner must be classified as class 1a property under subdivision 22;
55.32 (10) real property up to a maximum of three acres and operated as a restaurant
55.33as defined under section
55.34as defined under section
55.35is either devoted to commercial purposes for not more than 250 consecutive days, or
55.36receives at least 60 percent of its annual gross receipts from business conducted during
56.1four consecutive months. Gross receipts from the sale of alcoholic beverages must be
56.2included in determining the property's qualification under subitem (B). The property's
56.3primary business must be as a restaurant and not as a bar. Gross receipts from gift shop
56.4sales located on the premises must be excluded. Owners of real property desiring 4c
56.5classification under this clause must submit an annual declaration to the assessor by
56.6February 1 of the current assessment year, based on the property's relevant information for
56.7the preceding assessment year;
56.8(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used
56.9as a marina, as defined in section
56.10the public and devoted to recreational use for marina services. The marina owner must
56.11annually provide evidence to the assessor that it provides services, including lake or river
56.12access to the public by means of an access ramp or other facility that is either located on
56.13the property of the marina or at a publicly owned site that abuts the property of the marina.
56.14No more than 800 feet of lakeshore may be included in this classification. Buildings used
56.15in conjunction with a marina for marina services, including but not limited to buildings
56.16used to provide food and beverage services, fuel, boat repairs, or the sale of bait or fishing
56.17tackle, are classified as class 3a property; and
56.18(12) real and personal property devoted to noncommercial temporary and seasonal
56.19residential occupancy for recreation purposes.
56.20 Class 4c property has a class rate of 1.5 percent of market value, except that (i) each
56.21parcel of noncommercial seasonal residential recreational property under clause (12)
56.22has the same class rates as class 4bb property, (ii) manufactured home parks assessed
56.23under clause (5), item (i), have the same class rate as class 4b property, and the market
56.24value of manufactured home parks assessed under clause (5), item (ii), has the same class
56.25rate as class 4d property if more than 50 percent of the lots in the park are occupied by
56.26shareholders in the cooperative corporation or association and a class rate of one percent if
56.2750 percent or less of the lots are so occupied, (iii) commercial-use seasonal residential
56.28recreational property and marina recreational land as described in clause (11), has a
56.29class rate of one percent for the first $500,000 of market value, and 1.25 percent for the
56.30remaining market value, (iv) the market value of property described in clause (4) has a
56.31class rate of one percent, (v) the market value of property described in clauses (2), (6), and
56.32(10) has a class rate of 1.25 percent, and (vi) that portion of the market value of property
56.33in clause (9) qualifying for class 4c property has a class rate of 1.25 percent.
56.34 (e) Class 4d property is qualifying low-income rental housing certified to the assessor
56.35by the Housing Finance Agency under section
56.36of the units in the building qualify as low-income rental housing units as certified under
57.1section
57.2of units in the building qualify for class 4d. The remaining portion of the building shall be
57.3classified by the assessor based upon its use. Class 4d also includes the same proportion of
57.4land as the qualifying low-income rental housing units are to the total units in the building.
57.5For all properties qualifying as class 4d, the market value determined by the assessor must
57.6be based on the normal approach to value using normal unrestricted rents.
57.7 (f) The first tier of market value of class 4d property has a class rate of 0.75 percent.
57.8 The remaining value of class 4d property has a class rate of 0.25 percent. For the purposes
57.9of this paragraph, the "first tier of market value of class 4d property" means the market
57.10value of each housing unit up to the first tier limit. For the purposes of this paragraph, all
57.11class 4d property value must be assigned to individual housing units. The first tier limit is
57.12$100,000 for assessment year 2014. For subsequent years, the limit is adjusted each year
57.13by the average statewide change in estimated market value of property classified as class 4a
57.14and 4d under this section for the previous assessment year, excluding valuation change due
57.15to new construction, rounded to the nearest $1,000, provided, however, that the limit may
57.16never be less than $100,000. Beginning with assessment year 2015, the commissioner of
57.17revenue must certify the limit for each assessment year by November 1 of the previous year.
57.18EFFECTIVE DATE.This section is effective beginning with assessment year 2014.
57.19 Sec. 19. Minnesota Statutes 2012, section 279.01, subdivision 1, is amended to read:
57.20 Subdivision 1. Due dates; penalties. Except as provided in
57.21 3
57.22property tax statement, whichever is later, a penalty accrues and thereafter is charged upon
57.23all unpaid taxes on real estate on the current lists in the hands of the county treasurer. The
57.24penalty is at a rate of two percent on homestead property until May 31 and four percent on
57.25June 1. The penalty on nonhomestead property is at a rate of four percent until May 31 and
57.26eight percent on June 1. This penalty does not accrue until June 1 of each year, or 21 days
57.27after the postmark date on the envelope containing the property tax statements, whichever
57.28is later, on commercial use real property used for seasonal residential recreational purposes
57.29and classified as class 1c or 4c, and on other commercial use real property classified as
57.30class 3a, provided that over 60 percent of the gross income earned by the enterprise on the
57.31class 3a property is earned during the months of May, June, July, and August. In order for
57.32the first half of the tax due on class 3a property to be paid after May 15 and before June 1,
57.33or 21 days after the postmark date on the envelope containing the property tax statement,
57.34whichever is later, without penalty, the owner of the property must attach an affidavit
57.35to the payment attesting to compliance with the income provision of this subdivision.
58.1Thereafter, for both homestead and nonhomestead property, on the first day of each month
58.2beginning July 1, up to and including October 1 following, an additional penalty of one
58.3percent for each month accrues and is charged on all such unpaid taxes provided that if the
58.4due date was extended beyond May 15 as the result of any delay in mailing property tax
58.5statements no additional penalty shall accrue if the tax is paid by the extended due date. If
58.6the tax is not paid by the extended due date, then all penalties that would have accrued if
58.7the due date had been May 15 shall be charged. When the taxes against any tract or lot
58.8exceed $100, one-half thereof may be paid prior to May 16 or 21 days after the postmark
58.9date on the envelope containing the property tax statement, whichever is later; and, if so
58.10paid, no penalty attaches; the remaining one-half may be paid at any time prior to October
58.1116 following, without penalty; but, if not so paid, then a penalty of two percent accrues
58.12thereon for homestead property and a penalty of four percent on nonhomestead property.
58.13Thereafter, for homestead property, on the first day of November an additional penalty of
58.14four percent accrues and on the first day of December following, an additional penalty of
58.15two percent accrues and is charged on all such unpaid taxes. Thereafter, for nonhomestead
58.16property, on the first day of November and December following, an additional penalty of
58.17four percent for each month accrues and is charged on all such unpaid taxes. If one-half of
58.18such taxes are not paid prior to May 16 or 21 days after the postmark date on the envelope
58.19containing the property tax statement, whichever is later, the same may be paid at any time
58.20prior to October 16, with accrued penalties to the date of payment added, and thereupon
58.21no penalty attaches to the remaining one-half until October 16 following.
58.22 This section applies to payment of personal property taxes assessed against
58.23improvements to leased property, except as provided by section
58.24 A county may provide by resolution that in the case of a property owner that has
58.25multiple tracts or parcels with aggregate taxes exceeding $100, payments may be made in
58.26installments as provided in this subdivision.
58.27 The county treasurer may accept payments of more or less than the exact amount of
58.28a tax installment due. Payments must be applied first to the oldest installment that is due
58.29but which has not been fully paid. If the accepted payment is less than the amount due,
58.30payments must be applied first to the penalty accrued for the year or the installment being
58.31paid. Acceptance of partial payment of tax does not constitute a waiver of the minimum
58.32payment required as a condition for filing an appeal under section
58.33nor does it affect the order of payment of delinquent taxes under section
58.34 Sec. 20. Minnesota Statutes 2012, section 279.01, is amended by adding a subdivision
58.35to read:
59.1 Subd. 5. Federal active service exception. In the case of a homestead property
59.2owned by an individual who is on federal active service, as defined in section 190.05,
59.3subdivision 5c, as a member of the National Guard or a reserve component, a four-month
59.4grace period is granted for complying with the due dates imposed by subdivision 1. During
59.5this period, no late fees or penalties shall accrue against the property. The due date for
59.6property taxes owed under this chapter for an individual covered by this subdivision shall
59.7be September 15 for taxes due on May 15, and February 15 of the following year for taxes
59.8due on October 15. A taxpayer making a payment under this subdivision must accompany
59.9the payment with a signed copy of the taxpayer's orders or form DD214 showing the
59.10dates of active service which clearly indicate that the taxpayer was in active service as a
59.11member of the National Guard or a reserve component on the date the payment was due.
59.12This grace period applies to all homestead property owned by individuals on federal active
59.13service, as herein defined, for all of that property's due dates which fall on a day that is
59.14included in the taxpayer's federal active service.
59.15 Sec. 21. Minnesota Statutes 2012, section 279.02, is amended to read:
59.16279.02 DUTIES OF COUNTY AUDITOR AND TREASURER.
59.17 Subdivision 1. Delinquent property; rates. On the first business day in January, of
59.18each year, the county treasurer shall return the tax lists on hand to the county auditor, who
59.19shall compare the same with the statements receipted for by the treasurer on file in the
59.20auditor's office and each tract or lot of real property against which the taxes, or any part
59.21thereof, remain unpaid, shall be deemed delinquent, and thereupon an additional penalty
59.22of two percent on the amount of the original tax remaining unpaid shall immediately
59.23accrue and thereafter be charged upon all such delinquent taxes; and any auditor who
59.24shall make out and deliver any statement of delinquent taxes without including therein
59.25the penalties imposed by law, and any treasurer who shall receive payment of such taxes
59.26without including in such payment all items as shown on the auditor's statement, shall be
59.27liable to the county for the amounts of any items omitted.
59.28 Subd. 2. Federal active service exception. Notwithstanding subdivision 1, a
59.29homestead property owned by an individual who is on federal active service, as defined
59.30in section 190.05, subdivision 5c, as a member of the National Guard or a reserve
59.31component, shall not be deemed delinquent under this section if the due dates imposed
59.32under section 279.01 fall on a day in which the individual was on federal active service.
59.33 Sec. 22. Minnesota Statutes 2012, section 279.37, subdivision 1a, is amended to read:
60.1 Subd. 1a. Class 3a property. (a) The delinquent taxes upon a parcel of property
60.2which was classified class 3a, for the previous year's assessment
60.3
60.4confession of judgment with the approval of the county auditor. Property qualifying under
60.5this subdivision shall be subject to the same provisions as provided in this section except
60.6as provided in paragraphs (b) to
60.7 (b) Current year taxes and penalty due at the time the confession of judgment
60.8is entered must be paid.
60.9 (c) The down payment must include all special assessments due in the current tax
60.10year, all delinquent special assessments, and 20 percent of the ad valorem tax, penalties,
60.11and interest accrued against the parcel. The balance remaining is payable in four equal
60.12annual installments. A municipality as defined in section 429.011, cities of the first class,
60.13and other special assessment authorities, that have certified special assessments against
60.14any parcel of property, may, through resolution, waive the requirement of payment of all
60.15current and delinquent special assessments at the time the confession is entered. If the
60.16municipality, city, or authority grants the waiver, 100 percent of all current year taxes,
60.17special assessments, and penalties due at the time, along with 20 percent of all delinquent
60.18taxes, special assessments, penalties, interest, and fees must be paid. The balance
60.19remaining shall be subject to and included in the installment plan.
60.20(d) When there are current and delinquent special assessments certified and billed
60.21against a parcel, the assessment authority or municipality as defined in section 429.011
60.22may abate under section 375.192, subdivision 2, all special assessments and the penalty
60.23and interest affiliated with the special assessments, and reassess the special assessments,
60.24penalties, and interest accrued thereon, under section 429.071, subdivision 2. The
60.25municipality shall notify the county auditor of its intent to reassess as a precondition
60.26to the entry of the confession of judgment. Upon the notice to abate and reassess, the
60.27municipality shall, through resolution, notify the county auditor to remove all current
60.28and delinquent special assessments and the accrued penalty and interest on the special
60.29assessments, and the payment of all or a portion of the current and delinquent assessments
60.30shall not be required as part of the down payment due at the time the confession of
60.31judgment is entered in accordance with paragraph (c).
60.32
60.34rate is subject to change each year on the unpaid balance in the manner provided in section
61.1(f) The county auditor may require conditions on properties including, but not
61.2limited to, environmental remediation action plan requirements, restrictions, or covenants,
61.3when considering a request for approval of eligibility for composition into a confession of
61.4judgment for delinquent taxes upon a parcel of property which was classified class 3a for
61.5the previous year's assessment.
61.6 Sec. 23. Minnesota Statutes 2012, section 279.37, subdivision 2, is amended to read:
61.7 Subd. 2. Installment payments. The owner of any such parcel, or any person to
61.8whom the right to pay taxes has been given by statute, mortgage, or other agreement, may
61.9make and file with the county auditor of the county in which the parcel is located a written
61.10offer to pay the current taxes each year before they become delinquent, or to contest the
61.11taxes under Minnesota Statutes 1941, sections
61.12judgment for the amount provided, as determined by the county auditor. By filing the
61.13offer, the owner waives all irregularities in connection with the tax proceedings affecting
61.14the parcel and any defense or objection which the owner may have to the proceedings, and
61.15also waives the requirements of any notice of default in the payment of any installment or
61.16interest to become due pursuant to the composite judgment to be so entered. Unless the
61.17property is subject to subdivision 1a, with the offer, the owner shall (i) tender one-tenth of
61.18the amount of the delinquent taxes, costs, penalty, and interest, and
61.19current year taxes and penalty due at the time the confession of judgment is entered. In the
61.20offer, the owner shall agree to pay the balance in nine equal installments, with interest as
61.21provided in section
61.22to time, on or before December 31 of each year following the year in which judgment
61.23was confessed. The offer must be substantially as follows:
61.24"To the court administrator of the district court of ........... county, I, .....................,
61.25am the owner of the following described parcel of real estate located in ....................
61.26county, Minnesota:
61.27.............................. Upon that real estate there are delinquent taxes for the year ........., and
61.28prior years, as follows: (here insert year of delinquency and the total amount of delinquent
61.29taxes, costs, interest, and penalty). By signing this document I offer to confess judgment in
61.30the sum of $...... and waive all irregularities in the tax proceedings affecting these taxes and
61.31any defense or objection which I may have to them, and direct judgment to be entered for
61.32the amount stated above, minus the sum of $............, to be paid with this document, which
61.33is one-tenth or one-fifth of the amount of the taxes, costs, penalty, and interest stated above.
61.34I agree to pay the balance of the judgment in nine or four equal, annual installments, with
61.35interest as provided in section
62.1unpaid. I agree to pay the installments and interest on or before December 31 of each year
62.2following the year in which this judgment is confessed and current taxes each year before
62.3they become delinquent, or within 30 days after the entry of final judgment in proceedings
62.4to contest the taxes under Minnesota Statutes, sections
62.5Dated .............., ......."
62.6 Sec. 24. Minnesota Statutes 2012, section 281.14, is amended to read:
62.7281.14 EXPIRATION OF TIME FOR REDEMPTION.
62.8The time for redemption from any tax sale, whether made to the state or to a private
62.9person, shall not expire until notice of expiration of redemption, as provided in section
62.10
62.11 Sec. 25. Minnesota Statutes 2012, section 281.17, is amended to read:
62.12281.17 PERIOD FOR REDEMPTION.
62.13Except for properties for which the period of redemption has been limited under
62.14sections
62.15The period of redemption for all lands sold to the state at a tax judgment sale shall
62.16be three years from the date of sale to the state of Minnesota
62.17
62.18
62.19
62.20
62.21
62.22The period of redemption for homesteaded lands as defined in section
62.23subdivision 22
62.24article 6, section 4, and sold to the state at a tax judgment sale is three years from the date
62.25of sale. The period of redemption for all lands located in a targeted neighborhood as
62.26defined in Laws 1987, chapter 386, article 6, section 4, except (1) homesteaded lands as
62.27defined in section
62.28after June 30, 1991, but before July 1, 1996, lands located in the Loring Park targeted
62.29neighborhood on which a notice of lis pendens has been served, and sold to the state at a
62.30tax judgment sale is one year from the date of sale.
62.31The period of redemption for all real property constituting a mixed municipal solid
62.32waste disposal facility that is a qualified facility under section
62.33one year from the date of the sale to the state of Minnesota.
63.1
63.2
63.3
63.4
63.5
63.6
63.7 Sec. 26. Minnesota Statutes 2012, section 287.05, is amended by adding a subdivision
63.8to read:
63.9 Subd. 10. Hennepin and Ramsey Counties. For properties located in Hennepin
63.10and Ramsey Counties, the county may impose an additional mortgage registry tax as
63.11defined in sections 383A.80 and 383B.80.
63.12EFFECTIVE DATE.This section is effective for deeds and mortgages
63.13acknowledged on or after July 1, 2013.
63.14 Sec. 27. [287.40] HENNEPIN AND RAMSEY COUNTIES.
63.15 For properties located in Hennepin and Ramsey Counties, the county may impose an
63.16additional deed tax as defined in sections 383A.80 and 383B.80.
63.17EFFECTIVE DATE.This section is effective for deeds and mortgages
63.18acknowledged on or after July 1, 2013.
63.19 Sec. 28. Minnesota Statutes 2012, section 383A.80, subdivision 4, is amended to read:
63.20 Subd. 4. Expiration. The authority to impose the tax under this section expires
63.21January 1,
63.22EFFECTIVE DATE.This section is effective for all deeds and mortgages
63.23acknowledged on or after July 1, 2013.
63.24 Sec. 29. Minnesota Statutes 2012, section 383B.80, subdivision 4, is amended to read:
63.25 Subd. 4. Expiration. The authority to impose the tax under this section expires
63.26January 1,
63.27EFFECTIVE DATE.This section is effective for all deeds and mortgages
63.28acknowledged on or after July 1, 2013.
63.29 Sec. 30. Minnesota Statutes 2012, section 428A.101, is amended to read:
64.1428A.101 DEADLINE FOR SPECIAL SERVICE DISTRICT UNDER
64.2GENERAL LAW.
64.3The establishment of a new special service district after June 30,
64.4enactment of a special law authorizing the establishment.
64.5EFFECTIVE DATE.This section is effective the day following final enactment.
64.6 Sec. 31. Minnesota Statutes 2012, section 428A.21, is amended to read:
64.7428A.21 DEADLINE FOR HOUSING IMPROVEMENT DISTRICTS UNDER
64.8GENERAL LAW.
64.9The establishment of a new housing improvement area after June 30,
64.10requires enactment of a special law authorizing the establishment of the area.
64.11EFFECTIVE DATE.This section is effective the day following final enactment.
64.12 Sec. 32. Minnesota Statutes 2012, section 473F.08, subdivision 3a, is amended to read:
64.13 Subd. 3a. Bloomington computation. (a) Beginning in 1987 and each subsequent
64.14year through 1998, the city of Bloomington shall determine the interest payments for that
64.15year for the bonds which have been sold for the highway improvements pursuant to Laws
64.161986, chapter 391, section 2, paragraph (g). Effective for property taxes payable in 1988
64.17through property taxes payable in 1999, after the Hennepin County auditor has computed
64.18the areawide portion of the levy for the city of Bloomington pursuant to subdivision 3,
64.19clause (a), the auditor shall annually add a dollar amount to the city of Bloomington's
64.20areawide portion of the levy equal to the amount which has been certified to the auditor
64.21by the city of Bloomington for the interest payments for that year for the bonds which
64.22were sold for highway improvements. The total areawide portion of the levy for the city
64.23of Bloomington including the additional amount for interest repayment certified pursuant
64.24to this subdivision shall be certified by the Hennepin County auditor to the administrative
64.25auditor pursuant to subdivision 5. The Hennepin County auditor shall distribute to the
64.26city of Bloomington the additional areawide portion of the levy computed pursuant to this
64.27subdivision at the same time that payments are made to the other counties pursuant to
64.28subdivision 7a. For property taxes payable from the year 2009 through
64.29Hennepin County auditor shall adjust Bloomington's contribution to the areawide gross tax
64.30capacity upward each year by a value equal to ten percent of the total additional areawide
64.31levy distributed to Bloomington under this subdivision from 1988 to 1999, divided by the
64.32areawide tax rate for taxes payable in the previous year.
65.1(b) For property taxes payable from 2015 through 2018, the administrative auditor
65.2shall increase the areawide net tax capacity each year by an amount equal to ten percent of
65.3the total additional areawide levy distributed to Bloomington under this subdivision from
65.41988 to 1999, divided by the areawide tax rate for taxes payable in the previous year. The
65.5administrative auditor must notify the commissioner of revenue of the amount determined
65.6by multiplying the increase in the areawide net tax capacity by the areawide tax rate
65.7determined under subdivision 5. The commissioner of revenue must pay the amount
65.8determined each payable year to the administrative auditor in two installments on July 10
65.9and November 10, for distribution and settlement as provided in subdivision 7a.
65.10(c) A sum sufficient to meet the obligations under this subdivision is annually
65.11appropriated from the general fund to the commissioner of revenue.
65.12EFFECTIVE DATE.This section is effective beginning with taxes payable in 2015.
65.13 Sec. 33. Laws 1988, chapter 645, section 3, as amended by Laws 1999, chapter 243,
65.14article 6, section 9, Laws 2000, chapter 490, article 6, section 15, and Laws 2008, chapter
65.15154, article 2, section 30, is amended to read:
65.16 Sec. 3. TAX; PAYMENT OF EXPENSES.
65.17 (a) The tax levied by the hospital district under Minnesota Statutes, section
65.18must not be levied at a rate that exceeds the amount authorized to be levied under that
65.19section. The proceeds of the tax may be used for all purposes of the hospital district,
65.20except as provided in paragraph (b).
65.21 (b) 0.015 percent of taxable market value of the tax in paragraph (a) may be used
65.22
65.23
65.24 (1) ambulance acquisitions for the Cook ambulance service and the Orr ambulance
65.25service
65.26 (2) attached and portable equipment for use in and for the ambulances; and
65.27 (3) parts and replacement parts for maintenance and repair of the ambulances.
65.28The money may not be used for administrative, operation, or salary expenses.
65.29 (c) The part of the levy referred to in paragraph (b) must be administered by the
65.30Cook Hospital and passed on in equal amounts directly to the Cook area ambulance
65.31service board and the city of Orr to be
65.32
65.33purposes in paragraph (b).
65.34 Sec. 34. Laws 1999, chapter 243, article 6, section 11, is amended to read:
66.1 Sec. 11. CEMETERY LEVY FOR SAWYER BY CARLTON COUNTY.
66.2
66.3Carlton county board of commissioners may annually levy in and for the unorganized
66.4
66.5
66.6
66.7
66.8EFFECTIVE DATE; LOCAL APPROVAL.This section applies to taxes
66.9payable in 2014 and thereafter, and is effective the day after the Carlton County Board
66.10of Commissioners and its chief clerical officer timely complete their compliance with
66.11Minnesota Statutes, section 645.021, subdivisions 2 and 3.
66.12 Sec. 35. Laws 2008, chapter 366, article 5, section 33, the effective date, is amended to
66.13read:
66.14EFFECTIVE DATE.This section is effective for taxes levied in 2008, payable in
66.152009, and is repealed effective for taxes levied in
66.16and thereafter.
66.17EFFECTIVE DATE.This section is effective beginning with taxes payable in 2014.
66.18 Sec. 36. Laws 2009, chapter 88, article 2, section 46, subdivision 1, is amended to read:
66.19 Subdivision 1. Agreement. The city of Cloquet and Perch Lake Township, by
66.20resolution of each of their governing bodies, may establish the Cloquet Area Fire and
66.21Ambulance Taxing District for the purpose of providing fire
66.22or both, throughout the district. In this section, "municipality" means home rule charter
66.23and statutory cities, towns, and Indian tribes. The district may exercise all the powers
66.24relating to fire and ambulance services of the municipalities that receive fire
66.25 ambulance services, or both, from the district. Upon application, any other municipality
66.26
66.27with the agreement of the municipalities that comprise the district at the time of its
66.28application to join.
66.29 Sec. 37. Laws 2009, chapter 88, article 2, section 46, subdivision 3, is amended to read:
66.30 Subd. 3. Tax. The district board may impose a property tax on taxable property
66.31
66.32total amount of the levy that is attributable to the cost of providing fire services and the cost
67.1of providing ambulance services within the primary service area. For those municipalities
67.2that only receive ambulance services, the costs for the provision of ambulance services
67.3shall be levied against taxable property within those municipalities at a rate necessary not
67.4to exceed 0.019 percent of the estimated market value. For those municipalities that
67.5receive both fire and ambulance services, the tax shall be imposed at a rate that does not
67.6exceed 0.2835 percent of
67.7
67.8
67.9
67.10
67.11
67.12When a member municipality opts to receive fire service from the district or an
67.13additional municipality becomes a member of the district, the
67.14
67.15the board and added to the maximum levy amount.
67.16Each county auditor of a county that contains a municipality subject to the tax under
67.17this section must collect the tax and pay it to the Fire and Ambulance Special Taxing
67.18District. The district may also impose other fees or charges as allowed by law for the
67.19provision of fire and ambulance services.
67.20 Sec. 38. Laws 2010, chapter 389, article 1, section 12, the effective date, is amended to
67.21read:
67.22EFFECTIVE DATE.This section is effective for assessment
67.23
67.24EFFECTIVE DATE.This section is effective for assessment year 2012 and
67.25thereafter.
67.26 Sec. 39. MINNEAPOLIS AND ST. PAUL ENTERTAINMENT FACILITIES
67.27COORDINATION STUDY; APPROPRIATION.
67.28 Subdivision 1. Statement of purpose. The legislature finds that the national
67.29economic structure of professional sports financing, as directly or indirectly sanctioned by
67.30federal law, compels state and local governments in smaller metropolitan areas, such as
67.31Minneapolis and St. Paul, to help finance the construction and operation of venues for
67.32professional sports franchises as a condition of hosting these franchises. The burden and
67.33risk associated with providing this assistance justifies authorizing and directing the cities
68.1and any associated private entities to enter into arrangements that attempt to maximize
68.2the combined revenues of these facilities from direct users, including those unrelated to
68.3professional sports, such as, but not limited to, joint booking of concerts and other events,
68.4to minimize the cost and risk to general taxpayers. Any efforts to put in place such joint
68.5marketing, promotion, and scheduling arrangements by the cities or associated private
68.6entities, in the view of the legislature, is a petition for enactment of this or subsequent
68.7enabling legislation under the Noerr-Pennington doctrine or state action under the Parker
68.8antitrust doctrine. This legislation and any resulting arrangements are intended to minimize
68.9the potential burden on general taxpayers of financing and operation of the arenas.
68.10 Subd. 2. Study and report. On or before February 1, 2014, the cities of
68.11Minneapolis and St. Paul, in consultation with representatives of the primary professional
68.12sports team tenant of each arena, shall study and report to the legislature on establishing
68.13a joint governing structure to be responsible for the joint administration, financing, and
68.14operations of the facilities and the possible effects of joint governance on the finances of
68.15each arena and each city. The commissioner of administration, in consultation with the
68.16two cities, shall contract with an independent consultant to conduct all or a portion of the
68.17study. The cities of Minneapolis and St. Paul together shall pay one-half of the cost of the
68.18consultant contract. The commissioner may accept funding from other public entities and
68.19private organizations to pay for the contract. The study must:
68.20 (1) examine the current finances of each arena including past and projected costs and
68.21revenues, projected capital improvements, and the current and projected impact of each
68.22arena on each city's general fund;
68.23 (2) determine the impact of joint governance on the future finances of each city;
68.24 (3) examine joint scheduling, marketing, and promotion of events at the arenas,
68.25either within a joint governance structure or as separate entities; and
68.26 (4) estimate the amount of funding, if any, that would be required to operate and
68.27maintain the arenas under a joint governing structure.
68.28 Subd. 3. Appropriation. Up to $50,000 is appropriated to the commissioner of
68.29administration from the general fund for fiscal year 2014 to pay up to one-half of the costs
68.30of the consultant contract under subdivision 2.
68.31EFFECTIVE DATE.This section is effective the day following final enactment.
68.32 Sec. 40. REIMBURSEMENT FOR PROPERTY TAX ABATEMENTS;
68.33APPROPRIATION.
69.1 Subdivision 1. Reimbursement. The commissioner of revenue shall reimburse
69.2taxing jurisdictions for property tax abatements granted in Hennepin County under Laws
69.32011, First Special Session chapter 7, article 5, section 13, notwithstanding the time limits
69.4contained in that section. The reimbursements must be made to each taxing jurisdiction
69.5pursuant to the certification of the Hennepin County auditor.
69.6 Subd. 2. Appropriation. In fiscal year 2014 only, $336,000 is appropriated to the
69.7commissioner of revenue from the general fund to make the payments required in this
69.8section.
69.9EFFECTIVE DATE.This section is effective the day following final enactment.
69.10 Sec. 41. ST. PAUL BALLPARK PROPERTY TAX EXEMPTION; SPECIAL
69.11ASSESSMENT.
69.12Any real or personal property acquired, owned, leased, controlled, used, or occupied
69.13by the city of St. Paul for the primary purpose of providing a ballpark for a minor league
69.14baseball team is declared to be acquired, owned, leased, controlled, used, and occupied for
69.15public, governmental, and municipal purposes, and is exempt from ad valorem taxation
69.16by the state or any political subdivision of the state, provided that the properties are
69.17subject to special assessments levied by a political subdivision for a local improvement in
69.18amounts proportionate to and not exceeding the special benefit received by the properties
69.19from the improvement. In determining the special benefit received by the properties, no
69.20possible use of any of the properties in any manner different from their intended use
69.21for providing a minor league ballpark at the time may be considered. Notwithstanding
69.22Minnesota Statutes, section
69.23subject to a lease or use agreement between the city and another person for uses related to
69.24the purposes of the operation of the ballpark and related parking facilities is exempt from
69.25taxation regardless of the length of the lease or use agreement. This section, insofar as it
69.26provides an exemption or special treatment, does not apply to any real property that is
69.27leased for residential, business, or commercial development or other purposes different
69.28from those necessary to the provision and operation of the ballpark.
69.29EFFECTIVE DATE.This section is effective the day after compliance by the
69.30governing body of the city of St. Paul with Minnesota Statutes, section 645.021,
69.31subdivisions 2 and 3.
69.32 Sec. 42. PUBLIC ENTERTAINMENT FACILITY; PROPERTY TAX
69.33EXEMPTION; SPECIAL ASSESSMENT.
70.1Any real or personal property acquired, owned, leased, controlled, used, or occupied
70.2by the city of Minneapolis for the primary purpose of providing an arena for a professional
70.3basketball team is declared to be acquired, owned, leased, controlled, used, and occupied
70.4for public, governmental, and municipal purposes, and is exempt from ad valorem taxation
70.5by the state or any political subdivision of the state, provided that the properties are
70.6subject to special assessments levied by a political subdivision for a local improvement in
70.7amounts proportionate to and not exceeding the special benefit received by the properties
70.8from the improvement. In determining the special benefit received by the properties, no
70.9possible use of any of the properties in any manner different from their intended use for
70.10providing a professional basketball arena at the time may be considered. Notwithstanding
70.11Minnesota Statutes, section
70.12subject to a lease or use agreement between the city and another person for uses related to
70.13the purposes of the operation of the arena and related parking facilities is exempt from
70.14taxation regardless of the length of the lease or use agreement. This section, insofar as
70.15it provides an exemption or special treatment, does not apply to any real property that
70.16is leased for residential, business, or commercial development, or for other purposes
70.17different from those necessary to the provision and operation of the arena.
70.18EFFECTIVE DATE.This section is effective the day after compliance by the
70.19governing body of the city of Minneapolis with Minnesota Statutes, section 645.021,
70.20subdivisions 2 and 3.
70.21 Sec. 43. PUBLIC ENTERTAINMENT FACILITY; CONSTRUCTION
70.22MANAGER AT RISK.
70.23(a) For any real or personal property acquired, owned, leased, controlled, used, or
70.24occupied by the city of Minneapolis for the primary purpose of providing an arena for
70.25a professional basketball team, the city of Minneapolis may contract for construction,
70.26materials, supplies, and equipment in accordance with Minnesota Statutes, section
70.27471.345, except that the city may employ or contract with persons, firms, or corporations
70.28to perform one or more or all of the functions of an engineer, architect, construction
70.29manager, or program manager with respect to all or any part of a project to renovate,
70.30refurbish, and remodel the arena under either the traditional design-bid-build plan or
70.31construction manager at risk plan, or a combination thereof.
70.32(b) The city may prepare a request for proposals for one or more of the functions
70.33described in paragraph (a). The request must be published in a newspaper of general
70.34circulation. The city may prequalify offerors by issuing a request for qualifications, in
71.1advance of the request for proposals, and select a short list of responsible offerors to
71.2submit proposals.
71.3(c) As provided in the request for proposals, the city may conduct discussions and
71.4negotiations with responsible offerors in order to determine which proposal is most
71.5advantageous to the city and to negotiate the terms of an agreement. In conducting
71.6discussions, there shall be no disclosure of any information derived from proposals
71.7submitted by competing offerors and the content of all proposals is nonpublic data under
71.8Minnesota Statutes, chapter 13, until such time as a notice to award a contract is given
71.9by the city.
71.10(d) Upon agreement on the guaranteed maximum price, the construction manager
71.11or program manager may enter into contracts with subcontractors for labor, materials,
71.12supplies, and equipment for the renovation project through the process of public bidding,
71.13except that the construction manager or program manager may, with the consent of the city:
71.14(1) narrow the listing of eligible bidders to those that the construction manager
71.15or program manager determines to possess sufficient expertise to perform the intended
71.16functions;
71.17(2) award contracts to the subcontractors that the construction manager or program
71.18manager determines provide the best value under a request for proposals, as described in
71.19Minnesota Statutes, section 16C.28, subdivision 1, paragraph (a), clause (2), that are not
71.20required to be the lowest responsible bidder; and
71.21(3) for work the construction manager or program manager determines to be
71.22critical to the completion schedule, perform work with its own forces without soliciting
71.23competitive bids or proposals, if the construction manager or program manager provides
71.24evidence of competitive pricing.
71.25EFFECTIVE DATE.This section is effective the day after compliance by the
71.26governing body of the city of Minneapolis with Minnesota Statutes, section 645.021,
71.27subdivisions 2 and 3.
71.28 Sec. 44. EXTENSION OF PROPERTY TAX DUE DATE; COMMERCIAL
71.29SEASONAL RECREATIONAL PROPERTIES.
71.30Notwithstanding the provisions of Minnesota Statutes, section 279.01, subdivision
71.311, for taxes payable in 2013 only, the penalty on first-half property taxes does not accrue
71.32until June 15 on commercial use real property used for seasonal residential recreational
71.33purposes and classified as class 1c or 4c, and on other commercial use real property
71.34classified as class 3a, provided that over 60 percent of the gross income earned by the
71.35enterprise on the class 3a property is earned during the months of May, June, July, and
72.1August. In order for the first half of the tax due on class 3a property to be paid after May
72.215 and before June 15 without penalty, the owner of the property must attach an affidavit
72.3to the payment attesting to compliance with the income provision of this subdivision.
72.4EFFECTIVE DATE.This section is effective the day following final enactment.
72.5 Sec. 45. REPORT ON CLASS 4D TIER STRUCTURE.
72.6The commissioners of revenue and housing finance shall report to the legislature
72.7by January 31, 2015, on the implementation of a second tier of market value for class 4d
72.8property under Minnesota Statutes, section 273.13, subdivision 25, paragraph (f). The
72.9report shall include the number of class 4d properties subject to the second tier of market
72.10value for taxes payable in 2015 and the tax impact of the application of the second tier
72.11of market value. The report shall also include an analysis of the characteristics of the
72.12properties to which the second tier of market value applies, such as location, building
72.13type, and number of units.
72.14EFFECTIVE DATE.This section is effective July 1, 2013.
72.15 Sec. 46. REPORT AND STUDY ON CERTAIN PROPERTY USED IN
72.16BUSINESS AND PRODUCTION; ASSESSMENT MORATORIUM.
72.17 Subdivision 1. Study and report. (a) In order to facilitate a legislative review of
72.18property tax assessment procedures for facilities used in the production of biofuels, wine,
72.19beer, distilled beverages, and dairy products, and the development of standards and criteria
72.20for determining the taxable status of these facilities, the commissioner of revenue must
72.21conduct a study and report the findings of the study. The study must:
72.22(1) include a detailed survey of counties identifying the components and tax status
72.23of biofuel facilities;
72.24(2) identify the function of components in facilities of the affected industries;
72.25(3) consider the taxability for certain components related to size, function, and use;
72.26(4) develop recommendations for assessment guidelines and policies for facilities of
72.27the affected industries; and
72.28(5) identify possible impacts to state and local taxes resulting from study
72.29recommendations.
72.30(b) The commissioner shall request the involvement and participation of
72.31stakeholders, including the affected industries, the assessment community, and others
72.32identified by the commissioner.
73.1(c) The commissioner shall report the findings to the chairs of the house of
73.2representatives and senate committees with jurisdiction over taxes, agriculture, and
73.3economic development as well as the commissioners of agriculture and employment and
73.4economic development by February 1, 2014.
73.5 Subd. 2. Moratorium on changes in assessment practices. (a) For the 2013 and
73.62014 assessments, assessors must continue to use assessment practices or policies in effect
73.7in that county on January 2, 2012, for determining the taxable status of property used in
73.8the production of biofuels, wine, beer, distilled beverages, or dairy products.
73.9(b) An assessor must not change the taxable status of any existing property described
73.10in paragraph (a) from its status on January 2, 2012, unless the change is due to a change in
73.11the use of property, or to correct an error. For taxable properties, the assessor may change
73.12the estimated market value of the property and add value for any new construction that
73.13would have been taxable under practices and policies in place on January 2, 2012.
73.14(c) This subdivision expires on December 31, 2014. Any changes to the taxable
73.15status of the properties in paragraph (a) resulting from the study will not be effective
73.16until the 2015 assessment.
73.17 Sec. 47. PROPERTY TAX SAVINGS REPORT.
73.18(a) In addition to the certification of its proposed property tax levy under Minnesota
73.19Statutes, section 275.065, each city that has a population over 500 and each county shall
73.20also include the amount of sales and use tax paid, or was estimated to be paid, in 2012.
73.21(b) At the time the notice of the proposed property taxes is mailed as required under
73.22Minnesota Statutes, section 275.065, subdivision 3, the county treasurer shall also include
73.23a separate statement providing a list of sales and use tax certified by the county and cities
73.24within their jurisdiction.
73.25(c) At the public hearing required under Minnesota Statutes, section 275.065,
73.26subdivision 3, the county and city must discuss the estimated savings realized to their
73.27budgets that resulted from the sales tax exemption authorized under Minnesota Statutes,
73.28section 297A.70, subdivision 2, and how those savings will be used for property tax levy
73.29reductions, fee reductions, and other purposes as deemed appropriate.
73.30Reasonable costs of preparing the notice required in this section must be apportioned
73.31between taxing jurisdictions as follows:
73.32(1) one-half is allocated to the county; and
73.33(2) one-half is allocated among the cities.
74.1The amount allocated in clause (2) must be further apportioned among all the cities
74.2in the proportion that the number of parcels in the city bears to the number of parcels in all
74.3the cities that have populations over 500.
74.4EFFECTIVE DATE.This section is effective the day following final enactment,
74.5for taxes levied in 2013 and payable in 2014.
74.6 Sec. 48. LEVY LIMITS FOR TAXES LEVIED IN 2013.
74.7 Subdivision 1. Population. "Population" means the population for the local
74.8governmental unit as established by the last federal census, by a census taken under
74.9section Minnesota Statutes, section 275.14, or by an estimate made by the metropolitan
74.10council or by the state demographer under Minnesota Statutes, section 4A.02, whichever
74.11is most recent as to the stated date of the count or estimate up to and including June 1
74.12of the current levy year.
74.13 Subd. 2. Local government unit. "Local governmental unit" means a county with a
74.14population greater than 5,000, or a statutory or home rule charter city with a population
74.15greater than 2,500.
74.16 Subd. 3. Levy limit base. "Levy limit base" for a local governmental unit for levy
74.17year 2013 means the sum of its certified net tax capacity levy plus the total of aids and
74.18reimbursements that the local governmental unit is certified to receive under Minnesota
74.19Statutes, sections 477A.011 to 477A.014, minus any amounts that would qualify as a
74.20special levy under Minnesota Statutes, section 275.70, subdivision 5, clauses (1) to (4) and
74.21(7), for taxes levied in 2011 or 2012, whichever is greater. The levy limit base must be
74.22increased by three percent.
74.23 Subd. 4. Property tax levy limit. For taxes levied in 2013, the net tax capacity
74.24levy limit for a local governmental unit is equal to its levy limit base determined under
74.25subdivision 3 plus any additional levy authorized under Minnesota Statutes, section
74.26275.73, which is levied against net tax capacity, reduced by the total amount of aids and
74.27reimbursements that the local governmental unit is certified to receive under Minnesota
74.28Statutes, sections 477A.011 to 477A.014. The property tax levy limit for any local
74.29government cannot be less than the greater of its certified net tax capacity levies for taxes
74.30levied in 2011 or 2012.
74.31 Subd. 5. Limit on levies. Notwithstanding any other provision of law or municipal
74.32charter to the contrary which authorize ad valorem taxes in excess of the limits established
75.1by this section, the provisions of this section apply to local governmental units for all
75.2purposes other than those for which special levies under Minnesota Statutes, section
75.3275.70, subdivision 5, clauses (1) to (5) and (7), and special assessments are made.
75.4 Subd. 6. Levies in excess of levy limits. If the levy made by a city or county
75.5exceeds the levy limit provided in this section, except when the excess levy is due to the
75.6rounding of the rate in accordance with Minnesota Statutes, section 275.28, the county
75.7auditor shall only extend the amount of taxes permitted under this section as provided
75.8for in Minnesota Statutes, section 275.16.
75.9 Subd. 7. Calculation and notification. The commissioner of revenue shall make
75.10all necessary calculations for determining levy limits for local governmental units and
75.11notify the affected governmental units of their levy limits directly by September 1, 2013.
75.12The local governmental units shall, upon request, provide the commissioner with any
75.13information needed to make the calculations. The local governmental unit shall report
75.14by September 30, in a manner prescribed by the commissioner, the maximum amount of
75.15taxes it plans to levy for each of the purposes listed under special levies and any additional
75.16levy authorized under Minnesota Statutes, section 275.73, along with any necessary
75.17documentation. The commissioner shall review the proposed special levies and make any
75.18adjustments needed. The commissioner's decision is final. The final allowed special levy
75.19amounts and any levy limit adjustments must be certified back to the local governments by
75.20December 10. In addition, the commissioner of revenue shall notify all county auditors on
75.21or before five working days after December 20 of the sum of the levy limit plus the total of
75.22allowed special levies for each local governmental unit located within their boundaries so
75.23that they may fix the levies as required in Minnesota Statutes, section 275.16. The local
75.24governmental units shall provide the commissioner of revenue with all information that
75.25the commissioner deems necessary to make the calculations provided for in this section.
75.26 Subd. 8. Information necessary to calculate levy limit base. A local governmental
75.27unit must provide the commissioner with the information required to calculate the
75.28amount under subdivision 3, by July 20, 2013. If the information is not received by the
75.29commissioner by that date, or is not deemed sufficient to make the calculation under that
75.30clause, the commissioner has the discretion to set the local governmental unit's levy limit
75.31for all purposes including those purposes for which special levies may be made, equal to
75.32the amount of the local governmental unit's certified levy for the prior year.
75.33EFFECTIVE DATE.This section is effective for taxes levied in 2013, payable
75.34in 2014, only.
76.1 Sec. 49. APPROPRIATION.
76.2$2,000,000 in fiscal year 2014 only is appropriated from the general fund to the
76.3commissioner of revenue for a grant to the city of Moose Lake to reimburse for costs
76.4related to connection of state facilities to the sewer line.
76.5EFFECTIVE DATE.This section is effective July 1, 2013.
76.8 Section 1. Minnesota Statutes 2012, section 270C.56, subdivision 1, is amended to read:
76.9 Subdivision 1. Liability imposed. A person who, either singly or jointly with
76.10others, has the control of, supervision of, or responsibility for filing returns or reports,
76.11paying taxes, or collecting or withholding and remitting taxes and who fails to do so, or a
76.12person who is liable under any other law, is liable for the payment of taxes arising under
76.13chapters 295, 296A, 297A, 297F, and 297G, or sections
76.14and the applicable penalties and interest on those taxes.
76.15EFFECTIVE DATE.This section is effective July 1, 2013.
76.16 Sec. 2. Minnesota Statutes 2012, section 296A.09, subdivision 2, is amended to read:
76.17 Subd. 2. Jet fuel and special fuel tax imposed. There is imposed an excise tax
76.18of
76.19fuel received, sold, stored, or withdrawn from storage in this state, for use as substitutes
76.20for aviation gasoline and not otherwise taxed as gasoline. Jet fuel is defined in section
76.22EFFECTIVE DATE.This section is effective July 1, 2014, and applied to sales
76.23and purchases made on or after that date.
76.24 Sec. 3. Minnesota Statutes 2012, section 296A.17, subdivision 3, is amended to read:
76.25 Subd. 3. Refund on graduated basis. Any person who has directly or indirectly
76.26paid the excise tax on aviation gasoline or special fuel for aircraft use provided for by this
76.27chapter and the airflight property tax under section 270.72, shall, as to all such aviation
76.28gasoline and special fuel received, stored, or withdrawn from storage by the person in
76.29this state in any calendar year and not sold or otherwise disposed of to others, or intended
76.30for sale or other disposition to others, on which such tax has been so paid, be entitled to
76.31the following graduated reductions in such tax for that calendar year, to be obtained by
76.32means of the following refunds:
77.1(1) on each gallon of such aviation gasoline or special fuel up to 50,000 gallons, all
77.2but five cents per gallon;
77.3(2) on each gallon of such aviation gasoline or special fuel above 50,000 gallons and
77.4not more than 150,000 gallons, all but two cents per gallon;
77.5(3) on each gallon of such aviation gasoline or special fuel above 150,000 gallons
77.6and not more than 200,000 gallons, all but one cent per gallon;
77.7(4) on each gallon of such aviation gasoline or special fuel above 200,000, all but
77.8one-half cent per gallon.
77.9EFFECTIVE DATE.This section is effective July 1, 2014, and applied to sales
77.10and purchases made on or after that date.
77.11 Sec. 4. Minnesota Statutes 2012, section 297A.82, subdivision 4, is amended to read:
77.12 Subd. 4. Exemptions. (a) The following transactions are exempt from the tax
77.13imposed in this chapter to the extent provided.
77.14(b) The purchase or use of aircraft previously registered in Minnesota by a
77.15corporation or partnership is exempt if the transfer constitutes a transfer within the
77.16meaning of section 351 or 721 of the Internal Revenue Code.
77.17(c) The sale to or purchase, storage, use, or consumption by a licensed aircraft dealer
77.18of an aircraft for which a commercial use permit has been issued pursuant to section
77.20(d) Air flight equipment when sold to, or purchased, stored, used, or consumed by
77.21airline companies, as defined in section
77.22of this subdivision, "air flight equipment" includes airplanes and parts necessary for the
77.23repair and maintenance of such air flight equipment, and flight simulators, but does
77.24not include airplanes with a gross weight of less than 30,000 pounds that are used on
77.25intermittent or irregularly timed flights.
77.26(e) Sales of, and the storage, distribution, use, or consumption of aircraft, as defined
77.27in section
77.28seller delivers to a purchaser outside Minnesota or which, without intermediate use, is
77.29shipped or transported outside Minnesota by the purchaser are exempt, but only if the
77.30purchaser is not a resident of Minnesota and provided that the aircraft is not thereafter
77.31returned to a point within Minnesota, except in the course of interstate commerce or
77.32isolated and occasional use, and will be registered in another state or country upon its
77.33removal from Minnesota. This exemption applies even if the purchaser takes possession of
77.34the aircraft in Minnesota and uses the aircraft in the state exclusively for training purposes
77.35for a period not to exceed ten days prior to removing the aircraft from this state.
78.1(f) The sale or purchase of the following items that relate to aircraft operated under
78.2Federal Aviation Regulations, Parts 91 and 135, and associated installation charges:
78.3equipment and parts necessary for repair and maintenance of aircraft; and equipment
78.4and parts to upgrade and improve aircraft.
78.5EFFECTIVE DATE.This section is effective for sales and purchases made after
78.6June 30, 2013.
78.7 Sec. 5. Minnesota Statutes 2012, section 297A.82, is amended by adding a subdivision
78.8to read:
78.9 Subd. 4a. Deposit in state airports fund. Tax revenue collected from the sale or
78.10purchase of an aircraft taxable under this chapter must be deposited in the state airports
78.11fund, established in section 360.017.
78.12EFFECTIVE DATE.This section is effective July 1, 2013, and applied to sales
78.13and purchases made on or after that date.
78.14 Sec. 6. Minnesota Statutes 2012, section 297F.01, subdivision 3, is amended to read:
78.15 Subd. 3. Cigarette. "Cigarette" means any roll for smoking made wholly or in part
78.16of tobacco
78.17(1) the wrapper or cover of which is made of paper or another substance or material
78.18except tobacco; or
78.19(2) wrapped in any substance containing tobacco, however labeled or named, which,
78.20because of its appearance, size, the type of tobacco used in the filler, or its packaging,
78.21pricing, marketing, or labeling, is likely to be offered to or purchased by consumers as
78.22a cigarette, as defined in clause (1), unless it is wrapped in whole tobacco leaf and does
78.23not have a cellulose acetate or other cigarette-like filter.
78.24EFFECTIVE DATE.This section is effective July 1, 2013.
78.25 Sec. 7. Minnesota Statutes 2012, section 297F.01, is amended by adding a subdivision
78.26to read:
78.27 Subd. 10b. Moist snuff. "Moist snuff" means any finely cut, ground, or powdered
78.28smokeless tobacco that is intended to be placed or dipped in the mouth.
78.29EFFECTIVE DATE.This section is effective January 1, 2014.
79.1 Sec. 8. Minnesota Statutes 2012, section 297F.01, is amended by adding a subdivision
79.2to read:
79.3 Subd. 13a. Premium cigar. "Premium cigar" means any cigar that is
79.4hand-constructed and hand-rolled, has a wrapper that is made entirely from whole tobacco
79.5leaf, has a filler and binder that is made entirely of tobacco, except for adhesives or other
79.6materials used to maintain size, texture, or flavor, and has a wholesale price of no less
79.7than $2.
79.8EFFECTIVE DATE.This section is effective July 1, 2013.
79.9 Sec. 9. Minnesota Statutes 2012, section 297F.01, subdivision 19, is amended to read:
79.10 Subd. 19. Tobacco products. (a) "Tobacco products" means any product
79.11containing, made, or derived from tobacco that is intended for human consumption,
79.12whether chewed, smoked, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by
79.13any other means, or any component, part, or accessory of a tobacco product, including,
79.14but not limited to, cigars;
79.15crimp cut, ready rubbed, and other smoking tobacco; snuff; snuff flour; cavendish; plug
79.16and twist tobacco; fine-cut and other chewing tobacco; shorts; refuse scraps, clippings,
79.17cuttings and sweepings of tobacco, and other kinds and forms of tobacco; but does not
79.18include cigarettes as defined in this section. Tobacco products excludes any tobacco
79.19product that has been approved by the United States Food and Drug Administration for
79.20sale as a tobacco cessation product, as a tobacco dependence product, or for other medical
79.21purposes, and is being marketed and sold solely for such an approved purpose.
79.22(b) Except for the imposition of tax under section 297F.05, subdivisions 3 and 4,
79.23tobacco products includes a premium cigar, as defined in subdivision 13a.
79.24EFFECTIVE DATE.This section is effective July 1, 2013.
79.25 Sec. 10. Minnesota Statutes 2012, section 297F.05, subdivision 1, is amended to read:
79.26 Subdivision 1. Rates; cigarettes. A tax is imposed upon the sale of cigarettes in
79.27this state, upon having cigarettes in possession in this state with intent to sell, upon any
79.28person engaged in business as a distributor, and upon the use or storage by consumers, at
79.29the following rates:
79.30(1) on cigarettes weighing not more than three pounds per thousand,
79.31on each such cigarette; and
79.32(2) on cigarettes weighing more than three pounds per thousand,
79.33each such cigarette.
80.1EFFECTIVE DATE.This section is effective July 1, 2013.
80.2 Sec. 11. Minnesota Statutes 2012, section 297F.05, is amended by adding a subdivision
80.3to read:
80.4 Subd. 1a. Annual indexing. (a) Each year the commissioner shall adjust the
80.5tax rates under subdivision 1, including any adjustment made in prior years under this
80.6subdivision, by multiplying the mill rates for the current calendar year by an adjustment
80.7factor and rounding the result to the nearest mill. The adjustment factor equals the in-lieu
80.8sales tax rate that applies to the following calendar year divided by the in-lieu sales tax
80.9rate for the current calendar year. For purposes of this subdivision, "in-lieu sales tax rate"
80.10means the tax rate established under section 297F.25, subdivision 1. For purposes of the
80.11calculations under this subdivision to be made in any year in which an increase in the
80.12federal or state excise tax on cigarettes is implemented, the commissioner shall exclude
80.13from the calculated average price for the current year an amount equal to any increase in
80.14the state or federal excise tax rate.
80.15 (b) The commissioner shall publish the resulting rate by November 1 and the rate
80.16applies to sales made on or after January 1 of the following year.
80.17(c) The determination of the commissioner under this subdivision is not a rule and is
80.18not subject to the Administrative Procedure Act in chapter 14.
80.19EFFECTIVE DATE.This section is effective July 1, 2014.
80.20 Sec. 12. Minnesota Statutes 2012, section 297F.05, subdivision 3, is amended to read:
80.21 Subd. 3. Rates; tobacco products. (a) Except as provided in subdivision 3a, a tax is
80.22imposed upon all tobacco products in this state and upon any person engaged in business
80.23as a distributor, at the rate of
80.24products. The tax is imposed at the time the distributor:
80.25(1) brings, or causes to be brought, into this state from outside the state tobacco
80.26products for sale;
80.27(2) makes, manufactures, or fabricates tobacco products in this state for sale in
80.28this state; or
80.29(3) ships or transports tobacco products to retailers in this state, to be sold by those
80.30retailers.
80.31(b) Notwithstanding paragraph (a), a minimum tax equal to the rate imposed on a
80.32pack of 20 cigarettes weighing not more than three pounds per thousand, as established
80.33under subdivision 1, is imposed on each container of moist snuff.
81.1For purposes of this subdivision, a "container" means the smallest consumer-size can,
81.2package, or other container that is marketed or packaged by the manufacturer, distributor,
81.3or retailer for separate sale to a retail purchaser. When more than one container is
81.4packaged together, each container is subject to tax.
81.5EFFECTIVE DATE.This section is effective July 1, 2013, except the minimum
81.6tax under paragraph (b) is effective January 1, 2014.
81.7 Sec. 13. Minnesota Statutes 2012, section 297F.05, is amended by adding a subdivision
81.8to read:
81.9 Subd. 3a. Rates; tobacco. (a) A tax is imposed upon all premium cigars in this state
81.10and upon any person engaged in business as a tobacco product distributor, at the lesser of:
81.11(1) the rate of 95 percent of the wholesale sales price of the premium cigars; or
81.12(2) $3.50 per premium cigar.
81.13(b) The tax imposed under paragraph (a) is imposed at the time the tobacco products
81.14distributor:
81.15(1) brings, or causes to be brought, into this state from outside the state premium
81.16cigars for sale;
81.17(2) makes, manufactures, or fabricates premium cigars in this state for sale in this
81.18state; or
81.19(3) ships or transports premium cigars to retailers in this state, to be sold by those
81.20retailers.
81.21EFFECTIVE DATE.This section is effective July 1, 2013.
81.22 Sec. 14. Minnesota Statutes 2012, section 297F.05, subdivision 4, is amended to read:
81.23 Subd. 4. Use tax; tobacco products. Except as provided in subdivision 4a, a tax is
81.24imposed upon the use or storage by consumers of tobacco products in this state, and upon
81.25such consumers, at the rate of
81.26products or the minimum tax under subdivision 3, paragraph (b), whichever is greater.
81.27EFFECTIVE DATE.This section is effective July 1, 2013.
81.28 Sec. 15. Minnesota Statutes 2012, section 297F.05, is amended by adding a subdivision
81.29to read:
81.30 Subd. 4a. Use tax; premium cigars. A tax is imposed upon the use or storage by
81.31consumers of all premium cigars in this state, and upon such consumers, at the lesser of:
81.32(1) the rate of 95 percent of the cost to the consumer of the premium cigars; or
82.1(2) $3.50 per premium cigar.
82.2EFFECTIVE DATE.This section is effective July 1, 2013.
82.3 Sec. 16. Minnesota Statutes 2012, section 297F.24, subdivision 1, is amended to read:
82.4 Subdivision 1. Fee imposed. (a) A fee is imposed upon the sale of nonsettlement
82.5cigarettes in this state, upon having nonsettlement cigarettes in possession in this state
82.6with intent to sell, upon any person engaged in business as a distributor, and upon the use
82.7or storage by consumers of nonsettlement cigarettes. The fee equals a rate of
82.8cents per cigarette.
82.9(b) The purpose of this fee is to:
82.10(1) ensure that manufacturers of nonsettlement cigarettes pay fees to the state that
82.11are comparable to costs attributable to the use of the cigarettes;
82.12(2) prevent manufacturers of nonsettlement cigarettes from undermining the state's
82.13policy of discouraging underage smoking by offering nonsettlement cigarettes at prices
82.14substantially below the cigarettes of other manufacturers; and
82.15(3) fund such other purposes as the legislature determines appropriate.
82.16EFFECTIVE DATE.This section is effective July 1, 2013.
82.17 Sec. 17. Minnesota Statutes 2012, section 297F.25, subdivision 1, is amended to read:
82.18 Subdivision 1. Imposition. (a) A tax is imposed on distributors on the sale of
82.19cigarettes by a cigarette distributor to a retailer or cigarette subjobber for resale in this
82.20state. The tax is equal to
82.21multiplied by the weighted average retail price and must be expressed in cents per pack
82.22rounded to the nearest one-tenth of a cent. The weighted average retail price must be
82.23determined annually, with new rates published by November 1, and effective for sales
82.24on or after January 1 of the following year. The weighted average retail price must be
82.25established by surveying cigarette retailers statewide in a manner and time determined by
82.26the commissioner. The commissioner shall make an inflation adjustment in accordance
82.27with the Consumer Price Index for all urban consumers inflation indicator as published in
82.28the most recent state budget forecast. The commissioner shall use the inflation factor for
82.29the calendar year in which the new tax rate takes effect. If the survey indicates that the
82.30average retail price of cigarettes has not increased relative to the average retail price in
82.31the previous year's survey, then the commissioner shall not make an inflation adjustment.
82.32The determination of the commissioner pursuant to this subdivision is not a "rule" and is
83.1not subject to the Administrative Procedure Act contained in chapter 14. For packs of
83.2cigarettes with other than 20 cigarettes, the tax must be adjusted proportionally.
83.3(b) Notwithstanding paragraph (a), and in lieu of a survey of cigarette retailers, the
83.4tax calculation of the weighted average retail price for the sales of cigarettes from August
83.51, 2011, through December 31, 2011, shall be calculated by: (1) increasing the average
83.6retail price per pack of 20 cigarettes from the most recent survey by the percentage change
83.7in a weighted average of the presumed legal prices for cigarettes during the year after
83.8completion of that survey, as reported and published by the Department of Commerce
83.9under section
83.10adjusting for expected inflation. The rate must be published by May 1 and is effective for
83.11sales after July 31. If the weighted average of the presumed legal prices indicates that the
83.12average retail price of cigarettes has not increased relative to the average retail price in the
83.13most recent survey, then no inflation adjustment must be made. For packs of cigarettes
83.14with other than 20 cigarettes, the tax must be adjusted proportionally.
83.15EFFECTIVE DATE.This section is effective July 1, 2013.
83.16 Sec. 18. Minnesota Statutes 2012, section 297G.04, subdivision 2, is amended to read:
83.17 Subd. 2. Tax credit. A qualified brewer producing fermented malt beverages
83.18is entitled to a tax credit of $4.60 per barrel on 25,000 barrels sold in any fiscal year
83.19beginning July 1, regardless of the alcohol content of the product. Qualified brewers may
83.20take the credit on the 18th day of each month, but the total credit allowed may not exceed
83.21in any fiscal year the lesser of:
83.22 (1) the liability for tax; or
83.23 (2) $115,000.
83.24 For purposes of this subdivision, a "qualified brewer" means a brewer, whether or
83.25not located in this state, manufacturing less than
83.26malt beverages in the calendar year immediately preceding the calendar year for which
83.27the credit under this subdivision is claimed. In determining the number of barrels, all
83.28brands or labels of a brewer must be combined. All facilities for the manufacture of
83.29fermented malt beverages owned or controlled by the same person, corporation, or other
83.30entity must be treated as a single brewer.
83.31EFFECTIVE DATE.This section is effective for determinations based on calendar
83.32year 2012 production and thereafter.
83.33 Sec. 19. Minnesota Statutes 2012, section 325D.32, subdivision 2, is amended to read:
84.1 Subd. 2. Cigarettes. "Cigarettes" means and includes any roll for smoking, made
84.2wholly or in part of tobacco, irrespective of size and shape and whether or not such
84.3tobacco is flavored, adulterated or mixed with any other ingredient, the wrapper or cover
84.4of which is made of paper or any other substance or material except whole tobacco leaf,
84.5and includes any cigarette as defined in section 297F.01, subdivision 3.
84.6EFFECTIVE DATE.This section is effective July 1, 2013.
84.7 Sec. 20. Minnesota Statutes 2012, section 325F.781, subdivision 1, is amended to read:
84.8 Subdivision 1. Definitions. (a) For purposes of this section, the following terms
84.9have the meanings given, unless the language or context clearly provides otherwise.
84.10(b) "Consumer" means an individual who purchases, receives, or possesses tobacco
84.11products for personal consumption and not for resale.
84.12(c) "Delivery sale" means:
84.13(1) a sale of tobacco products to a consumer in this state when:
84.14(i) the purchaser submits the order for the sale by means of a telephonic or other
84.15method of voice transmission, the mail or any other delivery service, or the Internet or
84.16other online service; or
84.17(ii) the tobacco products are delivered by use of the mail or other delivery service; or
84.18(2) a sale of tobacco products that satisfies the criteria in clause (1), item (i),
84.19regardless of whether the seller is located inside or outside of the state.
84.20A sale of tobacco products to an individual in this state must be treated as a sale to a
84.21consumer, unless the individual is licensed as a distributor or retailer of tobacco products.
84.22(d) "Delivery service" means a person, including the United States Postal Service,
84.23that is engaged in the commercial delivery of letters, packages, or other containers.
84.24(e) "Distributor" means a person, whether located inside or outside of this state,
84.25other than a retailer, who sells or distributes tobacco products in the state. Distributor does
84.26not include a tobacco products manufacturer, export warehouse proprietor, or importer
84.27with a valid permit under United States Code, title 26, section 5712 (1997), if the person
84.28sells or distributes tobacco products in this state only to distributors who hold valid and
84.29current licenses under the laws of a state, or to an export warehouse proprietor or another
84.30manufacturer. Distributor does not include a common or contract carrier that is transporting
84.31tobacco products under a proper bill of lading or freight bill that states the quantity, source,
84.32and destination of tobacco products, or a person who ships tobacco products through this
84.33state by common or contract carrier under a bill of lading or freight bill.
84.34(f) "Retailer" means a person, whether located inside or outside this state, who sells
84.35or distributes tobacco products to a consumer in this state.
85.1(g) "Tobacco products" means:
85.2(1) cigarettes, as defined in section
85.3(2) smokeless tobacco as defined in section
85.4(3) premium cigars as defined in section 297F.01, subdivision 13a.
85.5EFFECTIVE DATE.This section is effective July 1, 2013.
85.6 Sec. 21. Minnesota Statutes 2012, section 349.166, subdivision 1, is amended to read:
85.7 Subdivision 1. Exclusions. (a) Bingo, with the exception of linked bingo games, may
85.8be conducted without a license and without complying with sections
85.91 and 2;
85.10(1) by an organization in connection with a county fair, the state fair, or a civic
85.11celebration and is not conducted for more than 12 consecutive days and is limited to no more
85.12than four separate applications for activities applied for and approved in a calendar year; or
85.13(2) by an organization that conducts bingo on four or fewer days in a calendar year.
85.14An organization that holds a license to conduct lawful gambling under this chapter
85.15may not conduct bingo under this subdivision.
85.16(b) Bingo may be conducted within a nursing home or a senior citizen housing
85.17project or by a senior citizen organization if the prizes for a single bingo game do not
85.18exceed $10, total prizes awarded at a single bingo occasion do not exceed $200, no more
85.19than two bingo occasions are held by the organization or at the facility each week, only
85.20members of the organization or residents of the nursing home or housing project are
85.21allowed to play in a bingo game, no compensation is paid for any persons who conduct the
85.22bingo, and a manager is appointed to supervise the bingo. Bingo conducted under this
85.23paragraph is exempt from sections
85.24organization that conducts bingo under this paragraph, or the manager who supervises the
85.25bingo, to register or file a report with the board. The gross receipts from bingo conducted
85.26under the limitations of this subdivision are exempt from taxation under chapter 297A.
85.27(c) Raffles may be conducted by an organization without registering with the board
85.28if the value of all raffle prizes awarded by the organization in a calendar year does not
85.29exceed $1,500 or, if the organization is a 501(c)(3) organization, if the value of all raffle
85.30prizes awarded by the organization at one event in a calendar year does not exceed $5,000.
85.31(d) Except as provided in paragraph (b), the organization must maintain all required
85.32records of excluded gambling activity for 3-1/2 years.
85.33EFFECTIVE DATE.This section is effective July 1, 2013.
86.1 Sec. 22. Minnesota Statutes 2012, section 360.531, is amended to read:
86.2360.531 TAXATION.
86.3 Subdivision 1. In lieu tax. All aircraft using the air space overlying the state of
86.4Minnesota or the airports thereof, except as set forth in section
86.5lieu of all other taxes thereon, on the basis and at the rate for the period January 1, 1966, to
86.6June 30, 1967, and for each fiscal year as follows.
86.7 Subd. 2. Rate. The tax shall be
86.8
86.10
86.28 Subd. 3. First year of life. "First year of life" means the year the aircraft was
86.29manufactured.
86.30 Subd. 4. Base price for taxation. For the purpose of fixing a base price for taxation
86.31
86.32base price is defined as follows:
86.33(a) The base price for taxation of an aircraft shall be the manufacturer's list price.
86.34(b) The commissioner shall have authority to fix the base value for taxation purposes
86.35of any aircraft of which no such similar or corresponding model has been manufactured,
86.36and of any rebuilt or foreign aircraft, any aircraft on which a record of the list price is not
86.37available, or any military aircraft converted for civilian use, using as a basis for
87.1valuation the list price of aircraft with comparable performance characteristics, and taking
87.2into consideration the age and condition of the aircraft.
87.3 Subd. 5. Similarity of corresponding model. Models shall be deemed similar if
87.4substantially alike and of the same make. Models shall be deemed to be corresponding
87.5models for the purpose of taxation under sections
87.6and having approximately the same weight and type of frame and the same style and
87.7size of motor.
87.8
87.9
87.10
87.11
87.12 Subd. 7. Prorating tax. When an aircraft first becomes subject to taxation during the
87.13period for which the tax is to be paid, the tax on it shall be for the remainder of that period,
87.14prorated on a monthly basis of 1/12 of the annual tax for each calendar month counting the
87.15month during which it becomes subject to the tax as the first month of such period.
87.16 Subd. 8. Tax, fiscal year. Every aircraft subject to the provisions of sections
87.18the state of Minnesota or the airports thereof shall be taxed for the period from January 1,
87.191966, through June 30, 1967, and for each fiscal year thereafter in which it is so used. Any
87.20aircraft which does not use the air space overlying the state of Minnesota or the airports
87.21thereof at any time during the period of January 1, 1966, to and including June 30, 1967,
87.22or at any time during any fiscal year thereafter shall not be subject to the tax provided by
87.23sections
87.24provided by sections
87.25after the aircraft has been rebuilt, prorated on a monthly basis.
87.26 Subd. 9. Assessed as personal property in certain cases. Aircraft subject to
87.27taxation under the provisions of sections
87.28property and shall be subject to no tax except as provided for by these sections. Aircraft
87.29not subject to taxation as provided in these sections, but subject to taxation as personal
87.30property within the state of Minnesota shall be assessed and valued at 33-1/3 percent of
87.31the market value thereof and taxed at the rate and in the manner provided by law for the
87.32taxation of ordinary personal property. If the person against whom any tax has been levied
87.33on the ad valorem basis because of any aircraft shall, during the calendar year for which
87.34such ad valorem tax is levied, be also taxed under provisions of these sections, then and in
87.35that event, upon proper showing, the commissioner of revenue shall grant to the person
87.36against whom said ad valorem tax was levied, such reduction or abatement of net tax
88.1capacity or taxes as was occasioned by the so-called ad valorem tax imposed. If the ad
88.2valorem tax upon any aircraft has been assessed against a dealer in new and used aircraft,
88.3and the tax imposed by these sections for the required period is thereafter paid by the
88.4owner, then and in that event, upon proper showing, the commissioner of revenue, upon
88.5the application of said dealer, shall grant to such dealer against whom said ad valorem tax
88.6was levied such reduction or abatement of net tax capacity or taxes as was occasioned
88.7by the so-called ad valorem tax imposed.
88.8EFFECTIVE DATE.This section is effective July 1, 2014, and applies to aircraft
88.9tax due on or after that date.
88.10 Sec. 23. Minnesota Statutes 2012, section 360.66, is amended to read:
88.11360.66 STATE AIRPORTS FUND.
88.12 Subdivision 1. Tax credited to fund. The proceeds of the tax imposed on aircraft
88.13under sections
88.14shall be collected by the commissioner and paid into the state treasury and credited to the
88.15state airports fund created by other statutes of this state.
88.16 Subd. 2. Reimbursement for expenses. There shall be transferred by the
88.17commissioner of management and budget each year from the state airports fund to the
88.18general fund in the state treasury the amount expended from the latter fund for expenses of
88.19administering the provisions of sections
88.20EFFECTIVE DATE.This section is effective July 1, 2014, and applies to aircraft
88.21tax due on or after that date.
88.22 Sec. 24. REPORT.
88.23On or before June 30, 2016, and every four years thereafter, the commissioner of
88.24transportation, in consultation with the commissioner of revenue, shall prepare and submit
88.25to the chairs and ranking minority members of the senate and house of representatives
88.26committees with jurisdiction over transportation policy and budget, a report that identifies
88.27the amount and sources of annual revenues attributable to each type of aviation tax, along
88.28with annual expenditures from the state airports fund, and any other transfers out of the
88.29fund, during the previous four years. The report must include draft legislation for any
88.30recommended statutory changes to ensure the future adequacy of the state airports fund.
88.31EFFECTIVE DATE.This section is effective July 1, 2014, and applies to aircraft
88.32tax due on or after that date.
89.1 Sec. 25. FLOOR STOCKS TAX.
89.2 Subdivision 1. Cigarettes. (a) A floor stocks tax is imposed on every person
89.3engaged in the business in this state as a distributor, retailer, subjobber, vendor,
89.4manufacturer, or manufacturer's representative of cigarettes, on the stamped cigarettes and
89.5unaffixed stamps in the person's possession or under the person's control at 12:01 a.m.
89.6on July 1, 2013. The tax is imposed at the rate of 80 mills on each cigarette plus the
89.7additional cigarette sales tax determined by an adjustment to the weighted average retail
89.8price which reflects the price including the increased tax.
89.9(b) Each distributor, on or before July 11, 2013, shall file a return with the
89.10commissioner of revenue, in the form the commissioner prescribes, showing the stamped
89.11cigarettes and unaffixed stamps on hand at 12:01 a.m. on July 1, 2013, and the amount
89.12of tax due on the cigarettes and unaffixed stamps. Each retailer, subjobber, vendor,
89.13manufacturer, or manufacturer's representative, on or before July 11, 2013, shall file
89.14a return with the commissioner, in the form the commissioner prescribes, showing the
89.15cigarettes on hand at 12:01 a.m. on July 1, 2013, and the amount of tax due on the
89.16cigarettes. The tax imposed by this section is due and payable on or before September 4,
89.172013, and after that date bears interest at the rate of one percent per month.
89.18 Subd. 2. Audit and enforcement. The tax imposed by this section is subject to
89.19the audit, assessment, interest, appeal, refund, penalty, enforcement, administrative, and
89.20collection provisions of Minnesota Statutes, chapters 270C and 297F. The commissioner
89.21of revenue may require a distributor to receive and maintain copies of floor stocks fee
89.22returns filed by all persons requesting a credit for returned cigarettes.
89.23 Subd. 3. Deposit of proceeds. (a) The commissioner of revenue shall deposit
89.24$26,500,000 of the revenues from the tax under this section in the state treasury and credit
89.25them to the general reserve account established under Minnesota Statutes 297E.021,
89.26subdivision 4.
89.27(b) The commissioner of revenue shall deposit any revenue remaining after the
89.28transfer under paragraph (a) to the general fund.
89.29EFFECTIVE DATE.This section is effective July 1, 2013.
89.30 Sec. 26. INTERIM SALES TAX RATE.
89.31Notwithstanding the provisions of Minnesota Statutes, section 297F.25, the
89.32commissioner shall adjust the weighted average retail price in section 297F.25, subdivision
89.331, on July 1, 2013, to reflect the price changes under this act. This weighted average
90.1shall be used to compute cigarette sales tax under Minnesota Statutes, section 297F.25,
90.2subdivision 1, until December 31, 2013, when the commissioner shall resume annual
90.3adjustments to the weighted average sales price. The commissioner's determination of
90.4the adjustment that takes effect on January 1, 2014, must be limited to the change in the
90.5weighted average retail price that occurs during calendar year 2013 but after July 15, 2013.
90.6EFFECTIVE DATE.This section is effective July 1, 2013.
90.7 Sec. 27. TOBACCO TAX COLLECTION REPORT.
90.8 Subdivision 1. Report to legislature. (a) The commissioner of revenue shall report
90.9to the 2014 legislature on the tobacco tax collection system, including recommendations
90.10to improve compliance under the excise tax for both cigarettes and other tobacco products.
90.11The purpose of the report is to provide information and guidance to the legislature on
90.12improvements to the tobacco tax collection system to:
90.13(1) provide a unified system of collecting both the cigarette and other tobacco
90.14taxes, regardless of category, size, or shape, that ensures the highest reasonable rates of
90.15tax collection;
90.16(2) discourage tax evasion; and
90.17(3) help to prevent illegal sale of tobacco products, which may make these products
90.18more accessible to youth.
90.19(b) In the report, the commissioner shall:
90.20(1) provide a detailed review of the present excise tax collection and compliance
90.21system as it applies to both cigarettes and other tobacco products. This must include
90.22an assessment of the levels of compliance for each category of products and the effect
90.23of the stamping requirement on compliance for each category of products and the effect
90.24of the stamping requirement on compliance rates for cigarettes relative to other tobacco
90.25products. It also must identify any weaknesses in the system;
90.26(2) survey the methods of collection and enforcement used by other states or nations,
90.27including identifying and discussing emerging best practices that ensure tracking of both
90.28cigarettes and other tobacco products and result in the highest rates of tax collection and
90.29compliance. These best practices must consider high-technology alternatives, such as use
90.30of bar codes, radio-frequency identification tags, or similar mechanisms for tracking
90.31compliance;
90.32(3) evaluate the adequacy and effectiveness of the existing penalties and other
90.33sanctions for noncompliance;
91.1(4) evaluate the adequacy of the resources allocated by the state to enforce the
91.2tobacco tax and prevention laws; and
91.3(5) make recommendations on implementation of a comprehensive tobacco tax
91.4collection system for Minnesota that can be implemented by January 1, 2014, including:
91.5(i) recommendations on the specific steps needed to institute and implement the new
91.6system, including estimates of the state's costs of doing so and any additional personnel
91.7requirements;
91.8(ii) recommendations on methods to recover the cost of implementing the system
91.9from the industry;
91.10(iii) evaluation of the extent to which the proposed system is sufficiently flexible
91.11and adaptable to adjust to modifications in the construction, packaging, formatting, and
91.12marketing of tobacco products by the industry; and
91.13(iv) recommendations to modify existing penalties or to impose new penalties or
91.14other sanctions to ensure compliance with the system.
91.15 Subd. 2. Due date. The report required by subdivision 1 is due February 15, 2014.
91.16 Subd. 3. Procedure. The report required under this section must be made in the
91.17manner provided under Minnesota Statutes, section 3.195. In addition, copies must be
91.18provided to the chairs and ranking minority members of the legislative committees and
91.19divisions with jurisdiction over taxation.
91.20 Subd. 4. Appropriation. (a) $100,000 is appropriated from the general fund to the
91.21commissioner of revenue for fiscal year 2014 for the cost of preparing the report under
91.22subdivision 1.
91.23(b) The appropriation under this subdivision is a onetime appropriation and is not
91.24included in the base budget.
91.25EFFECTIVE DATE.This section is effective the day following final enactment.
91.26 Sec. 28. REPEALER.
91.27Minnesota Statutes 2012, sections 16A.725; and 256.9658, are repealed.
91.28EFFECTIVE DATE.This section is effective July 1, 2013.
91.31 Section 1. Minnesota Statutes 2012, section 116J.8737, subdivision 1, is amended to
91.32read:
92.1 Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
92.2have the meanings given.
92.3(b) "Qualified small business" means a business that has been certified by the
92.4commissioner under subdivision 2.
92.5(c) "Qualified investor" means an investor who has been certified by the
92.6commissioner under subdivision 3.
92.7(d) "Qualified fund" means a pooled angel investment network fund that has been
92.8certified by the commissioner under subdivision 4.
92.9(e) "Qualified investment" means a cash investment in a qualified small business
92.10of a minimum of:
92.11(1) $10,000 in a calendar year by a qualified investor; or
92.12(2) $30,000 in a calendar year by a qualified fund.
92.13A qualified investment must be made in exchange for common stock, a partnership
92.14or membership interest, preferred stock, debt with mandatory conversion to equity, or an
92.15equivalent ownership interest as determined by the commissioner.
92.16(f) "Family" means a family member within the meaning of the Internal Revenue
92.17Code, section 267(c)(4).
92.18(g) "Pass-through entity" means a corporation that for the applicable taxable year is
92.19treated as an S corporation or a general partnership, limited partnership, limited liability
92.20partnership, trust, or limited liability company and which for the applicable taxable year is
92.21not taxed as a corporation under chapter 290.
92.22(h) "Intern" means a student of an accredited institution of higher education, or a
92.23former student who has graduated in the past six months from an accredited institution
92.24of higher education, who is employed by a qualified small business in a nonpermanent
92.25position for a duration of nine months or less that provides training and experience in the
92.26primary business activity of the business.
92.27(i) "Liquidation event" means a conversion of qualified investment for cash, cash
92.28and other consideration, or any other form of equity or debt interest.
92.29EFFECTIVE DATE.This section is effective for qualified small businesses
92.30certified after June 30, 2013.
92.31 Sec. 2. Minnesota Statutes 2012, section 116J.8737, subdivision 2, is amended to read:
92.32 Subd. 2. Certification of qualified small businesses. (a) Businesses may apply
92.33to the commissioner for certification as a qualified small business for a calendar year.
92.34The application must be in the form and be made under the procedures specified by the
92.35commissioner, accompanied by an application fee of $150. Application fees are deposited
93.1in the small business investment tax credit administration account in the special revenue
93.2fund. The application for certification for 2010 must be made available on the department's
93.3Web site by August 1, 2010. Applications for subsequent years' certification must be made
93.4available on the department's Web site by November 1 of the preceding year.
93.5(b) Within 30 days of receiving an application for certification under this subdivision,
93.6the commissioner must either certify the business as satisfying the conditions required of a
93.7qualified small business, request additional information from the business, or reject the
93.8application for certification. If the commissioner requests additional information from the
93.9business, the commissioner must either certify the business or reject the application within
93.1030 days of receiving the additional information. If the commissioner neither certifies the
93.11business nor rejects the application within 30 days of receiving the original application or
93.12within 30 days of receiving the additional information requested, whichever is later, then
93.13the application is deemed rejected, and the commissioner must refund the $150 application
93.14fee. A business that applies for certification and is rejected may reapply.
93.15(c) To receive certification, a business must satisfy all of the following conditions:
93.16(1) the business has its headquarters in Minnesota;
93.17(2) at least 51 percent of the business's employees are employed in Minnesota, and
93.1851 percent of the business's total payroll is paid or incurred in the state;
93.19(3) the business is engaged in, or is committed to engage in, innovation in Minnesota
93.20in one of the following as its primary business activity:
93.21(i) using proprietary technology to add value to a product, process, or service in a
93.22qualified high-technology field;
93.23(ii) researching or developing a proprietary product, process, or service in a qualified
93.24high-technology field; or
93.25(iii) researching, developing, or producing a new proprietary technology for use in
93.26the fields of agriculture, tourism, forestry, mining, manufacturing, or transportation;
93.27(4) other than the activities specifically listed in clause (3), the business is not
93.28engaged in real estate development, insurance, banking, lending, lobbying, political
93.29consulting, information technology consulting, wholesale or retail trade, leisure,
93.30hospitality, transportation, construction, ethanol production from corn, or professional
93.31services provided by attorneys, accountants, business consultants, physicians, or health
93.32care consultants;
93.33(5) the business has fewer than 25 employees;
93.34(6) the business must pay its employees annual wages of at least 175 percent of the
93.35federal poverty guideline for the year for a family of four and must pay its interns annual
93.36wages of at least 175 percent of the federal minimum wage used for federally covered
94.1employers, except that this requirement must be reduced proportionately for employees
94.2and interns who work less than full-time, and does not apply to an executive, officer, or
94.3member of the board of the business, or to any employee who owns, controls, or holds
94.4power to vote more than 20 percent of the outstanding securities of the business;
94.5(7) the business has (i) not been in operation for more than ten years, or (ii) the
94.6business has not been in operation for more than 20 years if the business is engaged
94.7in the research, development, or production of medical devices or pharmaceuticals for
94.8which United States Food and Drug Administration approval is required for use in the
94.9treatment or diagnosis of a disease or condition;
94.10(8) the business has not previously received private equity investments of more
94.11than $4,000,000;
94.12 (9) the business is not an entity disqualified under section
94.13clause (3)
94.14(10) the business has not issued securities that are traded on a public exchange.
94.15(d) In applying the limit under paragraph (c), clause (5), the employees in all members
94.16of the unitary business, as defined in section
94.17(e) In order for a qualified investment in a business to be eligible for tax credits
94.18(1) the business must have applied for and received certification for the calendar
94.19year in which the investment was made prior to the date on which the qualified investment
94.20was made
94.21(2) the business must not have issued securities that are traded on a public exchange;
94.22(3) the business must not issue securities that are traded on a public exchange within
94.23180 days after the date on which the qualified investment was made; and
94.24(4) the business must not have a liquidation event within 180 days after the date on
94.25which the qualified investment was made.
94.26(f) The commissioner must maintain a list of businesses certified under this
94.27subdivision for the calendar year and make the list accessible to the public on the
94.28department's Web site.
94.29(g) For purposes of this subdivision, the following terms have the meanings given:
94.30(1) "qualified high-technology field" includes aerospace, agricultural processing,
94.31renewable energy, energy efficiency and conservation, environmental engineering, food
94.32technology, cellulosic ethanol, information technology, materials science technology,
94.33nanotechnology, telecommunications, biotechnology, medical device products,
94.34pharmaceuticals, diagnostics, biologicals, chemistry, veterinary science, and similar
94.35fields; and
95.1(2) "proprietary technology" means the technical innovations that are unique and
95.2legally owned or licensed by a business and includes, without limitation, those innovations
95.3that are patented, patent pending, a subject of trade secrets, or copyrighted.
95.4EFFECTIVE DATE.This section is effective for qualified small businesses
95.5certified after June 30, 2013, except the amendments to paragraph (c), clause (7), are
95.6effective the day following final enactment.
95.7 Sec. 3. Minnesota Statutes 2012, section 116J.8737, subdivision 8, is amended to read:
95.8 Subd. 8. Data privacy. (a) Data contained in an application submitted to the
95.9commissioner under subdivision 2, 3, or 4 are nonpublic data, or private data on
95.10individuals, as defined in section
95.11data items are public:
95.12(1) the name, mailing address, telephone number, e-mail address, contact person's
95.13name, and industry type of a qualified small business upon approval of the application
95.14and certification by the commissioner under subdivision 2;
95.15(2) the name of a qualified investor upon approval of the application and certification
95.16by the commissioner under subdivision 3;
95.17(3) the name of a qualified fund upon approval of the application and certification
95.18by the commissioner under subdivision 4;
95.19(4) for credit certificates issued under subdivision 5, the amount of the credit
95.20certificate issued, amount of the qualifying investment, the name of the qualifying investor
95.21or qualifying fund that received the certificate, and the name of the qualifying small
95.22business in which the qualifying investment was made;
95.23(5) for credits revoked under subdivision 7, paragraph (a), the amount revoked and
95.24the name of the qualified investor or qualified fund; and
95.25(6) for credits revoked under subdivision 7, paragraphs (b) and (c), the amount
95.26revoked and the name of the qualified small business.
