Minnesota Legislature
HF 677
1st Engrossment - 88th Legislature (2013 - 2014) Posted on 04/18/2013 11:23am
3.32 3.33
3.34 3.35 3.36 3.37 3.38 3.39 3.40 3.41 3.42 3.43 3.44 3.45 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26
4.27 4.28 4.29 4.30 4.31 4.32 4.33 4.34 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21 5.22 5.23 5.24 5.25 5.26 5.27 5.28 5.29 5.30 5.31 5.32 5.33 5.34 5.35 5.36 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11
6.12
6.13 6.14 6.15 6.16 6.17 6.18 6.19 6.20 6.21 6.22 6.23 6.24 6.25 6.26 6.27 6.28 6.29 6.30 6.31 6.32 6.33 6.34
7.1
7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12 7.13 7.14 7.15 7.16 7.17 7.18 7.19 7.20 7.21 7.22 7.23 7.24 7.25 7.26 7.27 7.28 7.29 7.30 7.31 7.32 7.33 7.34 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 8.10 8.11 8.12 8.13 8.14 8.15 8.16 8.17 8.18 8.19 8.20 8.21 8.22 8.23 8.24 8.25 8.26 8.27 8.28 8.29 8.30 8.31 8.32 8.33 8.34 8.35 8.36 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 9.10 9.11 9.12 9.13 9.14 9.15 9.16 9.17 9.18 9.19 9.20 9.21 9.22 9.23 9.24 9.25 9.26 9.27 9.28 9.29 9.30 9.31 9.32 9.33 9.34 9.35 9.36 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 10.20 10.21 10.22 10.23 10.24 10.25 10.26 10.27 10.28 10.29 10.30 10.31 10.32 10.33 10.34 10.35
11.1 11.2
11.3 11.4 11.5 11.6 11.7 11.8 11.9 11.10 11.11 11.12 11.13 11.14 11.15 11.16 11.17 11.18 11.19 11.20 11.21 11.22 11.23 11.24 11.25 11.26 11.27 11.28 11.29 11.30 11.31 11.32 11.33 11.34 11.35 12.1 12.2 12.3 12.4 12.5 12.6 12.7 12.8 12.9 12.10 12.11 12.12 12.13 12.14 12.15 12.16 12.17 12.18 12.19 12.20 12.21 12.22 12.23 12.24 12.25 12.26 12.27 12.28 12.29 12.30 12.31 12.32 12.33 12.34 12.35 12.36 13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8 13.9 13.10 13.11 13.12 13.13 13.14 13.15 13.16 13.17 13.18 13.19 13.20 13.21 13.22 13.23 13.24 13.25 13.26 13.27 13.28 13.29 13.30 13.31 13.32 13.33 13.34 13.35 14.1 14.2 14.3 14.4 14.5 14.6 14.7 14.8 14.9 14.10 14.11
14.12 14.13
14.14 14.15 14.16 14.17 14.18 14.19 14.20 14.21 14.22 14.23
14.24 14.25
14.26 14.27 14.28 14.29 14.30 14.31 14.32 14.33 15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8 15.9 15.10 15.11 15.12 15.13 15.14 15.15 15.16 15.17 15.18 15.19 15.20 15.21 15.22 15.23 15.24 15.25 15.26 15.27 15.28 15.29 15.30 15.31 15.32 15.33 15.34 15.35 16.1 16.2 16.3 16.4 16.5 16.6 16.7 16.8 16.9 16.10 16.11 16.12 16.13 16.14 16.15 16.16 16.17 16.18 16.19 16.20 16.21 16.22 16.23 16.24 16.25 16.26 16.27 16.28 16.29 16.30 16.31 16.32 16.33 16.34 17.1 17.2 17.3 17.4 17.5 17.6 17.7 17.8 17.9 17.10 17.11 17.12 17.13 17.14 17.15 17.16 17.17 17.18
17.19 17.20
17.21 17.22 17.23 17.24 17.25 17.26 17.27 17.28 17.29 17.30 17.31 17.32 17.33 17.34 17.35 18.1 18.2 18.3 18.4 18.5 18.6 18.7 18.8 18.9 18.10 18.11 18.12 18.13 18.14 18.15 18.16 18.17 18.18 18.19 18.20 18.21 18.22
18.23 18.24
18.25 18.26 18.27 18.28 18.29 18.30 18.31 18.32 18.33 18.34 18.35 19.1 19.2 19.3 19.4 19.5 19.6 19.7 19.8
19.9 19.10
19.11 19.12 19.13 19.14 19.15 19.16 19.17 19.18 19.19 19.20 19.21 19.22 19.23 19.24
19.25 19.26
19.27 19.28 19.29 19.30 19.31
19.32 19.33
20.1 20.2 20.3 20.4 20.5 20.6 20.7 20.8 20.9 20.10 20.11 20.12
20.13
20.14 20.15
20.16 20.17 20.18 20.19 20.20 20.21 20.22 20.23 20.24 20.25 20.26 20.27 20.28 20.29 20.30 20.31 20.32 20.33 20.34 21.1 21.2 21.3 21.4 21.5 21.6 21.7 21.8 21.9 21.10 21.11 21.12 21.13 21.14 21.15 21.16 21.17 21.18 21.19 21.20 21.21 21.22 21.23 21.24 21.25 21.26 21.27 21.28 21.29 21.30 21.31 21.32 21.33 21.34 21.35 21.36 22.1 22.2 22.3 22.4 22.5 22.6 22.7 22.8 22.9 22.10 22.11 22.12 22.13 22.14 22.15 22.16 22.17 22.18 22.19 22.20 22.21 22.22 22.23 22.24 22.25 22.26
22.27 22.28
22.29 22.30 22.31 22.32 22.33 22.34 22.35 23.1 23.2 23.3 23.4 23.5 23.6 23.7 23.8 23.9 23.10 23.11 23.12 23.13 23.14 23.15 23.16 23.17 23.18 23.19 23.20 23.21 23.22 23.23 23.24 23.25 23.26 23.27 23.28 23.29 23.30 23.31 23.32 23.33 23.34 23.35 23.36 23.37 23.38 23.39 23.40 23.41 23.42 23.43 23.44 24.1 24.2 24.3 24.4 24.5 24.6 24.7 24.8 24.9 24.10 24.11 24.12 24.13 24.14 24.15
24.16 24.17
24.18 24.19 24.20 24.21 24.22 24.23 24.24 24.25 24.26 24.27 24.28 24.29 24.30 24.31 24.32 24.33 24.34 24.35 24.36 24.37 24.38 25.1 25.2 25.3 25.4 25.5 25.6 25.7 25.8 25.9 25.10 25.11 25.12 25.13 25.14 25.15 25.16 25.17 25.18 25.19 25.20 25.21 25.22 25.23 25.24 25.25 25.26 25.27 25.28 25.29 25.30 25.31 25.32 25.33 25.34 25.35 25.36 25.37 25.38 25.39 25.40 26.1 26.2 26.3
26.4 26.5
26.6 26.7 26.8 26.9 26.10 26.11 26.12 26.13 26.14 26.15 26.16 26.17 26.18 26.19 26.20 26.21 26.22 26.23 26.24 26.25 26.26 26.27 26.28 26.29
26.30 26.31
26.32 27.1 27.2 27.3 27.4 27.5 27.6 27.7 27.8 27.9 27.10 27.11 27.12 27.13 27.14 27.15 27.16 27.17 27.18 27.19 27.20 27.21 27.22 27.23 27.24 27.25 27.26 27.27 27.28 27.29 27.30 27.31 27.32 27.33 27.34 27.35 27.36
28.1 28.2
28.3 28.4
28.5 28.6 28.7 28.8 28.9 28.10 28.11 28.12 28.13 28.14 28.15 28.16 28.17 28.18 28.19 28.20 28.21 28.22 28.23 28.24 28.25 28.26 28.27 28.28 28.29 28.30 28.31 28.32 28.33 28.34 29.1 29.2 29.3 29.4 29.5 29.6 29.7 29.8 29.9 29.10 29.11 29.12 29.13 29.14 29.15 29.16 29.17 29.18 29.19 29.20 29.21 29.22 29.23 29.24 29.25 29.26 29.27 29.28 29.29 29.30 29.31 29.32 29.33 29.34 29.35 29.36 30.1 30.2 30.3 30.4
30.5 30.6
30.7 30.8 30.9 30.10 30.11 30.12 30.13 30.14 30.15 30.16 30.17 30.18 30.19 30.20 30.21
30.22
30.23 30.24 30.25 30.26 30.27 30.28 30.29 30.30 30.31 30.32 30.33 31.1 31.2 31.3 31.4 31.5 31.6 31.7
31.8 31.9
31.10 31.11 31.12 31.13 31.14 31.15 31.16 31.17 31.18 31.19 31.20 31.21 31.22 31.23 31.24
31.25 31.26
31.27 31.28 31.29 31.30 31.31 31.32 32.1 32.2
32.3 32.4
32.5 32.6 32.7 32.8 32.9 32.10 32.11 32.12 32.13 32.14 32.15 32.16 32.17 32.18 32.19 32.20 32.21 32.22 32.23 32.24 32.25 32.26 32.27 32.28 32.29
32.30
32.31 32.32 32.33 33.1 33.2 33.3 33.4 33.5 33.6 33.7 33.8
33.9 33.10
33.11 33.12 33.13 33.14 33.15 33.16 33.17
33.18 33.19
33.20 33.21 33.22 33.23 33.24 33.25 33.26 33.27 33.28 33.29 33.30 33.31 33.32 33.33 34.1 34.2 34.3 34.4 34.5 34.6 34.7 34.8 34.9 34.10 34.11 34.12 34.13 34.14 34.15 34.16 34.17 34.18 34.19 34.20 34.21 34.22 34.23 34.24 34.25 34.26 34.27
34.28 34.29
34.30 34.31 34.32 34.33 34.34 34.35 35.1 35.2 35.3 35.4 35.5 35.6 35.7 35.8 35.9 35.10 35.11 35.12 35.13 35.14 35.15 35.16 35.17 35.18 35.19 35.20 35.21 35.22 35.23
35.24 35.25
35.26 35.27 35.28 35.29 35.30 35.31
35.32 35.33
36.1 36.2 36.3 36.4 36.5 36.6
36.7 36.8
36.9 36.10 36.11 36.12 36.13 36.14 36.15 36.16 36.17 36.18 36.19 36.20 36.21 36.22 36.23 36.24 36.25 36.26 36.27
36.28 36.29
36.30 36.31 36.32 36.33 37.1 37.2 37.3 37.4 37.5 37.6 37.7 37.8 37.9 37.10 37.11 37.12 37.13 37.14 37.15 37.16 37.17 37.18 37.19 37.20 37.21 37.22 37.23 37.24 37.25 37.26 37.27 37.28 37.29 37.30 37.31
37.32 37.33
37.34 37.35 38.1 38.2 38.3 38.4 38.5 38.6 38.7 38.8
38.9 38.10 38.11 38.12 38.13 38.14
38.15 38.16
38.17 38.18 38.19 38.20 38.21 38.22 38.23 38.24 38.25 38.26 38.27 38.28 38.29 38.30 38.31 38.32 38.33 38.34 39.1 39.2 39.3 39.4 39.5
39.6
39.7 39.8 39.9 39.10 39.11 39.12 39.13 39.14 39.15 39.16
39.17 39.18
39.19 39.20 39.21 39.22 39.23 39.24
39.25 39.26
39.27 39.28
39.29 39.30 40.1 40.2 40.3 40.4 40.5 40.6 40.7 40.8 40.9
40.10 40.11 40.12 40.13 40.14 40.15 40.16 40.17 40.18 40.19 40.20
40.21 40.22 40.23 40.24 40.25 40.26 40.27 40.28 40.29 40.30 40.31 40.32 40.33 40.34 41.1 41.2 41.3 41.4 41.5 41.6 41.7
41.8 41.9 41.10 41.11 41.12 41.13 41.14 41.15 41.16 41.17 41.18 41.19 41.20 41.21 41.22
41.23 41.24 41.25 41.26 41.27 41.28 41.29 41.30 41.31 41.32 41.33 42.1 42.2
42.3 42.4 42.5 42.6 42.7 42.8 42.9 42.10 42.11 42.12 42.13
42.14 42.15
42.16 42.17 42.18 42.19 42.20 42.21 42.22 42.23 42.24 42.25 42.26
42.27 42.28
42.29 42.30 42.31 42.32 43.1 43.2 43.3 43.4 43.5 43.6 43.7 43.8 43.9 43.10 43.11 43.12 43.13 43.14 43.15 43.16 43.17 43.18 43.19 43.20
43.21 43.22
43.23 43.24 43.25 43.26 43.27 43.28 43.29 43.30 43.31 43.32 43.33 43.34 43.35 44.1 44.2 44.3 44.4 44.5
44.6
44.7 44.8 44.9 44.10 44.11 44.12 44.13 44.14 44.15 44.16 44.17 44.18 44.19 44.20 44.21 44.22 44.23 44.24 44.25 44.26 44.27
44.28
44.29 44.30 44.31 44.32 44.33 45.1 45.2 45.3 45.4 45.5 45.6 45.7 45.8 45.9 45.10 45.11 45.12 45.13 45.14 45.15
45.16
45.17 45.18 45.19 45.20 45.21 45.22 45.23 45.24 45.25 45.26 45.27 45.28 45.29 45.30 45.31 45.32 45.33 45.34 46.1 46.2
46.3 46.4
46.5 46.6 46.7 46.8 46.9 46.10 46.11 46.12 46.13 46.14 46.15
46.16
46.17 46.18 46.19 46.20 46.21 46.22 46.23 46.24 46.25 46.26 46.27 46.28 46.29 46.30 46.31 46.32 46.33 47.1 47.2 47.3 47.4 47.5 47.6 47.7 47.8 47.9 47.10 47.11 47.12 47.13 47.14 47.15 47.16 47.17 47.18 47.19 47.20 47.21 47.22 47.23 47.24 47.25 47.26 47.27 47.28 47.29 47.30 47.31 47.32 47.33
47.34 47.35 48.1 48.2 48.3 48.4 48.5 48.6 48.7 48.8 48.9 48.10 48.11 48.12 48.13 48.14
48.15 48.16 48.17 48.18 48.19 48.20 48.21 48.22 48.23 48.24 48.25 48.26 48.27 48.28 48.29 48.30 48.31 48.32
48.33 48.34 49.1 49.2 49.3
49.4
49.5 49.6 49.7
49.8
49.9 49.10 49.11 49.12 49.13 49.14 49.15 49.16 49.17 49.18 49.19 49.20 49.21 49.22 49.23 49.24 49.25 49.26 49.27 49.28 49.29
49.30 49.31 50.1 50.2 50.3 50.4 50.5 50.6
50.7 50.8 50.9 50.10
50.11 50.12
50.13 50.14 50.15
50.16
50.17 50.18
50.19 50.20
50.21 50.22
50.23 50.24 50.25 50.26 50.27 50.28 50.29 50.30 50.31 51.1 51.2 51.3 51.4 51.5 51.6 51.7 51.8 51.9 51.10 51.11 51.12 51.13 51.14 51.15 51.16 51.17 51.18 51.19
51.20 51.21 51.22 51.23 51.24 51.25
51.26 51.27 51.28 51.29 51.30 51.31 51.32 51.33
51.34
52.1 52.2 52.3 52.4 52.5 52.6 52.7 52.8
52.9
52.10 52.11 52.12 52.13 52.14 52.15 52.16 52.17 52.18 52.19
52.20
52.21 52.22 52.23 52.24 52.25 52.26 52.27 52.28 52.29 52.30 52.31 52.32 52.33 53.1 53.2 53.3 53.4 53.5 53.6 53.7 53.8 53.9 53.10 53.11 53.12 53.13 53.14 53.15 53.16 53.17
53.18
53.19 53.20 53.21 53.22
53.23 53.24 53.25 53.26
53.27 53.28
53.29 53.30 53.31 53.32 53.33 54.1 54.2
54.3
54.4 54.5 54.6 54.7 54.8 54.9 54.10 54.11 54.12 54.13 54.14 54.15 54.16 54.17 54.18 54.19 54.20 54.21 54.22 54.23 54.24 54.25 54.26 54.27 54.28 54.29 54.30 54.31 54.32 54.33 54.34 54.35 55.1 55.2 55.3 55.4 55.5 55.6 55.7 55.8 55.9 55.10 55.11 55.12 55.13 55.14 55.15 55.16 55.17 55.18 55.19
55.20
55.21 55.22 55.23 55.24 55.25 55.26 55.27 55.28 55.29 55.30
55.31
55.32 55.33 56.1 56.2
56.3 56.4 56.5 56.6 56.7 56.8 56.9 56.10 56.11 56.12 56.13 56.14 56.15
56.16
56.17 56.18 56.19 56.20 56.21 56.22 56.23 56.24 56.25
56.26
56.27 56.28 56.29 56.30 56.31 56.32 57.1 57.2 57.3 57.4 57.5 57.6 57.7
57.8 57.9 57.10 57.11 57.12 57.13 57.14 57.15 57.16 57.17 57.18 57.19 57.20 57.21 57.22 57.23 57.24
57.25 57.26
57.27 57.28 57.29 57.30 57.31
57.32
58.1 58.2 58.3 58.4 58.5 58.6 58.7 58.8 58.9 58.10 58.11 58.12 58.13
58.14 58.15 58.16 58.17 58.18 58.19 58.20 58.21 58.22 58.23 58.24 58.25 58.26 58.27 58.28 58.29 58.30 58.31 58.32 58.33 58.34 58.35 59.1 59.2 59.3 59.4 59.5 59.6 59.7 59.8
59.9
59.10 59.11 59.12 59.13 59.14 59.15 59.16 59.17 59.18 59.19 59.20 59.21 59.22 59.23 59.24 59.25 59.26 59.27 59.28 59.29 59.30 59.31 59.32 59.33 59.34 59.35 59.36 59.37 59.38
59.39
60.1 60.2 60.3 60.4 60.5 60.6 60.7 60.8 60.9 60.10 60.11 60.12 60.13 60.14
60.15
60.16 60.17 60.18 60.19 60.20 60.21 60.22 60.23 60.24 60.25 60.26 60.27 60.28 60.29 60.30 60.31 60.32 60.33 60.34 61.1 61.2 61.3 61.4
61.5
61.6 61.7 61.8 61.9 61.10 61.11
61.12
61.13 61.14 61.15 61.16 61.17 61.18 61.19 61.20 61.21 61.22 61.23 61.24 61.25 61.26 61.27 61.28 61.29 61.30 61.31 61.32 62.1 62.2 62.3
62.4
62.5 62.6 62.7 62.8 62.9 62.10 62.11 62.12 62.13
62.14
62.15 62.16 62.17 62.18 62.19 62.20 62.21 62.22 62.23 62.24 62.25 62.26 62.27 62.28 62.29 62.30 62.31 62.32 62.33 63.1 63.2 63.3 63.4 63.5 63.6 63.7 63.8 63.9 63.10 63.11 63.12 63.13 63.14 63.15 63.16 63.17 63.18 63.19 63.20 63.21 63.22 63.23 63.24 63.25 63.26 63.27 63.28 63.29 63.30 63.31 63.32
63.33
64.1 64.2
64.3
64.4 64.5
64.6 64.7 64.8 64.9 64.10 64.11 64.12 64.13 64.14 64.15 64.16 64.17 64.18 64.19 64.20 64.21 64.22 64.23 64.24 64.25 64.26 64.27 64.28 64.29 64.30 64.31 64.32 64.33 65.1 65.2
65.3 65.4
65.5 65.6 65.7 65.8 65.9 65.10 65.11 65.12 65.13 65.14 65.15 65.16 65.17 65.18 65.19 65.20 65.21 65.22 65.23 65.24 65.25 65.26 65.27 65.28 65.29 65.30 65.31 65.32 65.33 65.34 65.35 66.1 66.2 66.3 66.4 66.5 66.6 66.7 66.8 66.9 66.10 66.11 66.12 66.13 66.14 66.15 66.16 66.17 66.18 66.19 66.20 66.21 66.22 66.23 66.24 66.25 66.26 66.27 66.28 66.29 66.30 66.31 66.32 66.33 66.34 66.35 67.1 67.2 67.3 67.4 67.5 67.6 67.7 67.8 67.9 67.10 67.11 67.12 67.13
67.14 67.15 67.16
67.17 67.18 67.19 67.20 67.21 67.22 67.23 67.24 67.25 67.26 67.27 67.28 67.29 67.30 67.31 67.32 67.33 67.34 68.1 68.2 68.3 68.4 68.5 68.6 68.7 68.8 68.9 68.10 68.11
68.12
68.13 68.14 68.15 68.16
68.17
68.18 68.19 68.20 68.21 68.22 68.23 68.24 68.25 68.26 68.27 68.28 68.29 68.30 68.31 68.32 68.33 69.1 69.2 69.3 69.4 69.5 69.6
69.7 69.8 69.9 69.10 69.11 69.12 69.13 69.14 69.15 69.16 69.17 69.18 69.19 69.20 69.21 69.22 69.23 69.24 69.25 69.26 69.27 69.28 69.29 69.30 69.31 69.32 69.33 70.1 70.2 70.3
70.4 70.5
70.6 70.7 70.8 70.9 70.10 70.11 70.12 70.13 70.14 70.15 70.16 70.17 70.18 70.19 70.20 70.21 70.22 70.23 70.24 70.25 70.26 70.27 70.28 70.29 70.30 70.31 70.32 70.33 70.34 71.1 71.2 71.3 71.4 71.5 71.6 71.7 71.8 71.9 71.10 71.11 71.12 71.13 71.14 71.15 71.16 71.17 71.18 71.19 71.20 71.21
71.22 71.23 71.24 71.25 71.26 71.27 71.28 71.29 71.30 71.31 71.32 71.33 71.34 71.35 72.1 72.2 72.3 72.4 72.5 72.6 72.7 72.8 72.9 72.10
72.11 72.12
72.13 72.14 72.15 72.16 72.17 72.18 72.19 72.20 72.21 72.22 72.23 72.24 72.25 72.26 72.27 72.28 72.29 72.30 72.31 72.32 72.33 72.34 72.35 73.1 73.2 73.3 73.4 73.5 73.6 73.7 73.8 73.9 73.10 73.11 73.12 73.13 73.14 73.15 73.16 73.17 73.18 73.19 73.20 73.21 73.22 73.23 73.24 73.25 73.26
73.27 73.28
73.29 73.30 73.31 73.32 73.33 73.34 74.1 74.2 74.3 74.4 74.5 74.6 74.7 74.8 74.9 74.10 74.11 74.12 74.13 74.14 74.15 74.16 74.17 74.18 74.19 74.20 74.21 74.22 74.23 74.24 74.25 74.26 74.27 74.28 74.29
74.30 74.31 74.32
74.33 74.34 74.35 75.1 75.2 75.3 75.4 75.5 75.6 75.7 75.8 75.9 75.10 75.11 75.12 75.13 75.14 75.15 75.16 75.17 75.18 75.19 75.20 75.21 75.22 75.23 75.24 75.25 75.26 75.27 75.28 75.29 75.30 75.31 75.32 75.33 75.34 75.35 75.36 76.1 76.2 76.3 76.4 76.5 76.6 76.7 76.8 76.9 76.10 76.11 76.12 76.13 76.14 76.15 76.16 76.17 76.18 76.19 76.20 76.21 76.22 76.23 76.24 76.25 76.26 76.27 76.28 76.29 76.30 76.31 76.32 76.33 76.34 77.1 77.2 77.3 77.4 77.5 77.6 77.7 77.8 77.9 77.10 77.11 77.12 77.13 77.14 77.15 77.16 77.17 77.18 77.19 77.20 77.21 77.22 77.23 77.24 77.25 77.26 77.27 77.28 77.29 77.30 77.31 77.32 77.33 77.34 77.35 77.36 78.1 78.2 78.3 78.4 78.5 78.6 78.7 78.8 78.9 78.10 78.11 78.12 78.13 78.14 78.15 78.16 78.17 78.18 78.19 78.20 78.21 78.22 78.23 78.24 78.25 78.26 78.27 78.28 78.29 78.30 78.31 78.32 78.33 78.34 78.35 78.36 79.1 79.2
79.3 79.4
79.5 79.6 79.7 79.8 79.9 79.10 79.11 79.12 79.13 79.14 79.15 79.16 79.17 79.18 79.19 79.20 79.21 79.22 79.23 79.24 79.25 79.26 79.27 79.28 79.29 79.30 79.31 79.32 79.33 79.34 79.35 80.1 80.2 80.3 80.4 80.5 80.6 80.7 80.8 80.9 80.10 80.11 80.12 80.13 80.14 80.15 80.16 80.17 80.18 80.19 80.20 80.21 80.22 80.23 80.24 80.25 80.26 80.27 80.28 80.29 80.30 80.31 80.32 80.33 80.34 80.35 80.36 81.1 81.2 81.3 81.4 81.5 81.6 81.7 81.8 81.9 81.10 81.11 81.12 81.13 81.14 81.15 81.16 81.17 81.18 81.19 81.20 81.21 81.22 81.23 81.24 81.25 81.26 81.27 81.28 81.29 81.30 81.31 81.32 81.33 81.34 81.35 82.1 82.2 82.3 82.4 82.5 82.6 82.7 82.8 82.9 82.10 82.11 82.12
82.13 82.14
82.15 82.16 82.17 82.18 82.19 82.20 82.21 82.22 82.23 82.24 82.25 82.26 82.27 82.28 82.29 82.30 82.31 82.32 82.33 82.34 83.1 83.2 83.3 83.4 83.5 83.6 83.7 83.8 83.9 83.10 83.11 83.12 83.13 83.14 83.15 83.16 83.17 83.18 83.19 83.20 83.21 83.22 83.23 83.24 83.25 83.26 83.27 83.28 83.29 83.30 83.31 83.32 83.33 83.34 83.35 84.1 84.2 84.3 84.4 84.5 84.6 84.7 84.8 84.9 84.10 84.11 84.12 84.13 84.14 84.15 84.16 84.17 84.18 84.19 84.20 84.21 84.22 84.23 84.24 84.25 84.26 84.27 84.28 84.29 84.30 84.31 84.32 84.33 84.34 84.35 84.36 85.1 85.2 85.3 85.4 85.5 85.6 85.7 85.8 85.9 85.10 85.11 85.12 85.13 85.14 85.15 85.16 85.17 85.18 85.19 85.20 85.21 85.22 85.23
85.24 85.25
85.26 85.27 85.28 85.29 85.30 85.31 85.32 85.33 86.1 86.2 86.3 86.4 86.5 86.6 86.7 86.8 86.9 86.10 86.11 86.12 86.13 86.14 86.15 86.16 86.17 86.18 86.19 86.20 86.21 86.22 86.23 86.24 86.25 86.26 86.27 86.28 86.29 86.30 86.31 86.32 86.33 86.34 86.35 86.36 87.1 87.2 87.3 87.4 87.5 87.6 87.7 87.8 87.9 87.10 87.11 87.12 87.13 87.14 87.15 87.16 87.17 87.18 87.19 87.20 87.21 87.22 87.23 87.24 87.25 87.26 87.27 87.28 87.29 87.30 87.31 87.32 87.33 87.34 87.35 88.1 88.2 88.3 88.4 88.5 88.6 88.7 88.8 88.9 88.10 88.11 88.12 88.13 88.14 88.15 88.16 88.17 88.18 88.19
88.20 88.21
88.22 88.23 88.24 88.25 88.26 88.27
88.28 88.29
88.30 88.31 88.32 88.33 89.1 89.2 89.3 89.4 89.5 89.6 89.7 89.8
89.9 89.10 89.11
89.12 89.13 89.14 89.15 89.16 89.17
89.18 89.19
89.20 89.21 89.22 89.23 89.24 89.25 89.26 89.27 89.28 89.29 89.30 89.31 89.32 89.33 90.1 90.2 90.3 90.4 90.5 90.6 90.7 90.8 90.9 90.10 90.11 90.12 90.13 90.14 90.15 90.16 90.17 90.18 90.19 90.20 90.21 90.22 90.23 90.24 90.25 90.26 90.27 90.28 90.29 90.30 90.31 90.32 90.33 90.34 90.35 90.36
91.1 91.2
91.3 91.4 91.5 91.6 91.7 91.8 91.9 91.10 91.11 91.12 91.13 91.14 91.15 91.16 91.17 91.18 91.19 91.20 91.21 91.22 91.23 91.24
91.25 91.26
91.27 91.28 91.29 91.30 91.31 91.32 91.33 92.1 92.2 92.3 92.4 92.5 92.6 92.7 92.8 92.9
92.10 92.11
92.12 92.13 92.14 92.15 92.16 92.17 92.18 92.19 92.20 92.21 92.22 92.23 92.24 92.25 92.26 92.27 92.28 92.29 92.30 92.31 92.32 92.33 92.34 92.35 93.1 93.2 93.3 93.4 93.5 93.6 93.7 93.8 93.9 93.10 93.11 93.12 93.13 93.14 93.15 93.16 93.17 93.18 93.19 93.20 93.21 93.22 93.23 93.24 93.25 93.26 93.27 93.28 93.29
93.30 93.31
93.32 93.33 93.34 94.1 94.2 94.3 94.4 94.5 94.6 94.7 94.8 94.9 94.10 94.11 94.12 94.13 94.14 94.15 94.16 94.17 94.18 94.19 94.20 94.21 94.22 94.23 94.24 94.25 94.26 94.27 94.28 94.29 94.30 94.31 94.32 94.33 94.34 94.35 95.1 95.2 95.3 95.4 95.5 95.6 95.7 95.8 95.9 95.10 95.11 95.12 95.13 95.14 95.15 95.16 95.17 95.18 95.19 95.20 95.21 95.22 95.23
95.24 95.25
95.26 95.27 95.28 95.29 95.30 95.31 95.32 95.33 95.34 95.35 96.1 96.2 96.3 96.4 96.5 96.6 96.7 96.8 96.9 96.10 96.11 96.12 96.13 96.14 96.15 96.16 96.17 96.18 96.19 96.20 96.21 96.22 96.23 96.24 96.25 96.26 96.27 96.28 96.29 96.30 96.31 96.32 96.33 96.34 96.35 96.36 97.1 97.2 97.3 97.4 97.5 97.6 97.7 97.8 97.9 97.10 97.11 97.12 97.13 97.14 97.15 97.16
97.17 97.18
97.19 97.20 97.21 97.22 97.23 97.24 97.25 97.26 97.27 97.28 97.29 97.30 97.31 97.32 97.33 97.34 97.35 98.1 98.2
98.3 98.4
98.5 98.6 98.7 98.8 98.9 98.10 98.11 98.12 98.13 98.14 98.15 98.16 98.17 98.18 98.19 98.20 98.21 98.22 98.23 98.24 98.25 98.26 98.27
98.28 98.29
98.30 98.31 98.32 98.33 99.1 99.2 99.3 99.4 99.5 99.6 99.7 99.8 99.9 99.10 99.11 99.12 99.13 99.14 99.15
99.16 99.17
99.18 99.19 99.20 99.21 99.22 99.23 99.24
99.25 99.26
99.27 99.28 99.29 99.30 99.31 99.32 99.33 100.1 100.2 100.3 100.4 100.5 100.6 100.7 100.8 100.9 100.10
100.11
100.12 100.13 100.14 100.15 100.16 100.17 100.18 100.19 100.20 100.21 100.22 100.23 100.24 100.25 100.26 100.27 100.28 100.29 100.30 100.31 100.32 100.33 100.34 100.35 101.1 101.2 101.3 101.4 101.5 101.6 101.7 101.8 101.9
101.10
101.11 101.12 101.13 101.14 101.15 101.16 101.17 101.18 101.19 101.20 101.21 101.22 101.23 101.24 101.25 101.26 101.27 101.28 101.29
101.30
101.31 101.32 101.33 102.1 102.2 102.3 102.4
102.5
102.6 102.7 102.8 102.9 102.10 102.11 102.12 102.13 102.14 102.15 102.16 102.17 102.18 102.19 102.20 102.21 102.22 102.23 102.24 102.25 102.26 102.27 102.28 102.29 102.30 102.31 102.32 102.33 102.34 103.1 103.2 103.3 103.4 103.5 103.6 103.7 103.8 103.9 103.10 103.11 103.12 103.13 103.14 103.15 103.16 103.17 103.18 103.19 103.20 103.21 103.22 103.23 103.24 103.25 103.26 103.27 103.28 103.29 103.30 103.31 103.32 103.33 103.34 103.35 103.36
104.1 104.2
104.3 104.4 104.5 104.6 104.7 104.8 104.9 104.10 104.11 104.12 104.13 104.14 104.15 104.16 104.17 104.18 104.19 104.20 104.21 104.22 104.23 104.24 104.25 104.26 104.27 104.28 104.29 104.30 104.31 104.32 104.33 104.34 104.35 105.1 105.2 105.3 105.4 105.5 105.6 105.7 105.8 105.9 105.10 105.11 105.12 105.13 105.14 105.15 105.16
105.17 105.18
105.19 105.20 105.21 105.22 105.23 105.24 105.25 105.26 105.27 105.28 105.29 105.30 105.31 105.32 105.33 105.34 106.1 106.2 106.3 106.4 106.5 106.6 106.7 106.8 106.9 106.10 106.11 106.12 106.13 106.14 106.15 106.16 106.17 106.18 106.19 106.20 106.21 106.22 106.23 106.24 106.25 106.26 106.27 106.28 106.29 106.30 106.31 106.32 106.33 106.34 106.35 106.36 107.1 107.2 107.3 107.4 107.5 107.6 107.7 107.8 107.9 107.10 107.11 107.12 107.13
107.14 107.15
107.16 107.17 107.18 107.19 107.20 107.21 107.22 107.23 107.24 107.25 107.26 107.27 107.28 107.29 107.30 107.31 107.32 107.33 107.34 107.35 107.36 107.37 108.1 108.2 108.3 108.4 108.5 108.6 108.7 108.8 108.9 108.10 108.11 108.12 108.13 108.14 108.15 108.16 108.17 108.18 108.19 108.20 108.21 108.22 108.23 108.24 108.25 108.26 108.27 108.28 108.29 108.30 108.31 108.32 108.33 108.34
108.35 108.36
108.37 109.1 109.2 109.3 109.4 109.5 109.6 109.7 109.8 109.9 109.10 109.11 109.12 109.13 109.14 109.15 109.16 109.17 109.18 109.19 109.20 109.21 109.22 109.23 109.24 109.25 109.26 109.27 109.28 109.29 109.30 109.31 109.32 109.33 109.34 109.35 109.36 110.1 110.2 110.3 110.4 110.5 110.6 110.7 110.8 110.9 110.10 110.11 110.12 110.13 110.14 110.15 110.16 110.17 110.18 110.19 110.20 110.21 110.22 110.23 110.24 110.25 110.26 110.27 110.28 110.29 110.30 110.31 110.32 110.33 110.34 110.35 110.36 111.1 111.2 111.3 111.4 111.5 111.6 111.7 111.8 111.9 111.10 111.11 111.12 111.13 111.14 111.15 111.16
111.17 111.18
111.19 111.20 111.21 111.22 111.23 111.24 111.25 111.26 111.27 111.28 111.29 111.30 111.31 111.32 111.33 111.34 111.35 112.1 112.2 112.3 112.4 112.5 112.6 112.7 112.8 112.9 112.10 112.11 112.12 112.13 112.14 112.15 112.16 112.17 112.18 112.19 112.20 112.21 112.22 112.23 112.24 112.25 112.26 112.27 112.28 112.29 112.30 112.31 112.32 112.33 112.34 112.35 112.36 113.1 113.2 113.3 113.4 113.5 113.6 113.7 113.8 113.9 113.10 113.11 113.12 113.13 113.14
113.15 113.16
113.17 113.18 113.19 113.20 113.21 113.22 113.23
113.24 113.25
113.26 113.27 113.28 113.29 113.30 113.31 113.32 113.33 114.1 114.2 114.3 114.4 114.5
114.6 114.7 114.8 114.9 114.10
114.11 114.12
114.13 114.14 114.15
114.16 114.17
114.18 114.19
114.20 114.21 114.22 114.23 114.24 114.25 114.26 114.27 114.28
114.29 114.30
115.1 115.2 115.3 115.4 115.5 115.6 115.7 115.8 115.9 115.10 115.11 115.12 115.13 115.14 115.15 115.16 115.17 115.18 115.19 115.20 115.21 115.22 115.23 115.24 115.25 115.26 115.27 115.28 115.29 115.30 115.31 115.32 115.33 115.34 115.35 116.1 116.2 116.3 116.4 116.5 116.6 116.7 116.8 116.9 116.10 116.11 116.12 116.13 116.14 116.15 116.16 116.17 116.18 116.19 116.20 116.21 116.22 116.23 116.24 116.25 116.26
116.27 116.28
116.29 116.30 116.31 116.32 116.33 116.34 117.1 117.2 117.3 117.4 117.5 117.6 117.7 117.8 117.9 117.10 117.11 117.12 117.13 117.14 117.15 117.16 117.17 117.18 117.19 117.20
117.21 117.22
117.23 117.24 117.25 117.26 117.27 117.28 117.29 117.30 117.31 117.32 117.33 117.34 118.1 118.2
118.3 118.4
118.5 118.6 118.7 118.8 118.9 118.10 118.11 118.12 118.13 118.14 118.15
118.16 118.17
118.18 118.19 118.20 118.21 118.22 118.23 118.24 118.25 118.26 118.27 118.28 118.29 118.30 118.31 118.32 118.33 119.1 119.2 119.3 119.4 119.5 119.6 119.7 119.8 119.9 119.10 119.11 119.12 119.13 119.14 119.15 119.16 119.17 119.18 119.19 119.20 119.21 119.22 119.23 119.24 119.25 119.26 119.27 119.28 119.29 119.30 119.31 119.32 119.33
119.34 119.35
120.1 120.2 120.3 120.4 120.5 120.6 120.7 120.8 120.9 120.10 120.11 120.12 120.13 120.14 120.15 120.16 120.17 120.18 120.19 120.20 120.21 120.22 120.23 120.24
120.25 120.26
120.27 120.28 120.29 120.30 120.31 120.32 120.33 120.34 121.1 121.2 121.3 121.4 121.5 121.6
121.7 121.8
121.9 121.10 121.11 121.12 121.13 121.14 121.15 121.16 121.17 121.18 121.19
121.20 121.21
121.22 121.23 121.24 121.25 121.26 121.27 121.28 121.29 121.30 121.31 121.32 122.1 122.2 122.3
122.4 122.5
122.6 122.7 122.8 122.9 122.10 122.11 122.12 122.13 122.14 122.15 122.16 122.17 122.18 122.19 122.20
122.21 122.22
122.23 122.24 122.25 122.26 122.27
122.28 122.29
122.30 122.31 122.32 123.1 123.2 123.3 123.4
123.5 123.6
123.7 123.8 123.9 123.10 123.11 123.12 123.13 123.14 123.15 123.16 123.17 123.18 123.19 123.20 123.21 123.22 123.23 123.24 123.25 123.26 123.27 123.28 123.29 123.30 123.31 123.32 123.33 123.34 123.35 124.1 124.2 124.3 124.4 124.5 124.6 124.7 124.8 124.9 124.10
124.11 124.12
124.13 124.14 124.15 124.16
124.17 124.18
124.19 124.20
124.21 124.22 124.23 124.24 124.25 124.26 124.27 124.28 124.29 124.30 124.31 124.32 125.1 125.2 125.3 125.4 125.5 125.6 125.7 125.8 125.9 125.10 125.11 125.12 125.13 125.14 125.15 125.16 125.17 125.18 125.19 125.20 125.21 125.22 125.23 125.24 125.25 125.26 125.27 125.28 125.29 125.30 125.31 125.32 125.33 125.34 125.35 125.36 126.1 126.2 126.3 126.4 126.5 126.6 126.7 126.8 126.9 126.10 126.11 126.12 126.13 126.14 126.15 126.16 126.17 126.18 126.19 126.20 126.21 126.22 126.23 126.24 126.25 126.26 126.27 126.28 126.29 126.30 126.31 126.32 126.33 126.34 126.35 126.36 127.1 127.2 127.3 127.4 127.5 127.6 127.7 127.8 127.9 127.10 127.11 127.12 127.13 127.14 127.15 127.16 127.17 127.18 127.19 127.20 127.21 127.22 127.23 127.24 127.25 127.26 127.27 127.28 127.29
127.30
127.31 127.32 127.33 127.34 128.1 128.2 128.3 128.4 128.5 128.6 128.7 128.8 128.9 128.10 128.11 128.12 128.13 128.14 128.15 128.16 128.17 128.18 128.19 128.20 128.21 128.22 128.23 128.24 128.25 128.26 128.27 128.28 128.29 128.30 128.31 128.32 128.33 128.34 128.35 128.36 129.1 129.2 129.3 129.4 129.5 129.6 129.7 129.8 129.9 129.10 129.11 129.12 129.13 129.14 129.15 129.16 129.17 129.18 129.19 129.20 129.21 129.22 129.23 129.24 129.25 129.26 129.27 129.28 129.29 129.30 129.31 129.32 129.33 129.34 129.35 129.36 130.1 130.2 130.3 130.4 130.5 130.6 130.7 130.8
130.9 130.10
130.11 130.12 130.13 130.14 130.15 130.16 130.17 130.18 130.19 130.20 130.21 130.22 130.23 130.24 130.25 130.26 130.27
130.28 130.29
130.30 130.31 130.32 130.33 131.1 131.2 131.3 131.4 131.5 131.6 131.7 131.8 131.9 131.10 131.11
131.12 131.13
131.14 131.15 131.16 131.17 131.18 131.19 131.20 131.21 131.22 131.23 131.24 131.25 131.26 131.27 131.28 131.29
131.30 131.31
131.32 131.33 132.1 132.2 132.3 132.4 132.5 132.6 132.7 132.8 132.9 132.10 132.11 132.12 132.13 132.14 132.15 132.16 132.17 132.18 132.19 132.20 132.21 132.22 132.23
132.24 132.25
132.26 132.27 132.28 132.29 132.30 132.31 132.32 132.33 132.34 133.1 133.2 133.3 133.4 133.5 133.6 133.7 133.8 133.9 133.10 133.11 133.12 133.13 133.14 133.15
133.16 133.17
133.18 133.19 133.20 133.21 133.22 133.23 133.24 133.25 133.26 133.27 133.28 133.29 133.30 133.31 133.32 133.33 133.34 134.1 134.2 134.3 134.4 134.5 134.6 134.7 134.8 134.9 134.10 134.11 134.12 134.13 134.14 134.15 134.16 134.17 134.18 134.19 134.20 134.21 134.22 134.23 134.24 134.25 134.26 134.27 134.28 134.29 134.30 134.31 134.32 134.33 134.34 134.35 135.1 135.2 135.3 135.4 135.5 135.6 135.7 135.8 135.9 135.10 135.11 135.12 135.13 135.14 135.15 135.16 135.17 135.18 135.19 135.20 135.21 135.22 135.23 135.24 135.25
135.26 135.27
135.28 135.29 135.30 135.31 135.32 135.33 135.34 136.1 136.2 136.3 136.4 136.5 136.6 136.7 136.8 136.9 136.10 136.11 136.12 136.13 136.14 136.15 136.16 136.17 136.18 136.19 136.20 136.21 136.22 136.23 136.24 136.25 136.26 136.27 136.28 136.29 136.30 136.31 136.32 136.33
136.34 136.35
137.1 137.2 137.3 137.4 137.5 137.6 137.7 137.8 137.9 137.10 137.11 137.12 137.13 137.14 137.15 137.16
137.17 137.18
137.19 137.20 137.21 137.22 137.23 137.24 137.25 137.26 137.27 137.28 137.29 137.30 137.31 137.32 137.33 137.34 137.35
138.1 138.2