95.27(b) The following data, including data classified as nonpublic or private, must be
95.28provided to the consultant for use in conducting the program evaluation under subdivision
95.2910:
95.30(1) the commissioner of employment and economic development shall provide data
95.31contained in an application for certification received from a qualified small business,
95.32qualified investor, or qualified fund, and any annual reporting information received on a
95.33qualified small business, qualified investor, or qualified fund; and
95.34(2) the commissioner of revenue shall provide data contained in any applicable tax
95.35returns of a qualified small business, qualified investor, or qualified fund.
96.1EFFECTIVE DATE.This section is effective the day following final enactment.
96.2 Sec. 4. [136A.129] GREATER MINNESOTA INTERNSHIP PROGRAM.
96.3 Subdivision 1. Definitions. (a) For the purposes of this section, the terms defined in
96.4this subdivision have the meanings given to them.
96.5(b) "Eligible employer" means a taxpayer under section 290.01 with employees
96.6located in greater Minnesota.
96.7(c) "Eligible institution" means a Minnesota public postsecondary institution or a
96.8Minnesota private, nonprofit, baccalaureate degree-granting college or university.
96.9(d) "Eligible student" means a student enrolled in an eligible institution who has
96.10completed one-half of the credits necessary for the respective degree or certification.
96.11(e) "Greater Minnesota" means the area of the state outside of the counties of Anoka,
96.12Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington, and
96.13Wright.
96.14 Subd. 2. Program established. The Office of Higher Education shall administer
96.15a greater Minnesota internship program through eligible institutions to provide credit at
96.16the eligible institution for internships and tax credits for eligible employers who hire
96.17interns for employment in greater Minnesota.
96.18 Subd. 3. Program components. (a) An intern must be an eligible student who has
96.19been admitted to a major program that is related to the intern experience as determined
96.20by the eligible institution.
96.21(b) To participate in the program, an eligible institution must:
96.22(1) enter into written agreements with eligible employers to provide internships that
96.23are at least 12 weeks long and located in greater Minnesota;
96.24(2) determine that the work experience of the internship is related to the eligible
96.25student's course of study; and
96.26(3) provide academic credit for the successful completion of the internship or ensure
96.27that it fulfills requirements necessary to complete a vocational technical education program.
96.28(c) To participate in the program, an eligible employer must enter into a written
96.29agreement with an eligible institution specifying that the intern:
96.30(1) would not have been hired without the tax credit described in subdivision 4;
96.31(2) did not work for the employer in the same or a similar job prior to entering
96.32the agreement;
96.33(3) does not replace an existing employee;
96.34(4) has not previously participated in the program;
96.35(5) will be employed at a location in greater Minnesota;
97.1(6) will be paid at least minimum wage for a minimum of 16 hours per week for a
97.2period of at least 12 weeks; and
97.3(7) will be supervised and evaluated by the employer.
97.4(d) The written agreement between the eligible institution and the eligible employer
97.5must certify a credit amount to the employer, not to exceed $2,000 per intern. The total
97.6dollar amount of credits that an eligible institution certifies to eligible employers in a
97.7calendar year may not exceed the amount of its allocation under subdivision 4.
97.8(e) Participating eligible institutions and eligible employers must report annually to
97.9the office. The report must include at least the following:
97.10(1) the number of interns hired;
97.11(2) the number of hours and weeks worked by interns; and
97.12(3) the compensation paid to interns.
97.13(f) An internship required to complete an academic program does not qualify for the
97.14greater Minnesota internship program under this section.
97.15 Subd. 4. Tax credit allowed. An employer is entitled to a tax credit as provided in
97.16section 290.06, subdivision 36. The total amount of credits allocated in a calendar year
97.17must not exceed $2,000,000. The office shall determine relevant criteria to allocate the
97.18tax credits including the geographic distribution of credits to work locations outside the
97.19metropolitan area, and shall allocate credits to eligible institutions that meet the criteria on
97.20a first come, first served basis. Any credits allocated to an institution but not used may be
97.21reallocated to eligible institutions. The office shall allocate a portion of the administrative
97.22fee under section 290.06, subdivision 36, to participating eligible institutions for their
97.23administrative costs.
97.24 Subd. 5. Reports to the legislature. (a) By February 1, 2015, the office and the
97.25Department of Revenue shall report to the legislature on the greater Minnesota internship
97.26program. The report must include at least the following:
97.27(1) the number and dollar amount of credits allowed;
97.28(2) the number of interns employed under the program; and
97.29(3) the cost of administering the program.
97.30(b) By February 1, 2016, the office and the Department of Revenue shall report to the
97.31legislature with an analysis of the effectiveness of the program in stimulating businesses
97.32to hire interns and in assisting participating interns in finding permanent career positions.
97.33This report must include the number of students who participated in the program who
97.34were subsequently employed full-time by the employer.
97.35EFFECTIVE DATE.This section is effective for taxable years beginning after
97.36December 31, 2013.
98.1 Sec. 5. Minnesota Statutes 2012, section 289A.08, subdivision 3, is amended to read:
98.2 Subd. 3. Corporations. (a) A corporation that is subject to the state's jurisdiction to
98.3tax under section
98.4
98.5(b) Members of a unitary business that are required to file a combined report on one
98.6return must designate a member of the unitary business to be responsible for tax matters,
98.7including the filing of returns, the payment of taxes, additions to tax, penalties, interest,
98.8or any other payment, and for the receipt of refunds of taxes or interest paid in excess of
98.9taxes lawfully due. The designated member must be a member of the unitary business that
98.10is filing the single combined report and either:
98.11(1) a corporation that is subject to the taxes imposed by chapter 290; or
98.12(2) a corporation that is not subject to the taxes imposed by chapter 290:
98.13(i) Such corporation consents by filing the return as a designated member under this
98.14clause to remit taxes, penalties, interest, or additions to tax due from the members of the
98.15unitary business subject to tax, and receive refunds or other payments on behalf of other
98.16members of the unitary business. The member designated under this clause is a "taxpayer"
98.17for the purposes of this chapter and chapter 270C, and is liable for any liability imposed
98.18on the unitary business under this chapter and chapter 290.
98.19(ii) If the state does not otherwise have the jurisdiction to tax the member designated
98.20under this clause, consenting to be the designated member does not create the jurisdiction
98.21to impose tax on the designated member, other than as described in item (i).
98.22(iii) The member designated under this clause must apply for a business tax account
98.23identification number.
98.24(c) The commissioner shall adopt rules for the filing of one return on behalf of the
98.25members of an affiliated group of corporations that are required to file a combined report.
98.26All members of an affiliated group that are required to file a combined report must file one
98.27return on behalf of the members of the group under rules adopted by the commissioner.
98.28(d) If a corporation claims on a return that it has paid tax in excess of the amount of
98.29taxes lawfully due, that corporation must include on that return information necessary for
98.30payment of the tax in excess of the amount lawfully due by electronic means.
98.31EFFECTIVE DATE.This section is effective for taxable years beginning after
98.32December 31, 2012.
98.33 Sec. 6. Minnesota Statutes 2012, section 290.01, subdivision 19, as amended by Laws
98.342013, chapter 3, section 3, is amended to read:
99.1 Subd. 19. Net income. The term "net income" means the federal taxable income,
99.2as defined in section 63 of the Internal Revenue Code of 1986, as amended through the
99.3date named in this subdivision, incorporating the federal effective dates of changes to the
99.4Internal Revenue Code and any elections made by the taxpayer in accordance with the
99.5Internal Revenue Code in determining federal taxable income for federal income tax
99.6purposes, and with the modifications provided in subdivisions 19a to 19f.
99.7 In the case of a regulated investment company or a fund thereof, as defined in section
99.8851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
99.9company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
99.10except that:
99.11 (1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
99.12Revenue Code does not apply;
99.13 (2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal
99.14Revenue Code must be applied by allowing a deduction for capital gain dividends and
99.15exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal
99.16Revenue Code; and
99.17 (3) the deduction for dividends paid must also be applied in the amount of any
99.18undistributed capital gains which the regulated investment company elects to have treated
99.19as provided in section 852(b)(3)(D) of the Internal Revenue Code.
99.20 The net income of a real estate investment trust as defined and limited by section
99.21856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust
99.22taxable income as defined in section 857(b)(2) of the Internal Revenue Code.
99.23 The net income of a designated settlement fund as defined in section 468B(d) of
99.24the Internal Revenue Code means the gross income as defined in section 468B(b) of the
99.25Internal Revenue Code.
99.26 The Internal Revenue Code of 1986, as amended through April 14, 2011, shall be in
99.27effect for taxable years beginning after December 31, 1996, and before January 1, 2012,
99.28and for taxable years beginning after December 31, 2012. The Internal Revenue Code of
99.291986, as amended through January 3, 2013, is in effect for taxable years beginning after
99.30December 31, 2011, and before January 1, 2013.
99.31The provisions of sections 315 and 331 of the American Taxpayer Relief Act of
99.322012, Public Law 112-240, extension of increased expensing limitations and treatment
99.33of certain real property as section 179 property and extension and modification of bonus
99.34depreciation, are effective at the same time they become effective for federal purposes.
100.1 Except as otherwise provided, references to the Internal Revenue Code in
100.2subdivisions 19 to 19f mean the code in effect for purposes of determining net income for
100.3the applicable year.
100.4EFFECTIVE DATE.This section is effective for taxable years beginning after
100.5December 31, 2012.
100.6 Sec. 7. Minnesota Statutes 2012, section 290.01, subdivision 19b, is amended to read:
100.7 Subd. 19b. Subtractions from federal taxable income. For individuals, estates,
100.8and trusts, there shall be subtracted from federal taxable income:
100.9 (1) net interest income on obligations of any authority, commission, or
100.10instrumentality of the United States to the extent includable in taxable income for federal
100.11income tax purposes but exempt from state income tax under the laws of the United States;
100.12 (2) if included in federal taxable income, the amount of any overpayment of income
100.13tax to Minnesota or to any other state, for any previous taxable year, whether the amount
100.14is received as a refund or as a credit to another taxable year's income tax liability;
100.15 (3) the amount paid to others, less the amount used to claim the credit allowed under
100.16section
100.17to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and
100.18transportation of each qualifying child in attending an elementary or secondary school
100.19situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a
100.20resident of this state may legally fulfill the state's compulsory attendance laws, which
100.21is not operated for profit, and which adheres to the provisions of the Civil Rights Act
100.22of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or
100.23tuition as defined in section
100.24"textbooks" includes books and other instructional materials and equipment purchased
100.25or leased for use in elementary and secondary schools in teaching only those subjects
100.26legally and commonly taught in public elementary and secondary schools in this state.
100.27Equipment expenses qualifying for deduction includes expenses as defined and limited in
100.28section
100.29books and materials used in the teaching of religious tenets, doctrines, or worship, the
100.30purpose of which is to instill such tenets, doctrines, or worship, nor does it include books
100.31or materials for, or transportation to, extracurricular activities including sporting events,
100.32musical or dramatic events, speech activities, driver's education, or similar programs. No
100.33deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or
100.34the qualifying child's vehicle to provide such transportation for a qualifying child. For
101.1purposes of the subtraction provided by this clause, "qualifying child" has the meaning
101.2given in section 32(c)(3) of the Internal Revenue Code;
101.3 (4) income as provided under section
101.4 (5) to the extent included in federal adjusted gross income, income realized on
101.5disposition of property exempt from tax under section
101.6 (6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E)
101.7of the Internal Revenue Code in determining federal taxable income by an individual
101.8who does not itemize deductions for federal income tax purposes for the taxable year, an
101.9amount equal to 50 percent of the excess of charitable contributions over $500 allowable
101.10as a deduction for the taxable year under section 170(a) of the Internal Revenue Code,
101.11under the provisions of Public Law 109-1 and Public Law 111-126;
101.12 (7) for individuals who are allowed a federal foreign tax credit for taxes that do not
101.13qualify for a credit under section
101.14of subnational foreign taxes for the taxable year, but not to exceed the total subnational
101.15foreign taxes reported in claiming the foreign tax credit. For purposes of this clause,
101.16"federal foreign tax credit" means the credit allowed under section 27 of the Internal
101.17Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed
101.18under section 904(c) of the Internal Revenue Code minus national level foreign taxes to
101.19the extent they exceed the federal foreign tax credit;
101.20 (8) in each of the five tax years immediately following the tax year in which an
101.21addition is required under subdivision 19a, clause (7), or 19c, clause
101.22of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
101.23delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount
101.24of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c,
101.25clause
101.26of any net operating loss under section 172 of the Internal Revenue Code generated for the
101.27tax year of the addition. The resulting delayed depreciation cannot be less than zero;
101.28 (9) job opportunity building zone income as provided under section
101.29 (10) to the extent included in federal taxable income, the amount of compensation
101.30paid to members of the Minnesota National Guard or other reserve components of the
101.31United States military for active service, excluding compensation for services performed
101.32under the Active Guard Reserve (AGR) program. For purposes of this clause, "active
101.33service" means (i) state active service as defined in section
101.34(1); or (ii) federally funded state active service as defined in section
101.355b
101.36subdivision 3
102.1 (11) to the extent included in federal taxable income, the amount of compensation
102.2paid to Minnesota residents who are members of the armed forces of the United States
102.3or United Nations for active duty performed under United States Code, title 10; or the
102.4authority of the United Nations;
102.5 (12) an amount, not to exceed $10,000, equal to qualified expenses related to a
102.6qualified donor's donation, while living, of one or more of the qualified donor's organs
102.7to another person for human organ transplantation. For purposes of this clause, "organ"
102.8means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow;
102.9"human organ transplantation" means the medical procedure by which transfer of a human
102.10organ is made from the body of one person to the body of another person; "qualified
102.11expenses" means unreimbursed expenses for both the individual and the qualified donor
102.12for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses
102.13may be subtracted under this clause only once; and "qualified donor" means the individual
102.14or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An
102.15individual may claim the subtraction in this clause for each instance of organ donation for
102.16transplantation during the taxable year in which the qualified expenses occur;
102.17 (13) in each of the five tax years immediately following the tax year in which an
102.18addition is required under subdivision 19a, clause (8), or 19c, clause
102.19of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth of
102.20the addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause
102.21 (13), in the case of a shareholder of a corporation that is an S corporation, minus the
102.22positive value of any net operating loss under section 172 of the Internal Revenue Code
102.23generated for the tax year of the addition. If the net operating loss exceeds the addition for
102.24the tax year, a subtraction is not allowed under this clause;
102.25 (14) to the extent included in the federal taxable income of a nonresident of
102.26Minnesota, compensation paid to a service member as defined in United States Code, title
102.2710, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief
102.28Act, Public Law 108-189, section 101(2);
102.29 (15) to the extent included in federal taxable income, the amount of national service
102.30educational awards received from the National Service Trust under United States Code,
102.31title 42, sections 12601 to 12604, for service in an approved Americorps National Service
102.32program;
102.33(16) to the extent included in federal taxable income, discharge of indebtedness
102.34income resulting from reacquisition of business indebtedness included in federal taxable
102.35income under section 108(i) of the Internal Revenue Code. This subtraction applies only
103.1to the extent that the income was included in net income in a prior year as a result of the
103.2addition under section
103.3(17) the amount of the net operating loss allowed under section
103.411
103.5(18) the amount of expenses not allowed for federal income tax purposes due
103.6to claiming the railroad track maintenance credit under section 45G(a) of the Internal
103.7Revenue Code.
103.8EFFECTIVE DATE.This section is effective for taxable years beginning after
103.9December 31, 2012.
103.10 Sec. 8. Minnesota Statutes 2012, section 290.01, subdivision 19c, is amended to read:
103.11 Subd. 19c. Corporations; additions to federal taxable income. For corporations,
103.12there shall be added to federal taxable income:
103.13 (1) the amount of any deduction taken for federal income tax purposes for income,
103.14excise, or franchise taxes based on net income or related minimum taxes, including but not
103.15limited to the tax imposed under section
103.16another state, a political subdivision of another state, the District of Columbia, or any
103.17foreign country or possession of the United States;
103.18 (2) interest not subject to federal tax upon obligations of: the United States, its
103.19possessions, its agencies, or its instrumentalities; the state of Minnesota or any other
103.20state, any of its political or governmental subdivisions, any of its municipalities, or any
103.21of its governmental agencies or instrumentalities; the District of Columbia; or Indian
103.22tribal governments;
103.23 (3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal
103.24Revenue Code;
103.25 (4) the amount of any net operating loss deduction taken for federal income tax
103.26purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations loss
103.27deduction under section 810 of the Internal Revenue Code;
103.28 (5) the amount of any special deductions taken for federal income tax purposes
103.29under sections 241 to 247 and 965 of the Internal Revenue Code;
103.30 (6) losses from the business of mining, as defined in section
103.31clause (a), that are not subject to Minnesota income tax;
103.32 (7) the amount of any capital losses deducted for federal income tax purposes under
103.33sections 1211 and 1212 of the Internal Revenue Code;
103.34
103.35
104.1
104.2614 and 291 of the Internal Revenue Code;
104.3
104.4beginning before December 31, 1986, and for which amortization deductions were elected
104.5under section 169 of the Internal Revenue Code of 1954, as amended through December
104.631, 1985, the amount of the amortization deduction allowed in computing federal taxable
104.7income for those facilities;
104.8
104.9
104.10
104.11
104.12
104.13through to the partner because the partnership elected to pay the tax on the income under
104.14section 6242(a)(2) of the Internal Revenue Code;
104.15
104.16
104.17
104.18Internal Revenue Code, for the taxable year when subpart F income is calculated without
104.19regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343;
104.20
104.21168(k)(1)(A) and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause, if
104.22the taxpayer has an activity that in the taxable year generates a deduction for depreciation
104.23under section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the taxable
104.24year that the taxpayer is not allowed to claim for the taxable year, "the depreciation
104.25allowed under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess
104.26of the depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A)
104.27over the amount of the loss from the activity that is not allowed in the taxable year. In
104.28succeeding taxable years when the losses not allowed in the taxable year are allowed, the
104.29depreciation under section 168(k)(1)(A) and (k)(4)(A) is allowed;
104.30
104.31the Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal
104.32Revenue Code of 1986, as amended through December 31, 2003;
104.33
104.34the deduction allowable under section 199 of the Internal Revenue Code;
104.35
104.36
105.1
105.2
105.3
105.4
105.5
105.6
105.7
105.8
105.9
105.10
105.11
105.12
105.13
105.14
105.15
105.16
105.17
105.18
105.19
105.20
105.21
105.22
105.23
105.24
105.25
105.26
105.27
105.28
105.29
105.30
105.31
105.32
105.33
105.34
105.35
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
106.17indebtedness and deferred under section 108(i) of the Internal Revenue Code.
106.18EFFECTIVE DATE.This section is effective for taxable years beginning after
106.19December 31, 2012.
106.20 Sec. 9. Minnesota Statutes 2012, section 290.01, subdivision 19d, is amended to read:
106.21 Subd. 19d. Corporations; modifications decreasing federal taxable income. For
106.22corporations, there shall be subtracted from federal taxable income after the increases
106.23provided in subdivision 19c:
106.24 (1) the amount of foreign dividend gross-up added to gross income for federal
106.25income tax purposes under section 78 of the Internal Revenue Code;
106.26 (2) the amount of salary expense not allowed for federal income tax purposes due to
106.27claiming the work opportunity credit under section 51 of the Internal Revenue Code;
106.28 (3) any dividend (not including any distribution in liquidation) paid within the
106.29taxable year by a national or state bank to the United States, or to any instrumentality of
106.30the United States exempt from federal income taxes, on the preferred stock of the bank
106.31owned by the United States or the instrumentality;
106.32 (4) amounts disallowed for intangible drilling costs due to differences between
106.33this chapter and the Internal Revenue Code in taxable years beginning before January
106.341, 1987, as follows:
107.1 (i) to the extent the disallowed costs are represented by physical property, an amount
107.2equal to the allowance for depreciation under Minnesota Statutes 1986, section
107.3subdivision 7
107.4 (ii) to the extent the disallowed costs are not represented by physical property, an
107.5amount equal to the allowance for cost depletion under Minnesota Statutes 1986, section
107.7 (5) the deduction for capital losses pursuant to sections 1211 and 1212 of the
107.8Internal Revenue Code, except that:
107.9 (i) for capital losses incurred in taxable years beginning after December 31, 1986,
107.10capital loss carrybacks shall not be allowed;
107.11 (ii) for capital losses incurred in taxable years beginning after December 31, 1986,
107.12a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be
107.13allowed;
107.14 (iii) for capital losses incurred in taxable years beginning before January 1, 1987, a
107.15capital loss carryback to each of the three taxable years preceding the loss year, subject to
107.16the provisions of Minnesota Statutes 1986, section
107.17 (iv) for capital losses incurred in taxable years beginning before January 1, 1987,
107.18a capital loss carryover to each of the five taxable years succeeding the loss year to the
107.19extent such loss was not used in a prior taxable year and subject to the provisions of
107.20Minnesota Statutes 1986, section
107.21 (6) an amount for interest and expenses relating to income not taxable for federal
107.22income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and
107.23expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or
107.24291 of the Internal Revenue Code in computing federal taxable income;
107.25 (7) in the case of mines, oil and gas wells, other natural deposits, and timber for
107.26which percentage depletion was disallowed pursuant to subdivision 19c, clause
107.27reasonable allowance for depletion based on actual cost. In the case of leases the deduction
107.28must be apportioned between the lessor and lessee in accordance with rules prescribed
107.29by the commissioner. In the case of property held in trust, the allowable deduction must
107.30be apportioned between the income beneficiaries and the trustee in accordance with the
107.31pertinent provisions of the trust, or if there is no provision in the instrument, on the basis
107.32of the trust's income allocable to each;
107.33 (8) for certified pollution control facilities placed in service in a taxable year
107.34beginning before December 31, 1986, and for which amortization deductions were elected
107.35under section 169 of the Internal Revenue Code of 1954, as amended through December
108.131, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes
108.21986, section
108.3 (9) amounts included in federal taxable income that are due to refunds of income,
108.4excise, or franchise taxes based on net income or related minimum taxes paid by the
108.5corporation to Minnesota, another state, a political subdivision of another state, the
108.6District of Columbia, or a foreign country or possession of the United States to the extent
108.7that the taxes were added to federal taxable income under
108.8clause (1), in a prior taxable year;
108.9
108.10
108.11
108.12
108.13
108.14
108.15subdivision 1
108.16
108.17allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code;
108.18
108.19tax purposes under section 280C(c) of the Internal Revenue Code, but only to the extent
108.20that the amount exceeds the amount of the credit allowed under section
108.21
108.22due to claiming the Indian employment credit under section 45A(a) of the Internal
108.23Revenue Code;
108.24
108.25
108.26
108.27
108.28
108.29
108.30
108.31
108.32Internal Revenue Code, for the taxable year when subpart F income is calculated without
108.33regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343;
108.34
108.35addition is required under subdivision 19c, clause
108.36of the delayed depreciation. For purposes of this clause, "delayed depreciation" means the
109.1amount of the addition made by the taxpayer under subdivision 19c, clause
109.2resulting delayed depreciation cannot be less than zero;
109.3
109.4addition is required under subdivision 19c, clause
109.5of the amount of the addition;
109.6
109.7income resulting from reacquisition of business indebtedness included in federal taxable
109.8income under section 108(i) of the Internal Revenue Code. This subtraction applies only
109.9to the extent that the income was included in net income in a prior year as a result of the
109.10addition under
109.11(18) the amount of expenses not allowed for federal income tax purposes due
109.12to claiming the railroad track maintenance credit under section 45G(a) of the Internal
109.13Revenue Code.
109.14EFFECTIVE DATE.This section is effective for taxable years beginning after
109.15December 31, 2012.
109.16 Sec. 10. Minnesota Statutes 2012, section 290.06, subdivision 2c, is amended to read:
109.17 Subd. 2c. Schedules of rates for individuals, estates, and trusts. (a) The income
109.18taxes imposed by this chapter upon married individuals filing joint returns and surviving
109.19spouses as defined in section 2(a) of the Internal Revenue Code must be computed by
109.20applying to their taxable net income the following schedule of rates:
109.21 (1) On the first
109.22 (2) On all over
109.23 (3) On all over
109.24(4) On all over $250,000, 9.85 percent.
109.25 Married individuals filing separate returns, estates, and trusts must compute their
109.26income tax by applying the above rates to their taxable income, except that the income
109.27brackets will be one-half of the above amounts.
109.28 (b) The income taxes imposed by this chapter upon unmarried individuals must be
109.29computed by applying to taxable net income the following schedule of rates:
109.30 (1) On the first
109.31 (2) On all over
109.32 (3) On all over
109.33(4) On all over $150,000, 9.85 percent.
110.1 (c) The income taxes imposed by this chapter upon unmarried individuals qualifying
110.2as a head of household as defined in section 2(b) of the Internal Revenue Code must be
110.3computed by applying to taxable net income the following schedule of rates:
110.4 (1) On the first
110.5 (2) On all over
110.6 (3) On all over
110.7(4) On all over $200,000, 9.85 percent.
110.8 (d) In lieu of a tax computed according to the rates set forth in this subdivision, the
110.9tax of any individual taxpayer whose taxable net income for the taxable year is less than
110.10an amount determined by the commissioner must be computed in accordance with tables
110.11prepared and issued by the commissioner of revenue based on income brackets of not
110.12more than $100. The amount of tax for each bracket shall be computed at the rates set
110.13forth in this subdivision, provided that the commissioner may disregard a fractional part of
110.14a dollar unless it amounts to 50 cents or more, in which case it may be increased to $1.
110.15 (e) An individual who is not a Minnesota resident for the entire year must compute
110.16the individual's Minnesota income tax as provided in this subdivision. After the
110.17application of the nonrefundable credits provided in this chapter, the tax liability must
110.18then be multiplied by a fraction in which:
110.19 (1) the numerator is the individual's Minnesota source federal adjusted gross income
110.20as defined in section 62 of the Internal Revenue Code and increased by the additions
110.21required under section
110.22(13), and (16) to (18), and reduced by the Minnesota assignable portion of the subtraction
110.23for United States government interest under section
110.24(1), and the subtractions under section
110.25(14), (16), and (17), after applying the allocation and assignability provisions of section
110.27 (2) the denominator is the individual's federal adjusted gross income as defined in
110.28section 62 of the Internal Revenue Code of 1986, increased by the amounts specified in
110.29section
110.30(18), and reduced by the amounts specified in section
110.31(8), (9), (13), (14), (16), and (17).
110.32EFFECTIVE DATE.This section is effective for taxable years beginning after
110.33December 31, 2012.
110.34 Sec. 11. Minnesota Statutes 2012, section 290.06, subdivision 2d, is amended to read:
111.1 Subd. 2d. Inflation adjustment of brackets. (a) For taxable years beginning after
111.2December 31,
111.3bracket for which a tax is imposed in subdivision 2c shall be adjusted for inflation by the
111.4percentage determined under paragraph (b). For the purpose of making the adjustment as
111.5provided in this subdivision all of the rate brackets provided in subdivision 2c shall be the
111.6rate brackets as they existed for taxable years beginning after December 31,
111.7and before January 1,
111.8changed. The dollar amounts setting forth the tax shall be adjusted to reflect the changes
111.9in the rate brackets. The rate brackets as adjusted must be rounded to the nearest $10
111.10amount. If the rate bracket ends in $5, it must be rounded up to the nearest $10 amount.
111.11(b) The commissioner shall adjust the rate brackets and by the percentage determined
111.12pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in
111.13section 1(f)(3)(B) the word
111.14
111.15ending on August 31,
111.16in each subsequent year, from the 12 months ending on August 31,
111.17months ending on August 31 of the year preceding the taxable year. The determination of
111.18the commissioner pursuant to this subdivision shall not be considered a "rule" and shall
111.19not be subject to the Administrative Procedure Act contained in chapter 14.
111.20No later than December 15 of each year, the commissioner shall announce the
111.21specific percentage that will be used to adjust the tax rate brackets.
111.22EFFECTIVE DATE.This section is effective for taxable years beginning after
111.23December 31, 2012.
111.24 Sec. 12. Minnesota Statutes 2012, section 290.06, is amended by adding a subdivision
111.25to read:
111.26 Subd. 36. Greater Minnesota internship credit. (a) A taxpayer who is an eligible
111.27employer may take a credit against the tax due under this chapter equal to the lesser of:
111.28(1) 40 percent of the compensation paid to an intern qualifying under the program
111.29established under section 136A.129, but not to exceed $2,000 per intern; or
111.30(2) the amount certified to the taxpayer by an eligible institution out of the
111.31institution's allocation of credits for the calendar year, as provided in section 136A.129.
111.32(b) Credits allowed to a partnership, a limited liability company taxed as a
111.33partnership, an S corporation, or multiple owners of property are passed through to the
111.34partners, members, shareholders, or owners, respectively, pro rata to each partner, member,
111.35shareholder, or owner based on their share of the entity's income for the taxable year.
112.1(c) If the amount of credit which the taxpayer is eligible to receive under this
112.2subdivision exceeds the taxpayer's tax liability under this chapter, the commissioner of
112.3revenue shall refund the excess to the taxpayer.
112.4(d) An amount necessary to pay claims for refund provided in this subdivision is
112.5appropriated from the general fund to the commissioner of revenue.
112.6(e) An amount equal to one percent of the total amount of the credits authorized
112.7under section 136A.129, subdivision 4, for an administrative fee for the Office of Higher
112.8Education and participating eligible institutions is appropriated from the general fund to
112.9the commissioner of revenue, for a transfer to the Office of Higher Education.
112.10(f) For purposes of this subdivision, the terms "eligible employer" and "eligible
112.11institution" have the meanings given in section 136A.129.
112.12EFFECTIVE DATE.This section is effective for taxable years beginning after
112.13December 31, 2013.
112.14 Sec. 13. Minnesota Statutes 2012, section 290.0677, subdivision 2, is amended to read:
112.15 Subd. 2. Definitions. (a) For purposes of this section, the following terms have
112.16the meanings given.
112.17 (b) "Designated area" means a:
112.18 (1) combat zone designated by Executive Order from the President of the United
112.19States;
112.20 (2) qualified hazardous duty area, designated in Public Law; or
112.21 (3) location certified by the U. S. Department of Defense as eligible for combat zone
112.22tax benefits due to the location's direct support of military operations.
112.23 (c) "Active military service" means active duty service in any of the United States
112.24armed forces, the National Guard, or reserves.
112.25 (d) "Qualified individual" means an individual who has:
112.26 (1)
112.27 (i) has served at least 20 years in the military
112.28 (ii) has a service-connected disability rating of 100 percent for a total and permanent
112.29disability; or
112.30 (iii) has been determined by the military to be eligible for compensation from a
112.31pension or other retirement pay from the federal government for service in the military,
112.32as computed under United States Code, title 10, sections 1401 to 1414, 1447 to 1455,
112.33or 12733; and
112.34 (2) separated from military service before the end of the taxable year.
113.1 (e) "Adjusted gross income" has the meaning given in section 61 of the Internal
113.2Revenue Code.
113.3EFFECTIVE DATE.This section is effective for taxable years beginning after
113.4December 31, 2012.
113.5 Sec. 14. Minnesota Statutes 2012, section 290.068, subdivision 3, is amended to read:
113.6 Subd. 3. Limitation; carryover. (a)(1) The credit for a taxable year beginning
113.7before January 1, 2010, and after December 31, 2012, shall not exceed the liability for tax.
113.8"Liability for tax" for purposes of this section means the sum of the tax imposed under
113.9section
113.10of the nonrefundable credits allowed under this chapter, on all of the entities required to
113.11be included on the combined report of the unitary business. If the amount of the credit
113.12allowed exceeds the liability for tax of the taxpayer, but is allowed as a result of the
113.13liability for tax of other members of the unitary group for the taxable year, the taxpayer
113.14must allocate the excess as a research credit to another member of the unitary group.
113.15 (2) In the case of a corporation which is a partner in a partnership, the credit allowed
113.16for the taxable year shall not exceed the lesser of the amount determined under clause (1)
113.17for the taxable year or an amount (separately computed with respect to the corporation's
113.18interest in the trade or business or entity) equal to the amount of tax attributable to that
113.19portion of taxable income which is allocable or apportionable to the corporation's interest
113.20in the trade or business or entity.
113.21 (b) If the amount of the credit determined under this section for any taxable year
113.22exceeds the limitation under clause (a) including amounts allocated to other members
113.23of the unitary group, the excess shall be a research credit carryover to each of the 15
113.24succeeding taxable years. The entire amount of the excess unused credit for the taxable
113.25year shall be carried first to the earliest of the taxable years to which the credit may be
113.26carried and then to each successive year to which the credit may be carried. The amount
113.27of the unused credit which may be added under this clause shall not exceed the taxpayer's
113.28liability for tax less the research credit for the taxable year.
113.29EFFECTIVE DATE.This section is effective for taxable years beginning after
113.30December 31, 2012.
113.31 Sec. 15. Minnesota Statutes 2012, section 290.068, subdivision 6a, is amended to read:
113.32 Subd. 6a. Credit to be refundable. If the amount of credit allowed in this section
113.33for qualified research expenses incurred in taxable years beginning after December 31,
114.12009, and before January 1, 2013, exceeds the taxpayer's tax liability under this chapter,
114.2the commissioner shall refund the excess amount. The credit allowed for qualified research
114.3expenses incurred in taxable years beginning after December 31, 2009, and before January
114.41, 2013, must be used before any research credit earned under subdivision 3.
114.5EFFECTIVE DATE.This section is effective for taxable years beginning after
114.6December 31, 2012.
114.7 Sec. 16. Minnesota Statutes 2012, section 290.0681, subdivision 1, is amended to read:
114.8 Subdivision 1. Definitions. (a) For purposes of this section, the following terms
114.9have the meanings given.
114.10(b) "Account" means the historic credit administration account in the special
114.11revenue fund.
114.12(c) "Office" means the State Historic Preservation Office of the Minnesota Historical
114.13Society.
114.14(d) "Project" means rehabilitation of a certified historic structure, as defined in
114.15section 47(c)(3)(A) of the Internal Revenue Code, that is located in Minnesota and is
114.16allowed a federal credit
114.17(e) "Society" means the Minnesota Historical Society.
114.18(f) "Federal credit" means the credit allowed under section 47(a)(2) of the Internal
114.19Revenue Code.
114.20(g) "Placed in service" has the meaning used in section 47 of the Internal Revenue
114.21Code.
114.22(h) "Qualified rehabilitation expenditures" has the meaning given in section 47 of
114.23the Internal Revenue Code.
114.24EFFECTIVE DATE.This section is effective the day following final enactment.
114.25 Sec. 17. Minnesota Statutes 2012, section 290.0681, subdivision 3, is amended to read:
114.26 Subd. 3. Applications; allocations. (a) To qualify for a credit or grant under this
114.27section, the developer of a project must apply to the office before the rehabilitation begins.
114.28The application must contain the information and be in the form prescribed by the office.
114.29The office may collect a fee for application of up to
114.30rehabilitation expenditures, up to $40,000, based on estimated qualified rehabilitation
114.31
114.32expenses related to administering the credit and preparing the economic impact report
114.33in subdivision 9. Application fees are deposited in the account. The application must
115.1indicate if the application is for a credit or a grant in lieu of the credit or a combination of
115.2the two and designate the taxpayer qualifying for the credit or the recipient of the grant.
115.3 (b) Upon approving an application for credit, the office shall issue allocation
115.4certificates that:
115.5 (1) verify eligibility for the credit or grant;
115.6 (2) state the amount of credit or grant anticipated with the project, with the credit
115.7amount equal to 100 percent and the grant amount equal to 90 percent of the federal
115.8credit anticipated in the application;
115.9 (3) state that the credit or grant allowed may increase or decrease if the federal
115.10credit the project receives at the time it is placed in service is different than the amount
115.11anticipated at the time the allocation certificate is issued; and
115.12 (4) state the fiscal year in which the credit or grant is allocated, and that the taxpayer
115.13or grant recipient is entitled to receive the credit or grant at the time the project is placed
115.14in service, provided that date is within three calendar years following the issuance of
115.15the allocation certificate.
115.16 (c) The office, in consultation with the commissioner
115.17if the project is eligible for a credit or a grant under this section and must notify the
115.18developer in writing of its determination. Eligibility for the credit is subject to review
115.19and audit by the commissioner
115.20 (d) The federal credit recapture and repayment requirements under section 50 of the
115.21Internal Revenue Code do not apply to the credit allowed under this section.
115.22(e) Any decision of the office under paragraph (c) may be challenged as a contested
115.23case under chapter 14. The contested case proceeding must be initiated within 45 days of
115.24the date of written notification by the office.
115.25EFFECTIVE DATE.This section is effective the day following final enactment
115.26and the change in paragraph (a) applies to applications first received on or after the day
115.27following final enactment.
115.28 Sec. 18. Minnesota Statutes 2012, section 290.0681, subdivision 4, is amended to read:
115.29 Subd. 4. Credit certificates; grants. (a)(1) The developer of a project for which the
115.30office has issued an allocation certificate must notify the office when the project is placed
115.31in service. Upon verifying that the project has been placed in service, and was allowed a
115.32federal credit, the office must issue a credit certificate to the taxpayer designated in the
115.33application or must issue a grant to the recipient designated in the application. The credit
115.34certificate must state the amount of the credit.
115.35 (2) The credit amount equals the federal credit allowed for the project.
116.1 (3) The grant amount equals 90 percent of the federal credit allowed for the project.
116.2 (b) The recipient of a credit certificate may assign the certificate to another taxpayer,
116.3which is then allowed the credit under this section or section
116.4assignment is not valid unless the assignee notifies the commissioner within 30 days of the
116.5date that the assignment is made. The commissioner shall prescribe the forms necessary
116.6for notifying the commissioner of the assignment of a credit certificate and for claiming
116.7a credit by assignment.
116.8 (c) Credits passed through to partners, members, shareholders, or owners pursuant to
116.9subdivision 5 are not an assignment of a credit certificate under this subdivision.
116.10 (d) A grant agreement between the office and the recipient of a grant may allow the
116.11grant to be issued to another individual or entity.
116.12EFFECTIVE DATE.This section is effective the day following final enactment.
116.13 Sec. 19. Minnesota Statutes 2012, section 290.0681, subdivision 5, is amended to read:
116.14 Subd. 5. Partnerships; multiple owners. Credits granted to a partnership, a limited
116.15liability company taxed as a partnership, S corporation, or multiple owners of property
116.16are passed through to the partners, members, shareholders, or owners, respectively, pro
116.17rata to each partner, member, shareholder, or owner based on their share of the entity's
116.18assets or as specially allocated in their organizational documents or any other executed
116.19agreement, as of the last day of the taxable year.
116.20EFFECTIVE DATE.This section is effective the day following final enactment.
116.21 Sec. 20. Minnesota Statutes 2012, section 290.0681, subdivision 10, is amended to read:
116.22 Subd. 10. Sunset. This section expires after fiscal year
116.23the office's authority to issue credit certificates under subdivision 4 based on allocation
116.24certificates that were issued before fiscal year
116.25 2024, and the reporting requirements in subdivision 9 remain in effect through the year
116.26following the year in which all allocation certificates have either been canceled or resulted
116.27in issuance of credit certificates, or
116.28EFFECTIVE DATE.This section is effective the day following final enactment.
116.29 Sec. 21. Minnesota Statutes 2012, section 290.091, subdivision 1, is amended to read:
116.30 Subdivision 1. Imposition of tax. In addition to all other taxes imposed by this
116.31chapter a tax is imposed on individuals, estates, and trusts equal to the excess (if any) of
117.1(a) an amount equal to
117.2subtracting the exemption amount, over
117.3(b) the regular tax for the taxable year.
117.4EFFECTIVE DATE.This section is effective for taxable years beginning after
117.5December 31, 2012.
117.6 Sec. 22. Minnesota Statutes 2012, section 290.091, subdivision 2, is amended to read:
117.7 Subd. 2. Definitions. For purposes of the tax imposed by this section, the following
117.8terms have the meanings given:
117.9 (a) "Alternative minimum taxable income" means the sum of the following for
117.10the taxable year:
117.11 (1) the taxpayer's federal alternative minimum taxable income as defined in section
117.1255(b)(2) of the Internal Revenue Code;
117.13 (2) the taxpayer's itemized deductions allowed in computing federal alternative
117.14minimum taxable income, but excluding:
117.15 (i) the charitable contribution deduction under section 170 of the Internal Revenue
117.16Code;
117.17 (ii) the medical expense deduction;
117.18 (iii) the casualty, theft, and disaster loss deduction; and
117.19 (iv) the impairment-related work expenses of a disabled person;
117.20 (3) for depletion allowances computed under section 613A(c) of the Internal
117.21Revenue Code, with respect to each property (as defined in section 614 of the Internal
117.22Revenue Code), to the extent not included in federal alternative minimum taxable income,
117.23the excess of the deduction for depletion allowable under section 611 of the Internal
117.24Revenue Code for the taxable year over the adjusted basis of the property at the end of the
117.25taxable year (determined without regard to the depletion deduction for the taxable year);
117.26 (4) to the extent not included in federal alternative minimum taxable income, the
117.27amount of the tax preference for intangible drilling cost under section 57(a)(2) of the
117.28Internal Revenue Code determined without regard to subparagraph (E);
117.29 (5) to the extent not included in federal alternative minimum taxable income, the
117.30amount of interest income as provided by section
117.31 (6) the amount of addition required by section
117.32to (9), (12), (13), and (16) to (18);
117.33 less the sum of the amounts determined under the following:
117.34 (1) interest income as defined in section
118.1 (2) an overpayment of state income tax as provided by section
118.219b
118.3 (3) the amount of investment interest paid or accrued within the taxable year on
118.4indebtedness to the extent that the amount does not exceed net investment income, as
118.5defined in section 163(d)(4) of the Internal Revenue Code. Interest does not include
118.6amounts deducted in computing federal adjusted gross income;
118.7 (4) amounts subtracted from federal taxable income as provided by section
118.8subdivision 19b
118.9(5) the amount of the net operating loss allowed under section
118.1011
118.11 In the case of an estate or trust, alternative minimum taxable income must be
118.12computed as provided in section 59(c) of the Internal Revenue Code.
118.13 (b) "Investment interest" means investment interest as defined in section 163(d)(3)
118.14of the Internal Revenue Code.
118.15 (c) "Net minimum tax" means the minimum tax imposed by this section.
118.16 (d) "Regular tax" means the tax that would be imposed under this chapter (without
118.17regard to this section and section 290.032), reduced by the sum of the nonrefundable
118.18credits allowed under this chapter.
118.19 (e) "Tentative minimum tax" equals
118.20income after subtracting the exemption amount determined under subdivision 3.
118.21EFFECTIVE DATE.This section is effective for taxable years beginning after
118.22December 31, 2012.
118.23 Sec. 23. Minnesota Statutes 2012, section 290.091, subdivision 6, is amended to read:
118.24 Subd. 6. Credit for prior years' liability. (a) A credit is allowed against the tax
118.25imposed by this chapter on individuals, trusts, and estates equal to the minimum tax
118.26credit for the taxable year. The minimum tax credit equals the adjusted net minimum
118.27tax for taxable years beginning after December 31, 1988, reduced by the minimum tax
118.28credits allowed in a prior taxable year. The credit may not exceed the excess (if any) for
118.29the taxable year of
118.30(1) the regular tax, over
118.31(2) the greater of (i) the tentative alternative minimum tax, or (ii) zero.
118.32(b) The adjusted net minimum tax for a taxable year equals the lesser of the net
118.33minimum tax or the excess (if any) of
118.34(1) the tentative minimum tax, over
118.35(2)
119.1(i) adjusted gross income as defined in section 62 of the Internal Revenue Code,
119.2(ii) interest income as defined in section
119.3(iii) interest on specified private activity bonds, as defined in section 57(a)(5) of the
119.4Internal Revenue Code, to the extent not included under clause (ii),
119.5(iv) depletion as defined in section 57(a)(1), determined without regard to the last
119.6sentence of paragraph (1), of the Internal Revenue Code, less
119.7(v) the deductions allowed in computing alternative minimum taxable income
119.8provided in subdivision 2, paragraph (a), clause (2) of the first series of clauses and clauses
119.9(1), (2), and (3) of the second series of clauses, and
119.10(vi) the exemption amount determined under subdivision 3.
119.11In the case of an individual who is not a Minnesota resident for the entire year,
119.12adjusted net minimum tax must be multiplied by the fraction defined in section
119.13subdivision 2c
119.14must be multiplied by the fraction defined under subdivision 4, paragraph (b).
119.15EFFECTIVE DATE.This section is effective for taxable years beginning after
119.16December 31, 2012.
119.17 Sec. 24. Minnesota Statutes 2012, section 290.0921, subdivision 3, is amended to read:
119.18 Subd. 3. Alternative minimum taxable income. "Alternative minimum taxable
119.19income" is Minnesota net income as defined in section
119.20includes the adjustments and tax preference items in sections 56, 57, 58, and 59(d), (e),
119.21(f), and (h) of the Internal Revenue Code. If a corporation files a separate company
119.22Minnesota tax return, the minimum tax must be computed on a separate company basis.
119.23If a corporation is part of a tax group filing a unitary return, the minimum tax must be
119.24computed on a unitary basis. The following adjustments must be made.
119.25(1) For purposes of the depreciation adjustments under section 56(a)(1) and
119.2656(g)(4)(A) of the Internal Revenue Code, the basis for depreciable property placed in
119.27service in a taxable year beginning before January 1, 1990, is the adjusted basis for federal
119.28income tax purposes, including any modification made in a taxable year under section
119.30paragraph (c).
119.31For taxable years beginning after December 31, 2000, the amount of any remaining
119.32modification made under section
119.33section
119.34allowance in the first taxable year after December 31, 2000.
120.1(2) The portion of the depreciation deduction allowed for federal income tax
120.2purposes under section 168(k) of the Internal Revenue Code that is required as an addition
120.3under section
120.4alternative minimum taxable income.
120.5(3) The subtraction for depreciation allowed under section
120.619d
120.7minimum taxable income.
120.8(4) The alternative tax net operating loss deduction under sections 56(a)(4) and 56(d)
120.9of the Internal Revenue Code does not apply.
120.10(5) The special rule for certain dividends under section 56(g)(4)(C)(ii) of the Internal
120.11Revenue Code does not apply.
120.12
120.13
120.14
120.15Revenue Code does not apply.
120.16
120.17Internal Revenue Code must be calculated without regard to subparagraph (E) and the
120.18subtraction under section
120.19
120.20Internal Revenue Code does not apply.
120.21
120.22under section 57(a)(6) of the Internal Revenue Code does not apply.
120.23
120.24or amortization on certain property placed in service before January 1, 1987, under section
120.2557(a)(7) of the Internal Revenue Code, the deduction allowable for the taxable year is the
120.26deduction allowed under section
120.27For taxable years beginning after December 31, 2000, the amount of any remaining
120.28modification made under section
120.29depreciation or amortization allowance in the first taxable year after December 31, 2004.
120.30
120.31in section 56(g) of the Internal Revenue Code, the term "alternative minimum taxable
120.32income" as it is used in section 56(g) of the Internal Revenue Code, means alternative
120.33minimum taxable income as defined in this subdivision, determined without regard to the
120.34adjustment for adjusted current earnings in section 56(g) of the Internal Revenue Code.
120.35
120.36section 56(g)(3) of the Internal Revenue Code, no adjustment shall be made under section
121.156(g)(4) of the Internal Revenue Code with respect to (i) the amount of foreign dividend
121.2gross-up subtracted as provided in section
121.3amount of refunds of income, excise, or franchise taxes subtracted as provided in section
121.5
121.6
121.7in a job opportunity building zone as provided under section
121.8
121.9in a biotechnology and health sciences industry zone as provided under section
121.10Items of tax preference must not be reduced below zero as a result of the
121.11modifications in this subdivision.
121.12EFFECTIVE DATE.This section is effective for taxable years beginning after
121.13December 31, 2012.
121.14 Sec. 25. Minnesota Statutes 2012, section 290.0922, subdivision 1, is amended to read:
121.15 Subdivision 1. Imposition. (a) In addition to the tax imposed by this chapter without
121.16regard to this section, the franchise tax imposed on a corporation required to file under
121.17section
121.18under section
121.33 (b) A tax is imposed for each taxable year on a corporation required to file a return
121.34under section
121.363
121.37tax imposed under this paragraph is due on or before the due date of the return for the
122.1taxpayer due under section
122.2the return to be used for payment of this tax. The tax under this paragraph is equal to
122.3the following amounts:
122.20 (c) The commissioner shall adjust the dollar amounts of both the tax and the property,
122.21payrolls, and sales or receipts thresholds in paragraphs (a) and (b) by the percentage
122.22determined pursuant to the provisions of section 1(f) of the Internal Revenue Code, except
122.23that in section 1(f)(3)(B) the word "2012" must be substituted for the word "1992." For
122.242014, the commissioner shall determine the percentage change from the 12 months ending
122.25on August 31, 2012, to the 12 months ending on August 31, 2013, and in each subsequent
122.26year, from the 12 months ending on August 31, 2012, to the 12 months ending on August
122.2731 of the year preceding the taxable year. The determination of the commissioner pursuant
122.28to this subdivision is not a "rule" subject to the Administrative Procedure Act contained in
122.29chapter 14. The tax amounts as adjusted must be rounded to the nearest $10 amount and
122.30the threshold amounts must be adjusted to the nearest $10,000 amount. For tax amounts
122.31that end in $5, the amount is rounded up to the nearest $10 amount and for the threshold
122.32amounts that end in $5,000, the amount is rounded up to the nearest $10,000.
122.33EFFECTIVE DATE.This section is effective for taxable years beginning after
122.34December 31, 2012.
122.35 Sec. 26. Minnesota Statutes 2012, section 290.095, subdivision 2, is amended to read:
122.36 Subd. 2. Defined and limited. (a) The term "net operating loss" as used in this
122.37section shall mean a net operating loss as defined in section 172(c) of the Internal Revenue
122.38Code, with the modifications specified in subdivision 4. The deductions provided in
123.1section
123.2
123.3(b) The term "net operating loss deduction" as used in this section means the
123.4aggregate of the net operating loss carryovers to the taxable year, computed in accordance
123.5with subdivision 3. The provisions of section 172(b) of the Internal Revenue Code relating
123.6to the carryback of net operating losses, do not apply.
123.7EFFECTIVE DATE.This section is effective for taxable years beginning after
123.8December 31, 2012.
123.9 Sec. 27. Minnesota Statutes 2012, section 290.10, subdivision 1, is amended to read:
123.10 Subdivision 1. Expenses, interest, and taxes.
123.11
123.12in any case be allowed for expenses, interest and taxes connected with or allocable against
123.13the production or receipt of all income not included in the measure of the tax imposed by
123.14this chapter, except that for corporations engaged in the business of mining or producing
123.15iron ore, the mining of which is subject to the occupation tax imposed by section
123.16subdivision 4
123.17that the expenses and other items are allowable under this chapter and are not deductible,
123.18capitalizable, retainable in basis, or taken into account by allowance or otherwise in
123.19computing the occupation tax and do not exceed the amounts taken for federal income tax
123.20purposes for that year. Occupation taxes imposed under chapter 298, royalty taxes imposed
123.21under chapter 299, or depletion expenses may not be deducted under this subdivision.
123.22 Sec. 28. Minnesota Statutes 2012, section 290.17, subdivision 4, is amended to read:
123.23 Subd. 4. Unitary business principle. (a) If a trade or business conducted wholly
123.24within this state or partly within and partly without this state is part of a unitary business,
123.25the entire income of the unitary business is subject to apportionment pursuant to section
123.27business is considered to be derived from any particular source and none may be allocated
123.28to a particular place except as provided by the applicable apportionment formula. The
123.29provisions of this subdivision do not apply to business income subject to subdivision 5,
123.30income of an insurance company, or income of an investment company determined under
123.31section
123.32(b) The term "unitary business" means business activities or operations which
123.33result in a flow of value between them. The term may be applied within a single legal
124.1entity or between multiple entities and without regard to whether each entity is a sole
124.2proprietorship, a corporation, a partnership or a trust.
124.3(c) Unity is presumed whenever there is unity of ownership, operation, and use,
124.4evidenced by centralized management or executive force, centralized purchasing,
124.5advertising, accounting, or other controlled interaction, but the absence of these
124.6centralized activities will not necessarily evidence a nonunitary business. Unity is also
124.7presumed when business activities or operations are of mutual benefit, dependent upon or
124.8contributory to one another, either individually or as a group.
124.9(d) Where a business operation conducted in Minnesota is owned by a business
124.10entity that carries on business activity outside the state different in kind from that
124.11conducted within this state, and the other business is conducted entirely outside the state, it
124.12is presumed that the two business operations are unitary in nature, interrelated, connected,
124.13and interdependent unless it can be shown to the contrary.
124.14(e) Unity of ownership
124.15more corporations are involved unless
124.16
124.17
124.18owners, either corporate or noncorporate, or by one or more of the member corporations
124.19of the group. For this purpose, the term "voting stock" shall include membership interests
124.20of mutual insurance holding companies formed under section
124.21(f) The net income and apportionment factors under section
124.22foreign corporations and other foreign entities which are part of a unitary business shall
124.23not be included in the net income or the apportionment factors of the unitary business;
124.24except that the income and apportionment factors of a foreign entity, other than an entity
124.25treated as a C corporation for federal income tax purposes, that are included in the federal
124.26taxable income, as defined in section 63 of the Internal Revenue Code as amended through
124.27the date named in section 290.01, subdivision 19, of a domestic corporation, domestic
124.28entity, or individual must be included in determining net income and the factors to be used
124.29in the apportionment of net income pursuant to section 290.191 or 290.20. A foreign
124.30corporation or other foreign entity which is not included on a combined report and which
124.31is required to file a return under this chapter shall file on a separate return basis.
124.32
124.33
124.34
124.35
124.36
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
125.18factors to be used in the apportionment of net income pursuant to section
125.20corporations or other domestic entities
125.21determined to be part of the unitary business pursuant to this subdivision, notwithstanding
125.22that foreign corporations or other foreign entities might be included in the unitary
125.23business; except that the income and apportionment factors of a foreign entity, other than
125.24an entity treated as a C corporation for federal income tax purposes, that is included in the
125.25federal taxable income, as defined in section 63 of the Internal Revenue Code as amended
125.26through the date named in section 290.01, subdivision 19, of a domestic corporation,
125.27domestic entity, or individual must be included in determining net income and the factors
125.28to be used in the apportionment of net income pursuant to section 290.191 or 290.20.
125.29
125.30
125.31
125.32
125.33
125.34a unitary business must file combined reports as the commissioner determines. On the
125.35reports, all intercompany transactions between entities included pursuant to paragraph
125.36 (g) must be eliminated and the entire net income of the unitary business determined in
126.1accordance with this subdivision is apportioned among the entities by using each entity's
126.2Minnesota factors for apportionment purposes in the numerators of the apportionment
126.3formula and the total factors for apportionment purposes of all entities included pursuant
126.4to paragraph
126.5otherwise provided by paragraph (f), all sales of the unitary business made within this
126.6state pursuant to section 290.191 or 290.20 must be included on the combined report of a
126.7corporation or other entity that is a member of the unitary business and is subject to the
126.8jurisdiction of this state to impose tax under this chapter.
126.9
126.10combined report for a fractional part of the common accounting period of the combined
126.11report:
126.12(1) its income includable in the combined report is its income incurred for that part
126.13of the year determined by proration or separate accounting; and
126.14(2) its sales, property, and payroll included in the apportionment formula must
126.15be prorated or accounted for separately.
126.16EFFECTIVE DATE.This section is effective for taxable years beginning after
126.17December 31, 2012.
126.18 Sec. 29. Minnesota Statutes 2012, section 290.191, subdivision 5, is amended to read:
126.19 Subd. 5. Determination of sales factor. For purposes of this section, the following
126.20rules apply in determining the sales factor.
126.21 (a) The sales factor includes all sales, gross earnings, or receipts received in the
126.22ordinary course of the business, except that the following types of income are not included
126.23in the sales factor:
126.24 (1) interest;
126.25 (2) dividends;
126.26 (3) sales of capital assets as defined in section 1221 of the Internal Revenue Code;
126.27 (4) sales of property used in the trade or business, except sales of leased property of
126.28a type which is regularly sold as well as leased; and
126.29 (5) sales of debt instruments as defined in section 1275(a)(1) of the Internal Revenue
126.30Code or sales of stock
126.31
126.32
126.33 (b) Sales of tangible personal property are made within this state if the property is
126.34received by a purchaser at a point within this state, and the taxpayer is taxable in this state,
127.1regardless of the f.o.b. point, other conditions of the sale, or the ultimate destination
127.2of the property.
127.3 (c) Tangible personal property delivered to a common or contract carrier or foreign
127.4vessel for delivery to a purchaser in another state or nation is a sale in that state or nation,
127.5regardless of f.o.b. point or other conditions of the sale.
127.6 (d) Notwithstanding paragraphs (b) and (c), when intoxicating liquor, wine,
127.7fermented malt beverages, cigarettes, or tobacco products are sold to a purchaser who is
127.8licensed by a state or political subdivision to resell this property only within the state of
127.9ultimate destination, the sale is made in that state.
127.10 (e) Sales made by or through a corporation that is qualified as a domestic
127.11international sales corporation under section 992 of the Internal Revenue Code are not
127.12considered to have been made within this state.
127.13 (f) Sales, rents, royalties, and other income in connection with real property is
127.14attributed to the state in which the property is located.
127.15 (g) Receipts from the lease or rental of tangible personal property, including finance
127.16leases and true leases, must be attributed to this state if the property is located in this
127.17state and to other states if the property is not located in this state. Receipts from the
127.18lease or rental of moving property including, but not limited to, motor vehicles, rolling
127.19stock, aircraft, vessels, or mobile equipment are included in the numerator of the receipts
127.20factor to the extent that the property is used in this state. The extent of the use of moving
127.21property is determined as follows:
127.22 (1) A motor vehicle is used wholly in the state in which it is registered.
127.23 (2) The extent that rolling stock is used in this state is determined by multiplying
127.24the receipts from the lease or rental of the rolling stock by a fraction, the numerator of
127.25which is the miles traveled within this state by the leased or rented rolling stock and the
127.26denominator of which is the total miles traveled by the leased or rented rolling stock.
127.27 (3) The extent that an aircraft is used in this state is determined by multiplying the
127.28receipts from the lease or rental of the aircraft by a fraction, the numerator of which is
127.29the number of landings of the aircraft in this state and the denominator of which is the
127.30total number of landings of the aircraft.
127.31 (4) The extent that a vessel, mobile equipment, or other mobile property is used in
127.32the state is determined by multiplying the receipts from the lease or rental of the property
127.33by a fraction, the numerator of which is the number of days during the taxable year the
127.34property was in this state and the denominator of which is the total days in the taxable year.
127.35 (h) Royalties and other income
127.36for the use of or for the privilege of using intangible property, including patents,
128.1know-how, formulas, designs, processes, patterns, copyrights, trade names, service names,
128.2franchises, licenses, contracts, customer lists, or similar items, must be attributed to the
128.3state in which the property is used by the purchaser. If the property is used in more
128.4than one state, the royalties or other income must be apportioned to this state pro rata
128.5according to the portion of use in this state. If the portion of use in this state cannot be
128.6determined, the royalties or other income must be excluded from both the numerator
128.7and the denominator. Intangible property is used in this state if the purchaser uses the
128.8intangible property or the rights therein in the regular course of its business operations in
128.9this state, regardless of the location of the purchaser's customers.
128.10 (i) Sales of intangible property are made within the state in which the property is
128.11used by the purchaser. If the property is used in more than one state, the sales must be
128.12apportioned to this state pro rata according to the portion of use in this state. If the
128.13portion of use in this state cannot be determined, the sale must be excluded from both the
128.14numerator and the denominator of the sales factor. Intangible property is used in this
128.15state if the purchaser used the intangible property in the regular course of its business
128.16operations in this state.
128.17 (j) Receipts from the performance of services must be attributed to the state where
128.18the services are received. For the purposes of this section, receipts from the performance
128.19of services provided to a corporation, partnership, or trust may only be attributed to a state
128.20where it has a fixed place of doing business. If the state where the services are received is
128.21not readily determinable or is a state where the corporation, partnership, or trust receiving
128.22the service does not have a fixed place of doing business, the services shall be deemed
128.23to be received at the location of the office of the customer from which the services were
128.24ordered in the regular course of the customer's trade or business. If the ordering office
128.25cannot be determined, the services shall be deemed to be received at the office of the
128.26customer to which the services are billed.
128.27 (k) For the purposes of this subdivision and subdivision 6, paragraph (l), receipts
128.28from management, distribution, or administrative services performed by a corporation
128.29or trust for a fund of a corporation or trust regulated under United States Code, title 15,
128.30sections 80a-1 through 80a-64, must be attributed to the state where the shareholder of
128.31the fund resides. Under this paragraph, receipts for services attributed to shareholders are
128.32determined on the basis of the ratio of: (1) the average of the outstanding shares in the
128.33fund owned by shareholders residing within Minnesota at the beginning and end of each
128.34year; and (2) the average of the total number of outstanding shares in the fund at the
128.35beginning and end of each year. Residence of the shareholder, in the case of an individual,
128.36is determined by the mailing address furnished by the shareholder to the fund. Residence
129.1of the shareholder, when the shares are held by an insurance company as a depositor for
129.2the insurance company policyholders, is the mailing address of the policyholders. In
129.3the case of an insurance company holding the shares as a depositor for the insurance
129.4company policyholders, if the mailing address of the policyholders cannot be determined
129.5by the taxpayer, the receipts must be excluded from both the numerator and denominator.
129.6Residence of other shareholders is the mailing address of the shareholder.
129.7EFFECTIVE DATE.This section is effective for taxable years beginning after
129.8December 31, 2012.
129.9 Sec. 30. Minnesota Statutes 2012, section 290.21, subdivision 4, is amended to read:
129.10 Subd. 4. Dividends received from another corporation. (a)(1) Eighty percent
129.11of dividends received by a corporation during the taxable year from another corporation,
129.12in which the recipient owns 20 percent or more of the stock, by vote and value, not
129.13including stock described in section 1504(a)(4) of the Internal Revenue Code when the
129.14corporate stock with respect to which dividends are paid does not constitute the stock in
129.15trade of the taxpayer or would not be included in the inventory of the taxpayer, or does not
129.16constitute property held by the taxpayer primarily for sale to customers in the ordinary
129.17course of the taxpayer's trade or business, or when the trade or business of the taxpayer
129.18does not consist principally of the holding of the stocks and the collection of the income
129.19and gains therefrom; and
129.20 (2)(i) the remaining 20 percent of dividends if the dividends received are the stock in
129.21an affiliated company transferred in an overall plan of reorganization and the dividend
129.22is eliminated in consolidation under Treasury Department Regulation 1.1502-14(a), as
129.23amended through December 31, 1989;
129.24 (ii) the remaining 20 percent of dividends if the dividends are received from a
129.25corporation which is subject to tax under section
129.26affiliated group of corporations as defined by the Internal Revenue Code and the dividend
129.27is eliminated in consolidation under Treasury Department Regulation 1.1502-14(a), as
129.28amended through December 31, 1989, or is deducted under an election under section
129.29243(b) of the Internal Revenue Code; or
129.30 (iii) the remaining 20 percent of the dividends if the dividends are received from a
129.31property and casualty insurer as defined under section
129.32member of an affiliated group of corporations as defined by the Internal Revenue Code
129.33and either: (A) the dividend is eliminated in consolidation under Treasury Regulation
129.341.1502-14(a), as amended through December 31, 1989; or (B) the dividend is deducted
129.35under an election under section 243(b) of the Internal Revenue Code.
130.1 (b) Seventy percent of dividends received by a corporation during the taxable year
130.2from another corporation in which the recipient owns less than 20 percent of the stock,
130.3by vote or value, not including stock described in section 1504(a)(4) of the Internal
130.4Revenue Code when the corporate stock with respect to which dividends are paid does not
130.5constitute the stock in trade of the taxpayer, or does not constitute property held by the
130.6taxpayer primarily for sale to customers in the ordinary course of the taxpayer's trade or
130.7business, or when the trade or business of the taxpayer does not consist principally of the
130.8holding of the stocks and the collection of income and gain therefrom.
130.9 (c) The dividend deduction provided in this subdivision shall be allowed only with
130.10respect to dividends that are included in a corporation's Minnesota taxable net income
130.11for the taxable year.
130.12 The dividend deduction provided in this subdivision does not apply to a dividend
130.13from a corporation which, for the taxable year of the corporation in which the distribution
130.14is made or for the next preceding taxable year of the corporation, is a corporation exempt
130.15from tax under section 501 of the Internal Revenue Code.
130.16The dividend deduction provided in this subdivision does not apply to a dividend
130.17received from a real estate investment trust as defined in section 856 of the Internal
130.18Revenue Code.
130.19 The dividend deduction provided in this subdivision applies to the amount of
130.20regulated investment company dividends only to the extent determined under section
130.21854(b) of the Internal Revenue Code.
130.22 The dividend deduction provided in this subdivision shall not be allowed with
130.23respect to any dividend for which a deduction is not allowed under the provisions of
130.24section 246(c) of the Internal Revenue Code.
130.25 (d) If dividends received by a corporation that does not have nexus with Minnesota
130.26under the provisions of Public Law 86-272 are included as income on the return of
130.27an affiliated corporation permitted or required to file a combined report under section
130.29determination as to whether the trade or business of the corporation consists principally
130.30of the holding of stocks and the collection of income and gains therefrom shall be made
130.31with reference to the trade or business of the affiliated corporation having a nexus with
130.32Minnesota.
130.33 (e) The deduction provided by this subdivision does not apply if the dividends are
130.34paid by a FSC as defined in section 922 of the Internal Revenue Code.
130.35 (f) If one or more of the members of the unitary group whose income is included on
130.36the combined report received a dividend, the deduction under this subdivision for each
131.1member of the unitary business required to file a return under this chapter is the product
131.2of: (1) 100 percent of the dividends received by members of the group; (2) the percentage
131.3allowed pursuant to paragraph (a) or (b); and (3) the percentage of the taxpayer's business
131.4income apportionable to this state for the taxable year under section
131.5EFFECTIVE DATE.This section is effective for taxable years beginning after
131.6December 31, 2012.
131.7 Sec. 31. Minnesota Statutes 2012, section 298.01, subdivision 3b, is amended to read:
131.8 Subd. 3b. Deductions. (a) For purposes of determining taxable income under
131.9subdivision 3, the deductions from gross income include only those expenses necessary
131.10to convert raw ores to marketable quality. Such expenses include costs associated with
131.11refinement but do not include expenses such as transportation, stockpiling, marketing, or
131.12marine insurance that are incurred after marketable ores are produced, unless the expenses
131.13are included in gross income. The allowable deductions from a mine or plant that mines
131.14and produces more than one mineral, metal, or energy resource must be determined
131.15separately for the purposes of computing the deduction in section
131.16clause
131.17at the deduction from gross income for all production.
131.18(b) The provisions of section
131.19clauses (7) and
131.20 Sec. 32. Laws 2010, chapter 216, section 11, the effective date, is amended to read:
131.21EFFECTIVE DATE.This section is effective for taxable years beginning
131.22after December 31, 2009, for certified historic structures for which qualified
131.23
131.24 rehabilitation expenditures are first paid by the developer or taxpayer after May 1, 2010,
131.25for rehabilitation that occurs after May 1, 2010, provided that the application under
131.26subdivision 3 is submitted before the project is placed in service.
131.27EFFECTIVE DATE.This section is effective the day following final enactment
131.28and applies retroactively for taxable years beginning after December 31, 2009, and for
131.29certified historic structures placed in service after May 1, 2010, but the office may not
131.30issue certificates allowed under the change to this section until July 1, 2013.
131.31 Sec. 33. ESTIMATED TAXES; EXCEPTIONS.
132.1No addition to tax, penalties, or interest may be made under Minnesota Statutes,
132.2section 289A.25, for any period before September 15, 2013, with respect to an
132.3underpayment of estimated tax, to the extent that the underpayment was created or
132.4increased by the increase in income tax rates under this article.
132.5EFFECTIVE DATE.This section is effective for taxable years beginning after
132.6December 31, 2012.
132.7 Sec. 34. REPEALER.
132.8Minnesota Statutes 2012, sections 290.01, subdivision 6b; 290.06, subdivision 22a;
132.9and 290.0921, subdivision 7, are repealed.
132.10EFFECTIVE DATE.This section is effective for taxable years beginning after
132.11December 31, 2012.
132.14 Section 1. Minnesota Statutes 2012, section 270B.01, subdivision 8, is amended to read:
132.15 Subd. 8. Minnesota tax laws. For purposes of this chapter only, unless expressly
132.16stated otherwise, "Minnesota tax laws" means:
132.17 (1) the taxes, refunds, and fees administered by or paid to the commissioner under
132.18chapters 115B, 289A (except taxes imposed under sections
132.19290, 290A, 291, 292, 295, 297A, 297B, and 297H, or any similar Indian tribal tax
132.20administered by the commissioner pursuant to any tax agreement between the state and
132.21the Indian tribal government, and includes any laws for the assessment, collection, and
132.22enforcement of those taxes, refunds, and fees; and
132.23 (2) section
132.24EFFECTIVE DATE.This section is effective for gifts made after December 31,
132.252012.
132.26 Sec. 2. Minnesota Statutes 2012, section 270B.03, subdivision 1, is amended to read:
132.27 Subdivision 1. Who may inspect. Returns and return information must, on request,
132.28be made open to inspection by or disclosure to the data subject. The request must be made
132.29in writing or in accordance with written procedures of the chief disclosure officer of the
132.30department that have been approved by the commissioner to establish the identification
132.31of the person making the request as the data subject. For purposes of this chapter, the
132.32following are the data subject:
133.1(1) in the case of an individual return, that individual;
133.2(2) in the case of an income tax return filed jointly, either of the individuals with
133.3respect to whom the return is filed;
133.4(3) in the case of a return filed by a business entity, an officer of a corporation,
133.5a shareholder owning more than one percent of the stock, or any shareholder of an S
133.6corporation; a general partner in a partnership; the owner of a sole proprietorship; a
133.7member or manager of a limited liability company; a participant in a joint venture; the
133.8individual who signed the return on behalf of the business entity; or an employee who is
133.9responsible for handling the tax matters of the business entity, such as the tax manager,
133.10bookkeeper, or managing agent;
133.11(4) in the case of an estate return:
133.12(i) the personal representative or trustee of the estate; and
133.13(ii) any beneficiary of the estate as shown on the federal estate tax return;
133.14(5) in the case of a trust return:
133.15(i) the trustee or trustees, jointly or separately; and
133.16(ii) any beneficiary of the trust as shown in the trust instrument;
133.17(6) if liability has been assessed to a transferee under section
133.181
133.19relating to the assessed liability;
133.20(7) in the case of an Indian tribal government or an Indian tribal government-owned
133.21entity,
133.22(i) the chair of the tribal government, or
133.23(ii) any person authorized by the tribal government;
133.24(8) in the case of a successor as defined in section
133.25(b), the successor is the data subject and information may be disclosed as provided by
133.26section
133.27(9) in the case of a gift return, the donor.
133.28EFFECTIVE DATE.This section is effective the day following final enactment.
133.29 Sec. 3. Minnesota Statutes 2012, section 289A.10, subdivision 1, is amended to read:
133.30 Subdivision 1. Return required. In the case of a decedent who has an interest in
133.31property with a situs in Minnesota, the personal representative must submit a Minnesota
133.32estate tax return to the commissioner, on a form prescribed by the commissioner, if:
133.33(1) a federal estate tax return is required to be filed; or
133.34(2) the sum of the federal gross estate and federal adjusted taxable gifts made within
133.35three years of the date of the decedent's death exceeds $1,000,000.
134.1The return must contain a computation of the Minnesota estate tax due. The return
134.2must be signed by the personal representative.
134.3EFFECTIVE DATE.This section is effective for estates of decedents dying after
134.4December 31, 2012.
134.5 Sec. 4. Minnesota Statutes 2012, section 291.005, subdivision 1, is amended to read:
134.6 Subdivision 1. Scope. Unless the context otherwise clearly requires, the following
134.7terms used in this chapter shall have the following meanings:
134.8 (1) "Commissioner" means the commissioner of revenue or any person to whom the
134.9commissioner has delegated functions under this chapter.
134.10 (2) "Federal gross estate" means the gross estate of a decedent as required to be valued
134.11and otherwise determined for federal estate tax purposes under the Internal Revenue Code.
134.12 (3) "Internal Revenue Code" means the United States Internal Revenue Code of
134.131986, as amended through
134.14provisions of
134.15
134.16Internal Revenue Code.
134.17 (4) "Minnesota adjusted taxable estate" means federal adjusted taxable estate as
134.18defined by section 2011(b)(3) of the Internal Revenue Code, plus
134.19(i) the amount of deduction for state death taxes allowed under section 2058 of the
134.20Internal Revenue Code;
134.21(ii) the amount of taxable gifts, as defined in section 292.16, and made by the
134.22decedent within three years of the decedent's date of death; less
134.23
134.24subdivision 9
134.2510
134.26 (5) "Minnesota gross estate" means the federal gross estate of a decedent after (a)
134.27excluding therefrom any property included therein which has its situs outside Minnesota,
134.28and (b) including therein any property omitted from the federal gross estate which is
134.29includable therein, has its situs in Minnesota, and was not disclosed to federal taxing
134.30authorities.
134.31 (6) "Nonresident decedent" means an individual whose domicile at the time of
134.32death was not in Minnesota.
134.33 (7) "Personal representative" means the executor, administrator or other person
134.34appointed by the court to administer and dispose of the property of the decedent. If there
134.35is no executor, administrator or other person appointed, qualified, and acting within this
135.1state, then any person in actual or constructive possession of any property having a situs in
135.2this state which is included in the federal gross estate of the decedent shall be deemed
135.3to be a personal representative to the extent of the property and the Minnesota estate tax
135.4due with respect to the property.
135.5 (8) "Resident decedent" means an individual whose domicile at the time of death
135.6was in Minnesota.
135.7 (9) "Situs of property" means, with respect to:
135.8 (i) real property, the state or country in which it is located;
135.9 (ii) tangible personal property, the state or country in which it was normally kept or
135.10located at the time of the decedent's death or for a gift of tangible personal property within
135.11three years of death, the state or country in which it was normally kept or located when
135.12the gift was executed; and
135.13 (iii) intangible personal property, the state or country in which the decedent was
135.14domiciled at death or for a gift of intangible personal property within three years of death,
135.15the state or country in which the decedent was domiciled when the gift was executed.
135.16 For a nonresident decedent with an ownership interest in a pass-through entity
135.17with assets that include real or tangible personal property, situs of the real or tangible
135.18personal property is determined as if the pass-through entity does not exist and the real
135.19or tangible personal property is personally owned by the decedent. If the pass-through
135.20entity is owned by a person or persons in addition to the decedent, ownership of the
135.21property is attributed to the decedent in proportion to the decedent's capital ownership
135.22share of the pass-through entity.
135.23(10) "Pass-through entity" includes the following:
135.24(i) an entity electing S corporation status under section 1362 of the Internal Revenue
135.25Code;
135.26(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;
135.27(iii) a single-member limited liability company or similar entity, regardless of
135.28whether it is taxed as an association or is disregarded for federal income tax purposes
135.29under Code of Federal Regulations, title 26, section 301.7701-3; or
135.30(iv) a trust to the extent the property is includible in the decedent's federal gross estate.
135.31EFFECTIVE DATE.This section is effective for decedents dying after December
135.3231, 2012.
135.33 Sec. 5. Minnesota Statutes 2012, section 291.03, subdivision 1, is amended to read:
135.34 Subdivision 1. Tax amount. (a) The tax imposed shall be an amount equal to the
135.35proportion of the maximum credit for state death taxes computed under section 2011 of
136.1the Internal Revenue Code, but using Minnesota adjusted taxable estate instead of federal
136.2adjusted taxable estate, as the Minnesota gross estate bears to the value of the federal
136.3gross estate. The tax is reduced by:
136.4 (1) the gift tax paid by the decedent under section 292.17 on gifts included in the
136.5Minnesota adjusted taxable estate and not subtracted as qualified farm or small business
136.6property; and
136.7 (2) any credit allowed under subdivision 1c.
136.8 (b) The tax determined under this subdivision must not be greater than the sum of
136.9the following amounts multiplied by a fraction, the numerator of which is the Minnesota
136.10gross estate and the denominator of which is the federal gross estate:
136.11 (1) the rates and brackets under section 2001(c) of the Internal Revenue Code
136.12multiplied by the sum of:
136.13 (i) the taxable estate, as defined under section 2051 of the Internal Revenue Code; plus
136.14 (ii) adjusted taxable gifts, as defined in section 2001(b) of the Internal Revenue
136.15Code; less
136.16(iii) the lesser of (A) the sum of the value of qualified small business property
136.17under subdivision 9, and the value of qualified farm property under subdivision 10, or
136.18(B) $4,000,000; less
136.19 (2) the amount of tax allowed under section 2001(b)(2) of the Internal Revenue
136.20Code; and less
136.21 (3) the federal credit allowed under section 2010 of the Internal Revenue Code.
136.22 (c) For purposes of this subdivision, "Internal Revenue Code" means the Internal
136.23Revenue Code of 1986, as amended through December 31, 2000.
136.24EFFECTIVE DATE.This section is effective for decedents dying after December
136.2531, 2012.
136.26 Sec. 6. Minnesota Statutes 2012, section 291.03, is amended by adding a subdivision
136.27to read:
136.28 Subd. 1c. Nonresident decedent tax credit. (a) The estate of a nonresident
136.29decedent that is subject to tax under this chapter on the value of Minnesota situs property
136.30held in a pass-through entity is allowed a credit against the tax due under this section
136.31equal to the lesser of:
136.32(1) the amount of estate or inheritance tax paid to another state that is attributable to
136.33the Minnesota situs property held in the pass-through entity; or
136.34(2) the amount of tax paid under this section attributable to the Minnesota situs
136.35property held in the pass-through entity.
137.1(b) The amount of tax attributable to the Minnesota situs property held in the
137.2pass-through entity must be determined by the increase in the estate or inheritance tax that
137.3results from including the market value of the property in the estate or treating the value
137.4as a taxable inheritance to the recipient of the property.
137.5EFFECTIVE DATE.This section is effective for decedents dying after December
137.631, 2012.
137.7 Sec. 7. Minnesota Statutes 2012, section 291.03, subdivision 8, is amended to read:
137.8 Subd. 8. Definitions. (a) For purposes of this section, the following terms have the
137.9meanings given in this subdivision.
137.10(b) "Family member" means a family member as defined in section 2032A(e)(2) of
137.11the Internal Revenue Code, or a trust whose present beneficiaries are all family members
137.12as defined in section 2032A(e)(2) of the Internal Revenue Code.
137.13(c) "Qualified heir" means a family member who acquired qualified property
137.14 upon the death of the decedent and satisfies the requirement under subdivision 9, clause
137.15
137.16(d) "Qualified property" means qualified small business property under subdivision
137.179 and qualified farm property under subdivision 10.
137.18EFFECTIVE DATE.This section is effective retroactively for estates of decedents
137.19dying after June 30, 2011.
137.20 Sec. 8. Minnesota Statutes 2012, section 291.03, subdivision 9, is amended to read:
137.21 Subd. 9. Qualified small business property. Property satisfying all of the following
137.22requirements is qualified small business property:
137.23(1) The value of the property was included in the federal adjusted taxable estate.
137.24(2) The property consists of the assets of a trade or business or shares of stock or
137.25other ownership interests in a corporation or other entity engaged in a trade or business.
137.26
137.27
137.28
137.29corporation or an ownership interest in another type of entity do not qualify under this
137.30subdivision if the shares or ownership interests are traded on a public stock exchange at
137.31any time during the three-year period ending on the decedent's date of death. For purposes
137.32of this subdivision, an ownership interest includes the interest the decedent is deemed to
137.33own under sections 2036, 2037, and 2038 of the Internal Revenue Code.
138.1(3) During the taxable year that ended before the decedent's death, the trade or
138.2business must not have been a passive activity within the meaning of section 469(c) of the
138.3Internal Revenue Code, and the decedent or the decedent's spouse must have materially
138.4participated in the trade or business within the meaning of section 469(h) of the Internal
138.5Revenue Code, excluding section 469(h)(3) of the Internal Revenue Code and any other
138.6provision provided by United States Treasury Department regulation that substitutes
138.7material participation in prior taxable years for material participation in the taxable year
138.8that ended before the decedent's death.
138.9(4) The gross annual sales of the trade or business were $10,000,000 or less for the
138.10last taxable year that ended before the date of the death of the decedent.
138.11
138.12securities, or assets not used in the operation of the trade or business. For property
138.13consisting of shares of stock or other ownership interests in an entity, the
138.14cash
138.15the trade or business held by the corporation or other entity must be deducted from the
138.16value of the property qualifying under this subdivision in proportion to the decedent's
138.17share of ownership of the entity on the date of death.
138.18
138.19decedent is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue
138.20Code, for the three-year period ending on the date of death of the decedent. In the case of
138.21a sole proprietor, if the property replaced similar property within the three-year period,
138.22the replacement property will be treated as having been owned for the three-year period
138.23ending on the date of death of the decedent.
138.24
138.25
138.26(7) For three years following the date of death of the decedent, the trade or business
138.27is not a passive activity within the meaning of section 469(c) of the Internal Revenue Code,
138.28and a family member materially participates in the operation of the trade or business within
138.29the meaning of section 469(h) of the Internal Revenue Code, excluding section 469(h)(3)
138.30of the Internal Revenue Code and any other provision provided by United States Treasury
138.31Department regulation that substitutes material participation in prior taxable years for
138.32material participation in the three years following the date of death of the decedent.
138.33(8) The estate and the qualified heir elect to treat the property as qualified small
138.34business property and agree, in the form prescribed by the commissioner, to pay the
138.35recapture tax under subdivision 11, if applicable.
139.1EFFECTIVE DATE.This section is effective retroactively for estates of decedents
139.2dying after June 30, 2011.
139.3 Sec. 9. Minnesota Statutes 2012, section 291.03, subdivision 10, is amended to read:
139.4 Subd. 10. Qualified farm property. Property satisfying all of the following
139.5requirements is qualified farm property:
139.6(1) The value of the property was included in the federal adjusted taxable estate.
139.7(2) The property consists of
139.8is owned by a person or entity that is either not subject to or is in compliance with section
139.10
139.11
139.12(3) For property taxes payable in the taxable year of the decedent's death, the
139.13property is classified as class 2a property under section 273.13, subdivision 23, and is
139.14classified as agricultural homestead, agricultural relative homestead, or special agricultural
139.15homestead under section 273.124.
139.16(4) The decedent continuously owned the property, including property the decedent
139.17is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code, for
139.18the three-year period ending on the date of death of the decedent either by ownership of
139.19the agricultural land or pursuant to holding an interest in an entity that is not subject to
139.20or is in compliance with section 500.24.
139.21
139.22
139.23section 273.13, subdivision 23, for three years following the date of death of the decedent.
139.24
139.25property and agree, in a form prescribed by the commissioner, to pay the recapture tax
139.26under subdivision 11, if applicable.
139.27EFFECTIVE DATE.This section is effective retroactively for estates of decedents
139.28dying after June 30, 2011.
139.29 Sec. 10. Minnesota Statutes 2012, section 291.03, subdivision 11, is amended to read:
139.30 Subd. 11. Recapture tax. (a) If, within three years after the decedent's death and
139.31before the death of the qualified heir, the qualified heir disposes of any interest in the
139.32qualified property, other than by a disposition to a family member, or a family member
139.33ceases to
139.34 satisfy the requirement under subdivision 9, clause (7); or 10, clause (5), an additional
140.1estate tax is imposed on the property. In the case of a sole proprietor, if the qualified heir
140.2replaces qualified small business property excluded under subdivision 9 with similar
140.3property, then the qualified heir will not be treated as having disposed of an interest in the
140.4qualified property.
140.5(b) The amount of the additional tax equals the amount of the exclusion claimed by
140.6the estate under subdivision 8, paragraph (d), multiplied by 16 percent.
140.7(c) The additional tax under this subdivision is due on the day which is six months
140.8after the date of the disposition or cessation in paragraph (a).
140.9EFFECTIVE DATE.This section is effective retroactively for estates of decedents
140.10dying after June 30, 2011.
140.11 Sec. 11. [292.16] DEFINITIONS.
140.12(a) For purposes of this chapter, the following definitions apply.
140.13(b) The definitions of terms defined in section 291.005 apply.
140.14(c) "Resident" has the meaning given in section 290.01, subdivision 7, paragraph (a).
140.15(d) "Taxable gifts" means:
140.16(1) the transfers by gift which are included in taxable gifts for federal gift tax
140.17purposes under the following sections of the Internal Revenue Code:
140.18(i) section 2503;
140.19(ii) sections 2511 to 2514; and
140.20(iii) sections 2516 to 2519; less
140.21(2) the deductions allowed in sections 2522 to 2524 of the Internal Revenue Code.
140.22EFFECTIVE DATE.This section is effective for taxable gifts made after June
140.2330, 2013.
140.24 Sec. 12. [292.17] GIFT TAX.
140.25 Subdivision 1. Imposition. (a) A tax is imposed on the transfer of property by gift
140.26by any individual resident or nonresident in an amount equal to ten percent of the amount
140.27of the taxable gift.
140.28(b) The donor is liable for payment of the tax. If the gift tax is not paid when due,
140.29the donee of any gift is personally liable for the tax to the extent of the value of the gift.
140.30 Subd. 2. Lifetime credit. A credit is allowed against the tax imposed under this
140.31section equal to $100,000. This credit applies to the cumulative amount of taxable gifts
140.32made by the donor during the donor's lifetime.
140.33 Subd. 3. Out-of-state gifts. Taxable gifts exclude the transfer of:
141.1(1) real property located outside of this state;
141.2(2) tangible personal property that was normally kept at a location outside of the
141.3state on the date the gift was executed; and
141.4(3) intangible personal property made by an individual who is not a resident at
141.5the time the gift was executed.
141.6EFFECTIVE DATE.This section is effective for taxable gifts made after June
141.730, 2013.
141.8 Sec. 13. [292.18] RETURNS.
141.9(a) Any individual who makes a taxable gift during the taxable year shall file a gift
141.10tax return in the form and manner prescribed by the commissioner.
141.11(b) If the donor dies before filing the return, the executor of the donor's will or
141.12the administrator of the donor's estate shall file the return. If the donor becomes legally
141.13incompetent before filing the return, the guardian or conservator shall file the return.
141.14(c) The return must include:
141.15(1) each gift made during the calendar year which is to be included in computing the
141.16taxable gifts;
141.17(2) the deductions claimed and allowable under section 292.16, paragraph (d),
141.18clause (2);
141.19(3) a description of the gift, and the donee's name, address, and Social Security
141.20number;
141.21(4) the fair market value of gifts not made in money; and
141.22(5) any other information the commissioner requires to administer the gift tax.
141.23EFFECTIVE DATE.This section is effective for taxable gifts made after June
141.2430, 2013.
141.25 Sec. 14. [292.19] FILING REQUIREMENTS.
141.26Gift tax returns must be filed by the April 15 following the close of the calendar
141.27year, except if a gift is made during the calendar year in which the donor dies, the return
141.28for the donor must be filed by the last date, including extensions, for filing the gift tax
141.29return for federal gift tax purposes for the donor.
141.30EFFECTIVE DATE.This section is effective for taxable gifts made after June
141.3130, 2013.
141.32 Sec. 15. [292.20] APPRAISAL OF PROPERTY; DECLARATION BY DONOR.
142.1The commissioner may require the donor or the donee to show the property subject to
142.2the tax under section 292.17 to the commissioner upon demand and may employ a suitable
142.3person to appraise the property. The donor shall submit a declaration, in a form prescribed
142.4by the commissioner and including any certification required by the commissioner, that the
142.5property shown by the donor on the gift tax return includes all of the property transferred by
142.6gift for the calendar year and not deductible under section 292.16, paragraph (d), clause (2).
142.7EFFECTIVE DATE.This section is effective for taxable gifts made after June
142.830, 2013.
142.9 Sec. 16. [292.21] ADMINISTRATIVE PROVISIONS.
142.10 Subdivision 1. Payment of tax; penalty for late payment. The tax imposed under
142.11section 292.17 is due and payable to the commissioner by the April 15 following the close
142.12of the calendar year during which the gift was made. The return required under section
142.13292.19 must be included with the payment. If a taxable gift is made during the calendar
142.14year in which the donor dies, the due date is the last date, including extensions, for filing
142.15the gift tax return for federal gift tax purposes for the donor. If any person fails to pay the
142.16tax due within the time specified under this section, a penalty applies equal to ten percent
142.17of the amount due and unpaid or $100, whichever is greater. The unpaid tax and penalty
142.18bear interest at the rate under section 270C.40 from the due date of the return.
142.19 Subd. 2. Extensions. The commissioner may, for good cause, extend the time for
142.20filing a gift tax return, if a written request is filed with a tentative return accompanied by a
142.21payment of the tax, which is estimated in the tentative return, on or before the last day for
142.22filing the return. Any person to whom an extension is granted must pay, in addition to the
142.23tax, interest at the rate under section 270C.40 from the date on which the tax would have
142.24been due without the extension.
142.25 Subd. 3. Changes in federal gift tax. If the amount of a taxpayer's taxable gifts
142.26for federal gift tax purposes, as reported on the taxpayer's federal gift tax return for any
142.27calendar year, is changed or corrected by the Internal Revenue Service or other officer
142.28of the United States or other competent authority, the taxpayer shall report the change or
142.29correction in federal taxable gifts within 180 days after the final determination of the change
142.30or correction, and concede the accuracy of the determination or provide a letter detailing
142.31how the federal determination is incorrect or does not change the Minnesota gift tax. Any
142.32taxpayer filing an amended federal gift tax return shall also file within 180 days an amended
142.33return under this chapter and shall include any information the commissioner requires. The
142.34time for filing the report or amended return may be extended by the commissioner upon due
142.35cause shown. Notwithstanding any limitation of time in this chapter, if, upon examination,
143.1the commissioner finds that the taxpayer is liable for the payment of an additional tax, the
143.2commissioner shall, within a reasonable time from the receipt of the report or amended
143.3return, notify the taxpayer of the amount of additional tax, together with interest computed
143.4at the rate under section 270C.40 from the date when the original tax was due and payable.
143.5Within 30 days of the mailing of the notice, the taxpayer shall pay the commissioner the
143.6amount of the additional tax and interest. If, upon examination of the report or amended
143.7return and related information, the commissioner finds that the taxpayer has overpaid the
143.8tax due the state, the commissioner shall refund the overpayment to the taxpayer.
143.9 Subd. 4. Application of federal rules. In administering the tax under this chapter,
143.10the commissioner shall apply the provisions of sections 2701 to 2704 of the Internal
143.11Revenue Code. The words "secretary or his delegate," as used in those sections of the
143.12Internal Revenue Code, mean the commissioner.
143.13EFFECTIVE DATE.This section is effective for taxable gifts made after June
143.1430, 2013.
143.17 Section 1. [116J.3738] QUALIFIED EXPANSIONS OF GREATER MINNESOTA
143.18BUSINESSES.
143.19 Subdivision 1. Definitions. (a) For purposes of this section, the following terms
143.20have the meanings given unless the context clearly indicates otherwise.
143.21(b) "Agricultural processing facility" means one or more facilities or operations
143.22that transform, package, sort, or grade livestock or livestock products, agricultural
143.23commodities, or plants or plant products into goods that are used for intermediate or final
143.24consumption including goods for nonfood use, and surrounding property.
143.25(c) "Business" means an individual, corporation, partnership, limited liability
143.26company, association, or any other entity engaged in operating a trade or business located
143.27in greater Minnesota.
143.28(d) "City" means a statutory or home rule charter city.
143.29(e) "Greater Minnesota" means the area of the state that excludes the metropolitan
143.30area, as defined in section 473.121, subdivision 2.
143.31(f) "Qualified business" means a business that satisfies the requirements of subdivision
143.322, has been certified under subdivision 3, and has not been terminated under subdivision 5.
143.33 Subd. 2. Qualified business. (a) A business is a qualified business if it satisfies the
143.34requirement of this paragraph and is not disqualified under the provisions of paragraph
143.35(b). To qualify, the business must:
144.1(1) have operated its trade or business in a city or cities in greater Minnesota for at
144.2least one year before applying under subdivision 3;
144.3(2) pay or agree to pay in the future each employee compensation, including benefits
144.4not mandated by law, that on an annualized basis equal at least 120 percent of the federal
144.5poverty level for a family of four;
144.6(3) plan and agree to expand its employment in one or more cities in greater Minnesota
144.7by the minimum number of employees required under subdivision 3, paragraph (c); and
144.8(4) received certification from the commissioner under subdivision 3 that it is a
144.9qualified business.
144.10(b) A business is not a qualified business if it is either:
144.11(1) primarily engaged in making retail sales to purchasers who are physically present
144.12at the business's location or locations in greater Minnesota; or
144.13(2) a public utility, as defined in section 336B.01.
144.14(c) The requirements in paragraph (a) that the business' operations and expansion be
144.15located in a city do not apply to an agricultural processing facility.
144.16 Subd. 3. Certification of qualified business. (a) A business may apply to the
144.17commissioner for certification as a qualified business under this section. The commissioner
144.18shall specify the form of the application, the manner and times for applying, and the
144.19information required to be included in the application. The commissioner may impose an
144.20application fee in an amount sufficient to defray the commissioner's cost of processing
144.21certifications. A business must file a copy of its application with the chief clerical officer
144.22of the city at the same time it applies to the commissioner. For an agricultural processing
144.23facility located outside the boundaries of a city, the business must file a copy of the
144.24application with the county auditor.
144.25(b) The commissioner shall certify each business as a qualified business that:
144.26(1) satisfies the requirements of subdivision 2;
144.27(2) the commissioner determines would not expand its operations in greater
144.28Minnesota without the tax incentives available under subdivision 4; and
144.29(3) enters a business subsidy agreement with the commissioner that pledges to
144.30satisfy the minimum expansion requirements of paragraph (c) within three years or less
144.31following execution of the agreement.
144.32The commissioner must act on an application within 60 days after its filing. Failure
144.33by the commissioner to take action within the 60-day period is deemed approval of the
144.34application.
144.35(c) The following minimum expansion requirements apply, based on the number of
144.36employees of the business at locations in greater Minnesota:
145.1(1) a business that employees 50 or fewer full-time equivalent employees in greater
145.2Minnesota when the agreement is executed must increase its employment by five or more
145.3full-time equivalent employees;
145.4(2) a business that employees more than 50 but fewer than 200 full-time equivalent
145.5employees in greater Minnesota when the agreement is executed must increase the number
145.6of its full-time equivalent employees in greater Minnesota by at least ten percent; or
145.7(3) a business that employees 200 or more full-time equivalent employees in greater
145.8Minnesota when the agreement is executed must increase its employment by at least 21
145.9full-time equivalent employees.
145.10(d) The city, or a county for an agricultural processing facility located outside the
145.11boundaries of a city, in which the business proposes to expand its operations may file
145.12comments supporting or opposing the application with the commissioner. The comments
145.13must be filed within 30 days after receipt by the city of the application and may include a
145.14notice of any contribution the city or county intends to make to encourage or support the
145.15business expansion, such as the use of tax increment financing, property tax abatement,
145.16additional city or county services, or other financial assistance.
145.17(e) Certification of a qualified business is effective for the 12-year period beginning
145.18on the first day of the calendar month immediately following execution of the business
145.19subsidy agreement.
145.20 Subd. 4. Available tax incentives. A qualified business is entitled to a sales tax
145.21exemption, as provided in section 297A.68, subdivision 49, for purchases made during the
145.22period the business was certified as a qualified business under this section.
145.23 Subd. 5. Termination of status as a qualified business. (a) The commissioner shall
145.24put in place a system for monitoring and ensuring that each certified business meets within
145.25three years or less the minimum expansion requirement in its business subsidy agreement
145.26and continues to satisfy those requirements for the rest of the duration of the certification
145.27under subdivision 3. This system must include regular reporting by the business to the
145.28commissioner of its baseline and current employment levels and any other information
145.29the commissioner determines may be useful to ensure compliance and for legislative
145.30evaluation of the effectiveness of the tax incentives.
145.31(b) A business ceases to be a qualified business and to qualify for the sales tax
145.32exemption under section 297A.68, subdivision 49, under this subdivision upon the earlier
145.33of the following dates:
145.34(1) the end of the duration of its designation under subdivision 3, paragraph (e),
145.35effective as provided under this subdivision or other provision of law for the tax incentive;
145.36or
146.1(2) the date the commissioner finds that the business has breached its business
146.2subsidy agreement and failed to satisfy the minimum expansion required by subdivision 3
146.3and its agreement.
146.4(c) A business may contest the commissioner's finding that it breached its business
146.5subsidy agreement under paragraph (b), clause (2), under the contested case procedures in
146.6the Administrative Procedure Act, chapter 14.
146.7(d) The commissioner, after consulting with the commissioner of revenue, may
146.8waive a breach of the business subsidy agreement and permit continued receipt of tax
146.9incentives, if the commissioner determines that termination of the tax incentives is not in
146.10the best interest of the state or the local government units and the business' breach of the
146.11agreement is a result of circumstances beyond its control including, but not limited to:
146.12(1) a natural disaster;
146.13(2) unforeseen industry trends;
146.14(3) a decline in economic activity in the overall or greater Minnesota economy; or
146.15(4) loss of a major supplier or customer of the business.
146.16EFFECTIVE DATE.This section is effective the day following final enactment.
146.17 Sec. 2. Minnesota Statutes 2012, section 297A.61, subdivision 3, is amended to read:
146.18 Subd. 3. Sale and purchase. (a) "Sale" and "purchase" include, but are not limited
146.19to, each of the transactions listed in this subdivision. In applying the provisions of this
146.20chapter, the terms "tangible personal property" and "retail sale" include the taxable
146.21services listed in paragraph (g), clause (6), items (i) to (vi) and (viii), and the provision
146.22of these taxable services, unless specifically provided otherwise. Services performed by
146.23an employee for an employer are not taxable. Services performed by a partnership or
146.24association for another partnership or association are not taxable if one of the entities owns
146.25or controls more than 80 percent of the voting power of the equity interest in the other
146.26entity. Services performed between members of an affiliated group of corporations are not
146.27taxable. For purposes of the preceding sentence, "affiliated group of corporations" means
146.28those entities that would be classified as members of an affiliated group as defined under
146.29United States Code, title 26, section 1504, disregarding the exclusions in section 1504(b).
146.30 (b) Sale and purchase include:
146.31 (1) any transfer of title or possession, or both, of tangible personal property, whether
146.32absolutely or conditionally, for a consideration in money or by exchange or barter; and
146.33 (2) the leasing of or the granting of a license to use or consume, for a consideration
146.34in money or by exchange or barter, tangible personal property, other than a manufactured
146.35home used for residential purposes for a continuous period of 30 days or more.
147.1 (c) Sale and purchase include the production, fabrication, printing, or processing of
147.2tangible personal property for a consideration for consumers who furnish either directly or
147.3indirectly the materials used in the production, fabrication, printing, or processing.
147.4 (d) Sale and purchase include the preparing for a consideration of food.
147.5Notwithstanding section
147.6to, the following:
147.7 (1) prepared food sold by the retailer;
147.8 (2) soft drinks;
147.9 (3) candy;
147.10 (4) dietary supplements; and
147.11 (5) all food sold through vending machines.
147.12 (e) A sale and a purchase includes the furnishing for a consideration of electricity,
147.13gas, water, or steam for use or consumption within this state.
147.14 (f) A sale and a purchase includes
147.15 the transfer for a consideration of prewritten computer software whether delivered
147.16electronically, by load and leave, or otherwise.
147.17 (g) A sale and a purchase includes the furnishing for a consideration of the following
147.18services:
147.19 (1) the privilege of admission to places of amusement, recreational areas, or athletic
147.20events, and the making available of amusement devices, tanning facilities, reducing
147.21salons, steam baths, Turkish baths, health clubs, and spas or athletic facilities;
147.22 (2) lodging and related services by a hotel, rooming house, resort, campground,
147.23motel, or trailer camp, including furnishing the guest of the facility with access to
147.24telecommunication services, and the granting of any similar license to use real property in
147.25a specific facility, other than the renting or leasing of it for a continuous period of 30 days
147.26or more under an enforceable written agreement that may not be terminated without prior
147.27notice and including accommodations intermediary services provided in connection with
147.28other services provided under this clause;
147.29 (3) nonresidential parking services, whether on a contractual, hourly, or other
147.30periodic basis, except for parking at a meter;
147.31 (4) the granting of membership in a club, association, or other organization if:
147.32 (i) the club, association, or other organization makes available for the use of its
147.33members sports and athletic facilities, without regard to whether a separate charge is
147.34assessed for use of the facilities; and
147.35 (ii) use of the sports and athletic facility is not made available to the general public
147.36on the same basis as it is made available to members.
148.1Granting of membership means both onetime initiation fees and periodic membership
148.2dues. Sports and athletic facilities include golf courses; tennis, racquetball, handball, and
148.3squash courts; basketball and volleyball facilities; running tracks; exercise equipment;
148.4swimming pools; and other similar athletic or sports facilities;
148.5 (5) delivery of aggregate materials by a third party, excluding delivery of aggregate
148.6material used in road construction; and delivery of concrete block by a third party if the
148.7delivery would be subject to the sales tax if provided by the seller of the concrete block.
148.8For purposes of this clause, "road construction" means construction of:
148.9 (i) public roads;
148.10 (ii) cartways; and
148.11 (iii) private roads in townships located outside of the seven-county metropolitan area
148.12up to the point of the emergency response location sign; and
148.13 (6) services as provided in this clause:
148.14 (i) laundry and dry cleaning services including cleaning, pressing, repairing, altering,
148.15and storing clothes, linen services and supply, cleaning and blocking hats, and carpet,
148.16drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not
148.17include services provided by coin operated facilities operated by the customer;
148.18 (ii) motor vehicle washing, waxing, and cleaning services, including services
148.19provided by coin operated facilities operated by the customer, and rustproofing,
148.20undercoating, and towing of motor vehicles;
148.21 (iii) building and residential cleaning, maintenance, and disinfecting services and
148.22pest control and exterminating services;
148.23 (iv) detective, security, burglar, fire alarm, and armored car services; but not
148.24including services performed within the jurisdiction they serve by off-duty licensed peace
148.25officers as defined in section
148.26organization or any organization at the direction of a county for monitoring and electronic
148.27surveillance of persons placed on in-home detention pursuant to court order or under the
148.28direction of the Minnesota Department of Corrections;
148.29 (v) pet grooming services;
148.30 (vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting
148.31and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor
148.32plant care; tree, bush, shrub, and stump removal, except when performed as part of a land
148.33clearing contract as defined in section
148.34public utility lines. Services performed under a construction contract for the installation of
148.35shrubbery, plants, sod, trees, bushes, and similar items are not taxable;
149.1 (vii) massages, except when provided by a licensed health care facility or
149.2professional or upon written referral from a licensed health care facility or professional for
149.3treatment of illness, injury, or disease; and
149.4 (viii) the furnishing of lodging, board, and care services for animals in kennels and
149.5other similar arrangements, but excluding veterinary and horse boarding services.
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 (h) A sale and a purchase includes the furnishing for a consideration of tangible
149.21personal property or taxable services by the United States or any of its agencies or
149.22instrumentalities, or the state of Minnesota, its agencies, instrumentalities, or political
149.23subdivisions.
149.24 (i) A sale and a purchase includes the furnishing for a consideration of
149.25telecommunications services, ancillary services associated with telecommunication
149.26services,
149.27services include, but are not limited to, the following services, as defined in section
149.29postpaid calling service, prepaid calling service, prepaid wireless calling service, and
149.30private communication services. The services in this paragraph are taxed to the extent
149.31allowed under federal law.
149.32 (j) A sale and a purchase includes the furnishing for a consideration of installation if
149.33the installation charges would be subject to the sales tax if the installation were provided
149.34by the seller of the item being installed.
149.35 (k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer
149.36to a customer when (1) the vehicle is rented by the customer for a consideration, or (2)
150.1the motor vehicle dealer is reimbursed pursuant to a service contract as defined in section
150.3 (l) A sale and a purchase includes furnishing for a consideration of specified digital
150.4products or other digital products or granting the right for a consideration to use specified
150.5digital products or other digital products on a temporary or permanent basis and regardless
150.6of whether the purchaser is required to make continued payments for such right. Wherever
150.7the term "tangible personal property" is used in this chapter, other than in subdivisions 10
150.8and 38, the provisions also apply to specified digital products, or other digital products,
150.9unless specifically provided otherwise or the context indicates otherwise.
150.10(m) A sale and purchase includes the furnishing for consideration of the following
150.11services:
150.12(1) repairing and maintaining electronic and precision equipment, which service can
150.13be deducted as a business expense under the Internal Revenue Code. This includes, but
150.14is not limited to, repair or maintenance of electronic devices, computers and computer
150.15peripherals, monitors, computer terminals, storage devices, and CD-ROM drives; other
150.16office equipment such as photocopying machines, printers, and facsimile machines;
150.17televisions, stereos, sound systems, video or digital recorders and players; two-way radios
150.18and other communications equipment; radar and sonar equipment, scientific instruments,
150.19microscopes, and medical equipment;
150.20(2) repairing and maintaining commercial and industrial machinery and equipment.
150.21For purposes of this subdivision, the following items are not commercial or industrial
150.22machinery and equipment: (i) motor vehicles; (ii) furniture and fixtures; (iii) ships; (iv)
150.23railroad stock; and (v) aircraft; and
150.24(3) warehousing or storage services for tangible personal property, excluding:
150.25(i) agricultural products;
150.26(ii) refrigerated storage;
150.27(iii) electronic data; and
150.28(iv) self-storage services and storage of motor vehicles, recreational vehicles, and
150.29boats, not eligible to be deducted as a business expense under the Internal Revenue Code.
150.30EFFECTIVE DATE.This section is effective for sales and purchases made after
150.31June 30, 2013, except that paragraph (m), clause (3), is effective for sales and purchases
150.32made after March 31, 2014.
150.33 Sec. 3. Minnesota Statutes 2012, section 297A.61, subdivision 4, is amended to read:
150.34 Subd. 4. Retail sale. (a) A "retail sale" means:
151.1 (1) any sale, lease, or rental of tangible personal propertyfor any purpose, other than
151.2resale, sublease, or subrent of items by the purchaser in the normal course of business
151.3as defined in subdivision 21; and
151.4 (2) any sale of a service enumerated in subdivision 3, for any purpose other than
151.5resale by the purchaser in the normal course of business as defined in subdivision 21.
151.6 (b) A sale of property used by the owner only by leasing it to others or by holding it
151.7in an effort to lease it, and put to no use by the owner other than resale after the lease or
151.8effort to lease, is a sale of property for resale.
151.9 (c) A sale of master computer software that is purchased and used to make copies for
151.10sale or lease is a sale of property for resale.
151.11 (d) A sale of building materials, supplies, and equipment to owners, contractors,
151.12subcontractors, or builders for the erection of buildings or the alteration, repair, or
151.13improvement of real property is a retail sale in whatever quantity sold, whether the sale is
151.14for purposes of resale in the form of real property or otherwise.
151.15 (e) A sale of carpeting, linoleum, or similar floor covering to a person who provides
151.16for installation of the floor covering is a retail sale and not a sale for resale since a sale of
151.17floor covering which includes installation is a contract for the improvement of real property.
151.18 (f) A sale of shrubbery, plants, sod, trees, and similar items to a person who provides
151.19for installation of the items is a retail sale and not a sale for resale since a sale of
151.20shrubbery, plants, sod, trees, and similar items that includes installation is a contract for
151.21the improvement of real property.
151.22 (g) A sale of tangible personal property that is awarded as prizes is a retail sale and
151.23is not considered a sale of property for resale.
151.24 (h) A sale of tangible personal property utilized or employed in the furnishing or
151.25providing of services under subdivision 3, paragraph (g), clause (1), including, but not
151.26limited to, property given as promotional items, is a retail sale and is not considered a
151.27sale of property for resale.
151.28 (i) A sale of tangible personal property used in conducting lawful gambling under
151.29chapter 349 or the State Lottery under chapter 349A, including, but not limited to, property
151.30given as promotional items, is a retail sale and is not considered a sale of property for resale.
151.31 (j) a sale of machines, equipment, or devices that are used to furnish, provide, or
151.32dispense goods or services, including, but not limited to, coin-operated devices, is a retail
151.33sale and is not considered a sale of property for resale.
151.34 (k) In the case of a lease, a retail sale occurs (1) when an obligation to make a lease
151.35payment becomes due under the terms of the agreement or the trade practices of the
151.36lessor or (2) in the case of a lease of a motor vehicle, as defined in section
152.1subdivision 11
152.2greater than 10,000 pounds and rentals of vehicles for not more than 28 days, at the time
152.3the lease is executed.
152.4 (l) In the case of a conditional sales contract, a retail sale occurs upon the transfer of
152.5title or possession of the tangible personal property.
152.6 (m) A sale of a bundled transaction in which one or more of the products included
152.7in the bundle is a taxable product is a retail sale, except that if one of the products
152.8is a telecommunication service, ancillary service, Internet access, or audio or video
152.9programming service, and the seller has maintained books and records identifying through
152.10reasonable and verifiable standards the portions of the price that are attributable to the
152.11distinct and separately identifiable products, then the products are not considered part of a
152.12bundled transaction. For purposes of this paragraph:
152.13 (1) the books and records maintained by the seller must be maintained in the regular
152.14course of business, and do not include books and records created and maintained by the
152.15seller primarily for tax purposes;
152.16 (2) books and records maintained in the regular course of business include, but are
152.17not limited to, financial statements, general ledgers, invoicing and billing systems and
152.18reports, and reports for regulatory tariffs and other regulatory matters; and
152.19 (3) books and records are maintained primarily for tax purposes when the books
152.20and records identify taxable and nontaxable portions of the price, but the seller maintains
152.21other books and records that identify different prices attributable to the distinct products
152.22included in the same bundled transaction.
152.23 (n) A sale of motor vehicle repair paint and materials by a motor vehicle repair or
152.24body shop business is a retail sale and the sales tax is imposed on the gross receipts from the
152.25retail sale of the paint and materials. The motor vehicle repair or body shop that purchases
152.26motor vehicle repair paint and motor vehicle repair materials for resale must either:
152.27 (1) separately state each item of paint and each item of materials, and the sales price
152.28of each, on the invoice to the purchaser; or
152.29 (2) in order to calculate the sales price of the paint and materials, use a method
152.30which estimates the amount and monetary value of the paint and materials used in
152.31the repair of the motor vehicle by multiplying the number of labor hours by a rate of
152.32consideration for the paint and materials used in the repair of the motor vehicle following
152.33industry standard practices that fairly calculate the gross receipts from the retail sale of
152.34the motor vehicle repair paint and motor vehicle repair materials. An industry standard
152.35practice fairly calculates the gross receipts if the sales price of the paint and materials used
152.36or consumed in the repair of a motor vehicle equals or exceeds the purchase price paid
153.1by the motor vehicle repair or body shop business. Under this clause, the invoice must
153.2either separately state the "paint and materials" as a single taxable item, or separately state
153.3"paint" as a taxable item and "materials" as a taxable item. This clause does not apply to
153.4wholesale transactions at an auto auction facility.
153.5 (o) A sale of specified digital products or other digital products to an end user with
153.6or without rights of permanent use and regardless of whether rights of use are conditioned
153.7upon payment by the purchaser is a retail sale. When a digital code has been purchased that
153.8relates to specified digital products or other digital products, the subsequent receipt of or
153.9access to the related specified digital products or other digital products is not a retail sale.
153.10 (p) A payment made to a cooperative electric association or public utility as a
153.11contribution in aid of construction is a contract for improvement to real property and
153.12is not a retail sale.
153.13EFFECTIVE DATE.This section is effective for sales and purchases made after
153.14June 30, 2013.
153.15 Sec. 4. Minnesota Statutes 2012, section 297A.61, subdivision 10, is amended to read:
153.16 Subd. 10. Tangible personal property. (a) "Tangible personal property" means
153.17personal property that can be seen, weighed, measured, felt, or touched, or that is in any
153.18other manner perceptible to the senses. "Tangible personal property" includes, but is not
153.19limited to, electricity, water, gas, steam, and prewritten computer software.
153.20 (b) Tangible personal property does not include:
153.21 (1) large ponderous machinery and equipment used in a business or production
153.22activity which at common law would be considered to be real property;
153.23 (2) property which is subject to an ad valorem property tax;
153.24 (3) property described in section
153.25 (4) property described in section
153.26(5) specified digital products, or other digital products, transferred electronically.
153.27EFFECTIVE DATE.This section is effective for sales and purchases made after
153.28June 30, 2013.
153.29 Sec. 5. Minnesota Statutes 2012, section 297A.61, subdivision 25, is amended to read:
153.30 Subd. 25.
153.31the transmission of video, audio, or other programming service to purchasers, and the
153.32subscriber interaction, if any, required for the selection or use of the programming service,
153.33regardless of whether the programming is transmitted over facilities owned or operated
154.1by the cable service provider or over facilities owned or operated by one or more dealers
154.2of communications services. The term includes point-to-multipoint distribution direct to
154.3home satellite services by which programming is transmitted or broadcast by microwave
154.4or other equipment directly to the subscriber's premises, or any similar or comparable
154.5method of service. The term includes
154.6including subscriptions, digital video recorders, pay-per-view,
154.7EFFECTIVE DATE.This section is effective for sales and purchases made after
154.8June 30, 2013.
154.9 Sec. 6. Minnesota Statutes 2012, section 297A.61, subdivision 38, is amended to read:
154.10 Subd. 38. Bundled transaction. (a) "Bundled transaction" means the retail sale
154.11of two or more products when the products are otherwise distinct and identifiable, and
154.12the products are sold for one nonitemized price. As used in this subdivision, "product"
154.13includes tangible personal property, services, intangibles, and digital goods, including
154.14specified digital products or other digital products, but does not include real property or
154.15services to real property. A bundled transaction does not include the sale of any products
154.16in which the sales price varies, or is negotiable, based on the selection by the purchaser of
154.17the products included in the transaction.
154.18 (b) For purposes of this subdivision, "distinct and identifiable" products does not
154.19include:
154.20 (1) packaging and other materials, such as containers, boxes, sacks, bags, and
154.21bottles, wrapping, labels, tags, and instruction guides, that accompany the retail sale of the
154.22products and are incidental or immaterial to the retail sale. Examples of packaging that are
154.23incidental or immaterial include grocery sacks, shoe boxes, dry cleaning garment bags,
154.24and express delivery envelopes and boxes;
154.25 (2) a promotional product provided free of charge with the required purchase of
154.26another product. A promotional product is provided free of charge if the sales price of
154.27another product, which is required to be purchased in order to receive the promotional
154.28product, does not vary depending on the inclusion of the promotional product; and
154.29 (3) items included in the definition of sales price.
154.30 (c) For purposes of this subdivision, the term "one nonitemized price" does not
154.31include a price that is separately identified by product on binding sales or other supporting
154.32sales-related documentation made available to the customer in paper or electronic form
154.33including but not limited to an invoice, bill of sale, receipt, contract, service agreement,
154.34lease agreement, periodic notice of rates and services, rate card, or price list.
155.1 (d) A transaction that otherwise meets the definition of a bundled transaction is
155.2not a bundled transaction if it is:
155.3 (1) the retail sale of tangible personal property and a service and the tangible
155.4personal property is essential to the use of the service, and is provided exclusively in
155.5connection with the service, and the true object of the transaction is the service;
155.6 (2) the retail sale of services if one service is provided that is essential to the use or
155.7receipt of a second service and the first service is provided exclusively in connection with
155.8the second service and the true object of the transaction is the second service;
155.9 (3) a transaction that includes taxable products and nontaxable products and the
155.10purchase price or sales price of the taxable products is de minimis; or
155.11 (4) the retail sale of exempt tangible personal property and taxable tangible personal
155.12property if:
155.13 (i) the transaction includes food and food ingredients, drugs, durable medical
155.14equipment, mobility enhancing equipment, over-the-counter drugs, prosthetic devices,
155.15or medical supplies; and
155.16 (ii) the seller's purchase price or sales price of the taxable tangible personal property is
155.1750 percent or less of the total purchase price or sales price of the bundled tangible personal
155.18property. Sellers must not use a combination of the purchase price and sales price of the
155.19tangible personal property when making the 50 percent determination for a transaction.
155.20 (e) For purposes of this subdivision, "purchase price" means the measure subject to
155.21use tax on purchases made by the seller, and "de minimis" means that the seller's purchase
155.22price or sales price of the taxable products is ten percent or less of the total purchase
155.23price or sales price of the bundled products. Sellers shall use either the purchase price
155.24or the sales price of the products to determine if the taxable products are de minimis.
155.25Sellers must not use a combination of the purchase price and sales price of the products
155.26to determine if the taxable products are de minimis. Sellers shall use the full term of a
155.27service contract to determine if the taxable products are de minimis.
155.28EFFECTIVE DATE.This section is effective for sales and purchases made after
155.29June 30, 2013.
155.30 Sec. 7. Minnesota Statutes 2012, section 297A.61, subdivision 45, is amended to read:
155.31 Subd. 45. Ring tone. "Ring tone" means a digitized sound file that is downloaded
155.32onto a device and that may be used to alert the customer
155.33 with respect to a communication. A ring tone does not include ring back tones or other
155.34digital audio files that are not stored on the purchaser's communication device.
156.1EFFECTIVE DATE.This section is effective for sales and purchases made after
156.2June 30, 2013.
156.3 Sec. 8. Minnesota Statutes 2012, section 297A.61, is amended by adding a subdivision
156.4to read:
156.5 Subd. 49. Motor vehicle repair paint and motor vehicle repair materials. "Motor
156.6vehicle repair paint" means a substance composed of solid matter suspended in a liquid
156.7medium and applied as a protective or decorative coating to the surface of a motor vehicle in
156.8order to restore the motor vehicle to its original condition, and includes primer, body paint,
156.9clear coat, and paint thinner used to paint motor vehicles, as defined in section 297B.01.
156.10"Motor vehicle repair materials" means items, other than motor vehicle repair paint
156.11or motor vehicle parts, that become a part of a repaired motor vehicle or are consumed in
156.12repairing the motor vehicle at retail, and include abrasives, battery water, body filler or
156.13putty, bolts and nuts, brake fluid, buffing pads, chamois, cleaning compounds, degreasing
156.14compounds, glaze, grease, grinding discs, hydraulic jack oil, lubricants, masking tape,
156.15oxygen and acetylene, polishes, rags, razor blades, sandpaper, sanding discs, scuff pads,
156.16sealer, solder, solvents, striping tape, tack cloth, thinner, waxes, and welding rods. Motor
156.17vehicle repair materials do not include items that are not used directly on the motor vehicle,
156.18such as floor dry that is used to clean the shop, or cleaning compounds and rags that are
156.19used to clean tools, equipment, or the shop and are not used to clean the motor vehicle.
156.20EFFECTIVE DATE.This section is effective for sales and purchases made after
156.21June 30, 2013.
156.22 Sec. 9. Minnesota Statutes 2012, section 297A.61, is amended by adding a subdivision
156.23to read:
156.24 Subd. 50. Digital audio works. "Digital audio works" means works that result from
156.25a fixation of a series of musical, spoken, or other sounds, that are transferred electronically.
156.26Digital audio works includes such items as the following which may either be prerecorded
156.27or live: songs, music, readings of books or other written materials, speeches, ring tones, or
156.28other sound recordings. Digital audio works does not include audio greeting cards sent by
156.29electronic mail. Unless the context provides otherwise, in this chapter digital audio works
156.30includes the digital code, or a subscription to or access to a digital code, for receiving,
156.31accessing, or otherwise obtaining digital audio works.
156.32EFFECTIVE DATE.This section is effective for sales and purchases made after
156.33June 30, 2013.
157.1 Sec. 10. Minnesota Statutes 2012, section 297A.61, is amended by adding a
157.2subdivision to read:
157.3 Subd. 51. Digital audiovisual works. "Digital audiovisual works" means a series
157.4of related images which, when shown in succession, impart an impression of motion,
157.5together with accompanying sounds, if any, that are transferred electronically. Digital
157.6audiovisual works includes such items as motion pictures, movies, musical videos, news
157.7and entertainment, and live events. Digital audiovisual works does not include video
157.8greeting cards sent by electronic mail. Unless the context provides otherwise, in this
157.9chapter digital audiovisual works includes the digital code, or a subscription to or access to
157.10a digital code, for receiving, accessing, or otherwise obtaining digital audiovisual works.
157.11EFFECTIVE DATE.This section is effective for sales and purchases made after
157.12June 30, 2013.
157.13 Sec. 11. Minnesota Statutes 2012, section 297A.61, is amended by adding a
157.14subdivision to read:
157.15 Subd. 52. Digital books. "Digital books" means any literary works, other than
157.16digital audiovisual works or digital audio works, expressed in words, numbers, or other
157.17verbal or numerical symbols or indicia so long as the product is generally recognized in
157.18the ordinary and usual sense as a "book." It includes works of fiction and nonfiction and
157.19short stories. It does not include periodicals, magazines, newspapers, or other news or
157.20information products, chat rooms, or weblogs. Unless the context provides otherwise, in
157.21this chapter digital books includes the digital code, or a subscription to or access to a
157.22digital code, for receiving, accessing, or otherwise obtaining digital books.
157.23EFFECTIVE DATE.This section is effective for sales and purchases made after
157.24June 30, 2013.
157.25 Sec. 12. Minnesota Statutes 2012, section 297A.61, is amended by adding a
157.26subdivision to read:
157.27 Subd. 53. Digital code. "Digital code" means a code which provides a purchaser
157.28with a right to obtain one or more specified digital products or other digital products.
157.29A digital code may be transferred electronically, such as through electronic mail, or it
157.30may be transferred on a tangible medium, such as on a plastic card, a piece of paper or
157.31invoice, or imprinted on another product. A digital code is not a code that represents a
157.32stored monetary value that is deducted from a total as it is used by the purchaser, and it
157.33is not a code that represents a redeemable card, gift card, or gift certificate that entitles
158.1the holder to select a digital product of an indicated cash value. The end user of a digital
158.2code is any purchaser except one who receives the contractual right to redistribute a digital
158.3product which is the subject of the transaction.
158.4EFFECTIVE DATE.This section is effective for sales and purchases made after
158.5June 30, 2013.
158.6 Sec. 13. Minnesota Statutes 2012, section 297A.61, is amended by adding a
158.7subdivision to read:
158.8 Subd. 54. Other digital products. "Other digital products" means the following
158.9items when transferred electronically:
158.10(1) greeting cards; and
158.11(2) online video or electronic games.
158.12EFFECTIVE DATE.This section is effective for sales and purchases made after
158.13June 30, 2013.
158.14 Sec. 14. Minnesota Statutes 2012, section 297A.61, is amended by adding a
158.15subdivision to read:
158.16 Subd. 55. Specified digital products. "Specified digital products" means digital
158.17audio works, digital audiovisual works, and digital books that are transferred electronically
158.18to a customer.
158.19EFFECTIVE DATE.This section is effective for sales and purchases made after
158.20June 30, 2013.
158.21 Sec. 15. Minnesota Statutes 2012, section 297A.61, is amended by adding a
158.22subdivision to read:
158.23 Subd. 56. Transferred electronically. "Transferred electronically" means obtained
158.24by the purchaser by means other than tangible storage media. For purposes of this
158.25subdivision, it is not necessary that a copy of the product be physically transferred to
158.26the purchaser. A product will be considered to have been transferred electronically to a
158.27purchaser if the purchaser has access to the product.
158.28EFFECTIVE DATE.This section is effective for sales and purchases made after
158.29June 30, 2013.
159.1 Sec. 16. Minnesota Statutes 2012, section 297A.61, is amended by adding a
159.2subdivision to read:
159.3 Subd. 58. Self-storage service. "Self-storage service" means a storage service that
159.4provides secure areas, such as rooms, units, compartments or containers, whether accessible
159.5from outside or from within a building, that are designated for the use of a purchaser,
159.6where the purchaser retains the care custody and control of their property, including
159.7self-storage units, mini-storage units, and areas by any other name to which the purchaser
159.8retains either unlimited free access or free access within reasonable business hours or upon
159.9reasonable notice to the service provider to add or remove property, but does not mean the
159.10rental of an entire building, such as a warehouse. Self-storage service does not include
159.11general warehousing and storage services where the warehouse typically handles, stores,
159.12and retrieves a purchaser's property using the warehouse's staff and equipment, and does
159.13not allow the purchaser free access to the storage space and does not include bailments.
159.14EFFECTIVE DATE.This section is effective July 1, 2013.
159.15 Sec. 17. Minnesota Statutes 2012, section 297A.64, subdivision 1, is amended to read:
159.16 Subdivision 1. Tax imposed. A tax is imposed on the lease or rental in this state
159.17for not more than 28 days of a passenger automobile as defined in section
159.18subdivision 24
159.19defined in section
159.20price. The tax applies whether or not the vehicle is licensed in the state.
159.21EFFECTIVE DATE.This section is effective for sales and purchases made after
159.22June 30, 2013.
159.23 Sec. 18. Minnesota Statutes 2012, section 297A.66, subdivision 3, is amended to read:
159.24 Subd. 3. Retailer not maintaining place of business in this state. (a) To the extent
159.25allowed by the United States Constitution and
159.26with the terms and conditions of federal remote seller law, a retailer making retail sales
159.27from outside this state to a destination within this state and not maintaining a place of
159.28business in this state shall collect sales and use taxes and remit them to the commissioner
159.29under section
159.30(b) To the extent allowed by the United States Constitution and the laws of the
159.31United States, a retailer making retail sales from outside this state to a destination within
159.32this state and not maintaining a place of business in this state shall collect sales and use
160.1taxes and remit them to the commissioner under section
160.2the regular or systematic soliciting of sales from potential customers in this state by:
160.3(1) distribution, by mail or otherwise, of catalogs, periodicals, advertising flyers, or
160.4other written solicitations of business to customers in this state;
160.5(2) display of advertisements on billboards or other outdoor advertising in this state;
160.6(3) advertisements in newspapers published in this state;
160.7(4) advertisements in trade journals or other periodicals the circulation of which is
160.8primarily within this state;
160.9(5) advertisements in a Minnesota edition of a national or regional publication or
160.10a limited regional edition in which this state is included as part of a broader regional or
160.11national publication which are not placed in other geographically defined editions of the
160.12same issue of the same publication;
160.13(6) advertisements in regional or national publications in an edition which is not
160.14by its contents geographically targeted to Minnesota but which is sold over the counter
160.15in Minnesota or by subscription to Minnesota residents;
160.16(7) advertisements broadcast on a radio or television station located in Minnesota; or
160.17(8) any other solicitation by telegraphy, telephone, computer database, cable, optic,
160.18microwave, or other communication system.
160.19This paragraph (a) must be construed without regard to the state from which
160.20distribution of the materials originated or in which they were prepared.
160.21(b) The location within or without this state of independent vendors that provide
160.22products or services to the retailer in connection with its solicitation of customers within this
160.23state, including such products and services as creation of copy, printing, distribution, and
160.24recording, is not considered in determining whether the retailer is required to collect tax.
160.25(c) A retailer not maintaining a place of business in this state is presumed, subject to
160.26rebuttal, to be engaged in regular solicitation within this state if it engages in any of the
160.27activities in paragraph (a) and:
160.28(1) makes 100 or more retail sales from outside this state to destinations in this state
160.29during a period of 12 consecutive months; or
160.30(2) makes ten or more retail sales totaling more than $100,000 from outside this state
160.31to destinations in this state during a period of 12 consecutive months.
160.32EFFECTIVE DATE.This section is effective the day after final enactment.
160.33 Sec. 19. Minnesota Statutes 2012, section 297A.66, is amended by adding a
160.34subdivision to read:
161.1 Subd. 4a. Solicitor. (a) "Solicitor," for purposes of subdivision 1, paragraph (a),
161.2means a person, whether an independent contractor or other representative, who directly
161.3or indirectly solicits business for the retailer.
161.4(b) A retailer is presumed to have a solicitor in this state if it enters into an agreement
161.5with a resident under which the resident, for a commission or other substantially similar
161.6consideration, directly or indirectly refers potential customers, whether by a link on an
161.7Internet Web site, or otherwise, to the seller. This paragraph only applies if the total gross
161.8receipts are at least $10,000 in the 12-month period ending on the last day of the most recent
161.9calendar quarter before the calendar quarter in which the sale is made. For purposes of this
161.10paragraph, gross receipts means receipts from sales to customers located in the state who
161.11were referred to the retailer by all residents with this type of agreement with the retailer.
161.12(c) The presumption under paragraph (b) may be rebutted by proof that the resident
161.13with whom the seller has an agreement did not engage in any solicitation in the state
161.14on behalf of the retailer that would satisfy the nexus requirement of the United States
161.15Constitution during the 12-month period in question. Nothing in this section shall be
161.16construed to narrow the scope of the terms affiliate, agent, salesperson, canvasser, or other
161.17representative for purposes of subdivision 1, paragraph (a).
161.18(d) For purposes of this paragraph, "resident" includes an individual who is a
161.19resident of this state, as defined in section 290.01, or a business that owns tangible
161.20personal property located in this state or has one or more employees providing services for
161.21the business in this state.
161.22(e) This subdivision does not apply to chapter 290 and does not expand or contract
161.23the jurisdiction to tax a trade or business under chapter 290.
161.24EFFECTIVE DATE.This section is effective for sales and purchases made after
161.25June 30, 2013.
161.26 Sec. 20. Minnesota Statutes 2012, section 297A.665, is amended to read:
161.27297A.665 PRESUMPTION OF TAX; BURDEN OF PROOF.
161.28 (a) For the purpose of the proper administration of this chapter and to prevent
161.29evasion of the tax, until the contrary is established, it is presumed that:
161.30 (1) all gross receipts are subject to the tax; and
161.31 (2) all retail sales for delivery in Minnesota are for storage, use, or other consumption
161.32in Minnesota.
161.33 (b) The burden of proving that a sale is not a taxable retail sale is on the seller.
161.34However, a seller is relieved of liability if:
162.1 (1) the seller obtains a fully completed exemption certificate or all the relevant
162.2information required by section
162.390 days after the date of the sale;
162.4 (2) if the seller has not obtained a fully completed exemption certificate or all the
162.5relevant information required by section
162.6in clause (1), within 120 days after a request for substantiation by the commissioner,
162.7the seller either:
162.8 (i) obtains in good faith a fully completed exemption certificate or all the relevant
162.9information required by section
162.10 (ii) proves by other means that the transaction was not subject to tax;
162.11 (3) in the case of drop shipment sales, a seller engaged in drop shipping may claim a
162.12resale exemption based on an exemption certificate provided by its customer or reseller,
162.13or any other acceptable information available to the seller engaged in drop shipping
162.14evidencing qualification for a resale exemption, regardless of whether the customer or
162.15reseller is registered to collect and remit sales and use tax in the state.
162.16 (c) Notwithstanding paragraph (b), relief from liability does not apply to a seller who:
162.17 (1) fraudulently fails to collect the tax; or
162.18 (2) solicits purchasers to participate in the unlawful claim of an exemption.
162.19 (d) A certified service provider, as defined in section
162.20relieved of liability under this section to the extent a seller who is its client is relieved of
162.21liability.
162.22 (e) A purchaser of tangible personal property or any items listed in section
162.24property was not purchased from a retailer for storage, use, or consumption in Minnesota.
162.25 (f) If a seller claims that certain sales are exempt and does not provide the certificate,
162.26information, or proof required by paragraph (b), clause (2), within 120 days after the date
162.27of the commissioner's request for substantiation, then the exemptions claimed by the seller
162.28that required substantiation are disallowed.
162.29EFFECTIVE DATE.This section is effective for sales and purchases made after
162.30June 30, 2013.
162.31 Sec. 21. Minnesota Statutes 2012, section 297A.668, is amended by adding a
162.32subdivision to read:
162.33 Subd. 6a. Multiple points of use. (a) Notwithstanding the provisions of subdivisions
162.342 and 3, a business purchaser that has not received authorization to pay the tax directly to
162.35the commissioner may use an exemption certificate indicating multiple points of use if:
163.1(1) the purchaser knows at the time of its purchase of a digital good, computer
163.2software delivered electronically, or a service that the good or service will be concurrently
163.3available for use in more than one taxing jurisdiction; and
163.4(2) the purchaser delivers to the seller the exemption certificate indicating multiple
163.5points of use at the time of purchase.
163.6(b) Upon receipt of the fully completed exemption certificate indicating multiple
163.7points of use, the seller is relieved of the obligation to collect, pay, or remit the applicable
163.8tax and the purchaser is obligated to collect, pay, or remit the applicable tax on a direct
163.9pay basis. The provisions of section 297A.665 apply to this paragraph.
163.10(c) The purchaser delivering the exemption certificate indicating multiple points
163.11of use may use any reasonable but consistent and uniform method of apportionment
163.12that is supported by the purchaser's business records as they exist at the time of the
163.13consummation of the sale.
163.14(d) The purchaser shall provide the exemption certificate indicating multiple points
163.15of use to the seller at the time of purchase.
163.16(e) A purchaser that has received authorization to pay the tax directly to the
163.17commissioner is not required to deliver to the seller an exemption certificate indicating
163.18multiple points of use. A purchaser that has received authorization to pay the tax directly
163.19to the commissioner shall follow the provisions of paragraph (c) in apportioning the tax
163.20due on a digital good, computer software delivered electronically, or a service that will be
163.21concurrently available for use in more than one taxing jurisdiction.
163.22EFFECTIVE DATE.This section is effective for sales and purchases made after
163.23June 30, 2013.
163.24 Sec. 22. Minnesota Statutes 2012, section 297A.67, subdivision 7, is amended to read:
163.25 Subd. 7. Drugs; medical devices. (a) Sales of the following drugs and medical
163.26devices for human use are exempt:
163.27 (1) drugs, including over-the-counter drugs;
163.28 (2) single-use finger-pricking devices for the extraction of blood and other single-use
163.29devices and single-use diagnostic agents used in diagnosing, monitoring, or treating
163.30diabetes;
163.31 (3) insulin and medical oxygen for human use, regardless of whether prescribed
163.32or sold over the counter;
163.33 (4) prosthetic devices;
163.34 (5) durable medical equipment for home use only;
163.35 (6) mobility enhancing equipment;
164.1 (7) prescription corrective eyeglasses; and
164.2 (8) kidney dialysis equipment, including repair and replacement parts.
164.3(b) Items purchased in transactions covered by:
164.4(1) Medicare as defined under title XVIII of the Social Security Act, United States
164.5Code, title 42, section 1395, et seq.; or
164.6(2) Medicaid as defined under title XIX of the Social Security Act, United States
164.7Code, title 42, section 1396, et seq.
164.8
164.9 (1) "Drug" means a compound, substance, or preparation, and any component of
164.10a compound, substance, or preparation, other than food and food ingredients, dietary
164.11supplements, or alcoholic beverages that is:
164.12 (i) recognized in the official United States Pharmacopoeia, official Homeopathic
164.13Pharmacopoeia of the United States, or official National Formulary, and supplement
164.14to any of them;
164.15 (ii) intended for use in the diagnosis, cure, mitigation, treatment, or prevention
164.16of disease; or
164.17 (iii) intended to affect the structure or any function of the body.
164.18 (2) "Durable medical equipment" means equipment, including repair and
164.19replacement parts, including single-patient use items, but not including mobility enhancing
164.20equipment, that:
164.21 (i) can withstand repeated use;
164.22 (ii) is primarily and customarily used to serve a medical purpose;
164.23 (iii) generally is not useful to a person in the absence of illness or injury; and
164.24 (iv) is not worn in or on the body.
164.25 For purposes of this clause, "repair and replacement parts" includes all components
164.26or attachments used in conjunction with the durable medical equipment,
164.27
164.28 (3) "Mobility enhancing equipment" means equipment, including repair and
164.29replacement parts, but not including durable medical equipment, that:
164.30 (i) is primarily and customarily used to provide or increase the ability to move from
164.31one place to another and that is appropriate for use either in a home or a motor vehicle;
164.32 (ii) is not generally used by persons with normal mobility; and
164.33 (iii) does not include any motor vehicle or equipment on a motor vehicle normally
164.34provided by a motor vehicle manufacturer.
164.35 (4) "Over-the-counter drug" means a drug that contains a label that identifies the
164.36product as a drug as required by Code of Federal Regulations, title 21, section 201.66. The
165.1label must include a "drug facts" panel or a statement of the active ingredients with a list of
165.2those ingredients contained in the compound, substance, or preparation. Over-the-counter
165.3drugs do not include grooming and hygiene products, regardless of whether they otherwise
165.4meet the definition. "Grooming and hygiene products" are soaps, cleaning solutions,
165.5shampoo, toothpaste, mouthwash, antiperspirants, and suntan lotions and sunscreens.
165.6 (5) "Prescribed" and "prescription" means a direction in the form of an order,
165.7formula, or recipe issued in any form of oral, written, electronic, or other means of
165.8transmission by a duly licensed health care professional.
165.9 (6) "Prosthetic device" means a replacement, corrective, or supportive device,
165.10including repair and replacement parts, worn on or in the body to:
165.11 (i) artificially replace a missing portion of the body;
165.12 (ii) prevent or correct physical deformity or malfunction; or
165.13 (iii) support a weak or deformed portion of the body.
165.14Prosthetic device does not include corrective eyeglasses.
165.15 (7) "Kidney dialysis equipment" means equipment that:
165.16 (i) is used to remove waste products that build up in the blood when the kidneys are
165.17not able to do so on their own; and
165.18 (ii) can withstand repeated use, including multiple use by a single patient,
165.19notwithstanding the provisions of clause (2).
165.20(8) A transaction is covered by Medicare or Medicaid if any portion of the cost of
165.21the item purchased in the transaction is paid for or reimbursed by the federal government
165.22or the state of Minnesota pursuant to the Medicare or Medicaid program, by a private
165.23insurance company administering the Medicare or Medicaid program on behalf of the
165.24federal government or the state of Minnesota, or by a managed care organization for the
165.25benefit of a patient enrolled in a prepaid program that furnishes medical services in lieu
165.26of conventional Medicare or Medicaid coverage pursuant to agreement with the federal
165.27government or the state of Minnesota.
165.28EFFECTIVE DATE.This section is effective for sales and purchases made after
165.29June 30, 2013.
165.30 Sec. 23. Minnesota Statutes 2012, section 297A.67, is amended by adding a
165.31subdivision to read:
165.32 Subd. 7a. Accessories and supplies. Accessories and supplies required for the
165.33effective use of durable medical equipment for home use only or purchased in a transaction
165.34covered by medicare or Medicaid, that are not already exempt under section 297A.67,
165.35subdivision 7, are exempt. Accessories and supplies for the effective use of a prosthetic
166.1device that are not already exempt under section 297A.67, subdivision 7, are exempt.
166.2For purposes of this subdivision "durable medical equipment," "prosthetic device,"
166.3"Medicare," and "Medicaid" have the definitions given in section 297A.67, subdivision 7.
166.4EFFECTIVE DATE.This section is effective for sales and purchases made after
166.5June 30, 2013.
166.6 Sec. 24. Minnesota Statutes 2012, section 297A.67, subdivision 13, is amended to read:
166.7 Subd. 13. Textbooks. Textbooks, including digital books, that are prescribed for use
166.8in conjunction with a course of study in a school, college, university, and private career
166.9school to students who are regularly enrolled at such institutions are exempt. For purposes
166.10of this subdivision (1) a "school" is as defined in section
166.11"private career school" means a school licensed under section
166.12EFFECTIVE DATE.This section is effective for sales and purchases made after
166.13June 30, 2013.
166.14 Sec. 25. Minnesota Statutes 2012, section 297A.68, subdivision 2, is amended to read:
166.15 Subd. 2. Materials consumed in industrial production. (a) Materials stored, used,
166.16or consumed in industrial production of tangible personal property intended to be sold
166.17ultimately at retail, are exempt, whether or not the item so used becomes an ingredient
166.18or constituent part of the property produced. Materials that qualify for this exemption
166.19include, but are not limited to, the following:
166.20(1) chemicals, including chemicals used for cleaning food processing machinery
166.21and equipment;
166.22(2) materials, including chemicals, fuels, and electricity purchased by persons
166.23engaged in industrial production to treat waste generated as a result of the production
166.24process;
166.25(3) fuels, electricity, gas, and steam used or consumed in the production process,
166.26except that electricity, gas, or steam used for space heating, cooling, or lighting is exempt
166.27if (i) it is in excess of the average climate control or lighting for the production area, and
166.28(ii) it is necessary to produce that particular product;
166.29(4) petroleum products and lubricants;
166.30(5) packaging materials, including returnable containers used in packaging food
166.31and beverage products;
167.1(6) accessory tools, equipment, and other items that are separate detachable units
167.2with an ordinary useful life of less than 12 months used in producing a direct effect upon
167.3the product; and
167.4(7) the following materials, tools, and equipment used in metal-casting: crucibles,
167.5thermocouple protection sheaths and tubes, stalk tubes, refractory materials, molten metal
167.6filters and filter boxes, degassing lances, and base blocks.
167.7(b) This exemption does not include:
167.8(1) machinery, equipment, implements, tools, accessories, appliances, contrivances
167.9and furniture and fixtures, except those listed in paragraph (a), clause (6); and
167.10(2) petroleum and special fuels used in producing or generating power for propelling
167.11ready-mixed concrete trucks on the public highways of this state.
167.12(c) Industrial production includes, but is not limited to, research, development,
167.13design or production of any tangible personal property, manufacturing, processing (other
167.14than by restaurants and consumers) of agricultural products (whether vegetable or animal),
167.15commercial fishing, refining, smelting, reducing, brewing, distilling, printing, mining,
167.16quarrying, lumbering, generating electricity, the production of road building materials,
167.17and the research, development, design, or production of computer software. Industrial
167.18production does not include painting, cleaning, repairing or similar processing of property
167.19except as part of the original manufacturing process.
167.20(d) Industrial production does not include:
167.21(1) the furnishing of services listed in section
167.22clause (6), items (i) to (vi) and (viii), or paragraph (m); or
167.23(2) the transportation, transmission, or distribution of petroleum, liquefied gas,
167.24natural gas, water, or steam, in, by, or through pipes, lines, tanks, mains, or other means of
167.25transporting those products. For purposes of this paragraph, "transportation, transmission,
167.26or distribution" does not include blending of petroleum or biodiesel fuel as defined
167.27in section
167.28EFFECTIVE DATE.This section is effective for sales and purchases made after
167.29June 30, 2013.
167.30 Sec. 26. Minnesota Statutes 2012, section 297A.68, subdivision 5, is amended to read:
167.31 Subd. 5. Capital equipment. (a) Capital equipment is exempt.
167.32
167.33
167.34"Capital equipment" means machinery and equipment purchased or leased, and used
167.35in this state by the purchaser or lessee primarily for manufacturing, fabricating, mining,
168.1or refining tangible personal property to be sold ultimately at retail if the machinery and
168.2equipment are essential to the integrated production process of manufacturing, fabricating,
168.3mining, or refining. Capital equipment also includes machinery and equipment
168.4used primarily to electronically transmit results retrieved by a customer of an online
168.5computerized data retrieval system.
168.6(b) Capital equipment includes, but is not limited to:
168.7(1) machinery and equipment used to operate, control, or regulate the production
168.8equipment;
168.9(2) machinery and equipment used for research and development, design, quality
168.10control, and testing activities;
168.11(3) environmental control devices that are used to maintain conditions such as
168.12temperature, humidity, light, or air pressure when those conditions are essential to and are
168.13part of the production process;
168.14(4) materials and supplies used to construct and install machinery or equipment;
168.15(5) repair and replacement parts, including accessories, whether purchased as spare
168.16parts, repair parts, or as upgrades or modifications to machinery or equipment;
168.17(6) materials used for foundations that support machinery or equipment;
168.18(7) materials used to construct and install special purpose buildings used in the
168.19production process;
168.20(8) ready-mixed concrete equipment in which the ready-mixed concrete is mixed
168.21as part of the delivery process regardless if mounted on a chassis, repair parts for
168.22ready-mixed concrete trucks, and leases of ready-mixed concrete trucks; and
168.23(9) machinery or equipment used for research, development, design, or production
168.24of computer software.
168.25(c) Capital equipment does not include the following:
168.26(1) motor vehicles taxed under chapter 297B;
168.27(2) machinery or equipment used to receive or store raw materials;
168.28(3) building materials, except for materials included in paragraph (b), clauses (6)
168.29and (7);
168.30(4) machinery or equipment used for nonproduction purposes, including, but not
168.31limited to, the following: plant security, fire prevention, first aid, and hospital stations;
168.32support operations or administration; pollution control; and plant cleaning, disposal of
168.33scrap and waste, plant communications, space heating, cooling, lighting, or safety;
168.34(5) farm machinery and aquaculture production equipment as defined by section
169.1(6) machinery or equipment purchased and installed by a contractor as part of an
169.2improvement to real property;
169.3(7) machinery and equipment used by restaurants in the furnishing, preparing, or
169.4serving of prepared foods as defined in section
169.5(8) machinery and equipment used to furnish the services listed in section
169.6subdivision 3
169.7(9) machinery or equipment used in the transportation, transmission, or distribution
169.8of petroleum, liquefied gas, natural gas, water, or steam, in, by, or through pipes, lines,
169.9tanks, mains, or other means of transporting those products. This clause does not apply to
169.10machinery or equipment used to blend petroleum or biodiesel fuel as defined in section
169.12(10) any other item that is not essential to the integrated process of manufacturing,
169.13fabricating, mining, or refining.
169.14(d) For purposes of this subdivision:
169.15(1) "Equipment" means independent devices or tools separate from machinery but
169.16essential to an integrated production process, including computers and computer software,
169.17used in operating, controlling, or regulating machinery and equipment; and any subunit or
169.18assembly comprising a component of any machinery or accessory or attachment parts of
169.19machinery, such as tools, dies, jigs, patterns, and molds.
169.20(2) "Fabricating" means to make, build, create, produce, or assemble components or
169.21property to work in a new or different manner.
169.22(3) "Integrated production process" means a process or series of operations through
169.23which tangible personal property is manufactured, fabricated, mined, or refined. For
169.24purposes of this clause, (i) manufacturing begins with the removal of raw materials
169.25from inventory and ends when the last process prior to loading for shipment has been
169.26completed; (ii) fabricating begins with the removal from storage or inventory of the
169.27property to be assembled, processed, altered, or modified and ends with the creation
169.28or production of the new or changed product; (iii) mining begins with the removal of
169.29overburden from the site of the ores, minerals, stone, peat deposit, or surface materials and
169.30ends when the last process before stockpiling is completed; and (iv) refining begins with
169.31the removal from inventory or storage of a natural resource and ends with the conversion
169.32of the item to its completed form.
169.33(4) "Machinery" means mechanical, electronic, or electrical devices, including
169.34computers and computer software, that are purchased or constructed to be used for the
169.35activities set forth in paragraph (a), beginning with the removal of raw materials from
169.36inventory through completion of the product, including packaging of the product.
170.1(5) "Machinery and equipment used for pollution control" means machinery and
170.2equipment used solely to eliminate, prevent, or reduce pollution resulting from an activity
170.3described in paragraph (a).
170.4(6) "Manufacturing" means an operation or series of operations where raw materials
170.5are changed in form, composition, or condition by machinery and equipment and which
170.6results in the production of a new article of tangible personal property. For purposes of
170.7this subdivision, "manufacturing" includes the generation of electricity or steam to be
170.8sold at retail.
170.9(7) "Mining" means the extraction of minerals, ores, stone, or peat.
170.10(8) "Online data retrieval system" means a system whose cumulation of information
170.11is equally available and accessible to all its customers.
170.12(9) "Primarily" means machinery and equipment used 50 percent or more of the time
170.13in an activity described in paragraph (a).
170.14(10) "Refining" means the process of converting a natural resource to an intermediate
170.15or finished product, including the treatment of water to be sold at retail.
170.16(11) This subdivision does not apply to telecommunications equipment as
170.17provided in subdivision 35, and does not apply to wire, cable, fiber, poles, or conduit
170.18for telecommunications services.
170.19EFFECTIVE DATE.This section is effective for sales and purchases made after
170.20August 31, 2014.
170.21 Sec. 27. Minnesota Statutes 2012, section 297A.68, subdivision 42, is amended to read:
170.22 Subd. 42. Qualified data centers. (a) Purchases of enterprise information
170.23technology equipment and computer software for use in a qualified data center, or a
170.24qualified refurbished data center, are exempt. The tax on purchases exempt under this
170.25paragraph must be imposed and collected as if the rate under section
170.261
170.28computer software purchased to replace or upgrade enterprise information technology
170.29equipment and computer software in a qualified data center, or a qualified refurbished
170.30data center.
170.31(b) Electricity used or consumed in the operation of a qualified data center is exempt.
170.32(c) For purposes of this subdivision, "qualified data center, or a qualified refurbished
170.33data center," means a facility in Minnesota:
170.34(1) that is comprised of one or more buildings that consist in the aggregate of at least
170.35
171.1where the total cost of construction or refurbishment, investment in enterprise information
171.2technology equipment, and computer software is at least
171.3a
171.4(2) that is constructed or substantially refurbished after June 30, 2012, where
171.5"substantially refurbished" means that at least
171.6or modified
171.7(i) installation of enterprise information technology equipment, environmental
171.8control, computer software, and energy efficiency improvements; and
171.9(ii) building improvements; and
171.10(3) that is used to house enterprise information technology equipment, where the
171.11facility has the following characteristics:
171.12(i) uninterruptible power supplies, generator backup power, or both;
171.13(ii) sophisticated fire suppression and prevention systems; and
171.14(iii) enhanced security. A facility will be considered to have enhanced security if it
171.15has restricted access to the facility to selected personnel; permanent security guards; video
171.16camera surveillance; an electronic system requiring pass codes, keycards, or biometric
171.17scans, such as hand scans and retinal or fingerprint recognition; or similar security features.
171.18In determining whether the facility has the required square footage, the square
171.19footage of the following spaces shall be included if the spaces support the operation
171.20of enterprise information technology equipment: office space, meeting space, and
171.21mechanical and other support facilities. For purposes of this subdivision, "computer
171.22software" includes, but is not limited to, software utilized or loaded at the qualified data
171.23center, including maintenance, licensing, and software customization.
171.24(d) For purposes of this subdivision, a "qualified refurbished data center" means an
171.25existing facility that qualifies as a data center under paragraph (c), clauses (2) and (3), but
171.26that is comprised of one or more buildings that consist in the aggregate of at least 25,000
171.27square feet, and that are located on a single parcel or contiguous parcels, where the total
171.28cost of construction or refurbishment, investment in enterprise information technology
171.29equipment, and computer software is at least $50,000,000 within a 24-month period.
171.30
171.31equipment" means computers and equipment supporting computing, networking, or data
171.32storage, including servers and routers. It includes, but is not limited to: cooling systems,
171.33cooling towers, and other temperature control infrastructure; power infrastructure for
171.34transformation, distribution, or management of electricity used for the maintenance
171.35and operation of a qualified data center, including but not limited to exterior dedicated
171.36business-owned substations, backup power generation systems, battery systems, and
172.1related infrastructure; and racking systems, cabling, and trays, which are necessary for
172.2the maintenance and operation of the qualified data center.
172.3
172.4purchases made either within 20 years of the date of its first purchase qualifying for the
172.5exemption under paragraph (a), or by June 30, 2042, whichever is earlier.
172.6
172.7center industries.
172.8
172.92012, and before July 1, 2042.
172.10EFFECTIVE DATE.This section is effective for sales and purchases made after
172.11June 30, 2013.
172.12 Sec. 28. Minnesota Statutes 2012, section 297A.68, is amended by adding a
172.13subdivision to read:
172.14 Subd. 49. Greater Minnesota business expansions. (a) Purchases and use of
172.15tangible personal property or taxable services by a qualified business, as defined in section
172.16116J.3738, are exempt if:
172.17(1) the business subsidy agreement provides that the exemption under this
172.18subdivision applies;
172.19(2) the property or services are primarily used or consumed in greater Minnesota; and
172.20(3) the purchase was made and delivery received during the duration of the
172.21certification of the business as a qualified business under section 116J.3738.
172.22(b) Purchase and use of construction materials and supplies used or consumed in,
172.23and equipment incorporated into, the construction of improvements to real property in
172.24greater Minnesota are exempt if the improvements after completion of construction are
172.25to be used in the conduct of the trade or business of the qualified business, as defined in
172.26section 116J.3738. This exemption applies regardless of whether the purchases are made
172.27by the business or a contractor.
172.28(c) The exemptions under this subdivision apply to a local sales and use tax.
172.29(d) The tax on purchases imposed under this subdivision must be imposed and
172.30collected as if the rate under section 297A.62 applied, and then refunded in the manner
172.31provided in section 297A.75. No more than $7,000,000 may be refunded in a fiscal year
172.32for all purchases under this subdivision. Refunds must be allocated on a first come, first
172.33served basis. If more than $7,000,000 of eligible claims are made in a fiscal year, claims
172.34by qualified businesses carryover to the next fiscal year, and the commissioner must first
172.35allocate refunds to qualified businesses eligible for a refund in the preceding fiscal year.
173.1Any portion of the balance of funds allocated for refunds under this paragraph does not
173.2cancel and shall be carried forward to and available for refunds in subsequent fiscal years.
173.3EFFECTIVE DATE.This section is effective for sales and purchases made after
173.4June 30, 2014.
173.5 Sec. 29. Minnesota Statutes 2012, section 297A.70, subdivision 2, is amended to read:
173.6 Subd. 2. Sales to government. (a) All sales, except those listed in paragraph (b),
173.7to the following governments and political subdivisions, or to the listed agencies or
173.8instrumentalities of governments and political subdivisions, are exempt:
173.9(1) the United States and its agencies and instrumentalities;
173.10(2) school districts, local governments, the University of Minnesota, state universities,
173.11community colleges, technical colleges, state academies, the Perpich Minnesota Center for
173.12Arts Education, and an instrumentality of a political subdivision that is accredited as an
173.13optional/special function school by the North Central Association of Colleges and Schools;
173.14(3) hospitals and nursing homes owned and operated by political subdivisions of
173.15the state of tangible personal property and taxable services used at or by hospitals and
173.16nursing homes;
173.17(4) the Metropolitan Council, for its purchases of vehicles and repair parts to equip
173.18operations provided for in section
173.19(5) other states or political subdivisions of other states, if the sale would be exempt
173.20from taxation if it occurred in that state; and
173.21(6) public libraries, public library systems, multicounty, multitype library systems as
173.22defined in section
173.23the state library under section
173.24
173.25(b) This exemption does not apply to the sales of the following products and services:
173.26(1) building, construction, or reconstruction materials purchased by a contractor
173.27or a subcontractor as a part of a lump-sum contract or similar type of contract with a
173.28guaranteed maximum price covering both labor and materials for use in the construction,
173.29alteration, or repair of a building or facility;
173.30(2) construction materials purchased by tax exempt entities or their contractors to
173.31be used in constructing buildings or facilities which will not be used principally by the
173.32tax exempt entities;
173.33(3) the leasing of a motor vehicle as defined in section
173.34except for leases entered into by the United States or its agencies or instrumentalities;
174.1(4) lodging as defined under section
174.2(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section
174.4beverages purchased directly by the United States or its agencies or instrumentalities; or
174.5(5) goods or services purchased by a
174.6services that are generally provided by a private business and the purchases would be
174.7taxable if made by a private business engaged in the same activity.
174.8(c) As used in this subdivision, "school districts" means public school entities and
174.9districts of every kind and nature organized under the laws of the state of Minnesota, and
174.10any instrumentality of a school district, as defined in section
174.11(d) As used in this subdivision, "local governments" means cities, counties, and
174.12townships.
174.13
174.14business" include, but are not limited to, goods or services provided by liquor stores, gas
174.15and electric utilities, golf courses, marinas, health and fitness centers, campgrounds, cafes,
174.16and laundromats. "Goods or services generally provided by a private business" do not
174.17include housing services, sewer and water services, wastewater treatment, ambulance and
174.18other public safety services, correctional services, chore or homemaking services provided
174.19to elderly or disabled individuals, or road and street maintenance or lighting.
174.20EFFECTIVE DATE.This section is effective for sales and purchases made after
174.21December 31, 2013.
174.22 Sec. 30. Minnesota Statutes 2012, section 297A.70, subdivision 4, is amended to read:
174.23 Subd. 4. Sales to nonprofit groups. (a) All sales, except those listed in paragraph
174.24(b), to the following "nonprofit organizations" are exempt:
174.25(1) a corporation, society, association, foundation, or institution organized and
174.26operated exclusively for charitable, religious, or educational purposes if the item
174.27purchased is used in the performance of charitable, religious, or educational functions; and
174.28(2) any senior citizen group or association of groups that:
174.29(i) in general limits membership to persons who are either age 55 or older, or
174.30physically disabled;
174.31(ii) is organized and operated exclusively for pleasure, recreation, and other
174.32nonprofit purposes, not including housing, no part of the net earnings of which inures to
174.33the benefit of any private shareholders; and
174.34(iii) is an exempt organization under section 501(c) of the Internal Revenue Code.
175.1For purposes of this subdivision, charitable purpose includes the maintenance of a
175.2cemetery owned by a religious organization.
175.3(b) This exemption does not apply to the following sales:
175.4(1) building, construction, or reconstruction materials purchased by a contractor
175.5or a subcontractor as a part of a lump-sum contract or similar type of contract with a
175.6guaranteed maximum price covering both labor and materials for use in the construction,
175.7alteration, or repair of a building or facility;
175.8(2) construction materials purchased by tax-exempt entities or their contractors to
175.9be used in constructing buildings or facilities that will not be used principally by the
175.10tax-exempt entities; and
175.11(3) lodging as defined under section
175.12(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section
175.14for sacramental purposes or as allowed under subdivision 9a; and
175.15(4) leasing of a motor vehicle as defined in section
175.16as provided in paragraph (c).
175.17(c) This exemption applies to the leasing of a motor vehicle as defined in section
175.19(1) a truck, as defined in section
175.20passenger automobile, as defined in section
175.21used for carrying more than nine persons including the driver; and
175.22(2) intended to be used primarily to transport tangible personal property or
175.23individuals, other than employees, to whom the organization provides service in
175.24performing its charitable, religious, or educational purpose.
175.25(d) A limited liability company also qualifies for exemption under this subdivision if
175.26(1) it consists of a sole member that would qualify for the exemption, and (2) the items
175.27purchased qualify for the exemption.
175.28EFFECTIVE DATE.This section is effective retroactively for sales and purchases
175.29made after June 30, 2012.
175.30 Sec. 31. Minnesota Statutes 2012, section 297A.70, subdivision 5, is amended to read:
175.31 Subd. 5. Veterans groups. Sales to an organization of military service veterans or
175.32an auxiliary unit of an organization of military service veterans are exempt if:
175.33(1) the organization or auxiliary unit is organized within the state of Minnesota
175.34and is exempt from federal taxation under section 501(c), clause (19), of the Internal
175.35Revenue Code; and
176.1(2) the tangible personal property
176.2or nonprofit uses and not for social, recreational, pleasure, or profit uses.
176.3EFFECTIVE DATE.This section is effective for sales and purchases made after
176.4June 30, 2013.
176.5 Sec. 32. Minnesota Statutes 2012, section 297A.70, subdivision 7, is amended to read:
176.6 Subd. 7. Hospitals
176.7providers. (a) Sales, except for those listed in paragraph
176.8if the items purchased are used in providing hospital services. For purposes of this
176.9subdivision, "hospital" means a hospital organized and operated for charitable purposes
176.10within the meaning of section 501(c)(3) of the Internal Revenue Code, and licensed under
176.11chapter 144 or by any other jurisdiction, and "hospital services" are services authorized or
176.12required to be performed by a "hospital" under chapter 144.
176.13 (b) Sales, except for those listed in paragraph
176.14are exempt, if the items purchased are used in providing outpatient surgical services. For
176.15purposes of this subdivision, "outpatient surgical center" means an outpatient surgical
176.16center organized and operated for charitable purposes within the meaning of section
176.17501(c)(3) of the Internal Revenue Code, and licensed under chapter 144 or by any other
176.18jurisdiction. For the purposes of this subdivision, "outpatient surgical services" means:
176.19(1) services authorized or required to be performed by an outpatient surgical center under
176.20chapter 144; and (2) urgent care. For purposes of this subdivision, "urgent care" means
176.21health services furnished to a person whose medical condition is sufficiently acute to
176.22require treatment unavailable through, or inappropriate to be provided by, a clinic or
176.23physician's office, but not so acute as to require treatment in a hospital emergency room.
176.24 (c) Sales, except for those listed in paragraph (d), to a critical access dental provider
176.25are exempt, if the items purchased are used in providing critical access dental care
176.26services. For the purposes of this subdivision, "critical access dental provider" means a
176.27dentist or dental clinic that qualifies under section 256B.76, subdivision 4, paragraph (b)
176.28and, in the previous calendar year, had no more than 15 percent of its patients covered by
176.29private dental insurance.
176.30 (d) This exemption does not apply to the following products and services:
176.31 (1) purchases made by a clinic, physician's office, or any other medical facility not
176.32operating as a hospital
176.33even though the clinic, office, or facility may be owned and operated by a hospital
176.34 outpatient surgical center, or critical access dental provider;
177.1 (2) sales under section
177.2prepared food, candy, and soft drinks;
177.3 (3) building and construction materials used in constructing buildings or facilities
177.4that will not be used principally by the hospital
177.5access dental provider;
177.6 (4) building, construction, or reconstruction materials purchased by a contractor or a
177.7subcontractor as a part of a lump-sum contract or similar type of contract with a guaranteed
177.8maximum price covering both labor and materials for use in the construction, alteration, or
177.9repair of a hospital
177.10 (5) the leasing of a motor vehicle as defined in section
177.11
177.12subdivision if (1) it consists of a sole member that would qualify for the exemption, and
177.13(2) the items purchased qualify for the exemption.
177.14
177.15exemption on purchases made for both the hospital and nonprofit unit provided that:
177.16 (1) the nonprofit unit would have qualified for exemption under subdivision 4; and
177.17 (2) the items purchased would have qualified for the exemption.
177.18EFFECTIVE DATE.This section is effective retroactively for sales and purchases
177.19made after June 30, 2007. Purchasers may apply for a refund of tax paid for qualifying
177.20purchases under this subdivision made after June 30, 2007, and before July 1, 2013, in the
177.21manner provided in Minnesota Statutes, section 297A.75. Notwithstanding limitations
177.22on claims for refunds under Minnesota Statutes, section 297A.40, claims may be filed
177.23with the commissioner until June 30, 2014.
177.24 Sec. 33. Minnesota Statutes 2012, section 297A.70, is amended by adding a
177.25subdivision to read:
177.26 Subd. 9a. Established religious orders. (a) Sales of lodging, prepared food, candy,
177.27soft drinks, and alcoholic beverages at noncatered events between an established religious
177.28order and an affiliated institution of higher education are exempt.
177.29(b) For purposes of this subdivision, "established religious order" means an
177.30organization directly or indirectly under the control or supervision of a church or
177.31convention or association of churches, where members of the organization:
177.32(1) normally live together as part of a community;
177.33(2) make long-term commitments to live under a strict set of moral and spiritual
177.34rules; and
178.1(3) work or engage full time in a combination of prayer, religious study, church
178.2reform or renewal, or other religious, educational, or charitable goals of the organization.
178.3(c) For purposes of this subdivision, an institution of higher education is "affiliated"
178.4with an established religious order if members of the religious order are represented
178.5on the governing board of the institution of higher education and the two organization
178.6share campus space and common facilities.
178.7EFFECTIVE DATE.This section is effective retroactively for sales and purchases
178.8made after June 30, 2012.
178.9 Sec. 34. Minnesota Statutes 2012, section 297A.70, subdivision 13, is amended to read:
178.10 Subd. 13. Fund-raising sales by or for nonprofit groups. (a) The following
178.11sales by the specified organizations for fund-raising purposes are exempt, subject to the
178.12limitations listed in paragraph (b):
178.13(1) all sales made by a nonprofit organization that exists solely for the purpose of
178.14providing educational or social activities for young people primarily age 18 and under;
178.15(2) all sales made by an organization that is a senior citizen group or association of
178.16groups if (i) in general it limits membership to persons age 55 or older; (ii) it is organized
178.17and operated exclusively for pleasure, recreation, and other nonprofit purposes; and (iii)
178.18no part of its net earnings inures to the benefit of any private shareholders;
178.19(3) the sale or use of tickets or admissions to a golf tournament held in Minnesota if
178.20the beneficiary of the tournament's net proceeds qualifies as a tax-exempt organization
178.21under section 501(c)(3) of the Internal Revenue Code; and
178.22(4) sales of candy sold for fund-raising purposes by a nonprofit organization that
178.23provides educational and social activities primarily for young people age 18 and under.
178.24(b) The exemptions listed in paragraph (a) are limited in the following manner:
178.25(1) the exemption under paragraph (a), clauses (1) and (2), applies only if the gross
178.26annual receipts of the organization from fund-raising do not exceed $10,000; and
178.27(2) the exemption under paragraph (a), clause (1), does not apply if the sales are
178.28derived from admission charges or from activities for which the money must be deposited
178.29with the school district treasurer under section
178.30the same manner as other revenues or expenditures of the school district under section
178.32(c) Sales of tangible personal property and services are exempt if the entire proceeds,
178.33less the necessary expenses for obtaining the property or services, will be contributed to
178.34a registered combined charitable organization described in section
178.35exclusively for charitable, religious, or educational purposes, and the registered combined
179.1charitable organization has given its written permission for the sale. Sales that occur over
179.2a period of more than 24 days per year are not exempt under this paragraph.
179.3(d) For purposes of this subdivision, a club, association, or other organization of
179.4elementary or secondary school students organized for the purpose of carrying on sports,
179.5educational, or other extracurricular activities is a separate organization from the school
179.6district or school for purposes of applying the $10,000 limit.
179.7EFFECTIVE DATE.This section is effective for sales and purchases made after
179.8June 30, 2013.
179.9 Sec. 35. Minnesota Statutes 2012, section 297A.70, subdivision 14, is amended to read:
179.10 Subd. 14. Fund-raising events sponsored by nonprofit groups. (a) Sales of
179.11tangible personal property or services at, and admission charges for fund-raising events
179.12sponsored by, a nonprofit organization are exempt if:
179.13(1) all gross receipts are recorded as such, in accordance with generally accepted
179.14accounting practices, on the books of the nonprofit organization; and
179.15(2) the entire proceeds, less the necessary expenses for the event, will be used solely
179.16and exclusively for charitable, religious, or educational purposes. Exempt sales include
179.17the sale of prepared food, candy, and soft drinks at the fund-raising event.
179.18(b) This exemption is limited in the following manner:
179.19(1) it does not apply to admission charges for events involving bingo or other
179.20gambling activities or to charges for use of amusement devices involving bingo or other
179.21gambling activities;
179.22(2) all gross receipts are taxable if the profits are not used solely and exclusively for
179.23charitable, religious, or educational purposes;
179.24(3) it does not apply unless the organization keeps a separate accounting record,
179.25including receipts and disbursements from each fund-raising event that documents all
179.26deductions from gross receipts with receipts and other records;
179.27(4) it does not apply to any sale made by or in the name of a nonprofit corporation as
179.28the active or passive agent of a person that is not a nonprofit corporation;
179.29(5) all gross receipts are taxable if fund-raising events exceed 24 days per year;
179.30(6) it does not apply to fund-raising events conducted on premises leased for more
179.31than five days but less than 30 days; and
179.32(7) it does not apply if the risk of the event is not borne by the nonprofit organization
179.33and the benefit to the nonprofit organization is less than the total amount of the state and
179.34local tax revenues forgone by this exemption.
180.1(c) For purposes of this subdivision, a "nonprofit organization" means any unit of
180.2government, corporation, society, association, foundation, or institution organized and
180.3operated for charitable, religious, educational, civic, fraternal, and senior citizens' or
180.4veterans' purposes, no part of the net earnings of which inures to the benefit of a private
180.5individual.
180.6EFFECTIVE DATE.This section is effective for sales and purchases made after
180.7June 30, 2013.
180.8 Sec. 36. Minnesota Statutes 2012, section 297A.70, is amended by adding a
180.9subdivision to read:
180.10 Subd. 18. Nursing homes and boarding care homes. (a) All sales, except those
180.11listed in paragraph (b), to a nursing home licensed under section 144A.02 or a boarding
180.12care home certified as a nursing facility under title 19 of the Social Security Act are
180.13exempt if the facility:
180.14(1) is exempt from federal income taxation pursuant to section 501(c)(3) of the
180.15Internal Revenue Code; and
180.16(2) is certified to participate in the medical assistance program under title 19 of the
180.17Social Security Act, or certifies to the commissioner that it does not discharge residents
180.18due to the inability to pay.
180.19(b) This exemption does not apply to the following sales:
180.20(1) building, construction, or reconstruction materials purchased by a contractor
180.21or a subcontractor as a part of a lump-sum contract or similar type of contract with a
180.22guaranteed maximum price covering both labor and materials for use in the construction,
180.23alteration, or repair of a building or facility;
180.24(2) construction materials purchased by tax-exempt entities or their contractors to
180.25be used in constructing buildings or facilities that will not be used principally by the
180.26tax-exempt entities;
180.27(3) lodging as defined under section
180.28(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section
180.29
180.30(4) leasing of a motor vehicle as defined in section
180.31as provided in paragraph (c).