138.3 138.4 138.5 138.6 138.7 138.8 138.9 138.10 138.11 138.12 138.13 138.14 138.15 138.16 138.17 138.18 138.19 138.20 138.21 138.22 138.23 138.24 138.25 138.26 138.27 138.28 138.29 138.30 138.31 138.32 138.33
138.34 138.35
139.1 139.2 139.3 139.4 139.5 139.6 139.7 139.8 139.9 139.10 139.11 139.12 139.13 139.14 139.15 139.16 139.17 139.18 139.19 139.20 139.21 139.22 139.23 139.24
139.25 139.26
139.27 139.28 139.29 139.30 139.31 139.32 139.33 139.34 139.35 140.1 140.2
140.3 140.4
140.5 140.6 140.7 140.8 140.9 140.10 140.11 140.12 140.13 140.14 140.15 140.16 140.17 140.18 140.19 140.20 140.21 140.22 140.23 140.24 140.25 140.26 140.27 140.28 140.29 140.30 140.31 140.32 140.33 140.34 141.1 141.2
141.3 141.4 141.5
141.6 141.7 141.8 141.9 141.10 141.11 141.12 141.13 141.14 141.15 141.16 141.17 141.18 141.19 141.20 141.21 141.22 141.23 141.24 141.25 141.26 141.27 141.28 141.29 141.30 141.31 141.32 141.33 141.34 141.35 142.1 142.2 142.3 142.4 142.5 142.6 142.7 142.8 142.9 142.10 142.11
142.12
142.13 142.14 142.15 142.16 142.17 142.18 142.19 142.20 142.21 142.22 142.23 142.24 142.25 142.26 142.27 142.28 142.29 142.30 142.31 142.32 142.33
142.34
143.1 143.2 143.3 143.4 143.5 143.6 143.7 143.8 143.9 143.10 143.11 143.12 143.13 143.14 143.15 143.16
143.17
143.18 143.19 143.20 143.21 143.22 143.23 143.24 143.25 143.26 143.27 143.28 143.29 143.30 143.31 143.32 143.33 143.34 143.35 144.1 144.2 144.3 144.4 144.5 144.6 144.7 144.8
144.9 144.10
144.11 144.12 144.13 144.14 144.15 144.16 144.17 144.18 144.19 144.20 144.21 144.22 144.23
144.24
144.25 144.26 144.27 144.28 144.29 144.30 144.31 144.32 145.1 145.2
145.3
145.4 145.5 145.6 145.7 145.8
145.9 145.10 145.11 145.12 145.13 145.14 145.15 145.16 145.17
145.18 145.19 145.20 145.21 145.22 145.23 145.24 145.25 145.26 145.27 145.28 145.29
145.30 145.31
146.1 146.2 146.3 146.4 146.5 146.6 146.7 146.8 146.9 146.10 146.11 146.12 146.13 146.14 146.15 146.16 146.17 146.18 146.19 146.20 146.21 146.22 146.23 146.24 146.25 146.26 146.27 146.28 146.29 146.30 146.31 146.32 146.33 146.34 146.35 146.36 147.1 147.2 147.3 147.4 147.5 147.6 147.7 147.8 147.9 147.10 147.11
147.12 147.13 147.14
147.15 147.16 147.17 147.18 147.19 147.20 147.21
147.22 147.23 147.24
147.25 147.26 147.27 147.28 147.29 147.30 147.31 147.32 147.33 148.1 148.2 148.3 148.4 148.5 148.6 148.7 148.8 148.9 148.10 148.11 148.12 148.13 148.14 148.15 148.16 148.17 148.18 148.19 148.20 148.21 148.22 148.23 148.24 148.25 148.26 148.27 148.28 148.29 148.30 148.31 148.32 148.33 148.34 148.35 149.1 149.2 149.3
149.4 149.5 149.6
149.7 149.8 149.9 149.10 149.11 149.12 149.13 149.14 149.15 149.16 149.17 149.18 149.19 149.20 149.21 149.22 149.23 149.24 149.25 149.26 149.27 149.28 149.29 149.30 149.31
149.32 149.33 149.34
150.1 150.2 150.3 150.4 150.5 150.6 150.7 150.8 150.9 150.10 150.11
150.12 150.13 150.14
150.15 150.16 150.17 150.18 150.19 150.20 150.21 150.22 150.23 150.24 150.25 150.26 150.27 150.28
150.29 150.30 150.31
150.32 151.1 151.2 151.3 151.4 151.5 151.6 151.7 151.8 151.9 151.10
151.11
151.12 151.13 151.14 151.15 151.16 151.17 151.18 151.19 151.20 151.21 151.22 151.23
151.24
151.25 151.26 151.27 151.28 151.29 151.30 151.31 151.32 152.1 152.2 152.3 152.4
152.5
152.6 152.7 152.8 152.9 152.10 152.11 152.12
152.13
152.14 152.15 152.16 152.17 152.18 152.19 152.20 152.21 152.22 152.23 152.24 152.25 152.26 152.27 152.28 152.29 152.30 152.31 152.32 152.33
153.1 153.2 153.3
153.4 153.5 153.6 153.7 153.8 153.9 153.10 153.11 153.12 153.13 153.14 153.15 153.16 153.17 153.18
153.19
153.20 153.21 153.22
153.23
153.24 153.25
153.26 153.27 153.28 153.29 153.30 153.31 153.32
154.1 154.2 154.3
154.4 154.5 154.6 154.7 154.8 154.9 154.10 154.11 154.12 154.13 154.14 154.15 154.16 154.17 154.18 154.19 154.20
154.21
154.22 154.23 154.24 154.25 154.26 154.27 154.28 154.29 154.30 154.31 154.32 154.33 154.34 155.1 155.2 155.3 155.4 155.5 155.6 155.7 155.8 155.9 155.10 155.11 155.12 155.13 155.14 155.15 155.16 155.17 155.18 155.19 155.20 155.21 155.22 155.23 155.24 155.25 155.26 155.27 155.28 155.29 155.30
155.31 155.32
155.33 155.34 155.35 156.1 156.2 156.3 156.4 156.5 156.6 156.7 156.8 156.9 156.10 156.11 156.12 156.13 156.14 156.15 156.16 156.17 156.18 156.19
156.20 156.21 156.22
156.23 156.24 156.25 156.26 156.27 156.28 156.29 156.30 156.31 156.32 156.33 156.34 156.35 157.1 157.2 157.3 157.4 157.5 157.6 157.7 157.8 157.9 157.10 157.11 157.12 157.13
157.14 157.15
157.16 157.17 157.18 157.19 157.20 157.21 157.22 157.23 157.24 157.25 157.26 157.27 157.28 157.29 157.30 157.31 157.32 157.33 157.34 158.1 158.2 158.3 158.4 158.5 158.6 158.7
158.8 158.9 158.10
158.11 158.12 158.13 158.14 158.15 158.16 158.17 158.18 158.19 158.20 158.21 158.22 158.23 158.24 158.25 158.26 158.27 158.28 158.29 158.30 158.31 158.32 158.33 158.34 158.35
159.1 159.2
159.3 159.4 159.5 159.6 159.7 159.8 159.9 159.10 159.11 159.12 159.13 159.14 159.15 159.16
159.17 159.18 159.19 159.20 159.21 159.22
159.23 159.24 159.25 159.26 159.27 159.28 159.29 159.30 159.31 159.32 159.33 160.1 160.2 160.3 160.4 160.5 160.6 160.7 160.8 160.9 160.10 160.11 160.12 160.13 160.14 160.15 160.16 160.17 160.18 160.19 160.20 160.21 160.22 160.23 160.24 160.25 160.26 160.27
160.28 160.29 160.30 160.31 160.32
160.33 160.34 161.1 161.2 161.3 161.4 161.5 161.6 161.7 161.8 161.9 161.10 161.11 161.12 161.13 161.14 161.15 161.16 161.17 161.18 161.19 161.20 161.21 161.22 161.23 161.24 161.25 161.26
161.27 161.28 161.29 161.30 161.31
161.32 161.33 161.34 161.35 162.1 162.2 162.3 162.4 162.5 162.6 162.7 162.8 162.9 162.10 162.11 162.12 162.13 162.14 162.15 162.16 162.17 162.18 162.19 162.20 162.21 162.22 162.23 162.24 162.25 162.26 162.27 162.28 162.29 162.30 162.31 162.32 162.33
162.34 162.35 162.36 163.1 163.2 163.3 163.4 163.5 163.6 163.7 163.8
163.9 163.10 163.11 163.12 163.13 163.14
163.15 163.16 163.17
163.18 163.19 163.20 163.21 163.22 163.23 163.24 163.25 163.26 163.27 163.28 163.29 163.30 163.31 163.32 163.33 164.1 164.2 164.3 164.4 164.5 164.6 164.7 164.8
164.9 164.10 164.11
164.12 164.13 164.14 164.15 164.16 164.17 164.18 164.19 164.20 164.21 164.22 164.23 164.24 164.25 164.26 164.27 164.28 164.29 164.30 164.31 164.32 164.33 164.34 164.35
165.1 165.2 165.3 165.4
165.5 165.6 165.7 165.8 165.9 165.10 165.11 165.12 165.13 165.14 165.15 165.16 165.17 165.18 165.19 165.20 165.21 165.22 165.23 165.24
165.25 165.26 165.27 165.28
165.29 165.30 165.31 165.32 165.33 165.34 166.1 166.2 166.3 166.4 166.5 166.6 166.7 166.8 166.9 166.10 166.11 166.12 166.13 166.14 166.15 166.16 166.17 166.18 166.19 166.20 166.21 166.22 166.23 166.24 166.25
166.26 166.27 166.28
166.29 166.30 166.31 166.32 166.33 166.34 166.35 167.1 167.2 167.3 167.4 167.5 167.6 167.7 167.8 167.9 167.10 167.11 167.12 167.13 167.14 167.15 167.16 167.17 167.18 167.19 167.20 167.21 167.22 167.23 167.24 167.25 167.26 167.27 167.28 167.29 167.30 167.31 167.32 167.33 167.34 167.35 167.36 168.1 168.2 168.3 168.4 168.5 168.6 168.7 168.8 168.9 168.10 168.11 168.12 168.13 168.14 168.15 168.16 168.17 168.18 168.19 168.20
168.21
168.22 168.23 168.24 168.25 168.26 168.27 168.28 168.29 168.30 168.31 168.32 168.33
169.1 169.2
169.3 169.4
169.5 169.6 169.7 169.8 169.9 169.10 169.11
169.12 169.13
169.14 169.15 169.16 169.17 169.18 169.19 169.20 169.21 169.22 169.23 169.24 169.25 169.26 169.27 169.28 169.29 169.30 169.31 169.32 170.1 170.2 170.3 170.4 170.5 170.6 170.7 170.8 170.9 170.10 170.11 170.12 170.13 170.14 170.15 170.16 170.17 170.18 170.19 170.20 170.21 170.22 170.23 170.24 170.25
170.26 170.27 170.28 170.29 170.30 170.31 170.32 170.33 170.34 171.1 171.2 171.3 171.4 171.5 171.6 171.7 171.8 171.9 171.10 171.11 171.12 171.13 171.14 171.15 171.16 171.17 171.18 171.19 171.20 171.21 171.22 171.23 171.24 171.25 171.26 171.27 171.28 171.29 171.30 171.31 171.32 171.33
171.34 172.1 172.2 172.3 172.4 172.5 172.6 172.7 172.8 172.9 172.10 172.11 172.12 172.13 172.14 172.15 172.16 172.17 172.18 172.19 172.20 172.21 172.22 172.23 172.24 172.25 172.26 172.27 172.28 172.29 172.30 172.31 172.32 172.33 172.34 172.35 172.36 173.1 173.2 173.3 173.4 173.5 173.6 173.7 173.8 173.9 173.10 173.11 173.12 173.13 173.14 173.15 173.16 173.17 173.18 173.19 173.20 173.21 173.22 173.23 173.24 173.25 173.26 173.27 173.28 173.29 173.30 173.31 173.32 173.33 173.34 173.35 173.36 174.1 174.2 174.3 174.4 174.5 174.6 174.7 174.8 174.9 174.10 174.11 174.12 174.13 174.14 174.15 174.16 174.17 174.18 174.19 174.20 174.21 174.22 174.23 174.24 174.25 174.26 174.27 174.28 174.29 174.30 174.31 174.32 174.33 174.34
174.35 175.1 175.2 175.3 175.4 175.5 175.6 175.7 175.8 175.9 175.10 175.11 175.12 175.13 175.14 175.15 175.16 175.17 175.18 175.19 175.20
175.21 175.22 175.23 175.24 175.25 175.26 175.27 175.28 175.29 175.30 175.31 175.32 175.33 175.34 176.1 176.2 176.3 176.4 176.5 176.6 176.7 176.8 176.9 176.10 176.11 176.12 176.13 176.14 176.15 176.16 176.17 176.18 176.19 176.20 176.21 176.22 176.23 176.24 176.25 176.26 176.27 176.28 176.29 176.30
176.31 176.32 176.33 176.34 176.35 177.1 177.2 177.3 177.4 177.5 177.6 177.7 177.8 177.9 177.10 177.11 177.12 177.13 177.14 177.15 177.16 177.17 177.18 177.19 177.20 177.21 177.22 177.23 177.24 177.25
177.26 177.27 177.28 177.29 177.30 177.31 177.32 177.33 177.34 177.35 178.1 178.2 178.3 178.4 178.5 178.6 178.7 178.8 178.9 178.10 178.11 178.12 178.13 178.14 178.15 178.16 178.17 178.18 178.19 178.20 178.21 178.22 178.23 178.24 178.25 178.26 178.27 178.28 178.29 178.30 178.31 178.32 178.33 178.34 178.35 179.1 179.2 179.3 179.4 179.5 179.6 179.7 179.8 179.9 179.10 179.11 179.12 179.13 179.14 179.15 179.16 179.17 179.18 179.19 179.20 179.21 179.22 179.23 179.24 179.25 179.26 179.27 179.28 179.29 179.30 179.31 179.32 179.33 179.34 179.35 179.36 180.1 180.2 180.3 180.4 180.5 180.6 180.7 180.8 180.9 180.10 180.11 180.12 180.13 180.14
180.15 180.16 180.17 180.18 180.19 180.20 180.21 180.22 180.23 180.24 180.25 180.26 180.27 180.28 180.29 180.30
180.31 180.32 180.33 181.1 181.2 181.3 181.4 181.5 181.6 181.7 181.8 181.9 181.10 181.11 181.12 181.13 181.14 181.15 181.16 181.17 181.18 181.19 181.20 181.21 181.22 181.23 181.24 181.25 181.26 181.27 181.28 181.29 181.30 181.31 181.32 181.33 181.34 181.35 181.36 182.1 182.2 182.3 182.4 182.5 182.6 182.7 182.8 182.9 182.10 182.11 182.12 182.13 182.14 182.15 182.16 182.17 182.18 182.19 182.20 182.21 182.22 182.23 182.24 182.25 182.26 182.27 182.28
182.29 182.30 182.31 182.32 182.33 182.34 182.35 183.1 183.2 183.3 183.4 183.5 183.6 183.7 183.8 183.9 183.10 183.11 183.12 183.13 183.14 183.15 183.16 183.17 183.18 183.19 183.20 183.21 183.22 183.23 183.24 183.25 183.26 183.27 183.28 183.29 183.30 183.31 183.32 183.33 183.34 183.35 183.36 184.1 184.2 184.3 184.4 184.5 184.6 184.7 184.8 184.9 184.10 184.11 184.12 184.13 184.14 184.15
184.16 184.17 184.18 184.19 184.20 184.21 184.22 184.23 184.24 184.25 184.26 184.27 184.28 184.29 184.30 184.31 184.32 184.33 185.1 185.2 185.3 185.4 185.5 185.6 185.7 185.8 185.9 185.10 185.11 185.12 185.13 185.14
185.15 185.16 185.17 185.18
185.19 185.20
185.21 185.22 185.23 185.24 185.25
185.26 185.27 185.28 185.29 185.30 185.31 185.32 185.33 186.1 186.2 186.3 186.4 186.5 186.6 186.7 186.8 186.9 186.10 186.11 186.12 186.13 186.14 186.15 186.16 186.17 186.18 186.19 186.20 186.21 186.22 186.23 186.24 186.25 186.26 186.27 186.28 186.29 186.30 186.31 186.32
186.33
186.34 187.1 187.2 187.3 187.4 187.5 187.6 187.7 187.8 187.9 187.10 187.11 187.12 187.13 187.14 187.15 187.16 187.17 187.18 187.19 187.20 187.21 187.22 187.23 187.24 187.25 187.26 187.27 187.28 187.29 187.30 187.31 187.32 187.33
187.34
187.35 188.1 188.2 188.3 188.4 188.5 188.6 188.7 188.8 188.9 188.10 188.11 188.12 188.13 188.14 188.15 188.16 188.17 188.18 188.19 188.20 188.21 188.22 188.23 188.24 188.25 188.26 188.27 188.28 188.29 188.30 188.31 188.32 188.33 188.34 188.35 188.36 189.1 189.2 189.3 189.4 189.5 189.6 189.7
189.8
189.9 189.10 189.11 189.12 189.13 189.14 189.15 189.16 189.17 189.18 189.19 189.20 189.21 189.22 189.23 189.24 189.25 189.26 189.27 189.28 189.29 189.30 189.31 189.32 189.33
189.34
190.1 190.2 190.3 190.4 190.5 190.6 190.7 190.8 190.9 190.10 190.11 190.12 190.13 190.14 190.15 190.16 190.17 190.18 190.19 190.20 190.21 190.22 190.23 190.24 190.25 190.26 190.27 190.28 190.29 190.30 190.31 190.32 190.33 190.34
190.35
191.1 191.2 191.3 191.4 191.5 191.6 191.7 191.8 191.9 191.10 191.11 191.12 191.13 191.14 191.15 191.16 191.17 191.18 191.19 191.20 191.21 191.22 191.23 191.24 191.25 191.26 191.27 191.28 191.29 191.30
191.31
191.32 191.33 191.34 192.1 192.2 192.3 192.4 192.5 192.6 192.7 192.8 192.9 192.10 192.11 192.12 192.13 192.14 192.15 192.16 192.17 192.18 192.19 192.20 192.21
192.22
192.23 192.24 192.25 192.26 192.27 192.28 192.29 192.30 192.31 192.32 192.33 192.34 193.1 193.2 193.3 193.4 193.5 193.6 193.7 193.8 193.9 193.10 193.11 193.12
193.13
193.14 193.15 193.16 193.17 193.18 193.19 193.20 193.21 193.22 193.23 193.24 193.25 193.26 193.27 193.28 193.29 193.30 193.31 193.32 193.33 193.34 193.35
194.1 194.2
194.3 194.4 194.5 194.6 194.7 194.8 194.9 194.10 194.11 194.12 194.13 194.14 194.15 194.16 194.17 194.18 194.19 194.20 194.21 194.22 194.23 194.24 194.25 194.26 194.27 194.28 194.29 194.30 194.31 194.32 194.33 194.34 194.35 195.1 195.2 195.3 195.4 195.5 195.6 195.7 195.8 195.9 195.10 195.11 195.12 195.13 195.14 195.15 195.16 195.17 195.18 195.19 195.20 195.21 195.22 195.23 195.24 195.25 195.26 195.27 195.28 195.29 195.30 195.31 195.32 195.33 195.34 195.35 196.1 196.2
196.3
196.4 196.5 196.6 196.7 196.8 196.9 196.10 196.11 196.12 196.13 196.14 196.15 196.16 196.17 196.18 196.19 196.20 196.21 196.22 196.23 196.24 196.25 196.26 196.27 196.28 196.29 196.30 196.31 196.32 196.33 196.34 196.35 197.1 197.2 197.3 197.4 197.5 197.6 197.7 197.8 197.9 197.10 197.11 197.12 197.13 197.14 197.15 197.16 197.17 197.18 197.19 197.20 197.21 197.22 197.23 197.24 197.25 197.26 197.27 197.28 197.29 197.30 197.31 197.32
197.33 197.34
197.35 198.1 198.2 198.3 198.4 198.5 198.6 198.7 198.8 198.9 198.10 198.11 198.12 198.13 198.14 198.15 198.16 198.17 198.18 198.19 198.20 198.21 198.22 198.23 198.24 198.25 198.26 198.27 198.28 198.29 198.30 198.31 198.32 198.33 198.34 198.35 198.36 199.1 199.2 199.3 199.4 199.5 199.6 199.7 199.8 199.9 199.10 199.11 199.12 199.13 199.14 199.15 199.16 199.17 199.18 199.19 199.20 199.21 199.22 199.23 199.24 199.25 199.26 199.27 199.28 199.29 199.30 199.31 199.32 199.33 199.34 199.35 199.36 200.1 200.2 200.3 200.4 200.5 200.6 200.7 200.8 200.9 200.10 200.11 200.12 200.13 200.14 200.15
200.16
200.17 200.18 200.19 200.20 200.21 200.22 200.23 200.24 200.25 200.26 200.27 200.28 200.29 200.30
200.31
200.32 201.1 201.2 201.3 201.4 201.5 201.6 201.7 201.8 201.9 201.10 201.11
201.12
201.13 201.14 201.15 201.16 201.17 201.18 201.19 201.20 201.21 201.22 201.23 201.24 201.25 201.26 201.27 201.28 201.29 201.30 201.31 201.32 201.33 201.34 201.35 202.1 202.2 202.3 202.4 202.5 202.6 202.7 202.8 202.9 202.10 202.11 202.12 202.13 202.14 202.15 202.16 202.17
202.18
202.19 202.20 202.21 202.22 202.23 202.24 202.25 202.26 202.27
202.28 202.29
202.30 202.31 202.32 202.33 203.1 203.2 203.3 203.4 203.5 203.6 203.7 203.8 203.9 203.10 203.11 203.12 203.13 203.14 203.15 203.16 203.17 203.18 203.19 203.20 203.21 203.22
203.23 203.24
203.25 203.26
203.27 203.28 203.29 203.30 203.31 203.32 204.1 204.2 204.3 204.4 204.5 204.6
204.7 204.8 204.9 204.10 204.11 204.12 204.13 204.14 204.15 204.16 204.17 204.18 204.19
204.20 204.21 204.22 204.23 204.24 204.25 204.26 204.27 204.28 204.29 204.30
204.31 204.32 204.33 205.1 205.2 205.3 205.4 205.5 205.6 205.7 205.8 205.9 205.10 205.11
205.12 205.13 205.14 205.15 205.16 205.17 205.18 205.19 205.20 205.21 205.22 205.23 205.24 205.25 205.26 205.27 205.28 205.29 205.30 205.31 205.32 205.33 205.34 205.35 206.1 206.2 206.3 206.4 206.5 206.6 206.7 206.8
206.9 206.10 206.11 206.12 206.13 206.14 206.15 206.16 206.17 206.18 206.19 206.20 206.21 206.22 206.23 206.24 206.25 206.26 206.27 206.28 206.29 206.30
206.31 206.32 206.33 206.34 207.1 207.2 207.3 207.4 207.5 207.6 207.7 207.8 207.9 207.10 207.11 207.12 207.13 207.14 207.15 207.16 207.17 207.18 207.19 207.20 207.21 207.22 207.23 207.24 207.25 207.26 207.27
207.28 207.29 207.30 207.31 207.32 207.33 207.34 207.35 208.1 208.2 208.3 208.4 208.5 208.6 208.7 208.8 208.9 208.10 208.11 208.12 208.13 208.14 208.15 208.16
208.17 208.18 208.19 208.20 208.21 208.22 208.23 208.24 208.25 208.26 208.27 208.28 208.29 208.30 208.31 208.32 208.33 208.34 208.35 209.1 209.2 209.3 209.4 209.5
209.6 209.7 209.8 209.9 209.10 209.11 209.12 209.13 209.14 209.15 209.16 209.17 209.18 209.19 209.20 209.21 209.22 209.23 209.24 209.25 209.26 209.27 209.28 209.29 209.30 209.31 209.32 209.33 209.34 209.35 210.1 210.2 210.3 210.4 210.5 210.6 210.7 210.8 210.9 210.10 210.11 210.12 210.13 210.14 210.15 210.16 210.17 210.18 210.19 210.20 210.21 210.22 210.23 210.24 210.25 210.26 210.27 210.28 210.29 210.30 210.31 210.32 210.33 210.34 210.35 210.36 211.1 211.2 211.3 211.4 211.5 211.6 211.7 211.8 211.9 211.10 211.11 211.12 211.13 211.14 211.15 211.16 211.17 211.18 211.19 211.20
211.21
211.22 211.23 211.24 211.25 211.26 211.27 211.28
211.29 211.30 211.31
211.32 212.1 212.2 212.3 212.4 212.5 212.6 212.7 212.8 212.9 212.10 212.11 212.12 212.13 212.14
212.15 212.16
212.17 212.18 212.19 212.20 212.21 212.22 212.23
212.24 212.25
212.26 212.27 212.28 212.29 212.30 212.31 212.32 213.1 213.2 213.3 213.4 213.5 213.6 213.7 213.8 213.9 213.10 213.11 213.12 213.13 213.14 213.15 213.16 213.17 213.18 213.19 213.20 213.21 213.22 213.23 213.24 213.25 213.26 213.27 213.28 213.29 213.30 213.31 213.32 213.33 213.34 213.35 213.36 214.1 214.2 214.3 214.4 214.5 214.6 214.7 214.8 214.9 214.10 214.11 214.12 214.13 214.14 214.15 214.16 214.17 214.18 214.19 214.20 214.21 214.22 214.23 214.24 214.25 214.26 214.27
214.28 214.29
214.30 214.31 214.32 214.33 214.34 214.35 215.1 215.2 215.3 215.4 215.5 215.6 215.7 215.8 215.9 215.10
215.11 215.12 215.13 215.14 215.15 215.16 215.17 215.18 215.19 215.20 215.21 215.22 215.23 215.24 215.25 215.26 215.27 215.28 215.29 215.30 215.31 215.32 215.33 215.34
216.1 216.2 216.3 216.4 216.5 216.6 216.7 216.8 216.9 216.10 216.11 216.12 216.13 216.14 216.15 216.16 216.17 216.18 216.19 216.20 216.21 216.22 216.23 216.24 216.25 216.26 216.27 216.28 216.29 216.30 216.31 216.32 216.33 216.34 216.35
217.1 217.2 217.3 217.4 217.5 217.6 217.7 217.8
217.9 217.10 217.11
217.12 217.13 217.14 217.15 217.16 217.17 217.18 217.19
217.20 217.21 217.22 217.23
217.24 217.25
217.26 217.27 217.28 217.29 217.30 217.31 217.32 218.1 218.2 218.3 218.4 218.5 218.6 218.7 218.8 218.9 218.10 218.11 218.12 218.13 218.14 218.15 218.16 218.17 218.18 218.19 218.20 218.21 218.22 218.23 218.24 218.25 218.26 218.27 218.28 218.29 218.30 218.31 218.32 218.33 218.34 218.35 218.36 219.1 219.2 219.3 219.4 219.5 219.6 219.7 219.8 219.9 219.10 219.11 219.12 219.13 219.14 219.15 219.16 219.17 219.18 219.19 219.20
219.21 219.22 219.23
219.24 219.25 219.26 219.27 219.28 219.29 219.30 219.31
219.32
220.1 220.2 220.3 220.4 220.5 220.6 220.7 220.8
220.9
220.10 220.11 220.12 220.13 220.14 220.15 220.16 220.17 220.18 220.19
220.20
220.21 220.22 220.23 220.24
220.25
220.26 220.27 220.28 220.29 220.30 220.31 220.32 221.1 221.2 221.3 221.4 221.5 221.6 221.7 221.8 221.9 221.10 221.11 221.12 221.13 221.14 221.15 221.16 221.17 221.18 221.19 221.20 221.21 221.22
221.23 221.24
221.25 221.26 221.27 221.28 221.29 221.30 221.31 221.32 221.33 221.34 222.1 222.2
222.3
222.4 222.5 222.6 222.7 222.8 222.9 222.10 222.11 222.12 222.13 222.14 222.15
222.16
222.17 222.18 222.19 222.20 222.21 222.22 222.23 222.24
222.25
222.26 222.27 222.28 222.29 222.30 222.31 222.32 223.1 223.2
223.3
223.4 223.5 223.6 223.7 223.8 223.9 223.10 223.11 223.12 223.13 223.14
223.15
223.16 223.17 223.18 223.19 223.20 223.21 223.22 223.23 223.24 223.25 223.26 223.27 223.28 223.29 223.30 223.31 223.32 223.33 224.1 224.2 224.3 224.4 224.5 224.6 224.7 224.8 224.9 224.10 224.11 224.12 224.13 224.14 224.15 224.16 224.17 224.18 224.19 224.20 224.21 224.22 224.23 224.24 224.25 224.26 224.27 224.28 224.29 224.30 224.31 224.32 224.33
224.34
225.1 225.2 225.3 225.4 225.5 225.6 225.7 225.8 225.9 225.10 225.11 225.12 225.13 225.14
225.15
225.16 225.17 225.18 225.19 225.20 225.21 225.22 225.23 225.24 225.25 225.26 225.27 225.28 225.29 225.30 225.31 225.32 225.33 225.34 225.35
226.1
226.2 226.3 226.4 226.5 226.6 226.7 226.8 226.9 226.10 226.11 226.12 226.13 226.14 226.15 226.16 226.17 226.18 226.19 226.20 226.21 226.22 226.23 226.24 226.25 226.26 226.27 226.28 226.29 226.30 226.31 226.32 226.33 226.34 226.35 227.1 227.2 227.3 227.4 227.5 227.6 227.7 227.8 227.9 227.10 227.11 227.12
227.13
227.14 227.15 227.16 227.17 227.18 227.19 227.20 227.21 227.22 227.23 227.24 227.25 227.26 227.27 227.28 227.29 227.30 227.31 227.32 227.33 227.34 227.35 228.1 228.2 228.3 228.4 228.5 228.6 228.7 228.8 228.9 228.10 228.11 228.12
228.13
228.14 228.15 228.16 228.17 228.18 228.19 228.20 228.21
228.22
228.23 228.24 228.25 228.26 228.27 228.28 228.29
228.30
229.1 229.2 229.3 229.4 229.5 229.6 229.7
229.8
229.9 229.10 229.11 229.12 229.13 229.14 229.15 229.16 229.17 229.18 229.19 229.20 229.21 229.22
229.23
229.24 229.25 229.26 229.27 229.28 229.29 229.30 229.31 229.32 229.33 230.1 230.2 230.3 230.4 230.5 230.6 230.7 230.8 230.9 230.10 230.11 230.12 230.13 230.14 230.15 230.16 230.17 230.18 230.19 230.20 230.21 230.22 230.23 230.24 230.25 230.26 230.27 230.28 230.29 230.30 230.31 230.32 230.33 230.34 230.35 231.1 231.2 231.3 231.4 231.5 231.6 231.7 231.8 231.9 231.10 231.11 231.12 231.13
231.14
231.15 231.16
231.17 231.18 231.19 231.20 231.21 231.22 231.23 231.24 231.25 231.26 231.27 231.28 231.29
231.30 231.31 231.32 231.33 232.1 232.2 232.3 232.4
232.5 232.6 232.7 232.8 232.9 232.10 232.11 232.12 232.13 232.14 232.15 232.16 232.17 232.18 232.19 232.20 232.21 232.22 232.23 232.24 232.25 232.26 232.27 232.28 232.29 232.30 232.31 232.32 232.33 232.34 232.35 233.1 233.2 233.3 233.4 233.5 233.6 233.7 233.8 233.9 233.10 233.11 233.12 233.13 233.14 233.15 233.16 233.17 233.18 233.19 233.20 233.21 233.22 233.23 233.24 233.25 233.26 233.27 233.28 233.29 233.30 233.31 233.32 233.33 233.34 233.35 233.36 234.1 234.2 234.3 234.4 234.5 234.6 234.7 234.8 234.9 234.10
234.11 234.12 234.13 234.14 234.15 234.16 234.17 234.18 234.19 234.20 234.21 234.22 234.23 234.24 234.25 234.26 234.27 234.28 234.29 234.30 234.31 234.32 234.33 234.34 234.35 235.1 235.2 235.3 235.4 235.5 235.6 235.7 235.8 235.9 235.10 235.11 235.12 235.13 235.14 235.15 235.16 235.17 235.18 235.19 235.20 235.21 235.22 235.23 235.24 235.25 235.26 235.27 235.28 235.29 235.30 235.31 235.32 235.33 235.34 235.35 235.36 236.1 236.2 236.3 236.4 236.5 236.6 236.7 236.8 236.9
236.10 236.11 236.12 236.13 236.14 236.15 236.16 236.17
236.18 236.19 236.20 236.21 236.22 236.23
236.24 236.25 236.26 236.27 236.28 236.29 236.30 236.31 236.32 236.33
237.1 237.2 237.3 237.4 237.5 237.6 237.7 237.8 237.9 237.10 237.11 237.12 237.13 237.14 237.15 237.16 237.17 237.18 237.19 237.20
237.21 237.22 237.23 237.24 237.25 237.26 237.27 237.28 237.29
237.30 237.31 237.32 237.33 238.1 238.2 238.3 238.4 238.5 238.6
238.7 238.8 238.9 238.10 238.11 238.12 238.13 238.14 238.15 238.16 238.17 238.18 238.19 238.20 238.21
238.22 238.23 238.24 238.25 238.26 238.27 238.28 238.29 238.30 238.31 238.32 238.33
239.1 239.2 239.3 239.4 239.5 239.6 239.7 239.8 239.9 239.10 239.11
239.12 239.13 239.14 239.15 239.16 239.17 239.18 239.19 239.20 239.21 239.22 239.23 239.24 239.25 239.26 239.27 239.28 239.29 239.30 239.31 239.32 239.33 239.34 239.35 240.1 240.2 240.3
240.4 240.5 240.6 240.7 240.8 240.9 240.10 240.11 240.12 240.13 240.14 240.15 240.16 240.17 240.18 240.19 240.20 240.21 240.22 240.23 240.24 240.25 240.26 240.27 240.28 240.29 240.30 240.31
240.32
241.1 241.2 241.3 241.4 241.5 241.6 241.7 241.8 241.9 241.10
241.11 241.12 241.13 241.14 241.15 241.16 241.17 241.18 241.19 241.20
241.21 241.22 241.23 241.24 241.25 241.26 241.27
241.28 241.29 241.30 241.31 241.32 242.1 242.2
242.3 242.4 242.5 242.6 242.7 242.8 242.9 242.10 242.11 242.12 242.13 242.14 242.15 242.16 242.17 242.18 242.19 242.20 242.21 242.22
242.23 242.24 242.25 242.26 242.27 242.28 242.29
242.30 242.31 242.32 242.33 243.1 243.2 243.3
243.4 243.5 243.6 243.7 243.8 243.9
243.10 243.11 243.12 243.13 243.14
243.15 243.16 243.17 243.18 243.19 243.20 243.21 243.22 243.23 243.24 243.25 243.26 243.27 243.28 243.29 243.30 243.31 243.32 243.33 244.1 244.2 244.3 244.4 244.5 244.6 244.7 244.8 244.9 244.10 244.11 244.12 244.13 244.14 244.15 244.16 244.17 244.18 244.19 244.20 244.21 244.22 244.23 244.24 244.25 244.26 244.27 244.28 244.29 244.30 244.31 244.32 244.33 244.34 244.35 244.36
245.1 245.2 245.3 245.4 245.5 245.6 245.7 245.8 245.9 245.10 245.11 245.12 245.13 245.14 245.15 245.16 245.17 245.18 245.19 245.20 245.21 245.22 245.23 245.24 245.25
245.26 245.27 245.28 245.29 245.30 245.31 245.32 245.33 245.34 246.1 246.2 246.3 246.4 246.5 246.6 246.7 246.8 246.9 246.10 246.11 246.12 246.13 246.14 246.15
246.16 246.17
246.18 246.19 246.20 246.21 246.22 246.23 246.24 246.25 246.26 246.27 246.28 246.29 246.30 246.31 246.32 246.33 246.34 246.35 247.1 247.2 247.3 247.4 247.5 247.6 247.7 247.8 247.9 247.10 247.11 247.12 247.13 247.14 247.15 247.16 247.17 247.18 247.19 247.20 247.21 247.22 247.23 247.24 247.25 247.26 247.27 247.28 247.29 247.30 247.31 247.32 247.33 247.34 247.35 247.36 248.1 248.2 248.3 248.4 248.5 248.6 248.7 248.8 248.9 248.10 248.11 248.12 248.13 248.14 248.15 248.16 248.17 248.18 248.19 248.20 248.21 248.22 248.23 248.24 248.25 248.26 248.27 248.28 248.29 248.30 248.31 248.32 248.33 248.34 248.35 248.36 249.1 249.2 249.3 249.4 249.5 249.6 249.7 249.8 249.9 249.10 249.11 249.12 249.13 249.14 249.15 249.16 249.17 249.18 249.19 249.20 249.21 249.22 249.23 249.24 249.25 249.26 249.27 249.28 249.29 249.30 249.31 249.32 249.33 249.34 249.35 249.36 250.1 250.2 250.3 250.4 250.5 250.6 250.7 250.8 250.9 250.10 250.11 250.12 250.13 250.14 250.15 250.16 250.17 250.18 250.19 250.20 250.21 250.22 250.23 250.24 250.25 250.26 250.27 250.28 250.29 250.30 250.31 250.32 250.33 250.34 250.35 250.36
251.1 251.2
251.3 251.4 251.5 251.6 251.7
251.8
251.9 251.10 251.11 251.12 251.13 251.14 251.15 251.16 251.17 251.18 251.19 251.20 251.21 251.22 251.23 251.24
251.25 251.26 251.27 251.28 251.29 251.30 251.31 251.32 251.33 252.1 252.2 252.3 252.4 252.5 252.6
252.7 252.8 252.9 252.10 252.11 252.12 252.13 252.14 252.15 252.16 252.17 252.18 252.19 252.20 252.21 252.22 252.23 252.24 252.25 252.26 252.27 252.28 252.29 252.30 252.31 252.32 252.33
252.34 253.1 253.2 253.3 253.4 253.5 253.6 253.7 253.8
253.9 253.10 253.11 253.12 253.13 253.14 253.15 253.16 253.17 253.18 253.19 253.20
253.21 253.22 253.23 253.24 253.25 253.26 253.27 253.28 253.29 253.30 253.31 253.32 253.33 253.34 254.1 254.2 254.3 254.4 254.5 254.6 254.7 254.8 254.9 254.10 254.11 254.12 254.13 254.14 254.15 254.16 254.17 254.18 254.19 254.20 254.21 254.22 254.23 254.24 254.25 254.26 254.27 254.28 254.29 254.30 254.31 254.32 254.33 254.34 254.35 254.36 255.1 255.2 255.3 255.4
255.5 255.6 255.7 255.8 255.9 255.10 255.11 255.12 255.13 255.14 255.15 255.16 255.17 255.18
255.19
255.20 255.21 255.22 255.23
255.24 255.25 255.26 255.27 255.28
255.29 255.30 255.31
256.1 256.2 256.3 256.4 256.5 256.6 256.7 256.8 256.9 256.10 256.11 256.12 256.13 256.14 256.15 256.16 256.17 256.18 256.19 256.20 256.21 256.22 256.23 256.24
256.25 256.26 256.27 256.28 256.29 256.30 256.31 256.32 256.33 256.34 256.35 257.1 257.2 257.3 257.4 257.5 257.6 257.7 257.8 257.9 257.10 257.11 257.12 257.13 257.14 257.15 257.16 257.17 257.18 257.19 257.20 257.21 257.22 257.23 257.24 257.25 257.26 257.27 257.28 257.29 257.30 257.31 257.32 257.33 257.34 257.35 257.36 258.1 258.2 258.3 258.4 258.5 258.6 258.7 258.8 258.9 258.10 258.11 258.12