180.32(c) This exemption applies to the leasing of a motor vehicle as defined in section
180.33
181.1(1) a truck, as defined in section
181.2passenger automobile, as defined in section
181.3used for carrying more than nine persons including the driver; and
181.4(2) intended to be used primarily to transport tangible personal property or residents
181.5of the nursing home or boarding care home.
181.6EFFECTIVE DATE.This section is effective for sales and purchases made after
181.7June 30, 2013.
181.8 Sec. 37. Minnesota Statutes 2012, section 297A.71, is amended by adding a
181.9subdivision to read:
181.10 Subd. 45. Biopharmaceutical manufacturing facility. (a) Materials and
181.11supplies used or consumed in, capital equipment incorporated into, and privately
181.12owned infrastructure in support of the construction, improvement, or expansion of a
181.13biopharmaceutical manufacturing facility in the state are exempt if the following criteria
181.14are met:
181.15(1) the facility is used for the manufacturing of biologics;
181.16(2) the total capital investment made at the facility exceeds $50,000,000; and
181.17(3) the facility creates and maintains at least 190 full-time equivalent positions at the
181.18facility. These positions must be new jobs in Minnesota and not the result of relocating
181.19jobs that currently exist in Minnesota.
181.20(b) The tax must be imposed and collected as if the rate under section 297A.62
181.21applied, and refunded in the manner provided in section 297A.75.
181.22(c) To be eligible for a refund, the owner of the biopharmaceutical manufacturing
181.23facility must:
181.24(1) initially apply to the Department of Employment and Economic Development
181.25for certification no later than one year from the final completion date of construction,
181.26improvement, or expansion of the facility; and
181.27(2) for each year that the owner of the biopharmaceutical manufacturing facility
181.28applies for a refund, the owner must have received written certification from the
181.29Department of Employment and Economic Development that the facility has met the
181.30criteria of paragraph (a).
181.31(d) The refund is to be paid annually at a rate of 25 percent of the total allowable
181.32refund payable to date, with the commissioner making annual payments of the remaining
181.33refund until all of the refund has been paid.
181.34(e) For purposes of this subdivision, "biopharmaceutical" and "biologics" are
181.35interchangeable and mean medical drugs or medicinal preparations produced using
182.1technology that uses biological systems, living organisms or derivatives of living
182.2organisms, to make or modify products or processes for specific use. The medical drugs or
182.3medicinal preparations include but are not limited to proteins, antibodies, nucleic acids,
182.4and vaccines.
182.5EFFECTIVE DATE.This section is effective retroactively to capital investments
182.6made and jobs created after December 31, 2012, and effective retroactively for sales and
182.7purchases made after December 31, 2012, and before July 1, 2019.
182.8 Sec. 38. Minnesota Statutes 2012, section 297A.71, is amended by adding a
182.9subdivision to read:
182.10 Subd. 46. Research and development facility. Materials and supplies used or
182.11consumed in, and equipment incorporated into, the construction or improvement of a
182.12research and development facility that has laboratory space of at least 400,000 square feet
182.13and utilizes both high-intensity and low-intensity laboratories, provided that the project
182.14has a total construction cost of at least $140,000,000 within a 24-month period. The tax on
182.15purchases imposed under this subdivision must be imposed and collected as if the rate under
182.16section 297A.62 applied and then refunded in the manner provided in section 297A.75.
182.17EFFECTIVE DATE.This section is effective for sales and purchases made after
182.18June 30, 2013, and before September 1, 2015.
182.19 Sec. 39. Minnesota Statutes 2012, section 297A.71, is amended by adding a
182.20subdivision to read:
182.21 Subd. 47. Industrial measurement manufacturing and controls facility. (a)
182.22Materials and supplies used or consumed in, capital equipment incorporated into,
182.23fixtures installed in, and privately owned infrastructure in support of the construction,
182.24improvement, or expansion of an industrial measurement manufacturing and controls
182.25facility are exempt if:
182.26(1) the total capital investment made at the facility is at least $60,000,000;
182.27(2) the facility employs at least 250 full-time equivalent employees that are not
182.28employees currently employed by the company in the state; and
182.29(3) the Department of Employment and Economic Development determines that
182.30the expansion, remodeling, or improvement of the facility has a significant impact on
182.31the state economy.
183.1(b) The tax must be imposed and collected as if the rate under section 297A.62
183.2applied and refunded in the manner provided in section 297A.75, only after the following
183.3criteria are met:
183.4(1) a refund may not be issued until the owner of the facility has received
183.5certification from the Department of Employment and Economic Development that the
183.6company meets the requirements in paragraph (a); and
183.7(2) to receive the refund, the owner of the industrial measurement manufacturing
183.8and controls facility must initially apply to the Department of Employment and Economic
183.9Development for certification no later than one year from the final completion date of
183.10construction, improvement, or expansion of the industrial measurement manufacturing
183.11and controls facility.
183.12EFFECTIVE DATE.This section is effective for sales and purchases made after
183.13June 30, 2013, and before December 31, 2015.
183.14 Sec. 40. Minnesota Statutes 2012, section 297A.75, subdivision 1, is amended to read:
183.15 Subdivision 1. Tax collected. The tax on the gross receipts from the sale of the
183.16following exempt items must be imposed and collected as if the sale were taxable and the
183.17rate under section
183.18
183.19
183.21
183.23
183.24subdivision 3
183.25
183.26section
183.27
183.2812
183.29
183.30section
183.31
183.33
183.34under section
184.1
184.2distribution of electrical energy and an aerial camera package exempt under section
184.4
184.53, paragraph (a), clause (10);
184.6
184.7projects and facilities under section
184.8
184.9meat processing facility exempt under section
184.10
184.11expansion of:
184.12(i) an aerospace defense manufacturing facility exempt under section
184.13subdivision 42;
184.14(ii) a biopharmaceutical manufacturing facility exempt under section 297A.71,
184.15subdivision 45;
184.16(iii) a research and development facility exempt under section 297A.71, subdivision
184.174b; and
184.18(iv) an industrial measurement manufacturing and controls facility exempt under
184.19section 297A.71, subdivision 47;
184.20
184.21use in a qualified data center exempt under section
184.22
184.23section
184.24(16) items purchased for use in providing critical access dental services exempt
184.25under section 297A.70, subdivision 7, paragraph (c); and
184.26(17) items and services purchased under a business subsidy agreement for use or
184.27consumption primarily in greater Minnesota exempt under section 297A.68, subdivision 49.
184.28EFFECTIVE DATE.The change to clause (1) is effective for sales and purchases
184.29made after August 31, 2014. The changes in clauses (13), (16), and (17), are effective the
184.30day following final enactment.
184.31 Sec. 41. Minnesota Statutes 2012, section 297A.75, subdivision 2, is amended to read:
184.32 Subd. 2. Refund; eligible persons. Upon application on forms prescribed by the
184.33commissioner, a refund equal to the tax paid on the gross receipts of the exempt items
184.34must be paid to the applicant. Only the following persons may apply for the refund:
185.1 (1) for subdivision 1, clauses (1)
185.2purchaser;
185.3 (2) for subdivision 1, clauses
185.4governmental subdivision;
185.5 (3) for subdivision 1, clause
185.6benefits provided in United States Code, title 38, chapter 21;
185.7 (4) for subdivision 1, clause
185.8homestead property;
185.9 (5) for subdivision 1, clause
185.10project;
185.11 (6) for subdivision 1, clause
185.12or a joint venture of municipal electric utilities;
185.13 (7) for subdivision 1, clauses
185.14of the qualifying business; and
185.15 (8) for subdivision 1, clauses (10), (11),
185.16the governmental entity that owns or contracts for the project or facility.
185.17EFFECTIVE DATE.This section is effective the day following final enactment.
185.18 Sec. 42. Minnesota Statutes 2012, section 297A.75, subdivision 3, is amended to read:
185.19 Subd. 3. Application. (a) The application must include sufficient information
185.20to permit the commissioner to verify the tax paid. If the tax was paid by a contractor,
185.21subcontractor, or builder, under subdivision 1,
185.22
185.23must furnish to the refund applicant a statement including the cost of the exempt items and
185.24the taxes paid on the items unless otherwise specifically provided by this subdivision. The
185.25provisions of sections
185.26 (b) An applicant may not file more than two applications per calendar year for
185.27refunds for taxes paid on capital equipment exempt under section
185.28 (c) Total refunds for purchases of items in section
185.29exceed $5,000,000 in fiscal years 2010 and 2011. Applications for refunds for purchases
185.30of items in sections
185.31subdivision 40, must not be filed until after June 30, 2009.
185.32EFFECTIVE DATE.This section is effective the day following final enactment.
185.33 Sec. 43. Minnesota Statutes 2012, section 297A.99, subdivision 1, is amended to read:
186.1 Subdivision 1. Authorization; scope. (a) A political subdivision of this state may
186.2impose a general sales tax (1) under section
186.3permitted by special law, or (4) if the political subdivision enacted and imposed the tax
186.4before January 1, 1982, and its predecessor provision.
186.5 (b) This section governs the imposition of a general sales tax by the political
186.6subdivision. The provisions of this section preempt the provisions of any special law:
186.7 (1) enacted before June 2, 1997, or
186.8 (2) enacted on or after June 2, 1997, that does not explicitly exempt the special law
186.9provision from this section's rules by reference.
186.10 (c) This section does not apply to or preempt a sales tax on motor vehicles or a
186.11special excise tax on motor vehicles.
186.12(d) A political subdivision may not advertise or expend funds for the promotion of a
186.13referendum to support imposing a local option sales tax.
186.14(e) Notwithstanding paragraph (d), a political subdivision may
186.15(1) conduct the referendum
186.16(2) disseminate information included in the resolution adopted under subdivision 2;
186.17(3) provide notice of, and conduct public forums at which proponents and opponents
186.18on the merits of the referendum are given equal time to express their opinions on the
186.19merits of the referendum;
186.20(4) provide facts and data on the impact of the proposed sales tax on consumer
186.21purchases; and
186.22(5) provide facts and data related to the programs and projects to be funded with
186.23the sales tax.
186.24EFFECTIVE DATE.This section is effective the day following final enactment.
186.25 Sec. 44. Laws 1993, chapter 375, article 9, section 46, subdivision 2, as amended by
186.26Laws 1997, chapter 231, article 7, section 40, Laws 1998, chapter 389, article 8, section
186.2730, Laws 2003, First Special Session chapter 21, article 8, section 13, Laws 2005, First
186.28Special Session chapter 3, article 5, section 26, and Laws 2009, chapter 88, article 4,
186.29section 15, is amended to read:
186.30 Subd. 2. Use of revenues. Revenues received from the tax authorized by subdivision
186.311 may only be used by the city to pay the cost of collecting the tax, and, except as provided in
186.32paragraph (e), to pay for the following projects or to secure or pay any principal, premium,
186.33or interest on bonds issued in accordance with subdivision 3 for the following projects.
186.34 (a) To pay all or a portion of the capital expenses of construction, equipment and
186.35acquisition costs for the expansion and remodeling of the St. Paul Civic Center complex,
187.1including the demolition of the existing arena and the construction and equipping of a
187.2new arena.
187.3 (b) Except as provided in paragraphs (e) and (f), the remainder of the funds must be
187.4spent for:
187.5 (1) capital projects to further residential, cultural, commercial, and economic
187.6development in both downtown St. Paul and St. Paul neighborhoods; and
187.7 (2) capital and operating expenses of cultural organizations in the city, provided
187.8that the amount spent under this clause must equal ten percent of the total amount spent
187.9under this paragraph in any year.
187.10 (c) The amount apportioned under paragraph (b) shall be no less than 60 percent
187.11of the revenues derived from the tax each year, except to the extent that a portion of that
187.12amount is required to pay debt service on (1) bonds issued for the purposes of paragraph (a)
187.13prior to March 1, 1998; or (2) bonds issued for the purposes of paragraph (a) after March 1,
187.141998, but only if the city council determines that 40 percent of the revenues derived from
187.15the tax together with other revenues pledged to the payment of the bonds, including the
187.16proceeds of definitive bonds, is expected to exceed the annual debt service on the bonds.
187.17 (d) If in any year more than 40 percent of the revenue derived from the tax authorized
187.18by subdivision 1 is used to pay debt service on the bonds issued for the purposes of
187.19paragraph (a) and to fund a reserve for the bonds, the amount of the debt service payment
187.20that exceeds 40 percent of the revenue must be determined for that year. In any year when
187.2140 percent of the revenue produced by the sales tax exceeds the amount required to pay
187.22debt service on the bonds and to fund a reserve for the bonds under paragraph (a), the
187.23amount of the excess must be made available for capital projects to further residential,
187.24cultural, commercial, and economic development in the neighborhoods and downtown
187.25until the cumulative amounts determined for all years under the preceding sentence have
187.26been made available under this sentence. The amount made available as reimbursement in
187.27the preceding sentence is not included in the 60 percent determined under paragraph (c).
187.28 (e)
187.29
187.30
187.31
187.32than 40 percent of the revenue from the tax in any year, the city may place the difference
187.33between 40 percent of the revenue and the amounts allocated under paragraphs (a) and (d)
187.34in an economic development fund to be used for any economic development purposes.
187.35 (f) By January 15 of each year, the mayor and the city council must report to the
187.36legislature on the use of sales tax revenues during the preceding one-year period.
188.1EFFECTIVE DATE.This section is effective the day after compliance by the
188.2governing body of the city of St. Paul with Minnesota Statutes, section 645.021,
188.3subdivisions 2 and 3.
188.4 Sec. 45. Laws 1993, chapter 375, article 9, section 46, subdivision 5, as amended by
188.5Laws 1998, chapter 389, article 8, section 32, is amended to read:
188.6 Subd. 5. Expiration of taxing authority. The authority granted by subdivision 1 to
188.7the city to impose a sales tax shall expire on December 31,
188.8time as the city shall, by ordinance, determine. Any funds remaining after completion of
188.9projects approved under subdivision 2, paragraph (a) and retirement or redemption of any
188.10bonds or other obligations may be placed in the general fund of the city.
188.11EFFECTIVE DATE.This section is effective the day after compliance by the
188.12governing body of the city of St. Paul with Minnesota Statutes, section 645.021,
188.13subdivisions 2 and 3.
188.14 Sec. 46. Laws 2002, chapter 377, article 3, section 25, as amended by Laws 2009,
188.15chapter 88, article 4, section 19, and Laws 2010, chapter 389, article 5, section 3, is
188.16amended to read:
188.17 Sec. 25. ROCHESTER LODGING TAX.
188.18 Subdivision 1. Authorization. Notwithstanding Minnesota Statutes, section
188.20tax of one percent on the gross receipts from the furnishing for consideration of lodging at
188.21a hotel, motel, rooming house, tourist court, or resort, other than the renting or leasing of it
188.22for a continuous period of 30 days or more.
188.23 Subd. 1a. Authorization. Notwithstanding Minnesota Statutes, section
188.25of Rochester may impose an additional tax of
188.26the furnishing for consideration of lodging at a hotel, motel, rooming house, tourist court, or
188.27resort, other than the renting or leasing of it for a continuous period of 30 days or more only
188.28upon the approval of the city governing body of a total financial package for the project.
188.29 Subd. 2. Disposition of proceeds. (a) The gross proceeds from the tax imposed
188.30under subdivision 1 must be used by the city to fund a local convention or tourism bureau
188.31for the purpose of marketing and promoting the city as a tourist or convention center.
188.32(b) The gross proceeds from the
188.331a shall be used to pay for (1) design, construction, renovation, improvement, and
188.34expansion of the Mayo Civic Center Complex and related infrastructure, including but not
189.1limited to, skyway access, lighting, parking, or landscaping; and (2) for payment of any
189.2principal, interest, or premium on bonds issued to finance the construction, renovation,
189.3improvement, and expansion of the Mayo Civic Center Complex.
189.4 Subd. 2a. Bonds. The city of Rochester may issue, without an election, general
189.5obligation bonds of the city, in one or more series, in the aggregate principal amount not to
189.6exceed
189.7construction, renovation, improvement, and expansion of the Mayo Civic Center Complex,
189.8and related infrastructure, including but not limited to, skyway, access, lighting, parking,
189.9and landscaping. The city may pledge the lodging tax authorized by subdivision 1a
189.10
189.11payment of the bonds. The debt represented by the bonds is not included in computing any
189.12debt limitations applicable to the city, and the levy of taxes required by Minnesota Statutes,
189.13section
189.14limitation or included in computing or applying any levy limitation applicable to the city.
189.15 Subd. 3. Expiration of taxing authority.
189.16
189.17
189.18
189.19
189.20
189.21
189.22
189.23tax provided that:
189.24(1) the revenues raised before the repeal are sufficient to meet all bond or other
189.25obligations backed by revenues of the tax; and
189.26(2) the repeal date meets the requirements of section 297A.99, subdivision 12.
189.27EFFECTIVE DATE.This section is effective the day after the governing body of
189.28the city of Rochester and its chief fiscal officer comply with Minnesota Statutes, section
189.29645.021, subdivisions 2 and 3.
189.30 Sec. 47. Laws 2005, First Special Session chapter 3, article 5, section 37, subdivision
189.312, is amended to read:
189.32 Subd. 2. Use of revenues. (a) Revenues received from the tax authorized by
189.33subdivision 1 by the city of St. Cloud must be used for the cost of collecting and
189.34administering the tax and to pay all or part of the capital or administrative costs of the
189.35development, acquisition, construction, improvement, and securing and paying debt
190.1service on bonds or other obligations issued to finance the following regional projects as
190.2approved by the voters and specifically detailed in the referendum authorizing the tax or
190.3extending the tax:
190.4 (1) St. Cloud Regional Airport;
190.5 (2) regional transportation improvements;
190.6 (3) regional community and aquatics centers;
190.7 (4) regional public libraries; and
190.8 (5) acquisition and improvement of regional park land and open space.
190.9 (b) Revenues received from the tax authorized by subdivision 1 by the cities of St.
190.10Joseph, Waite Park, Sartell, Sauk Rapids, and St. Augusta must be used for the cost of
190.11collecting and administering the tax and to pay all or part of the capital or administrative
190.12costs of the development, acquisition, construction, improvement, and securing and paying
190.13debt service on bonds or other obligations issued to fund the projects specifically approved
190.14by the voters at the referendum authorizing the tax or extending the tax. The portion of
190.15revenues from the city going to fund the regional airport or regional library located in the
190.16city of St. Cloud will be as required under the applicable joint powers agreement.
190.17 (c) The use of revenues received from the taxes authorized in subdivision 1 for
190.18projects allowed under paragraphs (a) and (b) are limited to the amount authorized for
190.19each project under the enabling referendum.
190.20EFFECTIVE DATE.This section is effective for the city that approves them the
190.21day after compliance by the governing body of each city with Minnesota Statutes, section
190.22645.021, subdivision 3.
190.23 Sec. 48. Laws 2005, First Special Session chapter 3, article 5, section 37, subdivision
190.244, is amended to read:
190.25 Subd. 4. Termination of tax. The tax imposed in the cities of St. Joseph, St.
190.26Cloud, St. Augusta, Sartell, Sauk Rapids, and Waite Park under subdivision 1 expires
190.27when the city council determines that sufficient funds have been collected from the tax
190.28to retire or redeem the bonds and obligations authorized under subdivision 2, paragraph
190.29(a), but no later than December 31, 2018. Notwithstanding Minnesota Statutes, section
190.30297A.99, subdivision 3, paragraphs (a), (c), and (d), a city may extend the tax imposed
190.31under subdivision 1 through December 31, 2038, if approved by voters of the city no later
190.32than November 7, 2017, at either a general election or at a special election held on a first
190.33Tuesday after a first Monday in November.
191.1EFFECTIVE DATE.This section is effective for the city that approves them the
191.2day after compliance by the governing body of each city with Minnesota Statutes, section
191.3645.021, subdivision 3.
191.4 Sec. 49. Laws 2008, chapter 366, article 7, section 19, subdivision 3, as amended by
191.5Laws 2011, First Special Session chapter 7, article 4, section 8, is amended to read:
191.6 Subd. 3. Use of revenues. Notwithstanding Minnesota Statutes, section
191.7subdivision 3
191.8used to pay for the costs of improvements to the Sportsman Park/Ballfields, Riverside
191.9Park, Lions Park/Pavilion, Cedar South Park also known as Eldorado Park, and Spring
191.10Street Park; improvements to and extension of the River County Bike Trail; acquisition
191.11 and construction
191.12
191.13
191.14over Interstate 94 and State Highway 24; and the acquisition of land and construction of
191.15buildings for a community and recreation center. The total amount of revenues from the
191.16taxes in subdivisions 1 and 2 that may be used to fund these projects is $12,000,000
191.17plus any associated bond costs.
191.18EFFECTIVE DATE.This section is effective the day after compliance by the
191.19governing body of the city of Clearwater with Minnesota Statutes, section 645.021,
191.20subdivisions 2 and 3.
191.21 Sec. 50. Laws 2010, chapter 389, article 5, section 6, subdivision 6, is amended to read:
191.22 Subd. 6. Use of food and beverages tax. The revenues derived from the tax
191.23imposed under subdivision 5 must be used by the city of Marshall to pay the costs of
191.24collecting and administering the food and beverages tax, to pay all or part of the operating
191.25costs of the new and existing facilities of the Minnesota Emergency Response and
191.26Industry Training Center, including the payment of debt service on bonds issued under
191.27subdivision 2, and to pay all or part of the operating costs of the facilities of the Southwest
191.28Minnesota Regional Amateur Sports Center, including the payment of debt service on
191.29bonds issued under subdivision 2. Authorized expenses for each organization include,
191.30but are not limited to, acquiring property; predesign; design; and paying construction,
191.31furnishing, and equipment costs related to these facilities and paying debt service on
191.32bonds or other obligations issued by the city.
191.33EFFECTIVE DATE.This section is effective the day following final enactment.
192.1 Sec. 51. CITY OF MARSHALL; VALIDATION OF PRIOR ACT.
192.2 (a) Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city
192.3of Marshall may approve Laws 2010, chapter 389, article 5, section 6, as amended by
192.4Laws 201l, First Special Session chapter 7, article 4, section 9, and file its approval with
192.5the secretary of state by June 15, 2013. If approved as authorized under this paragraph,
192.6actions undertaken by the city pursuant to the approval of the voters on November 6, 2012,
192.7and otherwise in accordance with Laws 2010, chapter 389, article 5, section 6, as amended
192.8by Laws 201l, First Special Session chapter 7, article 4, section 9, are validated.
192.9 (b) Notwithstanding the time limit on the imposition of tax under Laws 2010,
192.10chapter 389, article 5, section 6, subdivision 1, as amended by Laws 201l, First Special
192.11Session chapter 7, article 4, section 9, and subject to local approval under paragraph (a),
192.12the city of Marshall may impose the tax on or before July 1, 2013.
192.13EFFECTIVE DATE.This section is effective the day following final enactment.
192.14 Sec. 52. CITY OF PROCTOR; VALIDATION OF PRIOR ACT.
192.15 Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city of
192.16Proctor may approve, by resolution, Laws 2008, chapter 366, article 7, section 13, and
192.17Laws 2010, chapter 389, article 5, sections 1 and 2, and file its approval with the secretary
192.18of state by January 1, 2014. If approved under this paragraph, actions undertaken by
192.19the city pursuant to the approval of the voters on November 2, 2010, and otherwise in
192.20accordance with those laws are validated.
192.21EFFECTIVE DATE.This section is effective the day following final enactment.
192.22 Sec. 53. REPEALER.
192.23(a) Minnesota Statutes 2012, sections 297A.61, subdivision 27; and 297A.68,
192.24subdivision 35, are repealed.
192.25(b) Laws 2009, chapter 88, article 4, section 23, as amended by Laws 2010, chapter
192.26389, article 5, section 4, is repealed.
192.27EFFECTIVE DATE.Paragraph (a) is effective for sales and purchases made after
192.28June 30, 2013. Paragraph (b) is effective the day following final enactment.
192.31 Section 1. Minnesota Statutes 2012, section 469.071, subdivision 5, is amended to read:
193.1 Subd. 5. Exception; parking facilities. Notwithstanding section
193.2Bloomington port authority need not require competitive bidding with respect to a
193.3structured parking facility or other public improvements constructed in conjunction with,
193.4and directly above or below, or adjacent and integrally related to, a development and
193.5financed with the proceeds of tax increment
193.6port authority and the city of Bloomington.
193.7EFFECTIVE DATE.This section is effective upon compliance of the governing
193.8body of the city of Bloomington with the requirements of Minnesota Statutes, section
193.9645.021, subdivision 3.
193.10 Sec. 2. Minnesota Statutes 2012, section 469.169, is amended by adding a subdivision
193.11to read:
193.12 Subd. 19. Additional border city allocation; 2013. (a) In addition to the tax
193.13reductions authorized in subdivisions 12 to 18, the commissioner shall allocate $750,000
193.14for tax reductions to border city enterprise zones in cities located on the western border
193.15of the state. The commissioner shall allocate this amount among cities on a per capita
193.16basis. Allocations made under this subdivision may be used for tax reductions under
193.17section 469.171, or for other offsets of taxes imposed on or remitted by businesses located
193.18in the enterprise zone, but only if the municipality determines that the granting of the tax
193.19reduction or offset is necessary to retain a business within or attract a business to the zone.
193.20The city alternatively may elect to use any portion of the allocation under this paragraph
193.21for tax reductions under section 469.1732 or 469.1734.
193.22 (b) The commissioner shall allocate $750,000 for tax reductions under section
193.23469.1732 or 469.1734 to cities with border city enterprise zones located on the western
193.24border of the state. The commissioner shall allocate this amount among the cities on a per
193.25capita basis. The city alternatively may elect to use any portion of the allocation provided
193.26in this paragraph for tax reductions under section 469.171.
193.27EFFECTIVE DATE.This section is effective July 1, 2013.
193.28 Sec. 3. Minnesota Statutes 2012, section 469.176, subdivision 4c, is amended to read:
193.29 Subd. 4c. Economic development districts. (a) Revenue derived from tax increment
193.30from an economic development district may not be used to provide improvements, loans,
193.31subsidies, grants, interest rate subsidies, or assistance in any form to developments
193.32consisting of buildings and ancillary facilities, if more than 15 percent of the buildings and
193.33facilities (determined on the basis of square footage) are used for a purpose other than:
194.1 (1) the manufacturing or production of tangible personal property, including
194.2processing resulting in the change in condition of the property;
194.3 (2) warehousing, storage, and distribution of tangible personal property, excluding
194.4retail sales;
194.5 (3) research and development related to the activities listed in clause (1) or (2);
194.6 (4) telemarketing if that activity is the exclusive use of the property;
194.7 (5) tourism facilities; or
194.8 (6)
194.9
194.10 (b) Notwithstanding the provisions of this subdivision, revenues derived from tax
194.11increment from an economic development district may be used to provide improvements,
194.12loans, subsidies, grants, interest rate subsidies, or assistance in any form for up to 15,000
194.13square feet of any separately owned commercial facility located within the municipal
194.14jurisdiction of a small city, if the revenues derived from increments are spent only to
194.15assist the facility directly or for administrative expenses, the assistance is necessary to
194.16develop the facility, and all of the increments, except those for administrative expenses,
194.17are spent only for activities within the district.
194.18 (c) A city is a small city for purposes of this subdivision if the city was a small city
194.19in the year in which the request for certification was made and applies for the rest of
194.20the duration of the district, regardless of whether the city qualifies or ceases to qualify
194.21as a small city.
194.22
194.23
194.24
194.25
194.26
194.27
194.28
194.29
194.30
194.31
194.32
194.33
194.34
195.1
195.2
195.3
195.4EFFECTIVE DATE.This section is effective for districts for which the request for
195.5certification was made after June 30, 2012.
195.6 Sec. 4. Minnesota Statutes 2012, section 469.176, subdivision 4g, is amended to read:
195.7 Subd. 4g. General government use prohibited. (a) Tax increments may not be
195.8used to circumvent existing levy limit law.
195.9 (b) No tax increment from any district may be used for the acquisition, construction,
195.10renovation, operation, or maintenance of a building to be used primarily and regularly
195.11for conducting the business of a municipality, county, school district, or any other local
195.12unit of government or the state or federal government. This provision does not prohibit
195.13the use of revenues derived from tax increments for the construction or renovation of
195.14a parking structure.
195.15
195.16
195.17
195.18
195.19
195.20
195.21
195.22
195.23
195.24
195.25
195.26
195.27
195.28EFFECTIVE DATE.This section is effective the day following final enactment for
195.29all tax increment financing districts, regardless of when the request for certification was
195.30made, but applies only to amounts spent after final enactment.
195.31 Sec. 5. Minnesota Statutes 2012, section 469.176, subdivision 6, is amended to read:
195.32 Subd. 6. Action required. (a) If, after four years from the date of certification of
195.33the original net tax capacity of the tax increment financing district pursuant to section
196.2including qualified improvement of a street adjacent to a parcel but not installation
196.3of utility service including sewer or water systems, has been commenced on a parcel
196.4located within a tax increment financing district by the authority or by the owner of the
196.5parcel in accordance with the tax increment financing plan, no additional tax increment
196.6may be taken from that parcel, and the original net tax capacity of that parcel shall be
196.7excluded from the original net tax capacity of the tax increment financing district. If the
196.8authority or the owner of the parcel subsequently commences demolition, rehabilitation,
196.9or renovation or other site preparation on that parcel including qualified improvement of
196.10a street adjacent to that parcel, in accordance with the tax increment financing plan, the
196.11authority shall certify to the county auditor that the activity has commenced, and the
196.12county auditor shall certify the net tax capacity thereof as most recently certified by the
196.13commissioner of revenue and add it to the original net tax capacity of the tax increment
196.14financing district. The county auditor must enforce the provisions of this subdivision. The
196.15authority must submit to the county auditor evidence that the required activity has taken
196.16place for each parcel in the district. The evidence for a parcel must be submitted by
196.17February 1 of the fifth year following the year in which the parcel was certified as included
196.18in the district. For purposes of this subdivision, qualified improvements of a street are
196.19limited to (1) construction or opening of a new street, (2) relocation of a street, and (3)
196.20substantial reconstruction or rebuilding of an existing street.
196.21(b) For districts which were certified on or after January 1, 2005, and before April
196.2220, 2009, the four-year period under paragraph (a) is
196.23on December 31, 2016.
196.24EFFECTIVE DATE.This section is effective the day following final enactment
196.25and applies to districts certified on or after January 1, 2005, and before April 20, 2009.
196.26 Sec. 6. Minnesota Statutes 2012, section 469.177, subdivision 1a, is amended to read:
196.27 Subd. 1a. Original local tax rate. At the time of the initial certification of the
196.28original net tax capacity for a tax increment financing district or a subdistrict, the county
196.29auditor shall certify the original local tax rate that applies to the district or subdistrict. The
196.30original local tax rate is the sum of all the local tax rates, excluding that portion of the
196.31school rate attributable to the general education levy under section 126C.13, that apply
196.32to a property in the district or subdistrict. The local tax rate to be certified is the rate in
196.33effect for the same taxes payable year applicable to the tax capacity values certified as
196.34the district's or subdistrict's original tax capacity. The resulting tax capacity rate is the
196.35original local tax rate for the life of the district or subdistrict.
197.1EFFECTIVE DATE.This section is effective for districts for which the request for
197.2certification is made after April 15, 2013.
197.3 Sec. 7. Minnesota Statutes 2012, section 469.177, is amended by adding a subdivision
197.4to read:
197.5 Subd. 1d. Original net tax capacity adjustment; homestead market value
197.6exclusion. (a) Upon approval by the municipality, by resolution, the authority may elect to
197.7reduce the original net tax capacity of a qualified district by the amount of the tax capacity
197.8attributable to the market value exclusion under section 273.13, subdivision 35, for taxes
197.9payable in the year preceding the election. The amount of the reduction may not reduce
197.10the original net tax capacity below zero.
197.11 (b) For purposes of this subdivision, a qualified district means a tax increment
197.12financing district that satisfies the following conditions:
197.13 (1) for taxes payable in 2011, the authority received a homestead market value credit
197.14reimbursement under section 273.1384 for the district of $10,000 or more;
197.15 (2) for taxes payable in 2013, the reduction in captured tax capacity resulting from
197.16the market value exclusion for the district was equal to or greater than 1.75 percent of the
197.17district's captured tax capacity; and
197.18 (3) either (i) the authority is permitted to expend increments on activities under the
197.19provisions of section 469.1763, subdivision 3, or an equivalent provision of special law
197.20on July 1, 2013, or (ii) the district's tax increments received for taxes payable in 2012
197.21exceeded the amount of debt service payments due during calendar year 2012 on bonds
197.22issued under section 469.178 to which the district's increments are pledged.
197.23The calculation of the amount under clause (2) must reflect any adjustments to original
197.24net tax capacity made under subdivision 1, paragraphs (d) and (e), for the homestead
197.25market value exclusion.
197.26 (c) The authority must notify the county auditor of its election under this section no
197.27later than July 1, 2014. Notifications made by July 1, 2013, are effective beginning for
197.28taxes payable in 2014, and notifications made after July 1, 2013, are effective beginning
197.29for taxes payable in 2015.
197.30EFFECTIVE DATE.This section is effective the day following final enactment
197.31and applies to all tax increment financing districts regardless of when the request for
197.32certification was made.
197.33 Sec. 8. Minnesota Statutes 2012, section 469.177, is amended by adding a subdivision
197.34to read:
198.1 Subd. 1e. Adjustments; qualifying districts. (a) For any tax increment financing
198.2district that satisfies the requirements of paragraph (b), the original net tax capacity must
198.3be reduced by the full amount of the original net tax capacity or $20,000, whichever is less.
198.4 (b) A tax increment financing district qualifies under this subdivision if it satisfies
198.5the following conditions:
198.6 (1) the district was certified after January 1, 2011, and before January 1, 2012;
198.7 (2) for assessment year 2012, at least 75 percent of the tax capacity of the district
198.8is class 4d property; and
198.9 (3) for assessment year 2012, the average estimated market value is over $115,000
198.10per housing unit for the portion of the property that is class 4d.
198.11(c) An authority or a property owner within a tax increment financing district must
198.12notify the county assessor of a district that qualifies under this subdivision by July 1, 2013.
198.13(d) This subdivision expires on December 31, 2021.
198.14EFFECTIVE DATE.This section is effective beginning for taxes payable in 2014.
198.15 Sec. 9. Minnesota Statutes 2012, section 469.177, subdivision 9, is amended to read:
198.16 Subd. 9. Distributions of excess taxes on captured net tax capacity. (a) If the
198.17amount of tax paid on captured net tax capacity exceeds the amount of tax increment,
198.18the county auditor shall distribute the excess, except increment attributable to the
198.19general education levy, to the municipality, county, and school district as follows: each
198.20governmental unit's share of the excess equals
198.21(1) the total amount of the excess for the tax increment financing district, multiplied by
198.22(2) a fraction, the numerator of which is the current local tax rate of the governmental
198.23unit less the governmental unit's local tax rate for the year the original local tax rate for the
198.24district was certified (in no case may this amount be less than zero) and the denominator
198.25of which is the sum of the numerators for the municipality, county, and school district.
198.26If the entire increase in the local tax rate is attributable to a taxing district, other than
198.27the municipality, county, or school district, then the excess must be distributed to the
198.28municipality, county, and school district in proportion to their respective local tax rates.
198.29(b) The amounts distributed shall be deducted in computing the levy limits of the
198.30taxing district for the succeeding taxable year.
198.31(c) In the case of distributions to a school district, the county auditor shall report
198.32amounts distributed to the commissioner of education in the same manner as provided
198.33for excess increments under section
198.34deducted from the school district's state aid payments and levy limitation according to
198.35section
199.1(d) The amount of taxes attributable to imposing the general education levy under
199.2section 126C.13 must be returned to the school district within which the tax increment
199.3financing district is located.
199.4EFFECTIVE DATE.This section is effective for districts for which the request for
199.5certification is made after April 15, 2013.
199.6 Sec. 10. Minnesota Statutes 2012, section 473F.08, is amended by adding a subdivision
199.7to read:
199.8 Subd. 3c. Mall of America. (a) When computing the net tax capacity under section
199.9473F.05, the Hennepin County auditor shall exclude the captured tax capacity of Tax
199.10Increment Financing Districts No. 1-C and No. 1-G in the city of Bloomington.
199.11 (b) Notwithstanding the provisions of subdivision 2, paragraph (a), the
199.12commercial-industrial contribution percentage for the city of Bloomington is the
199.13contribution net tax capacity divided by the total net tax capacity of commercial-industrial
199.14property in the city, excluding any commercial-industrial property that is captured tax
199.15capacity of Tax Increment Financing Districts No. 1-C and No. 1-G.
199.16 (c) The property taxes to be paid on commercial-industrial tax capacity that is
199.17included in the captured tax capacity of Tax Increment Financing Districts No. 1-C and
199.18No. 1-G in the city of Bloomington must be determined as described in subdivision 6,
199.19except that the portion of the tax that is based on the areawide tax rate is to be treated
199.20as tax increment under section 469.176.
199.21 (d) The provisions of this subdivision take effect only if the clerk of the city of
199.22Bloomington certifies to the Hennepin County auditor that the city has entered into a
199.23binding written agreement with the Metropolitan Council to repair and restore, or to
199.24replace, the old Cedar Avenue bridge for use by bicycle commuters and recreational users.
199.25 (e) This subdivision expires on the earliest of the following dates:
199.26 (1) when the tax increment financing districts have been decertified in 2024 or 2035,
199.27as provided by section 22, subdivision 2 or 4; or
199.28 (2) on January 1, 2014, if the city clerk fails to make the certification provided in
199.29paragraph (d) or if the city fails to file its local approval of section 23 with the secretary
199.30of state by December 31, 2013.
199.31EFFECTIVE DATE.This section is effective beginning for property taxes payable
199.32in 2014.
199.33 Sec. 11. Laws 2008, chapter 366, article 5, section 26, is amended to read:
200.1 Sec. 26. BLOOMINGTON TAX INCREMENT FINANCING; FIVE-YEAR
200.2RULE.
200.3 (a) The requirements of Minnesota Statutes, section
200.4activities must be undertaken within a five-year period from the date of certification of
200.5a tax increment financing district, are increased to a
200.6Port Authority of the City of Bloomington's Tax Increment Financing District No. 1-I,
200.7Bloomington Central Station.
200.8 (b) Notwithstanding the provisions of Minnesota Statutes, section 469.176, or any
200.9other law to the contrary, the city of Bloomington and its port authority may extend the
200.10duration limits of the district for a period through December 31, 2039.
200.11 (c) Effective for taxes payable in 2014, tax increment for the district must be
200.12computed using the current local tax rate, notwithstanding the provisions of Minnesota
200.13Statutes, section 469.177, subdivision 1a.
200.14EFFECTIVE DATE.Paragraphs (a) and (c) are effective upon compliance by
200.15the governing body of the city of Bloomington with the requirements of Minnesota
200.16Statutes, section 645.021, subdivision 3. Paragraph (b) is effective upon compliance by
200.17the governing bodies of the city of Bloomington, Hennepin County, and Independent
200.18School District No. 271 with the requirements of Minnesota Statutes, sections 469.1782,
200.19subdivision 2, and 645.021, subdivision 3.
200.20 Sec. 12. Laws 2008, chapter 366, article 5, section 34, as amended by Laws 2009,
200.21chapter 88, article 5, section 11, is amended to read:
200.22 Sec. 34. CITY OF OAKDALE;
200.23DEEMED OCCUPIED.
200.24
200.25
200.26
200.27
200.28
200.29
200.30
200.31
200.32
200.33
200.34
201.1
201.2
201.3 (a) Parcel numbers 3102921320054, 3102921320055, 3102921320056,
201.43102921320057, 3102921320061, and 3102921330004 are deemed to meet the
201.5requirements of Minnesota Statutes, section 469.174, subdivision 10, paragraph (d),
201.6notwithstanding any contrary provisions of that paragraph, if the following conditions
201.7are met:
201.8 (1) a building located on any part of each of the specified parcels was demolished after
201.9the Housing and Redevelopment Authority for the city of Oakdale adopted a resolution
201.10under Minnesota Statutes, section 469.174, subdivision 10, paragraph (d), clause (3);
201.11 (2) the building was removed either by the authority, by a developer under a
201.12development agreement with the Housing and Redevelopment Authority for the city of
201.13Oakdale, or by the owner of the property without entering into a development agreement
201.14with the Housing and Redevelopment Authority for the city of Oakdale; and
201.15 (3) the request for certification of the parcel as part of a district is filed with the
201.16county auditor by December 31, 2017.
201.17 (b) The provisions of this section allow an election by the Housing and
201.18Redevelopment Authority for the city of Oakdale for the parcels deemed occupied under
201.19paragraph (a), notwithstanding the provisions of Minnesota Statutes, sections 469.174,
201.20subdivision 10, paragraph (d), and 469.177, subdivision 1, paragraph (f).
201.21 (c) The city may elect, in the tax increment financing plan, to collect increment from
201.22a redevelopment district created under the provisions of this section for an additional ten
201.23years beyond the limit in Minnesota Statutes, section 469.176, subdivision 1b.
201.24EFFECTIVE DATE.This section is effective upon compliance by the governing
201.25body of the city of Oakdale with the requirements of Minnesota Statutes, section 645.021,
201.26subdivision 3, except that the provisions of paragraph (c) are effective only upon
201.27compliance with Minnesota Statutes, section 469.1782, subdivision 2, by Ramsey County
201.28and Independent School District No. 622.
201.29 Sec. 13. Laws 2010, chapter 216, section 55, is amended to read:
201.30 Sec. 55. OAKDALE; TAX INCREMENT FINANCING DISTRICT.
201.31 Subdivision 1. Duration of district. Notwithstanding the provisions of Minnesota
201.32Statutes, section
201.33from Tax Increment Financing District No. 6 (Bergen Plaza) through December 31,
201.34 2040, subject to the conditions described in subdivision 2.
202.1 Subd. 2. Conditions for extension. (a) Subdivision 1 applies only if the following
202.2conditions are met:
202.3 (1) by July 1, 2011, the city of Oakdale has entered into a development agreement
202.4with a private developer for development or redevelopment of all or a substantial part of
202.5the
202.6 (2) by November 1, 2011, the city of Oakdale or a private developer commences
202.7construction of streets, traffic improvements, water, sewer, or related infrastructure that
202.8serves one or both of the parcels with the following parcel identification numbers:
202.92902921330001 and 2902921330005. For the purposes of this section, construction
202.10commences upon grading or other visible improvements that are part of the subject
202.11infrastructure.
202.12 (b) All tax increments received by the city of Oakdale under subdivision 1 after
202.13December 31, 2016, must be used only to pay costs that are both:
202.14 (1) related to redevelopment of the parcels specified in this subdivision or
202.15parcel numbers 3102921320053, 3102921320054, 3102921320055, 3102921320056,
202.163102921320057, 3102921320058, 3102921320059, 3102921320060, 3102921320061,
202.173102921320062, 3102921320063, 3102921330004, and 3102921330005, including,
202.18without limitation, any
202.19any of the referenced parcels; and
202.20 (2) otherwise eligible under law to be paid with increments from the specified tax
202.21increment financing district
202.22
202.23EFFECTIVE DATE.This section is effective upon compliance by the governing
202.24body of the city of Oakdale with the requirements of Minnesota Statutes, section 645.021,
202.25subdivision 3, except that the amendments to subdivision 1 are effective only upon
202.26compliance with Minnesota Statutes, section 469.1782, subdivision 2, by Ramsey County
202.27and Independent School District No. 622.
202.28 Sec. 14. ST. CLOUD; TAX INCREMENT FINANCING.
202.29 The request for certification of Tax Increment Financing District No. 2, commonly
202.30referred to as the Norwest District, in the city of St. Cloud is deemed to have been made
202.31on or after August 1, 1979, and before July 1, 1982. Revenues derived from tax increment
202.32for that district must be treated for purposes of any law as revenue of a tax increment
202.33financing district for which the request for certification was made during that time period.
203.1EFFECTIVE DATE.This section is effective upon approval by the governing
203.2body of the city of St. Cloud and compliance with Minnesota Statutes, section 645.021,
203.3subdivision 3.
203.4 Sec. 15. CITY OF GLENCOE; TAX INCREMENT FINANCING DISTRICT
203.5EXTENSION.
203.6 Subdivision 1. Duration of district. Notwithstanding the provisions of Minnesota
203.7Statutes, section 469.176, subdivision 1b, paragraph (a), clause (4), or any other law to the
203.8contrary, the city of Glencoe may collect tax increments from Tax Increment Financing
203.9District No. 4 (McLeod County District No. 007) through December 31, 2023, subject to
203.10the conditions in subdivision 2.
203.11 Subd. 2. Exclusive use of revenues. (a) All tax increments derived from Tax
203.12Increment Financing District No. 4 (McLeod County District No. 007) that are collected
203.13after December 31, 2013, must be used only to pay debt service on or to defease bonds that
203.14were outstanding on January 1, 2013 and that were issued to finance improvements serving:
203.15 (1) Tax Increment Financing District No. 14 (McLeod County District No. 033)
203.16(Downtown);
203.17 (2) Tax Increment Financing District No. 15 (McLeod County District No. 035)
203.18(Industrial Park); and
203.19 (3) benefited properties as further described in proceedings related to the city's series
203.202007A bonds, dated September 1, 2007, and any bonds issued to refund those bonds.
203.21 (b) Increments may also be used to pay debt service on or to defease bonds issued to
203.22refund the bonds described in paragraph (a), if the refunding bonds do not increase the
203.23present value of debt service due on the refunded bonds when the refunding is closed.
203.24 (c) When the bonds described in paragraphs (a) and (b) have been paid or defeased,
203.25the district must be decertified and any remaining increment returned to the city, county,
203.26and school district as provided in Minnesota Statutes, section 469.176, subdivision 2,
203.27paragraph (c), clause (4).
203.28EFFECTIVE DATE.This section is effective upon compliance by the governing
203.29bodies of the city of Glencoe, McLeod County, and Independent School District No.
203.302859 with the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and
203.31645.021, subdivision 3.
203.32 Sec. 16. CITY OF ELY; TAX INCREMENT FINANCING.
204.1 Subdivision 1. Extension of district. Notwithstanding Minnesota Statutes, section
204.2469.176, subdivision 1b, or any other law to the contrary, the city of Ely may collect
204.3tax increment from Tax Increment Financing District No. 1 through December 31,
204.42021. Increments from the district may only be used to pay binding obligations and
204.5administrative expenses.
204.6 Subd. 2. Binding obligations. For purposes of this section, "binding obligations"
204.7means the binding contractual or debt obligation of Tax Increment Financing District
204.8No. 1 entered into before January 1, 2013.
204.9 Subd. 3. Expenditures outside district. Notwithstanding Minnesota Statutes,
204.10section 469.1763, subdivision 2, the governing body of the city of Ely may elect to
204.11transfer revenues derived from increments from its Tax Increment Financing District No.
204.123 to the tax increment account established under Minnesota Statutes, section 469.177,
204.13subdivision 5, for Tax Increment Financing District No. 1. The amount that may be
204.14transferred is limited to the lesser of:
204.15 (1) $168,000; or
204.16 (2) the total amount due on binding obligations and outstanding on that date, less the
204.17amount of increment collected by Tax Increment Financing District No. 1 after December
204.1831, 2012, and administrative expenses of Tax Increment Financing District No. 1 incurred
204.19after December 31, 2012.
204.20EFFECTIVE DATE.This section is effective upon approval by the governing
204.21bodies of the city of Ely, St. Louis County, and Independent School District No. 696 with
204.22the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021,
204.23subdivision 3.
204.24 Sec. 17. DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY; TAX
204.25INCREMENT FINANCING DISTRICT.
204.26 Subdivision 1. Authorization. Notwithstanding the provisions of any other law,
204.27the Dakota County Community Development Agency may establish a redevelopment tax
204.28increment financing district comprised of the properties that (1) were included in the CDA
204.2910 Robert Street and Smith Avenue district in the city of West St. Paul, and (2) were not
204.30decertified before July 1, 2012. The district created under this section terminates no later
204.31than December 31, 2023.
204.32 Subd. 2. Special rules. The requirements for qualifying a redevelopment district
204.33under Minnesota Statutes, section 469.174, subdivision 10, do not apply to parcels located
205.1within the district. Minnesota Statutes, section 469.176, subdivision 4j, do not apply to the
205.2district. The original tax capacity of the district is $93,239.
205.3 Subd. 3. Authorized expenditures. Tax increment from the district may be
205.4expended to pay for any eligible activities authorized by Minnesota Statutes, chapter 469,
205.5within the redevelopment area that includes the district provided that the boundaries of the
205.6redevelopment area may not be expanded to add new area after April 1, 2013. All such
205.7expenditures are deemed to be activities within the district under Minnesota Statutes,
205.8section 469.1763, subdivisions 2 and 4.
205.9 Subd. 4. Adjusted net tax capacity. The captured tax capacity of the district must
205.10be included in the adjusted net tax capacity of the city, county, and school district for the
205.11purposes of determining local government aid, education aid, and county program aid.
205.12The county auditor shall report to the commissioner of revenue the amount of the captured
205.13tax capacity for the district at the time the assessment abstracts are filed.
205.14EFFECTIVE DATE.This section is effective upon compliance by the governing
205.15body of the Dakota County Community Development Agency with the requirements of
205.16Minnesota Statutes, section 645.021, subdivision 3.
205.17 Sec. 18. CITY OF APPLE VALLEY; TAX INCREMENT FINANCING
205.18DISTRICT.
205.19 Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
205.20have the meanings given to them.
205.21(b) "City" means the city of Apple Valley.
205.22(c) "Project area" means the following parcels: parcel numbers 01-03500-25-010,
205.2301-03500-03-011, 01-03500-02-010, 01-03500-52-011, 01-03500-78-011,
205.2401-03500-77-014, 01-03500-75-010, 01-03400-05-050,
205.25(d) "Soil deficiency district" means a type of tax increment financing district
205.26consisting of a portion of the project area in which the city finds by resolution that the
205.27following conditions exist:
205.28(1) unusual terrain or soil deficiencies that occurred over 70 percent of the acreage in
205.29the district require substantial filling, grading, or other physical preparation for use; and
205.30(2) the estimated cost of the physical preparation under clause (1), but excluding
205.31costs directly related to roads as defined in Minnesota Statutes, section 160.01, and local
205.32improvements as described in Minnesota Statutes, sections 429.021, subdivision 1, other
206.1than clauses (8) to (10), and 430.01, exceeds the fair market value of the land before
206.2completion of the preparation.
206.3 Subd. 2. Special rules. (a) If the city elects, upon the adoption of the tax increment
206.4financing plan for a district, the rules under this section apply to a redevelopment
206.5district, renewal and renovation district, soil condition district, or soil deficiency district
206.6established by the city or a development authority of the city in the project area. The city,
206.7or a development authority acting on its behalf, may establish one or more soils deficiency
206.8districts within the project area.
206.9(b) Prior to or upon the adoption of the first tax increment plan subject to the special
206.10rules under this subdivision, the city must find by resolution that parcels consisting
206.11of at least 70 percent of the acreage of the project area, excluding street and railroad
206.12rights-of-way, are characterized by one or more of the following conditions:
206.13(1) peat or other soils with geotechnical deficiencies that impair development of
206.14commercial buildings or infrastructure;
206.15(2) soils or terrain that requires substantial filling in order to permit the development
206.16of commercial buildings or infrastructure;
206.17(3) landfills, dumps, or similar deposits of municipal or private waste;
206.18(4) quarries or similar resource extraction sites;
206.19(5) floodway; and
206.20(6) substandard buildings, within the meaning of Minnesota Statutes, section
206.21469.174, subdivision 10.
206.22(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by
206.23the relevant condition if at least 60 percent of the area of the parcel contains the relevant
206.24condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by
206.25substandard buildings if substandard buildings occupy at least 30 percent of the area
206.26of the parcel.
206.27(d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is
206.28extended to ten years for any district, and the period under Minnesota Statutes, section
206.29469.1763, subdivision 4, is extended to 11 years.
206.30(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section
206.31469.1763, subdivision 2, paragraph (a), not more than 80 percent of the total revenue
206.32derived from tax increments paid by properties in any district, measured over the life of
206.33the district, may be expended on activities outside the district but within the project area.
206.34(f) For a soil deficiency district:
206.35(1) increments may be collected through 20 years after the receipt by the authority of
206.36the first increment from the district; and
207.1(2) except as otherwise provided in this subdivision, increments may be used only to:
207.2(i) acquire parcels on which the improvements described in item (ii) will occur;
207.3(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the
207.4additional cost of installing public improvements directly caused by the deficiencies; and
207.5(iii) pay for the administrative expenses of the authority allocable to the district.
207.6(g) The authority to approve tax increment financing plans to establish tax increment
207.7financing districts under this section expires December 31, 2022.
207.8EFFECTIVE DATE.This section is effective upon compliance with Minnesota
207.9Statutes, section 645.021, subdivision 3.
207.10 Sec. 19. CITY OF APPLE VALLEY; USE OF TAX INCREMENT FINANCING.
207.11 Subdivision 1. Developments consisting of building and ancillary facilities.
207.12 Notwithstanding Minnesota Statutes, section 469.176, subdivisions 4c and 4m, the city of
207.13Apple Valley may use tax increment financing to provide improvements, loans, subsidies,
207.14grants, interest rate subsidies, or assistance in any form to developments consisting of
207.15buildings and ancillary facilities, if all of the following conditions are met:
207.16 (1) the city of Apple Valley finds that the project will create or retain jobs in
207.17Minnesota, including construction jobs;
207.18 (2) the city of Apple Valley finds that construction of the project will not commence
207.19before July 1, 2014, without the use of tax increment financing;
207.20 (3) the request for certification of the district is made no later than June 30, 2014;
207.21 (4) construction of the project begins no later than July 1, 2014; and
207.22 (5) for development of housing, construction of the project begins no later than
207.23December 31, 2013.
207.24 Subd. 2. Extension of authority to spend tax increments. Notwithstanding the
207.25time limits in Minnesota Statutes, section 469.176, subdivision 4m, the city of Apple
207.26Valley has the authority to spend tax increments under Minnesota Statutes, section
207.27469.176, subdivision 4m, until December 31, 2014.
207.28EFFECTIVE DATE.This section is effective upon approval by the governing
207.29body of the city of Apple Valley and timely compliance with Minnesota Statutes, section
207.30645.021, subdivision 3.
207.31 Sec. 20. CITY OF MINNEAPOLIS; STREETCAR FINANCING.
208.1 Subdivision 1. Definitions. (a) For purposes of this section, the following terms
208.2have the meanings given them.
208.3 (b) "City" means the city of Minneapolis.
208.4 (c) "County" means Hennepin County.
208.5 (d) "District" means the areas certified by the city under subdivision 2 for collection
208.6of value capture taxes.
208.7 (e) "Project area" means the area including one city block on either side of a streetcar
208.8line designated by the city to serve the downtown and adjacent neighborhoods of the city.
208.9 Subd. 2. Authority to establish district. (a) The governing body of the city may, by
208.10resolution, establish a value capture district consisting of some or all of the taxable parcels
208.11located within one or more of the following areas of the city, as described in the resolution:
208.12 (1) the area bounded by Nicollet Avenue on the west, 16th Street East on the south,
208.13First Avenue South on the east, and 14th Street East on the north;
208.14 (2) the area bounded by Spruce Place on the west, 14th Street West on the south,
208.15LaSalle Avenue on the east, and Grant Street West on the north;
208.16 (3) the area bounded by Nicollet Avenue or Mall on the west, Fifth Street South on
208.17the south, Marquette Avenue on the east, and Fourth Street South on the north;
208.18 (4) the area bounded by First Avenue North on the west, Washington Avenue on the
208.19south, Hennepin Avenue on the east, and Second Street North on the north; and
208.20(5) the area bounded by Fifth Street North East on the west, Central Avenue North
208.21East on the southeast, Sixth Street North East on the east, Hennepin Avenue East on the
208.22south, and First Avenue North East on the north.
208.23 (b) The city may establish the district and the project area only after holding a public
208.24hearing on its proposed creation after publishing notice of the hearing and the proposal at
208.25least once not less than ten days nor more than 30 days before the date of the hearing.
208.26 Subd. 3. Calculation of value capture district; administrative provisions. (a) If
208.27the city establishes a value capture district under subdivision 2, the city shall request the
208.28county auditor to certify the district for calculation of the district's tax revenues.
208.29 (b) For purposes of calculating the tax revenues of the district, the county auditor
208.30shall treat the district as if it were a request for certification of a tax increment financing
208.31district under the provisions of Minnesota Statutes, section 469.177, subdivision 1,
208.32and shall calculate the tax revenues of the district for each year of its duration under
208.33subdivision 5 as equaling the amount of tax increment that would be computed by
208.34applying the provisions of Minnesota Statutes, section 469.177, subdivisions 1, 2, and
208.353, to determine captured tax capacity and multiplying by the current tax rate, excluding
209.1the state general tax rate. The city shall provide the county auditor with the necessary
209.2information to certify the district, including the option for calculating revenues derived
209.3from the areawide tax rate under Minnesota Statutes, chapter 473F.
209.4 (c) The county auditor shall pay to the city at the same times provided for settlement
209.5of taxes and payment of tax increments the tax revenues of the district. The city must use
209.6the tax revenues as provided under subdivision 4.
209.7 Subd. 4. Permitted uses of district tax revenues. (a) In addition to paying for
209.8reasonable administrative costs of the district, the city may spend tax revenues of the
209.9district for property acquisition, improvements, and equipment to be used for operations
209.10within the project area, along with related costs, for:
209.11 (1) planning, design, and engineering services related to the construction of the
209.12streetcar line;
209.13 (2) acquiring property for, constructing, and installing a streetcar line;
209.14 (3) acquiring and maintaining equipment and rolling stock and related facilities, such
209.15as maintenance facilities, which need not be located in the project area;
209.16 (4) acquiring, constructing, or improving transit stations; and
209.17 (5) acquiring or improving public space, including the construction and installation
209.18of improvements to streets and sidewalks, decorative lighting and surfaces, and plantings
209.19related to the streetcar line.
209.20 (b) The city may issue bonds or other obligations under Minnesota Statutes, chapter
209.21475, without an election, to fund acquisition or improvement of property of a capital
209.22nature authorized by this section, including any costs of issuance. The city may also issue
209.23bonds or other obligations to refund those bonds or obligations. Payment of principal
209.24and interest on the bonds or other obligations issued under this paragraph is a permitted
209.25use of the district's tax revenues.
209.26 (c) Tax revenues of the district may not be used for the operation of the streetcar line.
209.27 Subd. 5. Duration of the district. A district established under this section is limited
209.28to the lesser of (1) 25 years of tax revenues, or (2) the time necessary to collect tax revenues
209.29equal to the amount of the capital costs permitted under subdivision 4 or the amount needed
209.30to pay or defease bonds or other obligations issued under subdivision 4, whichever is later.
209.31EFFECTIVE DATE.This section is effective the day following final enactment.
209.32 Sec. 21. CITY OF MAPLEWOOD; TAX INCREMENT FINANCING
209.33DISTRICT; SPECIAL RULES.
210.1 (a) If the city of Maplewood elects, upon the adoption of a tax increment financing
210.2plan for a district, the rules under this section apply to one or more redevelopment
210.3tax increment financing districts established by the city or the economic development
210.4authority of the city. The area within which the redevelopment tax increment districts may
210.5be created is parcel 362922240002 (the "parcel") or any replatted parcels constituting a
210.6part of the parcel and the adjacent rights-of-way. For purposes of this section, the parcel is
210.7the "3M Renovation and Retention Project Area" or "project area."
210.8 (b) The requirements for qualifying redevelopment tax increment districts under
210.9Minnesota Statutes, section 469.174, subdivision 10, do not apply to the parcel, which is
210.10deemed eligible for inclusion in a redevelopment tax increment district.
210.11 (c) The 90 percent rule under Minnesota Statutes, section 469.176, subdivision
210.124j, does not apply to the parcel.
210.13 (d) The expenditures outside district rule under Minnesota Statutes, section
210.14469.1763, subdivision 2, does not apply; the five-year rule under Minnesota Statutes,
210.15section 469.1763, subdivision 3, is extended to ten years; and expenditures must only
210.16be made within the project area.
210.17 (e) If, after one year from the date of certification of the original net tax capacity
210.18of the tax increment district, no demolition, rehabilitation, or renovation of property has
210.19been commenced on a parcel located within the tax increment district, no additional tax
210.20increment may be taken from that parcel, and the original net tax capacity of the parcel
210.21shall be excluded from the original net tax capacity of the tax increment district. If 3M
210.22Company subsequently commences demolition, rehabilitation, or renovation, the authority
210.23shall certify to the county auditor that the activity has commenced, and the county auditor
210.24shall certify the net tax capacity thereof as most recently certified by the commissioner
210.25of revenue and add it to the original net tax capacity of the tax increment district. The
210.26authority must submit to the county auditor evidence that the required activity has taken
210.27place for each parcel in the district.
210.28 (f) The authority to approve a tax increment financing plan and to establish a tax
210.29increment financing district under this section expires December 31, 2018.
210.30EFFECTIVE DATE.This section is effective upon approval by the governing
210.31body of the city of Maplewood and upon compliance with Minnesota Statutes, section
210.32645.021, subdivision 3.
210.33 Sec. 22. CITY OF BLOOMINGTON; TAX INCREMENT FINANCING.
211.1 Subdivision 1. Addition of property to Tax Increment Financing District
211.2No. 1-G. (a) Notwithstanding the provisions of Minnesota Statutes, section 469.175,
211.3subdivision 4, or any other law to the contrary, the governing bodies of the Port Authority
211.4of the city of Bloomington and the city of Bloomington may elect to eliminate the real
211.5property north of the existing building line on Lot 1, Block 1, Mall of America 7th
211.6Addition, exclusive of Lots 2 and 3 from Tax Increment Financing District No. 1-C
211.7within Industrial Development District No. 1 Airport South in the city of Bloomington,
211.8Minnesota, and expand the boundaries of Tax Increment Financing District No. 1-G
211.9to include that property.
211.10 (b) If the city elects to transfer parcels under this authority, the county auditor shall
211.11transfer the original tax capacity of the affected parcels from Tax Increment Financing
211.12District No. 1-C to Tax Increment Financing District No. 1-G.
211.13 Subd. 2. Authority to extend duration limit; computation of increment. (a)
211.14Notwithstanding Minnesota Statutes, section 469.176, or Laws 1996, chapter 464, article
211.151, section 8, or any other law to the contrary, the city of Bloomington and its port authority
211.16may extend the duration limits of Tax Increment Financing Districts No. 1-C and No.
211.171-G through December 31, 2034.
211.18 (b) Effective for property taxes payable in 2017 through 2034, the captured tax
211.19capacity of Tax Increment Financing District No. 1-C must be included in computing the
211.20tax rates of each local taxing district and the tax increment equals only the amount of tax
211.21computed under Minnesota Statutes, section 473F.08, subdivision 3c, paragraph (c).
211.22 (c) Effective for property taxes payable in 2019 through 2034, the captured tax
211.23capacity of Tax Increment Financing District No. 1-G must be included in computing the
211.24tax rates of each local taxing district and the tax increment for the district equals only
211.25the amount of tax computed under Minnesota Statutes, section 473F.08, subdivision
211.263c, paragraph (c).
211.27 Subd. 3. Treatment of increment. Increments received under the provisions
211.28of subdivision 2, paragraph (b) or (c), and Minnesota Statutes, section 473F.08,
211.29subdivision 3c, are deemed to be tax increments of Tax Increment Financing District No.
211.301-G, notwithstanding any law to the contrary, and without regard to whether they are
211.31attributable to captured tax capacity of Tax Increment Financing District No. 1-C.
211.32 Subd. 4. Condition. The authority under this section expires and Tax Increment
211.33Financing Districts No. 1-C and No. 1-G must be decertified for taxes payable in 2024
211.34and thereafter, if the total estimated market value of improvements for parcels located in
212.1Tax Increment Financing District No. 1-G, as modified, do not exceed $100,000,000
212.2by taxes payable in 2023.
212.3EFFECTIVE DATE.This section is effective upon compliance of the governing
212.4body of the city of Bloomington with the requirements of Minnesota Statutes, section
212.5645.021, subdivision 3, but only if the city enters into a binding written agreement with
212.6the Metropolitan Council to repair and restore, or to replace, the old Cedar Avenue bridge
212.7for use by bicycle commuters and recreational users. This section is effective without
212.8approval of the county and school district under Minnesota Statutes, section 469.1782,
212.9subdivision 2. The legislature finds that the county and school district are not "affected
212.10local government units" within the meaning of Minnesota Statutes, section 469.1782,
212.11because the provision allowing extended collection of increment by the tax increment
212.12financing districts does not affect their tax bases and tax rates dissimilarly to other counties
212.13and school districts in the metropolitan area.
212.14 Sec. 23. CITY OF BLOOMINGTON; OLD CEDAR AVENUE BRIDGE.
212.15 (a) Notwithstanding any law to the contrary, the city of Bloomington shall transfer
212.16from the tax increment financing accounts for its Tax Increment Financing District No.
212.171-C and Tax Increment Financing District No. 1-G an amount equal to the tax increment
212.18for each district that is computed under the provisions of Minnesota Statutes, section
212.19473F.08, subdivision 3c, for taxes payable in 2014 to an account or fund established for
212.20the repair, restoration, or replacement of the Old Cedar Avenue bridge for use by bicycle
212.21commuters and recreational users. The city is authorized to and must use the transferred
212.22funds to complete the repair, renovation, or replacement of the bridge.
212.23 (b) No signs, plaques, or markers acknowledging or crediting donations for,
212.24sponsorships of, or naming rights may be posted on or in the vicinity of the Old Cedar
212.25Avenue bridge.
212.26EFFECTIVE DATE.This section is effective upon compliance by the city of
212.27Bloomington with the requirements of Minnesota Statutes, section 645.021, subdivision 3.
212.30 Section 1. Minnesota Statutes 2012, section 13.792, is amended to read:
212.3113.792 PRIVATE DONOR GIFT DATA.
212.32The following data maintained by the Minnesota Zoological Garden, the University
212.33of Minnesota, the Minnesota State Colleges and Universities, the Regional Parks
213.1Foundation of the Twin Cities, State Services for the Blind, the Destination Medical
213.2Center Corporation established pursuant to section 469.41, and any related entity subject
213.3to chapter 13 are classified as private or nonpublic:
213.4(1) research information about prospects and donors gathered to aid in determining
213.5appropriateness of solicitation and level of gift request;
213.6(2) specific data in prospect lists that would identify prospects to be solicited, dollar
213.7amounts to be requested, and name of solicitor;
213.8(3) portions of solicitation letters and proposals that identify the prospect being
213.9solicited and the dollar amount being requested;
213.10(4) letters, pledge cards, and other responses received from donors regarding
213.11prospective gifts in response to solicitations;
213.12(5) portions of thank-you letters and other gift acknowledgment communications
213.13that would identify the name of the donor and the specific amount of the gift, pledge,
213.14or pledge payment;
213.15(6) donor financial or estate planning information, or portions of memoranda, letters,
213.16or other documents commenting on any donor's financial circumstances; and
213.17(7) data detailing dates of gifts, payment schedule of gifts, form of gifts, and specific
213.18gift amounts made by donors.
213.19Names of donors and gift ranges are public data.
213.20 Sec. 2. Minnesota Statutes 2012, section 297A.71, is amended by adding a subdivision
213.21to read:
213.22 Subd. 48. Construction materials, public infrastructure related to the
213.23destination medical center. Materials and supplies used in, and equipment incorporated
213.24into, the construction and improvement of publicly owned buildings and infrastructure
213.25included in the development plan adopted under section 469.43, and financed with public
213.26funds, are exempt.
213.27EFFECTIVE DATE.This section is effective for sales and purchases made after
213.28June 30, 2015, and before July 1, 2049.
213.29 Sec. 3. [469.40] DEFINITIONS.
213.30 Subdivision 1. Application. For the purposes of sections 469.40 to 469.47, the
213.31terms defined in this section have the meanings given them.
213.32 Subd. 2. City. "City" means the city of Rochester.
213.33 Subd. 3. County. "County" means Olmsted County.
214.1 Subd. 4. Destination Medical Center Corporation, corporation, DMCC.
214.2"Destination Medical Center Corporation," "corporation," or "DMCC" means the
214.3nonprofit corporation created by the city as provided in section 469.41, and organized
214.4under chapter 317A.
214.5 Subd. 5. Destination Medical Center Development District. "Destination medical
214.6center development district" or "development district" means a geographic area in the city
214.7identified in the DMCC development plan in which public infrastructure projects are
214.8implemented.
214.9 Subd. 6. Development plan. "Development plan" means the plan adopted by
214.10the DMCC under section 469.43.
214.11 Subd. 7. Financial interest. "Financial interest" means a person's direct or indirect
214.12ownership or investment interest or compensation arrangement, whether through business,
214.13investment, or family, including spouse, children and stepchildren, and other relatives
214.14living with the person, as follows:
214.15(1) ownership or investment interest in the development, acquisition, or construction
214.16of a project in the development district;
214.17(2) compensation arrangement with respect to the development, acquisition, or
214.18construction of a project in the development district; or
214.19(3) potential ownership or investment interest in, or compensation arrangement with
214.20respect to, the development, acquisition, or construction of a project in the development
214.21district.
214.22 Subd. 8. Medical business entity. "Medical business entity" means a medical
214.23business entity with its principal place of business in the city that, as of the effective date
214.24of this section, together with all business entities of which it is the sole member or sole
214.25shareholder, collectively employs more than 30,000 persons in the state.
214.26 Subd. 9. Nonprofit economic development agency, agency. "Nonprofit economic
214.27development agency" or "agency" means the nonprofit agency required under section
214.28469.43 to provide experience and expertise to the DMCC for purposes of developing and
214.29marketing the destination medical center.
214.30 Subd. 10. Project. "Project" means a project to implement the development plan,
214.31whether public or private.
214.32 Subd. 11. Public infrastructure project. (a) "Public infrastructure project" means
214.33a project financed in part or in whole with public money in order to support the medical
214.34business entity's development plans, as identified in the DMCC development plan. A
214.35public infrastructure project may:
214.36(1) acquire real property and other assets associated with the real property;
215.1(2) demolish, repair, or rehabilitate buildings;
215.2(3) remediate land and buildings as required to prepare the property for acquisition
215.3or development;
215.4(4) install, construct, or reconstruct elements of public infrastructure required to
215.5support the overall development of the destination medical center development district
215.6including, but not limited to, streets, roadways, utilities systems and related facilities,
215.7utility relocations and replacements, network and communication systems, streetscape
215.8improvements, drainage systems, sewer and water systems, subgrade structures and
215.9associated improvements, landscaping, façade construction and restoration, wayfinding
215.10and signage, and other components of community infrastructure;
215.11(5) acquire, construct or reconstruct, and equip parking facilities and other facilities
215.12to encourage intermodal transportation and public transit;
215.13(6) install, construct or reconstruct, furnish, and equip parks, cultural, and
215.14recreational facilities, facilities to promote tourism and hospitality, conferencing and
215.15conventions, broadcast and related multimedia infrastructure;
215.16(7) make related site improvements including, without limitation, excavation,
215.17earth retention, soil stabilization and correction, and site improvements to support the
215.18destination medical center development district;
215.19(8) prepare land for private development and to sell or lease land;
215.20(9) costs of providing relocation benefits to occupants of acquired properties; and
215.21(10) construct and equip all or a portion of one or more suitable structures on land
215.22owned by the city for sale or lease to private development; provided, however, that the
215.23portion of any structure directly financed by the city as a public infrastructure project must
215.24not be sold or leased to a medical business entity.
215.25(b) A public infrastructure project is not a business subsidy under section 116J.993.
215.26 Subd. 12. Year. "Year" means a calendar year, except where otherwise provided.
215.27 Sec. 4. [469.41] DESTINATION MEDICAL CENTER CORPORATION
215.28ESTABLISHED.
215.29 Subdivision 1. DMCC created. The city must establish a destination medical
215.30center corporation as a nonprofit corporation under chapter 317A to provide the city with
215.31expertise in preparing and implementing the development plan to establish the city as a
215.32destination medical center. Except as provided in sections 469.40 to 469.47, the nonprofit
215.33corporation is not subject to laws governing the city.
215.34 Subd. 2. Membership; quorum. (a) The corporation's governing board consists
215.35of eight members appointed, as follows:
216.1(1) the mayor of the city, or the mayor's designee, subject to approval by the city
216.2council;
216.3(2) the city council president, or the city council president's designee, subject
216.4to approval by the city council;
216.5 (3) the chair or member of the county board, appointed by the county board;
216.6 (4) a representative of the medical business entity appointed by and serving at the
216.7pleasure of the medical business entity; and
216.8 (5) four members appointed by the governor, subject to confirmation by the senate.
216.9(b) Appointing authorities must make their respective appointments as soon as
216.10practicable after the effective date of this section, but no later than 60 days after enactment
216.11of this section.
216.12(c) A quorum of the board is six members.
216.13 Subd. 3. Terms. (a) A member first appointed after the effective date of this section
216.14under subdivision 2, paragraph (a), clauses (1), (2), and (3), serves for a term coterminous
216.15with the term of the elected office, but may be reappointed.
216.16 (b) Two members first appointed after the effective date of this section under
216.17subdivision 2, paragraph (a), clause (5), serve from the date of appointment until the first
216.18Tuesday after the first Monday in January 2017, and two members first appointed after the
216.19effective date of this section under subdivision 2, paragraph (a), clause (5), serve from
216.20the date of appointment until the first Tuesday after the first Monday in January 2020.
216.21Thereafter, members appointed by the governor serve six-year terms.
216.22 Subd. 4. Vacancies. A vacancy occurs as provided in section 351.02 or upon
216.23a member's removal under subdivision 7. A vacancy on the board must be filled by
216.24the appointing authority for the balance of the term in the same manner as a regular
216.25appointment.
216.26 Subd. 5. Chair. The board must elect a chair from among the governor's appointees.
216.27The governor must convene the first meeting within 30 days of completion of all
216.28appointments to the board.
216.29 Subd. 6. Pay. Members must be compensated as provided in section 15.0575,
216.30subdivision 3. For the purposes of this subdivision, the member representing the medical
216.31business entity shall be treated as if an employee of a political subdivision. All money
216.32paid for compensation or reimbursement must be paid out of the corporation's budget.
216.33 Subd. 7. Removal for cause. A member may be removed by the board for
216.34inefficiency, neglect of duty, or misconduct in office. A member may be removed only
216.35after a hearing of the board. A copy of the charges must be given to the board member at
216.36least ten days before the hearing. The board member must be given an opportunity to be
217.1heard in person or by counsel at the hearing. When written charges have been submitted
217.2against a board member, the board may temporarily suspend the member. If the board finds
217.3that those charges have not been substantiated, the board member must be immediately
217.4reinstated. If a board member is removed, a record of the proceedings, together with the
217.5charges and findings, must be filed with the office of the appointing authority.
217.6 Subd. 8. Open meeting law; data practices. Meetings of the corporation and any
217.7committee or subcommittee of the corporation are subject to the open meeting law in
217.8chapter 13D. The corporation is a government entity for purposes of chapter 13.
217.9 Subd. 9. Conflicts of interest. Except for the member appointed by the medical
217.10business entity, a member must not be a director, officer, or employee of the medical
217.11business entity. A member must not participate in or vote on a decision of the corporation
217.12relating to any project authorized by or under consideration by the corporation in which
217.13the member has either a direct or indirect financial interest. No member may serve as a
217.14lobbyist, as defined under section 10A.01, subdivision 21.
217.15 Subd. 10. Public official. A member of the corporation is a public official, as
217.16defined in section 10A.01, subdivision 35.
217.17 Subd. 11. Powers. The corporation may exercise any other powers that are
217.18granted by its articles of incorporation and bylaws to the extent that those powers are not
217.19inconsistent with the provisions of sections 469.40 to 469.47.
217.20 Subd. 12. Contract for services. (a) The corporation may contract for the services
217.21of the nonprofit economic development agency, financial advisors, other consultants,
217.22agents, public accountants, legal counsel, and other persons needed to perform its duties
217.23and exercise its powers. The corporation may contract with the city or county to provide
217.24administrative, clerical, and accounting services to the corporation.
217.25(b) The corporation must contract with the nonprofit agency for the services
217.26enumerated in section 469.43, subdivision 6, paragraph (a). The requirement to contract
217.27with the nonprofit agency does not limit the corporation's authority to contract with other
217.28providers for the services.
217.29 Subd. 13. DMCC approval of projects. A project must be approved by the
217.30corporation before it is proposed to the city. The corporation must review the project
217.31proposed for consistency with the adopted development plan.
217.32 Subd. 14. Dissolution. The city must provide for the terms for dissolution of the
217.33corporation in the articles of incorporation.
217.34 Sec. 5. [469.42] OFFICERS; DUTIES; ORGANIZATIONAL MATTERS.
218.1 Subdivision 1. Bylaws, rules, seal. The corporation may adopt bylaws and rules of
218.2procedure and may adopt an official seal.
218.3 Subd. 2. Officers. The corporation must annually elect a treasurer. The chair must
218.4appoint a secretary and assistant treasurer. The secretary and assistant treasurer need
218.5not, but may, be members of the board.
218.6 Subd. 3. Duties and powers. The officers have the usual duties and powers of their
218.7offices. They may be given other duties and powers by the corporation. The corporation
218.8must establish and maintain a Web site.
218.9 Subd. 4. Treasurer's duties. The treasurer:
218.10(1) must receive and is responsible for corporation money;
218.11(2) is responsible for the acts of the assistant treasurer;
218.12(3) must disburse corporation money by check or electronic procedures;
218.13(4) must keep an account of the source of all receipts, and of the nature, purpose, and
218.14authority of all disbursements; and
218.15(5) must file the corporation's detailed financial statement with its secretary at least
218.16once a year at times set by the authority.
218.17 Subd. 5. Secretary. The secretary must perform duties as required by the board.
218.18 Subd. 6. Assistant treasurer. The assistant treasurer has the powers and duties of
218.19the treasurer if the treasurer is absent or disabled.
218.20 Sec. 6. [469.43] DEVELOPMENT PLAN.
218.21 Subdivision 1. Development plan; adoption by DMCC; notice; findings. (a) The
218.22corporation, working with the city and the nonprofit economic development agency, must
218.23prepare and adopt a development plan. The corporation must hold a public hearing before
218.24adopting a development plan. At least 60 days before the hearing, the corporation must
218.25make copies of the proposed plan available to the public at the corporation and city offices
218.26during normal business hours, on the corporation's and city's Web site, and as otherwise
218.27determined appropriate by the corporation. At least ten days before the hearing, the
218.28corporation must publish notice of the hearing in the official newspaper of the city. The
218.29development plan may not be adopted, unless the corporation finds, by resolution, that:
218.30(1) the plan provides an outline for the development of the city as a destination
218.31medical center, and the plan is sufficiently complete, including the identification of planned
218.32and anticipated projects, to indicate its relationship to definite state and local objectives;
218.33(2) the proposed development affords maximum opportunity, consistent with the
218.34needs of the city, county, and state, for the development of the city by private enterprise
218.35as a destination medical center;
219.1(3) the proposed development conforms to the general plan for the development of
219.2the city and is consistent with the city comprehensive plan;
219.3(4) the plan includes:
219.4(i) strategic planning consistent with a destination medical center in the core areas of
219.5commercial research and technology, learning environment, hospitality and convention,
219.6sports and recreation, livable communities, including mixed-use urban development
219.7and neighborhood residential development, retail/dining/entertainment, and health and
219.8wellness;
219.9(ii) estimates of short- and long-range fiscal and economic impacts;
219.10(iii) a framework to identify and prioritize short- and long-term public investment
219.11and public infrastructure project development and to facilitate private investment
219.12and development, including the criteria and process for evaluating and underwriting
219.13development proposals;
219.14(iv) land use planning;
219.15(v) transportation and transit planning;
219.16(vi) operational planning required to support the medical center development
219.17district; and
219.18(vii) ongoing market research plans; and
219.19(5) the city has approved the plan.
219.20(b) The identification of planned and anticipated projects under paragraph (a), clause
219.21(1), must give priority to projects that will pay wages at least equal to the basic cost of living
219.22wage as calculated by the commissioner of employment and economic development for
219.23the county in which the project is located. The calculation of the basic cost of living wage
219.24must be done as provided for under section 116J.013, if enacted by the 2013 legislature.
219.25 Subd. 2. Development plan approval by city. Section 15.99 does not apply to
219.26review and approval of the development plan. The city shall act on the development plan
219.27within 60 days following its submission by the corporation. The city may incorporate the
219.28development plan into the city's comprehensive plan.
219.29 Subd. 3. Subject to city requirements. All projects are subject to the planning,
219.30zoning, sanitary, and building laws; ordinances; regulations; and land use plans that apply
219.31to the city.
219.32 Subd. 4. Modification of development plan. The corporation may modify the
219.33development plan at any time. The corporation must update the development plan not less
219.34than every five years. A modification or update under this subdivision must be adopted by
219.35the corporation upon the notice and after the public hearing and findings required for the
219.36original adoption of the development plan, including approval by the city.
220.1 Subd. 5. Medical center development districts; creation; notice; findings. As
220.2part of the development plan, the corporation may create and define the boundaries of
220.3medical center development districts and subdistricts at any place or places within the
220.4city. Projects may be undertaken within defined medical center development districts
220.5consistent with the development plan.
220.6 Subd. 6. Nonprofit economic development agency. (a) The medical business
220.7entity must establish a nonprofit economic development agency organized under chapter
220.8317A to provide experience and expertise in developing and marketing the destination
220.9medical center. The corporation must engage the agency to assist the corporation in
220.10preparing the development plan. The governing board of the agency must be comprised of
220.11members of the medical community, city, and county. The agency must collaborate with
220.12city, county, and other community representatives. The nonprofit agency must provide
220.13services to assist the corporation and city in implementing the goals, objectives, and
220.14strategies in the development plan including, but not limited to:
220.15(1) facilitating private investment through development of a comprehensive
220.16marketing program to global interests;
220.17(2) developing and updating the criteria for evaluating and underwriting
220.18development proposals;
220.19(3) drafting and implementing the development plan, including soliciting and
220.20evaluating proposals for development and evaluating and making recommendations to the
220.21authority and the city regarding those proposals;
220.22(4) providing transactional services in connection with approved projects;
220.23(5) developing patient, visitor, and community outreach programs for a destination
220.24medical center development district;
220.25(6) working with the corporation to acquire and facilitate the sale, lease, or other
220.26transactions involving land and real property;
220.27(7) seeking financial support for the corporation, the city, and a project;
220.28(8) partnering with other development agencies and organizations, the city, and the
220.29county in joint efforts to promote economic development and establish a destination
220.30medical center;
220.31(9) supporting and administering the planning and development activities required to
220.32implement the development plan;
220.33(10) preparing and supporting the marketing and promotion of the medical center
220.34development district;
220.35(11) preparing and implementing a program for community and public relations in
220.36support of the medical center development district;
221.1(12) assisting the corporation or city and others in applications for federal grants, tax
221.2credits, and other sources of funding to aid both private and public development; and
221.3(13) making other general advisory recommendations to the corporation and the
221.4city, as requested.
221.5(b) The nonprofit economic development agency must disclose to the city and
221.6to the corporation the existence, nature, and all material facts regarding any financial
221.7interest its employees or contractors have in any public infrastructure project submitted
221.8to the city for approval and any financial interest its employees or contractors have in
221.9the destination medical center development. "Contractors" includes affiliates of the
221.10contractors or members or shareholders with an ownership interest of more than 20
221.11percent in the contractor.
221.12 Subd. 7. Audit of nonprofit economic development agency contract. Any contract
221.13for services between the corporation and the nonprofit economic development agency
221.14paid, in whole or in part, with public money provides the corporation, the city, and the state
221.15auditor the right to audit the books and records of the agency that are necessary to certify:
221.16(1) the nature and extent of the services furnished pursuant to the contract; and
221.17(2) that the payment for services and related disbursements complies with all state
221.18laws, regulations, and the terms of the contract.
221.19Any contract for services between the corporation and the agency paid, in whole
221.20or in part, with public money must require the corporation to maintain for the life of the
221.21corporation accurate and complete books and records directly relating to the contract.
221.22 Subd. 8. Report. By February 15 of each year, the corporation and city must jointly
221.23submit a report to the chairs and ranking minority members of the legislative committees
221.24and divisions with jurisdiction over local and state government operations, economic
221.25development, and taxes, and to the commissioners of revenue and employment and
221.26economic development, and the county. The corporation and city must also submit the
221.27report as provided in section 3.195. The report must include:
221.28(1) the development plan and any proposed changes to the development plan;
221.29(2) progress of projects identified in the development plan;
221.30(3) actual costs and financing sources, including the amount paid with state aid under
221.31section 469.47, and required local contributions of projects completed in the previous two
221.32years by the corporation, city, county, and the medical business entity;
221.33(4) estimated costs and financing sources for projects to be started in the next two
221.34years by the corporation, city, county, and the medical business entity; and
221.35(5) debt service schedules for all outstanding obligations of the city for debt issued
221.36for projects identified in the plan.