258.13 258.14 258.15 258.16 258.17 258.18 258.19 258.20 258.21 258.22 258.23 258.24 258.25 258.26 258.27
258.28 258.29 258.30 258.31 258.32 258.33 258.34 259.1 259.2 259.3 259.4
259.5 259.6 259.7 259.8 259.9 259.10 259.11 259.12 259.13 259.14
259.15 259.16 259.17 259.18 259.19 259.20 259.21 259.22 259.23 259.24 259.25 259.26 259.27
259.28 259.29 259.30 259.31 259.32 259.33
260.1 260.2 260.3 260.4 260.5 260.6 260.7 260.8 260.9 260.10 260.11 260.12 260.13 260.14
260.15 260.16 260.17 260.18 260.19 260.20 260.21 260.22 260.23 260.24 260.25 260.26 260.27 260.28 260.29 260.30 260.31 260.32 260.33 260.34 260.35 261.1 261.2 261.3 261.4 261.5 261.6 261.7 261.8 261.9 261.10 261.11 261.12 261.13 261.14
261.15 261.16 261.17 261.18 261.19 261.20 261.21 261.22 261.23 261.24 261.25 261.26 261.27 261.28 261.29
261.30 261.31 261.32 261.33 262.1 262.2 262.3 262.4 262.5 262.6 262.7 262.8 262.9 262.10 262.11 262.12 262.13 262.14 262.15 262.16 262.17 262.18 262.19 262.20 262.21 262.22 262.23
262.24 262.25 262.26 262.27 262.28 262.29 262.30 262.31
262.32 262.33 262.34 263.1 263.2
263.3 263.4 263.5 263.6 263.7 263.8
263.9 263.10 263.11 263.12 263.13 263.14
263.15 263.16 263.17 263.18 263.19 263.20 263.21 263.22 263.23 263.24
263.25 263.26 263.27 263.28 263.29 263.30 263.31 264.1 264.2 264.3 264.4 264.5 264.6 264.7 264.8 264.9
264.10 264.11 264.12 264.13 264.14 264.15 264.16 264.17 264.18 264.19 264.20 264.21 264.22 264.23 264.24 264.25 264.26 264.27 264.28 264.29 264.30 264.31 264.32 264.33 264.34 265.1 265.2
265.3 265.4 265.5 265.6 265.7 265.8 265.9 265.10 265.11 265.12 265.13 265.14 265.15 265.16 265.17
265.18 265.19 265.20 265.21 265.22 265.23 265.24 265.25
265.26 265.27 265.28 265.29 265.30 265.31 265.32 266.1 266.2 266.3 266.4 266.5 266.6 266.7 266.8 266.9 266.10 266.11 266.12 266.13 266.14 266.15 266.16 266.17 266.18 266.19 266.20 266.21 266.22 266.23
266.24 266.25 266.26 266.27 266.28 266.29 266.30 266.31 266.32
266.33 267.1 267.2 267.3 267.4 267.5 267.6 267.7 267.8 267.9 267.10 267.11 267.12 267.13 267.14 267.15 267.16 267.17 267.18 267.19 267.20 267.21 267.22 267.23
267.24 267.25 267.26 267.27 267.28 267.29 267.30 267.31 267.32 267.33 267.34 268.1 268.2 268.3 268.4 268.5 268.6 268.7 268.8 268.9 268.10 268.11 268.12 268.13 268.14 268.15 268.16 268.17 268.18 268.19 268.20 268.21 268.22 268.23 268.24
268.25 268.26 268.27 268.28 268.29 268.30 268.31 268.32 268.33 268.34 269.1 269.2 269.3 269.4 269.5 269.6 269.7 269.8 269.9 269.10 269.11 269.12 269.13
269.14 269.15 269.16 269.17 269.18 269.19 269.20 269.21 269.22 269.23 269.24 269.25 269.26 269.27 269.28
269.29 269.30 269.31 269.32 269.33 270.1 270.2 270.3 270.4 270.5 270.6 270.7 270.8 270.9 270.10 270.11 270.12 270.13 270.14 270.15 270.16 270.17 270.18
270.19 270.20 270.21 270.22 270.23 270.24 270.25 270.26 270.27 270.28 270.29 270.30 270.31 270.32 270.33 270.34 270.35 271.1 271.2 271.3 271.4
271.5 271.6 271.7 271.8 271.9 271.10 271.11 271.12 271.13 271.14
271.15 271.16 271.17 271.18 271.19
271.20 271.21 271.22 271.23 271.24 271.25 271.26 271.27 271.28
271.29 271.30 271.31 272.1 272.2 272.3 272.4 272.5 272.6 272.7 272.8 272.9 272.10 272.11 272.12 272.13 272.14
272.15 272.16 272.17 272.18 272.19 272.20 272.21 272.22 272.23 272.24 272.25 272.26 272.27 272.28 272.29 272.30
272.31 272.32 272.33 272.34 273.1 273.2 273.3 273.4 273.5
273.6 273.7 273.8 273.9 273.10 273.11 273.12 273.13 273.14 273.15 273.16 273.17
273.18 273.19 273.20 273.21 273.22 273.23 273.24 273.25 273.26 273.27 273.28 273.29 273.30 273.31 273.32 273.33 273.34 274.1 274.2 274.3 274.4 274.5
274.6 274.7 274.8 274.9 274.10 274.11 274.12 274.13 274.14 274.15 274.16 274.17 274.18 274.19 274.20 274.21 274.22 274.23 274.24 274.25 274.26 274.27 274.28 274.29 274.30 274.31 274.32 274.33 274.34 275.1 275.2 275.3 275.4 275.5 275.6 275.7 275.8 275.9 275.10 275.11 275.12 275.13 275.14 275.15 275.16 275.17 275.18 275.19 275.20 275.21 275.22 275.23 275.24 275.25 275.26 275.27
275.28 275.29 275.30 275.31 275.32
275.33 276.1 276.2 276.3 276.4 276.5 276.6
276.7 276.8 276.9 276.10 276.11 276.12 276.13 276.14 276.15 276.16
276.17 276.18 276.19 276.20 276.21
276.22 276.23 276.24 276.25
276.26 276.27 276.28 276.29 276.30 276.31 277.1 277.2
277.3 277.4 277.5 277.6 277.7 277.8 277.9 277.10 277.11 277.12 277.13 277.14
277.15 277.16 277.17 277.18 277.19 277.20 277.21 277.22 277.23 277.24 277.25 277.26
277.27 277.28 277.29 277.30 277.31
277.32 278.1 278.2 278.3 278.4 278.5 278.6 278.7 278.8 278.9 278.10 278.11 278.12
278.13 278.14 278.15 278.16 278.17 278.18 278.19 278.20 278.21 278.22 278.23 278.24 278.25 278.26 278.27
278.28 278.29 278.30 278.31 278.32 278.33 278.34 279.1 279.2 279.3 279.4 279.5 279.6 279.7 279.8 279.9 279.10 279.11 279.12
279.13 279.14 279.15 279.16 279.17 279.18 279.19 279.20 279.21 279.22 279.23 279.24 279.25 279.26 279.27 279.28 279.29 279.30
279.31 279.32 279.33 279.34 280.1 280.2 280.3
280.4 280.5 280.6 280.7 280.8 280.9 280.10 280.11 280.12 280.13 280.14
280.15 280.16 280.17 280.18 280.19 280.20 280.21 280.22 280.23 280.24
280.25 280.26 280.27 280.28 280.29 280.30 280.31 280.32 280.33 281.1 281.2 281.3 281.4 281.5 281.6 281.7 281.8 281.9 281.10 281.11 281.12 281.13 281.14 281.15 281.16 281.17 281.18
281.19 281.20 281.21 281.22 281.23 281.24 281.25 281.26 281.27 281.28 281.29 281.30 281.31 281.32 281.33
281.34 282.1 282.2 282.3
282.4 282.5 282.6 282.7 282.8
282.9 282.10 282.11
282.12 282.13 282.14 282.15 282.16 282.17 282.18 282.19 282.20 282.21 282.22 282.23 282.24 282.25 282.26 282.27 282.28 282.29 282.30 282.31 282.32 282.33 283.1 283.2 283.3
283.4 283.5 283.6 283.7 283.8 283.9 283.10 283.11 283.12 283.13 283.14 283.15 283.16 283.17 283.18
283.19 283.20 283.21 283.22 283.23
283.24 283.25 283.26 283.27 283.28 283.29 283.30 283.31 283.32
284.1 284.2 284.3 284.4 284.5 284.6 284.7 284.8 284.9 284.10 284.11 284.12 284.13 284.14 284.15 284.16
284.17 284.18 284.19 284.20 284.21 284.22 284.23 284.24 284.25 284.26 284.27 284.28 284.29 284.30 284.31 284.32 284.33
284.34 285.1 285.2 285.3 285.4 285.5 285.6 285.7 285.8 285.9 285.10 285.11 285.12 285.13
285.14 285.15 285.16 285.17 285.18 285.19 285.20 285.21 285.22 285.23 285.24 285.25 285.26 285.27 285.28 285.29 285.30
285.31
285.32 285.33 286.1 286.2 286.3 286.4 286.5 286.6 286.7
286.8
286.9 286.10 286.11 286.12 286.13 286.14 286.15 286.16 286.17 286.18 286.19 286.20 286.21 286.22 286.23 286.24 286.25 286.26 286.27 286.28 286.29 286.30 286.31 286.32 286.33 286.34 286.35 287.1 287.2 287.3 287.4 287.5 287.6 287.7 287.8
287.9
287.10 287.11 287.12 287.13 287.14 287.15 287.16 287.17 287.18
287.19 287.20 287.21 287.22 287.23 287.24 287.25 287.26 287.27 287.28 287.29 287.30 287.31 287.32 287.33 288.1 288.2 288.3 288.4 288.5 288.6 288.7 288.8 288.9 288.10 288.11 288.12 288.13 288.14 288.15 288.16
288.17 288.18 288.19 288.20 288.21 288.22
288.23 288.24 288.25 288.26
288.27
288.28 288.29 288.30
288.31 289.1 289.2 289.3 289.4
289.5 289.6 289.7
289.8 289.9 289.10 289.11 289.12 289.13
289.14 289.15
289.16 289.17 289.18 289.19 289.20 289.21 289.22 289.23 289.24 289.25 289.26 289.27 289.28 289.29 289.30 289.31 289.32 289.33 290.1 290.2 290.3
290.4
290.5 290.6 290.7 290.8 290.9 290.10 290.11 290.12
290.13 290.14
290.15 290.16 290.17 290.18 290.19
290.20 290.21
290.22 290.23 290.24 290.25
290.26 290.27
290.28 290.29 291.1 291.2 291.3
291.4 291.5
291.6 291.7 291.8 291.9 291.10 291.11 291.12 291.13 291.14
291.15
291.16 291.17 291.18 291.19 291.20 291.21 291.22 291.23
291.24
291.25 291.26 291.27 291.28 291.29 291.30 291.31 291.32 292.1 292.2 292.3 292.4 292.5 292.6 292.7 292.8 292.9 292.10 292.11 292.12 292.13 292.14 292.15 292.16 292.17 292.18 292.19 292.20 292.21 292.22 292.23 292.24 292.25 292.26 292.27 292.28 292.29 292.30 292.31 292.32 292.33 292.34 293.1 293.2 293.3 293.4 293.5 293.6 293.7 293.8 293.9 293.10 293.11 293.12 293.13 293.14 293.15 293.16 293.17 293.18 293.19 293.20 293.21 293.22 293.23 293.24 293.25 293.26 293.27 293.28 293.29 293.30 293.31 293.32 293.33
293.34
293.35 294.1 294.2 294.3 294.4
294.5
294.6 294.7 294.8 294.9 294.10 294.11 294.12 294.13 294.14
294.15 294.16
294.17 294.18
294.19 294.20 294.21 294.22 294.23 294.24
294.25
294.26 294.27 294.28 294.29 294.30 294.31 295.1 295.2 295.3 295.4 295.5 295.6 295.7 295.8 295.9 295.10 295.11 295.12 295.13 295.14 295.15 295.16 295.17 295.18 295.19 295.20 295.21 295.22 295.23 295.24 295.25 295.26 295.27 295.28 295.29 295.30 295.31 295.32 295.33 295.34 295.35 295.36 296.1 296.2 296.3 296.4 296.5 296.6 296.7 296.8 296.9 296.10 296.11 296.12 296.13 296.14 296.15 296.16 296.17 296.18 296.19 296.20 296.21 296.22 296.23 296.24 296.25 296.26 296.27 296.28 296.29 296.30 296.31 296.32 296.33 296.34
296.35
297.1 297.2 297.3 297.4 297.5 297.6 297.7 297.8 297.9 297.10 297.11 297.12 297.13 297.14 297.15 297.16 297.17 297.18 297.19 297.20 297.21 297.22 297.23 297.24 297.25 297.26 297.27 297.28 297.29 297.30 297.31 297.32 297.33 297.34 297.35 297.36 298.1 298.2 298.3 298.4 298.5 298.6 298.7
298.8
298.9 298.10 298.11 298.12 298.13 298.14 298.15 298.16 298.17
298.18 298.19
298.20 298.21 298.22 298.23 298.24 298.25 298.26 298.27 298.28 298.29 298.30 298.31 298.32 299.1 299.2
299.3
299.4 299.5 299.6 299.7 299.8 299.9 299.10 299.11 299.12 299.13 299.14 299.15 299.16
299.17 299.18
299.19 299.20 299.21 299.22 299.23 299.24 299.25 299.26 299.27 299.28 299.29 299.30 299.31 299.32 299.33 300.1 300.2 300.3 300.4 300.5 300.6 300.7 300.8 300.9 300.10 300.11 300.12 300.13 300.14 300.15 300.16 300.17
300.18
300.19 300.20 300.21 300.22 300.23 300.24 300.25 300.26 300.27 300.28 300.29 300.30 300.31 300.32 300.33 301.1 301.2 301.3 301.4 301.5 301.6 301.7 301.8 301.9 301.10 301.11
301.12 301.13
301.14 301.15 301.16 301.17 301.18
301.19 301.20
301.21 301.22 301.23 301.24 301.25 301.26 301.27
301.28 301.29
301.30 301.31
302.1
302.2 302.3
302.4 302.5 302.6 302.7 302.8 302.9 302.10 302.11
302.12 302.13
302.14 302.15 302.16 302.17
302.18
302.19 302.20 302.21 302.22 302.23 302.24 302.25 302.26 302.27 302.28 302.29 302.30 302.31 303.1 303.2 303.3 303.4
303.5
303.6 303.7 303.8 303.9 303.10 303.11 303.12 303.13 303.14 303.15 303.16 303.17 303.18 303.19 303.20 303.21 303.22
303.23
303.24 303.25 303.26 303.27 303.28 303.29 303.30 303.31 303.32 303.33 304.1 304.2 304.3 304.4 304.5 304.6 304.7 304.8 304.9 304.10 304.11 304.12 304.13 304.14 304.15 304.16 304.17 304.18 304.19 304.20 304.21 304.22 304.23 304.24 304.25 304.26 304.27 304.28 304.29 304.30 304.31 304.32 304.33 304.34 304.35 304.36 305.1 305.2
305.3
305.4 305.5 305.6 305.7 305.8 305.9 305.10 305.11 305.12 305.13 305.14 305.15
305.16
305.17 305.18 305.19
305.20
305.21 305.22 305.23 305.24 305.25 305.26 305.27 305.28 305.29 305.30 305.31 306.1 306.2 306.3 306.4 306.5 306.6 306.7 306.8 306.9 306.10 306.11 306.12 306.13 306.14 306.15 306.16 306.17 306.18 306.19
306.20
306.21 306.22 306.23 306.24 306.25 306.26 306.27 306.28 306.29 306.30 306.31 306.32 306.33 306.34 306.35 307.1 307.2 307.3 307.4 307.5 307.6 307.7 307.8 307.9 307.10 307.11 307.12 307.13 307.14 307.15 307.16 307.17 307.18 307.19 307.20 307.21 307.22 307.23 307.24 307.25 307.26 307.27 307.28 307.29 307.30 307.31 307.32 307.33 307.34 308.1 308.2 308.3 308.4 308.5 308.6 308.7 308.8 308.9 308.10 308.11 308.12 308.13 308.14 308.15 308.16 308.17 308.18 308.19 308.20 308.21 308.22 308.23 308.24 308.25 308.26 308.27 308.28 308.29 308.30 308.31 308.32 308.33 308.34 308.35 308.36 309.1 309.2 309.3 309.4 309.5 309.6 309.7 309.8 309.9 309.10 309.11 309.12 309.13 309.14 309.15 309.16 309.17 309.18 309.19 309.20 309.21 309.22 309.23 309.24 309.25 309.26 309.27 309.28 309.29 309.30 309.31 309.32 309.33 309.34 309.35 310.1 310.2 310.3 310.4 310.5 310.6 310.7 310.8 310.9 310.10 310.11 310.12 310.13 310.14 310.15 310.16 310.17 310.18 310.19 310.20 310.21 310.22 310.23 310.24 310.25 310.26 310.27 310.28 310.29 310.30 310.31 310.32 310.33 310.34 310.35 310.36 311.1 311.2 311.3 311.4 311.5 311.6 311.7 311.8 311.9 311.10 311.11 311.12 311.13 311.14 311.15 311.16 311.17 311.18 311.19 311.20 311.21 311.22 311.23 311.24 311.25 311.26 311.27 311.28 311.29 311.30 311.31 311.32 311.33 311.34 311.35 311.36 312.1 312.2 312.3
312.4 312.5
312.6 312.7 312.8 312.9 312.10 312.11 312.12 312.13 312.14 312.15 312.16 312.17 312.18 312.19 312.20 312.21 312.22 312.23 312.24 312.25 312.26 312.27 312.28 312.29 312.30 312.31 312.32 312.33 312.34 312.35 313.1 313.2 313.3 313.4 313.5 313.6 313.7 313.8 313.9 313.10 313.11 313.12 313.13 313.14 313.15 313.16 313.17 313.18 313.19 313.20 313.21 313.22 313.23 313.24 313.25 313.26 313.27 313.28 313.29 313.30 313.31 313.32 313.33 313.34 313.35 313.36 314.1 314.2 314.3 314.4 314.5 314.6 314.7 314.8 314.9 314.10 314.11 314.12 314.13 314.14 314.15 314.16 314.17 314.18 314.19 314.20 314.21 314.22 314.23 314.24 314.25 314.26 314.27 314.28 314.29 314.30 314.31 314.32 314.33 314.34 314.35 315.1 315.2 315.3 315.4 315.5 315.6 315.7 315.8 315.9 315.10 315.11 315.12 315.13 315.14 315.15 315.16 315.17 315.18 315.19 315.20 315.21 315.22 315.23 315.24 315.25 315.26 315.27 315.28 315.29 315.30 315.31 315.32 315.33 315.34 315.35 316.1 316.2 316.3 316.4 316.5 316.6 316.7 316.8 316.9 316.10 316.11 316.12 316.13 316.14 316.15 316.16 316.17 316.18 316.19 316.20 316.21 316.22 316.23 316.24 316.25 316.26 316.27 316.28 316.29 316.30 316.31 316.32 316.33 316.34 316.35 316.36 317.1 317.2 317.3 317.4 317.5 317.6 317.7 317.8 317.9 317.10 317.11 317.12 317.13 317.14 317.15 317.16 317.17 317.18 317.19 317.20 317.21 317.22 317.23 317.24 317.25 317.26 317.27 317.28
317.29 317.30
317.31 317.32 317.33 317.34 317.35 318.1 318.2 318.3 318.4 318.5 318.6
318.7
318.8 318.9 318.10 318.11 318.12 318.13 318.14 318.15 318.16 318.17 318.18 318.19 318.20 318.21 318.22 318.23 318.24 318.25 318.26 318.27 318.28 318.29 318.30 318.31 318.32 318.33 318.34
319.1
319.2 319.3 319.4 319.5 319.6 319.7
319.8
319.9 319.10 319.11 319.12 319.13 319.14 319.15 319.16 319.17 319.18 319.19 319.20 319.21 319.22 319.23 319.24 319.25 319.26 319.27 319.28 319.29 319.30 319.31 319.32 319.33 319.34 320.1 320.2 320.3 320.4 320.5 320.6 320.7 320.8 320.9 320.10 320.11 320.12 320.13 320.14 320.15 320.16 320.17 320.18 320.19 320.20 320.21 320.22 320.23 320.24 320.25 320.26 320.27 320.28 320.29 320.30 320.31 320.32 320.33 320.34 320.35 320.36 320.37 321.1 321.2 321.3 321.4 321.5 321.6 321.7 321.8 321.9 321.10 321.11 321.12 321.13 321.14 321.15 321.16 321.17 321.18 321.19 321.20 321.21 321.22 321.23 321.24 321.25 321.26 321.27 321.28 321.29 321.30 321.31 321.32 321.33 321.34 321.35 321.36 321.37 321.38 321.39 321.40 321.41 321.42 321.43 321.44 321.45 321.46
322.1 322.2
322.3 322.4 322.5 322.6 322.7 322.8 322.9 322.10 322.11 322.12 322.13 322.14 322.15 322.16
322.17 322.18
322.19 322.20 322.21 322.22 322.23 322.24 322.25 322.26 322.27 322.28 322.29 322.30 322.31 322.32 322.33 322.34 323.1 323.2 323.3 323.4 323.5 323.6 323.7 323.8 323.9
323.10
323.11 323.12 323.13 323.14 323.15 323.16 323.17 323.18 323.19 323.20 323.21 323.22 323.23 323.24 323.25 323.26 323.27 323.28 323.29 323.30 323.31 323.32 323.33 323.34 324.1 324.2 324.3 324.4 324.5 324.6 324.7 324.8 324.9 324.10 324.11
324.12
324.13 324.14 324.15 324.16 324.17 324.18 324.19 324.20 324.21 324.22 324.23 324.24 324.25 324.26 324.27 324.28 324.29 324.30 324.31 324.32 324.33 324.34 325.1 325.2 325.3 325.4 325.5 325.6 325.7 325.8 325.9 325.10 325.11 325.12 325.13 325.14 325.15 325.16 325.17 325.18 325.19 325.20 325.21 325.22 325.23 325.24 325.25 325.26 325.27 325.28 325.29 325.30 325.31 325.32 325.33 325.34 325.35 325.36 326.1 326.2 326.3 326.4 326.5 326.6 326.7 326.8 326.9 326.10 326.11 326.12 326.13 326.14 326.15 326.16 326.17 326.18 326.19 326.20 326.21 326.22 326.23 326.24 326.25
326.26
326.27 326.28 326.29
326.30
327.1 327.2
327.3 327.4 327.5 327.6 327.7 327.8 327.9 327.10 327.11 327.12 327.13 327.14 327.15 327.16 327.17 327.18 327.19 327.20 327.21
327.22
327.23 327.24 327.25 327.26 327.27 327.28 327.29 327.30 327.31 327.32 328.1 328.2 328.3 328.4
328.5
328.6 328.7 328.8 328.9 328.10 328.11 328.12 328.13 328.14 328.15 328.16 328.17 328.18 328.19
328.20
328.21 328.22 328.23 328.24
328.25
328.26 328.27 328.28 328.29 328.30 329.1 329.2 329.3
329.4
329.5 329.6 329.7 329.8 329.9 329.10 329.11 329.12 329.13 329.14 329.15 329.16 329.17 329.18 329.19 329.20 329.21 329.22 329.23 329.24 329.25 329.26 329.27 329.28 329.29 329.30 329.31 329.32 329.33 329.34 329.35 330.1 330.2 330.3 330.4 330.5 330.6 330.7 330.8 330.9
330.10
330.11 330.12 330.13 330.14 330.15 330.16 330.17 330.18 330.19 330.20 330.21 330.22 330.23 330.24 330.25 330.26 330.27 330.28 330.29 330.30 330.31 330.32 330.33 330.34 330.35 331.1
331.2 331.3 331.4 331.5 331.6 331.7 331.8
331.9
331.10 331.11 331.12 331.13 331.14
331.15
331.16 331.17 331.18 331.19 331.20 331.21 331.22 331.23
331.24
331.25 331.26 331.27 331.28 331.29 331.30 332.1 332.2 332.3 332.4 332.5 332.6 332.7 332.8 332.9 332.10
332.11
332.12 332.13 332.14 332.15 332.16 332.17 332.18 332.19
332.20
332.21 332.22 332.23 332.24 332.25 332.26 332.27
332.28
332.29 332.30 332.31 333.1 333.2 333.3 333.4 333.5
333.6
333.7 333.8 333.9 333.10 333.11 333.12
333.13
333.14 333.15 333.16 333.17 333.18 333.19 333.20 333.21
333.22
333.23 333.24 333.25 333.26 333.27 333.28 333.29 333.30 333.31 333.32 334.1 334.2 334.3
334.4
334.5 334.6 334.7 334.8 334.9 334.10 334.11 334.12 334.13 334.14 334.15 334.16 334.17 334.18 334.19 334.20 334.21 334.22 334.23 334.24 334.25 334.26 334.27 334.28 334.29 334.30 334.31 334.32 334.33 334.34 334.35 335.1 335.2 335.3 335.4 335.5 335.6 335.7 335.8 335.9 335.10 335.11 335.12 335.13 335.14 335.15 335.16 335.17 335.18 335.19 335.20
335.21
335.22 335.23 335.24 335.25 335.26 335.27 335.28 335.29 335.30 335.31 335.32 335.33 335.34 336.1 336.2 336.3 336.4 336.5 336.6 336.7 336.8 336.9 336.10 336.11 336.12 336.13 336.14 336.15 336.16 336.17 336.18 336.19
336.20
A bill for an act
relating to financing of state and local government; making changes to individual
income, corporate franchise, property, sales and use, estate, mineral, liquor,
tobacco, aggregate materials, local, and other taxes and tax-related provisions;
restoring the school district current year aid payment shift percentage to 90;
conforming to federal section 179 expensing allowances; imposing an income
surcharge; allowing an up-front exemption for capital equipment; modifying
the definition of income for the property tax refund; decreasing the threshold
percentage for the homestead credit refund for homeowners and the property
tax refund for renters; increasing the maximum refunds for renters; changing
property tax aids and credits; imposing an insurance surcharge; modifying
pension aids; providing pension funding; changing provisions of the Sustainable
Forest Incentive Act; modifying definitions for property taxes; providing
exemptions; creating joint entertainment facilities coordination; imposing a
sports memorabilia gross receipts tax; changing tax rates on tobacco and liquor;
providing reimbursement for certain property tax abatement; modifying the small
business investment tax credit; expanding the definition of domestic corporation
to include foreign corporations incorporated in or doing business in tax havens;
making changes to additions and subtractions from federal taxable income;
changing rates for individuals, estates, and trusts; providing for charitable
contributions and veterans jobs tax credits; modifying estate tax exclusions for
qualifying small business and farm property; imposing a gift tax; expanding
the sales tax to include suite and box seat rentals; modifying the definition
of sales and purchase; changing the tax rate and modifying provisions for the
rental motor vehicle tax; modifying nexus provisions; providing for multiple
points of use certificates; modifying exemptions; authorizing local sales taxes;
authorizing economic development powers; providing authority, organization,
powers, and duties for development of a Destination Medical Center; authorizing
state infrastructure aid; imposing a tax on extraction and processing of fracturing
sand; providing a taconite production tax grant for water supply improvements;
authorizing taconite production tax bonds for grants to school districts; modifying
and providing provisions for public finance; modifying the definition of market
value for tax, debt, and other purposes; making conforming, policy, and technical
changes to tax provisions; requiring studies and reports; appropriating money;
amending Minnesota Statutes 2012, sections 16A.152, subdivision 2; 16A.46;
38.18; 40A.15, subdivision 2; 69.011, subdivision 1; 69.021, subdivisions 7, 8, by
adding a subdivision; 88.51, subdivision 3; 103B.102, subdivision 3; 103B.245,
subdivision 3; 103B.251, subdivision 8; 103B.335; 103B.3369, subdivision 5;
103B.635, subdivision 2; 103B.691, subdivision 2; 103C.501, subdivision 4;
103D.905, subdivisions 2, 3, 8; 103F.405, subdivision 1; 116J.8737, subdivisions
1, 2, 8; 117.025, subdivision 7; 118A.04, subdivision 3; 118A.05, subdivision
5; 123A.455, subdivision 1; 123B.75, subdivision 5; 126C.48, subdivision 8;
127A.45, subdivision 2; 127A.48, subdivision 1; 138.053; 144F.01, subdivision
4; 162.07, subdivisions 3, 4; 163.04, subdivision 3; 163.051; 163.06, subdivision
6; 165.10, subdivision 1; 168.012, subdivision 9, by adding a subdivision;
216C.436, subdivision 7; 237.52, subdivision 3, by adding a subdivision;
270.077; 270.41, subdivision 5; 270B.01, subdivision 8; 270B.12, subdivision
4; 270C.34, subdivision 1; 270C.38, subdivision 1; 270C.42, subdivision 2;
270C.56, subdivision 1; 271.06, by adding a subdivision; 272.01, subdivision 2;
272.02, subdivisions 39, 97, by adding subdivisions; 272.03, subdivision 9, by
adding subdivisions; 273.032; 273.11, subdivision 1, by adding a subdivision;
273.114, subdivision 6; 273.124, subdivisions 3a, 13; 273.13, subdivisions
21b, 23, 25; 273.1398, subdivisions 3, 4; 273.19, subdivision 1; 273.372,
subdivision 4; 273.39; 275.011, subdivision 1; 275.077, subdivision 2; 275.71,
subdivision 4; 276.04, subdivision 2; 276A.01, subdivisions 10, 12, 13, 15;
276A.06, subdivision 10; 279.01, subdivision 1, by adding a subdivision; 279.02;
279.06, subdivision 1; 287.05, by adding a subdivision; 287.08; 287.20, by
adding a subdivision; 287.23, subdivision 1; 287.385, subdivision 7; 289A.02,
subdivision 7; 289A.08, subdivisions 1, 3, 7; 289A.10, subdivision 1, by adding
a subdivision; 289A.12, subdivision 14, by adding a subdivision; 289A.18, by
adding a subdivision; 289A.20, subdivisions 3, 4, by adding a subdivision;
289A.26, subdivisions 3, 4, 7, 9; 289A.55, subdivision 9; 289A.60, subdivision
4; 290.01, subdivisions 5, 19, as amended, 19a, 19b, 19c, 19d, 31, as amended,
by adding subdivisions; 290.06, subdivisions 2c, 2d, by adding subdivisions;
290.067, subdivisions 1, 2a; 290.0671, subdivision 1; 290.0675, subdivision 1;
290.0677, subdivision 2; 290.068, subdivisions 3, 6a; 290.0681, subdivisions 1,
3, 4, 5; 290.091, subdivision 2; 290.0921, subdivision 3; 290.0922, subdivision
1; 290.17, subdivision 4; 290.21, subdivision 4; 290.9705, subdivision 1;
290A.03, subdivisions 3, 15, as amended; 290A.04, subdivisions 2, 2a, 4;
290B.04, subdivision 2; 290C.02, subdivision 6; 290C.05; 290C.07; 291.005,
subdivision 1; 291.03, subdivisions 1, 8, 9, 10, 11, by adding a subdivision;
296A.01, subdivision 19, by adding a subdivision; 296A.22, subdivisions 1, 3;
297A.61, subdivisions 3, 4, by adding a subdivision; 297A.64, subdivisions
1, 2; 297A.66, by adding a subdivision; 297A.665; 297A.668, by adding
a subdivision; 297A.67, subdivision 7; 297A.68, subdivision 5; 297A.70,
subdivisions 4, 8, by adding subdivisions; 297A.71, by adding subdivisions;
297A.75, subdivisions 1, 2, 3; 297A.815, subdivision 3; 297A.993, subdivisions
1, 2; 297B.11; 297E.021, subdivision 2; 297E.14, subdivision 7; 297F.01,
subdivisions 3, 19, 23, by adding a subdivision; 297F.05, subdivisions 1, 3, 4, by
adding a subdivision; 297F.09, subdivision 9; 297F.18, subdivision 7; 297F.24,
subdivision 1; 297F.25, subdivision 1; 297G.03, subdivision 1, by adding a
subdivision; 297G.04; 297G.09, subdivision 8; 297G.17, subdivision 7; 297I.05,
subdivisions 7, 11, 12; 297I.30, subdivisions 1, 2; 297I.80, subdivision 1; 298.01,
subdivisions 3, 3b, 4; 298.018; 298.227, as amended; 298.24, subdivision 1;
298.28, subdivisions 4, 6, 10; 298.75, subdivision 2; 325D.32, subdivision 2;
353G.08, subdivision 2; 365.025, subdivision 4; 366.095, subdivision 1; 366.27;
368.01, subdivision 23; 368.47; 370.01; 373.01, subdivisions 1, 3; 373.40,
subdivisions 1, 2, 4; 375.167, subdivision 1; 375.18, subdivision 3; 375.555;
383B.152; 383B.245; 383B.73, subdivision 1; 383D.41, by adding a subdivision;
383E.20; 383E.23; 385.31; 394.36, subdivision 1; 398A.04, subdivision 8;
401.05, subdivision 3; 403.02, subdivision 21, by adding subdivisions; 403.06,
subdivision 1a; 403.11, subdivision 1, by adding a subdivision; 410.32; 412.221,
subdivision 2; 412.301; 428A.02, subdivision 1; 430.102, subdivision 2; 447.10;
450.19; 450.25; 458A.10; 458A.31, subdivision 1; 465.04; 469.033, subdivision
6; 469.034, subdivision 2; 469.053, subdivisions 4, 4a, 6; 469.071, subdivision 5;
469.107, subdivision 1; 469.169, by adding a subdivision; 469.176, subdivisions
4c, 4g, 6; 469.177, by adding a subdivision; 469.180, subdivision 2; 469.187;
469.190, subdivision 7, by adding a subdivision; 469.206; 469.319, subdivision
4; 469.340, subdivision 4; 471.24; 471.571, subdivisions 1, 2; 471.73; 473.325,
subdivision 2; 473.39, by adding a subdivision; 473.629; 473.661, subdivision 3;
473.667, subdivision 9; 473.671; 473.711, subdivision 2a; 473F.02, subdivisions
12, 14, 15, 23; 473F.08, subdivision 10, by adding a subdivision; 474A.04,
subdivision 1a; 474A.062; 474A.091, subdivision 3a; 475.521, subdivisions 1, 2,
4; 475.53, subdivisions 1, 3, 4; 475.58, subdivisions 2, 3b; 475.73, subdivision 1;
477A.011, subdivisions 20, 30, 32, 34, 42, by adding subdivisions; 477A.0124,
subdivision 2; 477A.013, subdivisions 8, 9, by adding a subdivision; 477A.03,
subdivisions 2a, 2b, by adding a subdivision; 641.23; 641.24; 645.44, by adding
a subdivision; Laws 1971, chapter 773, section 1, subdivision 2, as amended;
Laws 1988, chapter 645, section 3, as amended; Laws 1993, chapter 375, article
9, section 46, subdivisions 2, as amended, 5, as amended; Laws 1998, chapter
389, article 8, section 43, subdivisions 1, 3, as amended, 5, as amended; Laws
1999, chapter 243, article 6, section 11; Laws 2002, chapter 377, article 3, section
25, as amended; Laws 2005, First Special Session chapter 3, article 5, section
37, subdivisions 2, 4; Laws 2008, chapter 366, article 5, sections 26; 33; 34, as
amended; article 7, section 19, subdivision 3, as amended; Laws 2010, chapter
216, section 55; Laws 2010, chapter 389, article 1, section 12; article 5, section 6,
subdivisions 4, 6; Laws 2010, First Special Session chapter 1, article 13, section 4,
subdivision 1, as amended; proposing coding for new law in Minnesota Statutes,
chapters 116C; 287; 290; 290A; 292; 295; 297I; 403; 435; 469; proposing coding
for new law as Minnesota Statutes, chapter 297J; repealing Minnesota Statutes
2012, sections 16A.725; 256.9658; 272.69; 273.11, subdivisions 1a, 22; 276A.01,
subdivision 11; 289A.60, subdivision 31; 290.01, subdivision 6b; 290.06,
subdivision 22a; 290.0672; 290.0921, subdivision 7; 383A.80, subdivision 4;
383B.80, subdivision 4; 428A.101; 428A.21; 473F.02, subdivision 13; 477A.011,
subdivisions 2a, 19, 21, 29, 31, 32, 33, 36, 39, 40, 41, 42; 477A.013, subdivisions
11, 12; 477A.0133; 477A.0134; Laws 2006, chapter 259, article 11, section 3, as
amended; Laws 2009, chapter 88, article 4, section 23, as amended.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
ONE-TIME PROVISIONS
Section 1.