222.1 Sec. 7. [469.44] CITY POWERS, DUTIES; AUTHORITY TO ISSUE BONDS.
222.2 Subdivision 1. Port authority powers. The city may exercise the powers of a
222.3port authority under sections 469.048 to 469.068 for the purposes of implementing the
222.4destination medical center development plan.
222.5 Subd. 2. Support to the corporation. The city must provide financial and
222.6administrative support, and office and other space, to the corporation. The city may
222.7appropriate city funds to the corporation for its work.
222.8 Subd. 3. City to issue debt. The city may issue general obligation bonds, revenue
222.9bonds, or other obligations, as it determines appropriate, to finance public infrastructure
222.10projects, as provided by chapter 475. Notwithstanding section 475.53, obligations issued
222.11under this section are not subject to the limits on net debt, regardless of their source of
222.12security or payment. Notwithstanding section 475.58 or any other law or charter provision
222.13to the contrary, issuance of obligations under the provisions of this section are not subject
222.14to approval of the electors. The city may pledge any of its revenues, including property
222.15taxes, the taxes authorized by sections 469.45 and 469.46, and the state aid under section
222.16469.47, as security for and to pay the obligations. The city must not issue obligations that
222.17are only payable from or secured by state aid under section 469.47.
222.18 Subd. 4. Local government tax base not reduced. Nothing in sections 469.40 to
222.19469.47 reduces the tax base or affects the taxes due and payable to the city, the county,
222.20or any school district within the boundaries of the city, including without limitation,
222.21the city's general local sales tax.
222.22 Subd. 5. Project implementation before plan adoption. The city may exercise the
222.23powers under subdivision 3 with respect to any public infrastructure project commenced
222.24within the area that will be in the destination medical center development district after the
222.25effective date of this section but before the development plan is adopted subject to approval
222.26by the corporation. Actions taken under this authority must be approved by the corporation
222.27to be credited against the local contribution required under section 469.47, subdivision 4.
222.28 Subd. 6. American made steel. The city must require that a public infrastructure
222.29project use American steel products to the extent practicable. In determining whether it
222.30is practicable, the city may consider the exceptions to the requirement in Public Law
222.31111-5, section 1605.
222.32 Subd. 7. City contracts; construction requirements. For all public infrastructure
222.33projects, the city must make every effort to hire and cause the construction manager and
222.34any subcontractors to employ women and members of minority communities. Goals for
222.35construction contracts must be established in the manner required under the city's minority
222.36and women-owned business enterprises utilization plan.
223.1 Subd. 8. Conduit bond issuance. (a) Upon the request of the corporation or the
223.2nonprofit agency, the city or its economic development authority shall issue revenue bonds
223.3or other similar obligations for a qualifying project. Revenue bonds or other obligations as
223.4used in this subdivision means bonds or other obligations issued under sections 469.152
223.5to 469.165 or under chapter 462C, the interest on which is tax exempt. The city or its
223.6development authority shall use its best efforts to issue the bonds or other obligations
223.7as promptly and efficiently as possible following the request and the provision of the
223.8information and completion of the actions by the corporation or the nonprofit agency that
223.9are necessary for the issuance. Upon request of the corporation or nonprofit agency,
223.10the city or its economic development authority shall adopt methods and procedures that
223.11preserve the confidentiality of private donors or other private participants in the qualifying
223.12project, including structures and methods that do not require disclosing information on
223.13the donors or participants to the city or its economic development authority, and shall
223.14segregate in separate accounts all funds related to a qualifying project from other city
223.15and authority funds.
223.16(b) For purposes of this section, a "qualifying project" means a project, as that
223.17term is defined in section 469.153, or a project that would qualify for financing under
223.18chapter 462C, that:
223.19(1) the corporation finds is consistent with and will further the goals of the
223.20development plan;
223.21(2) is located in a medical development district; and
223.22(3) has a commitment of private funding sources such as donations of money or
223.23in-kind contributions, other than revenues generated by the project, equal to at least ten
223.24percent of the total capital cost of the project.
223.25 Subd. 9. Public bidding exemption. (a) Notwithstanding section 469.068 or any
223.26other law to the contrary, the city need not require competitive bidding with respect to a
223.27parking facility or other public improvements constructed in conjunction with, and directly
223.28above or below, or adjacent and integrally related to, a private development financed
223.29or developed under the development plan.
223.30(b) For purposes of this section, "city" includes the development authority
223.31established by the city.
223.32 Sec. 8. [469.45] CITY TAX AUTHORITY.
223.33 Subdivision 1. Rochester, other local taxes authorized. (a) Notwithstanding
223.34section
223.35addition to any taxes the city may impose on these transactions under another statute or
224.1law, the city of Rochester may, by ordinance, impose at a rate or rates, determined by the
224.2city, any of the following taxes:
224.3(1) a tax on the gross receipts from the furnishing for consideration of lodging and
224.4related services as defined in section 297A.61, subdivision 3, paragraph (g), clause (2); the
224.5city may choose to impose a differential tax based on the number of rooms in the facility;
224.6(2) a tax on the gross receipts of food and beverages sold primarily for consumption
224.7on the premises by restaurants and places of refreshment that occur in the city of
224.8Rochester; the city may elect to impose the tax in a defined district of the city; and
224.9(3) a tax on the admission receipts to entertainment and recreational facilities, as
224.10defined by ordinance, in the city of Rochester.
224.11(b) The provisions of section 297A.99, subdivisions 4 to 13, govern the
224.12administration, collection, and enforcement of any tax imposed by the city under
224.13paragraph (a).
224.14(c) The proceeds of any taxes imposed under this subdivision, less refunds and
224.15costs of collection, must be used by the city only to meet its share of obligations for
224.16public infrastructure projects contained in the development plan and approved by the
224.17corporation, including any associated financing costs. Any tax imposed under paragraph
224.18(a) expires at the earlier of December 31, 2049, or when the city council determines
224.19that sufficient funds have been raised from the tax plus all other local funding sources
224.20authorized in this article to meet the city obligation for financing public infrastructure
224.21projects contained in the development plan and approved by the corporation, including
224.22any associated financing costs.
224.23 Subd. 2. General sales tax authority. The city may elect to extend the existing
224.24local sales and use tax under section 13 or to impose an additional rate of up to one quarter
224.25of one percent tax on sales and use under section 11. The proceeds of any extended or
224.26additional taxes imposed under this subdivision, less refunds and costs of collection, must
224.27be used by the city only to meet its share of obligations for public infrastructure projects
224.28contained in the development plan and approved by the corporation, including all financing
224.29costs. Revenues collected in any year to meet the obligations must be used for payment of
224.30obligations or expenses for public infrastructure projects approved by the corporation.
224.31 Subd. 3. Special abatement rules. (a) If the city or the county elects to use tax
224.32abatement under sections 469.1812 to 469.1815 to finance costs of public infrastructure
224.33projects, including all financing costs, the special rules under this subdivision apply.
224.34Taxes abated for public infrastructure projects must be used only for obligations or other
224.35infrastructure projects approved by the corporation.
225.1(b) The limitations under section 469.1813, subdivision 6, do not apply to the city
225.2or the county.
225.3(c) The limitations under section 469.1813, subdivision 8, do not apply and property
225.4taxes abated by the city or the county to finance costs of public infrastructure projects are
225.5not included for purposes of applying section 469.1813, subdivision 8, to the use of tax
225.6abatement for other purposes of the city or the county; however, the total amount of property
225.7taxes abated by the city and the county under this authority must not exceed $87,750,000.
225.8 Subd. 4. Special tax increment financing rules. If the city elects to establish
225.9one or more redevelopment tax increment financing districts within the area of the
225.10destination medical center development district to fund public infrastructure projects, the
225.11requirements, definitions, limitations, or restrictions in the following statutes do not apply:
225.12sections 469.174, subdivisions 10 and 25, clause (2); 469.176, subdivisions 4j, 4l, and 5;
225.13and 469.1763, subdivisions 2, 3, and 4. The provisions of this subdivision expire effective
225.14for tax increments expended after December 31, 2049. After that date, the provisions of
225.15section 469.1763, subdivision 4, apply to any remaining unspent or unobligated increments.
225.16 Sec. 9. [469.46] COUNTY TAX AUTHORITY.
225.17(a) Notwithstanding sections 297A.99, 297A.993, and 477A.016, or any other
225.18contrary provision of law, ordinance, or charter, and in addition to any taxes the county
225.19may impose under another law or statute, the Board of Commissioners of Olmsted County
225.20may, by resolution, impose a transit tax of up to one quarter of one percent on retail sales
225.21and uses taxable under chapter 297A. The provisions of section 297A.99, subdivisions
225.224 to 13, govern the imposition, administration, collection, and enforcement of the tax
225.23authorized under this paragraph.
225.24(b) The Board of Commissioners of Olmsted County may, by resolution, levy an
225.25annual wheelage tax of up to $10 on each motor vehicle kept in the county when not in
225.26operation which is subject to annual registration and taxation under chapter 168, for
225.27transportation projects within the county. The wheelage tax must not be imposed on the
225.28vehicles exempt from wheelage tax under section 163.051, subdivision 1. The board,
225.29by resolution, may provide for collection of the wheelage tax by county officials, or it
225.30may request that the tax be collected by the state registrar on behalf of the county. The
225.31provisions of section 163.051, subdivisions 2, 2a, 3, and 7, must govern the administration,
225.32collection, and enforcement of the tax authorized under this paragraph. The tax authorized
225.33under this section is in addition to any tax the county may be authorized to impose under
225.34section 163.051, but until January 1, 2018, the county tax imposed under this paragraph,
226.1in combination with any tax imposed under section 163.051, must equal the specified
226.2rate under section 163.051.
226.3(c) The proceeds of any taxes imposed under paragraph (a), less refunds and costs
226.4of collection, must be first used by the county to meet its local matching contributions
226.5under section 469.47, subdivision 6, for financing transit infrastructure related to the
226.6public infrastructure projects contained in the development plan and approved by the
226.7corporation, including any financing costs. Revenues collected in any calendar year in
226.8excess of the county obligation to pay for projects contained in the development plan may
226.9be retained by the county and used for funding other transportation projects, including
226.10roads and bridges, airports, and transportation improvements.
226.11(d) Any taxes imposed under paragraph (a) expire December 31, 2049, or at an
226.12earlier time if approved by resolution of the county board of commissioners. The taxes
226.13must not terminate before the county board of commissioners determines that revenues
226.14from these taxes and any other revenue source the county dedicates are sufficient to pay
226.15the county share of transit project costs and financing costs under the development plan.
226.16 Sec. 10. [469.47] STATE INFRASTRUCTURE AID.
226.17 Subdivision 1. Definitions. (a) For purposes of this section, the following terms
226.18have the meanings given them.
226.19(b) "Commissioner" means the commissioner of employment and economic
226.20development.
226.21(c) "Construction projects" means:
226.22(1) for expenditures by a medical business entity, construction of buildings in the
226.23city for which the building permit was issued after June 30, 2013; and
226.24(2) for any other expenditures, construction of privately owned buildings and other
226.25improvements that are undertaken pursuant to or as part of the development plan and are
226.26located within a medical center development district.
226.27(d) "Expenditures" means expenditures made by a medical business entity or by an
226.28individual or private entity on construction projects for the capital cost of the project
226.29including, but not limited to:
226.30(1) design and predesign, including architectural, engineering, and similar services;
226.31(2) legal, regulatory, and other compliance costs of the project;
226.32(3) land acquisition, demolition of existing improvements, and other site preparation
226.33costs;
226.34(4) construction costs, including all materials and supplies of the project; and
226.35(5) equipment and furnishings that are attached to or become part of the real property.
227.1Expenditures excludes supplies and other items with a useful life of less than a
227.2year that are not used or consumed in constructing improvements to real property or
227.3are otherwise chargeable to capital costs.
227.4(e) "Qualified expenditures" has the following meaning. In the first year in which aid
227.5is paid under this section, "qualified expenditures" means the total certified expenditures
227.6since June 30, 2013, through the end of the preceding year, minus $200,000,000. For
227.7subsequent years, "qualified expenditures" means the certified expenditures for the
227.8preceding year.
227.9(f) "Transit costs" means the portions of a public infrastructure project that are for
227.10public transit intended primarily to serve the district, such as transit stations, equipment,
227.11rights-of-way, and similar costs.
227.12 Subd. 2. Certification of expenditures. By April 1 of each year, the medical
227.13business entity must certify to the commissioner the amount of expenditures made by the
227.14medical business entity in the preceding year. For expenditures made by an individual
227.15or entity other than the medical business entity, the corporation shall compile the
227.16information on the expenditures and may certify the amount to the commissioner. The
227.17certification must be made in the form that the commissioner prescribes and include
227.18any documentation of and supporting information regarding the expenditures that the
227.19commissioner requires. By August 1 of each year, the commissioner must determine the
227.20amount of the expenditures for the preceding year.
227.21 Subd. 3. General state infrastructure aid. (a) General state infrastructure aid may
227.22not be paid out under this section until total expenditures exceed $200,000,000.
227.23(b) The amount of the general state infrastructure aid for a fiscal year equals the sum
227.24of qualified expenditures, multiplied by 2.75 percent. The maximum amount of state
227.25aid payable in any year is limited to no more than $30,000,000. If the aid entitlement
227.26for the year exceeds the maximum annual limit, the excess is an aid carryover to later
227.27years. The carryover aid must be paid in the first year in which the aid entitlement for the
227.28current year is less than the maximum annual limit, but only to the extent the carryover,
227.29when added to the current year aid, is less than the maximum annual limit. If the
227.30commissioner determines that the city has made the required matching local contribution
227.31under subdivision 4, the commissioner must pay to the city the amount of general state
227.32infrastructure aid for the year by September 1.
227.33(c) The city must use general state infrastructure aid it receives under this subdivision
227.34for improvements and other capital costs related to the public infrastructure projects
227.35approved by the corporation, other than transit costs. The city must maintain appropriate
227.36records to document the use of the funds under this requirement.
228.1(d) The commissioner, in consultation with the commissioner of management and
228.2budget, and representatives of the city and the corporation, must establish a total limit on
228.3the amount of state aid payable under this subdivision that will be adequate to finance, in
228.4combination with the local contribution, $455,000,000 of general public infrastructure
228.5projects.
228.6 Subd. 4. General aid; local matching contribution. In order to qualify for general
228.7state infrastructure aid, the city must enter a written agreement with the commissioner
228.8that requires the city to make a qualifying local matching contribution to pay for
228.9$128,000,000 of the cost of public infrastructure projects approved by the corporation,
228.10including financing costs, using funds other than state aid received under this section.
228.11The $128,000,000 required local matching contribution is reduced by one half of the
228.12amounts the city pays for operating and administrative costs of the corporation up to a
228.13maximum amount agreed to by the board and the city. The agreement must provide for the
228.14manner, timing, and amounts of the city contributions, including the city's commitment
228.15for each year. Notwithstanding any law to the contrary, the agreement may provide that
228.16the city contributions for public infrastructure project principal costs may be made over a
228.1720-year period at a rate not greater than $1 from the city for each $2.55 from the state.
228.18The local match contribution may be provided by the city from any source identified in
228.19section 469.45 and any other local tax proceeds or other funds from the city and may
228.20include providing funds to assist developers undertaking projects in accordance with the
228.21development plan or by the city directly undertaking public infrastructure projects in
228.22accordance with the development plan, provided the projects have been approved by the
228.23corporation. City contributions that are in excess of this ratio carry forward and are credited
228.24towards subsequent years. The commissioner and city may agree to amend the agreement
228.25at any time in light of new information or other appropriate factors. The city may enter
228.26into arrangements with the county to pay for or otherwise meet the local matching
228.27contribution requirement. Any public infrastructure project within the area that will be in
228.28the destination medical center development district whose implementation is started or
228.29funded by the city after the effective date of this section but before the development plan
228.30is adopted, as provided by section 469.46, subdivision 5, will be included for the purposes
228.31of determining the amount the city has contributed as required by this section and the
228.32agreement with the commissioner, subject to approval by the corporation.
228.33 Subd. 5. State transit aid. (a) The city qualifies for state transit aid under this section
228.34if the county contributes the required local matching contribution under subdivision 6 or the
228.35city or county has agreed to make an equivalent contribution out of other funds for the year.
229.1(b) If the city qualifies for aid under paragraph (a), the commissioner must pay the
229.2city the state transit aid in the amount calculated under this paragraph. The amount of the
229.3state transit aid for a fiscal year equals the sum of qualified expenditures, as certified by
229.4the commissioner for the prior year, multiplied by 0.75 percent, reduced by the amount
229.5of the local contribution under subdivision 6. The maximum amount of state transit aid
229.6payable in any year is limited to no more than $7,500,000. If the aid entitlement for the
229.7year exceeds the maximum annual limit, the excess is an aid carryover to later years. The
229.8carryover aid must be paid in the first year in which the aid entitlement for the current year
229.9is less than the maximum annual limit, but only to the extent the carryover, when added to
229.10the current year aid, is less than the maximum annual limit.
229.11(c) The commissioner, in consultation with the commissioner of management and
229.12budget, and representatives of the city and the corporation, must establish a total limit on
229.13the amount of state aid payable under this subdivision that will be adequate to finance, in
229.14combination with the local contribution, $116,000,000 of transit costs.
229.15(d) The city must use state transit aid it receives under this subdivision for transit
229.16costs. The city must maintain appropriate records to document the use of the funds
229.17under this requirement.
229.18 Subd. 6. Transit aid; local matching contribution. (a) The required local matching
229.19contribution for state transit aid equals the lesser of:
229.20(1) 40 percent of the state transit aid under subdivision 5; or
229.21(2) the amount that would be raised by a 0.15 percent sales tax imposed by the
229.22county in the preceding year.
229.23The county may impose the sales tax or the wheelage tax under section 469.46
229.24to meet this obligation.
229.25(b) If the county elects not to impose any of the taxes authorized under section 469.46,
229.26the county, or city, or both, may agree to make the local contribution out of other available
229.27funds, other than state aid payable under this section. The commissioner of revenue must
229.28estimate the required amount and certify it to the commissioner, city, and county.
229.29 Subd. 7. Prevailing wage requirement. During the construction, installation,
229.30remodelling, and repairs of any public infrastructure project funded by state aid or a local
229.31matching contribution under this section, laborers and mechanics at the site must be paid
229.32the prevailing wage rate as defined in section 177.42, subdivision 6, and the project is
229.33subject to the requirements of sections 177.30 and 177.41 to 177.44.
229.34 Subd. 8. Termination. No aid may be paid under this section after fiscal year 2049.
230.1 Subd. 9. Appropriation. An amount sufficient to pay the state general infrastructure
230.2and state transit aid authorized under this section is appropriated to the commissioner
230.3from the general fund.
230.4 Sec. 11. Laws 1998, chapter 389, article 8, section 43, subdivision 1, is amended to read:
230.5 Subdivision 1. Sales and use taxes authorized. (a) Notwithstanding Minnesota
230.6Statutes, section
230.7charter, upon termination of the taxes authorized under Laws 1992, chapter 511, article
230.88, section 33, subdivision 1, and if approved by the voters of the city at a general or
230.9special election held within one year of the date of final enactment of this act, the city of
230.10Rochester may, by ordinance, impose an additional sales and use tax of up to one-half
230.11of one percent. The provisions of Minnesota Statutes, section
230.12the imposition, administration, collection, and enforcement of the tax authorized under
230.13this
230.14(b) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any
230.15other contrary provision of law, ordinance, or charter, the city of Rochester may, by
230.16ordinance, impose an additional sales and use tax of up to one quarter of one percent. The
230.17provisions of Minnesota Statutes, section 297A.99, subdivisions 1 and 4 to 13, govern
230.18the imposition, administration, collection, and enforcement of the tax authorized under
230.19this paragraph.
230.20 Sec. 12. Laws 1998, chapter 389, article 8, section 43, subdivision 3, as amended by
230.21Laws 2005, First Special Session chapter 3, article 5, section 28, and Laws 2011, First
230.22Special Session chapter 7, article 4, section 5, is amended to read:
230.23 Subd. 3. Use of revenues. (a) Revenues received from the taxes authorized by
230.24subdivisions 1, paragraph (a), and 2 must be used by the city to pay for the cost of
230.25collecting and administering the taxes and to pay for the following projects:
230.26 (1) transportation infrastructure improvements including regional highway and
230.27airport improvements;
230.28 (2) improvements to the civic center complex;
230.29 (3) a municipal water, sewer, and storm sewer project necessary to improve regional
230.30ground water quality; and
230.31 (4) construction of a regional recreation and sports center and other higher education
230.32facilities available for both community and student use.
230.33 (b) The total amount of capital expenditures or bonds for projects listed in paragraph
230.34(a) that may be paid from the revenues raised from the taxes authorized in this section
231.1may not exceed $111,500,000. The total amount of capital expenditures or bonds for the
231.2project in clause (4) that may be paid from the revenues raised from the taxes authorized
231.3in this section may not exceed $28,000,000.
231.4(c) In addition to the projects authorized in paragraph (a) and not subject to the
231.5amount stated in paragraph (b), the city of Rochester may, if approved by the voters at an
231.6election under subdivision 5, paragraph (c), use the revenues received from the taxes and
231.7bonds authorized in this section to pay the costs of or bonds for the following purposes:
231.8(1) $17,000,000 for capital expenditures and bonds for the following Olmsted
231.9County transportation infrastructure improvements:
231.10(i) County State Aid Highway 34 reconstruction;
231.11(ii) Trunk Highway 63 and County State Aid Highway 16 interchange;
231.12(iii) phase II of the Trunk Highway 52 and County State Aid Highway 22 interchange;
231.13(iv) widening of County State Aid Highway 22 West Circle Drive; and
231.14(v) 60th Avenue Northwest corridor preservation;
231.15(2) $30,000,000 for city transportation projects including:
231.16(i) Trunk Highway 52 and 65th Street interchange;
231.17(ii) NW transportation corridor acquisition;
231.18(iii) Phase I of the Trunk Highway 52 and County State Aid Highway 22 interchange;
231.19(iv) Trunk Highway 14 and Trunk Highway 63 intersection;
231.20(v) Southeast transportation corridor acquisition;
231.21(vi) Rochester International Airport expansion; and
231.22(vii) a transit operations center bus facility;
231.23(3) $14,000,000 for the University of Minnesota Rochester academic and
231.24complementary facilities;
231.25(4) $6,500,000 for the Rochester Community and Technical College/Winona State
231.26University career technical education and science and math facilities;
231.27(5) $6,000,000 for the Rochester Community and Technical College regional
231.28recreation facilities at University Center Rochester;
231.29(6) $20,000,000 for the Destination Medical Community Initiative;
231.30(7) $8,000,000 for the regional public safety and 911 dispatch center facilities;
231.31(8) $20,000,000 for a regional recreation/senior center;
231.32(9) $10,000,000 for an economic development fund; and
231.33(10) $8,000,000 for downtown infrastructure.
231.34(d) No revenues from the taxes raised from the taxes authorized in subdivisions 1
231.35and 2 may be used to fund transportation improvements related to a railroad bypass that
231.36would divert traffic from the city of Rochester.
232.1(e)
232.2
232.3
232.4
232.5
232.6
232.7297A.99, subdivisions 2 and 3, if the city decides to extend the taxes in subdivisions 1,
232.8paragraph (a), and 2, as allowed under subdivision 5, paragraph (c), the city must use
232.9any amount in excess of the amount necessary to meet obligations under paragraphs (a)
232.10to (c) from those taxes to fund obligations, including financing costs, related to public
232.11infrastructure projects in the development plan adopted under Minnesota Statutes, section
232.12469.43.
232.13(f) Revenues from the tax under subdivision 1, paragraph (b), must be used to
232.14fund obligations, including financing costs, related to the public infrastructure projects
232.15contained in the development plan approved by the DMCC and adopted by the city under
232.16Minnesota Statutes, section 469.43.
232.17 Sec. 13. Laws 1998, chapter 389, article 8, section 43, subdivision 5, as amended by
232.18Laws 2005, First Special Session chapter 3, article 5, section 30, and Laws 2011, First
232.19Special Session chapter 7, article 4, section 7, is amended to read:
232.20 Subd. 5. Termination of taxes. (a) The taxes imposed under subdivisions 1 and 2
232.21expire at the later of (1) December 31, 2009, or (2) when the city council determines that
232.22sufficient funds have been received from the taxes to finance the first $71,500,000 of capital
232.23expenditures and bonds for the projects authorized in subdivision 3, including the amount to
232.24prepay or retire at maturity the principal, interest, and premium due on any bonds issued for
232.25the projects under subdivision 4, unless the taxes are extended as allowed in paragraph (b).
232.26Any funds remaining after completion of the project and retirement or redemption of the
232.27bonds shall also be used to fund the projects under subdivision 3. The taxes imposed under
232.28subdivisions 1 and 2 may expire at an earlier time if the city so determines by ordinance.
232.29 (b) Notwithstanding Minnesota Statutes, sections
232.30other contrary provision of law, ordinance, or city charter, the city of Rochester may, by
232.31ordinance, extend the taxes authorized in subdivisions 1 and 2 beyond December 31, 2009,
232.32if approved by the voters of the city at a special election in 2005 or the general election in
232.332006. The question put to the voters must indicate that an affirmative vote would allow
232.34up to an additional $40,000,000 of sales tax revenues be raised and up to $40,000,000
232.35of bonds to be issued above the amount authorized in the June 23, 1998, referendum for
233.1the projects specified in subdivision 3. If the taxes authorized in subdivisions 1 and 2 are
233.2extended under this paragraph, the taxes expire when the city council determines that
233.3sufficient funds have been received from the taxes to finance the projects and to prepay
233.4or retire at maturity the principal, interest, and premium due on any bonds issued for the
233.5projects under subdivision 4. Any funds remaining after completion of the project and
233.6retirement or redemption of the bonds may be placed in the general fund of the city.
233.7(c) Notwithstanding Minnesota Statutes, sections
233.8other contrary provision of law, ordinance, or city charter, the city of Rochester may, by
233.9ordinance, extend the taxes authorized in subdivisions 1, paragraph (a), and 2
233.10
233.11to fund the projects and associated financing costs listed in subdivision 3, paragraphs (a) to
233.12(e), are committed to fund public infrastructure projects contained in the development plan
233.13adopted under Minnesota Statutes, section 469.43, including all financing costs; otherwise
233.14the taxes terminate when the city council determines that sufficient funds have been
233.15received from the taxes to finance
233.16authorized in subdivision 3,
233.17the costs of issuance of the bonds and including the amount to prepay or retire at maturity
233.18the principal, interest, and premiums due on any bonds issued for the projects under
233.19subdivision 4
233.20
233.21
233.22
233.23
233.24
233.25
233.26
233.27
233.28
233.29
233.30
233.31
233.32
233.33
233.34(d) The tax imposed under subdivision 1, paragraph (b), expires at the earlier of
233.352049, or when the city council determines that sufficient funds have been raised from the
233.36tax plus all other city funding sources authorized in this article to meet the city obligation
234.1for financing the public infrastructure projects contained in the development plan adopted
234.2under Minnesota Statutes, section 469.43, including all financing costs.
234.3 Sec. 14. ROCHESTER SALES TAX SHARING.
234.4The city council may, after holding a public hearing and passing a resolution, use
234.5$5,000,000 of the $10,000,000 allocated to an economic development fund in Laws 1998,
234.6chapter 389, article 8, section 43, subdivision 3, as amended by Laws 2005, First Special
234.7Session chapter 3, article 5, section 28, and Laws 2011, First Special Session chapter 7,
234.8article 4, section 5, paragraph (c), clause (9), for grants to any or all of the cities of Byron,
234.9Chatfield, Dodge Center, Dover, Elgin, Eyota, Hayfield, Kasson, Mantorville, Oronoco,
234.10Pine Island, Plainview, Spring Valley, St. Charles, Stewartville, West Concord, and
234.11Zumbrota for economic development projects that these communities would fund through
234.12their economic development authority or housing and redevelopment authority. The
234.13public hearing may be part of a regular city council meeting. If the council does not pass
234.14the resolution by September 1, 2013, the $5,000,000 may not be used for grants to the
234.15other cities but shall instead be used to fund public infrastructure projects contained in the
234.16development plan under Minnesota Statutes, section 469.42.
234.17 Sec. 15. OLMSTED INTERREGIONAL PASSENGER RAIL STUDY.
234.18The study by the Olmsted County Regional Rail authority, in conjunction with the
234.19Minnesota Department of Transportation, on interregional passenger rail, and funded
234.20under Laws 2009, chapter 93, article 1, section 11, subdivision 5, must include analysis
234.21of the feasibility of a high-speed rail connection between Rochester and the Mall of
234.22America via Minnesota State Highway 77 with connections to the Minneapolis-St. Paul
234.23International Airport and the Union Depot in St. Paul; and, to the extent feasible, take into
234.24account available data, forecasts, available transportation demand modeling information,
234.25and transportation impacts of major economic initiatives and proposals including, but not
234.26limited to, expansion of the Mayo Clinic.
234.27EFFECTIVE DATE.This section is effective the day following final enactment.
234.28 Sec. 16. EFFECTIVE DATE.
234.29Except as otherwise provided, this article is effective the day after the governing
234.30body of the city of Rochester and its chief clerical officer timely comply with Minnesota
234.31Statutes, section 645.021, subdivisions 2 and 3.
235.3 Section 1. Minnesota Statutes 2012, section 126C.48, subdivision 8, is amended to read:
235.4 Subd. 8. Taconite payment and other reductions. (1) Reductions in levies
235.5pursuant to subdivision 1 must be made prior to the reductions in clause (2).
235.6(2) Notwithstanding any other law to the contrary, districts that have revenue
235.7pursuant to sections
235.8under sections
235.9to
235.10severed mineral values must reduce the levies authorized by this chapter and chapters
235.11120B, 122A, 123A, 123B, 124A, 124D, 125A, and 127A by 95 percent of the sum of the
235.12previous year's revenue specified under this clause and the amount attributable to the same
235.13production year distributed to the cities and townships within the school district under
235.14section 298.28, subdivision 2, paragraph (c).
235.15(3) The amount of any voter approved referendum, facilities down payment, and
235.16debt levies shall not be reduced by more than 50 percent under this subdivision. In
235.17administering this paragraph, the commissioner shall first reduce the nonvoter approved
235.18levies of a district; then, if any payments, severed mineral value tax revenue or recognized
235.19revenue under paragraph (2) remains, the commissioner shall reduce any voter approved
235.20referendum levies authorized under section
235.21mineral value tax revenue or recognized revenue under paragraph (2) remains, the
235.22commissioner shall reduce any voter approved facilities down payment levies authorized
235.23under section
235.24recognized revenue under paragraph (2) remains, the commissioner shall reduce any
235.25voter approved debt levies.
235.26(4) Before computing the reduction pursuant to this subdivision of the health and
235.27safety levy authorized by sections
235.28shall ascertain from each affected school district the amount it proposes to levy under
235.29each section or subdivision. The reduction shall be computed on the basis of the amount
235.30so ascertained.
235.31(5) To the extent the levy reduction calculated under paragraph (2) exceeds the
235.32limitation in paragraph (3), an amount equal to the excess must be distributed from the
235.33school district's distribution under sections
235.34year to the cities and townships within the school district in the proportion that their
235.35taxable net tax capacity within the school district bears to the taxable net tax capacity of
235.36the school district for property taxes payable in the year prior to distribution. No city or
236.1township shall receive a distribution greater than its levy for taxes payable in the year prior
236.2to distribution. The commissioner of revenue shall certify the distributions of cities and
236.3towns under this paragraph to the county auditor by September 30 of the year preceding
236.4distribution. The county auditor shall reduce the proposed and final levies of cities and
236.5towns receiving distributions by the amount of their distribution. Distributions to the cities
236.6and towns shall be made at the times provided under section
236.7EFFECTIVE DATE.This section is effective for levies certified in 2013 and later.
236.8 Sec. 2. Minnesota Statutes 2012, section 298.17, is amended to read:
236.9298.17 OCCUPATION TAXES TO BE APPORTIONED.
236.10(a) All occupation taxes paid by persons, copartnerships, companies, joint stock
236.11companies, corporations, and associations, however or for whatever purpose organized,
236.12engaged in the business of mining or producing iron ore or other ores, when collected
236.13shall be apportioned and distributed in accordance with the Constitution of the state of
236.14Minnesota, article X, section 3, in the manner following: 90 percent shall be deposited
236.15in the state treasury and credited to the general fund of which four-ninths shall be used
236.16for the support of elementary and secondary schools; and ten percent of the proceeds of
236.17the tax imposed by this section shall be deposited in the state treasury and credited to the
236.18general fund for the general support of the university.
236.19(b) Of the moneys apportioned to the general fund by this section: (1) there is
236.20annually appropriated and credited to the mining environmental and regulatory account in
236.21the special revenue fund an amount equal to that which would have been generated by a
236.22two and one-half cent tax imposed by section
236.23preceding calendar year. Money in the mining environmental and regulatory account is
236.24appropriated annually to the commissioner of natural resources to fund agency staff to
236.25work on environmental issues and provide regulatory services for ferrous and nonferrous
236.26mining operations in this state. Payment to the mining environmental and regulatory
236.27account shall be made by July 1 annually. The commissioner of natural resources shall
236.28execute an interagency agreement with the pollution control agency to assist with the
236.29provision of environmental regulatory services such as monitoring and permitting required
236.30for ferrous and nonferrous mining operations; and (2) there is annually appropriated and
236.31credited to the Iron Range Resources and Rehabilitation Board account in the special
236.32revenue fund an amount equal to that which would have been generated by a 1.5 cent tax
236.33imposed by section
236.34be expended for the purposes of section
237.1The money appropriated pursuant to
237.2 to provide environmental development grants to local governments located within any
237.3county in region 3 as defined in governor's executive order number 60, issued on June
237.412, 1970, which does not contain a municipality qualifying pursuant to section
237.5paragraph (b)
237.6located within any such county, provided that the county board or an advisory group
237.7appointed by the county board to provide recommendations on economic development
237.8shall make recommendations to the Iron Range Resources and Rehabilitation Board
237.9regarding the loans. Payment to the Iron Range Resources and Rehabilitation Board
237.10account shall be made by May 15 annually.
237.11(c) Of the money allocated to Koochiching County, one-third must be paid to the
237.12Koochiching County Economic Development Commission.
237.13EFFECTIVE DATE.This section is effective beginning for the 2013 production
237.14year.
237.15 Sec. 3. Minnesota Statutes 2012, section 298.227, as amended by Laws 2013, chapter
237.163, section 17, is amended to read:
237.17298.227 TACONITE ECONOMIC DEVELOPMENT FUND.
237.18 (a) An amount equal to that distributed pursuant to each taconite producer's taxable
237.19production and qualifying sales under section
237.20the Iron Range Resources and Rehabilitation Board in a separate taconite economic
237.21development fund for each taconite and direct reduced ore producer. Money from the
237.22fund for each producer shall be released by the commissioner after review by a joint
237.23committee consisting of an equal number of representatives of the salaried employees and
237.24the nonsalaried production and maintenance employees of that producer. The District 11
237.25director of the United States Steelworkers of America, on advice of each local employee
237.26president, shall select the employee members. In nonorganized operations, the employee
237.27committee shall be elected by the nonsalaried production and maintenance employees. The
237.28review must be completed no later than six months after the producer presents a proposal
237.29for expenditure of the funds to the committee. The funds held pursuant to this section may
237.30be released only for workforce development and associated public facility improvement,
237.31or for acquisition of plant and stationary mining equipment and facilities for the producer
237.32or for research and development in Minnesota on new mining, or taconite, iron, or steel
237.33production technology, but only if the producer provides a matching expenditure equal to
237.34the amount of the distribution to be used for the same purpose
238.1
238.2Effective for proposals for expenditures of money from the fund beginning May 26, 2007,
238.3the commissioner may not release the funds before the next scheduled meeting of the
238.4board. If a proposed expenditure is not approved by the board, the funds must be deposited
238.5in the Taconite Environmental Protection Fund under sections
238.6producer uses money which has been released from the fund prior to May 26, 2007 to
238.7procure haulage trucks, mobile equipment, or mining shovels, and the producer removes
238.8the piece of equipment from the taconite tax relief area defined in section
238.9ten years from the date of receipt of the money from the fund, a portion of the money
238.10granted from the fund must be repaid to the taconite economic development fund. The
238.11portion of the money to be repaid is 100 percent of the grant if the equipment is removed
238.12from the taconite tax relief area within 12 months after receipt of the money from the fund,
238.13declining by ten percent for each of the subsequent nine years during which the equipment
238.14remains within the taconite tax relief area. If a taconite production facility is sold after
238.15operations at the facility had ceased, any money remaining in the fund for the former
238.16producer may be released to the purchaser of the facility on the terms otherwise applicable
238.17to the former producer under this section. If a producer fails to provide matching funds
238.18for a proposed expenditure within six months after the commissioner approves release
238.19of the funds, the funds are available for release to another producer in proportion to the
238.20distribution provided and under the conditions of this section. Any portion of the fund
238.21which is not released by the commissioner within one year of its deposit in the fund shall
238.22be divided between the taconite environmental protection fund created in section
238.24placement in their respective special accounts. Two-thirds of the unreleased funds shall be
238.25distributed to the taconite environmental protection fund and one-third to the Douglas J.
238.26Johnson economic protection trust fund.
238.27 (b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of
238.28distributions and the review process, an amount equal to ten cents per taxable ton of
238.29production in 2007, for distribution in 2008 only, that would otherwise be distributed
238.30under paragraph (a), may be used for a loan or grant for the cost of providing for a
238.31value-added wood product facility located in the taconite tax relief area and in a county
238.32that contains a city of the first class. This amount must be deducted from the distribution
238.33under paragraph (a) for which a matching expenditure by the producer is not required. The
238.34granting of the loan or grant is subject to approval by the board. If the money is provided
238.35as a loan, interest must be payable on the loan at the rate prescribed in section
238.36subdivision 3
239.1taconite environment protection fund under sections
239.2grant is not made under this paragraph by July 1, 2012, the amount that had been made
239.3available for the loan under this paragraph must be transferred to the taconite environment
239.4protection fund under sections
239.5fund established under this section that exceeds ten cents per ton is available to qualifying
239.6producers under paragraph (a) on a pro rata basis.
239.7(c) Repayment or transfer of money to the taconite environmental protection fund
239.8under paragraph (b), item (ii), must be allocated by the Iron Range Resources and
239.9Rehabilitation Board for public works projects in house legislative districts in the same
239.10proportion as taxable tonnage of production in 2007 in each house legislative district, for
239.11distribution in 2008, bears to total taxable tonnage of production in 2007, for distribution
239.12in 2008. Notwithstanding any other law to the contrary, expenditures under this paragraph
239.13do not require approval by the governor. For purposes of this paragraph, "house legislative
239.14districts" means the legislative districts in existence on May 15, 2009.
239.15EFFECTIVE DATE.This section is effective beginning for the 2014 distribution.
239.16 Sec. 4. Minnesota Statutes 2012, section 298.24, subdivision 1, is amended to read:
239.17 Subdivision 1. Imposed; calculation. (a) For concentrate produced in
239.18
239.19and quarrying thereof, and upon the production of iron ore concentrate therefrom, and
239.20upon the concentrate so produced, a tax of
239.21iron ore concentrate produced therefrom.
239.22
239.23
239.24 (b) For concentrates produced in
239.25be equal to the preceding year's tax rate plus an amount equal to the preceding year's tax
239.26rate multiplied by the percentage increase in the implicit price deflator from the fourth
239.27quarter of the second preceding year to the fourth quarter of the preceding year. "Implicit
239.28price deflator" means the implicit price deflator for the gross domestic product prepared by
239.29the Bureau of Economic Analysis of the United States Department of Commerce.
239.30 (c) An additional tax is imposed equal to three cents per gross ton of merchantable
239.31iron ore concentrate for each one percent that the iron content of the product exceeds 72
239.32percent, when dried at 212 degrees Fahrenheit.
239.33 (d) The tax on taconite and iron sulphides shall be imposed on the average of the
239.34production for the current year and the previous two years. The rate of the tax imposed
239.35will be the current year's tax rate. This clause shall not apply in the case of the closing
240.1of a taconite facility if the property taxes on the facility would be higher if this clause
240.2and section
240.3imposed on the current year production.
240.4 (e) If the tax or any part of the tax imposed by this subdivision is held to be
240.5unconstitutional, a tax of
240.6produced shall be imposed.
240.7 (f) Consistent with the intent of this subdivision to impose a tax based upon the
240.8weight of merchantable iron ore concentrate, the commissioner of revenue may indirectly
240.9determine the weight of merchantable iron ore concentrate included in fluxed pellets by
240.10subtracting the weight of the limestone, dolomite, or olivine derivatives or other basic
240.11flux additives included in the pellets from the weight of the pellets. For purposes of this
240.12paragraph, "fluxed pellets" are pellets produced in a process in which limestone, dolomite,
240.13olivine, or other basic flux additives are combined with merchantable iron ore concentrate.
240.14No subtraction from the weight of the pellets shall be allowed for binders, mineral and
240.15chemical additives other than basic flux additives, or moisture.
240.16 (g)(1) Notwithstanding any other provision of this subdivision, for the first two years
240.17of a plant's commercial production of direct reduced ore from ore mined in this state, no
240.18tax is imposed under this section. As used in this paragraph, "commercial production" is
240.19production of more than 50,000 tons of direct reduced ore in the current year or in any prior
240.20year, "noncommercial production" is production of 50,000 tons or less of direct reduced ore
240.21in any year, and "direct reduced ore" is ore that results in a product that has an iron content
240.22of at least 75 percent. For the third year of a plant's commercial production of direct
240.23reduced ore, the rate to be applied to direct reduced ore is 25 percent of the rate otherwise
240.24determined under this subdivision. For the fourth commercial production year, the rate is
240.2550 percent of the rate otherwise determined under this subdivision; for the fifth commercial
240.26production year, the rate is 75 percent of the rate otherwise determined under this
240.27subdivision; and for all subsequent commercial production years, the full rate is imposed.
240.28 (2) Subject to clause (1), production of direct reduced ore in this state is subject to
240.29the tax imposed by this section, but if that production is not produced by a producer of
240.30taconite, iron sulfides, or other iron-bearing material, the production of taconite, iron
240.31sulfides, or other iron-bearing material, that is consumed in the production of direct
240.32reduced iron in this state is not subject to the tax imposed by this section on taconite,
240.33iron sulfides, or other iron-bearing material.
240.34 (3) Notwithstanding any other provision of this subdivision, no tax is imposed
240.35on direct reduced ore under this section during the facility's noncommercial production
240.36of direct reduced ore. The taconite or iron sulphides consumed in the noncommercial
241.1production of direct reduced ore is subject to the tax imposed by this section on taconite
241.2and iron sulphides. Three-year average production of direct reduced ore does not
241.3include production of direct reduced ore in any noncommercial year. Three-year average
241.4production for a direct reduced ore facility that has noncommercial production is the
241.5average of the commercial production of direct reduced ore for the current year and the
241.6previous two commercial years.
241.7 (4) This paragraph applies only to plants for which all environmental permits have
241.8been obtained and construction has begun before July 1, 2008.
241.9EFFECTIVE DATE.This section is effective beginning for the 2013 production
241.10year.
241.11 Sec. 5. Minnesota Statutes 2012, section 298.28, subdivision 4, is amended to read:
241.12 Subd. 4. School districts. (a)
241.13provided in paragraph (d), less the amount that would have been computed under
241.14Minnesota Statutes 2008, section
241.15district, must be allocated to qualifying school districts to be distributed, based upon the
241.16certification of the commissioner of revenue, under paragraphs (b), (c), and (f).
241.17 (b)(i) 3.43 cents per taxable ton must be distributed to the school districts in which
241.18the lands from which taconite was mined or quarried were located or within which the
241.19concentrate was produced. The distribution must be based on the apportionment formula
241.20prescribed in subdivision 2.
241.21 (ii) Four cents per taxable ton from each taconite facility must be distributed to
241.22each affected school district for deposit in a fund dedicated to building maintenance
241.23and repairs, as follows:
241.24 (1) proceeds from Keewatin Taconite or its successor are distributed to Independent
241.25School Districts Nos. 316, Coleraine, and 319, Nashwauk-Keewatin, or their successor
241.26districts;
241.27 (2) proceeds from the Hibbing Taconite Company or its successor are distributed to
241.28Independent School Districts Nos. 695, Chisholm, and 701, Hibbing, or their successor
241.29districts;
241.30 (3) proceeds from the Mittal Steel Company and Minntac or their successors are
241.31distributed to Independent School Districts Nos. 712, Mountain Iron-Buhl, 706, Virginia,
241.322711, Mesabi East, and 2154, Eveleth-Gilbert, or their successor districts;
241.33 (4) proceeds from the Northshore Mining Company or its successor are distributed
241.34to Independent School Districts Nos. 2142, St. Louis County, and 381, Lake Superior,
241.35or their successor districts; and
242.1 (5) proceeds from United Taconite or its successor are distributed to Independent
242.2School Districts Nos. 2142, St. Louis County, and 2154, Eveleth-Gilbert, or their
242.3successor districts.
242.4 Revenues that are required to be distributed to more than one district shall be
242.5apportioned according to the number of pupil units identified in section
242.6subdivision 1
242.7 (c)(i)
242.8(e), shall be distributed to a group of school districts comprised of those school districts
242.9which qualify as a tax relief area under section
242.10a qualifying municipality as defined by section
242.11to school district indexes as follows: for each school district, its pupil units determined
242.12under section
242.13average adjusted net tax capacity per pupil unit for school districts receiving aid under
242.14this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year
242.15ending prior to distribution to the adjusted net tax capacity per pupil unit of the district.
242.16Each district shall receive that portion of the distribution which its index bears to the sum
242.17of the indices for all school districts that receive the distributions.
242.18 (ii) Notwithstanding clause (i), each school district that receives a distribution
242.19under sections
242.20clause;
242.21severed mineral values after reduction for any portion distributed to cities and towns
242.22under section
242.23levy reduction under section
242.24year of the distribution shall receive a distribution equal to the difference; the amount
242.25necessary to make this payment shall be derived from proportionate reductions in the
242.26initial distribution to other school districts under clause (i). If there are insufficient tax
242.27proceeds to make the distribution provided under this paragraph in any year, money must
242.28be transferred from the taconite property tax relief account in subdivision 6, to the extent
242.29of the shortfall in the distribution.
242.30 (d)(1) Any school district described in paragraph (c) where a levy increase pursuant
242.31to section
242.322001, shall receive a distribution of 21.3 cents per ton. Each district shall receive $175
242.33times the pupil units identified in section
242.34previous year or the 1983-1984 school year, whichever is greater, less the product of 1.8
242.35percent times the district's taxable net tax capacity in
243.1(2) Districts qualifying under paragraph (c) must receive additional taconite aid each
243.2year equal to 22.5 percent of the amount obtained by subtracting:
243.3(i) 1.8 percent of the district's net tax capacity for 2011, from:
243.4(ii) the district's weighted average daily membership for fiscal year 2012 multiplied
243.5by the sum of:
243.6(A) $415, plus
243.7(B) the district's referendum revenue allowance for fiscal year 2013.
243.8 If the total amount provided by paragraph (d) is insufficient to make the payments
243.9herein required then the entitlement of $175 per pupil unit shall be reduced uniformly
243.10so as not to exceed the funds available. Any amounts received by a qualifying school
243.11district in any fiscal year pursuant to paragraph (d) shall not be applied to reduce general
243.12education aid which the district receives pursuant to section
243.13levies of the district. Any amount remaining after the payments provided in this paragraph
243.14shall be paid to the commissioner of Iron Range resources and rehabilitation who shall
243.15deposit the same in the taconite environmental protection fund and the Douglas J. Johnson
243.16economic protection trust fund as provided in subdivision 11.
243.17 Each district receiving money according to this paragraph shall reserve the lesser of
243.18the amount received under this paragraph or $25 times the number of pupil units served
243.19in the district. It may use the money for early childhood programs
243.20
243.21
243.22 (e) There shall be distributed to any school district the amount which the school
243.23district was entitled to receive under section
243.24 (f) Four cents per taxable ton must be distributed to qualifying school districts
243.25according to the distribution specified in paragraph (b), clause (ii), and
243.26per taxable ton must be distributed according to the distribution specified in paragraph
243.27(c). These amounts are not subject to sections
243.28subdivision 8
243.29EFFECTIVE DATE.This section is effective beginning for the 2014 distribution.
243.30 Sec. 6. Minnesota Statutes 2012, section 298.28, subdivision 6, is amended to read:
243.31 Subd. 6. Property tax relief. (a) In
243.32taxable ton, less any amount required to be distributed under paragraphs (b) and (c), or
243.33section
243.34counties' fiscal agent, to be distributed as provided in sections
244.1 (b) If an electric power plant owned by and providing the primary source of power
244.2for a taxpayer mining and concentrating taconite is located in a county other than the
244.3county in which the mining and the concentrating processes are conducted, .1875 cent per
244.4taxable ton of the tax imposed and collected from such taxpayer shall be paid to the county.
244.5 (c) If an electric power plant owned by and providing the primary source of power
244.6for a taxpayer mining and concentrating taconite is located in a school district other than
244.7a school district in which the mining and concentrating processes are conducted, .4541
244.8cent per taxable ton of the tax imposed and collected from the taxpayer shall be paid to
244.9the school district.
244.10EFFECTIVE DATE.This section is effective beginning for the 2014 distribution.
244.11 Sec. 7. Minnesota Statutes 2012, section 298.28, subdivision 9c, is amended to read:
244.12 Subd. 9c.
244.13must be paid to the city of Eveleth for distribution in
244.14and thereafter, to be used for the support of the Hockey Hall of Fame, provided that it
244.15continues to operate in that city, and provided that the city of Eveleth certifies to the St.
244.16Louis County auditor that it has received donations for the support of the Hockey Hall of
244.17Fame from
244.18
244.19ceases to operate in the city of Eveleth prior to receipt of the distribution in
244.20year, and the governing body of the city determines that it is unlikely to resume operation
244.21there within a six-month period, the distribution under this subdivision shall be made to
244.22the Iron Range Resources and Rehabilitation Board.
244.23
244.24
244.25
244.26
244.27 Sec. 8. Minnesota Statutes 2012, section 298.28, subdivision 10, is amended to read:
244.28 Subd. 10. Increase. (a) Except as provided in paragraph (b), beginning with
244.29distributions in 2000, the amount determined under subdivision 9 shall be increased in the
244.30same proportion as the increase in the implicit price deflator as provided in section
244.31subdivision 1
244.32subdivision 6, paragraph (a), shall be increased in the same proportion as the increase in
244.33the implicit price deflator as provided in section
245.1(b) For distributions in 2005 and subsequent years, an amount equal to the increased
245.2tax proceeds attributable to the increase in the implicit price deflator as provided in
245.3section
245.4increases provided in subdivision 4, paragraph (d), is distributed to the grant and loan fund
245.5established in section
245.6EFFECTIVE DATE.This section is effective beginning for the 2014 distribution.
245.7 Sec. 9. IRON RANGE FISCAL DISPARITIES STUDY.
245.8The commissioner of revenue, in coordination with the commissioner of the Iron
245.9Range Resources and Rehabilitation Board, shall conduct a study of the tax relief
245.10area revenue distribution program contained in Minnesota Statutes, chapter 276A,
245.11commonly known as the Iron Range fiscal disparities program. By February 1, 2014, the
245.12commissioner of revenue shall submit a report to the chairs and ranking minority members
245.13of the house of representatives and senate tax committees consisting of the findings of the
245.14study and identification of issues for policy makers to consider. The study must analyze:
245.15(1) trends in population, property tax base, property tax rates, and contribution
245.16and distribution capacity across the region;
245.17(2) the volatility of the program's distribution and causes of the volatility;
245.18(3) the impact of state tax policy changes on the fiscal disparities program; and
245.19(4) the interaction between the program and the distribution of property tax aids and
245.20credits, taconite aid, and Iron Range Resources and Rehabilitation Board funding across
245.21the region.
245.22EFFECTIVE DATE.This section is effective June 1, 2013.
245.23 Sec. 10. 2013 DISTRIBUTION ONLY.
245.24For the 2013 distribution, a special fund is established to receive 38.7 cents per ton of
245.25any excess of the balance remaining after distribution of amounts required under Minnesota
245.26Statutes, section 298.28, subdivision 6. The following amounts are allocated to St. Louis
245.27County acting as the fiscal agent for the recipients for the following specific purposes:
245.28(1) 5.1 cents per ton to the city of Hibbing for improvements to the city's water
245.29supply system;
245.30(2) 4.3 cents per ton to the city of Mountain Iron for the cost of moving utilities
245.31required as a result of actions undertaken by United States Steel Corporation;
245.32(3) 2.5 cents per ton to the city of Biwabik for improvements to the city's water supply
245.33system, payable upon agreement with ArcelorMittal to satisfy water permit conditions;
246.1(4) 2 cents per ton to the city of Tower for the Tower Marina;
246.2(5) 2.4 cents per ton to the city of Grand Rapids for an eco-friendly heat transfer
246.3system to replace aging effluent lines and for parking lot repaving;
246.4(6) 2.4 cents per ton to the city of Two Harbors for wastewater treatment plant
246.5improvements;
246.6(7) 0.9 cents per ton to the city of Ely for the sanitary sewer replacement project;
246.7(8) 0.6 cents per ton to the town of Crystal Bay for debt service of the Claire Nelson
246.8Intermodal Transportation Center;
246.9(9) 0.5 cents per ton to the Greenway Joint Recreation Board for the Coleraine
246.10hockey arena renovations;
246.11(10) 1.2 cents per ton for the West Range Regional Fire Hall and Training Center
246.12to merge the existing fire services of Coleraine, Bovey, Taconite Marble, Calumet, and
246.13Greenway Township;
246.14(11) 2.5 cents per ton to the city of Hibbing for the Memorial Building;
246.15(12) 0.7 cents per ton to the city of Chisholm for public works infrastructure;
246.16(13) 1.8 cents per ton to the Crane Lake Water and Sanitary District for sanitary
246.17sewer extension;
246.18(14) 2.5 cents per ton for the city of Buhl for the roof on the Mesabi Academy;
246.19(15) 1.2 cents per ton to the city of Gilbert for the New Jersey/Ohio Avenue project;
246.20(16) 1.5 cents per ton to the city of Cook for street improvements, business park
246.21infrastructure, and a maintenance garage;
246.22(17) 0.5 cents per ton to the city of Cook for a water line project;
246.23(18) 1.8 cents per ton to the city of Eveleth to be used for Jones Street reconstruction
246.24and the city auditorium;
246.25(19) 0.5 cents for the city of Keewatin for an electrical substation and water line
246.26replacements;
246.27(20) 3.3 cents for the city of Virginia for Fourth Street North infrastructure and
246.28Franklin Park improvement; and
246.29(21) 0.5 cents per ton to the city of Grand Rapids for an economic development
246.30project.
246.31EFFECTIVE DATE.This section is effective for the 2013 distribution, and all
246.32payments must be made separately and within ten days of the date of the August 2013
246.33payment. This section supersedes article 5, section 46, of 2013 H.F. No. 729, if enacted in
246.34the 2013 regular session of the legislature.
247.1 Sec. 11. IRON RANGE RESOURCES AND REHABILITATION
247.2COMMISSIONER; BONDS AUTHORIZED.
247.3 Subdivision 1. Issuance; purpose. Notwithstanding any provision of Minnesota
247.4Statutes, chapter 298, to the contrary, the commissioner of Iron Range resources and
247.5rehabilitation shall issue revenue bonds in a principal amount of $38,000,000 plus an
247.6amount sufficient to pay costs of issuance in one or more series, and thereafter may
247.7issue bonds to refund those bonds. The proceeds of the bonds must be used to pay costs
247.8of issuance and to make grants to school districts located in the taconite tax relief area
247.9defined in Minnesota Statutes, section 273.134, or the taconite assistance area defined
247.10in Minnesota Statutes, section 273.1341, to be used by the school districts to pay for
247.11building projects, such as energy efficiency, technology, infrastructure, health, safety, and
247.12maintenance improvements. Proceeds granted to School District No. 2142 must be used
247.13to reduce debt service on the building bond passed on December 8, 2009.
247.14 Subd. 2. Appropriation. (a) There is annually appropriated from the distribution of
247.15taconite production tax revenues under Minnesota Statues, section 298.28, prior to the
247.16calculation of the amount of the remainder under Minnesota Statutes, section 298.28,
247.17subdivision 11, an amount sufficient to pay when due the principal and interest on the
247.18bonds issued pursuant to subdivision 1. The appropriation under this section must not
247.19exceed an amount equal to ten cents per taxable ton.
247.20 (b) If in any year the amount available under paragraph (a) is insufficient to pay
247.21principal and interest due on the bonds in that year, an additional amount is appropriated
247.22from the Douglas J. Johnson fund to make up the deficiency.
247.23 (c) The appropriation under this subdivision terminates upon payment or maturity of
247.24the last of the bonds issued under this section.
247.25 Subd. 3. Credit enhancement. The bonds issued under this section are "debt
247.26obligations" and the commissioner of Iron Range resources and rehabilitation is a "district"
247.27for purposes of Minnesota Statutes, section 126C.55, provided that advances made under
247.28Minnesota Statutes, section 126C.55, subdivision 2, are not subject to Minnesota Statutes,
247.29section 126C.55, subdivisions 4 to 7.
247.30EFFECTIVE DATE.This section is effective the day following final enactment and
247.31applies beginning with the 2014 distribution under Minnesota Statutes, section 298.28.
247.34 Section 1. Minnesota Statutes 2012, section 118A.04, subdivision 3, is amended to read:
248.1 Subd. 3. State and local securities. Funds may be invested in the following:
248.2(1) any security which is a general obligation of any state or local government with
248.3taxing powers which is rated "A" or better by a national bond rating service;
248.4(2) any security which is a revenue obligation of any state or local government
248.5
248.6(3) a general obligation of the Minnesota housing finance agency which is a moral
248.7obligation of the state of Minnesota and is rated "A" or better by a national bond rating
248.8agency
248.9(4) any security which is an obligation of a school district with an original maturity
248.10not exceeding 13 months and (i) rated in the highest category by a national bond rating
248.11service or (ii) enrolled in the credit enhancement program pursuant to section 126C.55.
248.12 Sec. 2. Minnesota Statutes 2012, section 118A.05, subdivision 5, is amended to read:
248.13 Subd. 5. Guaranteed investment contracts. Agreements or contracts for
248.14guaranteed investment contracts may be entered into if they are issued or guaranteed
248.15by United States commercial banks, domestic branches of foreign banks, United States
248.16insurance companies, or their Canadian subsidiaries, or the domestic affiliates of any
248.17of the foregoing. The credit quality of the issuer's or guarantor's short- and long-term
248.18unsecured debt must be rated in one of the two highest categories by a nationally
248.19recognized rating agency. Agreements or contracts for guaranteed investment contracts
248.20with a term of 18 months or less may be entered into regardless of the credit quality of
248.21the issuer's or guarantor's long-term unsecured debt, provided that the credit quality of
248.22the issuer's short-term unsecured debt is rated in the highest category by a nationally
248.23recognized rating agency. Should the issuer's or guarantor's credit quality be downgraded
248.24below "A", the government entity must have withdrawal rights.
248.25 Sec. 3. Minnesota Statutes 2012, section 216C.436, subdivision 7, is amended to read:
248.26 Subd. 7. Repayment. An implementing entity that finances an energy improvement
248.27under this section must:
248.28(1) secure payment with a lien against the
248.29(2) collect repayments as a special assessment as provided for in section
248.31annual installments.
248.32If the implementing entity is an authority, the local government that authorized
248.33the authority to act as implementing entity shall impose and collect special assessments
249.1necessary to pay debt service on bonds issued by the implementing entity under subdivision
249.28, and shall transfer all collections of the assessments upon receipt to the authority.
249.3EFFECTIVE DATE.This section is effective the day following final enactment.
249.4 Sec. 4. Minnesota Statutes 2012, section 373.01, subdivision 3, is amended to read:
249.5 Subd. 3. Capital notes. (a) A county board may, by resolution and without
249.6referendum, issue capital notes subject to the county debt limit to purchase capital
249.7equipment useful for county purposes that has an expected useful life at least equal to the
249.8term of the notes. The notes shall be payable in not more than ten years and shall be
249.9issued on terms and in a manner the board determines. A tax levy shall be made for
249.10payment of the principal and interest on the notes, in accordance with section
249.11as in the case of bonds.
249.12 (b) For purposes of this subdivision, "capital equipment" means:
249.13 (1) public safety, ambulance, road construction or maintenance, and medical
249.14equipment; and
249.15 (2) computer hardware and software, whether bundled with machinery or equipment
249.16or unbundled, together with application development services and training related to the
249.17use of the computer hardware or software.
249.18 Sec. 5. Minnesota Statutes 2012, section 373.40, subdivision 1, is amended to read:
249.19 Subdivision 1. Definitions. For purposes of this section, the following terms have
249.20the meanings given.
249.21(a) "Bonds" means an obligation as defined under section
249.22(b) "Capital improvement" means acquisition or betterment of public lands,
249.23buildings, or other improvements within the county for the purpose of a county courthouse,
249.24administrative building, health or social service facility, correctional facility, jail, law
249.25enforcement center, hospital, morgue, library, park, qualified indoor ice arena, roads
249.26and bridges, public works facilities, fairground buildings, and records and data storage
249.27facilities, and the acquisition of development rights in the form of conservation easements
249.28under chapter 84C. An improvement must have an expected useful life of five years or more
249.29to qualify. "Capital improvement" does not include a recreation or sports facility building
249.30(such as, but not limited to, a gymnasium, ice arena, racquet sports facility, swimming
249.31pool, exercise room or health spa), unless the building is part of an outdoor park facility
249.32and is incidental to the primary purpose of outdoor recreation. For purposes of this section,
249.33"capital improvement" includes expenditures for purposes described in this paragraph that
249.34have been incurred by a county before approval of a capital improvement plan, if such
250.1expenditures are included in a capital improvement plan approved on or before the date of
250.2the public hearing under subdivision 2 regarding issuance of bonds for such expenditures.
250.3(c) "Metropolitan county" means a county located in the seven-county metropolitan
250.4area as defined in section
250.5(d) "Population" means the population established by the most recent of the
250.6following (determined as of the date the resolution authorizing the bonds was adopted):
250.7(1) the federal decennial census,
250.8(2) a special census conducted under contract by the United States Bureau of the
250.9Census, or
250.10(3) a population estimate made either by the Metropolitan Council or by the state
250.11demographer under section
250.12(e) "Qualified indoor ice arena" means a facility that meets the requirements of
250.13section
250.14(f) "Tax capacity" means total taxable market value, but does not include captured
250.15market value.
250.16 Sec. 6. Minnesota Statutes 2012, section 373.40, subdivision 2, is amended to read:
250.17 Subd. 2. Application of election requirement. (a) Bonds issued by a county
250.18to finance capital improvements under an approved capital improvement plan are not
250.19subject to the election requirements of section
250.20approved by vote of at least three-fifths of the members of the county board. In the case
250.21of a metropolitan county, the bonds must be approved by vote of at least two-thirds of
250.22the members of the county board.
250.23(b) Before issuance of bonds qualifying under this section, the county must publish
250.24a notice of its intention to issue the bonds and the date and time of a hearing to obtain
250.25public comment on the matter. The notice must be published in the official newspaper
250.26of the county or in a newspaper of general circulation in the county. The notice must be
250.27published at least 14, but not more than 28, days before the date of the hearing.
250.28(c) A county may issue the bonds only upon obtaining the approval of a majority of
250.29the voters voting on the question of issuing the obligations, if a petition requesting a vote
250.30on the issuance is signed by voters equal to five percent of the votes cast in the county in
250.31the last county general election and is filed with the county auditor within 30 days after
250.32the public hearing.
250.33
250.34the voters, the county shall not propose the issuance of bonds under this section for the
250.35same purpose and in the same amount for a period of 365 days from the date of receipt
251.1of the petition. If the question of issuing the bonds is submitted and not approved by the
251.2voters, the provisions of section 475.58, subdivision 1a, shall apply.
251.3 Sec. 7. Minnesota Statutes 2012, section 383D.41, is amended by adding a subdivision
251.4to read:
251.5 Subd. 10. Housing improvement areas. (a) In addition to its other powers, the
251.6Dakota County Community Development Agency shall have all powers of a city under
251.7sections 428A.11 to 428A.21 in connection with housing improvement areas in Dakota
251.8County.
251.9(b) For purposes of the Dakota County Community Development Agency's exercise
251.10of the powers granted in this subdivision, references in sections 428A.11 to 428A.21 to:
251.11(1) a "mayor" shall be references to the chair of the board of commissioners of the
251.12Dakota County Community Development Agency;
251.13(2) a "council" shall be references to the board of commissioners of the Dakota
251.14County Community Development Agency; and
251.15(3) a "city clerk" shall be references to an official of the Dakota County Community
251.16Development Agency designated by the executive director of the Dakota County
251.17Community Development Agency.
251.18(c) Notwithstanding sections 428A.11, subdivision 3, and 428A.13, subdivision 1,
251.19the governing body of the Dakota County Community Development Agency may adopt
251.20a resolution, rather than an ordinance, establishing one or more housing improvement
251.21areas, and "enabling ordinance" for purposes of sections 428A.11 to 428A.21 means a
251.22resolution under this clause.
251.23(d) The community development agency (1) shall send a copy of each petition
251.24for the establishment of a housing improvement area to the city in which the proposed
251.25housing improvement area is located, and (2) may not hold the public hearing required in
251.26section 428A.13, subdivision 2, fewer than 30 days after the date on which the related
251.27application was sent pursuant to clause (1). The community development agency may
251.28not establish a housing improvement area if the applicable city council opposes the
251.29establishment by resolution adopted within 30 days after the petition required to be sent
251.30pursuant to clause (1).
251.31 Sec. 8. Minnesota Statutes 2012, section 410.32, is amended to read:
251.32410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.
252.1 (a) Notwithstanding any contrary provision of other law or charter, a home rule
252.2charter city may, by resolution and without public referendum, issue capital notes subject
252.3to the city debt limit to purchase capital equipment.
252.4 (b) For purposes of this section, "capital equipment" means:
252.5 (1) public safety equipment, ambulance and other medical equipment, road
252.6construction and maintenance equipment, and other capital equipment; and
252.7 (2) computer hardware and software, whether bundled with machinery or equipment
252.8or unbundled, together with application development services and training related to the
252.9use of the computer hardware and software.
252.10 (c) The equipment or software must have an expected useful life at least as long
252.11as the term of the notes.
252.12 (d) The notes shall be payable in not more than ten years and be issued on terms and
252.13in the manner the city determines. The total principal amount of the capital notes issued
252.14in a fiscal year shall not exceed 0.03 percent of the market value of taxable property
252.15in the city for that year.
252.16 (e) A tax levy shall be made for the payment of the principal and interest on the
252.17notes, in accordance with section
252.18 (f) Notes issued under this section shall require an affirmative vote of two-thirds of
252.19the governing body of the city.
252.20 (g) Notwithstanding a contrary provision of other law or charter, a home rule charter
252.21city may also issue capital notes subject to its debt limit in the manner and subject to the
252.22limitations applicable to statutory cities pursuant to section
252.23 Sec. 9. Minnesota Statutes 2012, section 412.301, is amended to read:
252.24412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.
252.25 (a) The council may issue certificates of indebtedness or capital notes subject to the
252.26city debt limits to purchase capital equipment.
252.27 (b) For purposes of this section, "capital equipment" means:
252.28 (1) public safety equipment, ambulance and other medical equipment, road
252.29construction and maintenance equipment, and other capital equipment; and
252.30 (2) computer hardware and software, whether bundled with machinery or equipment
252.31or unbundled, together with application development services and training related to the
252.32use of the computer hardware or software.
252.33 (c) The equipment or software must have an expected useful life at least as long as
252.34the terms of the certificates or notes.
253.1 (d) Such certificates or notes shall be payable in not more than ten years and shall be
253.2issued on such terms and in such manner as the council may determine.
253.3 (e) If the amount of the certificates or notes to be issued to finance any such purchase
253.4exceeds 0.25 percent of the market value of taxable property in the city, they shall not
253.5be issued for at least ten days after publication in the official newspaper of a council
253.6resolution determining to issue them; and if before the end of that time, a petition asking
253.7for an election on the proposition signed by voters equal to ten percent of the number of
253.8voters at the last regular municipal election is filed with the clerk, such certificates or notes
253.9shall not be issued until the proposition of their issuance has been approved by a majority
253.10of the votes cast on the question at a regular or special election.
253.11 (f) A tax levy shall be made for the payment of the principal and interest on such
253.12certificates or notes, in accordance with section
253.13 Sec. 10. Minnesota Statutes 2012, section 473.39, is amended by adding a subdivision
253.14to read:
253.15 Subd. 1s. Obligations. After July 1, 2013, in addition to other authority in this
253.16section, the council may issue certificates of indebtedness, bonds, or other obligations
253.17under this section in an amount not exceeding $35,800,000 for capital expenditures as
253.18prescribed in the council's transit capital improvement program and for related costs,
253.19including the costs of issuance and sale of the obligations.
253.20EFFECTIVE DATE.This section is effective the day following final enactment
253.21and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and
253.22Washington. This section is not effective if the legislature authorizes and enacts issuance
253.23authority of at least $35,800,000 in 2013 H.F. No. 1444. If the legislature authorizes and
253.24enacts issuance authority of less than $35,800,000 in 2013 H.F. No. 1444, this section
253.25prevails, regardless of order of enactment.
253.26 Sec. 11. Minnesota Statutes 2012, section 473.606, subdivision 3, is amended to read:
253.27 Subd. 3. Treasurer; investments. The treasurer shall receive and be responsible
253.28for all moneys of the corporation, from whatever source derived, and the same shall be
253.29considered public funds. The treasurer shall disburse the moneys of the corporation only
253.30on orders made by the executive and operating officer, herein provided for, countersigned
253.31by such other officer or such employee of the corporation as may be authorized and
253.32directed so to do by the corporation, showing the name of the claimant and the nature of
253.33the claim. No disbursement shall be certified by such officers until the same have been
253.34approved by said commissioners at a meeting thereof. Whenever the executive director of
254.1the corporation shall certify, pursuant to action taken by the commissioners at a meeting
254.2thereof, that there are moneys and the amount thereof in the possession of the treasurer not
254.3currently needed, then the treasurer may invest said amount or any part thereof in
254.4
254.5
254.6
254.7
254.8
254.9
254.10
254.11
254.12
254.13
254.14
254.15
254.16
254.17
254.18
254.19
254.20
254.21
254.22
254.23
254.24
254.25
254.26
254.27
254.28
254.29
254.30
254.31
254.32
254.33
254.34
254.35
255.1Whenever it shall appear to the commissioners that any invested funds are needed
255.2for current purposes before the maturity dates of the securities held, they shall cause the
255.3executive director to so certify to the treasurer and it shall then be the duty of the treasurer
255.4to order the sale or conversion into cash of the securities in the amount so certified. All
255.5interest and profit on said investments shall be credited to and constitute a part of the
255.6funds of the commission. The treasurer shall keep an account of all moneys received
255.7and disbursed, and at least once a year, at times to be designated by the corporation, file
255.8with the secretary a financial statement of the corporation, showing in appropriate and
255.9identifiable groupings the receipts and disbursements since the last approved statements;
255.10moneys on hand and the purposes for which the same are appropriated; and shall keep an
255.11account of all securities purchased as herein provided, the funds from which purchased
255.12and the interest and profit which may have accrued thereon, and shall accompany the
255.13financial statement aforesaid with a statement setting forth such account. The corporation
255.14may pay to the treasurer from time to time compensation in such amount as it may
255.15determine to cover clerk hire to enable the treasurer to carry out duties and those required
255.16in connection with bonds issued by the corporation as in this act authorized.
255.17 Sec. 12. Minnesota Statutes 2012, section 474A.04, subdivision 1a, is amended to read:
255.18 Subd. 1a. Entitlement reservations
255.19returned by an entitlement issuer before July 15 shall be reallocated through the housing
255.20pool. Any amount returned on or after July 15 shall be reallocated through the unified
255.21pool. An amount returned after the last Monday in November shall be reallocated to the
255.22Minnesota Housing Finance Agency.
255.23
255.24
255.25
255.26
255.27
255.28
255.29
255.30
255.31
255.32EFFECTIVE DATE.This section is effective the day following final enactment
255.33and applies to any bonding authority allocated in 2012 and subsequent years.
255.34 Sec. 13. Minnesota Statutes 2012, section 474A.062, is amended to read:
256.1474A.062 MINNESOTA OFFICE OF HIGHER EDUCATION 120-DAY
256.2ISSUANCE EXEMPTION.
256.3 The Minnesota Office of Higher Education is exempt from the 120-day issuance
256.4requirements in this chapter and may carry forward allocations for student loan bonds
256.5
256.7EFFECTIVE DATE.This section is effective the day following final enactment
256.8and applies to any bonding authority allocated in 2012 and subsequent years.
256.9 Sec. 14. Minnesota Statutes 2012, section 474A.091, subdivision 3a, is amended to read:
256.10 Subd. 3a. Mortgage bonds. (a) Bonding authority remaining in the unified pool on
256.11October 1 is available for single-family housing programs for cities that applied in January
256.12and received an allocation under section
256.13year. The Minnesota Housing Finance Agency shall receive an allocation for mortgage
256.14bonds pursuant to this section, minus any amounts for a city or consortium that intends to
256.15issue bonds on its own behalf under paragraph (c).
256.16 (b) The agency may issue bonds on behalf of participating cities. The agency shall
256.17request an allocation from the commissioner for all applicants who choose to have the
256.18agency issue bonds on their behalf and the commissioner shall allocate the requested
256.19amount to the agency. Allocations shall be awarded by the commissioner each Monday
256.20commencing on the first Monday in October through the last Monday in November for
256.21applications received by 4:30 p.m. on the Monday of the week preceding an allocation.
256.22 For cities who choose to have the agency issue bonds on their behalf, allocations
256.23will be made loan by loan, on a first-come, first-served basis among the cities. The
256.24agency shall submit an application fee pursuant to section
256.25application deposit equal to two percent of the requested allocation to the commissioner
256.26when requesting an allocation from the unified pool. After awarding an allocation and
256.27receiving a notice of issuance for mortgage bonds issued on behalf of the participating
256.28cities, the commissioner shall transfer the application deposit to the Minnesota Housing
256.29Finance Agency.
256.30 For purposes of paragraphs (a) to (d), "city" means a county or a consortium of
256.31local government units that agree through a joint powers agreement to apply together
256.32for single-family housing programs, and has the meaning given it in section
256.33subdivision 6
256.34 (c) Any city that received an allocation pursuant to section
256.352a, paragraph (f)
257.1the unified pool and issue bonds on its own behalf or pursuant to a joint powers agreement
257.2shall notify the Minnesota Housing Finance Agency by the third Monday in September.
257.3The total amount of allocation for mortgage bonds for a city choosing to issue bonds on its
257.4own behalf or through a joint powers agreement is limited to the lesser of: (i) the amount
257.5requested, or (ii) the product of the total amount available for mortgage bonds from the
257.6unified pool, multiplied by the ratio of the population of each city that applied in January
257.7and received an allocation under section
257.8year, as determined by the most recent estimate of the city's population released by the
257.9state demographer's office to the total of the population of all the cities that applied in
257.10January and received an allocation under section
257.11calendar year. If a city choosing to issue bonds on its own behalf or through a joint powers
257.12agreement is located within a county that has also chosen to issue bonds on its own behalf
257.13or through a joint powers agreement, the city's population will be deducted from the
257.14county's population in calculating the amount of allocations under this paragraph.
257.15 The Minnesota Housing Finance Agency shall notify each city choosing to issue
257.16bonds on its own behalf or pursuant to a joint powers agreement of the amount of its
257.17allocation by October 15. Upon determining the amount of the allocation of each choosing
257.18to issue bonds on its own behalf or through a joint powers agreement, the agency shall
257.19forward a list specifying the amounts allotted to each city.
257.20 A city that chooses to issue bonds on its own behalf or through a joint powers
257.21agreement may request an allocation from the commissioner by forwarding an application
257.22with an application fee pursuant to section
257.23deposit equal to two percent of the requested amount to the commissioner no later than
257.244:30 p.m. on the Monday of the week preceding an allocation. Allocations to cities that
257.25choose to issue bonds on their own behalf shall be awarded by the commissioner on
257.26the first Monday after October 15 through the last Monday in November. No city may
257.27receive an allocation from the commissioner after the last Monday in November. The
257.28commissioner shall allocate the requested amount to the city or cities subject to the
257.29limitations under this subdivision.
257.30 If a city issues mortgage bonds from an allocation received under this paragraph,
257.31the issuer must provide for the recycling of funds into new loans. If the issuer is not
257.32able to provide for recycling, the issuer must notify the commissioner in writing of the
257.33reason that recycling was not possible and the reason the issuer elected not to have the
257.34Minnesota Housing Finance Agency issue the bonds. "Recycling" means the use of money
257.35generated from the repayment and prepayment of loans for further eligible loans or for the
257.36redemption of bonds and the issuance of current refunding bonds.
258.1 (d) No entitlement city or county or city in an entitlement county may apply for or
258.2be allocated authority to issue mortgage bonds or use mortgage credit certificates from
258.3the unified pool.
258.4 (e) An allocation awarded to the agency for mortgage bonds under this section
258.5may be carried forward by the agency
258.6notice requirements under section
258.7
258.8EFFECTIVE DATE.This section is effective the day following final enactment
258.9and applies to any bonding authority allocated in 2012 and subsequent years.
258.10 Sec. 15. Minnesota Statutes 2012, section 475.521, subdivision 1, is amended to read:
258.11 Subdivision 1. Definitions. For purposes of this section, the following terms have
258.12the meanings given.
258.13(a) "Bonds" mean an obligation defined under section
258.14(b) "Capital improvement" means acquisition or betterment of public lands,
258.15buildings or other improvements for the purpose of a city hall, town hall, library, public
258.16safety facility, and public works facility. An improvement must have an expected useful
258.17life of five years or more to qualify. Capital improvement does not include light rail transit
258.18or any activity related to it, or a park, road, bridge, administrative building other than a
258.19city or town hall, or land for any of those facilities. For purposes of this section, "capital
258.20improvement" includes expenditures for purposes described in this paragraph that have
258.21been incurred by a municipality before approval of a capital improvement plan, if such
258.22expenditures are included in a capital improvement plan approved on or before the date of
258.23the public hearing under subdivision 2 regarding issuance of bonds for such expenditures.
258.24(c) "Municipality" means a home rule charter or statutory city or a town described in
258.25section
258.26 Sec. 16. Minnesota Statutes 2012, section 475.521, subdivision 2, is amended to read:
258.27 Subd. 2. Election requirement. (a) Bonds issued by a municipality to finance
258.28capital improvements under an approved capital improvements plan are not subject to the
258.29election requirements of section
258.30vote of three-fifths of the members of a five-member governing body. In the case of a
258.31governing body having more or less than five members, the bonds must be approved by a
258.32vote of at least two-thirds of the members of the governing body.
258.33(b) Before the issuance of bonds qualifying under this section, the municipality
258.34must publish a notice of its intention to issue the bonds and the date and time of the
259.1hearing to obtain public comment on the matter. The notice must be published in the
259.2official newspaper of the municipality or in a newspaper of general circulation in the
259.3municipality. Additionally, the notice may be posted on the official Web site, if any, of the
259.4municipality. The notice must be published at least 14 but not more than 28 days before
259.5the date of the hearing.
259.6(c) A municipality may issue the bonds only after obtaining the approval of a
259.7majority of the voters voting on the question of issuing the obligations, if a petition
259.8requesting a vote on the issuance is signed by voters equal to five percent of the votes cast
259.9in the municipality in the last municipal general election and is filed with the clerk within
259.1030 days after the public hearing.
259.11
259.12the question to the voters, the municipality shall not propose the issuance of bonds under
259.13this section for the same purpose and in the same amount for a period of 365 days from the
259.14date of receipt of the petition. If the question of issuing the bonds is submitted and not
259.15approved by the voters, the provisions of section 475.58, subdivision 1a, shall apply.
259.16 Sec. 17. Minnesota Statutes 2012, section 475.58, subdivision 3b, is amended to read:
259.17 Subd. 3b. Street reconstruction and bituminous overlays. (a) A municipality may,
259.18without regard to the election requirement under subdivision 1, issue and sell obligations
259.19for street reconstruction or bituminous overlays, if the following conditions are met:
259.20 (1) the streets are reconstructed or overlaid under a street reconstruction or overlay
259.21plan that describes the street reconstruction or overlay to be financed, the estimated costs,
259.22and any planned reconstruction or overlay of other streets in the municipality over the
259.23next five years, and the plan and issuance of the obligations has been approved by a vote
259.24of all of the members of the governing body present at the meeting following a public
259.25hearing for which notice has been published in the official newspaper at least ten days but
259.26not more than 28 days prior to the hearing; and
259.27 (2) if a petition requesting a vote on the issuance is signed by voters equal to
259.28five percent of the votes cast in the last municipal general election and is filed with the
259.29municipal clerk within 30 days of the public hearing, the municipality may issue the bonds
259.30only after obtaining the approval of a majority of the voters voting on the question of the
259.31issuance of the obligations. If the municipality elects not to submit the question to the
259.32voters, the municipality shall not propose the issuance of bonds under this section for the
259.33same purpose and in the same amount for a period of 365 days from the date of receipt
259.34of the petition. If the question of issuing the bonds is submitted and not approved by the
259.35voters, the provisions of section 475.58, subdivision 1a, shall apply.
260.1 (b) Obligations issued under this subdivision are subject to the debt limit of the
260.2municipality and are not excluded from net debt under section
260.3 (c) For purposes of this subdivision, street reconstruction and bituminous overlays
260.4includes utility replacement and relocation and other activities incidental to the street
260.5reconstruction, turn lanes and other improvements having a substantial public safety
260.6function, realignments, other modifications to intersect with state and county roads, and
260.7the local share of state and county road projects. For purposes of this subdivision, "street
260.8reconstruction" includes expenditures for street reconstruction that have been incurred
260.9by a municipality before approval of a street reconstruction plan, if such expenditures
260.10are included in a street reconstruction plan approved on or before the date of the public
260.11hearing under paragraph (a), clause (1), regarding issuance of bonds for such expenditures.
260.12 (d) Except in the case of turn lanes, safety improvements, realignments, intersection
260.13modifications, and the local share of state and county road projects, street reconstruction
260.14and bituminous overlays does not include the portion of project cost allocable to widening
260.15a street or adding curbs and gutters where none previously existed.
260.16 Sec. 18. Laws 1971, chapter 773, section 1, subdivision 2, as amended by Laws 1974,
260.17chapter 351, section 5, Laws 1976, chapter 234, sections 1 and 7, Laws 1978, chapter 788,
260.18section 1, Laws 1981, chapter 369, section 1, Laws 1983, chapter 302, section 1, Laws
260.191988, chapter 513, section 1, Laws 1992, chapter 511, article 9, section 23, Laws 1998,
260.20chapter 389, article 3, section 27, and Laws 2002, chapter 390, section 23, is amended to
260.21read:
260.22 Subd. 2. For each of the years
260.23authorized to issue bonds in the aggregate principal amount of $20,000,000 for each year.
260.24EFFECTIVE DATE.This section is effective the day after compliance by the
260.25governing body of the city of St. Paul with Minnesota Statutes, section 645.021,
260.26subdivisions 2 and 3.
260.27 Sec. 19. CARRYFORWARD OF BONDING AUTHORITY FOR 2011; NO
260.28DEDUCTION FROM ENTITLEMENT ALLOCATION.
260.29 Notwithstanding Minnesota Statutes, section 474A.04, subdivision 1a, bonding
260.30authority that was allocated to an entitlement issuer in 2011 and that was carried forward
260.31under federal tax law, but for which the entitlement issuer did not provide a notice of issue
260.32to the commissioner of management and budget before 4:30 p.m. on the last business
260.33day of December 2012 must not be deducted from the entitlement allocation for that
260.34entitlement issuer in 2013.
261.1EFFECTIVE DATE.This section is effective the day following final enactment
261.2and applies retroactively to rescind any reallocation by the commissioner of management
261.3and budget under Minnesota Statues, section 474A.04, subdivision 1a, of any amounts so
261.4deducted.
261.5 Sec. 20. LOCAL MATCH; INDEPENDENT SCHOOL DISTRICT NO. 435;
261.6WAUBUN-OGEMA-WHITE EARTH.
261.7(a) Independent School District No. 435, Waubun-Ogema-White Earth, may expand
261.8classroom space at its Ogema Elementary site using a grant of $551,532 that was awarded
261.9to the district by the Department of Human Services on August 12, 2012, pursuant to a
261.10grant agreement as provided by Minnesota Statutes, section 16A.695, subdivision 9.
261.11Notwithstanding Minnesota Statutes, section 16A.695, subdivision 6, to satisfy the match
261.12requirements of the grant agreement, the district may use a lease-purchase agreement.
261.13Notwithstanding Minnesota Statutes, section 465.71, the lease-purchase agreement must
261.14provide that the title to the lease-purchased property must be held by the district.
261.15(b) Notwithstanding Minnesota Statutes, section 126C.13, subdivision 4, if the
261.16school district enters a lease-purchase agreement to satisfy the local match under
261.17paragraph (a), but fails to make a lease-purchase payment, the commissioner of education
261.18shall reduce its general education aid under Minnesota Statutes, section 126C.13,
261.19subdivision 4, by the amount of the lease-purchase payment.
261.20EFFECTIVE DATE.This section is effective the day following final enactment.
261.21 Sec. 21. LEGISLATIVE OFFICE FACILITIES.
261.22(a) The commissioner of administration may enter into a long-term lease-purchase
261.23agreement for a term of up to 25 years, to predesign, design, construct, and equip offices,
261.24hearing rooms, and parking facilities for legislative and other functions. The facility must
261.25be located on the block bounded by Sherburne Avenue on the north, Park Street on the
261.26west, University Avenue on the south, and North Capitol Boulevard on the east. The
261.27legislative office facility must provide office accommodations for all senators and senate
261.28staff who do not have offices in the Capitol building and on-site parking facilities for all
261.29members and staff and disabled visitors to senate offices. A parking structure may also
261.30be built on the state-owned land located in the block bounded by Sherburne Avenue
261.31on the north, Park Street on the east, University Avenue on the south, and Rice Street
261.32on the west. The commissioner of management and budget may issue lease revenue
261.33bonds or certificates of participation associated with the lease-purchase agreement. The
261.34lease-purchase agreements must not be terminated, except for nonappropriation of
262.1money. The lease-purchase agreements must provide the state with a unilateral right to
262.2purchase the leased premises at specified times for specified amounts. The lease-purchase
262.3agreements are exempt from Minnesota Statutes, section 16B.24, subdivisions 6 and 6a.
262.4(b) The facilities under the lease-purchase agreement are exempt from the design
262.5competition requirement under Minnesota Statutes, section 15B.10. Notwithstanding
262.6anything to the contrary under Minnesota Statutes, sections 16C.32 and 16C.33, if the
262.7commissioner of administration elects to use a design-build delivery method to design and
262.8construct one or more facilities under this appropriation, the Capitol Area Architectural and
262.9Planning Board, in cooperation with the commissioner, shall create a selection committee
262.10to act as the board under Minnesota Statutes, sections 16C.32 and 16C.33, for the design
262.11and construction of the facilities. Notwithstanding Minnesota Statutes, section 16B.33, if
262.12the commissioner elects to contract with a primary designer to design one or more facilities
262.13under this appropriation, the Capitol Area Architectural and Planning Board, in cooperation
262.14with the commissioner, shall create a selection committee to conduct the selection process
262.15in accordance with standards under Minnesota Statutes, chapters 15B, 16B, and 16C. A
262.16selection committee created under this section must contain no more than seven members,
262.17including at least three representatives designated by the senate Committee on Rules and
262.18Administration and three representatives designated by the speaker of the house.
262.19(c) Notwithstanding any provision to the contrary in Minnesota Statutes, sections
262.2016C.32 and 16C.33, if the commissioner of administration elects to use a design-build
262.21delivery method to design, construct, and equip one or more facilities and associated
262.22infrastructure to provide audio and video broadcast services for the Capitol building, State
262.23Office Building, and a new legislative office building, if applicable, the commissioner
262.24shall create a selection committee to act as the board under Minnesota Statutes, sections
262.2516C.32 and 16C.33, to design, build, and equip the facilities. The selected design-builder
262.26may self-perform trade work or name an audio and video subcontractor as a member of
262.27the design-builder's team. If an audio and video subcontractor is named as a member of
262.28the design-builder's team, the design-builder is not required to competitively bid the trade
262.29work. Notwithstanding Minnesota Statutes, section 16C.33, subdivision 5, paragraph (b),
262.30after obtaining and evaluating qualifications from each design-builder, in accordance
262.31with the weighted criteria and subcriteria and procedures provided in the request for
262.32qualifications, the selection committee shall select a short list of up to five proposals. If
262.33the commissioner does not receive any proposals, the commissioner may either:
262.34(1) solicit new proposals;
262.35(2) revise the request for qualifications and thereafter solicit new proposals using
262.36the revised request for qualifications; or
263.1(3) request selection of a primary designer under Minnesota Statutes, section
263.216B.33, 16C.08, or 16C.095, and proceed with competitive bidding pursuant to Minnesota
263.3Statutes, sections 16C.25 to 16C.29.
263.4(d) The commissioner of administration may enter into a ground lease for state-owned
263.5property in the capitol area in conjunction with the execution of a lease-purchase
263.6agreement entered into under this section for any improvements constructed on that site.
263.7Notwithstanding the requirements of Minnesota Statutes, section 16A.695, subdivision 2,
263.8paragraph (b), the ground lease must be for a term equal to the term of the lease-purchase
263.9agreement, and must include an option to purchase the land at its then fair market value, if
263.10the improvements are not purchased by the state at the end of the term of the lease-purchase
263.11agreement, or at any earlier time that the lease-purchase agreement is terminated.
263.12(e) The commissioner of administration must not prepare final plans and
263.13specifications for any construction authorized under this section until the program plan
263.14and cost estimates for all elements necessary to complete the project have been approved
263.15by the senate Committee on Rules and Administration.
263.16(f) $3,000,000 is appropriated in fiscal year 2014 from the general fund to the
263.17commissioner of administration for predesign and design of facilities authorized under
263.18paragraph (a). This appropriation is available for expenditure the day following final
263.19enactment and until June 30, 2015.
263.20(g) The commissioner of administration may reserve a portion of money from
263.21appropriations for office space costs of the legislature to fund future repairs for facilities
263.22constructed under the authority provided in this section. Money reserved under this
263.23paragraph must be credited to a segregated account for each building in the special
263.24revenue fund and is appropriated to the commissioner to make the repairs. When the state
263.25acquires title to a building with an account established under this paragraph, the account
263.26for that building must be abolished and the balance remaining in the account must be
263.27transferred to the appropriate asset preservation and replacement account.
263.28EFFECTIVE DATE.This section is effective the day following final enactment.
263.29 Sec. 22. APPROPRIATION; RELOCATION EXPENSES.
263.30$1,860,000 is appropriated from the general fund to the commissioner of
263.31administration for rent loss and relocation expenses related to the Capitol renovation
263.32project for fiscal year 2014. Notwithstanding Minnesota Statutes, section 16A.642,
263.33this appropriation is available until June 30, 2015. The base for this appropriation is
263.34$1,380,000 in fiscal year 2016, $960,000 in fiscal year 2017, and $0 after that.
264.3 Section 1. Minnesota Statutes 2012, section 16A.727, is amended to read:
264.416A.727 BACKUP REVENUES; FOOTBALL STADIUM FUNDING.
264.5 (a) If the commissioner of management and budget determines that the amount of
264.6revenues under section
264.7 will be less than the amounts specified in section
264.8 clause (1), items (i) to (iii), for that fiscal year, the commissioner may implement the
264.9revenue options authorized in Laws 2012, chapter 299, article 6; provided that this section
264.10does not constitute a pledge of tax revenues as security for the payment of principal and
264.11interest on appropriation bonds issued under section
264.12determines to exercise the authority under this section for a fiscal year, the commissioner
264.13must implement the revenue options, as necessary, in the following order:
264.14 (1) a sports-themed lottery game under section
264.15(2) a tax on suites as provided under section
264.16 (b) Revenue raised under the authority granted by this section must be deposited
264.17in the general fund.
264.18 (c) If the commissioner determines to implement one or more of the revenue options
264.19authorized by this section, each subsequent year the commissioner must determine if
264.20the revenue is needed and will be imposed and collected for the next fiscal year. If the
264.21commissioner determines that one or more revenue options implemented for a fiscal year
264.22are not needed for a subsequent fiscal year, the commissioner must terminate them in the
264.23reverse order they were required to be implemented by paragraph (a) with the last option
264.24implemented terminated first and so forth.
264.25 (d) Before implementing a revenue source authorized under this section, the
264.26commissioner must report the intent to do so to the Legislative Commission on Planning
264.27and Fiscal Policy. The commissioner must inform the commission of determinations to
264.28continue or discontinue each revenue source for a subsequent fiscal year.
264.29(e) The provisions of this section no longer apply after the Minnesota Sports
264.30Facilities Authority certifies to the commissioner that it has determined that the revenues
264.31of the general fund under section
264.32and other available resources of the authority provide adequate financial security for
264.33the state and the authority.
264.34EFFECTIVE DATE.This section is effective the day following final enactment.
265.1 Sec. 2. [116V.03] APPROPRIATION.
265.2$1,000,000 in fiscal year 2014 and each year thereafter is appropriated from the
265.3general fund to the commissioner of revenue for transfer to the agricultural project
265.4utilization account in the special revenue fund for the Agricultural Utilization Research
265.5Institute established under section 116V.01.
265.6 Sec. 3. Minnesota Statutes 2012, section 237.52, subdivision 3, is amended to read:
265.7 Subd. 3. Collection. Every provider of services capable of originating a TRS call,
265.8including cellular communications and other nonwire access services, in this state shall,
265.9except as provided in subdivision 3a, collect the charges established by the commission
265.10under subdivision 2 and transfer amounts collected to the commissioner of public
265.11safety in the same manner as provided in section
265.12The commissioner of public safety must deposit the receipts in the fund established in
265.13subdivision 1.
265.14EFFECTIVE DATE.This section is effective January 1, 2014.
265.15 Sec. 4. Minnesota Statutes 2012, section 237.52, is amended by adding a subdivision
265.16to read:
265.17 Subd. 3a. Fee for prepaid wireless telecommunications service. The fee
265.18established in subdivision 2 does not apply to prepaid wireless telecommunications
265.19services as defined in section 403.02, subdivision 17b, which are instead subject to the
265.20prepaid wireless telecommunications access Minnesota fee established in section 403.161,
265.21subdivision 1, paragraph (b). Collection, remittance, and deposit of prepaid wireless
265.22telecommunications access Minnesota fees are governed by sections 403.161 and 403.162.
265.23EFFECTIVE DATE.This section is effective January 1, 2014.
265.24 Sec. 5. Minnesota Statutes 2012, section 270B.01, subdivision 8, is amended to read:
265.25 Subd. 8. Minnesota tax laws. For purposes of this chapter only, unless expressly
265.26stated otherwise, "Minnesota tax laws" means:
265.27 (1) the taxes, refunds, and fees administered by or paid to the commissioner under
265.28chapters 115B, 289A (except taxes imposed under sections
265.29290, 290A, 291, 295, 297A, 297B,
265.30administered by the commissioner pursuant to any tax agreement between the state and
265.31the Indian tribal government, and includes any laws for the assessment, collection, and
265.32enforcement of those taxes, refunds, and fees; and
266.1 (2) section
266.2EFFECTIVE DATE.This section is effective January 1, 2014.
266.3 Sec. 6. Minnesota Statutes 2012, section 270B.12, subdivision 4, is amended to read:
266.4 Subd. 4. Department of Public Safety. The commissioner may disclose return
266.5information to the Department of Public Safety for the purpose of and to the extent
266.6necessary to administer
266.7EFFECTIVE DATE.This section is effective January 1, 2014.
266.8 Sec. 7. Minnesota Statutes 2012, section 270C.03, subdivision 1, is amended to read:
266.9 Subdivision 1. Powers and duties. The commissioner shall have and exercise
266.10the following powers and duties:
266.11 (1) administer and enforce the assessment and collection of taxes;
266.12 (2) make determinations, corrections, and assessments with respect to taxes,
266.13including interest, additions to taxes, and assessable penalties;
266.14 (3) use statistical or other sampling techniques consistent with generally accepted
266.15auditing standards in examining returns or records and making assessments;
266.16 (4) investigate the tax laws of other states and countries, and formulate and submit
266.17to the legislature such legislation as the commissioner may deem expedient to prevent
266.18evasions of state revenue laws and to secure just and equal taxation and improvement in
266.19the system of state revenue laws;
266.20 (5) consult and confer with the governor upon the subject of taxation, the
266.21administration of the laws in regard thereto, and the progress of the work of the
266.22department, and furnish the governor, from time to time, such assistance and information
266.23as the governor may require relating to tax matters;
266.24 (6) execute and administer any agreement with the secretary of the treasury or the
266.25Bureau of Alcohol, Tobacco, Firearms and Explosives in the Department of Justice of the
266.26United States or a representative of another state regarding the exchange of information
266.27and administration of the state revenue laws;
266.28 (7) require town, city, county, and other public officers to report information as to the
266.29collection of taxes received from licenses and other sources, and such other information
266.30as may be needful in the work of the commissioner, in such form as the commissioner
266.31may prescribe;
266.32 (8) authorize the use of unmarked motor vehicles to conduct seizures or criminal
266.33investigations pursuant to the commissioner's authority;
267.1 (9) authorize the participation in audits performed by the Multistate Tax Commission.
267.2For the purposes of chapter 270B, the Multistate Tax Commission will be considered to be
267.3a state for the purposes of auditing corporate sales, excise, and income tax returns.
267.4 (10) maintain toll-free telephone access for taxpayer assistance for calls from
267.5locations within the state; and
267.6
267.7imposed upon the commissioner by law.
267.8EFFECTIVE DATE.This section is effective the day following final enactment.
267.9 Sec. 8. Minnesota Statutes 2012, section 271.06, subdivision 2a, as added by Laws
267.102013, chapter 36, section 1, is amended to read:
267.11 Subd. 2a. Timely mailing treated as timely filing. (a) If, after the period prescribed
267.12by subdivision 2, the original notice of appeal, proof of service upon the commissioner,
267.13and filing fee are delivered by
267.14or the court administrator of district court acting as court administrator of the Tax Court,
267.15then the date of filing is the date of the United States postmark stamped on the envelope
267.16or other appropriate wrapper in which the notice of appeal, proof of service upon the
267.17commissioner, and filing fee are mailed.
267.18(b) This subdivision applies only if the postmark date falls within the period
267.19prescribed by subdivision 2 and the original notice of appeal, proof of service upon the
267.20commissioner, and filing fee are, within the time prescribed by subdivision 2, deposited in
267.21the mail in the United States in an envelope or other appropriate wrapper, postage prepaid,
267.22properly addressed to the Tax Court administrator or the court administrator of district
267.23court acting as court administrator of the Tax Court.
267.24(c) Only the postmark of the United States Postal Service qualifies as proof of
267.25timely mailing under this subdivision. Private postage meters do not qualify as proof of
267.26timely filing under this subdivision. If the original notice of appeal, proof of service
267.27upon the commissioner, and filing fee are sent by United States registered mail, the date
267.28of registration is the postmark date. If the original notice of appeal, proof of service
267.29upon the commissioner, and filing fee are sent by United States certified mail and the
267.30sender's receipt is postmarked by the postal employee to whom the envelope containing
267.31the original notice of appeal, proof of service upon the commissioner, and filing fee is
267.32presented, the date of the United States postmark on the receipt is the postmark date.
267.33(d) A reference in this section to
267.34including a reference to any designated delivery service and a reference in this section to
267.35a postmark by the United States Postal Service must be treated as including a reference
268.1to any date recorded or marked by any designated delivery service in accordance with
268.2section 7502(f) of the Internal Revenue Code.
268.3EFFECTIVE DATE.This section is effective for filings delivered by the United
268.4States Postal Service with a postmark date after August 1, 2013.
268.5 Sec. 9. Minnesota Statutes 2012, section 297E.021, subdivision 3, is amended to read:
268.6 Subd. 3. Available revenues. For purposes of this section, "available revenues"
268.7equals the amount determined under subdivision 2, plus up to $20,000,000 each fiscal year
268.8from the taxes imposed under section 290.06, subdivision 1:
268.9(1) reduced by the following amounts paid for the fiscal year under:
268.10 (i) the appropriation to principal and interest on appropriation bonds under section
268.12 (ii) the appropriation from the general fund to make operating expense payments
268.13under section
268.14 (iii) the appropriation for contributions to the capital reserve fund under section
268.16 (iv) the appropriations under Laws 2012, chapter 299, article 4, for administration
268.17and any successor appropriation;
268.18 (v) the reduction in revenues resulting from the sales tax exemptions under section
268.20 (vi) reimbursements authorized by section
268.21 (vii) the compulsive gambling appropriations under section
268.22paragraph (c), and any successor appropriation; and
268.23(viii) the appropriation for the city of St. Paul under section
268.24(c); and
268.25 (2) increased by the revenue deposited in the general fund under section
268.26subdivision 4, clauses (1) to (3), for the fiscal year.
268.27EFFECTIVE DATE.This section is effective the day following final enactment.
268.28 Sec. 10. Minnesota Statutes 2012, section 403.02, is amended by adding a subdivision
268.29to read:
268.30 Subd. 17b. Prepaid wireless telecommunications service. "Prepaid wireless
268.31telecommunications service" means a wireless telecommunications service that allows the
268.32caller to dial 911 to access the 911 system, which service must be paid for in advance and is:
269.1(1) sold in predetermined units or dollars of which the number declines with use in a
269.2known amount; or
269.3(2) provides unlimited use for a predetermined time period.
269.4The inclusion of nontelecommunications services, including the download of digital
269.5products delivered electronically, content, and ancillary services, with a prepaid wireless
269.6telecommunications service does not preclude that service from being considered a
269.7prepaid wireless telecommunications service under this chapter.
269.8EFFECTIVE DATE.This section is effective January 1, 2014.
269.9 Sec. 11. Minnesota Statutes 2012, section 403.02, is amended by adding a subdivision
269.10to read:
269.11 Subd. 20a. Wireless telecommunications service. Wireless telecommunications
269.12service means a commercial mobile radio service, as that term is defined in United
269.13States Code, title 47, section 332, subsection (d), including all broadband personal
269.14communication services, wireless radio telephone services, and geographic area
269.15specialized mobile radio licensees, that offer real-time, two-way voice service
269.16interconnected with the public switched telephone network.
269.17EFFECTIVE DATE.This section is effective January 1, 2014.
269.18 Sec. 12. Minnesota Statutes 2012, section 403.02, subdivision 21, is amended to read:
269.19 Subd. 21. Wireless telecommunications service provider. "Wireless
269.20telecommunications service provider" means a provider of
269.21
269.22
269.23
269.24
269.25
269.26
269.27EFFECTIVE DATE.This section is effective January 1, 2014.
269.28 Sec. 13. Minnesota Statutes 2012, section 403.06, subdivision 1a, is amended to read:
269.29 Subd. 1a. Biennial budget; annual financial report. The commissioner shall
269.30prepare a biennial budget for maintaining the 911 system. By December 15 of each year,
269.31the commissioner shall submit a report to the legislature detailing the expenditures for
269.32maintaining the 911 system, the 911 fees collected, the balance of the 911 fund,
270.1911-related administrative expenses of the commissioner, and the most recent forecast of
270.2revenues and expenditures for the 911 emergency telecommunications service account,
270.3including a separate projection of E911 fees from prepaid wireless customers and
270.4projections of year-end fund balances. The commissioner is authorized to expend money
270.5that has been appropriated to pay for the maintenance, enhancements, and expansion
270.6of the 911 system.
270.7EFFECTIVE DATE.This section is effective the day following final enactment.
270.8 Sec. 14. Minnesota Statutes 2012, section 403.11, subdivision 1, is amended to read:
270.9 Subdivision 1. Emergency telecommunications service fee; account. (a) Each
270.10customer of a wireless or wire-line switched or packet-based telecommunications service
270.11provider connected to the public switched telephone network that furnishes service capable
270.12of originating a 911 emergency telephone call is assessed a fee based upon the number
270.13of wired or wireless telephone lines, or their equivalent, to cover the costs of ongoing
270.14maintenance and related improvements for trunking and central office switching equipment
270.15for 911 emergency telecommunications service, to offset administrative and staffing costs
270.16of the commissioner related to managing the 911 emergency telecommunications service
270.17program, to make distributions provided for in section
270.18including administrative and staffing costs, incurred by the State Patrol Division of the
270.19Department of Public Safety in handling 911 emergency calls made from wireless phones.
270.20 (b) Money remaining in the 911 emergency telecommunications service account
270.21after all other obligations are paid must not cancel and is carried forward to subsequent
270.22years and may be appropriated from time to time to the commissioner to provide financial
270.23assistance to counties for the improvement of local emergency telecommunications
270.24services. The improvements may include providing access to 911 service for
270.25telecommunications service subscribers currently without access and upgrading existing
270.26911 service to include automatic number identification, local location identification,
270.27automatic location identification, and other improvements specified in revised county
270.28911 plans approved by the commissioner.
270.29 (c) The fee may not be less than eight cents nor more than 65 cents a month until
270.30June 30, 2008, not less than eight cents nor more than 75 cents a month until June 30,
270.312009, not less than eight cents nor more than 85 cents a month until June 30, 2010, and
270.32not less than eight cents nor more than 95 cents a month on or after July 1, 2010, for
270.33each customer access line or other basic access service, including trunk equivalents as
270.34designated by the Public Utilities Commission for access charge purposes and including
270.35wireless telecommunications services. With the approval of the commissioner of
271.1management and budget, the commissioner of public safety shall establish the amount of
271.2the fee within the limits specified and inform the companies and carriers of the amount to
271.3be collected. When the revenue bonds authorized under section
271.4have been fully paid or defeased, the commissioner shall reduce the fee to reflect that debt
271.5service on the bonds is no longer needed. The commissioner shall provide companies and
271.6carriers a minimum of 45 days' notice of each fee change. The fee must be the same for all
271.7customers, except that the fee imposed under this subdivision does not apply to prepaid
271.8wireless telecommunications service, which is instead subject to the fee imposed under
271.9section 403.161, subdivision 1, paragraph (a).
271.10 (d) The fee must be collected by each wireless or wire-line telecommunications
271.11service provider subject to the fee. Fees are payable to and must be submitted to the
271.12commissioner monthly before the 25th of each month following the month of collection,
271.13except that fees may be submitted quarterly if less than $250 a month is due, or annually if
271.14less than $25 a month is due. Receipts must be deposited in the state treasury and credited
271.15to a 911 emergency telecommunications service account in the special revenue fund. The
271.16money in the account may only be used for 911 telecommunications services.
271.17 (e) This subdivision does not apply to customers of interexchange carriers.
271.18 (f) The installation and recurring charges for integrating wireless 911 calls into
271.19enhanced 911 systems are eligible for payment by the commissioner if the 911 service
271.20provider is included in the statewide design plan and the charges are made pursuant to
271.21contract.
271.22 (g) Competitive local exchanges carriers holding certificates of authority from the
271.23Public Utilities Commission are eligible to receive payment for recurring 911 services.
271.24EFFECTIVE DATE.This section is effective January 1, 2014.
271.25 Sec. 15. Minnesota Statutes 2012, section 403.11, is amended by adding a subdivision
271.26to read:
271.27 Subd. 3d. Eligible telecommunications carrier; requirement. No wireless
271.28communications provider may provide telecommunications services under a designation
271.29of eligible telecommunications carrier, as provided under Minnesota Rule 7811.1400,
271.30until and unless the commissioner of public safety certifies to the chair of the public
271.31utilities commission that the wireless telecommunications provider is not in arrears in
271.32amounts owed to the 911 emergency telecommunications service account in the special
271.33revenue fund.
271.34EFFECTIVE DATE.This section is effective the day following final enactment.
272.1 Sec. 16. Minnesota Statutes 2012, section 403.11, is amended by adding a subdivision
272.2to read:
272.3 Subd. 6. Report. (a) Beginning September 1, 2013, and continuing semiannually
272.4thereafter, each wireless telecommunications service provider shall report to the
272.5commissioner, based on the mobile telephone number, both the total number of prepaid
272.6wireless telecommunications subscribers sourced to Minnesota and the total number of
272.7wireless telecommunications subscribers sourced to Minnesota. The report must be filed
272.8on the same schedule as Federal Communications Commission Form 477.
272.9(b) The commissioner shall make a standard form available to all wireless
272.10telecommunications service providers for submitting information required to compile
272.11the report required under this subdivision.
272.12(c) The information provided to the commissioner under this subdivision is
272.13considered trade secret information under section 13.37 and may only be used for purposes
272.14of administering this chapter.
272.15EFFECTIVE DATE.This section is effective January 1, 2014.
272.16 Sec. 17. [403.16] DEFINITIONS.
272.17 Subdivision 1. Scope. For the purposes of sections 403.16 to 403.164, the terms
272.18defined in this section have the meanings given them.
272.19 Subd. 2. Consumer. "Consumer" means a person who purchases prepaid wireless
272.20telecommunications service in a retail transaction.
272.21 Subd. 3. Department. "Department" means the Department of Revenue.
272.22 Subd. 4. Prepaid wireless E911 fee. "Prepaid wireless E911 fee" means the fee that
272.23is required to be collected by a seller from a consumer as established in section 403.161,
272.24subdivision 1, paragraph (a).
272.25 Subd. 5. Prepaid wireless telecommunications access Minnesota fee. "Prepaid
272.26wireless telecommunications access Minnesota fee" means the fee that is required to be
272.27collected by a seller from a consumer as established in section 403.161, subdivision 1,
272.28paragraph (b).
272.29 Subd. 6. Provider. "Provider" means a person that provides prepaid wireless
272.30telecommunications service under a license issued by the Federal Communications
272.31Commission.
272.32 Subd. 7. Retail transaction. "Retail transaction" means the purchase of prepaid
272.33wireless telecommunications service from a seller for any purpose other than resale.
272.34 Subd. 8. Seller. "Seller" means a person who sells prepaid wireless
272.35telecommunications service to another person.
273.1EFFECTIVE DATE.This section is effective January 1, 2014.
273.2 Sec. 18. [403.161] PREPAID WIRELESS FEES IMPOSED; COLLECTION;
273.3REMITTANCE.
273.4 Subdivision 1. Fees imposed. (a) A prepaid wireless E911 fee of 80 cents per retail
273.5transaction is imposed on prepaid wireless telecommunications service until the fee is
273.6adjusted as an amount per retail transaction under subdivision 7.
273.7(b) A prepaid wireless telecommunications access Minnesota fee, in the amount of
273.8the monthly charge provided for in section 237.52, subdivision 2, is imposed on each
273.9retail transaction for prepaid wireless telecommunications service until the fee is adjusted
273.10as an amount per retail transaction under subdivision 7.
273.11 Subd. 2. Exemption. The fees established under subdivision 1 are not imposed on a
273.12minimal amount of prepaid wireless telecommunications service that is sold with a prepaid
273.13wireless device and is charged a single nonitemized price, and a seller may not apply the
273.14fees to such a transaction. For purposes of this subdivision, a minimal amount of service
273.15means an amount of service denominated as either ten minutes or less or $5 or less.
273.16 Subd. 3. Fee collected. The prepaid wireless E911 and telecommunications
273.17access Minnesota fees must be collected by the seller from the consumer for each retail
273.18transaction occurring in this state. The amount of each fee must be combined into one
273.19amount, which must be separately stated on an invoice, receipt, or other similar document
273.20that is provided to the consumer by the seller.
273.21 Subd. 4. Sales and use tax treatment. For purposes of this section, a retail
273.22transaction conducted in person by a consumer at a business location of the seller must
273.23be treated as occurring in this state if that business location is in this state, and any other
273.24retail transaction must be treated as occurring in this state if the retail transaction is treated
273.25as occurring in this state for purposes of the sales and use tax as specified in section
273.26297A.669, subdivision 3, paragraph (c).
273.27 Subd. 5. Remittance. The prepaid wireless E911 and telecommunications access
273.28Minnesota fees are the liability of the consumer and not of the seller or of any provider,
273.29except that the seller is liable to remit all fees as provided in section 403.162.
273.30 Subd. 6. Exclusion for calculating other charges. The combined amount of the
273.31prepaid wireless E911 and telecommunications access Minnesota fees collected by a seller
273.32from a consumer must not be included in the base for measuring any tax, fee, surcharge,
273.33or other charge that is imposed by this state, any political subdivision of this state, or
273.34any intergovernmental agency.
274.1 Subd. 7. Fee changes. (a) The prepaid wireless E911 and telecommunications
274.2access Minnesota fee must be proportionately increased or reduced upon any change to
274.3the fee imposed under section 403.11, subdivision 1, paragraph (c), after July 1, 2013, or
274.4the fee imposed under section 237.52, subdivision 2, as applicable.
274.5(b) The department shall post notice of any fee changes on its Web site at least 30
274.6days in advance of the effective date of the fee changes. It is the responsibility of sellers to
274.7monitor the department's Web site for notice of fee changes.
274.8(c) Fee changes are effective 60 days after the first day of the first calendar month
274.9after the commissioner of public safety or the Public Utilities Commission, as applicable,
274.10changes the fee.
274.11EFFECTIVE DATE.This section is effective January 1, 2014.
274.12 Sec. 19. [403.162] ADMINISTRATION OF PREPAID WIRELESS E911 FEES.
274.13 Subdivision 1. Remittance. Prepaid wireless E911 and telecommunications access
274.14Minnesota fees collected by sellers must be remitted to the commissioner of revenue
274.15at the times and in the manner provided by chapter 297A with respect to the general
274.16sales and use tax. The commissioner of revenue shall establish registration and payment
274.17procedures that substantially coincide with the registration and payment procedures that
274.18apply in chapter 297A.
274.19 Subd. 2. Seller's fee retention. A seller may deduct and retain three percent of
274.20prepaid wireless E911 and telecommunications access Minnesota fees collected by the
274.21seller from consumers.
274.22 Subd. 3. Department of Revenue provisions. The audit, assessment, appeal,
274.23collection, refund, penalty, interest, enforcement, and administrative provisions of
274.24chapters 270C and 289A that are applicable to the taxes imposed by chapter 297A apply
274.25to any fee imposed under section 403.161.
274.26 Subd. 4. Procedures for resale transactions. The commissioner of revenue shall
274.27establish procedures by which a seller of prepaid wireless telecommunications service
274.28may document that a sale is not a retail transaction. These procedures must substantially
274.29coincide with the procedures for documenting sale for resale transactions as provided in
274.30chapter 297A.
274.31 Subd. 5. Fees deposited. (a) The commissioner of revenue shall, based on
274.32the relative proportion of the prepaid wireless E911 fee and the prepaid wireless
274.33telecommunications access Minnesota fee imposed per retail transaction, divide the fees
274.34collected in corresponding proportions. Within 30 days of receipt of the collected fees,
274.35the commissioner shall:
275.1(1) deposit the proportion of the collected fees attributable to the prepaid wireless
275.2E911 fee in the 911 emergency telecommunications service account in the special revenue
275.3fund; and
275.4(2) deposit the proportion of collected fees attributable to the prepaid wireless
275.5telecommunications access Minnesota fee in the telecommunications access fund
275.6established in section 237.52, subdivision 1.
275.7(b) The department may deduct and retain an amount, not to exceed two percent of
275.8collected fees, to reimburse its direct costs of administering the collection and remittance
275.9of prepaid wireless E911 fees and prepaid wireless telecommunications access Minnesota
275.10fees.
275.11EFFECTIVE DATE.This section is effective January 1, 2014.
275.12 Sec. 20. [403.163] LIABILITY PROTECTION FOR SELLERS AND
275.13PROVIDERS.
275.14(a) A provider or seller of prepaid wireless telecommunications service is not liable
275.15for damages to any person resulting from or incurred in connection with providing any
275.16lawful assistance in good faith to any investigative or law enforcement officer of the
275.17United States, this or any other state, or any political subdivision of this or any other state.
275.18(b) In addition to the protection from liability provided by paragraph (a), section
275.19403.08, subdivision 11, applies to sellers and providers.
275.20EFFECTIVE DATE.This section is effective the day following final enactment.
275.21 Sec. 21. [403.164] EXCLUSIVITY OF PREPAID WIRELESS E911 FEE.
275.22The prepaid wireless E911 fee imposed by section 403.161 is the only E911 funding
275.23obligation imposed with respect to prepaid wireless telecommunications service in this
275.24state, and no tax, fee, surcharge, or other charge may be imposed by this state, any political
275.25subdivision of this state, or any intergovernmental agency, for E911 funding purposes,
275.26upon any provider, seller, or consumer with respect to the sale, purchase, use, or provision
275.27of prepaid wireless telecommunications service.
275.28EFFECTIVE DATE.This section is effective January 1, 2014.
275.29 Sec. 22. PURPOSE STATEMENTS; TAX EXPENDITURES.
275.30 Subdivision 1. Authority. This section is intended to fulfill the requirement under
275.31Minnesota Statutes, section 3.192, that a bill creating, renewing, or continuing a tax
276.1expenditure provide a purpose for the tax expenditure and a standard or goal against
276.2which its effectiveness may be measured.
276.3 Subd. 2. Federal conformity. The provisions of article 6 conforming Minnesota
276.4individual income tax to changes in federal law related to bonus depreciation and section
276.5179 expensing are intended to simplify compliance with and administration of the
276.6individual income tax.
276.7 Subd. 3. Sales tax exemption for certain aircraft parts and labor. The provisions
276.8of article 5 exempting parts and labor for certain aircraft, is intended to encourage the
276.9growth of the aviation services industry in the state.
276.10 Subd. 4. Railroad track maintenance subtraction. The provisions of article 6
276.11allowing an individual income and corporate franchise tax subtraction for the amount
276.12allowed under the federal credit for railroad maintenance expenses, are intended to
276.13increase the combined federal and state tax incentives available to Class II and Class III
276.14railroads for maintaining and upgrading track in Minnesota. The standard against which
276.15effectiveness is to be measured is the additional miles of track maintained or upgraded
276.16following allowance of the state tax subtraction in addition to the existing federal tax credit.
276.17 Subd. 5. Historic structure rehabilitation credit. The provisions of article 6
276.18extending the sunset date of the historic structure rehabilitation credit and modifying
276.19the effective date of the credit, are intended to encourage the preservation of historic
276.20structures in Minnesota and to create and retain jobs related to rehabilitation of historic
276.21structures in the state. The standard against which the effectiveness of the extension
276.22of the credit and modification of the effective date is to be measured is the number of
276.23jobs created through the rehabilitation of historic structures and the number of historic
276.24structures rehabilitated and placed in service.
276.25 Subd. 6. Greater Minnesota internship credit. The provisions of article 6
276.26providing a tax credit to employers of qualified interns, are intended to encourage
276.27Minnesota businesses to employ and provide valuable education and work experience
276.28to Minnesota students and foster long-term relationships between students and greater
276.29Minnesota employers. The standard against which the effectiveness of the extension of the
276.30credit is the number of students who participated in the program who were subsequently
276.31employed full time by the employer.
277.1 Subd. 7. Sales tax exemption for greater Minnesota business expansion. The
277.2provisions of article 8 are intended to induce existing businesses in greater Minnesota to
277.3increase investment and expand employment in greater Minnesota.
277.4 Subd. 8. Expansion of sales tax exemption on durable medical products and
277.5prosthetics. The provisions of article 8 expanding the definition of items included in
277.6repair and replacement parts of durable medical equipment and prosthetics and exempting
277.7Medicare and medicaid purchases is intended to simplify sales tax administration in this
277.8area and provide relief for sellers who cannot collect the tax under these programs.
277.9 Subd. 9. Sales tax exemption for established religious orders. The provisions
277.10of article 8 exempting certain sales between a religious order and an affiliated institute
277.11of higher education, is intended to retain an existing sales tax exemption that exists
277.12between St. John's Abbey and St. John's University after a governing restructure between
277.13the two entities.
277.14 Subd. 10. Sales tax exemption for certain dental providers. The provisions
277.15of article 8 exempting certain purchases by qualifying critical access dental providers,
277.16is intended to assist critical access dental providers in defraying the overall cost of the
277.17services they provide to underserved communities.
277.18 Subd. 11. Sales tax exemption for nursing homes and boarding care homes.
277.19The provisions of article 8 exempting certain nursing homes and boarding care homes is
277.20intended to clarify that an existing exemption for these facilities is not affected by a recent
277.21property tax case related to defining nonprofit organizations engaged in charitable activities.
277.22 Subd. 12. Construction sales tax exemptions. The provisions of article 8
277.23exempting from sales tax construction materials for various entities, are intended to
277.24increase jobs and reduce tax pyramiding by reducing the tax on inputs used to provide
277.25taxable goods and services.
277.26 Subd. 13. Sales tax exemption on certain public infrastructure. The provisions
277.27of article 10 exempting construction materials used in public infrastructure projects related
277.28to the destination medical center plan is intended to reduce city costs for those projects.
277.29EFFECTIVE DATE.This section is effective the day following final enactment.
277.30 Sec. 23. APPROPRIATIONS.
278.1(a) $950,000 is appropriated from the general fund to the commissioner of revenue
278.2in fiscal year 2014 for administering this act. This appropriation does not cancel but is
278.3available until June 30, 2015. $300,000 of this amount is added to the annual base budget.
278.4(b) $25,000 in fiscal year 2014 and $25,000 in fiscal year 2015 are appropriated
278.5from the general fund to the commissioner of employment and economic development for
278.6administering the provisions of article 10.
278.7EFFECTIVE DATE.This section is effective the day following final enactment.
278.8 Sec. 24. REPEALER.
278.9Minnesota Statutes 2012, sections 290.171; 290.173; and 290.174, are repealed.
278.12 Section 1. Minnesota Statutes 2012, section 38.18, is amended to read:
278.1338.18 COUNTY FAIRGROUNDS; IMPROVEMENT AIDED.
278.14
278.15time having
278.16
278.17limits,
278.18
278.19owning the fairground
278.20
278.21by resolution,
278.22 The
278.23
278.24board
278.25 Sec. 2. Minnesota Statutes 2012, section 40A.15, subdivision 2, is amended to read:
278.26 Subd. 2. Eligible recipients. All counties within the state, municipalities that prepare
278.27plans and official controls instead of a county, and districts are eligible for assistance
278.28under the program. Counties and districts may apply for assistance on behalf of other
278.29municipalities. In order to be eligible for financial assistance a county or municipality must
278.30agree to levy at least 0.01209 percent of
278.31land preservation and conservation activities or otherwise spend the equivalent amount of
278.32local money on those activities, or spend $15,000 of local money, whichever is less.
279.1 Sec. 3. Minnesota Statutes 2012, section 69.011, subdivision 1, is amended to read:
279.2 Subdivision 1. Definitions. Unless the language or context clearly indicates that
279.3a different meaning is intended, the following words and terms, for the purposes of this
279.4chapter and chapters 423, 423A, 424 and 424A, have the meanings ascribed to them:
279.5 (a) "Commissioner" means the commissioner of revenue.
279.6 (b) "Municipality" means:
279.7 (1) a home rule charter or statutory city;
279.8 (2) an organized town;
279.9 (3) a park district subject to chapter 398;
279.10 (4) the University of Minnesota;
279.11 (5) for purposes of the fire state aid program only, an American Indian tribal
279.12government entity located within a federally recognized American Indian reservation;
279.13 (6) for purposes of the police state aid program only, an American Indian tribal
279.14government with a tribal police department which exercises state arrest powers under
279.15section
279.16 (7) for purposes of the police state aid program only, the Metropolitan Airports
279.17Commission; and
279.18 (8) for purposes of the police state aid program only, the Department of Natural
279.19Resources and the Department of Public Safety with respect to peace officers covered
279.20under chapter 352B.
279.21 (c) "Minnesota Firetown Premium Report" means a form prescribed by the
279.22commissioner containing space for reporting by insurers of fire, lightning, sprinkler
279.23leakage and extended coverage premiums received upon risks located or to be performed
279.24in this state less return premiums and dividends.
279.25 (d) "Firetown" means the area serviced by any municipality having a qualified fire
279.26department or a qualified incorporated fire department having a subsidiary volunteer
279.27firefighters' relief association.
279.28 (e) "Estimated market value" means latest available estimated market value of all
279.29property in a taxing jurisdiction, whether the property is subject to taxation, or exempt
279.30from ad valorem taxation obtained from information which appears on abstracts filed with
279.31the commissioner of revenue or equalized by the State Board of Equalization.
279.32 (f) "Minnesota Aid to Police Premium Report" means a form prescribed by the
279.33commissioner for reporting by each fire and casualty insurer of all premiums received
279.34upon direct business received by it in this state, or by its agents for it, in cash or otherwise,
279.35during the preceding calendar year, with reference to insurance written for insuring against
279.36the perils contained in auto insurance coverages as reported in the Minnesota business
280.1schedule of the annual financial statement which each insurer is required to file with
280.2the commissioner in accordance with the governing laws or rules less return premiums
280.3and dividends.
280.4 (g) "Peace officer" means any person:
280.5 (1) whose primary source of income derived from wages is from direct employment
280.6by a municipality or county as a law enforcement officer on a full-time basis of not less
280.7than 30 hours per week;
280.8 (2) who has been employed for a minimum of six months prior to December 31
280.9preceding the date of the current year's certification under subdivision 2, clause (b);
280.10 (3) who is sworn to enforce the general criminal laws of the state and local ordinances;
280.11 (4) who is licensed by the Peace Officers Standards and Training Board and is
280.12authorized to arrest with a warrant; and
280.13 (5) who is a member of the State Patrol retirement plan or the public employees
280.14police and fire fund.
280.15 (h) "Full-time equivalent number of peace officers providing contract service" means
280.16the integral or fractional number of peace officers which would be necessary to provide
280.17the contract service if all peace officers providing service were employed on a full-time
280.18basis as defined by the employing unit and the municipality receiving the contract service.
280.19 (i) "Retirement benefits other than a service pension" means any disbursement
280.20authorized under section
280.21 (j) "Municipal clerk, municipal clerk-treasurer, or county auditor" means:
280.22 (1) for the police state aid program and police relief association financial reports:
280.23 (i) the person who was elected or appointed to the specified position or, in the
280.24absence of the person, another person who is designated by the applicable governing body;
280.25 (ii) in a park district, the secretary of the board of park district commissioners;
280.26 (iii) in the case of the University of Minnesota, the official designated by the Board
280.27of Regents;
280.28 (iv) for the Metropolitan Airports Commission, the person designated by the
280.29commission;
280.30 (v) for the Department of Natural Resources or the Department of Public Safety, the
280.31respective commissioner;
280.32 (vi) for a tribal police department which exercises state arrest powers under section
280.34Indian tribal government; and
280.35 (2) for the fire state aid program and fire relief association financial reports, the
280.36person who was elected or appointed to the specified position, or, for governmental
281.1entities other than counties, if the governing body of the governmental entity designates
281.2the position to perform the function, the chief financial official of the governmental entity
281.3or the chief administrative official of the governmental entity.
281.4 (k) "Voluntary statewide lump-sum volunteer firefighter retirement plan" means the
281.5retirement plan established by chapter 353G.
281.6 Sec. 4. Minnesota Statutes 2012, section 69.021, subdivision 7, is amended to read:
281.7 Subd. 7. Apportionment of fire state aid to municipalities and relief associations.
281.8 (a) The commissioner shall apportion the fire state aid relative to the premiums reported
281.9on the Minnesota Firetown Premium Reports filed under this chapter to each municipality
281.10and/or firefighters relief association.
281.11 (b) The commissioner shall calculate an initial fire state aid allocation amount for
281.12each municipality or fire department under paragraph (c) and a minimum fire state aid
281.13allocation amount for each municipality or fire department under paragraph (d). The
281.14municipality or fire department must receive the larger fire state aid amount.
281.15 (c) The initial fire state aid allocation amount is the amount available for
281.16apportionment as fire state aid under subdivision 5, without inclusion of any additional
281.17funding amount to support a minimum fire state aid amount under section
281.18subdivision 3
281.19statewide federal census for each fire town and one-half in proportion to the estimated
281.20market value of each fire town, including (1) the estimated market value of tax-exempt
281.21property and (2) the estimated market value of natural resources lands receiving in lieu
281.22payments under sections
281.23of minerals. In the case of incorporated or municipal fire departments furnishing fire
281.24protection to other cities, towns, or townships as evidenced by valid fire service contracts
281.25filed with the commissioner, the distribution must be adjusted proportionately to take
281.26into consideration the crossover fire protection service. Necessary adjustments must be
281.27made to subsequent apportionments. In the case of municipalities or independent fire
281.28departments qualifying for the aid, the commissioner shall calculate the state aid for the
281.29municipality or relief association on the basis of the population and the estimated market
281.30value of the area furnished fire protection service by the fire department as evidenced by
281.31duly executed and valid fire service agreements filed with the commissioner. If one or
281.32more fire departments are furnishing contracted fire service to a city, town, or township,
281.33only the population and estimated market value of the area served by each fire department
281.34may be considered in calculating the state aid and the fire departments furnishing service
281.35shall enter into an agreement apportioning among themselves the percent of the population
282.1and the estimated market value of each service area. The agreement must be in writing
282.2and must be filed with the commissioner.
282.3 (d) The minimum fire state aid allocation amount is the amount in addition to the
282.4initial fire state allocation amount that is derived from any additional funding amount
282.5to support a minimum fire state aid amount under section
282.6allocated to municipalities with volunteer firefighters relief associations or covered by the
282.7voluntary statewide lump-sum volunteer firefighter retirement plan based on the number
282.8of active volunteer firefighters who are members of the relief association as reported
282.9in the annual financial reporting for the calendar year 1993 to the Office of the State
282.10Auditor, but not to exceed 30 active volunteer firefighters, so that all municipalities or
282.11fire departments with volunteer firefighters relief associations receive in total at least a
282.12minimum fire state aid amount per 1993 active volunteer firefighter to a maximum of
282.1330 firefighters. If a relief association is established after calendar year 1993 and before
282.14calendar year 2000, the number of active volunteer firefighters who are members of the
282.15relief association as reported in the annual financial reporting for calendar year 1998
282.16to the Office of the State Auditor, but not to exceed 30 active volunteer firefighters,
282.17shall be used in this determination. If a relief association is established after calendar
282.18year 1999, the number of active volunteer firefighters who are members of the relief
282.19association as reported in the first annual financial reporting submitted to the Office of
282.20the State Auditor, but not to exceed 20 active volunteer firefighters, must be used in this
282.21determination. If a relief association is terminated as a result of providing retirement
282.22coverage for volunteer firefighters by the voluntary statewide lump-sum volunteer
282.23firefighter retirement plan under chapter 353G, the number of active volunteer firefighters
282.24of the municipality covered by the statewide plan as certified by the executive director of
282.25the Public Employees Retirement Association to the commissioner and the state auditor,
282.26but not to exceed 30 active firefighters, must be used in this determination.
282.27 (e) Unless the firefighters of the applicable fire department are members of the
282.28voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid must
282.29be paid to the treasurer of the municipality where the fire department is located and the
282.30treasurer of the municipality shall, within 30 days of receipt of the fire state aid, transmit
282.31the aid to the relief association if the relief association has filed a financial report with the
282.32treasurer of the municipality and has met all other statutory provisions pertaining to the
282.33aid apportionment. If the firefighters of the applicable fire department are members of
282.34the voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid
282.35must be paid to the executive director of the Public Employees Retirement Association
282.36and deposited in the voluntary statewide lump-sum volunteer firefighter retirement fund.
283.1 (f) The commissioner may make rules to permit the administration of the provisions
283.2of this section.
283.3 (g) Any adjustments needed to correct prior misallocations must be made to
283.4subsequent apportionments.
283.5 Sec. 5. Minnesota Statutes 2012, section 69.021, subdivision 8, is amended to read:
283.6 Subd. 8. Population and estimated market value. (a) In computations relating to
283.7fire state aid requiring the use of population figures, only official statewide federal census
283.8figures are to be used. Increases or decreases in population disclosed by reason of any
283.9special census must not be taken into consideration.
283.10 (b) In calculations relating to fire state aid requiring the use of estimated market
283.11value property figures, only the latest available estimated market value property figures
283.12may be used.
283.13 Sec. 6. Minnesota Statutes 2012, section 88.51, subdivision 3, is amended to read:
283.14 Subd. 3. Determination of estimated market value. In determining the net tax
283.15capacity of property within any taxing district the value of the surface of lands within any
283.16auxiliary forest therein, as determined by the county board under the provisions of section
283.18such forest, be deemed the estimated market value thereof.
283.19 Sec. 7. Minnesota Statutes 2012, section 103B.245, subdivision 3, is amended to read:
283.20 Subd. 3. Tax. After adoption of the ordinance under subdivision 2, a local
283.21government unit may annually levy a tax on all taxable property in the district for the
283.22purposes for which the tax district is established. The tax may not exceed 0.02418 percent
283.23of estimated market value on taxable property located in rural towns other than urban
283.24towns, unless allowed by resolution of the town electors. The proceeds of the tax shall
283.25be paid into a fund reserved for these purposes. Any proceeds remaining in the reserve
283.26fund at the time the tax is terminated or the district is dissolved shall be transferred and
283.27irrevocably pledged to the debt service fund of the local unit to be used solely to reduce
283.28tax levies for bonded indebtedness of taxable property in the district.
283.29 Sec. 8. Minnesota Statutes 2012, section 103B.251, subdivision 8, is amended to read:
283.30 Subd. 8. Tax. (a) For the payment of principal and interest on the bonds issued
283.31under subdivision 7 and the payment required under subdivision 6, the county shall
283.32irrevocably pledge and appropriate the proceeds of a tax levied on all taxable property
284.1located within the territory of the watershed management organization or subwatershed
284.2unit for which the bonds are issued. Each year until the reserve for payment of the bonds
284.3is sufficient to retire the bonds, the county shall levy on all taxable property in the territory
284.4of the organization or unit, without respect to any statutory or other limitation on taxes, an
284.5amount of taxes sufficient to pay principal and interest on the bonds and to restore any
284.6deficiencies in reserves required to be maintained for payment of the bonds.
284.7 (b) The tax levied on rural towns other than urban towns may not exceed 0.02418
284.8percent of
284.9electors.
284.10 (c) If at any time the amounts available from the levy on property in the territory of
284.11the organization are insufficient to pay principal and interest on the bonds when due, the
284.12county shall make payment from any available funds in the county treasury.
284.13 (d) The amount of any taxes which are required to be levied outside of the territory
284.14of the watershed management organization or unit or taken from the general funds of the
284.15county to pay principal or interest on the bonds shall be reimbursed to the county from
284.16taxes levied within the territory of the watershed management organization or unit.
284.17 Sec. 9. Minnesota Statutes 2012, section 103B.635, subdivision 2, is amended to read:
284.18 Subd. 2. Municipal funding of district. (a) The governing body or board of
284.19supervisors of each municipality in the district must provide the funds necessary to meet
284.20its proportion of the total cost determined by the board, provided the total funding from
284.21all municipalities in the district for the costs shall not exceed an amount equal to .00242
284.22percent of the total
284.23of the municipalities in the district pass a resolution concurring to the additional costs.
284.24 (b) The funds must be deposited in the treasury of the district in amounts and at
284.25times as the treasurer of the district requires.
284.26 Sec. 10. Minnesota Statutes 2012, section 103B.691, subdivision 2, is amended to read:
284.27 Subd. 2. Municipal funding of district. (a) The governing body or board of
284.28supervisors of each municipality in the district shall provide the funds necessary to meet its
284.29proportion of the total cost to be borne by the municipalities as finally certified by the board.
284.30 (b) The municipality's funds may be raised by any means within the authority of
284.31the municipality. The municipalities may each levy a tax not to exceed .02418 percent of
284.32
284.33the funds. The levy shall be within all other limitations provided by law.
285.1 (c) The funds must be deposited into the treasury of the district in amounts and at
285.2times as the treasurer of the district requires.
285.3 Sec. 11. Minnesota Statutes 2012, section 103D.905, subdivision 2, is amended to read:
285.4 Subd. 2. Organizational expense fund. (a) An organizational expense fund,
285.5consisting of an ad valorem tax levy, shall not exceed 0.01596 percent of
285.6 market value, or $60,000, whichever is less. The money in the fund shall be used for
285.7organizational expenses and preparation of the watershed management plan for projects.
285.8 (b) The managers may borrow from the affected counties up to 75 percent of the
285.9anticipated funds to be collected from the organizational expense fund levy and the
285.10counties affected may make the advancements.
285.11 (c) The advancement of anticipated funds shall be apportioned among affected
285.12counties in the same ratio as the net tax capacity of the area of the counties within
285.13the watershed district bears to the net tax capacity of the entire watershed district. If a
285.14watershed district is enlarged, an organizational expense fund may be levied against the
285.15area added to the watershed district in the same manner as provided in this subdivision.
285.16 (d) Unexpended funds collected for the organizational expense may be transferred to
285.17the administrative fund and used for the purposes of the administrative fund.
285.18 Sec. 12. Minnesota Statutes 2012, section 103D.905, subdivision 3, is amended to read:
285.19 Subd. 3. General fund. A general fund, consisting of an ad valorem tax levy, may
285.20not exceed 0.048 percent of
285.21less. The money in the fund shall be used for general administrative expenses and for
285.22the construction or implementation and maintenance of projects of common benefit to
285.23the watershed district. The managers may make an annual levy for the general fund as
285.24provided in section
285.25annually levy a tax not to exceed 0.00798 percent of
285.26for a period not to exceed 15 consecutive years to pay the cost attributable to the basic
285.27water management features of projects initiated by petition of a political subdivision
285.28within the watershed district or by petition of at least 50 resident owners whose property
285.29is within the watershed district.
285.30 Sec. 13. Minnesota Statutes 2012, section 103D.905, subdivision 8, is amended to read:
285.31 Subd. 8. Survey and data acquisition fund. (a) A survey and data acquisition fund
285.32is established and used only if other funds are not available to the watershed district to pay
285.33for making necessary surveys and acquiring data.
286.1 (b) The survey and data acquisition fund consists of the proceeds of a property tax
286.2that can be levied only once every five years. The levy may not exceed 0.02418 percent of
286.3
286.4 (c) The balance of the survey and data acquisition fund may not exceed $50,000.
286.5 (d) In a subsequent proceeding for a project where a survey has been made, the
286.6attributable cost of the survey as determined by the managers shall be included as a part of
286.7the cost of the work and the sum shall be repaid to the survey and data acquisition fund.
286.8 Sec. 14. Minnesota Statutes 2012, section 117.025, subdivision 7, is amended to read:
286.9 Subd. 7. Structurally substandard. "Structurally substandard" means a building:
286.10 (1) that was inspected by the appropriate local government and cited for one or more
286.11enforceable housing, maintenance, or building code violations;
286.12 (2) in which the cited building code violations involve one or more of the following:
286.13 (i) a roof and roof framing element;
286.14 (ii) support walls, beams, and headers;
286.15 (iii) foundation, footings, and subgrade conditions;
286.16 (iv) light and ventilation;
286.17 (v) fire protection, including egress;
286.18 (vi) internal utilities, including electricity, gas, and water;
286.19 (vii) flooring and flooring elements; or
286.20 (viii) walls, insulation, and exterior envelope;
286.21 (3) in which the cited housing, maintenance, or building code violations have not
286.22been remedied after two notices to cure the noncompliance; and
286.23 (4) has uncured housing, maintenance, and building code violations, satisfaction of
286.24which would cost more than 50 percent of the
286.25for the building, excluding land value, as determined under section
286.26taxes payable in the year in which the condemnation is commenced.
286.27A local government is authorized to seek from a judge or magistrate an administrative
286.28warrant to gain access to inspect a specific building in a proposed development or
286.29redevelopment area upon showing of probable cause that a specific code violation has
286.30occurred and that the violation has not been cured, and that the owner has denied the local
286.31government access to the property. Items of evidence that may support a conclusion of
286.32probable cause may include recent fire or police inspections, housing inspection, exterior
286.33evidence of deterioration, or other similar reliable evidence of deterioration in the specific
286.34building.
287.1 Sec. 15. Minnesota Statutes 2012, section 127A.48, subdivision 1, is amended to read:
287.2 Subdivision 1. Computation. The Department of Revenue must annually conduct
287.3an assessment/sales ratio study of the taxable property in each county, city, town, and
287.4school district in accordance with the procedures in subdivisions 2 and 3. Based upon the
287.5results of this assessment/sales ratio study, the Department of Revenue must determine an
287.6
287.7taxing district, the aggregate of which
287.8tax capacity. The adjusted net tax capacity must be reduced by the captured tax capacity of
287.9tax increment districts under section 469.177, subdivision 2, fiscal disparities contribution
287.10tax capacities under sections 276A.06 and 473F.08, and the tax capacity of transmission
287.11lines required to be subtracted from the local tax base under section 273.425; and increased
287.12by fiscal disparities distribution tax capacities under sections 276A.06 and 473F.08. The
287.13adjusted net tax capacities shall be determined using the net tax capacity percentages in
287.14effect for the assessment year following the assessment year of the study. The Department
287.15of Revenue must make whatever estimates are necessary to account for changes in the
287.16classification system. The Department of Revenue may incur the expense necessary to
287.17make the determinations. The commissioner of revenue may reimburse any county or
287.18governmental official for requested services performed in ascertaining the adjusted net tax
287.19capacity. On or before March 15 annually, the Department of Revenue shall file with the
287.20chair of the Tax Committee of the house of representatives and the chair of the Committee
287.21on Taxes and Tax laws of the senate a report of adjusted net tax capacities for school
287.22districts. On or before June 15 annually, the Department of Revenue shall file its final report
287.23on the adjusted net tax capacities for school districts established by the previous year's
287.24assessments and the current year's net tax capacity percentages with the commissioner of
287.25education and each county auditor for those school districts for which the auditor has the
287.26responsibility for determination of local tax rates. A copy of the report so filed shall be
287.27mailed to the clerk of each school district involved and to the county assessor or supervisor
287.28of assessments of the county or counties in which each school district is located.
287.29EFFECTIVE DATE.This section is effective the day following final enactment.
287.30 Sec. 16. Minnesota Statutes 2012, section 138.053, is amended to read:
287.31138.053 COUNTY HISTORICAL SOCIETY; TAX LEVY; CITIES OR
287.32TOWNS.
287.33 The governing body of any home rule charter or statutory city or town may annually
287.34appropriate from its general fund an amount not to exceed 0.02418 percent of
288.1 estimated market value, derived from ad valorem taxes on property or other revenues, to
288.2be paid to the historical society of its respective county to be used for the promotion of
288.3historical work and to aid in defraying the expenses of carrying on the historical work in the
288.4county. No city or town may appropriate any funds for the benefit of any historical society
288.5unless the society is affiliated with and approved by the Minnesota Historical Society.
288.6 Sec. 17. Minnesota Statutes 2012, section 144F.01, subdivision 4, is amended to read:
288.7 Subd. 4. Property tax levy authority. The district's board may levy a tax on the
288.8taxable real and personal property in the district. The ad valorem tax levy may not exceed
288.90.048 percent of the
288.10is less. The proceeds of the levy must be used as provided in subdivision 5. The board shall
288.11certify the levy at the times as provided under section
288.12county with whatever information is necessary to identify the property that is located within
288.13the district. If the boundaries include a part of a parcel, the entire parcel shall be included
288.14in the district. The county auditors must spread, collect, and distribute the proceeds of the
288.15tax at the same time and in the same manner as provided by law for all other property taxes.
288.16 Sec. 18. Minnesota Statutes 2012, section 162.07, subdivision 3, is amended to read:
288.17 Subd. 3. Computation for rural counties. An amount equal to a levy of 0.01596
288.18percent on each rural county's total
288.19calendar year shall be computed and shall be subtracted from the county's total estimated
288.20construction costs. The result thereof shall be the money needs of the county. For the
288.21purpose of this section, "rural counties" means all counties having a population of less
288.22than 175,000.
288.23 Sec. 19. Minnesota Statutes 2012, section 162.07, subdivision 4, is amended to read:
288.24 Subd. 4. Computation for urban counties. An amount equal to a levy of 0.00967
288.25percent on each urban county's total
288.26calendar year shall be computed and shall be subtracted from the county's total estimated
288.27construction costs. The result thereof shall be the money needs of the county. For
288.28the purpose of this section, "urban counties" means all counties having a population
288.29of 175,000 or more.
288.30 Sec. 20. Minnesota Statutes 2012, section 163.04, subdivision 3, is amended to read:
288.31 Subd. 3. Bridges within certain cities. When the council of any statutory city or
288.32city of the third or fourth class may determine that it is necessary to build or improve any
289.1bridge or bridges, including approaches thereto, and any dam or retaining works connected
289.2therewith, upon or forming a part of streets or highways either wholly or partly within
289.3its limits, the county board shall appropriate one-half of the money as may be necessary
289.4therefor from the county road and bridge fund, not exceeding during any year one-half
289.5the amount of taxes paid into the county road and bridge fund during the preceding year,
289.6on property within the corporate limits of the city. The appropriation shall be made upon
289.7the petition of the council, which petition shall be filed by the council with the county
289.8board prior to the fixing by the board of the annual county tax levy. The county board
289.9shall determine the plans and specifications, shall let all necessary contracts, shall have
289.10charge of construction, and upon its request, warrants in payment thereof shall be issued
289.11by the county auditor, from time to time, as the construction work proceeds. Any unpaid
289.12balance may be paid or advanced by the city. On petition of the council, the appropriations
289.13of the county board, during not to exceed three successive years, may be made to apply
289.14on the construction of the same items and to repay any money advanced by the city in
289.15the construction thereof. None of the provisions of this section shall be construed to
289.16be mandatory as applied to any city whose estimated market value exceeds $2,100 per
289.17capita of its population.
289.18 Sec. 21. Minnesota Statutes 2012, section 163.06, subdivision 6, is amended to read:
289.19 Subd. 6. Expenditure in certain counties. In any county having not less than 95
289.20nor more than 105 full and fractional townships, and having
289.21of not less than $12,000,000 nor more than $21,000,000,
289.22 the county board, by resolution, may expend the funds provided in subdivision 4 in any
289.23organized
289.24such county.
289.25 Sec. 22. Minnesota Statutes 2012, section 165.10, subdivision 1, is amended to read:
289.26 Subdivision 1. Certain counties may issue and sell. The county board of any
289.27county having no outstanding road and bridge bonds may issue and sell county road bonds
289.28in an amount not exceeding 0.12089 percent of the estimated market value of the taxable
289.29property within the county
289.30reconstructing, improving, or maintaining any bridge or bridges on any highway under its
289.31jurisdiction, without submitting the matter to a vote of the electors of the county.
289.32 Sec. 23. Minnesota Statutes 2012, section 272.03, is amended by adding a subdivision
289.33to read:
290.1 Subd. 14. Estimated market value. "Estimated market value" means the assessor's
290.2determination of market value, including the effects of any orders made under section
290.3270.12 or chapter 274, for the parcel. The provisions of section 273.032 apply for certain
290.4uses in determining the total estimated market value for the taxing jurisdiction.
290.5 Sec. 24. Minnesota Statutes 2012, section 272.03, is amended by adding a subdivision
290.6to read:
290.7 Subd. 15. Taxable market value. "Taxable market value" means estimated market
290.8value for the parcel as reduced by market value exclusions, deferments of value, or other
290.9adjustments required by law, that reduce market value before the application of class rates.
290.10 Sec. 25. Minnesota Statutes 2012, section 273.032, is amended to read:
290.11273.032 MARKET VALUE DEFINITION.
290.12 (a) Unless otherwise provided, for the purpose of determining any property tax
290.13levy limitation based on market value or any limit on net debt, the issuance of bonds,
290.14certificates of indebtedness, or capital notes based on market value, any qualification to
290.15receive state aid based on market value, or any state aid amount based on market value, the
290.16terms "market value," "
290.17equalized or unequalized, mean the
290.18within the local unit of government before any of the following or similar adjustments for:
290.19 (1) the market value exclusions under:
290.20 (i) section 273.11, subdivisions 14a and 14c (vacant platted land);
290.21 (ii) section 273.11, subdivision 16 (certain improvements to homestead property);
290.22 (iii) section 273.11, subdivisions 19 and 20 (certain improvements to business
290.23properties);
290.24 (iv) section 273.11, subdivision 21 (homestead property damaged by mold);
290.25 (v) section 273.11, subdivision 22 (qualifying lead hazardous reduction projects);
290.26 (vi) section 273.13, subdivision 34 (homestead of a disabled veteran or family
290.27caregiver);
290.28 (vii) section 273.13, subdivision 35 (homestead market value exclusion); or
290.29 (2) the deferment of value under:
290.30 (i) the Minnesota Agricultural Property Tax Law, section 273.111;
290.31 (ii) the Aggregate Resource Preservation Law, section 273.1115;
290.32 (iii) the Minnesota Open Space Property Tax Law, section 273.112;
290.33 (iv) the rural preserves property tax program, section 273.114; or
290.34 (v) the Metropolitan Agricultural Preserves Act, section 473H.10; or
291.1 (3) the adjustments to tax capacity for:
291.2 (i) tax increment
291.3 (ii) fiscal
291.4 (iii) powerline credit
291.5
291.6
291.7273.425.
291.8 (b) Estimated market value under paragraph (a) also includes the market value
291.9of tax-exempt property if the applicable law specifically provides that the limitation,
291.10qualification, or aid calculation includes tax-exempt property.
291.11 (c) Unless otherwise provided, "market value," "
291.12and "market valuation" for purposes of
291.13calculation of state aid, refer to the
291.14assessment year and for purposes of limits on net debt, the issuance of bonds, certificates of
291.15indebtedness, or capital notes refer to the estimated market value as last finally equalized.
291.16
291.17
291.18
291.19
291.20
291.21
291.22
291.23
291.24
291.25
291.26 (d) For purposes of a provision of a home rule charter or of any special law that is not
291.27codified in the statutes and that imposes a levy limitation based on market value or any limit
291.28on debt, the issuance of bonds, certificates of indebtedness, or capital notes based on market
291.29value, the terms "market value," "taxable market value," and "market valuation," whether
291.30equalized or unequalized, mean "estimated market value" as defined in paragraph (a).
291.31 Sec. 26. Minnesota Statutes 2012, section 273.11, subdivision 1, is amended to read:
291.32 Subdivision 1. Generally. Except as provided in this section or section
291.33subdivision 1
291.34determined pursuant to this section shall be stated such that any amount under $100 is
291.35rounded up to $100 and any amount exceeding $100 shall be rounded to the nearest $100.
292.1In estimating and determining such value, the assessor shall not adopt a lower or different
292.2standard of value because the same is to serve as a basis of taxation, nor shall the assessor
292.3adopt as a criterion of value the price for which such property would sell at a forced sale,
292.4or in the aggregate with all the property in the town or district; but the assessor shall value
292.5each article or description of property by itself, and at such sum or price as the assessor
292.6believes the same to be fairly worth in money. The assessor shall take into account the
292.7effect on the market value of property of environmental factors in the vicinity of the
292.8property. In assessing any tract or lot of real property, the value of the land, exclusive of
292.9structures and improvements, shall be determined, and also the value of all structures and
292.10improvements thereon, and the aggregate value of the property, including all structures
292.11and improvements, excluding the value of crops growing upon cultivated land. In valuing
292.12real property upon which there is a mine or quarry, it shall be valued at such price as such
292.13property, including the mine or quarry, would sell for at a fair, voluntary sale, for cash,
292.14if the material being mined or quarried is not subject to taxation under section
292.15and the mine or quarry is not exempt from the general property tax under section
292.16In valuing real property which is vacant, platted property shall be assessed as provided
292.17in
292.18taxable under section
292.19value of such property and not at the value of a leasehold estate in such property, or at
292.20some lesser value than its market value.
292.21 Sec. 27. Minnesota Statutes 2012, section 273.124, subdivision 3a, is amended to read:
292.22 Subd. 3a. Manufactured home park cooperative. (a) When a manufactured home
292.23park is owned by a corporation or association organized under chapter 308A or 308B,
292.24and each person who owns a share or shares in the corporation or association is entitled
292.25to occupy a lot within the park, the corporation or association may claim homestead
292.26treatment for the park. Each lot must be designated by legal description or number, and
292.27each lot is limited to not more than one-half acre of land.
292.28 (b) The manufactured home park shall be entitled to homestead treatment if all
292.29of the following criteria are met:
292.30 (1) the occupant or the cooperative corporation or association is paying the ad
292.31valorem property taxes and any special assessments levied against the land and structure
292.32either directly, or indirectly through dues to the corporation or association; and
292.33 (2) the corporation or association organized under chapter 308A or 308B is wholly
292.34owned by persons having a right to occupy a lot owned by the corporation or association.
293.1 (c) A charitable corporation, organized under the laws of Minnesota with no
293.2outstanding stock, and granted a ruling by the Internal Revenue Service for 501(c)(3)
293.3tax-exempt status, qualifies for homestead treatment with respect to a manufactured home
293.4park if its members hold residential participation warrants entitling them to occupy a lot
293.5in the manufactured home park.
293.6 (d) "Homestead treatment" under this subdivision means the class rate provided for
293.7class 4c property classified under section
293.8item (ii). The homestead market value
293.9subdivision 35, does not apply and the property taxes assessed against the park shall not
293.10be included in the determination of taxes payable for rent paid under section
293.11EFFECTIVE DATE.This section is effective for taxes payable in 2013 and
293.12thereafter.
293.13 Sec. 28. Minnesota Statutes 2012, section 273.124, subdivision 13, is amended to read:
293.14 Subd. 13. Homestead application. (a) A person who meets the homestead
293.15requirements under subdivision 1 must file a homestead application with the county
293.16assessor to initially obtain homestead classification.
293.17 (b) The format and contents of a uniform homestead application shall be prescribed
293.18by the commissioner of revenue. The application must clearly inform the taxpayer that
293.19this application must be signed by all owners who occupy the property or by the qualifying
293.20relative and returned to the county assessor in order for the property to receive homestead
293.21treatment.
293.22 (c) Every property owner applying for homestead classification must furnish to the
293.23county assessor the Social Security number of each occupant who is listed as an owner
293.24of the property on the deed of record, the name and address of each owner who does not
293.25occupy the property, and the name and Social Security number of each owner's spouse who
293.26occupies the property. The application must be signed by each owner who occupies the
293.27property and by each owner's spouse who occupies the property, or, in the case of property
293.28that qualifies as a homestead under subdivision 1, paragraph (c), by the qualifying relative.
293.29 If a property owner occupies a homestead, the property owner's spouse may not
293.30claim another property as a homestead unless the property owner and the property owner's
293.31spouse file with the assessor an affidavit or other proof required by the assessor stating that
293.32the property qualifies as a homestead under subdivision 1, paragraph (e).
293.33 Owners or spouses occupying residences owned by their spouses and previously
293.34occupied with the other spouse, either of whom fail to include the other spouse's name
293.35and Social Security number on the homestead application or provide the affidavits or
294.1other proof requested, will be deemed to have elected to receive only partial homestead
294.2treatment of their residence. The remainder of the residence will be classified as
294.3nonhomestead residential. When an owner or spouse's name and Social Security number
294.4appear on homestead applications for two separate residences and only one application is
294.5signed, the owner or spouse will be deemed to have elected to homestead the residence for
294.6which the application was signed.
294.7 The Social Security numbers, state or federal tax returns or tax return information,
294.8including the federal income tax schedule F required by this section, or affidavits or other
294.9proofs of the property owners and spouses submitted under this or another section to
294.10support a claim for a property tax homestead classification are private data on individuals as
294.11defined by section
294.12may be disclosed to the commissioner of revenue, or, for purposes of proceeding under the
294.13Revenue Recapture Act to recover personal property taxes owing, to the county treasurer.
294.14 (d) If residential real estate is occupied and used for purposes of a homestead by a
294.15relative of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in
294.16order for the property to receive homestead status, a homestead application must be filed
294.17with the assessor. The Social Security number of each relative and spouse of a relative
294.18occupying the property shall be required on the homestead application filed under this
294.19subdivision. If a different relative of the owner subsequently occupies the property, the
294.20owner of the property must notify the assessor within 30 days of the change in occupancy.
294.21The Social Security number of a relative or relative's spouse occupying the property
294.22is private data on individuals as defined by section
294.23disclosed to the commissioner of revenue, or, for the purposes of proceeding under the
294.24Revenue Recapture Act to recover personal property taxes owing, to the county treasurer.
294.25 (e) The homestead application shall also notify the property owners that the
294.26application filed under this section will not be mailed annually and that if the property
294.27is granted homestead status for any assessment year, that same property shall remain
294.28classified as homestead until the property is sold or transferred to another person, or
294.29the owners, the spouse of the owner, or the relatives no longer use the property as their
294.30homestead. Upon the sale or transfer of the homestead property, a certificate of value must
294.31be timely filed with the county auditor as provided under section
294.32notify the assessor within 30 days that the property has been sold, transferred, or that the
294.33owner, the spouse of the owner, or the relative is no longer occupying the property as a
294.34homestead, shall result in the penalty provided under this subdivision and the property
294.35will lose its current homestead status.
295.1 (f) If the homestead application is not returned within 30 days, the county will send a
295.2second application to the present owners of record. The notice of proposed property taxes
295.3prepared under section
295.4a homestead application has not been filed with the county by December 15, the assessor
295.5shall classify the property as nonhomestead for the current assessment year for taxes
295.6payable in the following year, provided that the owner may be entitled to receive the
295.7homestead classification by proper application under section
295.8 (g) At the request of the commissioner, each county must give the commissioner a
295.9list that includes the name and Social Security number of each occupant of homestead
295.10property who is the property owner, property owner's spouse, qualifying relative of a
295.11property owner, or a spouse of a qualifying relative. The commissioner shall use the
295.12information provided on the lists as appropriate under the law, including for the detection
295.13of improper claims by owners, or relatives of owners, under chapter 290A.
295.14 (h) If the commissioner finds that a property owner may be claiming a fraudulent
295.15homestead, the commissioner shall notify the appropriate counties. Within 90 days of
295.16the notification, the county assessor shall investigate to determine if the homestead
295.17classification was properly claimed. If the property owner does not qualify, the county
295.18assessor shall notify the county auditor who will determine the amount of homestead
295.19benefits that had been improperly allowed. For the purpose of this section, "homestead
295.20benefits" means the tax reduction resulting from the classification as a homestead and the
295.21homestead market value exclusion under section
295.22under section
295.23 under section
295.24 The county auditor shall send a notice to the person who owned the affected property
295.25at the time the homestead application related to the improper homestead was filed,
295.26demanding reimbursement of the homestead benefits plus a penalty equal to 100 percent
295.27of the homestead benefits. The person notified may appeal the county's determination
295.28by serving copies of a petition for review with county officials as provided in section
295.30Court within 60 days of the date of the notice from the county. Procedurally, the appeal
295.31is governed by the provisions in chapter 271 which apply to the appeal of a property tax
295.32assessment or levy, but without requiring any prepayment of the amount in controversy. If
295.33the amount of homestead benefits and penalty is not paid within 60 days, and if no appeal
295.34has been filed, the county auditor shall certify the amount of taxes and penalty to the county
295.35treasurer. The county treasurer will add interest to the unpaid homestead benefits and
295.36penalty amounts at the rate provided in section
296.1delinquent in the calendar year during which the amount remains unpaid. Interest may be
296.2assessed for the period beginning 60 days after demand for payment was made.
296.3 If the person notified is the current owner of the property, the treasurer may add the
296.4total amount of homestead benefits, penalty, interest, and costs to the ad valorem taxes
296.5otherwise payable on the property by including the amounts on the property tax statements
296.6under section
296.7valorem taxes shall include interest accrued through December 31 of the year preceding
296.8the taxes payable year for which the amounts are first added. These amounts, when added
296.9to the property tax statement, become subject to all the laws for the enforcement of real or
296.10personal property taxes for that year, and for any subsequent year.
296.11 If the person notified is not the current owner of the property, the treasurer may
296.12collect the amounts due under the Revenue Recapture Act in chapter 270A, or use any of
296.13the powers granted in sections
296.14of the homestead benefits, penalty, interest, and costs, as if those amounts were delinquent
296.15tax obligations of the person who owned the property at the time the application related to
296.16the improperly allowed homestead was filed. The treasurer may relieve a prior owner of
296.17personal liability for the homestead benefits, penalty, interest, and costs, and instead extend
296.18those amounts on the tax lists against the property as provided in this paragraph to the extent
296.19that the current owner agrees in writing. On all demands, billings, property tax statements,
296.20and related correspondence, the county must list and state separately the amounts of
296.21homestead benefits, penalty, interest and costs being demanded, billed or assessed.
296.22 (i) Any amount of homestead benefits recovered by the county from the property
296.23owner shall be distributed to the county, city or town, and school district where the
296.24property is located in the same proportion that each taxing district's levy was to the total
296.25of the three taxing districts' levy for the current year. Any amount recovered attributable
296.26to taconite homestead credit shall be transmitted to the St. Louis County auditor to be
296.27deposited in the taconite property tax relief account. Any amount recovered that is
296.28attributable to supplemental homestead credit is to be transmitted to the commissioner of
296.29revenue for deposit in the general fund of the state treasury. The total amount of penalty
296.30collected must be deposited in the county general fund.
296.31 (j) If a property owner has applied for more than one homestead and the county
296.32assessors cannot determine which property should be classified as homestead, the county
296.33assessors will refer the information to the commissioner. The commissioner shall make
296.34the determination and notify the counties within 60 days.
296.35 (k) In addition to lists of homestead properties, the commissioner may ask the
296.36counties to furnish lists of all properties and the record owners. The Social Security
297.1numbers and federal identification numbers that are maintained by a county or city
297.2assessor for property tax administration purposes, and that may appear on the lists retain
297.3their classification as private or nonpublic data; but may be viewed, accessed, and used by
297.4the county auditor or treasurer of the same county for the limited purpose of assisting the
297.5commissioner in the preparation of microdata samples under section
297.6 (l) On or before April 30 each year beginning in 2007, each county must provide the
297.7commissioner with the following data for each parcel of homestead property by electronic
297.8means as defined in section
297.9 (i) the property identification number assigned to the parcel for purposes of taxes
297.10payable in the current year;
297.11 (ii) the name and Social Security number of each occupant of homestead property
297.12who is the property owner, property owner's spouse, qualifying relative of a property
297.13owner, or spouse of a qualifying relative;
297.14 (iii) the classification of the property under section
297.15current year and in the prior year;
297.16 (iv) an indication of whether the property was classified as a homestead for taxes
297.17payable in the current year because of occupancy by a relative of the owner or by a
297.18spouse of a relative;
297.19 (v) the property taxes payable as defined in section
297.20current year and the prior year;
297.21 (vi) the market value of improvements to the property first assessed for tax purposes
297.22for taxes payable in the current year;
297.23 (vii) the assessor's estimated market value assigned to the property for taxes payable
297.24in the current year and the prior year;
297.25 (viii) the taxable market value assigned to the property for taxes payable in the
297.26current year and the prior year;
297.27 (ix) whether there are delinquent property taxes owing on the homestead;
297.28 (x) the unique taxing district in which the property is located; and
297.29 (xi) such other information as the commissioner decides is necessary.
297.30 The commissioner shall use the information provided on the lists as appropriate
297.31under the law, including for the detection of improper claims by owners, or relatives
297.32of owners, under chapter 290A.
297.33EFFECTIVE DATE.This section is effective for taxes payable in 2013 and
297.34thereafter.
297.35 Sec. 29. Minnesota Statutes 2012, section 273.13, subdivision 21b, is amended to read:
298.1 Subd. 21b. Net tax capacity.
298.2
298.3
298.4section and taxable market values.
298.5EFFECTIVE DATE.This section is effective the day following final enactment.
298.6 Sec. 30. Minnesota Statutes 2012, section 273.1398, subdivision 3, is amended to read:
298.7 Subd. 3. Disparity reduction aid. The amount of disparity aid certified for each
298.8taxing district within each unique taxing jurisdiction for taxes payable in the prior year
298.9shall be multiplied by the ratio of (1) the jurisdiction's tax capacity using the class rates for
298.10taxes payable in the year for which aid is being computed, to (2) its tax capacity using
298.11the class rates for taxes payable in the year prior to that for which aid is being computed,
298.12both based upon taxable market values for taxes payable in the year prior to that for which
298.13aid is being computed. If the commissioner determines that insufficient information is
298.14available to reasonably and timely calculate the numerator in this ratio for the first taxes
298.15payable year that a class rate change or new class rate is effective, the commissioner shall
298.16omit the effects of that class rate change or new class rate when calculating this ratio for
298.17aid payable in that taxes payable year. For aid payable in the year following a year for
298.18which such omission was made, the commissioner shall use in the denominator for the
298.19class that was changed or created, the tax capacity for taxes payable two years prior to that
298.20in which the aid is payable, based on taxable market values for taxes payable in the year
298.21prior to that for which aid is being computed.
298.22 Sec. 31. Minnesota Statutes 2012, section 273.1398, subdivision 4, is amended to read:
298.23 Subd. 4. Disparity reduction credit. (a) Beginning with taxes payable in 1989,
298.24class 4a and class 3a property qualifies for a disparity reduction credit if: (1) the property
298.25is located in a border city that has an enterprise zone, as defined in section
298.26the property is located in a city with a population greater than 2,500 and less than 35,000
298.27according to the 1980 decennial census; (3) the city is adjacent to a city in another state or
298.28immediately adjacent to a city adjacent to a city in another state; and (4) the adjacent city
298.29in the other state has a population of greater than 5,000 and less than 75,000 according to
298.30the 1980 decennial census.
298.31 (b) The credit is an amount sufficient to reduce (i) the taxes levied on class 4a
298.32property to 2.3 percent of the property's taxable market value and (ii) the tax on class 3a
298.33property to 2.3 percent of taxable market value.
299.1 (c) The county auditor shall annually certify the costs of the credits to the
299.2Department of Revenue. The department shall reimburse local governments for the
299.3property taxes forgone as the result of the credits in proportion to their total levies.
299.4 Sec. 32. Minnesota Statutes 2012, section 275.011, subdivision 1, is amended to read:
299.5 Subdivision 1. Determination of levy limit. The property tax levied for any
299.6purpose under a special law that is not codified in Minnesota Statutes or a city charter
299.7provision and that is subject to a mill rate limitation imposed by the special law or city
299.8charter provision, excluding levies subject to mill rate limitations that use adjusted
299.9assessed values determined by the commissioner of revenue under section
299.10not exceed the following amount for the years specified:
299.11 (a) for taxes payable in 1988, the product of the applicable mill rate limitation
299.12imposed by special law or city charter provision multiplied by the total assessed valuation
299.13of all taxable property subject to the tax as adjusted by the provisions of Minnesota
299.14Statutes 1986, sections
299.15 (b) for taxes payable in 1989, the product of (1) the property tax levy limitation for
299.16the taxes payable year 1988 determined under clause (a) multiplied by (2) an index for
299.17market valuation changes equal to the assessment year 1988 total market valuation of all
299.18taxable property subject to the tax divided by the assessment year 1987 total market
299.19valuation of all taxable property subject to the tax; and
299.20 (c) for taxes payable in 1990 and subsequent years, the product of (1) the property
299.21tax levy limitation for the previous year determined pursuant to this subdivision multiplied
299.22by (2) an index for market valuation changes equal to the total market valuation of all
299.23taxable property subject to the tax for the current assessment year divided by the total
299.24market valuation of all taxable property subject to the tax for the previous assessment year.
299.25 For the purpose of determining the property tax levy limitation for the taxes payable
299.26year
299.27means the
299.28tax
299.29
299.30 as provided under section 273.032.
299.31 Sec. 33. Minnesota Statutes 2012, section 275.077, subdivision 2, is amended to read:
299.32 Subd. 2. Correction of levy amount. The difference between the correct levy and
299.33the erroneous levy shall be added to the township levy for the subsequent levy year;
299.34provided that if the amount of the difference exceeds 0.12089 percent of
300.1 market value, the excess shall be added to the township levy for the second and later
300.2subsequent levy years, not to exceed an additional levy of 0.12089 percent of
300.3 estimated market value in any year, until the full amount of the difference has been levied.
300.4The funds collected from the corrected levies shall be used to reimburse the county for the
300.5payment required by subdivision 1.
300.6 Sec. 34. Minnesota Statutes 2012, section 275.71, subdivision 4, is amended to read:
300.7 Subd. 4. Adjusted levy limit base. For taxes levied in 2008 through 2010, the
300.8adjusted levy limit base is equal to the levy limit base computed under subdivision 2
300.9or section
300.10 (1) one plus the percentage growth in the implicit price deflator, but the percentage
300.11shall not be less than zero or exceed 3.9 percent;
300.12 (2) one plus a percentage equal to 50 percent of the percentage increase in the number
300.13of households, if any, for the most recent 12-month period for which data is available; and
300.14 (3) one plus a percentage equal to 50 percent of the percentage increase in the
300.15
300.16property, as defined in section
300.17railroad property, for the most recent year for which data is available.