Minnesota Statutes 2012, section 16A.152, subdivision 2, is amended to read:
Subd. 2.
Additional revenues; priority.
(a) If on the basis of a forecast of general
fund revenues and expenditures, the commissioner of management and budget determines
that there will be a positive unrestricted budgetary general fund balance at the close of
the biennium, the commissioner of management and budget must allocate money to the
following accounts and purposes in priority order:
(1) the cash flow account established in subdivision 1 until that account reaches
$350,000,000;
(2) the budget reserve account established in subdivision 1a until that account
reaches $653,000,000;
(3) the amount necessary to increase the aid payment schedule for school district
aids and credits payments in section 127A.45 to not more than 90 percent rounded to the
nearest tenth of a percent without exceeding the amount available and with any remaining
funds deposited in the budget reserve;
(4) the amount necessary to restore all or a portion of the net aid reductions under
section 127A.441 and to reduce the property tax revenue recognition shift under section
123B.75, subdivision 5, by the same amount;
new text begin (5) to reduce the rate of the surcharge in section 290.06, subdivision 2g, for taxable
years beginning after December 31, 2013, and before January 1, 2015, to not less than
zero with the rate rounded to the nearest tenth of a percent, without exceeding the amount
available, and with any remaining funds deposited in the budget reserve;new text end and
deleted text begin (5)deleted text end new text begin (6)new text end to the state airports fund, the amount necessary to restore the amount
transferred from the state airports fund under Laws 2008, chapter 363, article 11, section
3, subdivision 5.
(b) The amounts necessary to meet the requirements of this section are appropriated
from the general fund within two weeks after the forecast is released or, in the case of
transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations
schedules otherwise established in statute.
(c) The commissioner of management and budget shall certify the total dollar
amount of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of
education. The commissioner of education shall increase the aid payment percentage and
reduce the property tax shift percentage by these amounts and apply those reductions to
the current fiscal year and thereafter.
new text begin
(d) The commissioner of management and budget shall certify the total dollar
amount available under paragraph (a), clause (5), to the commissioner of revenue. The
commissioner of revenue shall determine the percentage reduction in the surcharge rate
for taxable years beginning after December 31, 2013, and before January 1, 2015, and
shall reduce the surcharge rate.
new text end
Sec. 2.
Minnesota Statutes 2012, section 123B.75, subdivision 5, is amended to read:
Subd. 5.
Levy recognition.
deleted text begin
(a) For fiscal years 2009 and 2010, in June of each
year, the school district must recognize as revenue, in the fund for which the levy was
made, the lesser of:
deleted text end
deleted text begin
(1) the sum of May, June, and July school district tax settlement revenue received in
that calendar year, plus general education aid according to section 126C.13, subdivision
4, received in July and August of that calendar year; or
deleted text end
deleted text begin
(2) the sum of:
deleted text end
deleted text begin
(i) 31 percent of the referendum levy certified according to section 126C.17, in
calendar year 2000; and
deleted text end
deleted text begin
(ii) the entire amount of the levy certified in the prior calendar year according to
section 124D.86, subdivision 4, for school districts receiving revenue under sections
124D.86, subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, paragraph (a),
and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; and 126C.48, subdivision 6; plus
deleted text end
deleted text begin
(iii) zero percent of the amount of the levy certified in the prior calendar year for the
school district's general and community service funds, plus or minus auditor's adjustments,
not including the levy portions that are assumed by the state, that remains after subtracting
the referendum levy certified according to section 126C.17 and the amount recognized
according to item (ii).
deleted text end
deleted text begin (b)deleted text end new text begin (a) new text end For fiscal deleted text begin year 2011 and laterdeleted text end yearsnew text begin 2011, 2012, and 2013new text end , in June of each
year, the school district must recognize as revenue, in the fund for which the levy was
made, the lesser of:
(1) the sum of May, June, and July school district tax settlement revenue received in
that calendar year, plus general education aid according to section 126C.13, subdivision
4, received in July and August of that calendar year; or
(2) the sum of:
(i) the greater of 48.6 percent of the referendum levy certified according to section
126C.17 in the prior calendar year, or 31 percent of the referendum levy certified
according to section 126C.17 in calendar year 2000; plus
(ii) the entire amount of the levy certified in the prior calendar year according to
section 124D.4531, 124D.86, subdivision 4, for school districts receiving revenue under
sections 124D.86, subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 1, 2,
paragraph (a), and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; and 126C.48,
subdivision 6; plus
(iii) 48.6 percent of the amount of the levy certified in the prior calendar year for the
school district's general and community service funds, plus or minus auditor's adjustments,
that remains after subtracting the referendum levy certified according to section 126C.17
and the amount recognized according to item (ii).
new text begin
(b) For fiscal year 2014 and later years, in June of each year, the school district must
recognize as revenue, in the fund for which the levy was made, the lesser of:
new text end
new text begin
(1) the sum of May, June, and July school district tax settlement revenue received in
that calendar year, plus general education aid according to section 126C.13, subdivision
4, received in July and August of that calendar year; or
new text end
new text begin
(2) the sum of:
new text end
new text begin
(i) 31 percent of the referendum levy certified according to section 126C.17 in
calendar year 2000;
new text end
new text begin
(ii) the entire amount of the levy certified in the prior calendar year according to
section 124D.4531; 124D.86, subdivision 4, for school districts receiving revenue under
sections 124D.86, subdivision 3, clauses (1) to (3); 126C.41, subdivisions 1, 2, paragraph
(a), and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; and 126C.48, subdivision
6; and
new text end
new text begin
(iii) zero percent of the amount of the levy certified in the prior calendar year for the
school district's general and community service funds, plus or minus auditor's adjustments,
that remains after subtracting the referendum levy certified according to section 126C.17
and the amount recognized according to item (ii).
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2013.
new text end
Sec. 3.
Minnesota Statutes 2012, section 127A.45, subdivision 2, is amended to read:
Subd. 2.
Definitions.
(a) "Other district receipts" means payments by county
treasurers pursuant to section 276.10, apportionments from the school endowment fund
pursuant to section 127A.33, apportionments by the county auditor pursuant to section
127A.34, subdivision 2, and payments to school districts by the commissioner of revenue
pursuant to chapter 298.
(b) "Cumulative amount guaranteed" means the product of
(1) the cumulative disbursement percentage shown in subdivision 3; times
(2) the sum of
(i) the current year aid payment percentage of the estimated aid and credit
entitlements paid according to subdivision 13; plus
(ii) 100 percent of the entitlements paid according to subdivisions 11 and 12; plus
(iii) the other district receipts.
(c) "Payment date" means the date on which state payments to districts are made
by the electronic funds transfer method. If a payment date falls on a Saturday, a Sunday,
or a weekday which is a legal holiday, the payment shall be made on the immediately
preceding business day. The commissioner may make payments on dates other than
those listed in subdivision 3, but only for portions of payments from any preceding
payment dates which could not be processed by the electronic funds transfer method due
to documented extenuating circumstances.
(d) The current year aid payment percentage equals deleted text begin 73 in fiscal year 2010 and 70 in
fiscal year 2011, and 60deleted text end new text begin 90new text end in fiscal years deleted text begin 2012deleted text end new text begin 2014new text end and later.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2013.
new text end
Sec. 4.
Minnesota Statutes 2012, section 290.01, subdivision 19a, is amended to read:
Subd. 19a.
Additions to federal taxable income.
For individuals, estates, and
trusts, there shall be added to federal taxable income:
(1)(i) interest income on obligations of any state other than Minnesota or a political
or governmental subdivision, municipality, or governmental agency or instrumentality
of any state other than Minnesota exempt from federal income taxes under the Internal
Revenue Code or any other federal statute; and
(ii) exempt-interest dividends as defined in section 852(b)(5) of the Internal Revenue
Code, except:
(A) the portion of the exempt-interest dividends exempt from state taxation under
the laws of the United States; and
(B) the portion of the exempt-interest dividends derived from interest income
on obligations of the state of Minnesota or its political or governmental subdivisions,
municipalities, governmental agencies or instrumentalities, but only if the portion of the
exempt-interest dividends from such Minnesota sources paid to all shareholders represents
95 percent or more of the exempt-interest dividends, including any dividends exempt
under subitem (A), that are paid by the regulated investment company as defined in section
851(a) of the Internal Revenue Code, or the fund of the regulated investment company as
defined in section 851(g) of the Internal Revenue Code, making the payment; and
(iii) for the purposes of items (i) and (ii), interest on obligations of an Indian tribal
government described in section 7871(c) of the Internal Revenue Code shall be treated as
interest income on obligations of the state in which the tribe is located;
(2) the amount of income, sales and use, motor vehicle sales, or excise taxes paid or
accrued within the taxable year under this chapter and the amount of taxes based on net
income paid, sales and use, motor vehicle sales, or excise taxes paid to any other state
or to any province or territory of Canada, to the extent allowed as a deduction under
section 63(d) of the Internal Revenue Code, but the addition may not be more than the
amount by which the itemized deductions as allowed under section 63(d) of the Internal
Revenue Code exceeds the amount of the standard deduction as defined in section 63(c) of
the Internal Revenue Code, disregarding the amounts allowed under sections 63(c)(1)(C)
and 63(c)(1)(E) of the Internal Revenue Code, minus any addition that would have been
required under clause (21) if the taxpayer had claimed the standard deduction. For the
purpose of this paragraph, the disallowance of itemized deductions under section 68 of
the Internal Revenue Code of 1986, income, sales and use, motor vehicle sales, or excise
taxes are the last itemized deductions disallowed;
(3) the capital gain amount of a lump-sum distribution to which the special tax under
section 1122(h)(3)(B)(ii) of the Tax Reform Act of 1986, Public Law 99-514, applies;
(4) the amount of income taxes paid or accrued within the taxable year under this
chapter and taxes based on net income paid to any other state or any province or territory
of Canada, to the extent allowed as a deduction in determining federal adjusted gross
income. For the purpose of this paragraph, income taxes do not include the taxes imposed
by sections 290.0922, subdivision 1, paragraph (b), 290.9727, 290.9728, and 290.9729;
(5) the amount of expense, interest, or taxes disallowed pursuant to section 290.10
other than expenses or interest used in computing net interest income for the subtraction
allowed under subdivision 19b, clause (1);
(6) the amount of a partner's pro rata share of net income which does not flow
through to the partner because the partnership elected to pay the tax on the income under
section 6242(a)(2) of the Internal Revenue Code;
(7) 80 percent of the depreciation deduction allowed under section 168(k) of the
Internal Revenue Code. For purposes of this clause, if the taxpayer has an activity that
in the taxable year generates a deduction for depreciation under section 168(k) and the
activity generates a loss for the taxable year that the taxpayer is not allowed to claim for
the taxable year, "the depreciation allowed under section 168(k)" for the taxable year is
limited to excess of the depreciation claimed by the activity under section 168(k) over the
amount of the loss from the activity that is not allowed in the taxable year. In succeeding
taxable years when the losses not allowed in the taxable year are allowed, the depreciation
under section 168(k) is allowed;
(8) new text begin for taxable years beginning before January 1, 2013, new text end 80 percent of the amount by
which the deduction allowed by section 179 of the Internal Revenue Code exceeds the
deduction allowable by section 179 of the Internal Revenue Code of 1986, as amended
through December 31, 2003;
(9) to the extent deducted in computing federal taxable income, the amount of the
deduction allowable under section 199 of the Internal Revenue Code;
(10) for taxable years beginning before January 1, 2013, the exclusion allowed under
section 139A of the Internal Revenue Code for federal subsidies for prescription drug plans;
(11) the amount of expenses disallowed under section 290.10, subdivision 2;
(12) for taxable years beginning before January 1, 2010, the amount deducted for
qualified tuition and related expenses under section 222 of the Internal Revenue Code, to
the extent deducted from gross income;
(13) for taxable years beginning before January 1, 2010, the amount deducted for
certain expenses of elementary and secondary school teachers under section 62(a)(2)(D)
of the Internal Revenue Code, to the extent deducted from gross income;
(14) the additional standard deduction for property taxes payable that is allowable
under section 63(c)(1)(C) of the Internal Revenue Code;
(15) the additional standard deduction for qualified motor vehicle sales taxes
allowable under section 63(c)(1)(E) of the Internal Revenue Code;
(16) discharge of indebtedness income resulting from reacquisition of business
indebtedness and deferred under section 108(i) of the Internal Revenue Code;
(17) the amount of unemployment compensation exempt from tax under section
85(c) of the Internal Revenue Code;
(18) changes to federal taxable income attributable to a net operating loss that the
taxpayer elected to carry back for more than two years for federal purposes but for which
the losses can be carried back for only two years under section 290.095, subdivision
11, paragraph (c);
(19) to the extent included in the computation of federal taxable income in taxable
years beginning after December 31, 2010, the amount of disallowed itemized deductions,
but the amount of disallowed itemized deductions plus the addition required under clause
(2) may not be more than the amount by which the itemized deductions as allowed under
section 63(d) of the Internal Revenue Code exceeds the amount of the standard deduction
as defined in section 63(c) of the Internal Revenue Code, disregarding the amounts
allowed under sections 63(c)(1)(C) and 63(c)(1)(E) of the Internal Revenue Code, and
reduced by any addition that would have been required under clause (21) if the taxpayer
had claimed the standard deduction:
(i) the amount of disallowed itemized deductions is equal to the lesser of:
(A) three percent of the excess of the taxpayer's federal adjusted gross income
over the applicable amount; or
(B) 80 percent of the amount of the itemized deductions otherwise allowable to the
taxpayer under the Internal Revenue Code for the taxable year;
(ii) the term "applicable amount" means $100,000, or $50,000 in the case of a
married individual filing a separate return. Each dollar amount shall be increased by
an amount equal to:
(A) such dollar amount, multiplied by
(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal
Revenue Code for the calendar year in which the taxable year begins, by substituting
"calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof;
(iii) the term "itemized deductions" does not include:
(A) the deduction for medical expenses under section 213 of the Internal Revenue
Code;
(B) any deduction for investment interest as defined in section 163(d) of the Internal
Revenue Code; and
(C) the deduction under section 165(a) of the Internal Revenue Code for casualty or
theft losses described in paragraph (2) or (3) of section 165(c) of the Internal Revenue
Code or for losses described in section 165(d) of the Internal Revenue Code;
(20) to the extent included in federal taxable income in taxable years beginning after
December 31, 2010, the amount of disallowed personal exemptions for taxpayers with
federal adjusted gross income over the threshold amount:
(i) the disallowed personal exemption amount is equal to the dollar amount of the
personal exemptions claimed by the taxpayer in the computation of federal taxable income
multiplied by the applicable percentage;
(ii) "applicable percentage" means two percentage points for each $2,500 (or
fraction thereof) by which the taxpayer's federal adjusted gross income for the taxable
year exceeds the threshold amount. In the case of a married individual filing a separate
return, the preceding sentence shall be applied by substituting "$1,250" for "$2,500." In
no event shall the applicable percentage exceed 100 percent;
(iii) the term "threshold amount" means:
(A) $150,000 in the case of a joint return or a surviving spouse;
(B) $125,000 in the case of a head of a household;
(C) $100,000 in the case of an individual who is not married and who is not a
surviving spouse or head of a household; and
(D) $75,000 in the case of a married individual filing a separate return; and
(iv) the thresholds shall be increased by an amount equal to:
(A) such dollar amount, multiplied by
(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal
Revenue Code for the calendar year in which the taxable year begins, by substituting
"calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof; and
(21) to the extent deducted in the computation of federal taxable income, for taxable
years beginning after December 31, 2010, and before January 1, 2013, the difference
between the standard deduction allowed under section 63(c) of the Internal Revenue Code
and the standard deduction allowed for 2011 and 2012 under the Internal Revenue Code
as amended through December 1, 2010.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after
December 31, 2012.
new text end
Sec. 5.
Minnesota Statutes 2012, section 290.01, subdivision 19c, is amended to read:
Subd. 19c.
Corporations; additions to federal taxable income.
For corporations,
there shall be added to federal taxable income:
(1) the amount of any deduction taken for federal income tax purposes for income,
excise, or franchise taxes based on net income or related minimum taxes, including but not
limited to the tax imposed under section 290.0922, paid by the corporation to Minnesota,
another state, a political subdivision of another state, the District of Columbia, or any
foreign country or possession of the United States;
(2) interest not subject to federal tax upon obligations of: the United States, its
possessions, its agencies, or its instrumentalities; the state of Minnesota or any other
state, any of its political or governmental subdivisions, any of its municipalities, or any
of its governmental agencies or instrumentalities; the District of Columbia; or Indian
tribal governments;
(3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal
Revenue Code;
(4) the amount of any net operating loss deduction taken for federal income tax
purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations loss
deduction under section 810 of the Internal Revenue Code;
(5) the amount of any special deductions taken for federal income tax purposes
under sections 241 to 247 and 965 of the Internal Revenue Code;
(6) losses from the business of mining, as defined in section 290.05, subdivision 1,
clause (a), that are not subject to Minnesota income tax;
(7) the amount of any capital losses deducted for federal income tax purposes under
sections 1211 and 1212 of the Internal Revenue Code;
(8) the exempt foreign trade income of a foreign sales corporation under sections
921(a) and 291 of the Internal Revenue Code;
(9) the amount of percentage depletion deducted under sections 611 through 614 and
291 of the Internal Revenue Code;
(10) for certified pollution control facilities placed in service in a taxable year
beginning before December 31, 1986, and for which amortization deductions were elected
under section 169 of the Internal Revenue Code of 1954, as amended through December
31, 1985, the amount of the amortization deduction allowed in computing federal taxable
income for those facilities;
(11) the amount of any deemed dividend from a foreign operating corporation
determined pursuant to section 290.17, subdivision 4, paragraph (g). The deemed dividend
shall be reduced by the amount of the addition to income required by clauses (20), (21),
(22), and (23);
(12) the amount of a partner's pro rata share of net income which does not flow
through to the partner because the partnership elected to pay the tax on the income under
section 6242(a)(2) of the Internal Revenue Code;
(13) the amount of net income excluded under section 114 of the Internal Revenue
Code;
(14) any increase in subpart F income, as defined in section 952(a) of the Internal
Revenue Code, for the taxable year when subpart F income is calculated without regard to
the provisions of Division C, title III, section 303(b) of Public Law 110-343;
(15) 80 percent of the depreciation deduction allowed under section 168(k)(1)(A)
and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause, if the taxpayer
has an activity that in the taxable year generates a deduction for depreciation under
section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the taxable year
that the taxpayer is not allowed to claim for the taxable year, "the depreciation allowed
under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess of the
depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A) over the
amount of the loss from the activity that is not allowed in the taxable year. In succeeding
taxable years when the losses not allowed in the taxable year are allowed, the depreciation
under section 168(k)(1)(A) and (k)(4)(A) is allowed;
(16) new text begin for taxable years beginning before January 1, 2013, new text end 80 percent of the amount by
which the deduction allowed by section 179 of the Internal Revenue Code exceeds the
deduction allowable by section 179 of the Internal Revenue Code of 1986, as amended
through December 31, 2003;
(17) to the extent deducted in computing federal taxable income, the amount of the
deduction allowable under section 199 of the Internal Revenue Code;
(18) for taxable years beginning before January 1, 2013, the exclusion allowed under
section 139A of the Internal Revenue Code for federal subsidies for prescription drug plans;
(19) the amount of expenses disallowed under section 290.10, subdivision 2;
(20) an amount equal to the interest and intangible expenses, losses, and costs paid,
accrued, or incurred by any member of the taxpayer's unitary group to or for the benefit
of a corporation that is a member of the taxpayer's unitary business group that qualifies
as a foreign operating corporation. For purposes of this clause, intangible expenses and
costs include:
(i) expenses, losses, and costs for, or related to, the direct or indirect acquisition,
use, maintenance or management, ownership, sale, exchange, or any other disposition of
intangible property;
(ii) losses incurred, directly or indirectly, from factoring transactions or discounting
transactions;
(iii) royalty, patent, technical, and copyright fees;
(iv) licensing fees; and
(v) other similar expenses and costs.
For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent
applications, trade names, trademarks, service marks, copyrights, mask works, trade
secrets, and similar types of intangible assets.
This clause does not apply to any item of interest or intangible expenses or costs paid,
accrued, or incurred, directly or indirectly, to a foreign operating corporation with respect
to such item of income to the extent that the income to the foreign operating corporation
is income from sources without the United States as defined in subtitle A, chapter 1,
subchapter N, part 1, of the Internal Revenue Code;
(21) except as already included in the taxpayer's taxable income pursuant to clause
(20), any interest income and income generated from intangible property received or
accrued by a foreign operating corporation that is a member of the taxpayer's unitary
group. For purposes of this clause, income generated from intangible property includes:
(i) income related to the direct or indirect acquisition, use, maintenance or
management, ownership, sale, exchange, or any other disposition of intangible property;
(ii) income from factoring transactions or discounting transactions;
(iii) royalty, patent, technical, and copyright fees;
(iv) licensing fees; and
(v) other similar income.
For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent
applications, trade names, trademarks, service marks, copyrights, mask works, trade
secrets, and similar types of intangible assets.
This clause does not apply to any item of interest or intangible income received or accrued
by a foreign operating corporation with respect to such item of income to the extent that
the income is income from sources without the United States as defined in subtitle A,
chapter 1, subchapter N, part 1, of the Internal Revenue Code;
(22) the dividends attributable to the income of a foreign operating corporation that
is a member of the taxpayer's unitary group in an amount that is equal to the dividends
paid deduction of a real estate investment trust under section 561(a) of the Internal
Revenue Code for amounts paid or accrued by the real estate investment trust to the
foreign operating corporation;
(23) the income of a foreign operating corporation that is a member of the taxpayer's
unitary group in an amount that is equal to gains derived from the sale of real or personal
property located in the United States;
(24) for taxable years beginning before January 1, 2010, the additional amount
allowed as a deduction for donation of computer technology and equipment under section
170(e)(6) of the Internal Revenue Code, to the extent deducted from taxable income; and
(25) discharge of indebtedness income resulting from reacquisition of business
indebtedness and deferred under section 108(i) of the Internal Revenue Code.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after
December 31, 2012.
new text end
Sec. 6.
Minnesota Statutes 2012, section 290.06, is amended by adding a subdivision
to read:
new text begin Subd. 2g. new text end
new text begin Income surcharge. new text end
new text begin
(a) In addition to the tax computed under subdivision
2c and section 290.091, for taxable years beginning after December 31, 2012, and
before January 1, 2015, there is a surcharge imposed on individuals, estates, and trusts.
The surcharge equals four percent of taxable net income over a threshold. For married
individuals filing separately, estates, and trusts, the threshold is $250,000. For all other
filers, the threshold is $500,000.
new text end
new text begin
(b) For a nonresident or part-year resident, the surcharge must be allocated based on
the percentage calculated under section 290.06, subdivision 2c, paragraph (e).
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after
December 31, 2012.
new text end
Sec. 7.
Minnesota Statutes 2012, section 297A.68, subdivision 5, is amended to read:
Subd. 5.
Capital equipment.
(a) Capital equipment is exempt. deleted text begin The tax must be
imposed and collected as if the rate under section 297A.62, subdivision 1, applied, and
then refunded in the manner provided in section 297A.75.
deleted text end
"Capital equipment" means machinery and equipment purchased or leased, and used
in this state by the purchaser or lessee primarily for manufacturing, fabricating, mining,
or refining tangible personal property to be sold ultimately at retail if the machinery and
equipment are essential to the integrated production process of manufacturing, fabricating,
mining, or refining. Capital equipment also includes machinery and equipment
used primarily to electronically transmit results retrieved by a customer of an online
computerized data retrieval system.
(b) Capital equipment includes, but is not limited to:
(1) machinery and equipment used to operate, control, or regulate the production
equipment;
(2) machinery and equipment used for research and development, design, quality
control, and testing activities;
(3) environmental control devices that are used to maintain conditions such as
temperature, humidity, light, or air pressure when those conditions are essential to and are
part of the production process;
(4) materials and supplies used to construct and install machinery or equipment;
(5) repair and replacement parts, including accessories, whether purchased as spare
parts, repair parts, or as upgrades or modifications to machinery or equipment;
(6) materials used for foundations that support machinery or equipment;
(7) materials used to construct and install special purpose buildings used in the
production process;
(8) ready-mixed concrete equipment in which the ready-mixed concrete is mixed
as part of the delivery process regardless if mounted on a chassis, repair parts for
ready-mixed concrete trucks, and leases of ready-mixed concrete trucks; and
(9) machinery or equipment used for research, development, design, or production
of computer software.
(c) Capital equipment does not include the following:
(1) motor vehicles taxed under chapter 297B;
(2) machinery or equipment used to receive or store raw materials;
(3) building materials, except for materials included in paragraph (b), clauses (6)
and (7);
(4) machinery or equipment used for nonproduction purposes, including, but not
limited to, the following: plant security, fire prevention, first aid, and hospital stations;
support operations or administration; pollution control; and plant cleaning, disposal of
scrap and waste, plant communications, space heating, cooling, lighting, or safety;
(5) farm machinery and aquaculture production equipment as defined by section
297A.61, subdivisions 12 and 13;
(6) machinery or equipment purchased and installed by a contractor as part of an
improvement to real property;
(7) machinery and equipment used by restaurants in the furnishing, preparing, or
serving of prepared foods as defined in section 297A.61, subdivision 31;
(8) machinery and equipment used to furnish the services listed in section 297A.61,
subdivision 3, paragraph (g), clause (6), items (i) to (vi) and (viii);
(9) machinery or equipment used in the transportation, transmission, or distribution
of petroleum, liquefied gas, natural gas, water, or steam, in, by, or through pipes, lines,
tanks, mains, or other means of transporting those products. This clause does not apply to
machinery or equipment used to blend petroleum or biodiesel fuel as defined in section
239.77; or
(10) any other item that is not essential to the integrated process of manufacturing,
fabricating, mining, or refining.
(d) For purposes of this subdivision:
(1) "Equipment" means independent devices or tools separate from machinery but
essential to an integrated production process, including computers and computer software,
used in operating, controlling, or regulating machinery and equipment; and any subunit or
assembly comprising a component of any machinery or accessory or attachment parts of
machinery, such as tools, dies, jigs, patterns, and molds.
(2) "Fabricating" means to make, build, create, produce, or assemble components or
property to work in a new or different manner.
(3) "Integrated production process" means a process or series of operations through
which tangible personal property is manufactured, fabricated, mined, or refined. For
purposes of this clause, (i) manufacturing begins with the removal of raw materials
from inventory and ends when the last process prior to loading for shipment has been
completed; (ii) fabricating begins with the removal from storage or inventory of the
property to be assembled, processed, altered, or modified and ends with the creation
or production of the new or changed product; (iii) mining begins with the removal of
overburden from the site of the ores, minerals, stone, peat deposit, or surface materials and
ends when the last process before stockpiling is completed; and (iv) refining begins with
the removal from inventory or storage of a natural resource and ends with the conversion
of the item to its completed form.
(4) "Machinery" means mechanical, electronic, or electrical devices, including
computers and computer software, that are purchased or constructed to be used for the
activities set forth in paragraph (a), beginning with the removal of raw materials from
inventory through completion of the product, including packaging of the product.
(5) "Machinery and equipment used for pollution control" means machinery and
equipment used solely to eliminate, prevent, or reduce pollution resulting from an activity
described in paragraph (a).
(6) "Manufacturing" means an operation or series of operations where raw materials
are changed in form, composition, or condition by machinery and equipment and which
results in the production of a new article of tangible personal property. For purposes of
this subdivision, "manufacturing" includes the generation of electricity or steam to be
sold at retail.
(7) "Mining" means the extraction of minerals, ores, stone, or peat.
(8) "Online data retrieval system" means a system whose cumulation of information
is equally available and accessible to all its customers.
(9) "Primarily" means machinery and equipment used 50 percent or more of the time
in an activity described in paragraph (a).
(10) "Refining" means the process of converting a natural resource to an intermediate
or finished product, including the treatment of water to be sold at retail.
(11) This subdivision does not apply to telecommunications equipment as
provided in subdivision 35, and does not apply to wire, cable, fiber, poles, or conduit
for telecommunications services.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after
June 30, 2013.
new text end
Sec. 8.
Minnesota Statutes 2012, section 297A.75, subdivision 1, is amended to read:
Subdivision 1.
Tax collected.
The tax on the gross receipts from the sale of the
following exempt items must be imposed and collected as if the sale were taxable and the
rate under section 297A.62, subdivision 1, applied. The exempt items include:
deleted text begin
(1) capital equipment exempt under section 297A.68, subdivision 5;
deleted text end
deleted text begin (2)deleted text end new text begin (1)new text end building materials for an agricultural processing facility exempt under section
297A.71, subdivision 13;
deleted text begin (3)deleted text end new text begin (2)new text end building materials for mineral production facilities exempt under section
297A.71, subdivision 14;
deleted text begin (4)deleted text end new text begin (3)new text end building materials for correctional facilities under section 297A.71,
subdivision 3;
deleted text begin (5)deleted text end new text begin (4)new text end building materials used in a residence for disabled veterans exempt under
section 297A.71, subdivision 11;
deleted text begin (6)deleted text end new text begin (5)new text end elevators and building materials exempt under section 297A.71, subdivision
12;
deleted text begin (7)deleted text end new text begin (6)new text end building materials for the Long Lake Conservation Center exempt under
section 297A.71, subdivision 17;
deleted text begin (8)deleted text end new text begin (7)new text end materials and supplies for qualified low-income housing under section
297A.71, subdivision 23;
deleted text begin (9)deleted text end new text begin (8)new text end materials, supplies, and equipment for municipal electric utility facilities
under section 297A.71, subdivision 35;
deleted text begin (10)deleted text end new text begin (9)new text end equipment and materials used for the generation, transmission, and
distribution of electrical energy and an aerial camera package exempt under section
297A.68, subdivision 37;
deleted text begin (11)deleted text end new text begin (10)new text end commuter rail vehicle and repair parts under section 297A.70, subdivision
3, paragraph (a), clause (10);
deleted text begin (12)deleted text end new text begin (11)new text end materials, supplies, and equipment for construction or improvement of
projects and facilities under section 297A.71, subdivision 40;
deleted text begin (13)deleted text end new text begin (12)new text end materials, supplies, and equipment for construction or improvement of a
meat processing facility exempt under section 297A.71, subdivision 41;
deleted text begin (14)deleted text end new text begin (13)new text end materials, supplies, and equipment for construction, improvement, or
expansion of an aerospace defense manufacturing facility exempt under section 297A.71,
subdivision 42;
deleted text begin (15)deleted text end new text begin (14)new text end enterprise information technology equipment and computer software for
use in a qualified data center exempt under section 297A.68, subdivision 42; and
deleted text begin (16)deleted text end new text begin (15)new text end materials, supplies, and equipment for qualifying capital projects under
section 297A.71, subdivision 44.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after
June 30, 2013.
new text end
Sec. 9.
Minnesota Statutes 2012, section 297A.75, subdivision 2, is amended to read:
Subd. 2.
Refund; eligible persons.