300.18 Sec. 35. Minnesota Statutes 2012, section 276.04, subdivision 2, is amended to read:
300.19 Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the printing
300.20of the tax statements. The commissioner of revenue shall prescribe the form of the property
300.21tax statement and its contents. The tax statement must not state or imply that property tax
300.22credits are paid by the state of Minnesota. The statement must contain a tabulated statement
300.23of the dollar amount due to each taxing authority and the amount of the state tax from the
300.24parcel of real property for which a particular tax statement is prepared. The dollar amounts
300.25attributable to the county, the state tax, the voter approved school tax, the other local school
300.26tax, the township or municipality, and the total of the metropolitan special taxing districts
300.27as defined in section
300.28The amounts due all other special taxing districts, if any, may be aggregated except that
300.29any levies made by the regional rail authorities in the county of Anoka, Carver, Dakota,
300.30Hennepin, Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate
300.31line directly under the appropriate county's levy. If the county levy under this paragraph
300.32includes an amount for a lake improvement district as defined under sections
300.33to
300.34remaining county levy amount. In the case of Ramsey County, if the county levy under this
301.1paragraph includes an amount for public library service under section
301.2attributable for that purpose may be separated from the remaining county levy amount.
301.3The amount of the tax on homesteads qualifying under the senior citizens' property tax
301.4deferral program under chapter 290B is the total amount of property tax before subtraction
301.5of the deferred property tax amount. The amount of the tax on contamination value
301.6imposed under sections
301.7amounts, including the dollar amount of any special assessments, may be rounded to the
301.8nearest even whole dollar. For purposes of this section whole odd-numbered dollars may
301.9be adjusted to the next higher even-numbered dollar. The amount of market value excluded
301.10under section
301.11 (b) The property tax statements for manufactured homes and sectional structures
301.12taxed as personal property shall contain the same information that is required on the
301.13tax statements for real property.
301.14 (c) Real and personal property tax statements must contain the following information
301.15in the order given in this paragraph. The information must contain the current year tax
301.16information in the right column with the corresponding information for the previous year
301.17in a column on the left:
301.18 (1) the property's estimated market value under section
301.19 (2) the property's homestead market value exclusion under section
301.20subdivision 35;
301.21 (3) the property's taxable market value
301.22
301.23 (4) the property's gross tax, before credits;
301.24 (5) for homestead agricultural properties, the credit under section
301.25 (6) any credits received under sections
301.27credit received under section
301.28tax relief"; and
301.29 (7) the net tax payable in the manner required in paragraph (a).
301.30 (d) If the county uses envelopes for mailing property tax statements and if the county
301.31agrees, a taxing district may include a notice with the property tax statement notifying
301.32taxpayers when the taxing district will begin its budget deliberations for the current
301.33year, and encouraging taxpayers to attend the hearings. If the county allows notices to
301.34be included in the envelope containing the property tax statement, and if more than
301.35one taxing district relative to a given property decides to include a notice with the tax
302.1statement, the county treasurer or auditor must coordinate the process and may combine
302.2the information on a single announcement.
302.3 Sec. 36. Minnesota Statutes 2012, section 276A.01, subdivision 10, is amended to read:
302.4 Subd. 10. Adjusted market value. "Adjusted market value" of real and personal
302.5property within a municipality means the
302.6as defined in section 272.03, of all real and personal property, including the value of
302.7manufactured housing, within the municipality
302.8
302.9
302.10
302.11town net tax capacities under section
302.12
302.13
302.14
302.15
302.16
302.17EFFECTIVE DATE.This section is effective the day following final enactment.
302.18 Sec. 37. Minnesota Statutes 2012, section 276A.01, subdivision 12, is amended to read:
302.19 Subd. 12. Fiscal capacity. "Fiscal capacity" of a municipality means its
302.20 adjusted market value, determined as of January 2 of any year, divided by its population,
302.21determined as of a date in the same year.
302.22 Sec. 38. Minnesota Statutes 2012, section 276A.01, subdivision 13, is amended to read:
302.23 Subd. 13. Average fiscal capacity. "Average fiscal capacity" of municipalities
302.24means the sum of the
302.25as of January 2 of any year, divided by the sum of their populations, determined as of
302.26a date in the same year.
302.27 Sec. 39. Minnesota Statutes 2012, section 276A.01, subdivision 15, is amended to read:
302.28 Subd. 15. Net tax capacity. "Net tax capacity" means the taxable market value of
302.29real and personal property multiplied by its net tax capacity rates in section
302.30 Sec. 40. Minnesota Statutes 2012, section 276A.06, subdivision 10, is amended to read:
303.1 Subd. 10. Adjustment of values
303.2computing
303.3
303.4
303.5
303.6municipality's taxable market value must be adjusted to reflect the
303.7 to net tax capacity effected by subdivision 2, clause (a), provided that
303.8the taxable market value of commercial-industrial property or any class thereof within
303.9a
303.10reduction required by this subdivision is that amount which bears the same proportion to
303.11the amount subtracted from the
303.12to subdivision 2, clause (a), as the taxable market value of commercial-industrial property,
303.13or such class thereof, located within the
303.14tax capacity of commercial-industrial property, or such class thereof, located within the
303.15
303.16
303.17
303.18
303.19
303.20
303.21
303.22
303.23to taxable market value for the increase in net tax capacity under subdivision 2, clause (b).
303.24 Sec. 41. Minnesota Statutes 2012, section 287.08, is amended to read:
303.25287.08 TAX, HOW PAYABLE; RECEIPTS.
303.26 (a) The tax imposed by sections
303.27any county in this state in which the real property or some part is located at or before
303.28the time of filing the mortgage for record. The treasurer shall endorse receipt on the
303.29mortgage and the receipt is conclusive proof that the tax has been paid in the amount
303.30stated and authorizes any county recorder or registrar of titles to record the mortgage. Its
303.31form, in substance, shall be "registration tax hereon of ..................... dollars paid." If the
303.32mortgage is exempt from taxation the endorsement shall, in substance, be "exempt from
303.33registration tax." In either case the receipt must be signed by the treasurer. In case the
303.34treasurer is unable to determine whether a claim of exemption should be allowed, the tax
303.35must be paid as in the case of a taxable mortgage. For documents submitted electronically,
304.1the endorsements and tax amount shall be affixed electronically and no signature by the
304.2treasurer will be required. The actual payment method must be arranged in advance
304.3between the submitter and the receiving county.
304.4 (b) The county treasurer may refund in whole or in part any mortgage registry tax
304.5overpayment if a written application by the taxpayer is submitted to the county treasurer
304.6within 3-1/2 years from the date of the overpayment. If the county has not issued a denial
304.7of the application, the taxpayer may bring an action in Tax Court in the county in which
304.8the tax was paid at any time after the expiration of six months from the time that the
304.9application was submitted. A denial of refund may be appealed within 60 days from
304.10the date of the denial by bringing an action in Tax Court in the county in which the tax
304.11was paid. The action is commenced by the serving of a petition for relief on the county
304.12treasurer, and by filing a copy with the court. The county attorney shall defend the action.
304.13The county treasurer shall notify the treasurer of each county that has or would receive a
304.14portion of the tax as paid.
304.15 (c) If the county treasurer determines a refund should be paid, or if a refund is
304.16ordered by the court, the county treasurer of each county that actually received a portion
304.17of the tax shall immediately pay a proportionate share of three percent of the refund
304.18using any available county funds. The county treasurer of each county that received, or
304.19would have received, a portion of the tax shall also pay their county's proportionate share
304.20of the remaining 97 percent of the court-ordered refund on or before the 20th day of the
304.21following month using solely the mortgage registry tax funds that would be paid to the
304.22commissioner of revenue on that date under section
304.23this procedure are insufficient to fully fund 97 percent of the court-ordered refund, the
304.24county treasurer of the county in which the action was brought shall file a claim with the
304.25commissioner of revenue under section
304.26the refund, and shall pay over the remaining portion upon receipt of a warrant from the
304.27state issued pursuant to the claim.
304.28 (d) When any mortgage covers real property located in more than one county in this
304.29state the total tax must be paid to the treasurer of the county where the mortgage is first
304.30presented for recording, and the payment must be receipted as provided in paragraph
304.31(a). If the principal debt or obligation secured by such a multiple county mortgage
304.32exceeds $10,000,000, the nonstate portion of the tax must be divided and paid over by
304.33the county treasurer receiving it, on or before the 20th day of each month after receipt,
304.34to the county or counties entitled in the ratio that the estimated market value of the real
304.35property covered by the mortgage in each county bears to the estimated market value of
304.36all the real property in this state described in the mortgage. In making the division and
305.1payment the county treasurer shall send a statement giving the description of the real
305.2property described in the mortgage and the estimated market value of the part located in
305.3each county. For this purpose, the treasurer of any county may require the treasurer of
305.4any other county to certify to the former the estimated market
305.5of real property in any mortgage.
305.6 (e) The mortgagor must pay the tax imposed by sections
305.7mortgagee may undertake to collect and remit the tax on behalf of the mortgagor. If the
305.8mortgagee collects money from the mortgagor to remit the tax on behalf of the mortgagor,
305.9the mortgagee has a fiduciary duty to remit the tax on behalf of the mortgagor as to the
305.10amount of the tax collected for that purpose and the mortgagor is relieved of any further
305.11obligation to pay the tax as to the amount collected by the mortgagee for this purpose.
305.12 Sec. 42. Minnesota Statutes 2012, section 287.23, subdivision 1, is amended to read:
305.13 Subdivision 1. Real property outside county. If any taxable deed or instrument
305.14describes any real property located in more than one county in this state, the total tax must
305.15be paid to the treasurer of the county where the document is first presented for recording,
305.16and the payment must be receipted as provided in section
305.17exceeds $700,000, the nonstate portion of the tax must be divided and paid over by the
305.18county treasurer receiving it, on or before the 20th day of each month after receipt, to
305.19the county or counties entitled in the ratio which the estimated market value of the real
305.20property covered by the document in each county bears to the estimated market value of
305.21all the real property in this state described in the document. In making the division and
305.22payment the county treasurer shall send a statement to the other involved counties giving
305.23the description of the real property described in the document and the estimated market
305.24value of the part located in each county. The treasurer of any county may require the
305.25treasurer of any other county to certify to the former the estimated market
305.26 of any parcel of real property for this purpose.
305.27 Sec. 43. Minnesota Statutes 2012, section 353G.08, subdivision 2, is amended to read:
305.28 Subd. 2. Cash flow funding requirement. If the executive director determines that
305.29an account in the voluntary statewide lump-sum volunteer firefighter retirement plan has
305.30insufficient assets to meet the service pensions determined payable from the account,
305.31the executive director shall certify the amount of the potential service pension shortfall
305.32to the municipality or municipalities and the municipality or municipalities shall make
305.33an additional employer contribution to the account within ten days of the certification.
305.34If more than one municipality is associated with the account, unless the municipalities
306.1agree to a different allocation, the municipalities shall allocate the additional employer
306.2contribution one-half in proportion to the population of each municipality and one-half in
306.3proportion to the estimated market value of the property of each municipality.
306.4 Sec. 44. Minnesota Statutes 2012, section 365.025, subdivision 4, is amended to read:
306.5 Subd. 4. Major purchases: notice, petition, election. Before buying anything
306.6under subdivision 2 that costs more than 0.24177 percent of the estimated market value of
306.7the town, the town must follow this subdivision.
306.8 The town must publish in its official newspaper the board's resolution to pay for the
306.9property over time. Then a petition for an election on the contract may be filed with the
306.10clerk. The petition must be filed within ten days after the resolution is published. To require
306.11the election the petition must be signed by a number of voters equal to ten percent of the
306.12voters at the last regular town election. The contract then must be approved by a majority of
306.13those voting on the question. The question may be voted on at a regular or special election.
306.14 Sec. 45. Minnesota Statutes 2012, section 366.095, subdivision 1, is amended to read:
306.15 Subdivision 1. Certificates of indebtedness. The town board may issue certificates
306.16of indebtedness within the debt limits for a town purpose otherwise authorized by law.
306.17The certificates shall be payable in not more than ten years and be issued on the terms and
306.18in the manner as the board may determine. If the amount of the certificates to be issued
306.19exceeds 0.25 percent of the estimated market value of the town, they shall not be issued
306.20for at least ten days after publication in a newspaper of general circulation in the town of
306.21the board's resolution determining to issue them. If within that time, a petition asking for
306.22an election on the proposition signed by voters equal to ten percent of the number of voters
306.23at the last regular town election is filed with the clerk, the certificates shall not be issued
306.24until their issuance has been approved by a majority of the votes cast on the question at
306.25a regular or special election. A tax levy shall be made to pay the principal and interest
306.26on the certificates as in the case of bonds.
306.27 Sec. 46. Minnesota Statutes 2012, section 366.27, is amended to read:
306.28366.27 FIREFIGHTERS' RELIEF; TAX LEVY.
306.29 The town board of any town in this state having therein a platted portion on
306.30which resides 1,200 or more people, and wherein a duly incorporated firefighters' relief
306.31association is located may each year levy a tax not to exceed 0.00806 percent of
306.32 estimated market value for the benefit of the relief association.
307.1 Sec. 47. Minnesota Statutes 2012, section 368.01, subdivision 23, is amended to read:
307.2 Subd. 23. Financing purchase of certain equipment. The town board may issue
307.3certificates of indebtedness within debt limits to purchase fire or police equipment or
307.4ambulance equipment or street construction or maintenance equipment. The certificates
307.5shall be payable in not more than five years and be issued on terms and in the manner as the
307.6board may determine. If the amount of the certificates to be issued to finance a purchase
307.7exceeds 0.24177 percent of the estimated market value of the town,
307.8
307.9newspaper of a town board resolution determining to issue them. If before the end of that
307.10time, a petition asking for an election on the proposition signed by voters equal to ten
307.11percent of the number of voters at the last regular town election is filed with the clerk, the
307.12certificates shall not be issued until the proposition of their issuance has been approved by a
307.13majority of the votes cast on the question at a regular or special election. A tax levy shall be
307.14made for the payment of the principal and interest on the certificates as in the case of bonds.
307.15 Sec. 48. Minnesota Statutes 2012, section 368.47, is amended to read:
307.16368.47 TOWNS MAY BE DISSOLVED.
307.17 (1) When the voters residing within a town have failed to elect any town officials for
307.18more than ten years continuously;
307.19 (2) when a town has failed for a period of ten years to exercise any of the powers
307.20and functions of a town;
307.21 (3) when the estimated market value of a town drops to less than $165,000;
307.22 (4) when the tax delinquency of a town, exclusive of taxes that are delinquent or
307.23unpaid because they are contested in proceedings for the enforcement of taxes, amounts to
307.2412 percent of its market value; or
307.25 (5) when the state or federal government has acquired title to 50 percent of the
307.26real estate of a town,
307.27which facts, or any of them, may be found and determined by the resolution of the county
307.28board of the county in which the town is located, according to the official records in the
307.29office of the county auditor, the county board by resolution may declare the town, naming
307.30it, dissolved and no longer entitled to exercise any of the powers or functions of a town.
307.31 In Cass, Itasca, and St. Louis Counties, before the dissolution is effective the voters
307.32of the town shall express their approval or disapproval. The town clerk shall, upon a
307.33petition signed by a majority of the registered voters of the town, filed with the clerk at
307.34least 60 days before a regular or special town election, give notice at the same time and
307.35in the same manner of the election that the question of dissolution of the town will be
308.1submitted for determination at the election. At the election the question shall be voted
308.2upon by a separate ballot, the terms of which shall be either "for dissolution" or "against
308.3dissolution." The ballot shall be deposited in a separate ballot box and the result of the
308.4voting canvassed, certified, and returned in the same manner and at the same time as
308.5other facts and returns of the election. If a majority of the votes cast at the election are
308.6for dissolution, the town shall be dissolved. If a majority of the votes cast at the election
308.7are against dissolution, the town shall not be dissolved.
308.8 When a town is dissolved under sections
308.9title to any telephone company or other business conducted by the town. The business
308.10shall be operated by the board of county commissioners until it can be sold. The
308.11subscribers or patrons of the business shall have the first opportunity of purchase. If the
308.12town has any outstanding indebtedness chargeable to the business, the county auditor shall
308.13levy a tax against the property situated in the dissolved town to pay the indebtedness
308.14as it becomes due.
308.15 Sec. 49. Minnesota Statutes 2012, section 370.01, is amended to read:
308.16370.01 CHANGE OF BOUNDARIES; CREATION OF NEW COUNTIES.
308.17 The boundaries of counties may be changed by taking territory from a county and
308.18attaching it to an adjoining county, and new counties may be established out of territory of
308.19one or more existing counties. A new county shall contain at least 400 square miles and
308.20have at least 4,000 inhabitants. A proposed new county must have a total
308.21 market value of at least 35 percent of (i) the total
308.22existing county, or (ii) the average total
308.23counties, included in the proposition. The determination of the
308.24value of a county must be made by the commissioner of revenue. An existing county shall
308.25not be reduced in area below 400 square miles, have less than 4,000 inhabitants, or have a
308.26total
308.27 No change in the boundaries of any county having an area of more than 2,500 square
308.28miles, whether by the creation of a new county, or otherwise, shall detach from the existing
308.29county any territory within 12 miles of the county seat.
308.30 Sec. 50. Minnesota Statutes 2012, section 373.40, subdivision 1, is amended to read:
308.31 Subdivision 1. Definitions. For purposes of this section, the following terms have
308.32the meanings given.
308.33 (a) "Bonds" means an obligation as defined under section
309.1 (b) "Capital improvement" means acquisition or betterment of public lands,
309.2buildings, or other improvements within the county for the purpose of a county courthouse,
309.3administrative building, health or social service facility, correctional facility, jail, law
309.4enforcement center, hospital, morgue, library, park, qualified indoor ice arena, roads and
309.5bridges, and the acquisition of development rights in the form of conservation easements
309.6under chapter 84C. An improvement must have an expected useful life of five years or
309.7more to qualify. "Capital improvement" does not include a recreation or sports facility
309.8building (such as, but not limited to, a gymnasium, ice arena, racquet sports facility,
309.9swimming pool, exercise room or health spa), unless the building is part of an outdoor
309.10park facility and is incidental to the primary purpose of outdoor recreation.
309.11 (c) "Metropolitan county" means a county located in the seven-county metropolitan
309.12area as defined in section
309.13 (d) "Population" means the population established by the most recent of the
309.14following (determined as of the date the resolution authorizing the bonds was adopted):
309.15 (1) the federal decennial census,
309.16 (2) a special census conducted under contract by the United States Bureau of the
309.17Census, or
309.18 (3) a population estimate made either by the Metropolitan Council or by the state
309.19demographer under section
309.20 (e) "Qualified indoor ice arena" means a facility that meets the requirements of
309.21section
309.22
309.23
309.24 Sec. 51. Minnesota Statutes 2012, section 373.40, subdivision 4, is amended to read:
309.25 Subd. 4. Limitations on amount. A county may not issue bonds under this section
309.26if the maximum amount of principal and interest to become due in any year on all the
309.27outstanding bonds issued pursuant to this section (including the bonds to be issued) will
309.28equal or exceed 0.12 percent of
309.29county. Calculation of the limit must be made using the
309.30the taxes payable year in which the obligations are issued and sold. This section does not
309.31limit the authority to issue bonds under any other special or general law.
309.32 Sec. 52. Minnesota Statutes 2012, section 375.167, subdivision 1, is amended to read:
309.33 Subdivision 1. Appropriations. Notwithstanding any contrary law, a county board
309.34may appropriate from the general revenue fund to any nonprofit corporation a sum not
310.1to exceed 0.00604 percent of
310.2to persons who are unable to afford private legal counsel.
310.3 Sec. 53. Minnesota Statutes 2012, section 375.18, subdivision 3, is amended to read:
310.4 Subd. 3. Courthouse. Each county board may erect, furnish, and maintain a
310.5suitable courthouse. No indebtedness shall be created for a courthouse in excess of an
310.6amount equal to a levy of 0.04030 percent of
310.7approval of a majority of the voters of the county voting on the question of issuing the
310.8obligation at an election.
310.9 Sec. 54. Minnesota Statutes 2012, section 375.555, is amended to read:
310.10375.555 FUNDING.
310.11 To implement the county emergency jobs program, the county board may expend
310.12an amount equal to what would be generated by a levy of 0.01209 percent of
310.13 estimated market value. The money to be expended may be from any available funds
310.14not otherwise earmarked.
310.15 Sec. 55. Minnesota Statutes 2012, section 383B.152, is amended to read:
310.16383B.152 BUILDING AND MAINTENANCE FUND.
310.17 The county board may by resolution levy a tax to provide money which shall be kept
310.18in a fund known as the county reserve building and maintenance fund. Money in the fund
310.19shall be used solely for the construction, maintenance, and equipping of county buildings
310.20that are constructed or maintained by the board. The levy shall not be subject to any limit
310.21fixed by any other law or by any board of tax levy or other corresponding body, but shall
310.22not exceed 0.02215 percent of
310.23chapter 475 to be levied in the year for the payment of the principal of and interest on all
310.24bonds issued pursuant to Extra Session Laws 1967, chapter 47, section 1.
310.25 Sec. 56. Minnesota Statutes 2012, section 383B.245, is amended to read:
310.26383B.245 LIBRARY LEVY.
310.27 (a) The county board may levy a tax on the taxable property within the county to
310.28acquire, better, and construct county library buildings and branches and to pay principal
310.29and interest on bonds issued for that purpose.
310.30 (b) The county board may by resolution adopted by a five-sevenths vote issue and
310.31sell general obligation bonds of the county in the manner provided in sections
311.2but the maturity years and amounts and interest rates of each series of bonds shall be
311.3fixed so that the maximum amount of principal and interest to become due in any year,
311.4on the bonds of that series and of all outstanding series issued by or for the purposes of
311.5libraries, shall not exceed an amount equal to 0.01612 percent of estimated market value
311.6of all taxable property in the county as last finally equalized before the issuance of the new
311.7series. When the tax levy authorized in this section is collected it shall be appropriated
311.8and credited to a debt service fund for the bonds in amounts required each year in lieu of a
311.9countywide tax levy for the debt service fund under section
311.10 Sec. 57. Minnesota Statutes 2012, section 383B.73, subdivision 1, is amended to read:
311.11 Subdivision 1. Levy. To provide funds for the purposes of the Three Rivers Park
311.12District as set forth in its annual budget, in lieu of the levies authorized by any other
311.13special law for such purposes, the Board of Park District Commissioners may levy taxes
311.14on all the taxable property in the county and park district at a rate not exceeding 0.03224
311.15percent of estimated market value. Notwithstanding section
311.161 of each year, after public hearing, the Board of Park District Commissioners shall adopt
311.17a budget for the ensuing year and shall determine the total amount necessary to be raised
311.18from ad valorem tax levies to meet its budget. The Board of Park District Commissioners
311.19shall submit the budget to the county board. The county board may veto or modify an item
311.20contained in the budget. If the county board determines to veto or to modify an item in the
311.21budget, it must, within 15 days after the budget was submitted by the district board, state
311.22in writing the specific reasons for its objection to the item vetoed or the reason for the
311.23modification. The Park District Board, after consideration of the county board's objections
311.24and proposed modifications, may reapprove a vetoed item or the original version of an item
311.25with respect to which a modification has been proposed, by a two-thirds majority. If the
311.26district board does not reapprove a vetoed item, the item shall be deleted from the budget.
311.27If the district board does not reapprove the original version of a modified item, the item
311.28shall be included in the budget as modified by the county board. After adoption of the final
311.29budget and no later than October 1, the superintendent of the park district shall certify to the
311.30office of the Hennepin County director of tax and public records exercising the functions
311.31of the county auditor the total amount to be raised from ad valorem tax levies to meet its
311.32budget for the ensuing year. The director of tax and public records shall add the amount of
311.33any levy certified by the district to other tax levies on the property of the county within the
311.34district for collection by the director of tax and public records with other taxes. When
312.1collected, the director shall make settlement of such taxes with the district in the same
312.2manner as other taxes are distributed to the other political subdivisions in Hennepin County.
312.3 Sec. 58. Minnesota Statutes 2012, section 383E.20, is amended to read:
312.4383E.20 BONDING FOR COUNTY LIBRARY BUILDINGS.
312.5 The Anoka County Board may, by resolution adopted by a four-sevenths vote, issue
312.6and sell general obligation bonds of the county in the manner provided in chapter 475 to
312.7acquire, better, and construct county library buildings. The bonds shall not be subject to the
312.8requirements of sections 475.57 to 475.59. The maturity years and amounts and interest
312.9rates of each series of bonds shall be fixed so that the maximum amount of principal and
312.10interest to become due in any year, on the bonds of that series and of all outstanding series
312.11issued by or for the purposes of libraries, shall not exceed an amount equal to .01 percent
312.12of the
312.13taxable property taxed by any city for the support of any free public library. When the tax
312.14levy authorized in this section is collected, it shall be appropriated and credited to a debt
312.15service fund for the bonds. The tax levy for the debt service fund under section 475.61
312.16shall be reduced by the amount available or reasonably anticipated to be available in the
312.17fund to make payments otherwise payable from the levy pursuant to section 475.61.
312.18 Sec. 59. Minnesota Statutes 2012, section 383E.23, is amended to read:
312.19383E.23 LIBRARY TAX.
312.20 The Anoka County Board may levy a tax of not more than .01 percent of the
312.21 estimated market value of taxable property located within the county excluding any
312.22taxable property taxed by any city for the support of any free public library, to acquire,
312.23better, and construct county library buildings and to pay principal and interest on bonds
312.24issued for that purpose. The tax shall be disregarded in the calculation of levies or limits
312.25on levies provided by section 373.40, or other law.
312.26 Sec. 60. Minnesota Statutes 2012, section 385.31, is amended to read:
312.27385.31 PAYMENT OF COUNTY ORDERS OR WARRANTS.
312.28 When any order or warrant drawn on the treasurer is presented for payment, if there
312.29is money in the treasury for that purpose, the county treasurer shall redeem the same, and
312.30write across the entire face thereof the word "redeemed," the date of the redemption, and
312.31the treasurer's official signature. If there is not sufficient funds in the proper accounts to
312.32pay such orders they shall be numbered and registered in their order of presentation,
313.1and proper endorsement thereof shall be made on such orders and they shall be entitled
313.2to payment in like order. Such orders shall bear interest at not to exceed the rate of six
313.3percent per annum from such date of presentment. The treasurer, as soon as there is
313.4sufficient money in the treasury, shall appropriate and set apart a sum sufficient for the
313.5payment of the orders so presented and registered, and, if entitled to interest, issue to the
313.6original holder a notice that interest will cease in 30 days from the date of such notice; and,
313.7if orders thus entitled to priority of payment are not then presented, the next in order of
313.8registry may be paid until such orders are presented. No interest shall be paid on any order,
313.9except upon a warrant drawn by the county auditor for that purpose, giving the number
313.10and the date of the order on account of which the interest warrant is drawn. In any county
313.11in this state now or hereafter having
313.12
313.13order to save payment of interest on county warrants drawn upon a fund in which there
313.14shall be temporarily insufficient money in the treasury to redeem the same, may borrow
313.15temporarily from any other fund in the county treasury in which there is a sufficient balance
313.16to care for the needs of such fund and allow a temporary loan or transfer to any other fund,
313.17and may pay such warrants out of such funds. Any such money so transferred and used in
313.18redeeming such county warrants shall be returned to the fund from which drawn as soon
313.19as money shall come in to the credit of such fund on which any such warrant was drawn
313.20and paid as aforesaid. Any county operating on a cash basis may use a combined form of
313.21warrant or order and check, which, when signed by the chair of the county board and by
313.22the auditor, is an order or warrant for the payment of the claim, and, when countersigned
313.23by the county treasurer, is a check for the payment of the amount thereof.
313.24 Sec. 61. Minnesota Statutes 2012, section 394.36, subdivision 1, is amended to read:
313.25 Subdivision 1. Continuation of nonconformity; limitations. Except as provided in
313.26subdivision 2, 3, or 4, any nonconformity, including the lawful use or occupation of land
313.27or premises existing at the time of the adoption of an official control under this chapter,
313.28may be continued, although the use or occupation does not conform to the official control.
313.29If the nonconformity or occupancy is discontinued for a period of more than one year, or
313.30any nonconforming building or structure is destroyed by fire or other peril to the extent of
313.3150 percent of its estimated market value, any subsequent use or occupancy of the land or
313.32premises shall be a conforming use or occupancy.
313.33 Sec. 62. Minnesota Statutes 2012, section 398A.04, subdivision 8, is amended to read:
314.1 Subd. 8. Taxation. Before deciding to exercise the power to tax, the authority shall
314.2give six weeks' published notice in all municipalities in the region. If a number of voters
314.3in the region equal to five percent of those who voted for candidates for governor at the
314.4last gubernatorial election present a petition within nine weeks of the first published notice
314.5to the secretary of state requesting that the matter be submitted to popular vote, it shall be
314.6submitted at the next general election. The question prepared shall be:
314.7 "Shall the regional rail authority have the power to impose a property tax?
| 314.8 |
Yes ..... |
||
| 314.9 |
No
.....
" |
314.11within the prescribed time the authority may levy a tax at any annual rate not exceeding
314.120.04835 percent of estimated market value of all taxable property situated within the
314.13municipality or municipalities named in its organization resolution. Its recording officer
314.14shall file, on or before September 15, in the office of the county auditor of each county
314.15in which territory under the jurisdiction of the authority is located a certified copy of the
314.16board of commissioners' resolution levying the tax, and each county auditor shall assess
314.17and extend upon the tax rolls of each municipality named in the organization resolution the
314.18portion of the tax that bears the same ratio to the whole amount that the net tax capacity of
314.19taxable property in that municipality bears to the net tax capacity of taxable property in
314.20all municipalities named in the organization resolution. Collections of the tax shall be
314.21remitted by each county treasurer to the treasurer of the authority. For taxes levied in 1991,
314.22the amount levied for light rail transit purposes under this subdivision shall not exceed 75
314.23percent of the amount levied in 1990 for light rail transit purposes under this subdivision.
314.24 Sec. 63. Minnesota Statutes 2012, section 401.05, subdivision 3, is amended to read:
314.25 Subd. 3. Leasing. (a) A county or joint powers board of a group of counties
314.26which acquires or constructs and equips or improves facilities under this chapter may,
314.27with the approval of the board of county commissioners of each county, enter into a
314.28lease agreement with a city situated within any of the counties, or a county housing and
314.29redevelopment authority established under chapter 469 or any special law. Under the lease
314.30agreement, the city or county housing and redevelopment authority shall:
314.31 (1) construct or acquire and equip or improve a facility in accordance with plans
314.32prepared by or at the request of a county or joint powers board of the group of counties
314.33and approved by the commissioner of corrections; and
314.34 (2) finance the facility by the issuance of revenue bonds.
315.1 (b) The county or joint powers board of a group of counties may lease the facility
315.2site, improvements, and equipment for a term upon rental sufficient to produce revenue
315.3for the prompt payment of the revenue bonds and all interest accruing on them. Upon
315.4completion of payment, the lessee shall acquire title. The real and personal property
315.5acquired for the facility constitutes a project and the lease agreement constitutes a revenue
315.6agreement as provided in sections
315.7county housing and redevelopment authority and the county or joint powers board shall be
315.8as provided in sections
315.9 (1) no tax may be imposed upon the property;
315.10 (2) the approval of the project by the commissioner of employment and economic
315.11development is not required;
315.12 (3) the Department of Corrections shall be furnished and shall record information
315.13concerning each project as it may prescribe, in lieu of reports required on other projects to
315.14the commissioner of employment and economic development;
315.15 (4) the rentals required to be paid under the lease agreement shall not exceed in any
315.16year one-tenth of one percent of the estimated market value of property within the county
315.17or group of counties as last equalized before the execution of the lease agreement;
315.18 (5) the county or group of counties shall provide for payment of all rentals due
315.19during the term of the lease agreement in the manner required in subdivision 4;
315.20 (6) no mortgage on the facilities shall be granted for the security of the bonds, but
315.21compliance with clause (5) may be enforced as a nondiscretionary duty of the county
315.22or group of counties; and
315.23 (7) the county or the joint powers board of the group of counties may sublease any
315.24part of the facilities for purposes consistent with their maintenance and operation.
315.25 Sec. 64. Minnesota Statutes 2012, section 410.32, is amended to read:
315.26410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.
315.27 (a) Notwithstanding any contrary provision of other law or charter, a home rule
315.28charter city may, by resolution and without public referendum, issue capital notes subject
315.29to the city debt limit to purchase capital equipment.
315.30 (b) For purposes of this section, "capital equipment" means:
315.31 (1) public safety equipment, ambulance and other medical equipment, road
315.32construction and maintenance equipment, and other capital equipment; and
315.33 (2) computer hardware and software, whether bundled with machinery or equipment
315.34or unbundled.
316.1 (c) The equipment or software must have an expected useful life at least as long
316.2as the term of the notes.
316.3 (d) The notes shall be payable in not more than ten years and be issued on terms
316.4and in the manner the city determines. The total principal amount of the capital notes
316.5issued in a fiscal year shall not exceed 0.03 percent of the estimated market value of
316.6taxable property in the city for that year.
316.7 (e) A tax levy shall be made for the payment of the principal and interest on the
316.8notes, in accordance with section
316.9 (f) Notes issued under this section shall require an affirmative vote of two-thirds of
316.10the governing body of the city.
316.11 (g) Notwithstanding a contrary provision of other law or charter, a home rule charter
316.12city may also issue capital notes subject to its debt limit in the manner and subject to the
316.13limitations applicable to statutory cities pursuant to section
316.14 Sec. 65. Minnesota Statutes 2012, section 412.221, subdivision 2, is amended to read:
316.15 Subd. 2. Contracts. The council shall have power to make such contracts as may
316.16be deemed necessary or desirable to make effective any power possessed by the council.
316.17The city may purchase personal property through a conditional sales contract and real
316.18property through a contract for deed under which contracts the seller is confined to the
316.19remedy of recovery of the property in case of nonpayment of all or part of the purchase
316.20price, which shall be payable over a period of not to exceed five years. When the contract
316.21price of property to be purchased by contract for deed or conditional sales contract
316.22exceeds 0.24177 percent of the estimated market value of the city, the city may not enter
316.23into such a contract for at least ten days after publication in the official newspaper of a
316.24council resolution determining to purchase property by such a contract; and, if before the
316.25end of that time a petition asking for an election on the proposition signed by voters equal
316.26to ten percent of the number of voters at the last regular city election is filed with the clerk,
316.27the city may not enter into such a contract until the proposition has been approved by a
316.28majority of the votes cast on the question at a regular or special election.
316.29 Sec. 66. Minnesota Statutes 2012, section 412.301, is amended to read:
316.30412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.
316.31 (a) The council may issue certificates of indebtedness or capital notes subject to the
316.32city debt limits to purchase capital equipment.
316.33 (b) For purposes of this section, "capital equipment" means:
317.1 (1) public safety equipment, ambulance and other medical equipment, road
317.2construction and maintenance equipment, and other capital equipment; and
317.3 (2) computer hardware and software, whether bundled with machinery or equipment
317.4or unbundled.
317.5 (c) The equipment or software must have an expected useful life at least as long as
317.6the terms of the certificates or notes.
317.7 (d) Such certificates or notes shall be payable in not more than ten years and shall be
317.8issued on such terms and in such manner as the council may determine.
317.9 (e) If the amount of the certificates or notes to be issued to finance any such purchase
317.10exceeds 0.25 percent of the estimated market value of taxable property in the city, they
317.11shall not be issued for at least ten days after publication in the official newspaper of
317.12a council resolution determining to issue them; and if before the end of that time, a
317.13petition asking for an election on the proposition signed by voters equal to ten percent
317.14of the number of voters at the last regular municipal election is filed with the clerk, such
317.15certificates or notes shall not be issued until the proposition of their issuance has been
317.16approved by a majority of the votes cast on the question at a regular or special election.
317.17 (f) A tax levy shall be made for the payment of the principal and interest on such
317.18certificates or notes, in accordance with section
317.19 Sec. 67. Minnesota Statutes 2012, section 428A.02, subdivision 1, is amended to read:
317.20 Subdivision 1. Ordinance. The governing body of a city may adopt an ordinance
317.21establishing a special service district. Only property that is classified under section
317.22and used for commercial, industrial, or public utility purposes, or is vacant land zoned or
317.23designated on a land use plan for commercial or industrial use and located in the special
317.24service district, may be subject to the charges imposed by the city on the special service
317.25district. Other types of property may be included within the boundaries of the special
317.26service district but are not subject to the levies or charges imposed by the city on the
317.27special service district. If 50 percent or more of the estimated market value of a parcel of
317.28property is classified under section
317.29or designated on a land use plan for commercial or industrial use, or public utility for the
317.30current assessment year, then the entire taxable market value of the property is subject to a
317.31service charge based on net tax capacity for purposes of sections
317.32The ordinance shall describe with particularity the area within the city to be included in
317.33the district and the special services to be furnished in the district. The ordinance may not
317.34be adopted until after a public hearing has been held on the question. Notice of the hearing
317.35shall include the time and place of hearing, a map showing the boundaries of the proposed
318.1district, and a statement that all persons owning property in the proposed district that
318.2would be subject to a service charge will be given opportunity to be heard at the hearing.
318.3Within 30 days after adoption of the ordinance under this subdivision, the governing body
318.4shall send a copy of the ordinance to the commissioner of revenue.
318.5 Sec. 68. Minnesota Statutes 2012, section 430.102, subdivision 2, is amended to read:
318.6 Subd. 2. Council approval; special tax levy limitation. The council shall receive
318.7and consider the estimate required in subdivision 1 and the items of cost after notice and
318.8hearing before it or its appropriate committee as it considers necessary or expedient, and
318.9shall approve the estimate, with necessary amendments. The amounts of each item of cost
318.10estimated are then appropriated to operate, maintain, and improve the pedestrian mall
318.11during the next fiscal year. The amount of the special tax to be charged under subdivision
318.121, clause (3), must not, however, exceed 0.12089 percent of estimated market value of
318.13taxable property in the district. The council shall make any necessary adjustment in costs of
318.14operating and maintaining the district to keep the amount of the tax within this limitation.
318.15 Sec. 69. Minnesota Statutes 2012, section 447.10, is amended to read:
318.16447.10 TAX LEVY FOR OPERATING AND MAINTAINING HOSPITAL.
318.17 The governing body of a city of the first class owning a hospital may annually levy
318.18a tax to operate and maintain the hospital. The tax must not exceed 0.00806 percent of
318.19
318.20 Sec. 70. Minnesota Statutes 2012, section 450.19, is amended to read:
318.21450.19 TOURIST CAMPING GROUNDS.
318.22 A home rule charter or statutory city or town may establish and maintain public
318.23tourist camping grounds. The governing body thereof may acquire by lease, purchase, or
318.24gift, suitable lands located either within or without the corporate limits for use as public
318.25tourist camping grounds and provide for the equipment, operation, and maintenance
318.26of the same. The amount that may be expended for the maintenance, improvement, or
318.27operation of tourist camping grounds shall not exceed, in any year, a sum equal to 0.00806
318.28percent of
318.29 Sec. 71. Minnesota Statutes 2012, section 450.25, is amended to read:
318.30450.25 MUSEUM, GALLERY, OR SCHOOL OF ARTS OR CRAFTS; TAX
318.31LEVY.
319.1 After the acquisition of any museum, gallery, or school of arts or crafts, the board
319.2of park commissioners of the city in which it is located shall cause to be included in the
319.3annual tax levy upon all the taxable property of the county in which the museum, gallery,
319.4or school of arts or crafts is located, a tax of 0.00846 percent of estimated market value.
319.5The board shall certify the levy to the county auditor and it shall be added to, and collected
319.6with and as part of, the general, real, and personal property taxes, with like penalties and
319.7interest, in case of nonpayment and default, and all provisions of law in respect to the
319.8levy, collection, and enforcement of other taxes shall, so far as applicable, be followed in
319.9respect of these taxes. All of these taxes, penalties, and interest, when collected, shall be
319.10paid to the city treasurer of the city in which is located the museum, gallery, or school
319.11of arts or crafts and credited to a fund to be known as the park museum fund, and shall
319.12be used only for the purposes specified in sections
319.13proceeds of the levy not expended for the purposes specified in section
319.14used for the erection of new buildings for the same purposes.
319.15 Sec. 72. Minnesota Statutes 2012, section 458A.10, is amended to read:
319.16458A.10 PROPERTY TAX.
319.17 The commission shall annually levy a tax not to exceed 0.12089 percent of estimated
319.18market value on all the taxable property in the transit area at a rate sufficient to produce
319.19an amount necessary for the purposes of sections
319.20payment of principal and interest due on any revenue bonds issued pursuant to section
319.22the county auditors of the transit area, extended, assessed, and collected in the manner
319.23provided by law for the property taxes levied by the governing bodies of cities. The
319.24proceeds of the taxes levied under this section shall be remitted by the respective county
319.25treasurers to the treasurer of the commission, who shall credit the same to the funds of
319.26the commission for use for the purposes of sections
319.27applicable pledges or limitations on account of tax anticipation certificates or other
319.28specific purposes. At any time after making a tax levy under this section and certifying
319.29it to the county auditors, the commission may issue general obligation certificates of
319.30indebtedness in anticipation of the collection of the taxes as provided by section
319.31 Sec. 73. Minnesota Statutes 2012, section 458A.31, subdivision 1, is amended to read:
319.32 Subdivision 1. Levy limit. Notwithstanding anything to the contrary contained in
319.33the charter of the city of Duluth, any ordinance thereof, or any statute applicable thereto,
319.34limiting the amount levied in any one year for general or special purposes, the city council
320.1of the city of Duluth shall each year levy a tax in an amount not to exceed 0.07253
320.2percent of
320.3shall take effect immediately upon its passage and approval. The proceeds of the levy
320.4shall be paid into the city treasury and deposited in the operating fund provided for in
320.5section
320.6 Sec. 74. Minnesota Statutes 2012, section 465.04, is amended to read:
320.7465.04 ACCEPTANCE OF GIFTS.
320.8 Cities of the second, third, or fourth class, having at any time
320.9 market value of not more than $41,000,000,
320.10equalized by the commissioner of revenue, either under home rule charter or under the
320.11laws of this state, in addition to all other powers possessed by them, hereby are authorized
320.12and empowered to receive and accept gifts and donations for the use and benefit of
320.13such cities and the inhabitants thereof upon terms and conditions to be approved by the
320.14governing bodies of such cities; and such cities are authorized to comply with and perform
320.15such terms and conditions, which may include payment to the donor or donors of interest
320.16on the value of the gift at not exceeding five percent per annum payable annually or
320.17semiannually, during the remainder of the natural life or lives of such donor or donors.
320.18 Sec. 75. Minnesota Statutes 2012, section 469.033, subdivision 6, is amended to read:
320.19 Subd. 6. Operation area as taxing district, special tax. All of the territory included
320.20within the area of operation of any authority shall constitute a taxing district for the
320.21purpose of levying and collecting special benefit taxes as provided in this subdivision. All
320.22of the taxable property, both real and personal, within that taxing district shall be deemed
320.23to be benefited by projects to the extent of the special taxes levied under this subdivision.
320.24Subject to the consent by resolution of the governing body of the city in and for which
320.25it was created, an authority may levy a tax upon all taxable property within that taxing
320.26district. The tax shall be extended, spread, and included with and as a part of the general
320.27taxes for state, county, and municipal purposes by the county auditor, to be collected and
320.28enforced therewith, together with the penalty, interest, and costs. As the tax, including any
320.29penalties, interest, and costs, is collected by the county treasurer it shall be accumulated
320.30and kept in a separate fund to be known as the "housing and redevelopment project fund."
320.31The money in the fund shall be turned over to the authority at the same time and in the same
320.32manner that the tax collections for the city are turned over to the city, and shall be expended
320.33only for the purposes of sections
320.34signed by the chair of the authority or an authorized representative. The amount of the
321.1levy shall be an amount approved by the governing body of the city, but shall not exceed
321.20.0185 percent of
321.3and file a budget in accordance with the budget procedure of the city in the same manner as
321.4required of executive departments of the city or, if no budgets are required to be filed, by
321.5August 1. The amount of the tax levy for the following year shall be based on that budget.
321.6 Sec. 76. Minnesota Statutes 2012, section 469.034, subdivision 2, is amended to read:
321.7 Subd. 2. General obligation revenue bonds. (a) An authority may pledge the
321.8general obligation of the general jurisdiction governmental unit as additional security for
321.9bonds payable from income or revenues of the project or the authority. The authority
321.10must find that the pledged revenues will equal or exceed 110 percent of the principal and
321.11interest due on the bonds for each year. The proceeds of the bonds must be used for a
321.12qualified housing development project or projects. The obligations must be issued and
321.13sold in the manner and following the procedures provided by chapter 475, except the
321.14obligations are not subject to approval by the electors, and the maturities may extend to
321.15not more than 35 years for obligations sold to finance housing for the elderly and 40 years
321.16for other obligations issued under this subdivision. The authority is the municipality for
321.17purposes of chapter 475.
321.18 (b) The principal amount of the issue must be approved by the governing body of
321.19the general jurisdiction governmental unit whose general obligation is pledged. Public
321.20hearings must be held on issuance of the obligations by both the authority and the general
321.21jurisdiction governmental unit. The hearings must be held at least 15 days, but not more
321.22than 120 days, before the sale of the obligations.
321.23 (c) The maximum amount of general obligation bonds that may be issued and
321.24outstanding under this section equals the greater of (1) one-half of one percent of the
321.25
321.26general obligation is pledged, or (2) $3,000,000. In the case of county or multicounty
321.27general obligation bonds, the outstanding general obligation bonds of all cities in the
321.28county or counties issued under this subdivision must be added in calculating the limit
321.29under clause (1).
321.30 (d) "General jurisdiction governmental unit" means the city in which the housing
321.31development project is located. In the case of a county or multicounty authority, the
321.32county or counties may act as the general jurisdiction governmental unit. In the case of
321.33a multicounty authority, the pledge of the general obligation is a pledge of a tax on the
321.34taxable property in each of the counties.
322.1 (e) "Qualified housing development project" means a housing development project
322.2providing housing either for the elderly or for individuals and families with incomes not
322.3greater than 80 percent of the median family income as estimated by the United States
322.4Department of Housing and Urban Development for the standard metropolitan statistical
322.5area or the nonmetropolitan county in which the project is located. The project must be
322.6owned for the term of the bonds either by the authority or by a limited partnership or other
322.7entity in which the authority or another entity under the sole control of the authority is
322.8the sole general partner and the partnership or other entity must receive (1) an allocation
322.9from the Department of Management and Budget or an entitlement issuer of tax-exempt
322.10bonding authority for the project and a preliminary determination by the Minnesota
322.11Housing Finance Agency or the applicable suballocator of tax credits that the project
322.12will qualify for four percent low-income housing tax credits or (2) a reservation of nine
322.13percent low-income housing tax credits from the Minnesota Housing Finance Agency or a
322.14suballocator of tax credits for the project. A qualified housing development project may
322.15admit nonelderly individuals and families with higher incomes if:
322.16 (1) three years have passed since initial occupancy;
322.17 (2) the authority finds the project is experiencing unanticipated vacancies resulting in
322.18insufficient revenues, because of changes in population or other unforeseen circumstances
322.19that occurred after the initial finding of adequate revenues; and
322.20 (3) the authority finds a tax levy or payment from general assets of the general
322.21jurisdiction governmental unit will be necessary to pay debt service on the bonds if higher
322.22income individuals or families are not admitted.
322.23 (f) The authority may issue bonds to refund bonds issued under this subdivision in
322.24accordance with section
322.25by paragraph (a) and the public hearing required by paragraph (b) shall not apply to the
322.26issuance of refunding bonds. This paragraph applies to refunding bonds issued on and
322.27after July 1, 1992.
322.28 Sec. 77. Minnesota Statutes 2012, section 469.053, subdivision 4, is amended to read:
322.29 Subd. 4. Mandatory city levy. A city shall, at the request of the port authority, levy
322.30a tax in any year for the benefit of the port authority. The tax must not exceed 0.01813
322.31percent of
322.32treasurer to the treasurer of the port authority, to be spent by the authority.
322.33 Sec. 78. Minnesota Statutes 2012, section 469.053, subdivision 4a, is amended to read:
323.1 Subd. 4a. Seaway port authority levy. A levy made under this subdivision shall
323.2replace the mandatory city levy under subdivision 4. A seaway port authority is a special
323.3taxing district under section
323.4seaway port authority. The tax must not exceed 0.01813 percent of
323.5 market value. The county auditor shall distribute the proceeds of the property tax levy to
323.6the seaway port authority.
323.7 Sec. 79. Minnesota Statutes 2012, section 469.053, subdivision 6, is amended to read:
323.8 Subd. 6. Discretionary city levy. Upon request of a port authority, the port
323.9authority's city may levy a tax to be spent by and for its port authority. The tax must
323.10enable the port authority to carry out efficiently and in the public interest sections
323.11to
323.12more than 0.00282 percent of
323.13pay the proceeds of the tax to the port authority treasurer. The money may be spent by
323.14the authority in performance of its duties to create and develop industrial development
323.15districts. In spending the money the authority must judge what best serves the public
323.16interest. The levy in this subdivision is in addition to the levy in subdivision 4.
323.17 Sec. 80. Minnesota Statutes 2012, section 469.107, subdivision 1, is amended to read:
323.18 Subdivision 1. City tax levy. A city may, at the request of the authority, levy a tax in
323.19any year for the benefit of the authority. The tax must be not more than 0.01813 percent of
323.20
323.21the treasurer of the authority, to be spent by the authority.
323.22 Sec. 81. Minnesota Statutes 2012, section 469.180, subdivision 2, is amended to read:
323.23 Subd. 2. Tax levies. Notwithstanding any law, the county board of any county may
323.24appropriate from the general revenue fund a sum not to exceed a county levy of 0.00080
323.25percent of
323.26 Sec. 82. Minnesota Statutes 2012, section 469.187, is amended to read:
323.27469.187 FIRST CLASS CITY SPENDING FOR PUBLICITY; PUBLICITY
323.28BOARD.
323.29 Any city of the first class may expend money for city publicity purposes. The city may
323.30levy a tax, not exceeding 0.00080 percent of
323.31of the levy shall be expended in the manner and for the city publicity purposes the council
324.1directs. The council may establish and provide for a publicity board or bureau to administer
324.2the fund, subject to the conditions and limitations the council prescribes by ordinance.
324.3 Sec. 83. Minnesota Statutes 2012, section 469.206, is amended to read:
324.4469.206 HAZARDOUS PROPERTY PENALTY.
324.5 A city may assess a penalty up to one percent of the estimated market value of
324.6real property, including any building located within the city that the city determines to
324.7be hazardous as defined in section
324.8notice to the address to which the property tax statement is sent at least 90 days before it
324.9may assess the penalty. If the owner of the property has not paid the penalty or fixed the
324.10property within 90 days after receiving notice of the penalty, the penalty is considered
324.11delinquent and is increased by 25 percent each 60 days the penalty is not paid and the
324.12property remains hazardous. For the purposes of this section, a penalty that is delinquent
324.13is considered a delinquent property tax and subject to chapters 279, 280, and 281, in the
324.14same manner as delinquent property taxes.
324.15 Sec. 84. Minnesota Statutes 2012, section 471.24, is amended to read:
324.16471.24 TOWNS, STATUTORY CITIES; JOINT MAINTENANCE OF
324.17CEMETERY.
324.18 Where a statutory city or town owns and maintains an established cemetery or burial
324.19ground, either within or without the municipal limits, the statutory city or town may, by
324.20mutual agreement with contiguous statutory cities and towns, each having
324.21 market value of not less than $2,000,000, join together in the maintenance of such public
324.22cemetery or burial ground for the use of the inhabitants of each of such municipalities; and
324.23each such municipality is hereby authorized, by action of its council or governing body,
324.24to levy a tax or make an appropriation for the annual support and maintenance of such
324.25cemetery or burial ground; provided, the amount thus appropriated by each municipality
324.26shall not exceed a total of $10,000 in any one year.
324.27 Sec. 85. Minnesota Statutes 2012, section 471.571, subdivision 1, is amended to read:
324.28 Subdivision 1. Application. This section applies to each city in which the net tax
324.29capacity of real and personal property consists in part of iron ore or lands containing
324.30taconite or semitaconite and in which the total
324.31and personal property exceeds $2,500,000.
324.32 Sec. 86. Minnesota Statutes 2012, section 471.571, subdivision 2, is amended to read:
325.1 Subd. 2. Creation of fund, tax levy. The governing body of the city may create a
325.2permanent improvement and replacement fund to be maintained by an annual tax levy.
325.3The governing body may levy a tax in excess of any charter limitation for the support of
325.4the permanent improvement and replacement fund, but not exceeding the following:
325.5 (a) in cities having a population of not more than 500 inhabitants, the lesser of $20
325.6per capita or 0.08059 percent of
325.7 (b) in cities having a population of more than 500 and less than
325.8greater of $12.50 per capita or $10,000 but not exceeding 0.08059 percent of
325.9 estimated market value;
325.10 (c) in cities having a population of
325.11the greater of $10 per capita or $31,500 but not exceeding 0.08059 percent of
325.12 estimated market value.
325.13 Sec. 87. Minnesota Statutes 2012, section 471.73, is amended to read:
325.14471.73 ACCEPTANCE OF PROVISIONS.
325.15 In the case of any city within the class specified in section
325.16estimated market value
325.17case of any statutory city within such class having
325.18
325.19class which is governed by Laws 1933, chapter 211, or Laws 1937, chapter 356; and in
325.20the case of any statutory city within such class which is governed by Laws 1929, chapter
325.21208, and has
325.22any school district within such class having
325.23
325.24sections
325.25board of the school district, or the town board of the town shall have adopted a resolution
325.26determining to issue bonds under the provisions of sections
325.27upon a cash basis in accordance with the provisions thereof.
325.28 Sec. 88. Minnesota Statutes 2012, section 473.325, subdivision 2, is amended to read:
325.29 Subd. 2. Chapter 475 applies; exceptions. The Metropolitan Council shall sell and
325.30issue the bonds in the manner provided in chapter 475, and shall have the same powers
325.31and duties as a municipality issuing bonds under that law, except that the approval of a
325.32majority of the electors shall not be required and the net debt limitations shall not apply.
325.33The terms of each series of bonds shall be fixed so that the amount of principal and interest
325.34on all outstanding and undischarged bonds, together with the bonds proposed to be issued,
326.1due in any year shall not exceed 0.01209 percent of estimated market value of all taxable
326.2property in the metropolitan area as last finally equalized prior to a proposed issue. The
326.3bonds shall be secured in accordance with section
326.4required for their payment shall be levied by the council, shall not affect the amount or rate
326.5of taxes which may be levied by the council for other purposes, shall be spread against all
326.6taxable property in the metropolitan area and shall not be subject to limitation as to rate or
326.7amount. Any taxes certified by the council to the county auditors for collection shall be
326.8reduced by the amount received by the council from the commissioner of management and
326.9budget or the federal government for the purpose of paying the principal and interest on
326.10bonds to which the levy relates. The council shall certify the fact and amount of all money
326.11so received to the county auditors, and the auditors shall reduce the levies previously made
326.12for the bonds in the manner and to the extent provided in section
326.13 Sec. 89. Minnesota Statutes 2012, section 473.629, is amended to read:
326.14473.629 VALUE OF PROPERTY FOR BOND ISSUES BY SCHOOL
326.15DISTRICTS.
326.16 As to any lands
326.17 section 473.625, notwithstanding
326.18value of
326.19
326.20
326.21properties
326.22district
326.23taxable properties for purposes of the school district's net debt limit are 33-1/3 percent of
326.24the estimated market value thereof as determined and certified by
326.25 the school district, and
326.26tenth day of October
326.27and certify that value; provided, however, that the value of
326.28
326.29all properties
326.30debt limit of the school district.
326.31 Sec. 90. Minnesota Statutes 2012, section 473.661, subdivision 3, is amended to read:
326.32 Subd. 3. Levy limit. In any budget certified by the commissioners under this section,
326.33the amount included for operation and maintenance shall not exceed an amount which,
326.34when extended against the property taxable therefor under section
327.1will require a levy at a rate of 0.00806 percent of estimated market value. Taxes levied by
327.2the corporation shall not affect the amount or rate of taxes which may be levied by any other
327.3local government unit within the metropolitan area under the provisions of any charter.
327.4 Sec. 91. Minnesota Statutes 2012, section 473.667, subdivision 9, is amended to read:
327.5 Subd. 9. Additional taxes. Nothing herein shall prevent the commission from
327.6levying a tax not to exceed 0.00121 percent of estimated market value on taxable property
327.7within its taxing jurisdiction, in addition to any levies found necessary for the debt
327.8service fund authorized by section
327.9appropriation for purposes of the commission of any other tax on property or on any
327.10income, transaction, or privilege, when and if authorized by law. All collections of any
327.11taxes so levied shall be included in the revenues appropriated for the purposes referred
327.12to in this section, unless otherwise provided in the law authorizing the levies; but no
327.13covenant as to the continuance or as to the rate and amount of any such levy shall be made
327.14with the holders of the commission's bonds unless specifically authorized by law.
327.15 Sec. 92. Minnesota Statutes 2012, section 473.671, is amended to read:
327.16473.671 LIMIT OF TAX LEVY.
327.17 The taxes levied against the property of the metropolitan area in any one year shall
327.18not exceed 0.00806 percent of
327.19to pay the principal or interest on any bonds or indebtedness of the city issued under
327.20Laws 1943, chapter 500, and exclusive of any taxes levied to pay the share of the city for
327.21payments on bonded indebtedness of the corporation provided for in Laws 1943, chapter
327.22500. The levy of taxes authorized in Laws 1943, chapter 500, shall be in addition to the
327.23maximum rate allowed to be levied to defray the cost of government under the provisions
327.24of the charter of any city affected by Laws 1943, chapter 500.
327.25 Sec. 93. Minnesota Statutes 2012, section 473.711, subdivision 2a, is amended to read:
327.26 Subd. 2a. Tax levy. (a) The commission may levy a tax on all taxable property in the
327.27district as defined in section
327.28to
327.29subdivision. A participating county may agree to levy an additional tax to be used by the
327.30commission for the purposes of sections
327.31commission's taxes may not exceed the county's proportionate share of the property tax levy
327.32limitation determined under this subdivision based on the ratio of its total net tax capacity
327.33to the total net tax capacity of the entire district as adjusted by section
328.13
328.2district to other taxes of the county for collection by the county treasurer with other taxes.
328.3When collected, the county treasurer shall make settlement of the tax with the district in
328.4the same manner as other taxes are distributed to political subdivisions. No county shall
328.5levy any tax for mosquito, disease vectoring tick, and black gnat (Simuliidae) control
328.6except under this section. The levy shall be in addition to other taxes authorized by law.
328.7 (b) The property tax levied by the Metropolitan Mosquito Control Commission shall
328.8not exceed the product of (i) the commission's property tax levy limitation for the previous
328.9year determined under this subdivision multiplied by (ii) an index for market valuation
328.10changes equal to the total estimated market
328.11current tax payable year located within the district plus any area that has been added to the
328.12district since the previous year, divided by the total estimated market
328.13taxable property located within the district for the previous taxes payable year.
328.14
328.15
328.16
328.17
328.18
328.19 Sec. 94. Minnesota Statutes 2012, section 473F.02, subdivision 12, is amended to read:
328.20 Subd. 12. Adjusted market value. "Adjusted market value" of real and personal
328.21property within a municipality means the
328.22as defined in section 272.03, of all real and personal property, including the value of
328.23manufactured housing, within the municipality, adjusted for sales ratios in a manner
328.24similar to the adjustments made to city and town net tax capacities
328.25
328.26
328.27
328.28
328.29
328.30
328.31
328.32
328.33
328.34 Sec. 95. Minnesota Statutes 2012, section 473F.02, subdivision 14, is amended to read:
329.1 Subd. 14. Fiscal capacity. "Fiscal capacity" of a municipality means its
329.2 adjusted market value, determined as of January 2 of any year, divided by its population,
329.3determined as of a date in the same year.
329.4 Sec. 96. Minnesota Statutes 2012, section 473F.02, subdivision 15, is amended to read:
329.5 Subd. 15. Average fiscal capacity. "Average fiscal capacity" of municipalities
329.6means the sum of the
329.7as of January 2 of any year, divided by the sum of their populations, determined as of
329.8a date in the same year.
329.9 Sec. 97. Minnesota Statutes 2012, section 473F.02, subdivision 23, is amended to read:
329.10 Subd. 23. Net tax capacity. "Net tax capacity" means the taxable market value of
329.11real and personal property multiplied by its net tax capacity rates in section
329.12 Sec. 98. Minnesota Statutes 2012, section 473F.08, subdivision 10, is amended to read:
329.13 Subd. 10. Adjustment of value
329.14
329.15
329.16
329.17
329.18subdivision 14, a municipality's taxable market value shall be adjusted to reflect the
329.19
329.20that
329.21or any class thereof within a
329.22
329.23which bears the same proportion to the amount subtracted from the
329.24 municipality's net tax capacity pursuant to subdivision 2, clause (a), as the taxable
329.25market value of commercial-industrial property, or such class thereof, located within the
329.26
329.27property, or such class thereof, located within the
329.28
329.29
329.30
329.31
329.32
329.33
330.1
330.2
330.3taxable market value for the increase in net tax capacity under subdivision 2, clause (b).
330.4 Sec. 99. Minnesota Statutes 2012, section 475.521, subdivision 4, is amended to read:
330.5 Subd. 4. Limitations on amount. A municipality may not issue bonds under this
330.6section if the maximum amount of principal and interest to become due in any year on
330.7all the outstanding bonds issued under this section, including the bonds to be issued,
330.8will equal or exceed 0.16 percent of the
330.9in the municipality. Calculation of the limit must be made using the
330.10 market value for the taxes payable year in which the obligations are issued and sold. In
330.11the case of a municipality with a population of 2,500 or more, the bonds are subject to
330.12the net debt limits under section
330.13than one municipality participates, upon compliance by each participating municipality
330.14with the requirements of subdivision 2, the limitations in this subdivision and the net debt
330.15represented by the bonds shall be allocated to each participating municipality in proportion
330.16to its required financial contribution to the financing of the shared facility, as set forth in
330.17the joint powers agreement relating to the shared facility. This section does not limit the
330.18authority to issue bonds under any other special or general law.
330.19 Sec. 100. Minnesota Statutes 2012, section 475.53, subdivision 1, is amended to read:
330.20 Subdivision 1. Generally. Except as otherwise provided in sections
330.22subject to a net debt in excess of three percent of the estimated market value of taxable
330.23property in the municipality.
330.24 Sec. 101. Minnesota Statutes 2012, section 475.53, subdivision 3, is amended to read:
330.25 Subd. 3. Cities first class. Unless its charter permits a greater net debt a city of
330.26the first class may not incur a net debt in excess of two percent of the estimated market
330.27value of all taxable property therein. If the charter of the city permits a net debt of the city
330.28in excess of two percent of its valuation, it may not incur a net debt in excess of 3-2/3
330.29percent of the estimated market value of the taxable property therein.
330.30 The county auditor, at the time of preparing the tax list of the city, shall compile a
330.31statement setting forth the total net tax capacity and the total estimated market value of
330.32each class of taxable property in such city for such year.
331.1 Sec. 102. Minnesota Statutes 2012, section 475.53, subdivision 4, is amended to read:
331.2 Subd. 4. School districts. Except as otherwise provided by law, no school district
331.3shall be subject to a net debt in excess of 15 percent of the
331.4all taxable property situated within its corporate limits, as computed in accordance with this
331.5subdivision. The county auditor of each county containing taxable real or personal property
331.6situated within any school district shall certify to the district upon request the estimated
331.7market value of all such property. Whenever the commissioner of revenue, in accordance
331.8with section
331.9
331.10property in the district exceeds the estimated market value of property within the district,
331.11the commissioner of revenue shall certify to the district upon request the ratio most recently
331.12ascertained to exist between
331.13 market value of property within the district
331.14
331.15
331.16the ratio certified by the commissioner of revenue
331.17 Sec. 103. Minnesota Statutes 2012, section 475.58, subdivision 2, is amended to read:
331.18 Subd. 2. Funding, refunding. Any county, city, town, or school district whose
331.19outstanding gross debt, including all items referred to in section
331.204
331.21this subdivision for the purpose of funding or refunding such indebtedness or any part
331.22thereof. A list of the items of indebtedness to be funded or refunded shall be made by the
331.23recording officer and treasurer and filed in the office of the recording officer. The initial
331.24resolution of the governing body shall refer to this subdivision as authority for the issue,
331.25state the amount of bonds to be issued and refer to the list of indebtedness to be funded or
331.26refunded. This resolution shall be published once each week for two successive weeks
331.27in a legal newspaper published in the municipality or if there be no such newspaper, in
331.28a legal newspaper published in the county seat. Such bonds may be issued without the
331.29submission of the question of their issue to the electors unless within ten days after the
331.30second publication of the resolution a petition requesting such election signed by ten or
331.31more voters who are taxpayers of the municipality, shall be filed with the recording officer.
331.32In event such petition is filed, no bonds shall be issued hereunder unless authorized by a
331.33majority of the electors voting on the question.
331.34 Sec. 104. Minnesota Statutes 2012, section 475.73, subdivision 1, is amended to read:
332.1 Subdivision 1. May purchase these bonds; conditions. Obligations sold under the
332.2provisions of section
332.3obligations meet the requirements of section
332.4the attorney general as to form and execution of the application therefor, and under rules
332.5as the board may specify, and the state board shall have authority to purchase the same
332.6to an amount not exceeding
332.7property of the municipality, according to the last preceding assessment. The obligations
332.8shall not run for a shorter period than one year, nor for a longer period than 30 years and
332.9shall bear interest at a rate to be fixed by the state board but not less than two percent per
332.10annum. Forthwith upon the delivery to the state of Minnesota of any obligations issued by
332.11virtue thereof, the commissioner of management and budget shall certify to the respective
332.12auditors of the various counties wherein are situated the municipalities issuing the same,
332.13the number, denomination, amount, rate of interest and date of maturity of each obligation.
332.14 Sec. 105. Minnesota Statutes 2012, section 477A.011, subdivision 20, is amended to
332.15read:
332.16 Subd. 20. City net tax capacity. "City net tax capacity" means
332.17
332.18
332.19
332.20
332.21
332.22
332.23
332.24
332.25
332.26
332.27
332.28
332.29
332.30 the city's adjusted net tax capacity under section 273.1325.
332.31EFFECTIVE DATE.This section is effective the day following final enactment.
332.32 Sec. 106. Minnesota Statutes 2012, section 477A.0124, subdivision 2, is amended to
332.33read:
333.1 Subd. 2. Definitions. (a) For the purposes of this section, the following terms
333.2have the meanings given them.
333.3 (b) "County program aid" means the sum of "county need aid," "county tax base
333.4equalization aid," and "county transition aid."
333.5 (c) "Age-adjusted population" means a county's population multiplied by the county
333.6age index.
333.7 (d) "County age index" means the percentage of the population over age 65 within
333.8the county divided by the percentage of the population over age 65 within the state, except
333.9that the age index for any county may not be greater than 1.8 nor less than 0.8.
333.10 (e) "Population over age 65" means the population over age 65 established as of
333.11July 15 in an aid calculation year by the most recent federal census, by a special census
333.12conducted under contract with the United States Bureau of the Census, by a population
333.13estimate made by the Metropolitan Council, or by a population estimate of the state
333.14demographer made pursuant to section
333.15date of the count or estimate for the preceding calendar year and which has been certified
333.16to the commissioner of revenue on or before July 15 of the aid calculation year. A revision
333.17to an estimate or count is effective for these purposes only if certified to the commissioner
333.18on or before July 15 of the aid calculation year. Clerical errors in the certification or use of
333.19estimates and counts established as of July 15 in the aid calculation year are subject to
333.20correction within the time periods allowed under section
333.21 (f) "Part I crimes" means the three-year average annual number of Part I crimes
333.22reported for each county by the Department of Public Safety for the most recent years
333.23available. By July 1 of each year, the commissioner of public safety shall certify to the
333.24commissioner of revenue the number of Part I crimes reported for each county for the
333.25three most recent calendar years available.
333.26 (g) "Households receiving food stamps" means the average monthly number of
333.27households receiving food stamps for the three most recent years for which data is
333.28available. By July 1 of each year, the commissioner of human services must certify to the
333.29commissioner of revenue the average monthly number of households in the state and in
333.30each county that receive food stamps, for the three most recent calendar years available.
333.31 (h) "County net tax capacity" means the
333.32
333.33adjusted net tax capacity under section 273.1325.
333.34EFFECTIVE DATE.This section is effective the day following final enactment.
333.35 Sec. 107. Minnesota Statutes 2012, section 641.23, is amended to read:
334.1641.23 FUNDS; HOW PROVIDED.
334.2 Before any contract is made for the erection of a county jail, sheriff's residence, or
334.3both, the county board shall either levy a sufficient tax to provide the necessary funds, or
334.4issue county bonds therefor in accordance with the provisions of chapter 475, provided
334.5that no election is required if the amount of all bonds issued for this purpose and interest
334.6on them which are due and payable in any year does not exceed an amount equal to
334.70.09671 percent of estimated market value of taxable property within the county, as last
334.8determined before the bonds are issued.
334.9 Sec. 108. Minnesota Statutes 2012, section 641.24, is amended to read:
334.10641.24 LEASING.
334.11 The county may, by resolution of the county board, enter into a lease agreement with
334.12any statutory or home rule charter city situated within the county, or a county housing and
334.13redevelopment authority established pursuant to chapter 469 or any special law whereby
334.14the city or county housing and redevelopment authority will construct a jail or other law
334.15enforcement facilities for the county sheriff, deputy sheriffs, and other employees of the
334.16sheriff and other law enforcement agencies, in accordance with plans prepared by or at
334.17the request of the county board and, when required, approved by the commissioner of
334.18corrections and will finance it by the issuance of revenue bonds, and the county may lease
334.19the site and improvements for a term and upon rentals sufficient to produce revenue for the
334.20prompt payment of the bonds and all interest accruing thereon and, upon completion of
334.21payment, will acquire title thereto. The real and personal property acquired for the jail
334.22shall constitute a project and the lease agreement shall constitute a revenue agreement
334.23as contemplated in chapter 469, and all proceedings shall be taken by the city or county
334.24housing and redevelopment authority and the county in the manner and with the force and
334.25effect provided in chapter 469; provided that:
334.26 (1) no tax shall be imposed upon or in lieu of a tax upon the property;
334.27 (2) the approval of the project by the commissioner of commerce shall not be required;
334.28 (3) the Department of Corrections shall be furnished and shall record such
334.29information concerning each project as it may prescribe;
334.30 (4) the rentals required to be paid under the lease agreement shall not exceed in any
334.31year one-tenth of one percent of the estimated market value of property within the county,
334.32as last finally equalized before the execution of the agreement;
334.33 (5) the county board shall provide for the payment of all rentals due during the term
334.34of the lease, in the manner required in section
335.1 (6) no mortgage on the property shall be granted for the security of the bonds, but
335.2compliance with clause (5) hereof may be enforced as a nondiscretionary duty of the
335.3county board; and
335.4 (7) the county board may sublease any part of the jail property for purposes consistent
335.5with the maintenance and operation of a county jail or other law enforcement facility.
335.6 Sec. 109. Minnesota Statutes 2012, section 645.44, is amended by adding a subdivision
335.7to read:
335.8 Subd. 20. Estimated market value. When used in determining or calculating a
335.9limit on taxation, spending, state aid amounts, or debt, bond, certificate of indebtedness, or
335.10capital note issuance by or for a local government unit, "estimated market value" has the
335.11meaning given in section 273.032.
335.12 Sec. 110. REVISOR'S INSTRUCTION.
335.13 The revisor of statutes shall recodify Minnesota Statutes, section 127A.48,
335.14subdivisions 1 to 6, as section 273.1325, subdivisions 1 to 6, and change all
335.15cross-references to the affected subdivisions accordingly.
335.16EFFECTIVE DATE.This section is effective the day following final enactment.
335.17 Sec. 111. REPEALER.
335.18Minnesota Statutes 2012, sections 276A.01, subdivision 11; 473F.02, subdivision
335.1913; and 477A.011, subdivision 21, are repealed.
335.20 Sec. 112. EFFECTIVE DATE.
335.21 Unless otherwise specifically provided, this article is effective the day following
335.22final enactment for purposes of limits on net debt, the issuance of bonds, certificates of
335.23indebtedness, and capital notes and is effective beginning for taxes payable in 2014 for
335.24all other purposes.
335.28 Section 1. Minnesota Statutes 2012, section 289A.10, is amended by adding a
335.29subdivision to read:
335.30 Subd. 1a. Recapture tax return required. If a disposition or cessation as provided
335.31by section 291.03, subdivision 11, paragraph (a), has occurred, the qualified heir, as
336.1defined under section 291.03, subdivision 8, paragraph (c), or personal representative of
336.2the decedent's estate must submit a recapture tax return to the commissioner.
336.3EFFECTIVE DATE.This section is effective for estates of decedents dying after
336.4June 30, 2011.
336.5 Sec. 2. Minnesota Statutes 2012, section 289A.12, subdivision 14, is amended to read:
336.6 Subd. 14. Regulated investment companies; reporting exempt-interest
336.7dividends. (a) A regulated investment company paying $10 or more in exempt-interest
336.8dividends to an individual who is a resident of Minnesota must make a return indicating
336.9the amount of the exempt-interest dividends, the name, address, and Social Security
336.10number of the recipient, and any other information that the commissioner specifies. The
336.11return must be provided to the shareholder by February 15 of the year following the year
336.12of the payment. The return provided to the shareholder must include a clear statement,
336.13in the form prescribed by the commissioner, that the exempt-interest dividends must be
336.14included in the computation of Minnesota taxable income. By June 1 of each year, the
336.15regulated investment company must file a copy of the return with the commissioner.
336.16
336.17
336.18
336.19 (1) "Exempt-interest dividends" mean exempt-interest dividends as defined in
336.20section 852(b)(5) of the Internal Revenue Code, but does not include the portion of
336.21exempt-interest dividends that are not required to be added to federal taxable income
336.22under section
336.23 (2) "Regulated investment company" means regulated investment company as
336.24defined in section 851(a) of the Internal Revenue Code or a fund of the regulated
336.25investment company as defined in section 851(g) of the Internal Revenue Code.
336.26EFFECTIVE DATE.This section is effective the day following final enactment.
336.27 Sec. 3. Minnesota Statutes 2012, section 289A.12, is amended by adding a subdivision
336.28to read:
336.29 Subd. 18. Returns by qualified heirs. A qualified heir, as defined in section 291.03,
336.30subdivision 8, paragraph (c), must file two returns with the commissioner attesting that
336.31no disposition or cessation as provided by section 291.03, subdivision 11, paragraph
336.32(a), occurred. The first return must be filed no earlier than 24 months and no later than
337.126 months after the decedent's death. The second return must be filed no earlier than 36
337.2months and no later than 39 months after the decedent's death.
337.3EFFECTIVE DATE.This section is effective for returns required to be filed after
337.4December 31, 2013.
337.5 Sec. 4. Minnesota Statutes 2012, section 289A.18, is amended by adding a subdivision
337.6to read:
337.7 Subd. 3a. Recapture tax return. A recapture tax return must be filed with the
337.8commissioner within six months after the date of the disposition or cessation as provided
337.9by section 291.03, subdivision 11, paragraph (a).
337.10EFFECTIVE DATE.This section is effective for estates of decedents dying after
337.11June 30, 2011.
337.12 Sec. 5. Minnesota Statutes 2012, section 289A.20, subdivision 3, is amended to read:
337.13 Subd. 3. Estate tax. Taxes imposed by
337.14 take effect at and upon the death of the person whose estate is subject to taxation and are
337.15due and payable on or before the expiration of nine months from that death.
337.16EFFECTIVE DATE.This section is effective for estates of decedents dying after
337.17June 30, 2011.
337.18 Sec. 6. Minnesota Statutes 2012, section 289A.20, is amended by adding a subdivision
337.19to read:
337.20 Subd. 3a. Recapture tax. The additional estate tax imposed by section 291.03,
337.21subdivision 11, paragraph (b), is due and payable on or before the expiration of the date
337.22provided by section 291.03, subdivision 11, paragraph (c).
337.23EFFECTIVE DATE.This section is effective for estates of decedents dying after
337.24June 30, 2011.
337.25 Sec. 7. Minnesota Statutes 2012, section 289A.26, subdivision 3, is amended to read:
337.26 Subd. 3. Short taxable year. (a) A corporation or an entity with a short taxable year
337.27of less than 12 months, but at least four months, must pay estimated tax in equal installments
337.28on or before the 15th day of the third, sixth, ninth, and final month of the short taxable
337.29year, to the extent applicable based on the number of months in the short taxable year.
338.1(b) A corporation or an entity is not required to make estimated tax payments for a
338.2short taxable year unless its tax liability before the first day of the last month of the taxable
338.3year can reasonably be expected to exceed $500.
338.4(c) No payment is required for a short taxable year of less than four months.
338.5EFFECTIVE DATE.This section is effective the day following final enactment.
338.6 Sec. 8. Minnesota Statutes 2012, section 289A.26, subdivision 4, is amended to read:
338.7 Subd. 4. Underpayment of estimated tax. If there is an underpayment of estimated
338.8tax by a corporation or an entity, there shall be added to the tax for the taxable year an
338.9amount determined at the rate in section
338.10determined under subdivision 5, for the period of the underpayment determined under
338.11subdivision 6. This subdivision does not apply in the first taxable year that a corporation is
338.12subject to the tax imposed under section
338.13under section 290.05, subdivision 3.
338.14EFFECTIVE DATE.This section is effective the day following final enactment.
338.15 Sec. 9. Minnesota Statutes 2012, section 289A.26, subdivision 7, is amended to read:
338.16 Subd. 7. Required installments. (a) Except as otherwise provided in this
338.17subdivision, the amount of a required installment is 25 percent of the required annual
338.18payment.
338.19(b) Except as otherwise provided in this subdivision, the term "required annual
338.20payment" means the lesser of:
338.21(1) 100 percent of the tax shown on the return for the taxable year, or, if no return is
338.22filed, 100 percent of the tax for that year; or
338.23(2) 100 percent of the tax shown on the return of the corporation or entity for the
338.24preceding taxable year provided the return was for a full 12-month period, showed a
338.25liability, and was filed by the corporation or entity.
338.26(c) Except for determining the first required installment for any taxable year,
338.27paragraph (b), clause (2), does not apply in the case of a large corporation. The term
338.28"large corporation" means a corporation or any predecessor corporation that had taxable
338.29net income of $1,000,000 or more for any taxable year during the testing period. The
338.30term "testing period" means the three taxable years immediately preceding the taxable
338.31year involved. A reduction allowed to a large corporation for the first installment that is
338.32allowed by applying paragraph (b), clause (2), must be recaptured by increasing the next
338.33required installment by the amount of the reduction.
339.1(d) In the case of a required installment, if the corporation or entity establishes that
339.2the annualized income installment is less than the amount determined in paragraph (a), the
339.3amount of the required installment is the annualized income installment and the recapture
339.4of previous quarters' reductions allowed by this paragraph must be recovered by increasing
339.5later required installments to the extent the reductions have not previously been recovered.
339.6(e) The "annualized income installment" is the excess, if any, of:
339.7(1) an amount equal to the applicable percentage of the tax for the taxable year
339.8computed by placing on an annualized basis the taxable income:
339.9(i) for the first two months of the taxable year, in the case of the first required
339.10installment;
339.11(ii) for the first two months or for the first five months of the taxable year, in the
339.12case of the second required installment;
339.13(iii) for the first six months or for the first eight months of the taxable year, in the
339.14case of the third required installment; and
339.15(iv) for the first nine months or for the first 11 months of the taxable year, in the
339.16case of the fourth required installment, over
339.17(2) the aggregate amount of any prior required installments for the taxable year.
339.18(3) For the purpose of this paragraph, the annualized income shall be computed
339.19by placing on an annualized basis the taxable income for the year up to the end of the
339.20month preceding the due date for the quarterly payment multiplied by 12 and dividing
339.21the resulting amount by the number of months in the taxable year (2, 5, 6, 8, 9, or 11 as
339.22the case may be) referred to in clause (1).
339.23(4) The "applicable percentage" used in clause (1) is:
| 339.24 339.25 339.26 |
For the following required installments: |
The applicable percentage is: |
||||
| 339.27 |
1st |
25 |
||||
| 339.28 |
2nd |
50 |
||||
| 339.29 |
3rd |
75 |
||||
| 339.30 |
4th |
100 |
||||
339.32be determined in the following manner:
339.33(i) take the taxable income for the months during the taxable year preceding the
339.34filing month;
339.35(ii) divide that amount by the base period percentage for the months during the
339.36taxable year preceding the filing month;
339.37(iii) determine the tax on the amount determined under item (ii); and
340.1(iv) multiply the tax computed under item (iii) by the base period percentage for the
340.2filing month and the months during the taxable year preceding the filing month.
340.3(2) For purposes of this paragraph:
340.4(i) the "base period percentage" for a period of months is the average percent that the
340.5taxable income for the corresponding months in each of the three preceding taxable years
340.6bears to the taxable income for the three preceding taxable years;
340.7(ii) the term "filing month" means the month in which the installment is required
340.8to be paid;
340.9(iii) this paragraph only applies if the base period percentage for any six consecutive
340.10months of the taxable year equals or exceeds 70 percent; and
340.11(iv) the commissioner may provide by rule for the determination of the base period
340.12percentage in the case of reorganizations, new corporations or entities, and other similar
340.13circumstances.
340.14(3) In the case of a required installment determined under this paragraph, if the
340.15 corporation or entity determines that the installment is less than the amount determined in
340.16paragraph (a), the amount of the required installment is the amount determined under this
340.17paragraph and the recapture of previous quarters' reductions allowed by this paragraph
340.18must be recovered by increasing later required installments to the extent the reductions
340.19have not previously been recovered.
340.20EFFECTIVE DATE.This section is effective the day following final enactment.
340.21 Sec. 10. Minnesota Statutes 2012, section 289A.26, subdivision 9, is amended to read:
340.22 Subd. 9. Failure to file an estimate. In the case of a corporation or an entity
340.23that fails to file an estimated tax for a taxable year when one is required, the period of
340.24the underpayment runs from the four installment dates in subdivision 2 or 3, whichever
340.25applies, to the earlier of the periods in subdivision 6, clauses (1) and (2).
340.26EFFECTIVE DATE.This section is effective the day following final enactment.
340.27 Sec. 11. Minnesota Statutes 2012, section 290.9705, subdivision 1, is amended to read:
340.28 Subdivision 1. Withholding of payments to out-of-state contractors. (a) In this
340.29section, "person" means a person, corporation, or cooperative, the state of Minnesota and
340.30its political subdivisions, and a city, county, and school district in Minnesota.
340.31(b) A person who in the regular course of business is hiring, contracting, or having a
340.32contract with a nonresident person or foreign corporation
340.33
341.1deduct and withhold eight percent of
341.2contractor
341.3EFFECTIVE DATE.This section is effective for payments made to contractors
341.4after December 31, 2013.
341.8 Section 1. Minnesota Statutes 2012, section 287.20, is amended by adding a
341.9subdivision to read:
341.10 Subd. 11. Partition. "Partition" means the division by conveyance of real property
341.11that is held jointly or in common by two or more persons into individually owned interests.
341.12If one of the co-owners gives consideration for all or a part of the individually owned
341.13interest conveyed to them, that portion of the conveyance is not a part of the partition.
341.14EFFECTIVE DATE.This section is effective the day following final enactment.
341.15 Sec. 2. Minnesota Statutes 2012, section 289A.20, subdivision 4, is amended to read:
341.16 Subd. 4. Sales and use tax. (a) The taxes imposed by chapter 297A are due and
341.17payable to the commissioner monthly on or before the 20th day of the month following
341.18the month in which the taxable event occurred, or following another reporting period
341.19as the commissioner prescribes or as allowed under section
341.20paragraph (f) or (g), except that
341.21
341.22subdivision 1
341.23
341.24
341.25
341.26
341.27
341.28
341.29
341.30
341.31
341.32
341.33
341.34
342.1
342.2
342.3
342.4
342.5
342.6
342.7
342.8
342.9
342.10
342.11
342.12
342.13
342.14
342.15 (b)
342.16during a fiscal year ending June 30 must remit the June liability for the next year in the
342.17following manner:
342.18 (1) Two business days before June 30 of the year, the vendor must remit 90 percent
342.19of the estimated June liability to the commissioner.
342.20 (2) On or before August 20 of the year, the vendor must pay any additional amount
342.21of tax not remitted in June.
342.22 (c) A vendor having a liability of:
342.23 (1) $10,000 or more, but less than $120,000 during a fiscal year ending June 30,
342.242009, and fiscal years thereafter, must remit by electronic means all liabilities on returns
342.25due for periods beginning in the subsequent calendar year on or before the 20th day of
342.26the month following the month in which the taxable event occurred, or on or before the
342.2720th day of the month following the month in which the sale is reported under section
342.29(2) $120,000 or more, during a fiscal year ending June 30, 2009, and fiscal years
342.30thereafter, must remit by electronic means all liabilities in the manner provided in
342.31paragraph (a)
342.32year, except for 90 percent of the estimated June liability, which is due two business days
342.33before June 30. The remaining amount of the June liability is due on August 20.
342.34(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's
342.35religious beliefs from paying electronically shall be allowed to remit the payment by mail.