Upon application on forms prescribed by the
commissioner, a refund equal to the tax paid on the gross receipts of the exempt items
must be paid to the applicant. Only the following persons may apply for the refund:
(1) for subdivision 1, clauses (1) deleted text begin to (3)deleted text end new text begin and (2)new text end , the applicant must be the purchaser;
(2) for subdivision 1, clauses deleted text begin (4)deleted text end new text begin (3)new text end and deleted text begin (7)deleted text end new text begin (6)new text end , the applicant must be the
governmental subdivision;
(3) for subdivision 1, clause deleted text begin (5)deleted text end new text begin (4)new text end , the applicant must be the recipient of the
benefits provided in United States Code, title 38, chapter 21;
(4) for subdivision 1, clause deleted text begin (6)deleted text end new text begin (5)new text end , the applicant must be the owner of the
homestead property;
(5) for subdivision 1, clause deleted text begin (8)deleted text end new text begin (7)new text end , the owner of the qualified low-income housing
project;
(6) for subdivision 1, clause deleted text begin (9)deleted text end new text begin (8)new text end , the applicant must be a municipal electric utility
or a joint venture of municipal electric utilities;
(7) for subdivision 1, clauses deleted text begin (10)deleted text end new text begin (9), (12)new text end , (13),new text begin andnew text end (14), deleted text begin and (15),deleted text end the owner
of the qualifying business; and
(8) for subdivision 1, clausesnew text begin (10),new text end (11), deleted text begin (12),deleted text end and deleted text begin (16)deleted text end new text begin (15)new text end , the applicant must be
the governmental entity that owns or contracts for the project or facility.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after
June 30, 2013.
new text end
Sec. 10.
Minnesota Statutes 2012, section 297A.75, subdivision 3, is amended to read:
Subd. 3.
Application.
(a) The application must include sufficient information
to permit the commissioner to verify the tax paid. If the tax was paid by a contractor,
subcontractor, or builder, under subdivision 1, clause new text begin (3), new text end (4), (5), (6), (7), (8), (9), (10),
(11), (12), (13), (14), new text begin or new text end (15), deleted text begin or (16),deleted text end the contractor, subcontractor, or builder must
furnish to the refund applicant a statement including the cost of the exempt items and the
taxes paid on the items unless otherwise specifically provided by this subdivision. The
provisions of sections 289A.40 and 289A.50 apply to refunds under this section.
(b) An applicant may not file more than two applications per calendar year for
refunds for taxes paid on capital equipment exempt under section 297A.68, subdivision 5.
(c) Total refunds for purchases of items in section 297A.71, subdivision 40, must not
exceed $5,000,000 in fiscal years 2010 and 2011. Applications for refunds for purchases
of items in sections 297A.70, subdivision 3, paragraph (a), clause (11), and 297A.71,
subdivision 40, must not be filed until after June 30, 2009.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after
June 30, 2013.
new text end
Sec. 11. new text begin ESTIMATED TAXES; EXCEPTIONS.
new text end
new text begin
No addition to tax, penalties, or interest may be made under Minnesota Statutes,
section 289A.25, for any period before July 1, 2013, with respect to an underpayment
of estimated tax, to the extent that the underpayment was created or increased by the
surcharge imposed under this article.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after
December 31, 2012.
new text end
Sec. 12. new text begin APPROPRIATIONS.
new text end
new text begin
(a) The amount necessary to increase the aid payment percentage in section 3 to 90
percent, estimated to be $262,600,000, is appropriated in fiscal year 2014 from the general
fund to the commissioner of education.
new text end
new text begin
(b) The amount necessary to reduce the percentage of levy recognized in the prior
calendar year in section 2 from 48.6 percent to zero percent, estimated to be $569,900,000,
is appropriated in fiscal year 2014 from the general fund to the commissioner of education.
new text end
new text begin
(c) The amount paid in additional state general education aids and other school aids
as a result of reducing the percentage of levy recognized in the prior calendar year in
Minnesota Statutes, section 123B.75, subdivision 5, from 48.6 percent to zero percent,
estimated to be $21,700,000, is appropriated in fiscal year 2015 from the general fund to
the commissioner of education.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
ARTICLE 2
HOMESTEAD CREDIT REFUND AND RENTER PROPERTY TAX REFUND
Section 1.
Minnesota Statutes 2012, section 290A.03, subdivision 3, is amended to read:
Subd. 3.
Income.
(1) "Income" means the sum of the following:
(a) federal adjusted gross income as defined in the Internal Revenue Code; and
(b) the sum of the following amounts to the extent not included in clause (a):
(i) all nontaxable income;
(ii) the amount of a passive activity loss that is not disallowed as a result of section
469, paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity
loss carryover allowed under section 469(b) of the Internal Revenue Code;
(iii) an amount equal to the total of any discharge of qualified farm indebtedness
of a solvent individual excluded from gross income under section 108(g) of the Internal
Revenue Code;
(iv) cash public assistance and relief;
(v) any pension or annuity (including railroad retirement benefits, all payments
received under the federal Social Security Act, Supplemental Security Income, and
veterans benefits), which was not exclusively funded by the claimant or spouse, or which
was funded exclusively by the claimant or spouse and which funding payments were
excluded from federal adjusted gross income in the years when the payments were made;
(vi) interest received from the federal or a state government or any instrumentality
or political subdivision thereof;
(vii) workers' compensation;
(viii) nontaxable strike benefits;
(ix) the gross amounts of payments received in the nature of disability income or
sick pay as a result of accident, sickness, or other disability, whether funded through
insurance or otherwise;
(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
1986, as amended through December 31, 1995;
(xi) contributions made by the claimant to an individual retirement account,
including a qualified voluntary employee contribution; simplified employee pension plan;
self-employed retirement plan; cash or deferred arrangement plan under section 401(k)
of the Internal Revenue Code; or deferred compensation plan under section 457 of the
Internal Revenue Codenew text begin , to the extent the sum of amounts exceeds the retirement base
amount for the claimant and spousenew text end ;
(xii)new text begin to the extent not included in federal adjusted gross income, distributions received
by the claimant or spouse from a traditional or Roth style retirement account or plan;
new text end
new text begin (xiii)new text end nontaxable scholarship or fellowship grants;
deleted text begin (xiii)deleted text end new text begin (xiv)new text end the amount of deduction allowed under section 199 of the Internal
Revenue Code;
deleted text begin (xiv)deleted text end new text begin (xv)new text end the amount of deduction allowed under section 220 or 223 of the Internal
Revenue Code;
new text begin new text end
deleted text begin (xv)deleted text end new text begin (xvi)new text end the amount deleted text begin ofdeleted text end new text begin deducted for new text end tuition expenses deleted text begin required to be added to
income under section 290.01, subdivision 19a, clause (12);deleted text end new text begin under section 222 of the
Internal Revenue Code; and
new text end
deleted text begin (xvi)deleted text end new text begin (xvii)new text end the amount deducted for certain expenses of elementary and secondary
school teachers under section 62(a)(2)(D) of the Internal Revenue Codedeleted text begin ; anddeleted text end new text begin .
new text end
deleted text begin
(xvii) unemployment compensation.
deleted text end
In the case of an individual who files an income tax return on a fiscal year basis, the
term "federal adjusted gross income" shall mean federal adjusted gross income reflected
in the fiscal year ending in the calendar year. Federal adjusted gross income shall not be
reduced by the amount of a net operating loss carryback or carryforward or a capital loss
carryback or carryforward allowed for the year.
(2) "Income" does not include:
(a) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
(b) amounts of any pension or annuity which was exclusively funded by the claimant
or spouse and which funding payments were not excluded from federal adjusted gross
income in the years when the payments were made;
(c)new text begin to the extent included in federal adjusted gross income, amounts contributed by
the claimant or spouse to a traditional or Roth style retirement account or plan, but not
to exceed the retirement base amount reduced by the amount of contributions excluded
from federal adjusted gross income, but not less than zero;
new text end
new text begin (d)new text end surplus food or other relief in kind supplied by a governmental agency;
deleted text begin (d)deleted text end new text begin (e)new text end relief granted under this chapter;
deleted text begin (e)deleted text end new text begin (f)new text end child support payments received under a temporary or final decree of
dissolution or legal separation; or
deleted text begin (f)deleted text end new text begin (g)new text end restitution payments received by eligible individuals and excludable interest
as defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of
2001, Public Law 107-16.
(3) The sum of the following amounts may be subtracted from income:
(a) for the claimant's first dependent, the exemption amount multiplied by 1.4;
(b) for the claimant's second dependent, the exemption amount multiplied by 1.3;
(c) for the claimant's third dependent, the exemption amount multiplied by 1.2;
(d) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
(e) for the claimant's fifth dependent, the exemption amount; and
(f) if the claimant or claimant's spouse was disabled or attained the age of 65
on or before December 31 of the year for which the taxes were levied or rent paid, the
exemption amount.
For purposes of this subdivision, the "exemption amount" means the exemption
amount under section 151(d) of the Internal Revenue Code for the taxable year for which
the income is reportednew text begin ; and "retirement base amount" means the deductible amount for
the taxable year for the claimant and spouse under section 219(b)(5)(A) of the Internal
Revenue Code, adjusted for inflation as provided in section 219(b)(5)(D) of the Internal
Revenue Code, without regard to whether the claimant or spouse claimed a deductionnew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with refunds based on
property taxes payable in 2014 and rent paid in 2013.
new text end
Sec. 2.
Minnesota Statutes 2012, section 290A.04, subdivision 2, is amended to read:
Subd. 2.
Homeownersnew text begin ; homestead credit refundnew text end .
A claimant whose property
taxes payable are in excess of the percentage of the household income stated below shall
pay an amount equal to the percent of income shown for the appropriate household
income level along with the percent to be paid by the claimant of the remaining amount
of property taxes payable. The state refund equals the amount of property taxes payable
that remain, up to the state refund amount shown below.
|
deleted text begin
Household Income deleted text end |
deleted text begin
Percent of Income deleted text end |
deleted text begin
Percent Paid by Claimant deleted text end |
deleted text begin
Maximum State Refund deleted text end |
|
|
deleted text begin
$0 to 1,549 deleted text end |
deleted text begin
1.0 percent deleted text end |
deleted text begin
15 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
2,460 deleted text end |
|
deleted text begin
1,550 to 3,089 deleted text end |
deleted text begin
1.1 percent deleted text end |
deleted text begin
15 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
2,460 deleted text end |
|
deleted text begin
3,090 to 4,669 deleted text end |
deleted text begin
1.2 percent deleted text end |
deleted text begin
15 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
2,460 deleted text end |
|
deleted text begin
4,670 to 6,229 deleted text end |
deleted text begin
1.3 percent deleted text end |
deleted text begin
20 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
2,460 deleted text end |
|
deleted text begin
6,230 to 7,769 deleted text end |
deleted text begin
1.4 percent deleted text end |
deleted text begin
20 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
2,460 deleted text end |
|
deleted text begin
7,770 to 10,879 deleted text end |
deleted text begin
1.5 percent deleted text end |
deleted text begin
20 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
2,460 deleted text end |
|
deleted text begin
10,880 to 12,429 deleted text end |
deleted text begin
1.6 percent deleted text end |
deleted text begin
20 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
2,460 deleted text end |
|
deleted text begin
12,430 to 13,989 deleted text end |
deleted text begin
1.7 percent deleted text end |
deleted text begin
20 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
2,460 deleted text end |
|
deleted text begin
13,990 to 15,539 deleted text end |
deleted text begin
1.8 percent deleted text end |
deleted text begin
20 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
2,460 deleted text end |
|
deleted text begin
15,540 to 17,079 deleted text end |
deleted text begin
1.9 percent deleted text end |
deleted text begin
25 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
2,460 deleted text end |
|
deleted text begin
17,080 to 18,659 deleted text end |
deleted text begin
2.0 percent deleted text end |
deleted text begin
25 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
2,460 deleted text end |
|
deleted text begin
18,660 to 21,759 deleted text end |
deleted text begin
2.1 percent deleted text end |
deleted text begin
25 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
2,460 deleted text end |
|
deleted text begin
21,760 to 23,309 deleted text end |
deleted text begin
2.2 percent deleted text end |
deleted text begin
30 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
2,460 deleted text end |
|
deleted text begin
23,310 to 24,859 deleted text end |
deleted text begin
2.3 percent deleted text end |
deleted text begin
30 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
2,460 deleted text end |
|
deleted text begin
24,860 to 26,419 deleted text end |
deleted text begin
2.4 percent deleted text end |
deleted text begin
30 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
2,460 deleted text end |
|
deleted text begin
26,420 to 32,629 deleted text end |
deleted text begin
2.5 percent deleted text end |
deleted text begin
35 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
2,460 deleted text end |
|
deleted text begin
32,630 to 37,279 deleted text end |
deleted text begin
2.6 percent deleted text end |
deleted text begin
35 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
2,460 deleted text end |
|
deleted text begin
37,280 to 46,609 deleted text end |
deleted text begin
2.7 percent deleted text end |
deleted text begin
35 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
2,000 deleted text end |
|
deleted text begin
46,610 to 54,369 deleted text end |
deleted text begin
2.8 percent deleted text end |
deleted text begin
35 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
2,000 deleted text end |
|
deleted text begin
54,370 to 62,139 deleted text end |
deleted text begin
2.8 percent deleted text end |
deleted text begin
40 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
1,750 deleted text end |
|
deleted text begin
62,140 to 69,909 deleted text end |
deleted text begin
3.0 percent deleted text end |
deleted text begin
40 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
1,440 deleted text end |
|
deleted text begin
69,910 to 77,679 deleted text end |
deleted text begin
3.0 percent deleted text end |
deleted text begin
40 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
1,290 deleted text end |
|
deleted text begin
77,680 to 85,449 deleted text end |
deleted text begin
3.0 percent deleted text end |
deleted text begin
40 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
1,130 deleted text end |
|
deleted text begin
85,450 to 90,119 deleted text end |
deleted text begin
3.5 percent deleted text end |
deleted text begin
45 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
960 deleted text end |
|
deleted text begin
90,120 to 93,239 deleted text end |
deleted text begin
3.5 percent deleted text end |
deleted text begin
45 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
790 deleted text end |
|
deleted text begin
93,240 to 97,009 deleted text end |
deleted text begin
3.5 percent deleted text end |
deleted text begin
50 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
650 deleted text end |
|
deleted text begin
97,010 to 100,779 deleted text end |
deleted text begin
3.5 percent deleted text end |
deleted text begin
50 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
480 deleted text end |
|
new text begin
Household Income new text end |
new text begin
Percent of Income new text end |
new text begin
Percent Paid by Claimant new text end |
new text begin
Maximum State Refund new text end |
|
|
new text begin
$0 to 1,619 new text end |
new text begin
1.0 percent new text end |
new text begin
15 percent new text end |
new text begin
$ new text end |
new text begin
2,580 new text end |
|
new text begin
1,620 to 3,229 new text end |
new text begin
1.1 percent new text end |
new text begin
15 percent new text end |
new text begin
$ new text end |
new text begin
2,580 new text end |
|
new text begin
3,230 to 4,889 new text end |
new text begin
1.2 percent new text end |
new text begin
15 percent new text end |
new text begin
$ new text end |
new text begin
2,580 new text end |
|
new text begin
4,890 to 6,519 new text end |
new text begin
1.3 percent new text end |
new text begin
20 percent new text end |
new text begin
$ new text end |
new text begin
2,580 new text end |
|
new text begin
6,520 to 8,129 new text end |
new text begin
1.4 percent new text end |
new text begin
20 percent new text end |
new text begin
$ new text end |
new text begin
2,580 new text end |
|
new text begin
8,130 to 11,389 new text end |
new text begin
1.5 percent new text end |
new text begin
20 percent new text end |
new text begin
$ new text end |
new text begin
2,580 new text end |
|
new text begin
11,390 to 13,009 new text end |
new text begin
1.6 percent new text end |
new text begin
20 percent new text end |
new text begin
$ new text end |
new text begin
2,580 new text end |
|
new text begin
13,010 to 14,649 new text end |
new text begin
1.7 percent new text end |
new text begin
20 percent new text end |
new text begin
$ new text end |
new text begin
2,580 new text end |
|
new text begin
14,650 to 16,269 new text end |
new text begin
1.8 percent new text end |
new text begin
20 percent new text end |
new text begin
$ new text end |
new text begin
2,580 new text end |
|
new text begin
16,270 to 17,879 new text end |
new text begin
1.9 percent new text end |
new text begin
25 percent new text end |
new text begin
$ new text end |
new text begin
2,580 new text end |
|
new text begin
17,880 to 22,779 new text end |
new text begin
2.0 percent new text end |
new text begin
25 percent new text end |
new text begin
$ new text end |
new text begin
2,580 new text end |
|
new text begin
22,780 to 24,399 new text end |
new text begin
2.0 percent new text end |
new text begin
30 percent new text end |
new text begin
$ new text end |
new text begin
2,580 new text end |
|
new text begin
24,400 to 27,659 new text end |
new text begin
2.0 percent new text end |
new text begin
30 percent new text end |
new text begin
$ new text end |
new text begin
2,580 new text end |
|
new text begin
27,660 to 39,029 new text end |
new text begin
2.0 percent new text end |
new text begin
35 percent new text end |
new text begin
$ new text end |
new text begin
2,580 new text end |
|
new text begin
39,030 to 56,919 new text end |
new text begin
2.0 percent new text end |
new text begin
35 percent new text end |
new text begin
$ new text end |
new text begin
2,090 new text end |
|
new text begin
56,920 to 65,049 new text end |
new text begin
2.0 percent new text end |
new text begin
40 percent new text end |
new text begin
$ new text end |
new text begin
1,830 new text end |
|
new text begin
65,050 to 73,189 new text end |
new text begin
2.1 percent new text end |
new text begin
40 percent new text end |
new text begin
$ new text end |
new text begin
1,510 new text end |
|
new text begin
73,190 to 81,319 new text end |
new text begin
2.2 percent new text end |
new text begin
40 percent new text end |
new text begin
$ new text end |
new text begin
1,350 new text end |
|
new text begin
81,320 to 89,449 new text end |
new text begin
2.3 percent new text end |
new text begin
40 percent new text end |
new text begin
$ new text end |
new text begin
1,180 new text end |
|
new text begin
89,450 to 94,339 new text end |
new text begin
2.4 percent new text end |
new text begin
45 percent new text end |
new text begin
$ new text end |
new text begin
1,000 new text end |
|
new text begin
94,340 to 97,609 new text end |
new text begin
2.5 percent new text end |
new text begin
45 percent new text end |
new text begin
$ new text end |
new text begin
830 new text end |
|
new text begin
97,610 to 101,559 new text end |
new text begin
2.5 percent new text end |
new text begin
50 percent new text end |
new text begin
$ new text end |
new text begin
680 new text end |
|
new text begin
101,560 to 105,499 new text end |
new text begin
2.5 percent new text end |
new text begin
50 percent new text end |
new text begin
$ new text end |
new text begin
500 new text end |
The payment made to a claimant shall be the amount of the state refund calculated
under this subdivision. No payment is allowed if the claimant's household income is
deleted text begin $100,780deleted text end new text begin $105,500new text end or more.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for refund claims based on taxes
payable in 2014 and thereafter.
new text end
Sec. 3.
Minnesota Statutes 2012, section 290A.04, subdivision 2a, is amended to read:
Subd. 2a.
Renters.
A claimant whose rent constituting property taxes exceeds the
percentage of the household income stated below must pay an amount equal to the percent
of income shown for the appropriate household income level along with the percent to
be paid by the claimant of the remaining amount of rent constituting property taxes. The
state refund equals the amount of rent constituting property taxes that remain, up to the
maximum state refund amount shown below.
| Household Income |
Percent of Income |
Percent Paid by Claimant |
Maximum State Refund |
|
|
deleted text begin
$0 to 3,589 deleted text end |
deleted text begin
1.0 percent deleted text end |
deleted text begin
5 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
1,190 deleted text end |
|
deleted text begin
3,590 to 4,779 deleted text end |
deleted text begin
1.0 percent deleted text end |
deleted text begin
10 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
1,190 deleted text end |
|
deleted text begin
4,780 to 5,969 deleted text end |
deleted text begin
1.1 percent deleted text end |
deleted text begin
10 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
1,190 deleted text end |
|
deleted text begin
5,970 to 8,369 deleted text end |
deleted text begin
1.2 percent deleted text end |
deleted text begin
10 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
1,190 deleted text end |
|
deleted text begin
8,370 to 10,759 deleted text end |
deleted text begin
1.3 percent deleted text end |
deleted text begin
15 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
1,190 deleted text end |
|
deleted text begin
10,760 to 11,949 deleted text end |
deleted text begin
1.4 percent deleted text end |
deleted text begin
15 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
1,190 deleted text end |
|
deleted text begin
11,950 to 13,139 deleted text end |
deleted text begin
1.4 percent deleted text end |
deleted text begin
20 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
1,190 deleted text end |
|
deleted text begin
13,140 to 15,539 deleted text end |
deleted text begin
1.5 percent deleted text end |
deleted text begin
20 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
1,190 deleted text end |
|
deleted text begin
15,540 to 16,729 deleted text end |
deleted text begin
1.6 percent deleted text end |
deleted text begin
20 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
1,190 deleted text end |
|
deleted text begin
16,730 to 17,919 deleted text end |
deleted text begin
1.7 percent deleted text end |
deleted text begin
25 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
1,190 deleted text end |
|
deleted text begin
17,920 to 20,319 deleted text end |
deleted text begin
1.8 percent deleted text end |
deleted text begin
25 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
1,190 deleted text end |
|
deleted text begin
20,320 to 21,509 deleted text end |
deleted text begin
1.9 percent deleted text end |
deleted text begin
30 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
1,190 deleted text end |
|
deleted text begin
21,510 to 22,699 deleted text end |
deleted text begin
2.0 percent deleted text end |
deleted text begin
30 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
1,190 deleted text end |
|
deleted text begin
22,700 to 23,899 deleted text end |
deleted text begin
2.2 percent deleted text end |
deleted text begin
30 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
1,190 deleted text end |
|
deleted text begin
23,900 to 25,089 deleted text end |
deleted text begin
2.4 percent deleted text end |
deleted text begin
30 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
1,190 deleted text end |
|
deleted text begin
25,090 to 26,289 deleted text end |
deleted text begin
2.6 percent deleted text end |
deleted text begin
35 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
1,190 deleted text end |
|
deleted text begin
26,290 to 27,489 deleted text end |
deleted text begin
2.7 percent deleted text end |
deleted text begin
35 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
1,190 deleted text end |
|
deleted text begin
27,490 to 28,679 deleted text end |
deleted text begin
2.8 percent deleted text end |
deleted text begin
35 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
1,190 deleted text end |
|
deleted text begin
28,680 to 29,869 deleted text end |
deleted text begin
2.9 percent deleted text end |
deleted text begin
40 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
1,190 deleted text end |
|
deleted text begin
29,870 to 31,079 deleted text end |
deleted text begin
3.0 percent deleted text end |
deleted text begin
40 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
1,190 deleted text end |
|
deleted text begin
31,080 to 32,269 deleted text end |
deleted text begin
3.1 percent deleted text end |
deleted text begin
40 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
1,190 deleted text end |
|
deleted text begin
32,270 to 33,459 deleted text end |
deleted text begin
3.2 percent deleted text end |
deleted text begin
40 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
1,190 deleted text end |
|
deleted text begin
33,460 to 34,649 deleted text end |
deleted text begin
3.3 percent deleted text end |
deleted text begin
45 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
1,080 deleted text end |
|
deleted text begin
34,650 to 35,849 deleted text end |
deleted text begin
3.4 percent deleted text end |
deleted text begin
45 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
960 deleted text end |
|
deleted text begin
35,850 to 37,049 deleted text end |
deleted text begin
3.5 percent deleted text end |
deleted text begin
45 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
830 deleted text end |
|
deleted text begin
37,050 to 38,239 deleted text end |
deleted text begin
3.5 percent deleted text end |
deleted text begin
50 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
720 deleted text end |
|
deleted text begin
38,240 to 39,439 deleted text end |
deleted text begin
3.5 percent deleted text end |
deleted text begin
50 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
600 deleted text end |
|
deleted text begin
38,440 to 40,629 deleted text end |
deleted text begin
3.5 percent deleted text end |
deleted text begin
50 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
360 deleted text end |
|
deleted text begin
40,630 to 41,819 deleted text end |
deleted text begin
3.5 percent deleted text end |
deleted text begin
50 percent deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
120 deleted text end |
|
new text begin
$0 to 4,909 new text end |
new text begin
1.0 percent new text end |
new text begin
5 percent new text end |
new text begin
$ new text end |
new text begin
2,000 new text end |
|
new text begin
4,910 to 6,529 new text end |
new text begin
1.0 percent new text end |
new text begin
10 percent new text end |
new text begin
$ new text end |
new text begin
2,000 new text end |
|
new text begin
6,530 to 8,159 new text end |
new text begin
1.1 percent new text end |
new text begin
10 percent new text end |
new text begin
$ new text end |
new text begin
1,950 new text end |
|
new text begin
8,160 to 11,439 new text end |
new text begin
1.2 percent new text end |
new text begin
10 percent new text end |
new text begin
$ new text end |
new text begin
1,900 new text end |
|
new text begin
11,440 to 14,709 new text end |
new text begin
1.3 percent new text end |
new text begin
15 percent new text end |
new text begin
$ new text end |
new text begin
1,850 new text end |
|
new text begin
14,710 to 16,339 new text end |
new text begin
1.4 percent new text end |
new text begin
15 percent new text end |
new text begin
$ new text end |
new text begin
1,800 new text end |
|
new text begin
16,340 to 17,959 new text end |
new text begin
1.4 percent new text end |
new text begin
20 percent new text end |
new text begin
$ new text end |
new text begin
1,750 new text end |
|
new text begin
17,960 to 21,239 new text end |
new text begin
1.5 percent new text end |
new text begin
20 percent new text end |
new text begin
$ new text end |
new text begin
1,700 new text end |
|
new text begin
21,240 to 22,869 new text end |
new text begin
1.6 percent new text end |
new text begin
20 percent new text end |
new text begin
$ new text end |
new text begin
1,650 new text end |
|
new text begin
22,870 to 24,499 new text end |
new text begin
1.7 percent new text end |
new text begin
25 percent new text end |
new text begin
$ new text end |
new text begin
1,650 new text end |
|
new text begin
24,500 to 27,779 new text end |
new text begin
1.8 percent new text end |
new text begin
25 percent new text end |
new text begin
$ new text end |
new text begin
1,650 new text end |
|
new text begin
27,780 to 29,399 new text end |
new text begin
1.9 percent new text end |
new text begin
30 percent new text end |
new text begin
$ new text end |
new text begin
1,650 new text end |
|
new text begin
29,400 to 34,299 new text end |
new text begin
2.0 percent new text end |
new text begin
30 percent new text end |
new text begin
$ new text end |
new text begin
1,650 new text end |
|
new text begin
34,300 to 39,199 new text end |
new text begin
2.0 percent new text end |
new text begin
35 percent new text end |
new text begin
$ new text end |
new text begin
1,650 new text end |
|
new text begin
39,200 to 45,739 new text end |
new text begin
2.0 percent new text end |
new text begin
40 percent new text end |
new text begin
$ new text end |
new text begin
1,650 new text end |
|
new text begin
45,740 to 47,369 new text end |
new text begin
2.0 percent new text end |
new text begin
45 percent new text end |
new text begin
$ new text end |
new text begin
1,500 new text end |
|
new text begin
47,370 to 49,009 new text end |
new text begin
2.0 percent new text end |
new text begin
45 percent new text end |
new text begin
$ new text end |
new text begin
1,350 new text end |
|
new text begin
49,010 to 50,649 new text end |
new text begin
2.0 percent new text end |
new text begin
45 percent new text end |
new text begin
$ new text end |
new text begin
1,150 new text end |
|
new text begin
50,650 to 52,269 new text end |
new text begin
2.0 percent new text end |
new text begin
50 percent new text end |
new text begin
$ new text end |
new text begin
1,000 new text end |
|
new text begin
52,270 to 53,909 new text end |
new text begin
2.0 percent new text end |
new text begin
50 percent new text end |
new text begin
$ new text end |
new text begin
900 new text end |
|
new text begin
53,910 to 55,539 new text end |
new text begin
2.0 percent new text end |
new text begin
50 percent new text end |
new text begin
$ new text end |
new text begin
500 new text end |
|
new text begin
55,540 to 57,169 new text end |
new text begin
2.0 percent new text end |
new text begin
50 percent new text end |
new text begin
$ new text end |
new text begin
200 new text end |
The payment made to a claimant is the amount of the state refund calculated under
this subdivision. No payment is allowed if the claimant's household income is deleted text begin $41,820
deleted text end new text begin $57,170new text end or more.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for claims based on rent paid in
2013 and following years.
new text end
Sec. 4.
Minnesota Statutes 2012, section 290A.04, subdivision 4, is amended to read:
Subd. 4.
Inflation adjustment.
(a) Beginning for property tax refunds payable in
calendar year 2002, the commissioner shall annually adjust the dollar amounts of the
income thresholds and the maximum refunds under subdivisions 2 and 2a for inflation.
The commissioner shall make the inflation adjustments in accordance with section 1(f) of
the Internal Revenue Code, except that for purposes of this subdivision the percentage
increase shall be determined as provided in this subdivision.
(b) In adjusting the dollar amounts of the income thresholds and the maximum
refunds under subdivision 2 for inflation, the percentage increase shall be determined
from the year ending on June 30, deleted text begin 2011deleted text end new text begin 2013new text end , to the year ending on June 30 of the year
preceding that in which the refund is payable.
(c) In adjusting the dollar amounts of the income thresholds and the maximum
refunds under subdivision 2a for inflation, the percentage increase shall be determined
from the year ending on June 30, deleted text begin 2000deleted text end new text begin 2013new text end , to the year ending on June 30 of the year
preceding that in which the refund is payable.
(d) The commissioner shall use the appropriate percentage increase to annually
adjust the income thresholds and maximum refunds under subdivisions 2 and 2a for
inflation without regard to whether or not the income tax brackets are adjusted for inflation
in that year. The commissioner shall round the thresholds and the maximum amounts,
as adjusted to the nearest $10 amount. If the amount ends in $5, the commissioner shall
round it up to the next $10 amount.
(e) The commissioner shall annually announce the adjusted refund schedule at the
same time provided under section 290.06. The determination of the commissioner under
this subdivision is not a rule under the Administrative Procedure Act.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for refund claims based on taxes
payable in 2014 and rent paid in 2013 and following years.
new text end
Sec. 5.
new text begin
[290A.28] NOTIFICATION OF POTENTIAL ELIGIBILITY.
new text end
new text begin Subdivision 1. new text end
new text begin Notification of eligibility. new text end
new text begin
(a) By August 1, 2014, the commissioner
shall notify, in writing or electronically, individual homeowners whom the commissioner
determines likely will be eligible for a homestead credit refund under this chapter for
that property taxes payable year. In determining whether to notify a homeowner, the
commissioner shall consider the property tax information available to the commissioner
under paragraph (b) and the most recent income information available to the commissioner
from filing under this chapter for the prior year or under chapter 290 for the current or
prior year. The notification must include information on how to file for the homestead
credit refund and the range of potential homestead credit refunds that the homeowner
could qualify to receive. The notification requirement under this section does not apply
to a homeowner who has already filed for the homestead credit refund for the current
or prior year.
new text end
new text begin
(b) By May 15, 2014, each county auditor shall transmit to the commissioner
of revenue the following information for each property classified as a residential or
agricultural homestead under section 273.13, subdivision 22 or 23:
new text end
new text begin
(1) the property taxes payable;
new text end
new text begin
(2) the name and address of the owner;
new text end
new text begin
(3) the Social Security number or numbers of the owners; and
new text end
new text begin
(4) any other information the commissioner deems necessary or useful to carry
out the provisions of this section.
new text end
new text begin
The information must be provided in the form and manner prescribed by the commissioner.
new text end
new text begin Subd. 2. new text end
new text begin Report. new text end
new text begin
By March 15, 2015, the commissioner must provide written
reports to the chairs and ranking minority members of the legislative committees with
jurisdiction over taxes, in compliance with Minnesota Statutes, sections 3.195 and 3.197.
The report must provide information on the number and dollar amount of homeowner
property tax refund claims based on taxes payable in 2014, including:
new text end
new text begin
(i) the number and dollar amount of claims projected for homestead credit refunds
based on taxes payable in 2014 prior to enactment of the notification requirement in
this section;
new text end
new text begin
(ii) the number of notifications issued as provided in this section, including the
number issued by county;
new text end
new text begin
(iii) the number and dollar amount of claims for homestead credit refunds based on
taxes payable in 2014 processed through December 31, 2014; and
new text end
new text begin
(iv) a description of any outreach efforts undertaken by the commissioner for
homestead credit refunds based on taxes payable in 2014, in addition to the notification
required in this section.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for refund claims based on property
taxes payable in 2014.
new text end
ARTICLE 3
PROPERTY TAX AIDS AND CREDITS
Section 1.
Minnesota Statutes 2012, section 69.021, is amended by adding a
subdivision to read:
new text begin Subd. 12. new text end
new text begin Surcharge aid accounts. new text end
new text begin
(a) A surcharge fire pension aid account is
established in the special revenue fund to receive amounts as provided under section
297I.07, subdivision 3, clause (1). The commissioner shall administer the account and
allocate money in the account as follows:
new text end
new text begin
(1) 17.342 percent as supplemental state pension funding paid to the executive
director of the Public Employees Retirement Association for deposit in the public
employees police and fire retirement fund established by section 353.65, subdivision 1;
new text end
new text begin
(2) 8.658 percent to municipalities employing firefighters with retirement coverage
by the public employees police and fire retirement plan, allocated in proportion to the
relationship that the preceding December 31 number of firefighters employed by each
municipality who have public employees police and fire retirement plan coverage bears to
the total preceding December 31 number of municipal firefighters covered by the public
employees police and fire retirement plan; and
new text end
new text begin
(3) 74 percent for municipalities other than the municipalities receiving a
disbursement under clause (2) which qualified to receive fire state aid in that calendar year,
allocated in proportion to the most recent amount of fire state aid paid under subdivision 7
for the municipality bears to the most recent total fire state aid for all municipalities other
than the municipalities receiving a disbursement under clause (2) paid under subdivision
7, with the allocated amount for fire departments participating in the voluntary statewide
lump-sum volunteer firefighter retirement plan paid to the executive director of the Public
Employees Retirement Association for deposit in the fund established by section 353G.02,
subdivision 3, and credited to the respective account and with the balance paid to the
treasurer of each municipality for transmittal within 30 days of receipt to the treasurer of
the applicable volunteer firefighter relief association for deposit in its special fund.
new text end
new text begin
(b) A surcharge police pension aid account is established in the special revenue
fund to receive amounts as provided by section 297I.07, subdivision 3, clause (2). The
commissioner shall administer the account and allocate money in the account as follows:
new text end
new text begin
(1) one-third to be distributed as police state aid as provided under subdivision 7a; and
new text end
new text begin
(2) two-thirds to be apportioned, on the basis of the number of active police officers
certified for police state aid receipt under section 69.011, subdivisions 2 and 2b, between:
new text end
new text begin
(i) the executive director of the Public Employees Retirement Association for
deposit as a supplemental state pension funding aid in the public employees police and fire
retirement fund established by section 353.65, subdivision 1; and
new text end
new text begin
(ii) the executive director of the Minnesota State Retirement System for deposit as a
supplemental state pension funding aid in the state patrol retirement fund.
new text end
new text begin
(c) On or before September 1, annually, the executive director of the Public
Employees Retirement Association shall report to the commissioner the following:
new text end
new text begin
(1) the municipalities which employ firefighters with retirement coverage by the
public employees police and fire retirement plan;
new text end
new text begin
(2) the number of firefighters with public employees police and fire retirement plan
employed by each municipality;
new text end
new text begin
(3) the fire departments covered by the voluntary statewide lump-sum volunteer
firefighter retirement plan; and
new text end
new text begin
(4) any other information requested by the commissioner to administer the surcharge
fire pension aid account.
new text end
new text begin
(d) For this subdivision, (i) the number of firefighters employed by a municipality
who have public employees police and fire retirement plan coverage means the number
of firefighters with public employees police and fire retirement plan coverage that were
employed by the municipality for not less than 30 hours per week for a minimum of six
months prior to December 31 preceding the date of the payment under this section and, if
the person was employed for less than the full year, prorated to the number of full months
employed; and, (ii) the number of active police officers certified for police state aid receipt
under section 69.011, subdivisions 2 and 2b means, for each municipality, the number of
police officers meeting the definition of peace officer in section 69.011, subdivision 1,
counted as provided and limited by section 69.011, subdivisions 2 and 2b.
new text end
new text begin
(e) The payments under this section shall be made on October 1 each year, based
on the amount in the surcharge fire pension aid account and the amount in the surcharge
police pension aid account on the preceding June 30, with interest at 1 percent for each
month, or portion of a month, that the amount remains unpaid after October 1. The
amounts necessary to make the payments under this subdivision are annually appropriated
to the commissioner from the surcharge fire and police pension aid accounts. Any
necessary adjustments shall be made to subsequent payments.
new text end
new text begin
(f) The provisions of this chapter that prevent municipalities and relief associations
from being eligible for, or receiving state aid under this chapter until the applicable
financial reporting requirements have been complied with, apply to the amounts payable
to municipalities and relief associations under this subdivision.
new text end
new text begin
(g) The amounts necessary to make the payments under this subdivision are
appropriated to the commissioner from the respective accounts in the special revenue fund.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning in the fiscal year beginning
July 1, 2013.
new text end
Sec. 2.
Minnesota Statutes 2012, section 273.1398, subdivision 4, is amended to read:
Subd. 4.
Disparity reduction credit.
(a) Beginning with taxes payable in 1989,
class 4a and class 3a property qualifies for a disparity reduction credit if: (1) the property
is located in a border city that has an enterprise zone, as defined in section 469.166; (2)
the property is located in a city with a population greater than 2,500 and less than 35,000
according to the 1980 decennial census; (3) the city is adjacent to a city in another state or
immediately adjacent to a city adjacent to a city in another state; and (4) the adjacent city
in the other state has a population of greater than 5,000 and less than 75,000 according to
the 1980 decennial census.
(b) The credit is an amount sufficient to reduce (i) the taxes levied on class 4a
property to deleted text begin 2.3deleted text end new text begin 2new text end percent of the property's market value and (ii) the tax on class 3a property
to deleted text begin 2.3deleted text end new text begin 2new text end percent of market value.
(c) The county auditor shall annually certify the costs of the credits to the
Department of Revenue. The department shall reimburse local governments for the
property taxes forgone as the result of the credits in proportion to their total levies.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2014.
new text end
Sec. 3.
Minnesota Statutes 2012, section 290C.02, subdivision 6, is amended to read:
Subd. 6.
Forest land.
"Forest land" means land containing a minimum of 20
contiguous acres for which the owner has implemented a forest management plan that was
prepared or updated within the past ten years by an approved plan writer. For purposes of
this subdivision, acres are considered to be contiguous even if they are separated by a road,
waterway, railroad track, or other similar intervening property. At least 50 percent of the
contiguous acreage must meet the definition of forest land in section 88.01, subdivision 7.
For the purposes of sections 290C.01 to 290C.11, forest land does not include new text begin the following:
new text end
(i) land used for residential or agricultural purposesdeleted text begin ,deleted text end new text begin ;new text end
(ii) land enrolled in the reinvest in Minnesota program, a state or federal conservation
reserve or easement reserve program under sections 103F.501 to 103F.531, the Minnesota
agricultural property tax law under section 273.111, or land subject to agricultural land
preservation controls or restrictions as defined in section 40A.02 or under the Metropolitan
Agricultural Preserves Act under chapter 473Hdeleted text begin , ordeleted text end new text begin ;new text end
(iii) new text begin land subject to a conservation easement funded under section 97A.056 or a
comparable permanent easement conveyed to a governmental or nonprofit entity; or
new text end
new text begin (iv) new text end land improved with a structure, pavement, sewer, campsite, or any road, other
than a township road, used for purposes not prescribed in the forest management plan.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for payments made beginning in
calendar year 2014.
new text end
Sec. 4.
Minnesota Statutes 2012, section 290C.05, is amended to read:
290C.05 ANNUAL CERTIFICATION.
On or before July 1 of each year, beginning with the year after the original claimant
has received an approved application, the commissioner shall send each claimant enrolled
under the sustainable forest incentive program a certification form. For purposes of this
section, the original claimant is the person that filed the first application under section
290C.04 to enroll the land in the program. The claimant must sign the certification,
attesting that the requirements and conditions for continued enrollment in the program are
currently being met, and must return the signed certification formnew text begin , along with a copy of
the property tax statement for the property taxes payable on the enrolled property for the
calendar year and any other information the commissioner deems necessary to determine
whether the property is qualified under section 290C.02, subdivision 6, or the amount of
the payment under section 290C.07, paragraph (a), clause (2),new text end to the commissioner by
August 15 of that same year. If the claimant does not return an annual certification form
by the due date, the provisions in section 290C.11 apply.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for payments made beginning in
calendar year 2014.
new text end
Sec. 5.
Minnesota Statutes 2012, section 290C.07, is amended to read:
290C.07 CALCULATION OF INCENTIVE PAYMENT.
(a) An approved claimant under the sustainable forest incentive program is eligible
to receive an annual payment. The payment shallnew text begin benew text end equal new text begin to the lesser of (1) new text end $7 per acre
new text begin or (2) one-half of the property tax payable for the calendar yearnew text end for each acre enrolled in
the sustainable forest incentive program.
(b) The annual payment for each Social Security number or state or federal business
tax identification number must not exceed $100,000.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for payments made beginning in
calendar year 2014.
new text end
Sec. 6.
new text begin
[297I.07] SURCHARGE ON HOMEOWNERS AND AUTO POLICIES.
new text end
new text begin Subdivision 1. new text end
new text begin Surcharge on policies. new text end
new text begin
(a) Each licensed insurer engaged in writing
insurance shall collect a surcharge equal to $5 per calendar year for each policy issued
or renewed during that calendar year for:
new text end
new text begin
(1) homeowners insurance authorized in section 60A.06, subdivision 1, clause
(1)(c); and
new text end
new text begin
(2) automobile insurance as defined in section 65B.14, subdivision 2.
new text end
new text begin
(b) The surcharge amount collected under this subdivision must not be considered
premium for any other purpose. The surcharge amount must be separately stated on either a
billing or policy declaration or document containing similar information sent to an insured.
new text end
new text begin Subd. 2. new text end
new text begin Collection and administration. new text end
new text begin
The commissioner shall administer the
surcharge imposed by this section in the same manner as the taxes imposed by this chapter.
new text end
new text begin Subd. 3. new text end
new text begin Deposit of revenues. new text end
new text begin
The commissioner shall deposit revenues from the
surcharge under this section as follows:
new text end
new text begin
(1) amounts from the surcharge imposed under subdivision 1, paragraph (a), clause
(1), in a surcharge fire pension aid account in the special revenue fund; and
new text end
new text begin
(2) amounts from the surcharge imposed under subdivision 1, paragraph (a), clause
(2), in a surcharge police pension aid account in the special revenue fund.
new text end
new text begin Subd. 4. new text end
new text begin Surcharge termination. new text end
new text begin
The surcharge imposed under subdivision
1 ends on the December 31 next following the actuarial valuation date on which the
assets of the retirement plan on a market value equals or exceeds 90 percent of the total
actuarial accrued liabilities of the retirement plan as disclosed in an actuarial valuation
prepared under section 356.215 and the Standards for Actuarial Work promulgated by the
Legislative Commission on Pensions and Retirement, for the State Patrol retirement plan
or the public employees police and fire retirement plan, whichever occurs last.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for policies issued after June 30, 2013.
new text end
Sec. 7.
Minnesota Statutes 2012, section 477A.011, subdivision 30, is amended to read:
Subd. 30.
Pre-1940 housing percentage.
new text begin (a) Except as provided in paragraph (b),
new text end "pre-1940 housing percentage" for a city is 100 times the most recent deleted text begin federal censusdeleted text end count
new text begin by the United States Bureau of the Censusnew text end of all housing units in the city built before
1940, divided by the total number of all housing units in the city. Housing units includes
both occupied and vacant housing units as defined by the federal census.
new text begin
(b) For the city of East Grand Forks only, "pre-1940 housing percentage" is equal
to 100 times the 1990 federal census count of all housing units in the city built before
1940, divided by the most recent count by the United States Bureau of the Census of all
housing units in the city. Housing units includes both occupied and vacant housing units
as defined by the federal census.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year
2014 and thereafter.
new text end
Sec. 8.
Minnesota Statutes 2012, section 477A.011, is amended by adding a
subdivision to read:
new text begin Subd. 30a. new text end
new text begin Percent of housing built between 1940 and 1970. new text end
new text begin
"Percent of housing
built between 1940 and 1970" is equal to 100 times the most recent count by the United
States Bureau of the Census of all housing units in the city built after 1939 but before
1970, divided by the total number of all housing units in the city. Housing units includes
both occupied and vacant housing units as defined by the federal census.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year
2014 and thereafter.
new text end
Sec. 9.
Minnesota Statutes 2012, section 477A.011, subdivision 34, is amended to read:
Subd. 34.
City revenue need.
(a) For a city with a population equal to or greater
than deleted text begin 2,500deleted text end new text begin 10,000new text end , "city revenue need" is deleted text begin the greater of 285 ordeleted text end new text begin 1.15 timesnew text end the sum of (1)
deleted text begin 5.0734098deleted text end new text begin 4.59new text end times the pre-1940 housing percentage; plus (2) deleted text begin 19.141678 times the
population decline percentagedeleted text end new text begin 0.622 times the percent of housing built between 1940 and
1970new text end ; plus (3) deleted text begin 2504.06334 times the road accidents factordeleted text end new text begin 169.415 times the jobs per
capitanew text end ; plus (4) deleted text begin 355.0547; minus (5) the metropolitan area factor; minus (6) 49.10638
times the household sizedeleted text end new text begin the sparsity adjustment; plus (5) 307.664new text end .
new text begin
(b) For a city with a population equal to or greater than 2,500 and less than 10,000,
"city revenue need" is 1.15 times the sum of (1) 572.62; plus (2) 5.026 times the pre-1940
housing percentage; minus (3) 53.768 times household size; plus (4) 14.022 times peak
population decline.
new text end
deleted text begin (b)deleted text end new text begin (c)new text end For a city with a population less than 2,500, "city revenue need" is the sum of
deleted text begin (1) 2.387 times the pre-1940 housing percentage; plus (2) 2.67591 times the commercial
industrial percentage; plus (3) 3.16042 times the population decline percentage; plus (4)
1.206 times the transformed population; minus (5) 62.772deleted text end new text begin 410 plus 0.367 times the city's
population over 100. The city revenue need under this paragraph shall not exceed 630new text end .
deleted text begin (c)deleted text end new text begin (d)new text end For a city with a population ofnew text begin at leastnew text end 2,500 deleted text begin or more and a population in one
of the most recently available five years that was less than 2,500, "city revenue need"
is the sum of (1) its city revenue need calculated under paragraph (a) multiplied by its
transition factor; plus (2) its city revenue need calculated under the formula in paragraph
(b) multiplied by the difference between one and its transition factor. For purposes of this
paragraph, a city's "transition factor" is equal to 0.2 multiplied by the number of years that
the city's population estimate has been 2,500 or more. This provision only applies for aids
payable in calendar years 2006 to 2008 to cities with a 2002 population of less than 2,500.
It applies to any city for aids payable in 2009 and thereafterdeleted text end new text begin but less than 3,000, the "city
revenue need" equals (1) the transition factor times the city's revenue need calculated in
paragraph (b) plus (2) 630 times the difference between one and the transition factor. For
a city with a population of at least 10,000 but less than 10,500, the "city revenue need"
equals (1) the transition factor times the city's revenue need calculated in paragraph (a)
plus (2) the city's revenue need calculated under the formula in paragraph (b) times the
difference between one and the transition factor. For purposes of this paragraph "transition
factor" is 0.2 percent times the amount that the city's population exceeds the minimum
threshold in either of the first two sentencesnew text end .
deleted text begin (d)deleted text end new text begin (e)new text end The city revenue need cannot be less than zero.
deleted text begin (e)deleted text end new text begin (f)new text end For calendar year deleted text begin 2005deleted text end new text begin 2015new text end and subsequent years, the city revenue need for
a city, as determined in paragraphs (a) to deleted text begin (d)deleted text end new text begin (e)new text end , is multiplied by the ratio of the annual
implicit price deflator for government consumption expenditures and gross investment for
state and local governments as prepared by the United States Department of Commerce,
for the most recently available year to the deleted text begin 2003deleted text end new text begin 2013new text end implicit price deflator for state
and local government purchases.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year
2014 and thereafter.
new text end
Sec. 10.
Minnesota Statutes 2012, section 477A.011, subdivision 42, is amended to read:
Subd. 42.
deleted text begin City jobs basedeleted text end new text begin Jobs per capitanew text end .
deleted text begin
(a) "City jobs base" for a city with a
population of 5,000 or more is equal to the product of (1) $25.20, (2) the number of
jobs per capita in the city, and (3) its population. For cities with a population less than
5,000, the city jobs base is equal to zero. For a city receiving aid under subdivision 36,
paragraph (k), its city jobs base is reduced by the lesser of 36 percent of the amount of
aid received under that paragraph or $1,000,000. No city's city jobs base may exceed
$4,725,000 under this paragraph.
deleted text end
deleted text begin
(b) For calendar year 2010 and subsequent years, the city jobs base for a city, as
determined in paragraph (a), is multiplied by the ratio of the appropriation under section
477A.03, subdivision 2a, for the year in which the aid is paid to the appropriation under
that section for aids payable in 2009.
deleted text end
deleted text begin (c) For purposes of this subdivision,deleted text end "Jobs per capita in the city" means (1) the
average annual number of employees in the city based on the data from the Quarterly
Census of Employment and Wages, as reported by the Department of Employment and
Economic Development, for the most recent calendar year available deleted text begin as of May 1, 2008
deleted text end new text begin November 1 of every odd-numbered yearnew text end , divided by (2) the city's population for the
same calendar year as the employment data. The commissioner of the Department of
Employment and Economic Development shall certify to the city the average annual
number of employees for each city by deleted text begin June 1, 2008deleted text end new text begin January 15, of every even-numbered
year beginning with January 15, 2014new text end . A city may challenge an estimate under this
paragraph by filing its specific objection, including the names of employers that it feels
may have misreported data, in writing with the commissioner by deleted text begin June 20, 2008deleted text end new text begin December
1 of every odd-numbered yearnew text end . The commissioner shall make every reasonable effort
to address the specific objection and adjust the data as necessary. The commissioner
shall certify the estimates of the annual employment to the commissioner of revenue by
deleted text begin July 15, 2008deleted text end new text begin January 15 of all even-numbered yearsnew text end , including any estimates still under
objection. new text begin For aids payable in 2014, "jobs per capita" shall be based on the annual number
of employees and population for calendar year 2010 without additional review.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year
2014 and thereafter.
new text end
Sec. 11.
Minnesota Statutes 2012, section 477A.011, is amended by adding a
subdivision to read:
new text begin Subd. 44. new text end
new text begin Peak population decline. new text end
new text begin
"Peak population decline" is equal to 100
times the difference between one and the ratio of the city's current population, to the
highest city population reported in a federal census from the 1970 census or later. "Peak
population decline" shall not be less than zero.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year
2014 and thereafter.
new text end
Sec. 12.
Minnesota Statutes 2012, section 477A.011, is amended by adding a
subdivision to read:
new text begin Subd. 45. new text end
new text begin Sparsity adjustment. new text end
new text begin
For a city with a population of 10,000 or more, the
sparsity adjustment is 100 for any city with an average population density less than 150
per square mile, according to the most recent federal census, and the sparsity adjustment is
zero for all other cities.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year
2014 and thereafter.
new text end
Sec. 13.
Minnesota Statutes 2012, section 477A.013, subdivision 8, is amended to read:
Subd. 8.
City formula aid.
new text begin
(a) For aids payable in 2014 only, the formula aid for
a city is equal to the lesser of its unmet need or the sum of (1) its 2013 certified aid and
(2) the product of (i) the difference between its unmet need and its 2013 certified aid
and (ii) the aid gap percentage.
new text end
new text begin (b) For aids payable in 2015 and thereafter,new text end the formula aid for a city is equal to
the sum of (1) its deleted text begin city jobs base, (2) its small city aid base, and (3) the need increase
percentage multiplied by the average of its unmet need for the most recently available two
yearsdeleted text end new text begin formula aid in the previous year and (2) the product of (i) the difference between
its unmet need and its certified aid in the previous year under subdivision 9, and (ii)
the aid gap percentagenew text end .
No city may have a formula aid amount less than zero. The deleted text begin need increasedeleted text end new text begin aid gap
new text end percentage must be the same for all cities.
The applicable deleted text begin need increasedeleted text end new text begin aid gapnew text end percentage must be calculated by the
Department of Revenue so that the total of the aid under subdivision 9 equals the total
amount available for aid under section 477A.03. Data used in calculating aids to cities
under sections 477A.011 to 477A.013 shall be the most recently available data as of
January 1 in the year in which the aid is calculated except that the data used to compute "net
levy" in subdivision 9 is the data most recently available at the time of the aid computation.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year
2014 and thereafter.
new text end
Sec. 14.
Minnesota Statutes 2012, section 477A.013, subdivision 9, is amended to read:
Subd. 9.
City aid distribution.
(a) In calendar year deleted text begin 2013deleted text end new text begin 2014 new text end and thereafter, each
city shall receive an aid distribution equal to the sum of (1) the city formula aid under
subdivision 8, and (2) its deleted text begin city aid basedeleted text end new text begin aid adjustment under subdivision 13new text end .
deleted text begin
(b) For aids payable in 2013 and 2014 only, the total aid in the previous year for
any city shall mean the amount of aid it was certified to receive for aids payable in 2012
under this section. For aids payable in 2015 and thereafter, the total aid in the previous
year for any city means the amount of aid it was certified to receive under this section in
the previous payable year.
deleted text end
deleted text begin
(c) For aids payable in 2010 and thereafter, the total aid for any city shall not exceed
the sum of (1) ten percent of the city's net levy for the year prior to the aid distribution
plus (2) its total aid in the previous year. For aids payable in 2009 and thereafter, the total
aid for any city with a population of 2,500 or more may not be less than its total aid under
this section in the previous year minus the lesser of $10 multiplied by its population, or ten
percent of its net levy in the year prior to the aid distribution.
deleted text end
deleted text begin (d)deleted text end new text begin (b) For aids payable in 2014 only, the total aid for a city may not be less than the
amount it was certified to receive in 2013.new text end For aids payable in deleted text begin 2010deleted text end new text begin 2015new text end and thereafter,
the total aid for a city deleted text begin with a population less than 2,500deleted text end must not be less than the amount
it was certified to receive in the previous year minus the lesser of $10 multiplied by its
population, or five percent of deleted text begin its 2003 certified aid amount. For aids payable in 2009 only,
the total aid for a city with a population less than 2,500 must not be less than what it
received under this section in the previous year unless its total aid in calendar year 2008
was aid under section 477A.011, subdivision 36, paragraph (s), in which case its minimum
aid is zerodeleted text end new text begin its net levy in the year prior to the aid distributionnew text end .
deleted text begin
(e) A city's aid loss under this section may not exceed $300,000 in any year in
which the total city aid appropriation under section 477A.03, subdivision 2a, is equal or
greater than the appropriation under that subdivision in the previous year, unless the
city has an adjustment in its city net tax capacity under the process described in section
469.174, subdivision 28.
deleted text end
deleted text begin
(f) If a city's net tax capacity used in calculating aid under this section has decreased
in any year by more than 25 percent from its net tax capacity in the previous year due to
property becoming tax-exempt Indian land, the city's maximum allowed aid increase
under paragraph (c) shall be increased by an amount equal to (1) the city's tax rate in the
year of the aid calculation, multiplied by (2) the amount of its net tax capacity decrease
resulting from the property becoming tax exempt.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year
2014 and thereafter.
new text end
Sec. 15.
Minnesota Statutes 2012, section 477A.013, is amended by adding a
subdivision to read:
new text begin Subd. 13. new text end
new text begin Certified aid adjustments. new text end
new text begin
(a) A city that received an aid base increase
under Minnesota Statutes 2012, section 477A.011, subdivision 36, paragraph (e), shall
have its total aid under subdivision 9 increased by an amount equal to $150,000 for aids
payable in 2014 through 2018.
new text end
new text begin
(b) A city that received a temporary aid increase under Minnesota Statutes 2012,
section 477A.011, subdivision 36, paragraph (m), (v), or (w), shall have its total aid under
subdivision 9 decreased by the amount of its aid base increase under those paragraphs in
calendar year 2013.
new text end
Sec. 16.
Minnesota Statutes 2012, section 477A.03, subdivision 2a, is amended to read:
Subd. 2a.
Cities.
For aids payable in deleted text begin 2013deleted text end new text begin 2014new text end and thereafter, the total aid paid
under section 477A.013, subdivision 9, is deleted text begin $426,438,012deleted text end new text begin $506,438,012. For aids payable
in 2015 and thereafter, the total aid paid under section 477A.013, subdivision 9, is the
amount certified under that section in the previous year multiplied by the inflation
adjustment under subdivision 6new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year
2014 and thereafter.
new text end
Sec. 17.
Minnesota Statutes 2012, section 477A.03, subdivision 2b, is amended to read:
Subd. 2b.
Counties.
(a) For aids payable in deleted text begin 2013deleted text end new text begin 2014new text end and thereafter, the total aid
payable under section 477A.0124, subdivision 3, is deleted text begin $80,795,000deleted text end new text begin $95,795,000new text end . Each
calendar year, $500,000 new text begin of this appropriation new text end shall be retained by the commissioner
of revenue to make reimbursements to the commissioner of management and budget
for payments made under section 611.27. deleted text begin For calendar year 2004, the amount shall
be in addition to the payments authorized under section 477A.0124, subdivision 1.
For calendar year 2005 and subsequent years, the amount shall be deducted from the
appropriation under this paragraph.deleted text end The reimbursements shall be to defray the additional
costs associated with court-ordered counsel under section 611.27. Any retained amounts
not used for reimbursement in a year shall be included in the next distribution of county
need aid that is certified to the county auditors for the purpose of property tax reduction
for the next taxes payable year.
(b) For aids payable in deleted text begin 2013deleted text end new text begin 2014new text end and thereafter, the total aid under section
477A.0124, subdivision 4, is deleted text begin $84,909,575deleted text end new text begin $99,909,575new text end . The commissioner of management
and budget shall bill the commissioner of revenue for the cost of preparation of local impact
notes as required by section 3.987, not to exceed $207,000 in new text begin each new text end fiscal year deleted text begin 2004 and
thereafterdeleted text end . The commissioner of education shall bill the commissioner of revenue for the
cost of preparation of local impact notes for school districts as required by section 3.987,
not to exceed $7,000 in new text begin each new text end fiscal year deleted text begin 2004 and thereafterdeleted text end . The commissioner of revenue
shall deduct the amounts billed under this paragraph from the appropriation under this
paragraph. The amounts deducted are appropriated to the commissioner of management
and budget and the commissioner of education for the preparation of local impact notes.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aid payable in 2014 and thereafter.
new text end
Sec. 18.
Minnesota Statutes 2012, section 477A.03, is amended by adding a
subdivision to read:
new text begin Subd. 6. new text end
new text begin Inflation adjustment. new text end
new text begin
In 2015 and thereafter, the amount paid under
subdivision 2a shall be multiplied by an amount equal to one plus the sum of (1) the
percentage increase in the implicit price deflator for government expenditures and gross
investment for state and local government purchases as prepared by the United States
Department of Commerce, for the 12-month period ending March 31 of the previous
calendar year, and (2) the percentage increase in total city population for the most recently
available years as of January 15 of the current year. The percentage increase in this
subdivision shall not be less than 2.5 percent or greater than five percent.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year
2014 and thereafter.
new text end
Sec. 19. new text begin REPEALER.
new text end
new text begin
(a)
new text end
new text begin
Minnesota Statutes 2012, sections 477A.011, subdivisions 2a, 19, 29, 31, 32, 33,
36, 39, 40, 41, and 42; 477A.013, subdivisions 11 and 12; 477A.0133; and 477A.0134,
new text end
new text begin
are
repealed.
new text end
new text begin
(b)
new text end
new text begin
Laws 2006, chapter 259, article 11, section 3, as amended by Laws 2008, chapter
154, article 1, section 4,
new text end
new text begin
is repealed.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year
2014 and thereafter.
new text end
ARTICLE 4
PROPERTY TAXES
Section 1.
Minnesota Statutes 2012, section 103B.102, subdivision 3, is amended to
read:
Subd. 3.
Evaluation and report.
The Board of Water and Soil Resources shall
evaluate performance, financial, and activity information for each local water management
entity. The board shall evaluate the entities' progress in accomplishing their adopted plans
on a regular basisnew text begin as determined by the board based on budget and operations of the local
water management entitynew text end , but not less than once every deleted text begin fivedeleted text end new text begin tennew text end years. The board shall
maintain a summary of local water management entity performance on the board's Web site.
Beginning February 1, 2008, and annually thereafter, the board shall provide an analysis
of local water management entity performance to the chairs of the house of representatives
and senate committees having jurisdiction over environment and natural resources policy.
Sec. 2.
Minnesota Statutes 2012, section 103B.335, is amended to read:
103B.335 TAX LEVY AUTHORITY.
Subdivision 1.
Local water planning and management.
The governing body of
any county, municipality, or township may levy a tax in an amount required to implement
sections 103B.301 to 103B.355new text begin or a comprehensive watershed management plan as
defined in section 103B.3363new text end .
Subd. 2.
Priority programs; conservation and watershed districts.
A county
may levy amounts necessary to pay the reasonable deleted text begin increaseddeleted text end costs to soil and water
conservation districts and watershed districts of administering and implementing priority
programs identified in an approved and adopted plannew text begin or a comprehensive watershed
management plan as defined in section 103B.3363new text end .
Sec. 3.
Minnesota Statutes 2012, section 103B.3369, subdivision 5, is amended to read:
Subd. 5.
Financial assistance.
A base grant may be awarded to a county that
provides a match utilizing a water implementation tax or other local source. A water
implementation tax that a county intends to use as a match to the base grant must be
levied at a rate new text begin sufficient to generate a minimum amount new text end determined by the board.
The board may award performance-based grants to local units of government that are
responsible for implementing elements of applicable portions of watershed management
plans, comprehensive plans, local water management plans, or comprehensive watershed
management plans, developed or amended, adopted and approved, according to chapter
103B, 103C, or 103D. Upon request by a local government unit, the board may also
award performance-based grants to local units of government to carry out TMDL
implementation plans as provided in chapter 114D, if the TMDL implementation plan has
been incorporated into the local water management plan according to the procedures for
approving comprehensive plans, watershed management plans, local water management
plans, or comprehensive watershed management plans under chapter 103B, 103C, or
103D, or if the TMDL implementation plan has undergone a public review process.
Notwithstanding section 16A.41, the board may award performance-based grants on an
advanced basis.new text begin The fee authorized in section 40A.152 may be used as a local match
or as a supplement to state funding to accomplish implementation of comprehensive
plans, watershed management plans, local water management plans, or comprehensive
watershed management plans under chapter 103B, 103C, or 103D.
new text end
Sec. 4.
Minnesota Statutes 2012, section 103C.501, subdivision 4, is amended to read:
Subd. 4.
Cost-sharing funds.
(a) The state board shall allocate deleted text begin at least 70 percent
ofdeleted text end cost-sharing funds to areas with high priority erosion, sedimentation, or water quality
problems or water quantity problems due to altered hydrology. The areas must be selected
based on deleted text begin the statewidedeleted text end priorities established by the state board.
new text begin (b) new text end The allocated funds must be used for conservation practices for high priority
problems identified in the comprehensive and annual work plans of the districtsnew text begin , for
the technical assistance portion of the grant funds to leverage federal or other nonstate
funds, or to address high-priority needs identified in local water management plans or
comprehensive watershed management plansnew text end .
deleted text begin
(b) The remaining cost-sharing funds may be allocated to districts as follows:
deleted text end
deleted text begin
(1) for technical and administrative assistance, not more than 20 percent of the
funds; and
deleted text end
deleted text begin
(2) for conservation practices for lower priority erosion, sedimentation, or water
quality problems.
deleted text end
Sec. 5.
Minnesota Statutes 2012, section 103F.405, subdivision 1, is amended to read:
Subdivision 1.
Authority.
Each statutory or home rule charter city, town, or
county that has planning and zoning authority under sections 366.10 to 366.19, 394.21
to 394.37, or 462.351 to 462.365 is encouraged to adopt a soil loss ordinance. The soil
loss ordinance must use the soil loss tolerance for each soil series described in the United
States deleted text begin Soildeleted text end new text begin Natural Resources new text end Conservation Service Field Office Technical Guidenew text begin , or
another method approved by the Board of Water and Soil Resources,new text end to determine the
soil loss limits, but the soil loss limits must be attainable by the best practicable soil
conservation practice. Ordinances adopted by local governments deleted text begin within the metropolitan
area defined in section 473.121deleted text end must be consistent with deleted text begin local water management plans
adopted under section 103B.235deleted text end new text begin a comprehensive plan, local water management plan, or
watershed management plan developed or amended, adopted and approved, according
to chapter 103B, 103C, or 103Dnew text end .
Sec. 6.
Minnesota Statutes 2012, section 168.012, subdivision 9, is amended to read:
Subd. 9.
Manufactured homes and park trailers.
Manufactured homes and park
trailers shall not be taxed as motor vehicles using the public streets and highways and shall
be exempt from the motor vehicle tax provisions of this chapter. Except as provided in
section 273.125, manufactured homes and park trailers shall be taxed as personal property.
The provisions of Minnesota Statutes 1957, section 272.02 or any other act providing for
tax exemption shall be inapplicable to manufactured homes and park trailers, except such
manufactured homes as are held by a licensed dealer new text begin or limited dealer new text end and exempted as
inventorynew text begin under subdivision 9anew text end . Travel trailers not conspicuously displaying current
registration plates on the property tax assessment date shall be taxed as manufactured
homes if occupied as human dwelling places.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxes payable in 2014 and
thereafter.
new text end
Sec. 7.
Minnesota Statutes 2012, section 168.012, is amended by adding a subdivision
to read:
new text begin Subd. 9a. new text end
new text begin Manufactured home as dealer inventory. new text end
new text begin
Manufactured homes as
defined in section 327.31, subdivision 6, shall be considered as dealer inventory if the
home is:
new text end
new text begin
(1) listed as inventory and held by a licensed or limited dealer;
new text end
new text begin
(2) unoccupied and not available for rent;
new text end
new text begin
(3) may or may not be permanently connected to utilities when located in a
manufactured park; and
new text end
new text begin
(4) may or may not be temporarily connected to utilities when located at a dealer's
sales center.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxes payable in 2014 and
thereafter.
new text end
Sec. 8.
Minnesota Statutes 2012, section 272.02, subdivision 39, is amended to read:
Subd. 39.
Economic development; public purpose.
The holding of property by a
political subdivision of the state for later resale for economic development purposes shall
be considered a public purpose in accordance with subdivision 8 for a period not to exceed
nine years, except that for property located in a city of deleted text begin 5,000deleted text end new text begin 20,000new text end population or under
that is located outside of the metropolitan area as defined in section 473.121, subdivision
2, the period must not exceed 15 years.
The holding of property by a political subdivision of the state for later resale (1)
which is purchased or held for housing purposes, or (2) which meets the conditions
described in section 469.174, subdivision 10, shall be considered a public purpose in
accordance with subdivision 8.
The governing body of the political subdivision which acquires property which is
subject to this subdivision shall after the purchase of the property certify to the city or
county assessor whether the property is held for economic development purposes or
housing purposes, or whether it meets the conditions of section 469.174, subdivision 10.
If the property is acquired for economic development purposes and buildings or other
improvements are constructed after acquisition of the property, and if more than one-half
of the floor space of the buildings or improvements which is available for lease to or use
by a private individual, corporation, or other entity is leased to or otherwise used by
a private individual, corporation, or other entity the provisions of this subdivision shall
not apply to the property. This subdivision shall not create an exemption from section
272.01, subdivision 2; 272.68; 273.19; or 469.040, subdivision 3; or other provision of
law providing for the taxation of or for payments in lieu of taxes for publicly held property
which is leased, loaned, or otherwise made available and used by a private person.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2013 and
thereafter and for taxes payable in 2014 and thereafter.
new text end
Sec. 9.
Minnesota Statutes 2012, section 272.02, is amended by adding a subdivision
to read:
new text begin Subd. 98. new text end
new text begin Certain property owned by an Indian tribe. new text end
new text begin
(a) Property is exempt that:
new text end
new text begin
(1) was classified as 3a under section 273.13, subdivision 24, for taxes payable
in 2013;
new text end
new text begin
(2) is located in a city of the first class with a population greater than 300,000 as of
the 2010 federal census;
new text end
new text begin
(3) is owned and occupied directly or indirectly by a federally recognized Indian
tribe within the state of Minnesota; and
new text end
new text begin
(4) is used exclusively for tribal purposes or institutions of public charity as defined
in subdivision 7.
new text end
new text begin
(b) For purposes of this subdivision, a "tribal purpose" is a public purpose as defined
in subdivision 8 and includes noncommercial tribal government activities. Property
that qualifies for the exemption under this subdivision is limited to no more than two
contiguous parcels and structures that do not exceed in the aggregate 20,000 square feet.
Property acquired for single-family housing, market-rate apartments, agriculture, or
forestry does not qualify for this exemption. The exemption created by this subdivision
expires with taxes payable in 2024.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2014.
new text end
Sec. 10.
Minnesota Statutes 2012, section 272.02, is amended by adding a subdivision
to read:
new text begin Subd. 99. new text end
new text begin
Public entertainment facility; property tax exemption; special
assessment.
new text end
new text begin
Any real or personal property acquired, owned, leased, controlled, used,
or occupied by a first class city for the primary purpose of providing an arena for a
professional basketball team is declared to be acquired, owned, leased, controlled, used,
and occupied for public, governmental, and municipal purposes, and is exempt from ad
valorem taxation by the state or any political subdivision of the state, provided that the
properties are subject to special assessments levied by a political subdivision for a local
improvement in amounts proportionate to and not exceeding the special benefit received
by the properties from the improvement. In determining the special benefit received by
the properties, no possible use of any of the properties in any manner different from their
intended use for providing a professional basketball arena at the time may be considered.
Notwithstanding section 272.01, subdivision 2, or 273.19, real or personal property subject
to a lease or use agreement between the city and another person for uses related to the
purposes of the operation of the arena is exempt from taxation regardless of the length of
the lease or use agreement. This section, insofar as it provides an exemption or special
treatment, does not apply to any real property that is leased for residential, business, or
commercial development, or to a restaurant that is open for general business more than
200 days a year, or for other purposes different from those necessary to the provision
and operation of the arena.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with assessment year 2013.
new text end
Sec. 11.
Minnesota Statutes 2012, section 272.02, is amended by adding a subdivision
to read:
new text begin Subd. 100. new text end
new text begin
Public entertainment facility; property tax exemption; special
assessment.
new text end
new text begin
Any real or personal property acquired, owned, leased, controlled, used,
or occupied by a first class city for the primary purpose of providing a ball park for a
minor league baseball team is declared to be acquired, owned, leased, controlled, used,
and occupied for public, governmental, and municipal purposes, and is exempt from ad
valorem taxation by the state or any political subdivision of the state, provided that the
properties are subject to special assessments levied by a political subdivision for a local
improvement in amounts proportionate to and not exceeding the special benefit received
by the properties from the improvement. In determining the special benefit received by
the properties, no possible use of any of the properties in any manner different from
their intended use for providing a minor league ballpark at the time may be considered.
Notwithstanding section 272.01, subdivision 2, or 273.19, real or personal property
subject to a lease or use agreement between the city and another person for uses related to
the purposes of the operation of the ballpark and related parking facilities is exempt from
taxation regardless of the length of the lease or use agreement. This section, insofar as it
provides an exemption or special treatment, does not apply to any real property that is
leased for residential, business, or commercial development or other purposes different
from those necessary to the provision and operation of the ball park.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with assessment year 2013.
new text end
Sec. 12.
Minnesota Statutes 2012, section 272.02, is amended by adding a subdivision
to read:
new text begin Subd. 101. new text end
new text begin Electric generation facility; personal property. new text end
new text begin
(a) Notwithstanding
subdivision 9, clause (a), and section 453.54, subdivision 20, attached machinery and
other personal property which is part of an electric generation facility that exceeds five
megawatts of installed capacity and meets the requirements of this subdivision is exempt.
At the time of construction, the facility must be:
new text end
new text begin
(1) designed to utilize natural gas as a primary fuel;
new text end
new text begin
(2) owned and operated by a municipal power agency as defined in section 453.52,
subdivision 8;
new text end
new text begin
(3) designed to utilize reciprocating engines paired with generators to produce
electrical power;
new text end
new text begin
(4) located within the service territory of a municipal power agency's electrical
municipal utility that serves load exclusively in a metropolitan county as defined in
section 473.121, subdivision 4; and
new text end
new text begin
(5) designed to connect directly with a municipality's substation.
new text end
new text begin
(b) Construction of the facility must be commenced after June 1, 2013, and before
June 1, 2017. Property eligible for this exemption does not include electric transmission
lines and interconnections or gas pipelines and interconnections appurtenant to the
property or the facility.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2013, taxes
payable in 2014, and thereafter.
new text end
Sec. 13.
Minnesota Statutes 2012, section 273.11, is amended by adding a subdivision
to read:
new text begin Subd. 24. new text end
new text begin Valuation limit for class 4d property. new text end
new text begin
Notwithstanding the provisions of
subdivision 1, the taxable value of any property classified as class 4d under section 273.13,
subdivision 25, is limited as provided under this section. For assessment year 2013, the
value may not exceed $100,000 times the number of dwelling units. For subsequent years,
the limit is adjusted each year by the average statewide change in estimated market value
of property classified as class 4a and 4d under section 273.13, subdivision 25, for the
previous assessment year, excluding valuation change due to new construction, rounded to
the nearest $1,000. Beginning with assessment year 2014, the commissioner of revenue
must certify the limit for each assessment year by November 1 of the previous year.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with assessment year 2013.
new text end
Sec. 14.
Minnesota Statutes 2012, section 279.01, subdivision 1, is amended to read:
Subdivision 1.
Due dates; penalties.
Except as provided in deleted text begin subdivisiondeleted text end new text begin subdivisions
new text end 3 deleted text begin or 4deleted text end new text begin to 5new text end , on May 16 or 21 days after the postmark date on the envelope containing the
property tax statement, whichever is later, a penalty accrues and thereafter is charged upon
all unpaid taxes on real estate on the current lists in the hands of the county treasurer. The
penalty is at a rate of two percent on homestead property until May 31 and four percent on
June 1. The penalty on nonhomestead property is at a rate of four percent until May 31 and
eight percent on June 1. This penalty does not accrue until June 1 of each year, or 21 days
after the postmark date on the envelope containing the property tax statements, whichever
is later, on commercial use real property used for seasonal residential recreational purposes
and classified as class 1c or 4c, and on other commercial use real property classified as
class 3a, provided that over 60 percent of the gross income earned by the enterprise on the
class 3a property is earned during the months of May, June, July, and August. In order for
the first half of the tax due on class 3a property to be paid after May 15 and before June 1,
or 21 days after the postmark date on the envelope containing the property tax statement,
whichever is later, without penalty, the owner of the property must attach an affidavit
to the payment attesting to compliance with the income provision of this subdivision.