342.36The filer must notify the commissioner of revenue of the intent to pay by mail before
343.1doing so on a form prescribed by the commissioner. No extra fee may be charged to a
343.2person making payment by mail under this paragraph. The payment must be postmarked
343.3at least two business days before the due date for making the payment in order to be
343.4considered paid on a timely basis.
343.5
343.6
343.7
343.8
343.9
343.10
343.11
343.12
343.13
343.14
343.15
343.16
343.17
343.18
343.19
343.20
343.21EFFECTIVE DATE.This section is effective the day following final enactment.
343.22 Sec. 3. Minnesota Statutes 2012, section 297A.665, is amended to read:
343.23297A.665 PRESUMPTION OF TAX; BURDEN OF PROOF.
343.24 (a) For the purpose of the proper administration of this chapter and to prevent
343.25evasion of the tax, until the contrary is established, it is presumed that:
343.26 (1) all gross receipts are subject to the tax; and
343.27 (2) all retail sales for delivery in Minnesota are for storage, use, or other consumption
343.28in Minnesota.
343.29 (b) The burden of proving that a sale is not a taxable retail sale is on the seller.
343.30However, a seller is relieved of liability if:
343.31 (1) the seller obtains a fully completed exemption certificate or all the relevant
343.32information required by section
343.3390 days after the date of the sale; or
344.1 (2) if the seller has not obtained a fully completed exemption certificate or all the
344.2relevant information required by section
344.3in clause (1), within 120 days after a request for substantiation by the commissioner,
344.4the seller either:
344.5 (i) obtains
344.6or all the relevant information required by section
344.7
344.8exemption that (A) was statutorily available on the date of the transaction, (B) could be
344.9applicable to the item for which the exemption is claimed, and (C) is reasonable for the
344.10purchaser's type of business; or
344.11 (ii) proves by other means that the transaction was not subject to tax.
344.12 (c) Notwithstanding paragraph (b), relief from liability does not apply to a seller who:
344.13 (1) fraudulently fails to collect the tax; or
344.14 (2) solicits purchasers to participate in the unlawful claim of an exemption.
344.15(d) Notwithstanding paragraph (b), relief from liability does not apply to a seller
344.16who has obtained information under paragraph (b), clause (2), if through the audit process
344.17the commissioner finds the following:
344.18(1) that at the time the information was provided the seller had knowledge or had
344.19reason to know that the information relating to the exemption was materially false; or
344.20(2) that the seller knowingly participated in activity intended to purposefully evade
344.21the sales tax due on the transaction.
344.22
344.23relieved of liability under this section to the extent a seller who is its client is relieved of
344.24liability.
344.25
344.27property was not purchased from a retailer for storage, use, or consumption in Minnesota.
344.28
344.29certificate, information, or proof required by paragraph (b), clause (2), within 120 days
344.30after the date of the commissioner's request for substantiation, then the exemptions
344.31claimed by the seller that required substantiation are disallowed.
344.32EFFECTIVE DATE.This section is effective retroactively from January 1, 2013.
344.33 Sec. 4. Minnesota Statutes 2012, section 297F.01, subdivision 23, is amended to read:
344.34 Subd. 23. Wholesale sales price. "Wholesale sales price" means the price
344.35
345.1
345.2
345.3
345.4 at which a distributor purchases a tobacco product. Wholesale sales price includes the
345.5applicable federal excise tax, freight charges, or packaging costs, regardless of whether
345.6they were included in the purchase price.
345.7EFFECTIVE DATE.This section is effective for purchases made after December
345.831, 2013.
345.9 Sec. 5. Minnesota Statutes 2012, section 297G.04, subdivision 2, is amended to read:
345.10 Subd. 2. Tax credit. A qualified brewer producing fermented malt beverages
345.11is entitled to a tax credit of $4.60 per barrel on 25,000 barrels sold in any fiscal year
345.12beginning July 1, regardless of the alcohol content of the product. Qualified brewers may
345.13take the credit on the 18th day of each month, but the total credit allowed may not exceed
345.14in any fiscal year the lesser of:
345.15(1) the liability for tax; or
345.16(2) $115,000.
345.17For purposes of this subdivision, a "qualified brewer" means a brewer, whether
345.18or not located in this state, manufacturing less than 100,000 barrels of fermented malt
345.19beverages in the calendar year immediately preceding the
345.20the credit under this subdivision is claimed. In determining the number of barrels, all
345.21brands or labels of a brewer must be combined. All facilities for the manufacture of
345.22fermented malt beverages owned or controlled by the same person, corporation, or other
345.23entity must be treated as a single brewer.
345.24EFFECTIVE DATE.This section is effective the day following final enactment.
345.25 Sec. 6. Minnesota Statutes 2012, section 297I.05, subdivision 7, is amended to read:
345.26 Subd. 7. Nonadmitted insurance premium tax. (a) A tax is imposed on surplus
345.27lines brokers. The rate of tax is equal to three percent of the gross premiums less return
345.28premiums paid by an insured whose home state is Minnesota.
345.29(b) A tax is imposed on
345.30or purchasing group as defined in section 60E.02, or any member of a purchasing group,
345.31 that
345.32equal to two percent of the gross premiums less return premiums paid by an insured
345.33whose home state is Minnesota.
346.1(c) No state other than the home state of an insured may require any premium tax
346.2payment for nonadmitted insurance. When Minnesota is the home state of the insured,
346.3as provided under section
346.4Minnesota with no allocation of the tax to other states.
346.5EFFECTIVE DATE.This section is effective for premiums received after
346.6December 31, 2013.
346.7 Sec. 7. Minnesota Statutes 2012, section 297I.05, subdivision 11, is amended to read:
346.8 Subd. 11. Retaliatory provisions. (a) If any other state or country imposes any
346.9taxes, fines, deposits, penalties, licenses, or fees upon any insurance companies of this
346.10state and their agents doing business in another state or country that are in addition to or in
346.11excess of those imposed by the laws of this state upon foreign insurance companies and
346.12their agents doing business in this state, the same taxes, fines, deposits, penalties, licenses,
346.13and fees are imposed upon every similar insurance company of that state or country and
346.14their agents doing or applying to do business in this state.
346.15(b) If any conditions precedent to the right to do business in any other state or
346.16country are imposed by the laws of that state or country, beyond those imposed upon
346.17foreign companies by the laws of this state, the same conditions precedent are imposed
346.18upon every similar insurance company of that state or country and their agents doing or
346.19applying to do business in that state.
346.20(c) For purposes of this subdivision, "taxes, fines, deposits, penalties, licenses, or
346.21fees" means an amount of money that is deposited in the general revenue fund of the state
346.22or other similar fund in another state or country and is not dedicated to a special purpose
346.23or use or money deposited in the general revenue fund of the state or other similar fund in
346.24another state or country and appropriated to the commissioner of commerce or insurance
346.25for the operation of the Department of Commerce or other similar agency with jurisdiction
346.26over insurance. Taxes, fines, deposits, penalties, licenses, or fees do not include:
346.27(1) special purpose obligations or assessments imposed in connection with particular
346.28kinds of insurance, including but not limited to assessments imposed in connection with
346.29residual market mechanisms; or
346.30(2) assessments made by the insurance guaranty association, life and health
346.31guarantee association, or similar association.
346.32(d) This subdivision applies to taxes imposed under subdivisions 1
346.33paragraph (a), clauses (1) and (2); and 14.
346.34(e) This subdivision does not apply to insurance companies organized or domiciled
346.35in a state or country, the laws of which do not impose retaliatory taxes, fines, deposits,
347.1penalties, licenses, or fees or which grant, on a reciprocal basis, exemptions from
347.2retaliatory taxes, fines, deposits, penalties, licenses, or fees to insurance companies
347.3domiciled in this state.
347.4EFFECTIVE DATE.This section is effective the day following final enactment.
347.5 Sec. 8. Minnesota Statutes 2012, section 297I.05, subdivision 12, is amended to read:
347.6 Subd. 12. Other entities. (a) A tax is imposed equal to two percent of:
347.7 (1) gross premiums less return premiums written for risks resident or located in
347.8Minnesota by a risk retention group;
347.9 (2) gross premiums less return premiums received by an attorney in fact acting
347.10in accordance with chapter 71A;
347.11 (3) gross premiums less return premiums received pursuant to assigned risk policies
347.12and contracts of coverage under chapter 79; and
347.13 (4) the direct funded premium received by the reinsurance association under section
347.15self-insure
347.16
347.17
347.18
347.19
347.20 (b) A tax is imposed on a joint self-insurance plan operating under chapter 60F. The
347.21rate of tax is equal to two percent of the total amount of claims paid during the fund year,
347.22with no deduction for claims wholly or partially reimbursed through stop-loss insurance.
347.23 (c) A tax is imposed on a joint self-insurance plan operating under chapter 62H.
347.24The rate of tax is equal to two percent of the total amount of claims paid during the
347.25fund's fiscal year, with no deduction for claims wholly or partially reimbursed through
347.26stop-loss insurance.
347.27 (d) A tax is imposed equal to the tax imposed under section
347.28on the gross premiums less return premiums on all coverages received by an accountable
347.29provider network or agents of an accountable provider network in Minnesota, in cash or
347.30otherwise, during the year.
347.31EFFECTIVE DATE.This section is effective for premiums received after
347.32December 31, 2013.
347.33 Sec. 9. Minnesota Statutes 2012, section 297I.30, subdivision 1, is amended to read:
348.1 Subdivision 1. General rule. On or before March 1, every taxpayer subject to
348.2taxation under section
348.3
348.4calendar year in the form prescribed by the commissioner.
348.5EFFECTIVE DATE.This section is effective for premiums received after
348.6December 31, 2013.
348.7 Sec. 10. Minnesota Statutes 2012, section 297I.30, subdivision 2, is amended to read:
348.8 Subd. 2. Surplus lines brokers
348.915 and August 15 of each year, every surplus lines broker subject to taxation under
348.10section
348.11
348.12
348.13ending December 31, or June 30, in the form prescribed by the commissioner.
348.14EFFECTIVE DATE.This section is effective for premiums received after
348.15December 31, 2013.
348.16 Sec. 11. REPEALER.
348.17Minnesota Statutes 2012, section 289A.60, subdivision 31, is repealed.
348.18EFFECTIVE DATE.This section is effective the day following final enactment.
348.22 Section 1. Minnesota Statutes 2012, section 123A.455, subdivision 1, is amended to
348.23read:
348.24 Subdivision 1. Definitions. "Split residential property parcel" means a parcel of
348.25real estate that is located within the boundaries of more than one school district and that
348.26is classified as residential property under:
348.27 (1) section
348.28 (2) section
348.29 (3) section
348.30EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
348.31thereafter.
349.1 Sec. 2. Minnesota Statutes 2012, section 270.077, is amended to read:
349.2270.077 TAXES CREDITED TO STATE AIRPORTS FUND.
349.3 All taxes levied under sections
349.4commissioner and credited to the state airports fund created in section
349.5EFFECTIVE DATE.This section is effective the day following final enactment.
349.6 Sec. 3. Minnesota Statutes 2012, section 270.41, subdivision 5, is amended to read:
349.7 Subd. 5. Prohibited activity. A licensed assessor or other person employed by an
349.8assessment jurisdiction or contracting with an assessment jurisdiction for the purpose
349.9of valuing or classifying property for property tax purposes is prohibited from making
349.10appraisals or analyses, accepting an appraisal assignment, or preparing an appraisal report
349.11as defined in section
349.12assessment jurisdiction where the individual is employed or performing the duties of the
349.13assessor under contract. Violation of this prohibition shall result in immediate revocation
349.14of the individual's license to assess property for property tax purposes. This prohibition
349.15must not be construed to prohibit an individual from carrying out any duties required
349.16for the proper assessment of property for property tax purposes or performing duties
349.17enumerated in section
349.18by the governing body of a governmental unit, which specifies the purposes for which
349.19such work will be done, this prohibition does not apply to appraisal activities undertaken
349.20on behalf of and at the request of the governmental unit that has employed or contracted
349.21with the individual. The resolution may only allow appraisal activities which are related to
349.22condemnations, right-of-way acquisitions, land exchanges, or special assessments.
349.23EFFECTIVE DATE.This section is effective the day following final enactment.
349.24 Sec. 4. Minnesota Statutes 2012, section 270C.34, subdivision 1, is amended to read:
349.25 Subdivision 1. Authority. (a) The commissioner may abate, reduce, or refund any
349.26penalty or interest that is imposed by a law administered by the commissioner, or imposed
349.27by section
349.28payment of tax or late filing of a return, or any part of an additional tax charge under
349.29section
349.30tax or failure to timely file the return is due to reasonable cause, or if the taxpayer is located
349.31in a presidentially declared disaster or in a presidentially declared state of emergency area
349.32or in an area declared to be in a state of emergency by the governor under section
350.1 (b) The commissioner shall abate any part of a penalty or additional tax charge
350.2under section
350.3advice given to the taxpayer in writing by an employee of the department acting in
350.4an official capacity, if the advice:
350.5 (1) was reasonably relied on and was in response to a specific written request of the
350.6taxpayer; and
350.7 (2) was not the result of failure by the taxpayer to provide adequate or accurate
350.8information.
350.9EFFECTIVE DATE.This section is effective the day following final enactment.
350.10 Sec. 5. Minnesota Statutes 2012, section 272.01, subdivision 2, is amended to read:
350.11 Subd. 2. Exempt property used by private entity for profit. (a) When any real or
350.12personal property which is exempt from ad valorem taxes, and taxes in lieu thereof, is
350.13leased, loaned, or otherwise made available and used by a private individual, association,
350.14or corporation in connection with a business conducted for profit, there shall be imposed a
350.15tax, for the privilege of so using or possessing such real or personal property, in the same
350.16amount and to the same extent as though the lessee or user was the owner of such property.
350.17 (b) The tax imposed by this subdivision shall not apply to:
350.18 (1) property leased or used as a concession in or relative to the use in whole
350.19or part of a public park, market, fairgrounds, port authority, economic development
350.20authority established under chapter 469, municipal auditorium, municipal parking facility,
350.21municipal museum, or municipal stadium;
350.22 (2) property of an airport owned by a city, town, county, or group thereof which is:
350.23 (i) leased to or used by any person or entity including a fixed base operator; and
350.24 (ii) used as a hangar for the storage or repair of aircraft or to provide aviation goods,
350.25services, or facilities to the airport or general public;
350.26the exception from taxation provided in this clause does not apply to:
350.27 (i) property located at an airport owned or operated by the Metropolitan Airports
350.28Commission or by a city of over 50,000 population according to the most recent federal
350.29census or such a city's airport authority; or
350.30 (ii) hangars leased by a private individual, association, or corporation in connection
350.31with a business conducted for profit other than an aviation-related business;
350.32 (3) property constituting or used as a public pedestrian ramp or concourse in
350.33connection with a public airport;
350.34 (4) property constituting or used as a passenger check-in area or ticket sale counter,
350.35boarding area, or luggage claim area in connection with a public airport but not the
351.1airports owned or operated by the Metropolitan Airports Commission or cities of over
351.250,000 population or an airport authority therein. Real estate owned by a municipality
351.3in connection with the operation of a public airport and leased or used for agricultural
351.4purposes is not exempt;
351.5 (5) property leased, loaned, or otherwise made available to a private individual,
351.6corporation, or association under a cooperative farming agreement made pursuant to
351.7section
351.8 (6) property leased, loaned, or otherwise made available to a private individual,
351.9corporation, or association under section
351.10 (c) Taxes imposed by this subdivision are payable as in the case of personal property
351.11taxes and shall be assessed to the lessees or users of real or personal property in the same
351.12manner as taxes assessed to owners of real or personal property, except that such taxes
351.13shall not become a lien against the property. When due, the taxes shall constitute a debt due
351.14from the lessee or user to the state, township, city, county, and school district for which the
351.15taxes were assessed and shall be collected in the same manner as personal property taxes.
351.16If property subject to the tax imposed by this subdivision is leased or used jointly by two or
351.17more persons, each lessee or user shall be jointly and severally liable for payment of the tax.
351.18 (d) The tax on real property of the federal government, the state or any of its political
351.19subdivisions that is leased
351.20association, or corporation and becomes taxable under this subdivision or other provision
351.21of law must be assessed and collected as a personal property assessment. The taxes do
351.22not become a lien against the real property.
351.23EFFECTIVE DATE.This section is effective the day following final enactment.
351.24 Sec. 6. Minnesota Statutes 2012, section 272.02, subdivision 97, is amended to read:
351.25 Subd. 97. Property used in business of mining subject to net proceeds tax. The
351.26following property used in the business of mining that is subject to the net proceeds tax
351.27under section
351.28 (1) deposits of ores, metals, and minerals and the lands in which they are contained;
351.29 (2) all real and personal property used in mining, quarrying, producing, or refining
351.30ores, minerals, or metals, including lands occupied by or used in connection with the
351.31mining, quarrying, production, or ore refining facilities; and
351.32 (3) concentrate
351.33 This exemption applies for each year that a person subject to tax under section
351.35minerals.
352.1EFFECTIVE DATE.This section is effective the day following final enactment.
352.2 Sec. 7. Minnesota Statutes 2012, section 272.03, subdivision 9, is amended to read:
352.3 Subd. 9. Person. "Person"
352.4partnership, firm, company, or corporation.
352.5EFFECTIVE DATE.This section is effective the day following final enactment.
352.6 Sec. 8. Minnesota Statutes 2012, section 273.114, subdivision 6, is amended to read:
352.7 Subd. 6. Additional taxes. (a) When real property which is being, or has been
352.8valued and assessed under this section is sold, transferred, or no longer qualifies under
352.9subdivision 2, the portion sold, transferred, or no longer qualifying shall be subject to
352.10additional taxes in the amount equal to the difference between the taxes determined in
352.11accordance with subdivision 3 and the amount determined under subdivision 4, provided
352.12that the amount determined under subdivision 4 shall not be greater than it would have
352.13been had the actual bona fide sale price of the real property at an arm's-length transaction
352.14been used in lieu of the market value determined under subdivision 4. The additional taxes
352.15shall be extended against the property on the tax list for taxes payable in the current year,
352.16provided that no interest or penalties shall be levied on the additional taxes if timely paid
352.17and provided that the additional taxes shall only be levied with respect to the current year
352.18plus two prior years that the property has been valued and assessed under this section.
352.19 (b) In the case of a sale or transfer, the additional taxes under paragraph (a) shall not
352.20be extended against the property if the new owner submits a successful application under
352.21this section by the later of May 1 of the current year or 30 days after the sale or transfer.
352.22 (c) For the purposes of this section, the following events do not constitute a sale or
352.23transfer for property that qualified under subdivision 2 prior to the event:
352.24 (1) death of a property owner when the surviving owners retain ownership of the
352.25property;
352.26 (2) divorce of a married couple when one of the spouses retains ownership of the
352.27property;
352.28 (3) marriage of a single property owner when that owner retains ownership of the
352.29property in whole or in part;
352.30 (4) the organization or reorganization of a farm ownership entity that is not prohibited
352.31from owning agricultural land in this state under section 500.24, if all owners maintain the
352.32same beneficial interest both before and after the organization or reorganization; and
353.1 (5) transfer of the property to a trust or trustee, provided that the individual owners
353.2of the property are the grantors of the trust and they maintain the same beneficial interest
353.3both before and after placement of the property in trust.
353.4EFFECTIVE DATE.This section is effective the day following final enactment.
353.5 Sec. 9. Minnesota Statutes 2012, section 273.13, subdivision 23, is amended to read:
353.6 Subd. 23. Class 2. (a) An agricultural homestead consists of class 2a agricultural
353.7land that is homesteaded, along with any class 2b rural vacant land that is contiguous to
353.8the class 2a land under the same ownership. The market value of the house and garage
353.9and immediately surrounding one acre of land has the same class rates as class 1a or 1b
353.10property under subdivision 22. The value of the remaining land including improvements
353.11up to the first tier valuation limit of agricultural homestead property has a net class rate
353.12of 0.5 percent of market value. The remaining property over the first tier has a class rate
353.13of one percent of market value. For purposes of this subdivision, the "first tier valuation
353.14limit of agricultural homestead property" and "first tier" means the limit certified under
353.15section
353.16 (b) Class 2a agricultural land consists of parcels of property, or portions thereof, that
353.17are agricultural land and buildings. Class 2a property has a net class rate of one percent of
353.18market value, unless it is part of an agricultural homestead under paragraph (a). Class 2a
353.19property must also include any property that would otherwise be classified as 2b, but is
353.20interspersed with class 2a property, including but not limited to sloughs, wooded wind
353.21shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback requirement,
353.22and other similar land that is impractical for the assessor to value separately from the rest of
353.23the property or that is unlikely to be able to be sold separately from the rest of the property.
353.24 An assessor may classify the part of a parcel described in this subdivision that is used
353.25for agricultural purposes as class 2a and the remainder in the class appropriate to its use.
353.26 (c) Class 2b rural vacant land consists of parcels of property, or portions thereof,
353.27that are unplatted real estate, rural in character and not used for agricultural purposes,
353.28including land used for growing trees for timber, lumber, and wood and wood products,
353.29that is not improved with a structure. The presence of a minor, ancillary nonresidential
353.30structure as defined by the commissioner of revenue does not disqualify the property from
353.31classification under this paragraph. Any parcel of 20 acres or more improved with a
353.32structure that is not a minor, ancillary nonresidential structure must be split-classified, and
353.33ten acres must be assigned to the split parcel containing the structure. Class 2b property
353.34has a net class rate of one percent of market value unless it is part of an agricultural
353.35homestead under paragraph (a), or qualifies as class 2c under paragraph (d).
354.1 (d) Class 2c managed forest land consists of no less than 20 and no more than 1,920
354.2acres statewide per taxpayer that is being managed under a forest management plan that
354.3meets the requirements of chapter 290C, but is not enrolled in the sustainable forest
354.4resource management incentive program. It has a class rate of .65 percent, provided that
354.5the owner of the property must apply to the assessor in order for the property to initially
354.6qualify for the reduced rate and provide the information required by the assessor to verify
354.7that the property qualifies for the reduced rate. If the assessor receives the application
354.8and information before May 1 in an assessment year, the property qualifies beginning
354.9with that assessment year. If the assessor receives the application and information after
354.10April 30 in an assessment year, the property may not qualify until the next assessment
354.11year. The commissioner of natural resources must concur that the land is qualified. The
354.12commissioner of natural resources shall annually provide county assessors verification
354.13information on a timely basis. The presence of a minor, ancillary nonresidential structure
354.14as defined by the commissioner of revenue does not disqualify the property from
354.15classification under this paragraph.
354.16 (e) Agricultural land as used in this section means:
354.17 (1) contiguous acreage of ten acres or more, used during the preceding year for
354.18agricultural purposes
354.19 (2) contiguous acreage used during the preceding year for an intensive livestock or
354.20poultry confinement operation, provided that land used only for pasturing or grazing
354.21does not qualify under this clause.
354.22 "Agricultural purposes" as used in this section means the raising, cultivation, drying,
354.23or storage of agricultural products for sale, or the storage of machinery or equipment
354.24used in support of agricultural production by the same farm entity. For a property to be
354.25classified as agricultural based only on the drying or storage of agricultural products,
354.26the products being dried or stored must have been produced by the same farm entity as
354.27the entity operating the drying or storage facility. "Agricultural purposes" also includes
354.28enrollment in the Reinvest in Minnesota program under sections
354.29the federal Conservation Reserve Program as contained in Public Law 99-198 or a similar
354.30state or federal conservation program if the property was classified as agricultural (i)
354.31under this subdivision for
354.32enrollment in a qualifying program and the land remains enrolled or (ii) in the year prior
354.33to its enrollment. Agricultural classification shall not be based upon the market value of
354.34any residential structures on the parcel or contiguous parcels under the same ownership.
355.1 "Contiguous acreage," for purposes of this paragraph, means all of, or a contiguous
355.2portion of, a tax parcel as described in section 272.193, or all of, or a contiguous portion
355.3of, a set of contiguous tax parcels under that section that are owned by the same person.
355.4 (f)
355.5 (1) contiguous acreage that is less than ten acres
355.6
355.7
355.8
355.9 (2) contiguous acreage that contains a residence and is less than 11 acres in size, if
355.10the contiguous acreage exclusive of the house, garage, and surrounding one acre of land
355.11was used in the preceding year for one or more of the following three uses:
355.12 (i) for an intensive grain drying or storage
355.13machinery or equipment storage
355.14agricultural activities on other parcels of property operated by the same farming entity;
355.15 (ii) as a nursery, provided that only those acres used intensively to produce nursery
355.16stock are considered agricultural land; or
355.17
355.18
355.19
355.20farming" means the cultivation of one or more fruits or vegetables or production of animal
355.21or other agricultural products for sale to local markets by the farmer or an organization
355.22with which the farmer is affiliated.
355.23 "Contiguous acreage," for purposes of this paragraph, means all of a tax parcel as
355.24described in section 272.193, or all of a set of contiguous tax parcels under that section
355.25that are owned by the same person.
355.26 (g) Land shall be classified as agricultural even if all or a portion of the agricultural
355.27use of that property is the leasing to, or use by another person for agricultural purposes.
355.28 Classification under this subdivision is not determinative for qualifying under
355.29section
355.30 (h) The property classification under this section supersedes, for property tax
355.31purposes only, any locally administered agricultural policies or land use restrictions that
355.32define minimum or maximum farm acreage.
355.33 (i) The term "agricultural products" as used in this subdivision includes production
355.34for sale of:
356.1 (1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing
356.2animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains,
356.3bees, and apiary products by the owner;
356.4 (2) fish bred for sale and consumption if the fish breeding occurs on land zoned
356.5for agricultural use;
356.6 (3) the commercial boarding of horses, which may include related horse training and
356.7riding instruction, if the boarding is done on property that is also used for raising pasture
356.8to graze horses or raising or cultivating other agricultural products as defined in clause (1);
356.9 (4) property which is owned and operated by nonprofit organizations used for
356.10equestrian activities, excluding racing;
356.11 (5) game birds and waterfowl bred and raised (i) on a game farm licensed under
356.12section
356.13Resources, which must be submitted annually by March 30 to the assessor, indicates
356.14that at least 500 birds were raised or used for breeding stock on the property during the
356.15preceding year and that the owner provides a copy of the owner's most recent schedule F;
356.16or (ii) for use on a shooting preserve licensed under section
356.17 (6) insects primarily bred to be used as food for animals;
356.18 (7) trees, grown for sale as a crop, including short rotation woody crops, and not
356.19sold for timber, lumber, wood, or wood products; and
356.20 (8) maple syrup taken from trees grown by a person licensed by the Minnesota
356.21Department of Agriculture under chapter 28A as a food processor.
356.22 (j) If a parcel used for agricultural purposes is also used for commercial or industrial
356.23purposes, including but not limited to:
356.24 (1) wholesale and retail sales;
356.25 (2) processing of raw agricultural products or other goods;
356.26 (3) warehousing or storage of processed goods; and
356.27 (4) office facilities for the support of the activities enumerated in clauses (1), (2),
356.28and (3),
356.29the assessor shall classify the part of the parcel used for agricultural purposes as class
356.301b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its
356.31use. The grading, sorting, and packaging of raw agricultural products for first sale is
356.32considered an agricultural purpose. A greenhouse or other building where horticultural
356.33or nursery products are grown that is also used for the conduct of retail sales must be
356.34classified as agricultural if it is primarily used for the growing of horticultural or nursery
356.35products from seed, cuttings, or roots and occasionally as a showroom for the retail sale of
357.1those products. Use of a greenhouse or building only for the display of already grown
357.2horticultural or nursery products does not qualify as an agricultural purpose.
357.3 (k) The assessor shall determine and list separately on the records the market value
357.4of the homestead dwelling and the one acre of land on which that dwelling is located. If
357.5any farm buildings or structures are located on this homesteaded acre of land, their market
357.6value shall not be included in this separate determination.
357.7 (l) Class 2d airport landing area consists of a landing area or public access area of
357.8a privately owned public use airport. It has a class rate of one percent of market value.
357.9To qualify for classification under this paragraph, a privately owned public use airport
357.10must be licensed as a public airport under section
357.11"landing area" means that part of a privately owned public use airport properly cleared,
357.12regularly maintained, and made available to the public for use by aircraft and includes
357.13runways, taxiways, aprons, and sites upon which are situated landing or navigational aids.
357.14A landing area also includes land underlying both the primary surface and the approach
357.15surfaces that comply with all of the following:
357.16 (i) the land is properly cleared and regularly maintained for the primary purposes of
357.17the landing, taking off, and taxiing of aircraft; but that portion of the land that contains
357.18facilities for servicing, repair, or maintenance of aircraft is not included as a landing area;
357.19 (ii) the land is part of the airport property; and
357.20 (iii) the land is not used for commercial or residential purposes.
357.21The land contained in a landing area under this paragraph must be described and certified
357.22by the commissioner of transportation. The certification is effective until it is modified,
357.23or until the airport or landing area no longer meets the requirements of this paragraph.
357.24For purposes of this paragraph, "public access area" means property used as an aircraft
357.25parking ramp, apron, or storage hangar, or an arrival and departure building in connection
357.26with the airport.
357.27 (m) Class 2e consists of land with a commercial aggregate deposit that is not actively
357.28being mined and is not otherwise classified as class 2a or 2b, provided that the land is not
357.29located in a county that has elected to opt-out of the aggregate preservation program as
357.30provided in section
357.31value. To qualify for classification under this paragraph, the property must be at least
357.32ten contiguous acres in size and the owner of the property must record with the county
357.33recorder of the county in which the property is located an affidavit containing:
357.34 (1) a legal description of the property;
357.35 (2) a disclosure that the property contains a commercial aggregate deposit that is not
357.36actively being mined but is present on the entire parcel enrolled;
358.1 (3) documentation that the conditional use under the county or local zoning
358.2ordinance of this property is for mining; and
358.3 (4) documentation that a permit has been issued by the local unit of government
358.4or the mining activity is allowed under local ordinance. The disclosure must include a
358.5statement from a registered professional geologist, engineer, or soil scientist delineating
358.6the deposit and certifying that it is a commercial aggregate deposit.
358.7 For purposes of this section and section
358.8means a deposit that will yield crushed stone or sand and gravel that is suitable for use
358.9as a construction aggregate; and "actively mined" means the removal of top soil and
358.10overburden in preparation for excavation or excavation of a commercial deposit.
358.11 (n) When any portion of the property under this subdivision or subdivision 22 begins
358.12to be actively mined, the owner must file a supplemental affidavit within 60 days from
358.13the day any aggregate is removed stating the number of acres of the property that is
358.14actively being mined. The acres actively being mined must be (1) valued and classified
358.15under subdivision 24 in the next subsequent assessment year, and (2) removed from the
358.16aggregate resource preservation property tax program under section
358.17land was enrolled in that program. Copies of the original affidavit and all supplemental
358.18affidavits must be filed with the county assessor, the local zoning administrator, and the
358.19Department of Natural Resources, Division of Land and Minerals. A supplemental
358.20affidavit must be filed each time a subsequent portion of the property is actively mined,
358.21provided that the minimum acreage change is five acres, even if the actual mining activity
358.22constitutes less than five acres.
358.23 (o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are
358.24not rules and are exempt from the rulemaking provisions of chapter 14, and the provisions
358.25in section
358.26EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
358.27thereafter.
358.28 Sec. 10. Minnesota Statutes 2012, section 273.19, subdivision 1, is amended to read:
358.29 Subdivision 1. Tax-exempt property; lease. Except as provided in subdivision 3 or
358.304, tax-exempt property held under a lease for a term of at least one year, and not taxable
358.31under section
358.32considered, for all purposes of taxation, as the property of the person holding it. In this
358.33subdivision, "tax-exempt property" means property owned by the United States, the state
358.34 or any of its political subdivisions, a school, or any religious, scientific, or benevolent
358.35society or institution, incorporated or unincorporated, or any corporation whose property
359.1is not taxed in the same manner as other property. This subdivision does not apply to
359.2property exempt from taxation under section
359.3(2), (3), and (4), or to property exempt from taxation under section
359.4EFFECTIVE DATE.This section is effective the day following final enactment.
359.5 Sec. 11. Minnesota Statutes 2012, section 273.372, subdivision 4, is amended to read:
359.6 Subd. 4. Administrative appeals. (a) Companies that submit the reports under
359.7section
359.8the commissioner in an extension, may appeal administratively to the commissioner prior
359.9to bringing an action in court
359.10 (b) Companies that must submit reports under section 270.82 must submit a written
359.11request
359.12commissioner's valuation certification or notice to the company, or by
359.13whichever is earlier.
359.14 (c) Companies that submit reports under section 273.371 must submit a written
359.15request to the commissioner for a conference within ten days after the date of the
359.16commissioner's valuation certification or notice to the company, or by July 1, whichever
359.17is earlier.
359.18 (d) The commissioner shall conduct the conference upon the commissioner's entire
359.19files and records and such further information as may be offered. The conference must
359.20be held no later than 20 days after the date of the commissioner's valuation certification
359.21or notice to the company, or by the date specified by the commissioner in an extension.
359.22Within 60 days after the conference the commissioner shall make a final determination of
359.23the matter and shall notify the company promptly of the determination. The conference
359.24is not a contested case hearing.
359.25
359.26commissioner shall also provide the railroad and utility companies the opportunity to
359.27discuss any questions or concerns relating to the values established by the commissioner
359.28through certification or notice in a less formal manner. This does not change or modify
359.29the deadline for requesting a conference under paragraph (a), the deadline in section
359.31appealing property taxes in court.
359.32EFFECTIVE DATE.This section is effective beginning with assessment year 2014.
359.33 Sec. 12. Minnesota Statutes 2012, section 273.39, is amended to read:
360.1273.39 RURAL AREA.
360.2 As used in sections
360.3any area of the state not included within the boundaries of any
360.4city or home rule charter city, and such term shall be deemed to include both farm and
360.5nonfarm population thereof.
360.6EFFECTIVE DATE.This section is effective the day following final enactment.
360.7 Sec. 13. Minnesota Statutes 2012, section 279.06, subdivision 1, is amended to read:
360.8 Subdivision 1. List and notice. Within five days after the filing of such list, the
360.9court administrator shall return a copy thereof to the county auditor, with a notice prepared
360.10and signed by the court administrator, and attached thereto, which may be substantially in
360.11the following form:
| 360.12 |
State of Minnesota |
) |
||
| 360.13 |
) ss. |
|||
| 360.14 |
County of ..... |
) |
||
| 360.15 |
District Court |
|||
| 360.16 |
.....
Judicial District. |
360.18any estate, right, title, or interest in, claim to, or lien upon, any of the several parcels of
360.19land described in the list hereto attached:
360.20 The list of taxes and penalties on real property for the county of ...............................
360.21remaining delinquent on the first Monday in January, ......., has been filed in the office of
360.22the court administrator of the district court of said county, of which that hereto attached is a
360.23copy. Therefore, you, and each of you, are hereby required to file in the office of said court
360.24administrator, on or before the 20th day after the publication of this notice and list, your
360.25answer, in writing, setting forth any objection or defense you may have to the taxes, or any
360.26part thereof, upon any parcel of land described in the list, in, to, or on which you have or
360.27claim any estate, right, title, interest, claim, or lien, and, in default thereof, judgment will
360.28be entered against such parcel of land for the taxes on such list appearing against it, and
360.29for all penalties, interest, and costs. Based upon said judgment, the land shall be sold to
360.30the state of Minnesota on the second Monday in May, .......
360.31
360.32
360.33
360.34
360.35
361.1
361.2
361.3
361.4
361.5
361.6
361.7
361.8
361.9
361.10 Inquiries as to the proceedings set forth above can be made to the county auditor of
361.11..... county whose address is ......
| 361.12 |
(Signed)
.....
, |
|
| 361.13 361.14 |
Court Administrator of the District Court of the County of ..... |
|
| 361.15 |
(Here insert list.) |
361.17specified in sections 281.17, 281.173, and 281.174, in the manner prescribed by the
361.18commissioner of revenue under subdivision 2.
361.19 The list referred to in the notice shall be substantially in the following form:
361.20 List of real property for the county of ......................., on which taxes remain
361.21delinquent on the first Monday in January, .......
361.23Township (40), Range (20),
362.20 As to platted property, the form of heading shall conform to circumstances and be
362.21substantially in the following form:
362.23Brown's Addition, or Subdivision
362.40 The names, descriptions, and figures employed in parentheses in the above forms are
362.41merely for purposes of illustration.
362.42 The name of the town, township, range or city, and addition or subdivision, as the
362.43case may be, shall be repeated at the head of each column of the printed lists as brought
362.44forward from the preceding column.
362.45 Errors in the list shall not be deemed to be a material defect to affect the validity
362.46of the judgment and sale.
363.1EFFECTIVE DATE.This section is effective for lists and notices required after
363.2December 31, 2013.
363.3 Sec. 14. Minnesota Statutes 2012, section 290B.04, subdivision 2, is amended to read:
363.4 Subd. 2. Approval; recording. The commissioner shall approve all initial
363.5applications that qualify under this chapter and shall notify qualifying homeowners on or
363.6before December 1. The commissioner may investigate the facts or require confirmation
363.7in regard to an application. The commissioner shall record or file a notice of qualification
363.8for deferral, including the names of the qualifying homeowners and a legal description
363.9of the property, in the office of the county recorder, or registrar of titles, whichever is
363.10applicable, in the county where the qualifying property is located. The notice must state
363.11that it serves as a notice of lien and that it includes deferrals under this section for future
363.12years. The commissioner shall prescribe the form of the notice. Execution of the notice
363.13by the original or facsimile signature of the commissioner or a delegate entitles them to
363.14be recorded, and no other attestation, certification, or acknowledgment is necessary. The
363.15homeowner shall pay the recording or filing fees for the notice, which, notwithstanding
363.16section
363.17EFFECTIVE DATE.This section is effective for notices that are both executed
363.18and recorded after June 30, 2013.
363.19 Sec. 15. Minnesota Statutes 2012, section 298.01, subdivision 3, is amended to read:
363.20 Subd. 3. Occupation tax; other ores. Every person engaged in the business of
363.21mining, refining, or producing ores, metals, or minerals in this state, except iron ore or
363.22taconite concentrates, shall pay an occupation tax to the state of Minnesota as provided
363.23in this subdivision. For purposes of this subdivision, mining includes the application of
363.24hydrometallurgical processes. Hydrometallurgical processes are processes that extract
363.25the ores, metals, or minerals, by use of aqueous solutions that leach, concentrate, and
363.26recover the ore, metal, or mineral. The tax is determined in the same manner as the tax
363.27imposed by section
363.28subdivision 4
363.29be computed by applying to taxable income the rate of 2.45 percent. A person subject
363.30to occupation tax under this section shall apportion its net income on the basis of the
363.31percentage obtained by taking the sum of:
363.32 (1) 75 percent of the percentage which the sales made within this state in connection
363.33with the trade or business during the tax period are of the total sales wherever made in
363.34connection with the trade or business during the tax period;
364.1 (2) 12.5 percent of the percentage which the total tangible property used by the
364.2taxpayer in this state in connection with the trade or business during the tax period is of
364.3the total tangible property, wherever located, used by the taxpayer in connection with the
364.4trade or business during the tax period; and
364.5 (3) 12.5 percent of the percentage which the taxpayer's total payrolls paid or incurred
364.6in this state or paid in respect to labor performed in this state in connection with the trade
364.7or business during the tax period are of the taxpayer's total payrolls paid or incurred in
364.8connection with the trade or business during the tax period.
364.9 The tax is in addition to all other taxes.
364.10EFFECTIVE DATE.This section is effective the day following final enactment.
364.11 Sec. 16. Minnesota Statutes 2012, section 298.018, is amended to read:
364.12298.018 DISTRIBUTION OF PROCEEDS.
364.13 Subdivision 1. Within taconite assistance area. The proceeds of the tax paid
364.14under sections
364.15 mined or extracted within the taconite assistance area defined in section
364.16be allocated as follows:
364.17 (1) five percent to the city or town within which the minerals or energy resources
364.18are mined or extracted;
364.19 (2) ten percent to the taconite municipal aid account to be distributed as provided
364.20in section
364.21 (3) ten percent to the school district within which the minerals or energy resources
364.22are mined or extracted;
364.23 (4) 20 percent to a group of school districts comprised of those school districts
364.24wherein the mineral or energy resource was mined or extracted or in which there is a
364.25qualifying municipality as defined by section
364.26to school district indexes as follows: for each school district, its pupil units determined
364.27under section
364.28average adjusted net tax capacity per pupil unit for school districts receiving aid under
364.29this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year
364.30ending prior to distribution to the adjusted net tax capacity per pupil unit of the district.
364.31Each district shall receive that portion of the distribution which its index bears to the sum
364.32of the indices for all school districts that receive the distributions;
364.33 (5) 20 percent to the county within which the minerals or energy resources are
364.34mined or extracted;
365.1 (6) 20 percent to St. Louis County acting as the counties' fiscal agent to be
365.2distributed as provided in sections
365.3 (7) five percent to the Iron Range Resources and Rehabilitation Board for the
365.4purposes of section
365.5 (8) five percent to the Douglas J. Johnson economic protection trust fund; and
365.6 (9) five percent to the taconite environmental protection fund.
365.7 The proceeds of the tax shall be distributed on July 15 each year.
365.8 Subd. 2. Outside taconite assistance area. The proceeds of the tax paid under
365.9sections
365.10or extracted outside of the taconite assistance area defined in section
365.11be deposited in the general fund.
365.12EFFECTIVE DATE.This section is effective the day following final enactment.
365.13 Sec. 17. Minnesota Statutes 2012, section 373.01, subdivision 1, is amended to read:
365.14 Subdivision 1. Public corporation; listed powers. (a) Each county is a body politic
365.15and corporate and may:
365.16 (1) Sue and be sued.
365.17 (2) Acquire and hold real and personal property for the use of the county, and lands
365.18sold for taxes as provided by law.
365.19 (3) Purchase and hold for the benefit of the county real estate sold by virtue of
365.20judicial proceedings, to which the county is a party.
365.21 (4) Sell, lease, and convey real or personal estate owned by the county, and give
365.22contracts or options to sell, lease, or convey it, and make orders respecting it as deemed
365.23conducive to the interests of the county's inhabitants.
365.24 (5) Make all contracts and do all other acts in relation to the property and concerns
365.25of the county necessary to the exercise of its corporate powers.
365.26 (b) No sale, lease, or conveyance of real estate owned by the county, except the lease
365.27of a residence acquired for the furtherance of an approved capital improvement project, nor
365.28any contract or option for it, shall be valid, without first advertising for bids or proposals in
365.29the official newspaper of the county for three consecutive weeks and once in a newspaper
365.30of general circulation in the area where the property is located. The notice shall state the
365.31time and place of considering the proposals, contain a legal description of any real estate,
365.32and a brief description of any personal property. Leases that do not exceed $15,000 for any
365.33one year may be negotiated and are not subject to the competitive bid procedures of this
365.34section. All proposals estimated to exceed $15,000 in any one year shall be considered at
366.1the time set for the bid opening, and the one most favorable to the county accepted, but the
366.2county board may, in the interest of the county, reject any or all proposals.
366.3 (c) Sales of personal property the value of which is estimated to be $15,000 or
366.4more shall be made only after advertising for bids or proposals in the county's official
366.5newspaper, on the county's Web site, or in a recognized industry trade journal. At the same
366.6time it posts on its Web site or publishes in a trade journal, the county must publish in the
366.7official newspaper, either as part of the minutes of a regular meeting of the county board
366.8or in a separate notice, a summary of all requests for bids or proposals that the county
366.9advertises on its Web site or in a trade journal. After publication in the official newspaper,
366.10on the Web site, or in a trade journal, bids or proposals may be solicited and accepted by
366.11the electronic selling process authorized in section
366.12personal property the value of which is estimated to be less than $15,000 may be made
366.13either on competitive bids or in the open market, in the discretion of the county board.
366.14"Web site" means a specific, addressable location provided on a server connected to the
366.15Internet and hosting World Wide Web pages and other files that are generally accessible
366.16on the Internet all or most of a day.
366.17 (d) Notwithstanding anything to the contrary herein, the county may, when acquiring
366.18real property for county highway right-of-way, exchange parcels of real property of
366.19substantially similar or equal value without advertising for bids. The estimated values for
366.20these parcels shall be determined by the county assessor.
366.21 (e) Notwithstanding anything in this section to the contrary, the county may, when
366.22acquiring real property for purposes other than county highway right-of-way, exchange
366.23parcels of real property of substantially similar or equal value without advertising for
366.24bids. The estimated values for these parcels must be determined by the county assessor
366.25or a private appraisal performed by a licensed Minnesota real estate appraiser. For the
366.26purpose of determining for the county the estimated values of parcels proposed to be
366.27exchanged, the county assessor need not be licensed under chapter 82B. Before giving
366.28final approval to any exchange of land, the county board shall hold a public hearing on
366.29the exchange. At least two weeks before the hearing, the county auditor shall post a
366.30notice in the auditor's office and the official newspaper of the county of the hearing that
366.31contains a description of the lands affected.
366.32 (f) If real estate or personal property remains unsold after advertising for and
366.33consideration of bids or proposals the county may employ a broker to sell the property.
366.34The broker may sell the property for not less than 90 percent of its appraised market value
366.35as determined by the county. The broker's fee shall be set by agreement with the county but
366.36may not exceed ten percent of the sale price and must be paid from the proceeds of the sale.
367.1 (g) A county or its agent may rent a county-owned residence acquired for the
367.2furtherance of an approved capital improvement project subject to the conditions set
367.3by the county board and not subject to the conditions for lease otherwise provided by
367.4paragraph (a), clause (4), and paragraphs (b), (c), (d), (f), and (h).
367.5 (h) In no case shall lands be disposed of without there being reserved to the county
367.6all iron ore and other valuable minerals in and upon the lands, with right to explore for,
367.7mine and remove the iron ore and other valuable minerals, nor shall the minerals and
367.8mineral rights be disposed of, either before or after disposition of the surface rights,
367.9otherwise than by mining lease, in similar general form to that provided by section
367.11years, and be issued on a royalty basis, the royalty to be not less than 25 cents per ton of
367.122,240 pounds, and fix a minimum amount of royalty payable during each year, whether
367.13mineral is removed or not. Prospecting options for mining leases may be granted for
367.14periods not exceeding one year. The options shall require, among other things, periodical
367.15showings to the county board of the results of exploration work done.
367.16 (i) Notwithstanding anything in this subdivision to the contrary, the county may,
367.17when selling real property owned in fee simple that cannot be improved because of
367.18noncompliance with local ordinances regarding minimum area, shape, frontage, or access,
367.19proceed to sell the nonconforming parcel without advertising for bid. At the county's
367.20discretion, the real property may be restricted to sale to adjoining landowners or may be
367.21sold to any other interested party. The property shall be sold to the highest bidder, but in no
367.22case shall the property be sold for less than 90 percent of its fair market value as determined
367.23by the county assessor. All owners of land adjoining the land to be sold shall be given a
367.24written notice at least 30 days before the sale. This paragraph shall be liberally construed to
367.25encourage the sale of nonconforming real property and promote its return to the tax roles.
367.26EFFECTIVE DATE.This section is effective the day following final enactment.
367.27 Sec. 18. REPEALER.
367.28Minnesota Statutes 2012, sections 272.69; and 273.11, subdivisions 1a and 22, are
367.29repealed.
367.30EFFECTIVE DATE.This section is effective the day following final enactment.
367.33 Section 1. Minnesota Statutes 2012, section 16A.46, is amended to read:
368.116A.46 LOST OR DESTROYED WARRANT DUPLICATE; INDEMNITY.
368.2 Subdivision 1. Duplicate warrant. The commissioner may issue a duplicate of an
368.3unpaid warrant to an owner if the owner certifies that the original was lost or destroyed. The
368.4commissioner may require certification be documented by affidavit. The commissioner
368.5may refuse to issue a duplicate of an unpaid state warrant. If the commissioner acts in
368.6good faith, the commissioner is not liable, whether the application is granted or denied.
368.7 Subd. 2. Original warrant is void. When the duplicate is issued, the original is
368.8void. The commissioner may require an indemnity bond from the applicant to the state for
368.9double the amount of the warrant for anyone damaged by the issuance of the duplicate.
368.10The commissioner
368.11
368.12
368.13whether or not the commissioner required an indemnity bond from the applicant.
368.14 Subd. 3. Unpaid refund or rebate. For an unpaid refund or rebate issued under a
368.15tax law administered by the commissioner of revenue that has been lost or destroyed, an
368.16affidavit is not required for the commissioner to issue a duplicate if the duplicate is issued
368.17to the same name and Social Security number as the original warrant and that information
368.18is verified on a tax return filed by the recipient.
368.19EFFECTIVE DATE.This section is effective the day following final enactment.
368.20 Sec. 2. Minnesota Statutes 2012, section 270C.38, subdivision 1, is amended to read:
368.21 Subdivision 1. Sufficient notice. (a) If no method of notification of a written
368.22determination or action of the commissioner is otherwise specifically provided for by
368.23law, notice of the determination or action sent postage prepaid by United States mail to
368.24the taxpayer or other person affected by the determination or action at the taxpayer's
368.25or person's last known address, is sufficient. If the taxpayer or person being notified is
368.26deceased or is under a legal disability, or, in the case of a corporation being notified that
368.27has terminated its existence, notice to the last known address of the taxpayer, person, or
368.28corporation is sufficient, unless the department has been provided with a new address by a
368.29party authorized to receive notices from the commissioner.
368.30(b) If a taxpayer or other person agrees to accept notification by electronic means,
368.31notice of a determination or action of the commissioner sent by electronic mail to the
368.32taxpayer's or person's last known electronic mailing address as provided for in section
368.33325L.08 is sufficient.
368.34EFFECTIVE DATE.This section is effective the day following final enactment.
369.1 Sec. 3. Minnesota Statutes 2012, section 270C.42, subdivision 2, is amended to read:
369.2 Subd. 2. Penalty for failure to pay electronically. In addition to other applicable
369.3penalties imposed by law, after notification from the commissioner to the taxpayer that
369.4payments for a tax payable to the commissioner are required to be made by electronic
369.5means, and the payments are remitted by some other means, there is a penalty in the
369.6amount of five percent of each payment that should have been remitted electronically.
369.7After the commissioner's initial notification to the taxpayer that payments are required to
369.8be made by electronic means, the commissioner is not required to notify the taxpayer in
369.9subsequent periods if the initial notification specified the amount of tax liability at which a
369.10taxpayer is required to remit payments by electronic means. The penalty can be abated
369.11under the abatement procedures prescribed in section
369.12payment electronically is due to reasonable cause. The penalty bears interest at the rate
369.13specified in section
369.14section 270C.40, subdivision 3, to the date of payment of the penalty.
369.15EFFECTIVE DATE.This section is effective the day following final enactment.
369.16 Sec. 4. Minnesota Statutes 2012, section 287.385, subdivision 7, is amended to read:
369.17 Subd. 7. Interest on penalties. A penalty imposed under this chapter bears interest
369.18from the date
369.19section 270C.40, subdivision 3, to the date of payment of the penalty.
369.20EFFECTIVE DATE.This section is effective the day following final enactment.
369.21 Sec. 5. Minnesota Statutes 2012, section 289A.55, subdivision 9, is amended to read:
369.22 Subd. 9. Interest on penalties. (a) A penalty imposed under section
369.23subdivision 1
369.24
369.25subdivision 3, to the date of payment of the penalty.
369.26(b) A penalty not included in paragraph (a) bears interest only if it is not paid within
369.2760 days from the date of notice. In that case interest is imposed from the date of notice
369.28to the date of payment.
369.29EFFECTIVE DATE.This section is effective the day following final enactment.
369.30 Sec. 6. Minnesota Statutes 2012, section 289A.60, subdivision 4, is amended to read:
370.1 Subd. 4. Substantial understatement of liability; penalty. (a) The commissioner
370.2of revenue shall impose a penalty for substantial understatement of any tax payable to the
370.3commissioner, except a tax imposed under chapter 297A.
370.4(b) There must be added to the tax an amount equal to 20 percent of the amount of any
370.5underpayment attributable to the understatement. There is a substantial understatement of
370.6tax for the period if the amount of the understatement for the period exceeds the greater of:
370.7(1) ten percent of the tax required to be shown on the return for the period; or
370.8(2)(i) $10,000 in the case of a mining company or a corporation, other than an S
370.9corporation as defined in section
370.10section
370.11(ii) $5,000 in the case of any other taxpayer, and in the case of a mining company or
370.12a corporation any tax not imposed by chapter 290 or section
370.13(c) For a corporation, other than an S corporation, there is also a substantial
370.14understatement of tax for any taxable year if the amount of the understatement for the
370.15taxable year exceeds the lesser of:
370.16(1) ten percent of the tax required to be shown on the return for the taxable year
370.17(or, if greater, $10,000); or
370.18(2) $10,000,000.
370.19(d) The term "understatement" means the excess of the amount of the tax required
370.20to be shown on the return for the period, over the amount of the tax imposed that is
370.21shown on the return. The excess must be determined without regard to items to which
370.22subdivision 27 applies. The amount of the understatement shall be reduced by that part of
370.23the understatement that is attributable to the tax treatment of any item by the taxpayer if
370.24(1) there is or was substantial authority for the treatment, or (2)(i) any item with respect to
370.25which the relevant facts affecting the item's tax treatment are adequately disclosed in the
370.26return or in a statement attached to the return and (ii) there is a reasonable basis for the tax
370.27treatment of the item. The exception for substantial authority under clause (1) does not
370.28apply to positions listed by the Secretary of the Treasury under section 6662(d)(3) of the
370.29Internal Revenue Code. A corporation does not have a reasonable basis for its tax treatment
370.30of an item attributable to a multiple-party financing transaction if the treatment does not
370.31clearly reflect the income of the corporation within the meaning of section 6662(d)(2)(B)
370.32of the Internal Revenue Code. The special rules in cases involving tax shelters provided in
370.33section 6662(d)(2)(C) of the Internal Revenue Code shall apply and shall apply to a tax
370.34shelter the principal purpose of which is the avoidance or evasion of state taxes.
370.35(e) The commissioner may abate all or any part of the addition to the tax provided
370.36by this section on a showing by the taxpayer that there was reasonable cause for the
371.1understatement, or part of it, and that the taxpayer acted in good faith. The additional tax
371.2and penalty shall bear interest
371.3
371.4EFFECTIVE DATE.This section is effective the day following final enactment.
371.5 Sec. 7. Minnesota Statutes 2012, section 296A.01, subdivision 7, is amended to read:
371.6 Subd. 7. Aviation gasoline. "Aviation gasoline" means any gasoline that is
371.7capable of use for the purpose of producing or generating power for propelling internal
371.8combustion engine aircraft, that meets the specifications in ASTM specification
371.9 D910-11, and that either:
371.10 (1) is invoiced and billed by a producer, manufacturer, refiner, or blender to a
371.11distributor or dealer, by a distributor to a dealer or consumer, or by a dealer to consumer,
371.12as "aviation gasoline"; or
371.13 (2) whether or not invoiced and billed as provided in clause (1), is received, sold,
371.14stored, or withdrawn from storage by any person, to be used for the purpose of producing
371.15or generating power for propelling internal combustion engine aircraft.
371.16EFFECTIVE DATE.This section is effective the day following final enactment.
371.17 Sec. 8. Minnesota Statutes 2012, section 296A.01, subdivision 8, is amended to read:
371.18 Subd. 8. Aviation turbine fuel and jet fuel. "Aviation turbine fuel" and "jet
371.19fuel" mean blends of hydrocarbons derived from crude petroleum, natural gasoline, and
371.20synthetic hydrocarbons, intended for use in aviation turbine engines, and that meet the
371.21specifications in ASTM specification
371.22EFFECTIVE DATE.This section is effective the day following final enactment.
371.23 Sec. 9. Minnesota Statutes 2012, section 296A.01, is amended by adding a subdivision
371.24to read:
371.25 Subd. 8b. Biobutanol. "Biobutanol" means isobutyl alcohol produced by
371.26fermenting agriculturally generated organic material that is to be blended with gasoline
371.27and meets either:
371.28 (1) the initial ASTM Standard Specification for Butanol for Blending with Gasoline
371.29for use as an Automotive Spark-Ignition Engine Fuel once it has been released by ASTM
371.30for general distribution; or
371.31 (2) in the absence of an ASTM Standard Specification, the following list of
371.32requirements:
372.1 (i) visually free of sediment and suspended matter;
372.2 (ii) clear and bright at the ambient temperature of 21 degrees Celsius or the ambient
372.3temperature whichever is higher;
372.4 (iii) free of any adulterant or contaminant that can render it unacceptable for its
372.5commonly used applications;
372.6 (iv) contains not less than 96 volume percent isobutyl alcohol;
372.7 (v) contains not more than 0.4 volume percent methanol;
372.8 (vi) contains not more than 1.0 volume percent water as determined by ASTM
372.9standard test method E203 or E1064;
372.10 (vii) acidity (as acetic acid) of not more than 0.007 mass percent as determined
372.11by ASTM standard test method D1613;
372.12 (viii) solvent washed gum content of not more than 5.0 milligrams per 100 milliliters
372.13as determined by ASTM standard test method D381;
372.14 (ix) sulfur content of not more than 30 parts per million as determined by ASTM
372.15standard test method D2622 or D5453; and
372.16 (x) contains not more than 4 parts per million total inorganic sulfate.
372.17 Sec. 10. Minnesota Statutes 2012, section 296A.01, subdivision 14, is amended to read:
372.18 Subd. 14. Diesel fuel oil. "Diesel fuel oil" means a petroleum distillate or blend of
372.19petroleum distillate and residual fuels that is intended for use as a motor fuel in internal
372.20combustion diesel engines and that meets ASTM specification
372.21EFFECTIVE DATE.This section is effective the day following final enactment.
372.22 Sec. 11. Minnesota Statutes 2012, section 296A.01, subdivision 19, is amended to read:
372.23 Subd. 19. E85. "E85" means a petroleum product that is a blend of agriculturally
372.24derived denatured ethanol and gasoline or natural gasoline that
372.25than 85 percent ethanol by volume, but at a minimum must contain
372.26 percent ethanol by volume. For the purposes of this chapter, the energy content of E85
372.27will be considered to be 82,000 BTUs per gallon. E85 produced for use as a motor fuel in
372.28alternative fuel vehicles as defined in subdivision 5 must comply with ASTM specification
372.29
372.30EFFECTIVE DATE.This section is effective the day following final enactment.
372.31 Sec. 12. Minnesota Statutes 2012, section 296A.01, subdivision 20, is amended to read:
373.1 Subd. 20. Ethanol, denatured. "Ethanol, denatured" means ethanol that is to
373.2be blended with gasoline, has been agriculturally derived, and complies with ASTM
373.3specification
373.4denatured only as specified in Code of Federal Regulations, title 27, parts 20 and 21.
373.5EFFECTIVE DATE.This section is effective the day following final enactment.
373.6 Sec. 13. Minnesota Statutes 2012, section 296A.01, subdivision 23, is amended to read:
373.7 Subd. 23. Gasoline. (a) "Gasoline" means:
373.8 (1) all products commonly or commercially known or sold as gasoline regardless of
373.9their classification or uses, except casinghead gasoline, absorption gasoline, condensation
373.10gasoline, drip gasoline, or natural gasoline that under the requirements of section
373.11subdivision 3
373.12otherwise removed from a refinery or terminal; and
373.13 (2) any liquid prepared, advertised, offered for sale or sold for use as, or commonly
373.14and commercially used as, a fuel in spark-ignition, internal combustion engines, and that
373.15when tested by the Weights and Measures Division meets the specifications in ASTM
373.16specification
373.17 (b) Gasoline that is not blended with ethanol must not be contaminated with water or
373.18other impurities and must comply with both ASTM specification
373.19 and the volatility requirements in Code of Federal Regulations, title 40, part 80.
373.20 (c) After gasoline is sold, transferred, or otherwise removed from a refinery or
373.21terminal, a person responsible for the product:
373.22 (1) may blend the gasoline with agriculturally derived ethanol, as provided in
373.23subdivision 24;
373.24 (2) must not blend the gasoline with any oxygenate other than denatured,
373.25agriculturally derived ethanol;
373.26 (3) must not blend the gasoline with other petroleum products that are not gasoline
373.27or denatured, agriculturally derived ethanol;
373.28 (4) must not blend the gasoline with products commonly and commercially known
373.29as casinghead gasoline, absorption gasoline, condensation gasoline, drip gasoline, or
373.30natural gasoline; and
373.31 (5) may blend the gasoline with a detergent additive, an antiknock additive, or an
373.32additive designed to replace tetra-ethyl lead, that is registered by the EPA.
373.33EFFECTIVE DATE.This section is effective the day following final enactment.
374.1 Sec. 14. Minnesota Statutes 2012, section 296A.01, subdivision 24, is amended to read:
374.2 Subd. 24. Gasoline blended with nonethanol oxygenate. "Gasoline blended with
374.3nonethanol oxygenate" means gasoline blended with ETBE, MTBE, or other alcohol
374.4or ether, except denatured ethanol, that is approved as an oxygenate by the EPA, and
374.5that complies with ASTM specification
374.6denatured ethanol, must not be blended into gasoline after the gasoline has been sold,
374.7transferred, or otherwise removed from a refinery or terminal.
374.8EFFECTIVE DATE.This section is effective the day following final enactment.
374.9 Sec. 15. Minnesota Statutes 2012, section 296A.01, subdivision 26, is amended to read:
374.10 Subd. 26. Heating fuel oil. "Heating fuel oil" means a petroleum distillate, blend
374.11of petroleum distillates and residuals, or petroleum residual heating fuel that meets the
374.12specifications in ASTM specification
374.13EFFECTIVE DATE.This section is effective the day following final enactment.
374.14 Sec. 16. Minnesota Statutes 2012, section 296A.22, subdivision 1, is amended to read:
374.15 Subdivision 1. Penalty for failure to pay tax, general rule. Upon the failure of
374.16any person to pay any tax or fee when due, a penalty of one percent per day for the first
374.17ten days of delinquency shall accrue, and thereafter the tax, fees, and penalty shall bear
374.18interest at the rate specified in section
374.19EFFECTIVE DATE.This section is effective the day following final enactment.
374.20 Sec. 17. Minnesota Statutes 2012, section 296A.22, subdivision 3, is amended to read:
374.21 Subd. 3. Operating without license. If any person operates as a distributor, special
374.22fuel dealer, bulk purchaser, or motor carrier without first securing the license required
374.23under this chapter, any tax or fee imposed by this chapter shall become immediately due
374.24and payable. A penalty of 25 percent is imposed upon the tax and fee due. The tax
374.25 fees
374.26imposed in this subdivision shall bear interest from the date provided in section 270C.40,
374.27subdivision 3, to the date of payment of the penalty.
374.28EFFECTIVE DATE.This section is effective the day following final enactment.
374.29 Sec. 18. Minnesota Statutes 2012, section 297B.11, is amended to read:
375.1297B.11 REGISTRAR AS AGENT OF COMMISSIONER OF REVENUE;
375.2POWERS.
375.3The state commissioner of revenue is charged with the administration of the
375.4sales tax on motor vehicles. The commissioner may prescribe all rules not inconsistent
375.5with the provisions of this chapter, necessary and advisable for the proper and efficient
375.6administration of the law. The collection of this sales tax on motor vehicles shall be
375.7carried out by the motor vehicle registrar who shall act as the agent of the commissioner
375.8and who shall be subject to all rules not inconsistent with the provisions of this chapter,
375.9that may be prescribed by the commissioner.
375.10The provisions of chapters 270C, 289A, and 297A relating to the commissioner's
375.11authority to audit, assess, and collect the tax, and to issue refunds and to hear appeals,
375.12are applicable to the sales tax on motor vehicles. The commissioner may impose civil
375.13penalties as provided in chapters 289A and 297A, and the additional tax and penalties
375.14are subject to interest at the rate provided in section
375.15section 270C.40, subdivision 3, until paid.
375.16EFFECTIVE DATE.This section is effective the day following final enactment.
375.17 Sec. 19. Minnesota Statutes 2012, section 297E.14, subdivision 7, is amended to read:
375.18 Subd. 7. Interest on penalties. (a) A penalty imposed under section
375.19subdivision 1
375.20
375.213, to the date of payment of the penalty.
375.22(b) A penalty not included in paragraph (a) bears interest only if it is not paid within
375.23ten days from the date of notice. In that case interest is imposed from the date of notice
375.24to the date of payment.
375.25EFFECTIVE DATE.This section is effective the day following final enactment.
375.26 Sec. 20. Minnesota Statutes 2012, section 297F.09, subdivision 9, is amended to read:
375.27 Subd. 9. Interest. The amount of tax not timely paid
375.28
375.29time such tax should have been paid until paid. The penalty imposed in this section bears
375.30interest at the rate specified in section 270C.40 from the date provided in section 270C.40,
375.31subdivision 3, to the date of payment of the penalty. Any interest and penalty is added to
375.32the tax and collected as a part of it.
375.33EFFECTIVE DATE.This section is effective the day following final enactment.
376.1 Sec. 21. Minnesota Statutes 2012, section 297F.18, subdivision 7, is amended to read:
376.2 Subd. 7. Interest on penalties. (a) A penalty imposed under section
376.3subdivisions 2 to 7, bears interest from the date
376.4
376.5date of payment of the penalty.
376.6(b) A penalty not included in paragraph (a) bears interest only if it is not paid within
376.7ten days from the date of the notice. In that case interest is imposed from the date of notice
376.8to the date of payment.
376.9EFFECTIVE DATE.This section is effective the day following final enactment.
376.10 Sec. 22. Minnesota Statutes 2012, section 297G.09, subdivision 8, is amended to read:
376.11 Subd. 8. Interest. The amount of tax not timely paid
376.12
376.13time the tax should have been paid until paid. Any penalty imposed by this chapter bears
376.14interest from the date provided in section 270C.40, subdivision 3, to the date of payment
376.15of the penalty. Any interest and penalty is added to the tax and collected as a part of it.
376.16EFFECTIVE DATE.This section is effective the day following final enactment.
376.17 Sec. 23. Minnesota Statutes 2012, section 297G.17, subdivision 7, is amended to read:
376.18 Subd. 7. Interest on penalties. (a) A penalty imposed under section
376.19subdivisions 2 to 7, bears interest from the date
376.20
376.21date of payment of the penalty.
376.22(b) A penalty not included in paragraph (a) bears interest only if it is not paid within
376.23ten days from the date of the notice. In that case interest is imposed from the date of notice
376.24to the date of payment.
376.25EFFECTIVE DATE.This section is effective the day following final enactment.
376.26 Sec. 24. Minnesota Statutes 2012, section 297I.80, subdivision 1, is amended to read:
376.27 Subdivision 1. Payable to commissioner. (a) When interest is required under this
376.28section, interest is computed at the rate specified in section
376.29(b) If a tax or surcharge is not paid within the time named by law for payment, the
376.30unpaid tax or surcharge bears interest from the date the tax or surcharge should have been
376.31paid until the date the tax or surcharge is paid.
377.1(c) Whenever a taxpayer is liable for additional tax or surcharge because of a
377.2redetermination by the commissioner or other reason, the additional tax or surcharge
377.3bears interest from the time the tax or surcharge should have been paid until the date the
377.4tax or surcharge is paid.
377.5(d) A penalty bears interest from the date
377.6
377.7penalty.
377.8EFFECTIVE DATE.This section is effective the day following final enactment.
377.9 Sec. 25. Minnesota Statutes 2012, section 469.319, subdivision 4, is amended to read:
377.10 Subd. 4. Repayment procedures. (a) For the repayment of taxes imposed under
377.11chapter 290 or 297A or local taxes collected pursuant to section
377.12file an amended return with the commissioner of revenue and pay any taxes required
377.13to be repaid within 30 days after becoming subject to repayment under this section.
377.14The amount required to be repaid is determined by calculating the tax for the period or
377.15periods for which repayment is required without regard to the exemptions and credits
377.16allowed under section
377.17 (b) For the repayment of taxes imposed under chapter 297B, a business must pay any
377.18taxes required to be repaid to the motor vehicle registrar, as agent for the commissioner of
377.19revenue, within 30 days after becoming subject to repayment under this section.
377.20 (c) For the repayment of property taxes, the county auditor shall prepare a tax
377.21statement for the business, applying the applicable tax extension rates for each payable
377.22year and provide a copy to the business and to the taxpayer of record. The business must
377.23pay the taxes to the county treasurer within 30 days after receipt of the tax statement. The
377.24business or the taxpayer of record may appeal the valuation and determination of the
377.25property tax to the Tax Court within 30 days after receipt of the tax statement.
377.26 (d) The provisions of chapters 270C and 289A relating to the commissioner's
377.27authority to audit, assess, and collect the tax and to hear appeals are applicable to the
377.28repayment required under paragraphs (a) and (b). The commissioner may impose civil
377.29penalties as provided in chapter 289A, and the additional tax and penalties are subject
377.30to interest at the rate provided in section
377.31 from 30 days after becoming subject to repayment under this section until the date the
377.32tax is paid. Any penalty imposed pursuant to this section shall bear interest from the date
377.33provided in section 270C.40, subdivision 3, to the date of payment of the penalty.
377.34 (e) If a property tax is not repaid under paragraph (c), the county treasurer shall
377.35add the amount required to be repaid to the property taxes assessed against the property
378.1for payment in the year following the year in which the auditor provided the statement
378.2under paragraph (c).
378.3 (f) For determining the tax required to be repaid, a reduction of a state or local sales or
378.4use tax is deemed to have been received on the date that the good or service was purchased
378.5or first put to a taxable use. In the case of an income tax or franchise tax, including the
378.6credit payable under section
378.7for the two most recent tax years that have ended prior to the date that the business became
378.8subject to repayment under this section. In the case of a property tax, a reduction of tax is
378.9deemed to have been received for the taxes payable in the year that the business became
378.10subject to repayment under this section and for the taxes payable in the prior year.
378.11 (g) The commissioner may assess the repayment of taxes under paragraph (d) any
378.12time within two years after the business becomes subject to repayment under subdivision
378.131, or within any period of limitations for the assessment of tax under section
378.14whichever period is later. The county auditor may send the statement under paragraph
378.15(c) any time within three years after the business becomes subject to repayment under
378.16subdivision 1.
378.17 (h) A business is not entitled to any income tax or franchise tax benefits, including
378.18refundable credits, for any part of the year in which the business becomes subject to
378.19repayment under this section nor for any year thereafter. Property is not exempt from tax
378.20under section
378.21in which the property became subject to repayment under this section nor for any year
378.22thereafter. A business is not eligible for any sales tax benefits beginning with goods
378.23or services purchased or first put to a taxable use on the day that the business becomes
378.24subject to repayment under this section.
378.25EFFECTIVE DATE.This section is effective the day following final enactment.
378.26 Sec. 26. Minnesota Statutes 2012, section 469.340, subdivision 4, is amended to read:
378.27 Subd. 4. Repayment procedures. (a) For the repayment of taxes imposed under
378.28chapter 290 or 297A or local taxes collected pursuant to section
378.29file an amended return with the commissioner of revenue and pay any taxes required to be
378.30repaid within 30 days after ceasing to do business in the zone. The amount required to be
378.31repaid is determined by calculating the tax for the period or periods for which repayment
378.32is required without regard to the exemptions and credits allowed under section
378.33(b) For the repayment of property taxes, the county auditor shall prepare a tax
378.34statement for the business, applying the applicable tax extension rates for each payable
378.35year and provide a copy to the business. The business must pay the taxes to the county
379.1treasurer within 30 days after receipt of the tax statement. The taxpayer may appeal the
379.2valuation and determination of the property tax to the Tax Court within 30 days after
379.3receipt of the tax statement.
379.4(c) The provisions of chapters 270C and 289A relating to the commissioner's
379.5authority to audit, assess, and collect the tax and to hear appeals are applicable to the
379.6repayment required under paragraph (a). The commissioner may impose civil penalties as
379.7provided in chapter 289A, and the additional tax and penalties are subject to interest at the
379.8rate provided in section
379.9ceasing to do business in the biotechnology and health sciences industry zone until the
379.10date the tax is paid. Any penalty imposed pursuant to this section shall bear interest from
379.11the date provided in section 270C.40, subdivision 3, to the date of payment of the penalty.
379.12(d) If a property tax is not repaid under paragraph (b), the county treasurer shall add
379.13the amount required to be repaid to the property taxes assessed against the property for
379.14payment in the year following the year in which the treasurer discovers that the business
379.15ceased to operate in the biotechnology and health sciences industry zone.
379.16(e) For determining the tax required to be repaid, a tax reduction is deemed to have
379.17been received on the date that the tax would have been due if the taxpayer had not been
379.18entitled to the exemption, or on the date a refund was issued for a refundable credit.
379.19(f) The commissioner may assess the repayment of taxes under paragraph (c) any
379.20time within two years after the business ceases to operate in the biotechnology and health
379.21sciences industry zone, or within any period of limitations for the assessment of tax under
379.22section
379.23EFFECTIVE DATE.This section is effective the day following final enactment."
379.24Delete the title and insert:
379.26relating to financing and operation of state and local government; making
379.27changes to individual income, corporate franchise, property, sales and use,
379.28estate, mineral, tobacco, alcohol, special, local, and other taxes and tax-related
379.29provisions modifying the property tax refund; changing property tax aids and
379.30credits; modifying the Sustainable Forest Incentive Act; modifying education
379.31aids and levies; providing additional pension funding; modifying definitions and
379.32distributions for property taxes; providing for property tax exemptions; modifying
379.33the payment in lieu of tax provisions; modifying education aids and levies;
379.34modifying tobacco tax provisions; making changes to additions and subtractions
379.35from federal taxable income; providing for federal conformity; changing income
379.36tax rates for individuals, estates, and trusts; providing income tax credits;
379.37modifying estate tax provisions; providing for a state gift tax; expanding the sales
379.38tax base; modifying the duty to collect and remit sales taxes for certain sellers;
379.39imposing the sales tax on digital products and selected services; modifying the
379.40definition of sale and purchase; modifying provisions for the rental motor vehicle
379.41tax rate; providing for multiple points of use certificates; modifying sales tax
379.42exemptions; authorizing local sales taxes; authorizing economic development
380.1powers; modifying tax increment financing rules; providing authority,
380.2organization, powers, duties, and requiring a prevailing wage for development
380.3of a Destination Medical Center; authorizing state infrastructure aid; modifying
380.4the distribution of taconite production taxes; authorizing taconite production tax
380.5bonds for grants to school districts; modifying and providing provisions for
380.6public finance; providing funding for legislative office facilities; modifying the
380.7definition of market value for tax, debt, and other purposes; making conforming,
380.8policy, and technical changes to tax provisions; requiring studies and reports;
380.9appropriating money;amending Minnesota Statutes 2012, sections 13.792;
380.1016A.46; 16A.727; 38.18; 40A.15, subdivision 2; 69.011, subdivision 1; 69.021,
380.11subdivisions 7, 8; 88.51, subdivision 3; 103B.102, subdivision 3; 103B.245,
380.12subdivision 3; 103B.251, subdivision 8; 103B.335; 103B.3369, subdivision 5;
380.13103B.635, subdivision 2; 103B.691, subdivision 2; 103C.501, subdivision 4;
380.14103D.905, subdivisions 2, 3, 8; 103F.405, subdivision 1; 116J.8737, subdivisions
380.151, 2, 8; 117.025, subdivision 7; 118A.04, subdivision 3; 118A.05, subdivision
380.165; 123A.455, subdivision 1; 126C.10, subdivision 1, by adding a subdivision;
380.17126C.13, subdivision 4; 126C.17; 126C.48, subdivision 8; 127A.48, subdivision
380.181; 138.053; 144F.01, subdivision 4; 162.07, subdivisions 3, 4; 163.04, subdivision
380.193; 163.06, subdivision 6; 165.10, subdivision 1; 168.012, subdivision 9, by
380.20adding a subdivision; 216C.436, subdivision 7; 237.52, subdivision 3, by adding
380.21a subdivision; 270.077; 270.41, subdivisions 3, 5, by adding a subdivision;
380.22270.45; 270B.01, subdivision 8; 270B.03, subdivision 1; 270B.12, subdivision
380.234; 270C.03, subdivision 1; 270C.34, subdivision 1; 270C.38, subdivision 1;
380.24270C.42, subdivision 2; 270C.56, subdivision 1; 271.06, subdivision 2a, as added;
380.25272.01, subdivision 2; 272.02, subdivisions 39, 97, by adding subdivisions;
380.26272.03, subdivision 9, by adding subdivisions; 273.032; 273.061, subdivision
380.272; 273.0645; 273.11, subdivision 1; 273.114, subdivision 6; 273.117; 273.124,
380.28subdivisions 3a, 13; 273.13, subdivisions 21b, 23, 25; 273.1398, subdivisions 3,
380.294; 273.19, subdivision 1; 273.372, subdivision 4; 273.39; 275.011, subdivision 1;
380.30275.077, subdivision 2; 275.71, subdivision 4; 276.04, subdivision 2; 276A.01,
380.31subdivisions 10, 12, 13, 15; 276A.06, subdivision 10; 279.01, subdivision 1, by
380.32adding a subdivision; 279.02; 279.06, subdivision 1; 279.37, subdivisions 1a, 2;
380.33281.14; 281.17; 287.05, by adding a subdivision; 287.08; 287.20, by adding a
380.34subdivision; 287.23, subdivision 1; 287.385, subdivision 7; 289A.08, subdivision
380.353; 289A.10, subdivision 1, by adding a subdivision; 289A.12, subdivision 14, by
380.36adding a subdivision; 289A.18, by adding a subdivision; 289A.20, subdivisions
380.373, 4, by adding a subdivision; 289A.26, subdivisions 3, 4, 7, 9; 289A.55,
380.38subdivision 9; 289A.60, subdivision 4; 290.01, subdivisions 19, as amended,
380.3919b, 19c, 19d; 290.06, subdivisions 2c, 2d, by adding a subdivision; 290.0677,
380.40subdivision 2; 290.068, subdivisions 3, 6a; 290.0681, subdivisions 1, 3, 4, 5, 10;
380.41290.091, subdivisions 1, 2, 6; 290.0921, subdivision 3; 290.0922, subdivision 1;
380.42290.095, subdivision 2; 290.10, subdivision 1; 290.17, subdivision 4; 290.191,
380.43subdivision 5; 290.21, subdivision 4; 290.9705, subdivision 1; 290A.03,
380.44subdivision 3; 290A.04, subdivisions 2, 2a, 4; 290B.04, subdivision 2; 290C.02,
380.45subdivision 6; 290C.03; 290C.055; 290C.07; 291.005, subdivision 1; 291.03,
380.46subdivisions 1, 8, 9, 10, 11, by adding a subdivision; 296A.01, subdivisions 7, 8,
380.4714, 19, 20, 23, 24, 26, by adding a subdivision; 296A.09, subdivision 2; 296A.17,
380.48subdivision 3; 296A.22, subdivisions 1, 3; 297A.61, subdivisions 3, 4, 10, 25,
380.4938, 45, by adding subdivisions; 297A.64, subdivision 1; 297A.66, subdivision
380.503, by adding a subdivision; 297A.665; 297A.668, by adding a subdivision;
380.51297A.67, subdivisions 7, 13, by adding a subdivision; 297A.68, subdivisions
380.522, 5, 42, by adding a subdivision; 297A.70, subdivisions 2, 4, 5, 7, 13, 14, by
380.53adding subdivisions; 297A.71, by adding subdivisions; 297A.75, subdivisions
380.541, 2, 3; 297A.82, subdivision 4, by adding a subdivision; 297A.99, subdivision
380.551; 297B.11; 297E.021, subdivision 3; 297E.14, subdivision 7; 297F.01,
380.56subdivisions 3, 19, 23, by adding subdivisions; 297F.05, subdivisions 1, 3, 4, by
380.57adding subdivisions; 297F.09, subdivision 9; 297F.18, subdivision 7; 297F.24,
380.58subdivision 1; 297F.25, subdivision 1; 297G.04, subdivision 2; 297G.09,
381.1subdivision 8; 297G.17, subdivision 7; 297I.05, subdivisions 7, 11, 12; 297I.30,
381.2subdivisions 1, 2; 297I.80, subdivision 1; 298.01, subdivisions 3, 3b; 298.018;
381.3298.17; 298.227, as amended; 298.24, subdivision 1; 298.28, subdivisions 4, 6,
381.49c, 10; 325D.32, subdivision 2; 325F.781, subdivision 1; 349.166, subdivision
381.51; 353G.08, subdivision 2; 360.531; 360.66; 365.025, subdivision 4; 366.095,
381.6subdivision 1; 366.27; 368.01, subdivision 23; 368.47; 370.01; 373.01,
381.7subdivisions 1, 3; 373.40, subdivisions 1, 2, 4; 375.167, subdivision 1; 375.18,
381.8subdivision 3; 375.555; 383A.80, subdivision 4; 383B.152; 383B.245; 383B.73,
381.9subdivision 1; 383B.80, subdivision 4; 383D.41, by adding a subdivision;
381.10383E.20; 383E.23; 385.31; 394.36, subdivision 1; 398A.04, subdivision 8;
381.11401.05, subdivision 3; 403.02, subdivision 21, by adding subdivisions; 403.06,
381.12subdivision 1a; 403.11, subdivision 1, by adding subdivisions; 410.32; 412.221,
381.13subdivision 2; 412.301; 428A.02, subdivision 1; 428A.101; 428A.21; 430.102,
381.14subdivision 2; 447.10; 450.19; 450.25; 458A.10; 458A.31, subdivision 1; 465.04;
381.15469.033, subdivision 6; 469.034, subdivision 2; 469.053, subdivisions 4, 4a, 6;
381.16469.071, subdivision 5; 469.107, subdivision 1; 469.169, by adding a subdivision;
381.17469.176, subdivisions 4c, 4g, 6; 469.177, subdivisions 1a, 9, by adding
381.18subdivisions; 469.180, subdivision 2; 469.187; 469.206; 469.319, subdivision
381.194; 469.340, subdivision 4; 471.24; 471.571, subdivisions 1, 2; 471.73; 473.325,
381.20subdivision 2; 473.39, by adding a subdivision; 473.606, subdivision 3; 473.629;
381.21473.661, subdivision 3; 473.667, subdivision 9; 473.671; 473.711, subdivision
381.222a; 473F.02, subdivisions 12, 14, 15, 23; 473F.08, subdivisions 3a, 10, by adding
381.23a subdivision; 474A.04, subdivision 1a; 474A.062; 474A.091, subdivision 3a;
381.24475.521, subdivisions 1, 2, 4; 475.53, subdivisions 1, 3, 4; 475.58, subdivisions
381.252, 3b; 475.73, subdivision 1; 477A.011, subdivisions 20, 30, 34, 42, by adding
381.26subdivisions; 477A.0124, subdivision 2; 477A.013, subdivisions 1, 8, 9, by
381.27adding a subdivision; 477A.015; 477A.03, subdivisions 2a, 2b, by adding a
381.28subdivision; 477A.11, subdivisions 3, 4, by adding subdivisions; 477A.12,
381.29subdivisions 1, 2, 3; 477A.14, subdivision 1, by adding a subdivision; 641.23;
381.30641.24; 645.44, by adding a subdivision; Laws 1971, chapter 773, section 1,
381.31subdivision 2, as amended; Laws 1988, chapter 645, section 3, as amended;
381.32Laws 1993, chapter 375, article 9, section 46, subdivisions 2, as amended, 5, as
381.33amended; Laws 1998, chapter 389, article 8, section 43, subdivisions 1, 3, as
381.34amended, 5, as amended; Laws 1999, chapter 243, article 6, section 11; Laws
381.352002, chapter 377, article 3, section 25, as amended; Laws 2005, First Special
381.36Session chapter 3, article 5, section 37, subdivisions 2, 4; Laws 2006, chapter
381.37259, article 11, section 3, as amended; Laws 2008, chapter 366, article 5, sections
381.3826; 33; 34, as amended; article 7, section 19, subdivision 3, as amended; Laws
381.392009, chapter 88, article 2, section 46, subdivisions 1, 3; Laws 2010, chapter 216,
381.40sections 11; 55; Laws 2010, chapter 389, article 1, section 12; article 5, section 6,
381.41subdivision 6; proposing coding for new law in Minnesota Statutes, chapters 116J;
381.42116V; 124D; 136A; 270C; 287; 290A; 292; 403; 423A; 469; 477A; repealing
381.43Minnesota Statutes 2012, sections 16A.725; 97A.061; 256.9658; 272.69; 273.11,
381.44subdivisions 1a, 22; 276A.01, subdivision 11; 289A.60, subdivision 31; 290.01,
381.45subdivision 6b; 290.06, subdivision 22a; 290.0921, subdivision 7; 290.171;
381.46290.173; 290.174; 297A.61, subdivision 27; 297A.68, subdivision 35; 473F.02,
381.47subdivision 13; 477A.011, subdivisions 2a, 19, 21, 29, 31, 32, 33, 36, 39, 40, 41;
381.48477A.013, subdivisions 11, 12; 477A.0133; 477A.0134; Laws 1973, chapter 567,
381.49section 7, as amended; Laws 2009, chapter 88, article 4, section 23, as amended."