Thereafter, for both homestead and nonhomestead property, on the first day of each month
beginning July 1, up to and including October 1 following, an additional penalty of one
percent for each month accrues and is charged on all such unpaid taxes provided that if the
due date was extended beyond May 15 as the result of any delay in mailing property tax
statements no additional penalty shall accrue if the tax is paid by the extended due date. If
the tax is not paid by the extended due date, then all penalties that would have accrued if
the due date had been May 15 shall be charged. When the taxes against any tract or lot
exceed $100, one-half thereof may be paid prior to May 16 or 21 days after the postmark
date on the envelope containing the property tax statement, whichever is later; and, if so
paid, no penalty attaches; the remaining one-half may be paid at any time prior to October
16 following, without penalty; but, if not so paid, then a penalty of two percent accrues
thereon for homestead property and a penalty of four percent on nonhomestead property.
Thereafter, for homestead property, on the first day of November an additional penalty of
four percent accrues and on the first day of December following, an additional penalty of
two percent accrues and is charged on all such unpaid taxes. Thereafter, for nonhomestead
property, on the first day of November and December following, an additional penalty of
four percent for each month accrues and is charged on all such unpaid taxes. If one-half of
such taxes are not paid prior to May 16 or 21 days after the postmark date on the envelope
containing the property tax statement, whichever is later, the same may be paid at any time
prior to October 16, with accrued penalties to the date of payment added, and thereupon
no penalty attaches to the remaining one-half until October 16 following.
This section applies to payment of personal property taxes assessed against
improvements to leased property, except as provided by section 277.01, subdivision 3.
A county may provide by resolution that in the case of a property owner that has
multiple tracts or parcels with aggregate taxes exceeding $100, payments may be made in
installments as provided in this subdivision.
The county treasurer may accept payments of more or less than the exact amount of
a tax installment due. Payments must be applied first to the oldest installment that is due
but which has not been fully paid. If the accepted payment is less than the amount due,
payments must be applied first to the penalty accrued for the year or the installment being
paid. Acceptance of partial payment of tax does not constitute a waiver of the minimum
payment required as a condition for filing an appeal under section 278.03 or any other law,
nor does it affect the order of payment of delinquent taxes under section 280.39.
Sec. 15.
Minnesota Statutes 2012, section 279.01, is amended by adding a subdivision
to read:
new text begin Subd. 5. new text end
new text begin Federal active service exception. new text end
new text begin
In the case of a homestead property
owned by an individual who is on federal active service, as defined in section 190.05,
subdivision 5c, as a member of the National Guard or a reserve component, a six-month
grace period is granted for complying with the due dates imposed by subdivision 1. During
this period, no late fees or penalties shall accrue against the property. The due date for
property taxes owed under this chapter for an individual covered by this subdivision shall
be November 16 for taxes due on May 16, and April 16 of the following year for taxes due
on October 16. A taxpayer making a payment under this subdivision must accompany
the payment with a signed copy of the taxpayer's orders or form DD214 showing the
dates of active service which clearly indicate that the taxpayer was in active service as a
member of the National Guard or a reserve component on the date the payment was due.
This grace period applies to all homestead property owned by individuals on federal active
service, as herein defined, for all of that property's due dates which fall on a day that is
included in the taxpayer's federal active service.
new text end
Sec. 16.
Minnesota Statutes 2012, section 279.02, is amended to read:
279.02 DUTIES OF COUNTY AUDITOR AND TREASURER.
new text begin Subdivision 1. new text end
new text begin Delinquent property; rates. new text end
On the first business day in January, of
each year, the county treasurer shall return the tax lists on hand to the county auditor, who
shall compare the same with the statements receipted for by the treasurer on file in the
auditor's office and each tract or lot of real property against which the taxes, or any part
thereof, remain unpaid, shall be deemed delinquent, and thereupon an additional penalty
of two percent on the amount of the original tax remaining unpaid shall immediately
accrue and thereafter be charged upon all such delinquent taxes; and any auditor who
shall make out and deliver any statement of delinquent taxes without including therein
the penalties imposed by law, and any treasurer who shall receive payment of such taxes
without including in such payment all items as shown on the auditor's statement, shall be
liable to the county for the amounts of any items omitted.
new text begin Subd. 2. new text end
new text begin Federal active service exception. new text end
new text begin
Notwithstanding subdivision 1, a
homestead property owned by an individual who is on federal active service, as defined
in section 190.05, subdivision 5c, as a member of the National Guard or a reserve
component, shall not be deemed delinquent under this section if the due dates imposed
under section 279.01 fall on a day in which the individual was on federal active service.
new text end
Sec. 17.
Minnesota Statutes 2012, section 287.05, is amended by adding a subdivision
to read:
new text begin Subd. 10. new text end
new text begin Hennepin and Ramsey Counties. new text end
new text begin
For properties located in Hennepin
and Ramsey Counties, the county may impose an additional mortgage registry tax as
defined in sections 383A.80 and 383B.80.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 18.
new text begin
[287.40] HENNEPIN AND RAMSEY COUNTIES.
new text end
new text begin
For properties located in Hennepin and Ramsey Counties, the county may impose an
additional deed tax as defined in sections 383A.80 and 383B.80.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 19.
Laws 1988, chapter 645, section 3, as amended by Laws 1999, chapter 243,
article 6, section 9, Laws 2000, chapter 490, article 6, section 15, and Laws 2008, chapter
154, article 2, section 30, is amended to read:
Sec. 3. TAX; PAYMENT OF EXPENSES.
(a) The tax levied by the hospital district under Minnesota Statutes, section 447.34,
must not be levied at a rate that exceeds the amount authorized to be levied under that
section. The proceeds of the tax may be used for all purposes of the hospital district,
except as provided in paragraph (b).
(b) 0.015 percent of taxable market value of the tax in paragraph (a) may be used
deleted text begin solelydeleted text end new text begin by the Cook ambulance service and the Orr ambulance servicenew text end for the purpose of
deleted text begin capital expenditures as it relates todeleted text end new text begin :
new text end
new text begin (1)new text end ambulance acquisitions for the Cook ambulance service and the Orr ambulance
service deleted text begin and notdeleted text end new text begin ;
new text end
new text begin
(2) attached and portable equipment for use in and for the ambulances; and
new text end
new text begin
(3) parts and replacement parts for maintenance and repair of the ambulances.
new text end
new text begin The money may not be usednew text end for administrativenew text begin , operation, new text end or salary expenses.
new text begin (c) new text end The part of the levy referred to in paragraph (b) must be administered by the
Cook Hospital and passed on new text begin in equal amounts new text end directly to the Cook area ambulance
service board and the city of Orr to be deleted text begin held in trust until funding for a new ambulance is
needed by either the Cook ambulance service or the Orr ambulance servicedeleted text end new text begin used for the
purposes in paragraph (b)new text end .
Sec. 20.
Laws 1999, chapter 243, article 6, section 11, is amended to read:
Sec. 11. CEMETERY LEVY FOR SAWYER BY CARLTON COUNTY.
deleted text begin Subdivision 1. deleted text end
deleted text begin Levy authorized. deleted text end
Notwithstanding other law to the contrary, the
Carlton county board of commissioners maynew text begin annuallynew text end levy in and for the unorganized
deleted text begin townshipdeleted text end new text begin territorynew text end of Sawyer an amount deleted text begin up to $1,000 annuallydeleted text end for cemetery purposesdeleted text begin ,
beginning with taxes payable in 2000 and ending with taxes payable in 2009deleted text end .
deleted text begin Subd. 2. deleted text end
deleted text begin Effective date. deleted text end
deleted text begin
This section is effective June 1, 1999, without local
approval.
deleted text end
new text begin EFFECTIVE DATE; LOCAL APPROVAL. new text end
new text begin
This section applies to taxes
payable in 2014 and thereafter, and is effective the day after the Carlton county board
of commissioners and its chief clerical officer timely complete their compliance with
Minnesota Statutes, section 645.021, subdivisions 2 and 3.
new text end
Sec. 21.
Laws 2008, chapter 366, article 5, section 33, the effective date, is amended to
read:
EFFECTIVE DATE.
This section is effective for taxes levied in 2008, payable in
2009, and is repealed effective for taxes levied in deleted text begin 2013deleted text end new text begin 2018new text end , payable in deleted text begin 2014deleted text end new text begin 2019new text end ,
and thereafter.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2014.
new text end
Sec. 22.
Laws 2010, chapter 389, article 1, section 12, the effective date, is amended to
read:
EFFECTIVE DATE.
This section is effective for assessment deleted text begin yearsdeleted text end new text begin yearnew text end 2010 and
deleted text begin 2011, for taxes payable in 2011 and 2012deleted text end new text begin thereafternew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2012 and
thereafter.
new text end
Sec. 23. new text begin MINNEAPOLIS AND ST. PAUL; ENTERTAINMENT FACILITIES
COORDINATION.
new text end
new text begin
(a) On or before January 1, 2015, the cities of St. Paul and Minneapolis shall establish
a joint governing structure to coordinate and provide for joint marketing, promotion, and
scheduling of conventions and events at the Target Center and Xcel Energy Center.
new text end
new text begin
(b) On or before February 1, 2014, the cities of St. Paul and Minneapolis, and
representatives from the primary professional sports team tenant of each facility, shall also
study and report to the legislature on creating a joint governing structure to provide for
joint administration, financing, and operations of the facilities and the possible effects of
joint governance on the finances of each facility and each city. The study under this
paragraph must:
new text end
new text begin
(1) examine the current finances of each facility, including past and projected costs
and revenues; projected capital improvements; and the current and projected impact
of each facility on the city's general fund;
new text end
new text begin
(2) determine the impacts of joint governance on the future finances of each facility
and city;
new text end
new text begin
(3) examine the inclusion of other entertainment venues in the joint governance, and
the impact the inclusion of those facilities would have on all the facilities within the joint
governing structure and the cities in which they are located; and
new text end
new text begin
(4) consider the amount of city, regional, and state funding, if any, that would be
required to fund and operate the facilities under a joint governing structure.
new text end
new text begin
(c) In considering joint governing structures under paragraph (b), the study shall
specifically consider the feasibility of joining the Target Center and the Xcel Energy
Center, and possibly other venues, to the Minnesota Sports Facilities Authority under
Minnesota Statutes, section 473J.08.
new text end
new text begin
(d) Representatives of the cities and the primary professional sports team tenants
of each facility shall meet within 30 days of the effective date of this section to begin
implementation of this section.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
upon compliance with the provisions of Minnesota Statutes, section 645.021, subdivisions
2 and 3, by the governing bodies of the cities of St. Paul and Minneapolis and their chief
clerical officers, and provided that, notwithstanding the time limits under Minnesota
Statutes, section 645.021, subdivision 3, the certificates of approval are filed with the
secretary of state within 30 days after enactment of this act.
new text end
Sec. 24. new text begin MORATORIUM ON CHANGES IN ASSESSMENT PRACTICE.
new text end
new text begin
(a) An assessor may not deviate from current practices or policies used generally in
assessing or determining the taxable status of property used in the production of biofuels,
wine, beer, distilled beverages, or dairy products.
new text end
new text begin
(b) An assessor may not change the taxable status of any existing property involved
in the industrial processes identified in paragraph (a), unless the change is made as a result
of a change in use of the property, or to correct an error. For currently taxable properties,
the assessor may change the estimated market value of the property.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2013 only.
new text end
Sec. 25. new text begin STUDY AND REPORT ON CERTAIN PROPERTY USED IN
BUSINESS AND PRODUCTION.
new text end
new text begin
In order to provide the legislature with information on the assessment of property
used in business and production activities, the commissioner of revenue must study the
impact of the exception contained in Minnesota Statutes, section 272.03, subdivision
1(c)(iii). The commissioner must report a summary of findings and recommendations to
the chairs and ranking minority members of the taxes committees of the senate and house
of representatives by February 1, 2014.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 26. new text begin REIMBURSEMENT FOR PROPERTY TAX ABATEMENTS.
new text end
new text begin Subdivision 1. new text end
new text begin Reimbursement. new text end
new text begin
The commissioner of revenue shall reimburse
taxing jurisdictions for property tax abatements granted in Hennepin County under Laws
2011, First Special Session chapter 7, article 5, section 13, notwithstanding the time limits
contained in that section. The reimbursements must be made to each taxing jurisdiction
pursuant to the certification of the Hennepin County auditor.
new text end
new text begin Subd. 2. new text end
new text begin Appropriation. new text end
new text begin
The amount necessary, not to exceed $400,000, is
appropriated to the commissioner of revenue from the general fund to make the payments
required under this section. This appropriation does not cancel but is available until June
30, 2014.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 27. new text begin IRON RANGE FISCAL DISPARITIES STUDY.
new text end
new text begin Subdivision 1. new text end
new text begin Study required. new text end
new text begin
The commissioner of revenue shall conduct a study
of the tax relief area revenue distribution program contained in Minnesota Statutes, chapter
276A, commonly known as the Iron Range fiscal disparities program. By February 1,
2015, the commissioner shall submit a report to the chairs and ranking minority members
of the house of representatives and senate tax committees consisting of the findings of the
study and identification of issues for policy makers to consider. The study must analyze:
new text end
new text begin
(1) the extent to which the benefits of the economic growth in the region are shared
throughout the region, especially for growth that results from state or regional decisions;
new text end
new text begin
(2) the program's impact on the variability of tax rates across jurisdictions of the
region;
new text end
new text begin
(3) the program's impact on the distribution of homestead property tax burdens
across jurisdictions of the region; and
new text end
new text begin
(4) the relationship between the impacts of the program and overburden on
jurisdictions containing properties that provide regional benefits, specifically the costs
those properties impose on their host jurisdictions in excess of their tax payments. The
report must include a description of other property tax, aid, and local development
programs that interact with the fiscal disparities program.
new text end
new text begin Subd. 2. new text end
new text begin Funds transfer from fiscal disparities levy. new text end
new text begin
For taxes payable in 2014
only, $75,000 must be added to St. Louis County's areawide levy as otherwise determined
under Minnesota Statutes, section 276A.06, subdivision 5. Upon receipt of the proceeds of
this levy, St. Louis County must transfer this money to the commissioner of management
and budget for deposit into an account in the special revenue fund. One-half of the
proceeds of the levy must be transferred prior to June 30, 2014.
new text end
new text begin Subd. 3. new text end
new text begin Appropriation. new text end
new text begin
$37,500 in fiscal year 2014 and $37,500 in fiscal year
2015 are appropriated from the account in the special revenue fund established under
subdivision 2 to the commissioner of revenue to pay for the study required by this section.
Any amounts remaining in the account in the special revenue fund on June 30, 2015, must
be distributed to St. Louis County for the purposes of reducing the areawide tax rate
for taxes payable in 2016.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2013.
new text end
Sec. 28. new text begin REPEALER.
new text end
new text begin
(a)
new text end
new text begin
Minnesota Statutes 2012, sections 428A.101; and 428A.21,
new text end
new text begin
are repealed.
new text end
new text begin
(b)
new text end
new text begin
Minnesota Statutes 2012, sections 383A.80, subdivision 4; and 383B.80,
subdivision 4,
new text end
new text begin
are repealed.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment,
and paragraph (b) reinstates the authority for Hennepin and Ramsey Counties to impose
the additional mortgage registry and deed tax effective for deeds and mortgages executed
on or after July 1, 2013.
new text end
ARTICLE 5
SPECIAL TAXES
Section 1.
Minnesota Statutes 2012, section 270C.56, subdivision 1, is amended to read:
Subdivision 1.
Liability imposed.
A person who, either singly or jointly with
others, has the control of, supervision of, or responsibility for filing returns or reports,
paying taxes, or collecting or withholding and remitting taxes and who fails to do so, or a
person who is liable under any other law, is liable for the payment of taxes arising under
chapters 295, 296A, 297A, 297F, and 297G, or sections deleted text begin 256.9658,deleted text end 290.92, and 297E.02,
and the applicable penalties and interest on those taxes.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2013.
new text end
Sec. 2.
new text begin
[295.61] SPORTS MEMORABILIA GROSS RECEIPTS TAX.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
(a) For purposes of this section, the following terms
have the meanings given, unless the context clearly indicates otherwise.
new text end
new text begin
(b) "Commissioner" means the commissioner of revenue.
new text end
new text begin
(c) "Sale" means a transfer of title or possession of tangible personal property,
whether absolutely or conditionally.
new text end
new text begin
(d) "Sports memorabilia" means items available for sale to the public that are sold
under a license granted by any professional sports league or a team that is a franchise of a
professional sports league, or an affiliate or subsidiary of a league or a team, including:
new text end
new text begin
(1) one-of-a-kind items related to sports figures, teams, or events;
new text end
new text begin
(2) trading cards;
new text end
new text begin
(3) photographs;
new text end
new text begin
(4) clothing;
new text end
new text begin
(5) sports event licensed items;
new text end
new text begin
(6) sports equipment; and
new text end
new text begin
(7) similar items.
new text end
new text begin
(e) "Wholesale" or "sale at wholesale" means a sale to a retailer, as defined in section
297A.61, subdivision 9, for the purpose of reselling the property to a third party.
new text end
new text begin
(f) "Wholesaler" means any person making wholesale sales of sports memorabilia
to purchasers in the state.
new text end
new text begin Subd. 2. new text end
new text begin Imposition. new text end
new text begin
A tax is imposed on each sale at wholesale of sports
memorabilia equal to ten percent of the gross revenues from the sale.
new text end
new text begin Subd. 3. new text end
new text begin Estimated payments; annual return. new text end
new text begin
(a) Each wholesaler must make
estimated payments of the tax for the calendar year to the commissioner in quarterly
installments by April 15, July 15, October 15, and January 15 of the following calendar
year. Estimated tax payments are not required if the tax for the calendar year is less than
$500. An underpayment of estimated installments bears interest at the rate specified in
section 270C.40, from the due date of the payment until paid or until the due date of the
annual return at the rate specified in section 270C.40. An underpayment of an estimated
installment is the difference between the amount paid and the lesser of (1) 90 percent of
one-quarter of the tax for the calendar year, or (2) the tax for the actual gross revenues
received during the quarter.
new text end
new text begin
(b) A taxpayer with an aggregate tax liability of $10,000 or more during a fiscal
year ending June 30, must remit all liabilities by funds transfer as defined in section
336.4A-104, paragraph (a), in the next calendar year. The funds-transfer payment date,
as defined in section 336.4A-401, is on or before the first funds-transfer business day
after the date the tax is due.
new text end
new text begin
(c) The taxpayer must file an annual return reconciling the estimated payments by
March 15 of the following calendar year.
new text end
new text begin
(d) The estimated payments and annual return must contain the information and be
in the form prescribed by the commissioner.
new text end
new text begin Subd. 4. new text end
new text begin Compensating use tax. new text end
new text begin
If the tax is not paid under subdivision 2, a
compensating tax is imposed on possession for sale or use of sports memorabilia in
the state. The rate of tax equals the rate under subdivision 2, and must be paid by the
possessor of the items.
new text end
new text begin Subd. 5. new text end
new text begin Administrative provisions. new text end
new text begin
Unless specifically provided otherwise by this
section, the audit, assessment, refund, penalty, interest, enforcement, collection remedies,
appeal, and administrative provisions of chapters 270C and 289A that apply to taxes
imposed under chapter 297A apply to taxes imposed under this section.
new text end
new text begin Subd. 6. new text end
new text begin Disposition of revenues. new text end
new text begin
The commissioner shall deposit the revenues
from the tax in the general fund.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales made after June 30, 2013.
new text end
Sec. 3.
Minnesota Statutes 2012, section 297F.01, subdivision 3, is amended to read:
Subd. 3.
Cigarette.
"Cigarette" means any roll for smoking made wholly or in part
of tobaccodeleted text begin ,deleted text end new text begin that weighs 4.5 pounds or less per thousand:
new text end
new text begin (1)new text end the wrapper or cover of which is made of paper or another substance or material
except tobacconew text begin ; or
new text end
new text begin (2) wrapped in any substance containing tobacco, however labeled or named, which,
because of its appearance, size, the type of tobacco used in the filler, or its packaging,
pricing, marketing, or labeling, is likely to be offered to or purchased by consumers as
a cigarette, as defined in clause (1), unless it is wrapped in whole tobacco leaf and does
not have a cellulose acetate or other cigarette-like filternew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2013.
new text end
Sec. 4.
Minnesota Statutes 2012, section 297F.01, is amended by adding a subdivision
to read:
new text begin Subd. 10b. new text end
new text begin Moist snuff. new text end
new text begin
"Moist snuff" means any finely cut, ground, or powdered
smokeless tobacco that is intended to be placed or dipped in the mouth.
new text end
Sec. 5.
Minnesota Statutes 2012, section 297F.01, subdivision 19, is amended to read:
Subd. 19.
Tobacco products.
"Tobacco products" means any product containing,
made, or derived from tobacco that is intended for human consumption, whether chewed,
smoked, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means,
or any component, part, or accessory of a tobacco product, including, but not limited
to, cigars; deleted text begin little cigars;deleted text end cheroots; stogies; periques; granulated, plug cut, crimp cut,
ready rubbed, and other smoking tobacco; snuff; snuff flour; cavendish; plug and twist
tobacco; fine-cut and other chewing tobacco; shorts; refuse scraps, clippings, cuttings
and sweepings of tobacco, and other kinds and forms of tobacco; but does not include
cigarettes as defined in this section. Tobacco products excludes any tobacco product
that has been approved by the United States Food and Drug Administration for sale as
a tobacco cessation product, as a tobacco dependence product, or for other medical
purposes, and is being marketed and sold solely for such an approved purpose.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2013.
new text end
Sec. 6.
Minnesota Statutes 2012, section 297F.05, subdivision 1, is amended to read:
Subdivision 1.
Rates; cigarettes.
A tax is imposed upon the sale of cigarettes in
this state, upon having cigarettes in possession in this state with intent to sell, upon any
person engaged in business as a distributor, and upon the use or storage by consumers, at
the following rates:
(1) on cigarettes weighing not more than three pounds per thousand, deleted text begin 24deleted text end new text begin 141.5 new text end mills
on each such cigarette; and
(2) on cigarettes weighing more than three pounds per thousand, deleted text begin 48deleted text end new text begin 283new text end mills on
each such cigarette.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2013.
new text end
Sec. 7.
Minnesota Statutes 2012, section 297F.05, is amended by adding a subdivision
to read:
new text begin Subd. 1a. new text end
new text begin Annual indexing. new text end
new text begin
(a) Each year the commissioner shall adjust the
tax rates under subdivision 1, including any adjustment made in prior years under this
subdivision, by multiplying the mill rates for the current calendar year by an adjustment
factor. The adjustment factor equals the in-lieu sales tax rate that applies to the following
calendar year divided by the in-lieu sales tax rate for the current calendar year. For
purposes of this subdivision, "in-lieu sales tax rate" means the tax rate established under
section 297F.25, subdivision 1, in tenths of a cent per pack.
new text end
new text begin
(b) The commissioner shall publish the resulting rate by November 1 and the rate
applies to sales made on or after January 1 of the following year.
new text end
new text begin
(c) The determination of the commissioner under this subdivision is not a rule and is
not subject to the Administrative Procedure Act in chapter 14.
new text end
Sec. 8.
Minnesota Statutes 2012, section 297F.05, subdivision 3, is amended to read:
Subd. 3.
Rates; tobacco products.
new text begin (a) new text end A tax is imposed upon all tobacco products
in this state and upon any person engaged in business as a distributor, at the rate of deleted text begin 35
deleted text end new text begin 95 new text end percent of the wholesale sales price of the tobacco products. The tax is imposed at
the time the distributor:
(1) brings, or causes to be brought, into this state from outside the state tobacco
products for sale;
(2) makes, manufactures, or fabricates tobacco products in this state for sale in
this state; or
(3) ships or transports tobacco products to retailers in this state, to be sold by those
retailers.
new text begin
(b) Notwithstanding paragraph (a), a minimum tax equal to the rate imposed on a
pack of 20 cigarettes weighing not more than three pounds per thousand, as established
under subdivision 1, is imposed on each container of moist snuff.
new text end
new text begin
For purposes of this subdivision, a "container" means the smallest consumer-size can,
package, or other container that is marketed or packaged by the manufacturer, distributor,
or retailer for separate sale to a retail purchaser.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2013, except the minimum
tax under paragraph (b) is effective January 1, 2014.
new text end
Sec. 9.
Minnesota Statutes 2012, section 297F.05, subdivision 4, is amended to read:
Subd. 4.
Use tax; tobacco products.
A tax is imposed upon the use or storage by
consumers of tobacco products in this state, and upon such consumers, at the rate of deleted text begin 35deleted text end new text begin 95
new text end percent of the cost to the consumer of the tobacco productsnew text begin or the minimum tax under
subdivision 3, paragraph (b), whichever is greaternew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2013.
new text end
Sec. 10.
Minnesota Statutes 2012, section 297F.24, subdivision 1, is amended to read:
Subdivision 1.
Fee imposed.
(a) A fee is imposed upon the sale of nonsettlement
cigarettes in this state, upon having nonsettlement cigarettes in possession in this state
with intent to sell, upon any person engaged in business as a distributor, and upon the use
or storage by consumers of nonsettlement cigarettes. The fee equals a rate of deleted text begin 1.75deleted text end new text begin 2.5
new text end cents per cigarette.
(b) The purpose of this fee is to:
(1) ensure that manufacturers of nonsettlement cigarettes pay fees to the state that
are comparable to costs attributable to the use of the cigarettes;
(2) prevent manufacturers of nonsettlement cigarettes from undermining the state's
policy of discouraging underage smoking by offering nonsettlement cigarettes at prices
substantially below the cigarettes of other manufacturers; and
(3) fund such other purposes as the legislature determines appropriate.
Sec. 11.
Minnesota Statutes 2012, section 297F.25, subdivision 1, is amended to read:
Subdivision 1.
Imposition.
(a) A tax is imposed on distributors on the sale of
cigarettes by a cigarette distributor to a retailer or cigarette subjobber for resale in this
state. The tax is equal to deleted text begin 6.5 percent ofdeleted text end new text begin the combined tax rate under section 297A.62,
multiplied by new text end the weighted average retail price and must be expressed in cents per pack
rounded to the nearest one-tenth of a cent. The weighted average retail price must be
determined annually, with new rates published by November 1, and effective for sales
on or after January 1 of the following year. The weighted average retail price must be
established by surveying cigarette retailers statewide in a manner and time determined by
the commissioner. The commissioner shall make an inflation adjustment in accordance
with the Consumer Price Index for all urban consumers inflation indicator as published in
the most recent state budget forecast. The commissioner shall use the inflation factor for
the calendar year in which the new tax rate takes effect. If the survey indicates that the
average retail price of cigarettes has not increased relative to the average retail price in
the previous year's survey, then the commissioner shall not make an inflation adjustment.
The determination of the commissioner pursuant to this subdivision is not a "rule" and is
not subject to the Administrative Procedure Act contained in chapter 14. For packs of
cigarettes with other than 20 cigarettes, the tax must be adjusted proportionally.
(b) Notwithstanding paragraph (a), and in lieu of a survey of cigarette retailers, the
tax calculation of the weighted average retail price for the sales of cigarettes from August
1, 2011, through December 31, 2011, shall be calculated by: (1) increasing the average
retail price per pack of 20 cigarettes from the most recent survey by the percentage change
in a weighted average of the presumed legal prices for cigarettes during the year after
completion of that survey, as reported and published by the Department of Commerce
under section 325D.371; (2) subtracting the sales tax included in the retail price; and (3)
adjusting for expected inflation. The rate must be published by May 1 and is effective for
sales after July 31. If the weighted average of the presumed legal prices indicates that the
average retail price of cigarettes has not increased relative to the average retail price in the
most recent survey, then no inflation adjustment must be made. For packs of cigarettes
with other than 20 cigarettes, the tax must be adjusted proportionally.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2013.
new text end
Sec. 12.
Minnesota Statutes 2012, section 297G.03, subdivision 1, is amended to read:
Subdivision 1.
General rate; distilled spirits and wine.
The following excise tax is
imposed on all distilled spirits and wine manufactured, imported, sold, or possessed in
this state:
| Standard |
Metric |
|||
| (a) Distilled spirits, liqueurs, cordials, and specialties regardless of alcohol content (excluding ethyl alcohol) |
$ |
deleted text begin 5.03 deleted text end new text begin 11.02new text end per gallon |
$ |
deleted text begin 1.33 deleted text end new text begin 2.91new text end per liter |
| (b) Wine containing 14 percent or less alcohol by volume (except cider as defined in section 297G.01, subdivision 3a) |
$ |
deleted text begin .30 deleted text end new text begin 2.08new text end per gallon |
$ |
deleted text begin .08 deleted text end new text begin .55new text end per liter |
| (c) Wine containing more than 14 percent but not more than 21 percent alcohol by volume |
$ |
deleted text begin .95 deleted text end new text begin 2.73new text end per gallon |
$ |
deleted text begin .25 deleted text end new text begin .72new text end per liter |
| (d) Wine containing more than 21 percent but not more than 24 percent alcohol by volume |
$ |
deleted text begin 1.82 deleted text end new text begin 3.64new text end per gallon |
$ |
deleted text begin .48 deleted text end new text begin .97new text end per liter |
| (e) Wine containing more than 24 percent alcohol by volume |
$ |
deleted text begin 3.52 deleted text end new text begin 5.34new text end per gallon |
$ |
deleted text begin .93 deleted text end new text begin 1.42new text end per liter |
| (f) Natural and artificial sparkling wines containing alcohol |
$ |
deleted text begin 1.82 deleted text end new text begin 3.60new text end per gallon |
$ |
deleted text begin .48 deleted text end new text begin .95new text end per liter |
| (g) Cider as defined in section 297G.01, subdivision 3a |
$ |
deleted text begin .15 deleted text end new text begin 1.93new text end per gallon |
$ |
deleted text begin .04 deleted text end new text begin .51new text end per liter |
| (h) Low-alcohol dairy cocktails |
$ |
deleted text begin .08 deleted text end new text begin 1.36new text end per gallon |
$ |
deleted text begin .02 deleted text end new text begin .36new text end per liter |
In computing the tax on a package of distilled spirits or wine, a proportional tax at a
like rate on all fractional parts of a gallon or liter must be paid, except that the tax on a
fractional part of a gallon less than 1/16 of a gallon is the same as for 1/16 of a gallon.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2013.
new text end
Sec. 13.
Minnesota Statutes 2012, section 297G.03, is amended by adding a
subdivision to read:
new text begin Subd. 5. new text end
new text begin Small winery credit. new text end
new text begin
(a) A qualified winery is entitled to a tax credit of
$2.08 per gallon on 50,000 gallons sold in any fiscal year beginning July 1. Qualified
wineries may take the credit on the 18th day of each month, but the total credit allowed
may not exceed in any fiscal year the lesser of:
new text end
new text begin
(1) the liability for tax; or
new text end
new text begin
(2) $104,000.
new text end
new text begin
(b) For purposes of this subdivision, a "qualified winery" means a winery, whether
or not located in this state, producing less than 100,000 gallons of wine in the calendar
year immediately preceding the calendar year for which the credit under this subdivision
is claimed. In determining the number of gallons, all brands or labels of a winery must
be combined. All facilities for the production of wine owned or controlled by the same
person, corporation, or other entity must be treated as a single winery.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2013.
new text end
Sec. 14.
Minnesota Statutes 2012, section 297G.04, is amended to read:
297G.04 FERMENTED MALT BEVERAGES; RATE OF TAX.
Subdivision 1.
Tax imposed.
The following excise tax is imposed on all fermented
malt beverages that are imported, directly or indirectly sold, or possessed in this state:
(1) on fermented malt beverages containing not more than 3.2 percent alcohol by
weight, deleted text begin $2.40deleted text end new text begin $25.55new text end per 31-gallon barrel; and
(2) on fermented malt beverages containing more than 3.2 percent alcohol by
weight, deleted text begin $4.60deleted text end new text begin $27.75new text end per 31-gallon barrel.
For fractions of a 31-gallon barrel, the tax rate is calculated proportionally.
Subd. 2.
Tax credit.
A qualified brewer producing fermented malt beverages is
entitled to a tax credit of deleted text begin $4.60deleted text end new text begin $27.75new text end per barrel on deleted text begin 25,000deleted text end new text begin 50,000new text end barrels sold in any
fiscal year beginning July 1, regardless of the alcohol content of the product. Qualified
brewers may take the credit on the 18th day of each month, but the total credit allowed
may not exceed in any fiscal year the lesser of:
(1) the liability for tax; or
(2) deleted text begin $115,000deleted text end new text begin $1,387,500new text end .
For purposes of this subdivision, a "qualified brewer" means a brewer, whether or
not located in this state, manufacturing less than deleted text begin 100,000deleted text end new text begin 200,000new text end barrels of fermented
malt beverages in the calendar year immediately preceding the calendar year for which
the credit under this subdivision is claimed. In determining the number of barrels, all
brands or labels of a brewer must be combined. All facilities for the manufacture of
fermented malt beverages owned or controlled by the same person, corporation, or other
entity must be treated as a single brewer.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2013.
new text end
Sec. 15.
Minnesota Statutes 2012, section 325D.32, subdivision 2, is amended to read:
Subd. 2.
Cigarettes.
"Cigarettes" means and includes any roll for smoking, made
wholly or in part of tobacco, irrespective of size and shape and whether or not such
tobacco is flavored, adulterated or mixed with any other ingredient, the wrapper or cover
of which is made of paper or any other substance or material except new text begin whole new text end tobacconew text begin leaf,
and includes any cigarette as defined in section 297F.01, subdivision 3new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2013.
new text end
Sec. 16. new text begin FLOOR STOCKS TAX.
new text end
new text begin Subdivision 1. new text end
new text begin Cigarettes. new text end
new text begin
(a) A floor stocks tax is imposed on every person
engaged in the business in this state as a distributor, retailer, subjobber, vendor,
manufacturer, or manufacturer's representative of cigarettes, on the stamped cigarettes and
unaffixed stamps in the person's possession or under the person's control at 12:01 a.m. on
July 1, 2013. The tax is imposed at the rate of 80 mills on each cigarette.
new text end
new text begin
(b) Each distributor, on or before July 11, 2013, shall file a return with the
commissioner of revenue, in the form the commissioner prescribes, showing the stamped
cigarettes and unaffixed stamps on hand at 12:01 a.m. on July 1, 2013, and the amount
of tax due on the cigarettes and unaffixed stamps. Each retailer, subjobber, vendor,
manufacturer, or manufacturer's representative, on or before July 11, 2013, shall file
a return with the commissioner, in the form the commissioner prescribes, showing the
cigarettes on hand at 12:01 a.m. on July 1, 2013, and the amount of tax due on the
cigarettes. The tax imposed by this section is due and payable on or before August 8,
2013, and after that date bears interest at the rate of one percent per month.
new text end
new text begin Subd. 2. new text end
new text begin Audit and enforcement. new text end
new text begin
The tax imposed by this section is subject to
the audit, assessment, interest, appeal, refund, penalty, enforcement, administrative, and
collection provisions of Minnesota Statutes, chapters 270C and 297F. The commissioner
of revenue may require a distributor to receive and maintain copies of floor stocks fee
returns filed by all persons requesting a credit for returned cigarettes.
new text end
new text begin Subd. 3. new text end
new text begin Deposit of proceeds. new text end
new text begin
The commissioner of revenue shall deposit the
revenues from the tax under this section in the state treasury and credit them to the
general fund.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2013.
new text end
Sec. 17. new text begin INTERIM SALES TAX RATE.
new text end
new text begin
Notwithstanding the provisions of Minnesota Statutes, section 297F.25, the
commissioner shall adjust the weighted average retail price in section 297F.25, subdivision
1, on July 1, 2013, to reflect the price changes under this act. This weighted average
shall be used to compute cigarette sales tax under Minnesota Statutes, section 297F.25,
subdivision 1, until December 31, 2013, when the commissioner shall resume annual
adjustments to the weighted average sales price. The commissioner's determination of
the adjustment that takes effect on January 1, 2014, must be limited to the change in the
weighted average retail that occurs during calendar year 2013 but after July 15, 2013.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2013.
new text end
Sec. 18. new text begin TOBACCO TAX COLLECTION REPORT.
new text end
new text begin Subdivision 1. new text end
new text begin Report to legislature. new text end
new text begin
(a) The commissioner of revenue shall report
to the 2014 legislature on the tobacco tax collection system, including recommendations
to improve compliance under the excise tax for both cigarettes and other tobacco products.
The purpose of the report is to provide information and guidance to the legislature on
improvements to the tobacco tax collection system to:
new text end
new text begin
(1) provide a unified system of collecting both the cigarette and other tobacco
taxes, regardless of category, size, or shape, that ensures the highest reasonable rates of
tax collection;
new text end
new text begin
(2) discourage tax evasion; and
new text end
new text begin
(3) help to prevent illegal sale of tobacco products, which may make these products
more accessible to youth.
new text end
new text begin
(b) In the report, the commissioner shall:
new text end
new text begin
(1) provide a detailed review of the present excise tax collection and compliance
system as it applies to both cigarettes and other tobacco products. This must include
an assessment of the levels of compliance for each category of products and the effect
of the stamping requirement on compliance for each category of products and the effect
of the stamping requirement on compliance rates for cigarettes relative to other tobacco
products. It also must identify any weaknesses in the system;
new text end
new text begin
(2) survey the methods of collection and enforcement used by other states or nations,
including identifying and discussing emerging best practices that ensure tracking of both
cigarettes and other tobacco products and result in the highest rates of tax collection and
compliance. These best practices must consider high-technology alternatives, such as use
of bar codes, radio-frequency identification tags, or similar mechanisms for tracking
compliance;
new text end
new text begin
(3) evaluate the adequacy and effectiveness of the existing penalties and other
sanctions for noncompliance;
new text end
new text begin
(4) evaluate the adequacy of the resources allocated by the state to enforce the
tobacco tax and prevention laws; and
new text end
new text begin
(5) make recommendations on implementation of a comprehensive tobacco tax
collection system for Minnesota that can be implemented by January 1, 2014, including:
new text end
new text begin
(i) recommendations on the specific steps needed to institute and implement the new
system, including estimates of the state's costs of doing so and any additional personnel
requirements;
new text end
new text begin
(ii) recommendations on methods to recover the cost of implementing the system
from the industry;
new text end
new text begin
(iii) evaluation of the extent to which the proposed system is sufficiently flexible
and adaptable to adjust to modifications in the construction, packaging, formatting, and
marketing of tobacco products by the industry; and
new text end
new text begin
(iv) recommendations to modify existing penalties or to impose new penalties or
other sanctions to ensure compliance with the system.
new text end
new text begin Subd. 2. new text end
new text begin Due date. new text end
new text begin
The report required by subdivision 1 is due January 1, 2014.
new text end
new text begin Subd. 3. new text end
new text begin Procedure. new text end
new text begin
The report required under this section must be made in the
manner provided under Minnesota Statutes, section 3.195. In addition, copies must be
provided to the chairs and ranking minority members of the legislative committees and
divisions with jurisdiction over taxation.
new text end
new text begin Subd. 4. new text end
new text begin Appropriation. new text end
new text begin
(a) $100,000 is appropriated from the general fund to the
commissioner of revenue for fiscal year 2014 for the cost of preparing the report under
subdivision 1.
new text end
new text begin
(b) The appropriation under this subdivision is a onetime appropriation and is not
included in the base budget.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 19. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2012, sections 16A.725; and 256.9658,
new text end
new text begin
are repealed.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2013.
new text end
ARTICLE 6
INDIVIDUAL INCOME AND CORPORATE FRANCHISE TAXES
Section 1.
Minnesota Statutes 2012, section 116J.8737, subdivision 1, is amended to
read:
Subdivision 1.
Definitions.
(a) For the purposes of this section, the following terms
have the meanings given.
(b) "Qualified small business" means a business that has been certified by the
commissioner under subdivision 2.
(c) "Qualified investor" means an investor who has been certified by the
commissioner under subdivision 3.
(d) "Qualified fund" means a pooled angel investment network fund that has been
certified by the commissioner under subdivision 4.
(e) "Qualified investment" means a cash investment in a qualified small business
of a minimum of:
(1) $10,000 in a calendar year by a qualified investor; or
(2) $30,000 in a calendar year by a qualified fund.
A qualified investment must be made in exchange for common stock, a partnership
or membership interest, preferred stock, debt with mandatory conversion to equity, or an
equivalent ownership interest as determined by the commissioner.
(f) "Family" means a family member within the meaning of the Internal Revenue
Code, section 267(c)(4).
(g) "Pass-through entity" means a corporation that for the applicable taxable year is
treated as an S corporation or a general partnership, limited partnership, limited liability
partnership, trust, or limited liability company and which for the applicable taxable year is
not taxed as a corporation under chapter 290.
(h) "Intern" means a student of an accredited institution of higher education, or a
former student who has graduated in the past six months from an accredited institution
of higher education, who is employed by a qualified small business in a nonpermanent
position for a duration of nine months or less that provides training and experience in the
primary business activity of the business.
new text begin
(i) "Liquidation event" means a conversion of qualified investment for cash, cash
and other consideration, or any other form of equity or debt interest.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for qualified small businesses
certified after June 30, 2013.
new text end
Sec. 2.
Minnesota Statutes 2012, section 116J.8737, subdivision 2, is amended to read:
Subd. 2.
Certification of qualified small businesses.
(a) Businesses may apply
to the commissioner for certification as a qualified small business for a calendar year.
The application must be in the form and be made under the procedures specified by the
commissioner, accompanied by an application fee of $150. Application fees are deposited
in the small business investment tax credit administration account in the special revenue
fund. The application for certification for 2010 must be made available on the department's
Web site by August 1, 2010. Applications for subsequent years' certification must be made
available on the department's Web site by November 1 of the preceding year.
(b) Within 30 days of receiving an application for certification under this subdivision,
the commissioner must either certify the business as satisfying the conditions required of a
qualified small business, request additional information from the business, or reject the
application for certification. If the commissioner requests additional information from the
business, the commissioner must either certify the business or reject the application within
30 days of receiving the additional information. If the commissioner neither certifies the
business nor rejects the application within 30 days of receiving the original application or
within 30 days of receiving the additional information requested, whichever is later, then
the application is deemed rejected, and the commissioner must refund the $150 application
fee. A business that applies for certification and is rejected may reapply.
(c) To receive certification, a business must satisfy all of the following conditions:
(1) the business has its headquarters in Minnesota;
(2) at least 51 percent of the business's employees are employed in Minnesota, and
51 percent of the business's total payroll is paid or incurred in the state;
(3) the business is engaged in, or is committed to engage in, innovation in Minnesota
in one of the following as its primary business activity:
(i) using proprietary technology to add value to a product, process, or service in a
qualified high-technology field;
(ii) researching or developing a proprietary product, process, or service in a qualified
high-technology field; or
(iii) researching, developing, or producing a new proprietary technology for use in
the fields of agriculture, tourism, forestry, mining, manufacturing, or transportation;
(4) other than the activities specifically listed in clause (3), the business is not
engaged in real estate development, insurance, banking, lending, lobbying, political
consulting, information technology consulting, wholesale or retail trade, leisure,
hospitality, transportation, construction, ethanol production from corn, or professional
services provided by attorneys, accountants, business consultants, physicians, or health
care consultants;
(5) the business has fewer than 25 employees;
(6) the business must pay its employees annual wages of at least 175 percent of the
federal poverty guideline for the year for a family of four and must pay its interns annual
wages of at least 175 percent of the federal minimum wage used for federally covered
employers, except that this requirement must be reduced proportionately for employees
and interns who work less than full-time, and does not apply to an executive, officer, or
member of the board of the business, or to any employee who owns, controls, or holds
power to vote more than 20 percent of the outstanding securities of the business;
(7) the business hasnew text begin (i)new text end not been in operation for more than ten yearsnew text begin , or (ii) the
business has not been in operation for more than 20 years if the business is engaged
in the research, development, or production of medical devices or pharmaceuticals for
which United States Food and Drug Administration approval is required for use in the
treatment or diagnosis of a disease or conditionnew text end ;
(8) the business has not previously received private equity investments of more
than $4,000,000; deleted text begin and
deleted text end
(9) the business is not an entity disqualified under section 80A.50, paragraph (b),
clause (3)deleted text begin .deleted text end new text begin ; and
new text end
new text begin
(10) the business has not issued securities that are traded on a public exchange.
new text end
(d) In applying the limit under paragraph (c), clause (5), the employees in all members
of the unitary business, as defined in section 290.17, subdivision 4, must be included.
(e) In order for a qualified investment in a business to be eligible for tax creditsdeleted text begin ,deleted text end new text begin :
new text end
new text begin (1)new text end the business must have applied for and received certification for the calendar
year in which the investment was made prior to the date on which the qualified investment
was madedeleted text begin .deleted text end new text begin ;
new text end
new text begin
(2) the business must not have issued securities that are traded on a public exchange;
new text end
new text begin
(3) the business must not issue securities that are traded on a public exchange within
180 days after the date on which the qualified investment was made; and
new text end
new text begin
(4) the business must not have a liquidation event within 180 days after the date on
which the qualified investment was made.
new text end
(f) The commissioner must maintain a list of businesses certified under this
subdivision for the calendar year and make the list accessible to the public on the
department's Web site.
(g) For purposes of this subdivision, the following terms have the meanings given:
(1) "qualified high-technology field" includes aerospace, agricultural processing,
renewable energy, energy efficiency and conservation, environmental engineering, food
technology, cellulosic ethanol, information technology, materials science technology,
nanotechnology, telecommunications, biotechnology, medical device products,
pharmaceuticals, diagnostics, biologicals, chemistry, veterinary science, and similar
fields; and
(2) "proprietary technology" means the technical innovations that are unique and
legally owned or licensed by a business and includes, without limitation, those innovations
that are patented, patent pending, a subject of trade secrets, or copyrighted.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for qualified small businesses
certified after June 30, 2013, except the amendments to paragraph (c), clause (7), are
effective the day following final enactment.
new text end
Sec. 3.
Minnesota Statutes 2012, section 116J.8737, subdivision 8, is amended to read:
Subd. 8.
Data privacy.
(a) Data contained in an application submitted to the
commissioner under subdivision 2, 3, or 4 are nonpublic data, or private data on
individuals, as defined in section 13.02, subdivision 9 or 12, except that the following
data items are public:
(1) the namenew text begin , mailing address, telephone number, e-mail address, contact person's
name, and industry typenew text end of a qualified small business upon approval of the application
and certification by the commissioner under subdivision 2;
(2) the name of a qualified investor upon approval of the application and certification
by the commissioner under subdivision 3;
(3) the name of a qualified fund upon approval of the application and certification
by the commissioner under subdivision 4;
(4) for credit certificates issued under subdivision 5, the amount of the credit
certificate issued, amount of the qualifying investment, the name of the qualifying investor
or qualifying fund that received the certificate, and the name of the qualifying small
business in which the qualifying investment was made;
(5) for credits revoked under subdivision 7, paragraph (a), the amount revoked and
the name of the qualified investor or qualified fund; and
(6) for credits revoked under subdivision 7, paragraphs (b) and (c), the amount
revoked and the name of the qualified small business.
(b) The following data, including data classified as nonpublic or private, must be
provided to the consultant for use in conducting the program evaluation under subdivision
10:
(1) the commissioner of employment and economic development shall provide data
contained in an application for certification received from a qualified small business,
qualified investor, or qualified fund, and any annual reporting information received on a
qualified small business, qualified investor, or qualified fund; and
(2) the commissioner of revenue shall provide data contained in any applicable tax
returns of a qualified small business, qualified investor, or qualified fund.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 4.
Minnesota Statutes 2012, section 289A.02, subdivision 7, is amended to read:
Subd. 7.
Internal Revenue Code.
Unless specifically defined otherwise, "Internal
Revenue Code" means the Internal Revenue Code of 1986, as amended through deleted text begin April
14, 2011deleted text end new text begin January 3, 2013new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 5.
Minnesota Statutes 2012, section 289A.08, subdivision 1, is amended to read:
Subdivision 1.
Generally; individuals.
(a) A taxpayer must file a return for each
taxable year the taxpayer is required to file a return under section 6012 of the Internal
Revenue Code, except that:
(1) an individual who is not a Minnesota resident for any part of the year is not
required to file a Minnesota income tax return if the individual's gross income derived
from Minnesota sources as determined under sections 290.081, paragraph (a), and 290.17,
is less than the filing requirements for a single individual who is a full year resident of
Minnesota; and
(2) an individual who is a Minnesota resident is not required to file a Minnesota
income tax return if the individual's gross income derived from Minnesota sources as
determined under section 290.17, less the subtraction allowed under section 290.01,
subdivision 19b, clauses deleted text begin (11) and (14)deleted text end new text begin (9) and (12)new text end , is less than the filing requirements for
a single individual who is a full-year resident of Minnesota.
(b) The decedent's final income tax return, and other income tax returns for prior
years where the decedent had gross income in excess of the minimum amount at which
an individual is required to file and did not file, must be filed by the decedent's personal
representative, if any. If there is no personal representative, the return or returns must
be filed by the transferees, as defined in section 270C.58, subdivision 3, who receive
property of the decedent.
(c) The term "gross income," as it is used in this section, has the same meaning
given it in section 290.01, subdivision 20.
Sec. 6.
Minnesota Statutes 2012, section 289A.08, subdivision 3, is amended to read:
Subd. 3.
Corporations.
(a) A corporation that is subject to the state's jurisdiction to
tax under section 290.014, subdivision 5, must file a returndeleted text begin , except that a foreign operating
corporation as defined in section 290.01, subdivision 6b, is not required to file a returndeleted text end .
(b) Members of a unitary business that are required to file a combined report on one
return must designate a member of the unitary business to be responsible for tax matters,
including the filing of returns, the payment of taxes, additions to tax, penalties, interest,
or any other payment, and for the receipt of refunds of taxes or interest paid in excess of
taxes lawfully due. The designated member must be a member of the unitary business that
is filing the single combined report and either:
(1) a corporation that is subject to the taxes imposed by chapter 290; or
(2) a corporation that is not subject to the taxes imposed by chapter 290:
(i) Such corporation consents by filing the return as a designated member under this
clause to remit taxes, penalties, interest, or additions to tax due from the members of the
unitary business subject to tax, and receive refunds or other payments on behalf of other
members of the unitary business. The member designated under this clause is a "taxpayer"
for the purposes of this chapter and chapter 270C, and is liable for any liability imposed
on the unitary business under this chapter and chapter 290.
(ii) If the state does not otherwise have the jurisdiction to tax the member designated
under this clause, consenting to be the designated member does not create the jurisdiction
to impose tax on the designated member, other than as described in item (i).
(iii) The member designated under this clause must apply for a business tax account
identification number.
(c) The commissioner shall adopt rules for the filing of one return on behalf of the
members of an affiliated group of corporations that are required to file a combined report.
All members of an affiliated group that are required to file a combined report must file one
return on behalf of the members of the group under rules adopted by the commissioner.
(d) If a corporation claims on a return that it has paid tax in excess of the amount of
taxes lawfully due, that corporation must include on that return information necessary for
payment of the tax in excess of the amount lawfully due by electronic means.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after
December 31, 2012.
new text end
Sec. 7.
Minnesota Statutes 2012, section 289A.08, subdivision 7, is amended to read:
Subd. 7.
Composite income tax returns for nonresident partners, shareholders,
and beneficiaries.
(a) The commissioner may allow a partnership with nonresident
partners to file a composite return and to pay the tax on behalf of nonresident partners who
have no other Minnesota source income. This composite return must include the names,
addresses, Social Security numbers, income allocation, and tax liability for the nonresident
partners electing to be covered by the composite return.
(b) The computation of a partner's tax liability must be determined by multiplying
the income allocated to that partner by the highest rate used to determine the tax liability
for individuals under section 290.06, subdivision 2c. Nonbusiness deductions, standard
deductions, or personal exemptions are not allowed.
(c) The partnership must submit a request to use this composite return filing method
for nonresident partners. The requesting partnership must file a composite return in the
form prescribed by the commissioner of revenue. The filing of a composite return is
considered a request to use the composite return filing method.
(d) The electing partner must not have any Minnesota source income other than the
income from the partnership and other electing partnerships. If it is determined that the
electing partner has other Minnesota source income, the inclusion of the income and tax
liability for that partner under this provision will not constitute a return to satisfy the
requirements of subdivision 1. The tax paid for the individual as part of the composite return
is allowed as a payment of the tax by the individual on the date on which the composite
return payment was made. If the electing nonresident partner has no other Minnesota
source income, filing of the composite return is a return for purposes of subdivision 1.
(e) This subdivision does not negate the requirement that an individual pay estimated
tax if the individual's liability would exceed the requirements set forth in section 289A.25.
The individual's liability to pay estimated tax is, however, satisfied when the partnership
pays composite estimated tax in the manner prescribed in section 289A.25.
(f) If an electing partner's share of the partnership's gross income from Minnesota
sources is less than the filing requirements for a nonresident under this subdivision, the tax
liability is zero. However, a statement showing the partner's share of gross income must
be included as part of the composite return.
(g) The election provided in this subdivision is only available to a partner who has
no other Minnesota source income and who is either (1) a full-year nonresident individual
or (2) a trust or estate that does not claim a deduction under either section 651 or 661 of
the Internal Revenue Code.
(h) A corporation defined in section 290.9725 and its nonresident shareholders may
make an election under this paragraph. The provisions covering the partnership apply to
the corporation and the provisions applying to the partner apply to the shareholder.
(i) Estates and trusts distributing current income only and the nonresident individual
beneficiaries of the estates or trusts may make an election under this paragraph. The
provisions covering the partnership apply to the estate or trust. The provisions applying to
the partner apply to the beneficiary.
(j) For the purposes of this subdivision, "income" means the partner's share of
federal adjusted gross income from the partnership modified by the additions provided in
section 290.01, subdivision 19a, clauses (6) to deleted text begin (10)deleted text end new text begin (9)new text end , and the subtractions provided in:
(i) section 290.01, subdivision 19b, clause (8), to the extent the amount is assignable or
allocable to Minnesota under section 290.17; and (ii) section 290.01, subdivision 19b,
clause (13). The subtraction allowed under section 290.01, subdivision 19b, clause (8), is
only allowed on the composite tax computation to the extent the electing partner would
have been allowed the subtraction.
Sec. 8.
Minnesota Statutes 2012, section 290.01, subdivision 5, is amended to read:
Subd. 5.
Domestic corporation.
The term "domestic" when applied to a corporation
means a corporation:
(1) created or organized in the United States, or under the laws of the United States or
of any state, the District of Columbia, or any political subdivision of any of the foregoing
but not including the Commonwealth of Puerto Rico, or any possession of the United States;
deleted text begin
(2) which qualifies as a DISC, as defined in section 992(a) of the Internal Revenue
Code; or
deleted text end
deleted text begin
(3) which qualifies as a FSC, as defined in section 922 of the Internal Revenue Code.
deleted text end
new text begin
(2) which, regardless of the place where the corporation was incorporated:
new text end
new text begin
(i) has the average of its property, payroll, and sales factors, as defined under section
290.191, within the territorial limits of the 50 states of the United States and the District of
Columbia of 20 percent or more; or
new text end
new text begin
(ii) derives less than 80 percent of its income from foreign sources;
new text end
new text begin
(3) which is:
new text end
new text begin
(i) a foreign corporation, foreign partnership, or other foreign entity that has its
income included in the federal taxable income, as defined in section 63 of the Internal
Revenue Code, of an entity as defined in clause (1) or an individual who is a United States
resident, as defined in section 865(g) of the Internal Revenue Code; and
new text end
new text begin
(ii) not treated as a corporation for federal income tax purposes;
new text end
new text begin
(4) which is incorporated in a tax haven; or
new text end
new text begin
(5) which is engaged in activity in a tax haven sufficient for the tax haven to impose a
net income tax under United States constitutional standards and section 290.015, and which
reports that 20 percent or more of its income is attributable to business in the tax haven.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after
December 31, 2012.
new text end
Sec. 9.
Minnesota Statutes 2012, section 290.01, is amended by adding a subdivision
to read:
new text begin Subd. 5c. new text end
new text begin Tax haven. new text end
new text begin
(a) "Tax haven" means the following foreign jurisdictions,
unless the listing of the jurisdiction does not apply under paragraph (b):
new text end
new text begin
(1) Anguilla;
new text end
new text begin
(2) Antigua and Barbuda;
new text end
new text begin
(3) Aruba;
new text end
new text begin
(4) Bahamas;
new text end
new text begin
(5) Bahrain;
new text end
new text begin
(6) Belize;
new text end
new text begin
(7) Bermuda;
new text end
new text begin
(8) British Virgin Islands;
new text end
new text begin
(9) Cayman Islands;
new text end
new text begin
(10) Cook Islands;
new text end
new text begin
(11) Costa Rica;
new text end
new text begin
(12) Cyprus;
new text end
new text begin
(13) Dominica;
new text end
new text begin
(14) Gibraltar;
new text end
new text begin
(15) Grenada;
new text end
new text begin
(16) Guernsey-Sark-Alderney;
new text end
new text begin
(17) Isle of Man;
new text end
new text begin
(18) Jersey;
new text end
new text begin
(19) Jordan;
new text end
new text begin
(20) Lebanon;
new text end
new text begin
(21) Liberia;
new text end
new text begin
(22) Liechtenstein;
new text end
new text begin
(23) Malta;
new text end
new text begin
(24) Marshall Islands;
new text end
new text begin
(25) Monaco;
new text end
new text begin
(26) Nauru;
new text end
new text begin
(27) Netherlands Antilles;
new text end
new text begin
(28) Niue;
new text end
new text begin
(29) Panama;
new text end
new text begin
(30) St. Kitts and Nevis;
new text end
new text begin
(31) St. Lucia;
new text end
new text begin
(32) St. Vincent and Grenadines;
new text end
new text begin
(33) Samoa;
new text end
new text begin
(34) Turks and Caicos; and
new text end
new text begin
(35) Vanuatu.
new text end
new text begin
(b) A foreign jurisdiction's listing under paragraph (a) does not apply to the first
taxable year after:
new text end
new text begin
(1) the United States enters into a tax treaty or other agreement with the foreign
jurisdiction that provides for prompt, obligatory, and automatic exchange of information
with the United States government relevant to enforcing the provisions of federal tax laws
applicable to both individuals and all corporations and other entities and the treaty or other
agreement was in effect for the taxable year; and
new text end
new text begin
(2) the foreign jurisdiction imposes a tax rate of at least ten percent on a tax base
equal to at least 90 percent of the tax base that applies to corporations under the Internal
Revenue Code.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for returns filed for taxable years
beginning after December 31, 2012.
new text end
Sec. 10.
Minnesota Statutes 2012, section 290.01, subdivision 19, as amended by Laws
2013, chapter 3, section 3, is amended to read:
Subd. 19.
Net income.
The term "net income" means the federal taxable income,
as defined in section 63 of the Internal Revenue Code of 1986, as amended through the
date named in this subdivision, incorporating the federal effective dates of changes to the
Internal Revenue Code and any elections made by the taxpayer in accordance with the
Internal Revenue Code in determining federal taxable income for federal income tax
purposes, and with the modifications provided in subdivisions 19a to 19f.
In the case of a regulated investment company or a fund thereof, as defined in section
851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
except that:
(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
Revenue Code does not apply;
(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal
Revenue Code must be applied by allowing a deduction for capital gain dividends and
exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal
Revenue Code; and
(3) the deduction for dividends paid must also be applied in the amount of any
undistributed capital gains which the regulated investment company elects to have treated
as provided in section 852(b)(3)(D) of the Internal Revenue Code.
The net income of a real estate investment trust as defined and limited by section
856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust
taxable income as defined in section 857(b)(2) of the Internal Revenue Code.
The net income of a designated settlement fund as defined in section 468B(d) of
the Internal Revenue Code means the gross income as defined in section 468B(b) of the
Internal Revenue Code.
The Internal Revenue Code of 1986, as amended through deleted text begin April 14, 2011deleted text end new text begin January 3,
2013new text end , shall be in effect for taxable years beginning after December 31, 1996deleted text begin , and before
January 1, 2012, and for taxable years beginning after December 31, 2012. The Internal
Revenue Code of 1986, as amended through January 3, 2013, is in effect for taxable years
beginning after December 31, 2011, and before January 1, 2013deleted text end .
Except as otherwise provided, references to the Internal Revenue Code in
subdivisions 19 to 19f mean the code in effect for purposes of determining net income for
the applicable year.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment,
except the changes incorporated by federal changes are effective at the same time as the
changes were effective for federal purposes.
new text end
Sec. 11.
Minnesota Statutes 2012, section 290.01, subdivision 19a, is amended to read:
Subd. 19a.
Additions to federal taxable income.
For individuals, estates, and
trusts, there shall be added to federal taxable income:
(1)(i) interest income on obligations of any state other than Minnesota or a political
or governmental subdivision, municipality, or governmental agency or instrumentality
of any state other than Minnesota exempt from federal income taxes under the Internal
Revenue Code or any other federal statute; and
(ii) exempt-interest dividends as defined in section 852(b)(5) of the Internal Revenue
Code, except:
(A) the portion of the exempt-interest dividends exempt from state taxation under
the laws of the United States; and
(B) the portion of the exempt-interest dividends derived from interest income
on obligations of the state of Minnesota or its political or governmental subdivisions,
municipalities, governmental agencies or instrumentalities, but only if the portion of the
exempt-interest dividends from such Minnesota sources paid to all shareholders represents
95 percent or more of the exempt-interest dividends, including any dividends exempt
under subitem (A), that are paid by the regulated investment company as defined in section
851(a) of the Internal Revenue Code, or the fund of the regulated investment company as
defined in section 851(g) of the Internal Revenue Code, making the payment; and
(iii) for the purposes of items (i) and (ii), interest on obligations of an Indian tribal
government described in section 7871(c) of the Internal Revenue Code shall be treated as
interest income on obligations of the state in which the tribe is located;
(2) new text begin to the extent allowed as a deduction under section 63(d) of the Internal Revenue
Code new text end the amount ofnew text begin :
new text end
new text begin (i)new text end income, sales and use, motor vehicle sales, or excise taxes paid or accrued within
the taxable year under this chapter deleted text begin and the amount ofdeleted text end new text begin ;new text end
new text begin (ii) new text end taxes based on net income paid, sales and use, motor vehicle sales, or excise
taxes paid to any other state or to any province or territory of Canadadeleted text begin , to the extent allowed
as a deduction under section 63(d) of the Internal Revenue Code,deleted text end new text begin ;
new text end
new text begin
(iii) charitable contributions, as defined in section 170(c) of the Internal Revenue
Code, to the extent allowed as a deduction under section 170(a) of the Internal Revenue
Code.
new text end
deleted text begin butdeleted text end The deleted text begin additiondeleted text end new text begin sum of the additions under items (i) to (iii)new text end may not be more
than the amount by which the deleted text begin itemized deductions as allowed under section 63(d) of
the Internal Revenue Codedeleted text end new text begin state itemized deductionnew text end exceeds the amount of the standard
deduction as defined in section 63(c) of the Internal Revenue Codedeleted text begin , disregarding the
amounts allowed under sections 63(c)(1)(C) and 63(c)(1)(E) of the Internal Revenue
Code, minus any addition that would have been required under clause (21) if the taxpayer
had claimed the standard deduction. For the purpose of this paragraph, the disallowance of
itemized deductions under section 68 of the Internal Revenue Code of 1986, income, sales
and use, motor vehicle sales, or excise taxes are the last itemized deductions disalloweddeleted text end new text begin .
For purposes of this clause, income, sales and use, and charitable contributions are the last
itemized deductions disallowed under clause (13)new text end ;
(3) the capital gain amount of a lump-sum distribution to which the special tax under
section 1122(h)(3)(B)(ii) of the Tax Reform Act of 1986, Public Law 99-514, applies;
(4) the amount of income taxes paid or accrued within the taxable year under this
chapter and taxes based on net income paid to any other state or any province or territory
of Canada, to the extent allowed as a deduction in determining federal adjusted gross
income. For the purpose of this paragraph, income taxes do not include the taxes imposed
by sections 290.0922, subdivision 1, paragraph (b), 290.9727, 290.9728, and 290.9729;
(5) the amount of expense, interest, or taxes disallowed pursuant to section 290.10
other than expenses or interest used in computing net interest income for the subtraction
allowed under subdivision 19b, clause (1);
(6) the amount of a partner's pro rata share of net income which does not flow
through to the partner because the partnership elected to pay the tax on the income under
section 6242(a)(2) of the Internal Revenue Code;
(7) 80 percent of the depreciation deduction allowed under section 168(k) of the
Internal Revenue Code. For purposes of this clause, if the taxpayer has an activity that
in the taxable year generates a deduction for depreciation under section 168(k) and the
activity generates a loss for the taxable year that the taxpayer is not allowed to claim for
the taxable year, "the depreciation allowed under section 168(k)" for the taxable year is
limited to excess of the depreciation claimed by the activity under section 168(k) over the
amount of the loss from the activity that is not allowed in the taxable year. In succeeding
taxable years when the losses not allowed in the taxable year are allowed, the depreciation
under section 168(k) is allowed;
(8) 80 percent of the amount by which the deduction allowed by section 179 of the
Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal
Revenue Code of 1986, as amended through December 31, 2003;
(9) to the extent deducted in computing federal taxable income, the amount of the
deduction allowable under section 199 of the Internal Revenue Code;
deleted text begin
(10) for taxable years beginning before January 1, 2013, the exclusion allowed under
section 139A of the Internal Revenue Code for federal subsidies for prescription drug plans;
deleted text end
deleted text begin (11)deleted text end new text begin (10) new text end the amount of expenses disallowed under section 290.10, subdivision 2;
deleted text begin
(12) for taxable years beginning before January 1, 2010, the amount deducted for
qualified tuition and related expenses under section 222 of the Internal Revenue Code, to
the extent deducted from gross income;
deleted text end
deleted text begin
(13) for taxable years beginning before January 1, 2010, the amount deducted for
certain expenses of elementary and secondary school teachers under section 62(a)(2)(D)
of the Internal Revenue Code, to the extent deducted from gross income;
deleted text end
deleted text begin
(14) the additional standard deduction for property taxes payable that is allowable
under section 63(c)(1)(C) of the Internal Revenue Code;
deleted text end
deleted text begin
(15) the additional standard deduction for qualified motor vehicle sales taxes
allowable under section 63(c)(1)(E) of the Internal Revenue Code;
deleted text end
deleted text begin (16)deleted text end new text begin (11)new text end discharge of indebtedness income resulting from reacquisition of business
indebtedness and deferred under section 108(i) of the Internal Revenue Code;
deleted text begin
(17) the amount of unemployment compensation exempt from tax under section
85(c) of the Internal Revenue Code;
deleted text end
deleted text begin (18)deleted text end new text begin (12)new text end changes to federal taxable income attributable to a net operating loss that
the taxpayer elected to carry back for more than two years for federal purposes but for
which the losses can be carried back for only two years under section 290.095, subdivision
11, paragraph (c);
deleted text begin (19)deleted text end new text begin (13)new text end to the extent included in the computation of federal taxable income in
taxable years beginning after December 31, 2010, the amount of disallowed itemized
deductions, but the amount of disallowed itemized deductions plus the addition required
under clause (2) may not be more than the amount by which the itemized deductions as
allowed under section 63(d) of the Internal Revenue Code exceeds the amount of the
standard deduction as defined in section 63(c) of the Internal Revenue Codedeleted text begin , disregarding
the amounts allowed under sections 63(c)(1)(C) and 63(c)(1)(E) of the Internal Revenue
Code, and reduced by any addition that would have been required under clause (21) if the
taxpayer had claimed the standard deductiondeleted text end :
(i) the amount of disallowed itemized deductions is equal to the lesser of:
(A) three percent of the excess of the taxpayer's federal adjusted gross income
over the applicable amount; or
(B) 80 percent of the amount of the itemized deductions otherwise allowable to the
taxpayer under the Internal Revenue Code for the taxable year;
(ii) the term "applicable amount" means $100,000, or $50,000 in the case of a
married individual filing a separate return. Each dollar amount shall be increased by
an amount equal to:
(A) such dollar amount, multiplied by
(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal
Revenue Code for the calendar year in which the taxable year begins, by substituting
"calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof;
(iii) the term "itemized deductions" does not include:
(A) the deduction for medical expenses under section 213 of the Internal Revenue
Code;
(B) any deduction for investment interest as defined in section 163(d) of the Internal
Revenue Code; and
(C) the deduction under section 165(a) of the Internal Revenue Code for casualty or
theft losses described in paragraph (2) or (3) of section 165(c) of the Internal Revenue
Code or for losses described in section 165(d) of the Internal Revenue Code;new text begin and
new text end
deleted text begin (20)deleted text end new text begin (14)new text end to the extent included in federal taxable income in taxable years beginning
after December 31, 2010, the amount of disallowed personal exemptions for taxpayers
with federal adjusted gross income over the threshold amount:
(i) the disallowed personal exemption amount is equal to the dollar amount of the
personal exemptions claimed by the taxpayer in the computation of federal taxable income
multiplied by the applicable percentage;
(ii) "applicable percentage" means two percentage points for each $2,500 (or
fraction thereof) by which the taxpayer's federal adjusted gross income for the taxable
year exceeds the threshold amount. In the case of a married individual filing a separate
return, the preceding sentence shall be applied by substituting "$1,250" for "$2,500." In
no event shall the applicable percentage exceed 100 percent;
(iii) the term "threshold amount" means:
(A) $150,000 in the case of a joint return or a surviving spouse;
(B) $125,000 in the case of a head of a household;
(C) $100,000 in the case of an individual who is not married and who is not a
surviving spouse or head of a household; and
(D) $75,000 in the case of a married individual filing a separate return; and
(iv) the thresholds shall be increased by an amount equal to:
(A) such dollar amount, multiplied by
(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal
Revenue Code for the calendar year in which the taxable year begins, by substituting
"calendar year 1990" for "calendar year 1992" in subparagraph (B) thereofdeleted text begin ; anddeleted text end new text begin .
new text end
deleted text begin
(21) to the extent deducted in the computation of federal taxable income, for taxable
years beginning after December 31, 2010, and before January 1, 2013, the difference
between the standard deduction allowed under section 63(c) of the Internal Revenue Code
and the standard deduction allowed for 2011 and 2012 under the Internal Revenue Code
as amended through December 1, 2010.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after
December 31, 2012.
new text end
Sec. 12.
Minnesota Statutes 2012, section 290.01, subdivision 19b, is amended to read:
Subd. 19b.
Subtractions from federal taxable income.
For individuals, estates,
and trusts, there shall be subtracted from federal taxable income:
(1) net interest income on obligations of any authority, commission, or
instrumentality of the United States to the extent includable in taxable income for federal
income tax purposes but exempt from state income tax under the laws of the United States;
(2) if included in federal taxable income, the amount of any overpayment of income
tax to Minnesota or to any other state, for any previous taxable year, whether the amount
is received as a refund or as a credit to another taxable year's income tax liability;
(3) the amount paid to others, less the amount used to claim the credit allowed under
section 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten
to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and
transportation of each qualifying child in attending an elementary or secondary school
situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a
resident of this state may legally fulfill the state's compulsory attendance laws, which
is not operated for profit, and which adheres to the provisions of the Civil Rights Act
of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or
tuition as defined in section 290.0674, subdivision 1, clause (1). As used in this clause,
"textbooks" includes books and other instructional materials and equipment purchased
or leased for use in elementary and secondary schools in teaching only those subjects
legally and commonly taught in public elementary and secondary schools in this state.
Equipment expenses qualifying for deduction includes expenses as defined and limited in
section 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional
books and materials used in the teaching of religious tenets, doctrines, or worship, the
purpose of which is to instill such tenets, doctrines, or worship, nor does it include books
or materials for, or transportation to, extracurricular activities including sporting events,
musical or dramatic events, speech activities, driver's education, or similar programs. No
deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or
the qualifying child's vehicle to provide such transportation for a qualifying child. For
purposes of the subtraction provided by this clause, "qualifying child" has the meaning
given in section 32(c)(3) of the Internal Revenue Code;
(4) income as provided under section 290.0802;
(5) to the extent included in federal adjusted gross income, income realized on
disposition of property exempt from tax under section 290.491;
deleted text begin
(6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E)
of the Internal Revenue Code in determining federal taxable income by an individual
who does not itemize deductions for federal income tax purposes for the taxable year, an
amount equal to 50 percent of the excess of charitable contributions over $500 allowable
as a deduction for the taxable year under section 170(a) of the Internal Revenue Code,
under the provisions of Public Law 109-1 and Public Law 111-126;
deleted text end
deleted text begin
(7) for individuals who are allowed a federal foreign tax credit for taxes that do not
qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover
of subnational foreign taxes for the taxable year, but not to exceed the total subnational
foreign taxes reported in claiming the foreign tax credit. For purposes of this clause,
"federal foreign tax credit" means the credit allowed under section 27 of the Internal
Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed
under section 904(c) of the Internal Revenue Code minus national level foreign taxes to
the extent they exceed the federal foreign tax credit;
deleted text end
deleted text begin (8)deleted text end new text begin (6)new text end in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19a, clause (7), or 19c, clause deleted text begin (15)deleted text end new text begin (12)new text end , in the case
of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount
of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c,
clause deleted text begin (15)deleted text end new text begin (12)new text end , in the case of a shareholder of an S corporation, minus the positive value
of any net operating loss under section 172 of the Internal Revenue Code generated for the
tax year of the addition. The resulting delayed depreciation cannot be less than zero;
deleted text begin (9)deleted text end new text begin (7)new text end job opportunity building zone income as provided under section 469.316;
deleted text begin (10)deleted text end new text begin (8)new text end to the extent included in federal taxable income, the amount of compensation
paid to members of the Minnesota National Guard or other reserve components of the
United States military for active service, excluding compensation for services performed
under the Active Guard Reserve (AGR) program. For purposes of this clause, "active
service" means (i) state active service as defined in section 190.05, subdivision 5a, clause
(1); or (ii) federally funded state active service as defined in section 190.05, subdivision
5b, but "active service" excludes service performed in accordance with section 190.08,
subdivision 3;
deleted text begin (11)deleted text end new text begin (9)new text end to the extent included in federal taxable income, the amount of compensation
paid to Minnesota residents who are members of the armed forces of the United States
or United Nations for active duty performed under United States Code, title 10; or the
authority of the United Nations;
deleted text begin (12)deleted text end new text begin (10) new text end an amount, not to exceed $10,000, equal to qualified expenses related to a
qualified donor's donation, while living, of one or more of the qualified donor's organs
to another person for human organ transplantation. For purposes of this clause, "organ"
means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow;
"human organ transplantation" means the medical procedure by which transfer of a human
organ is made from the body of one person to the body of another person; "qualified
expenses" means unreimbursed expenses for both the individual and the qualified donor
for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses
may be subtracted under this clause only once; and "qualified donor" means the individual
or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An
individual may claim the subtraction in this clause for each instance of organ donation for
transplantation during the taxable year in which the qualified expenses occur;
deleted text begin (13)deleted text end new text begin (11)new text end in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19a, clause (8), or 19c, clause deleted text begin (16)deleted text end new text begin (13)new text end , in the case
of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth of
the addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause deleted text begin (16)
deleted text end new text begin (13)new text end , in the case of a shareholder of a corporation that is an S corporation, minus the
positive value of any net operating loss under section 172 of the Internal Revenue Code
generated for the tax year of the addition. If the net operating loss exceeds the addition for
the tax year, a subtraction is not allowed under this clause;
deleted text begin (14)deleted text end new text begin (12)new text end to the extent included in the federal taxable income of a nonresident of
Minnesota, compensation paid to a service member as defined in United States Code, title
10, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief
Act, Public Law 108-189, section 101(2);
deleted text begin (15)deleted text end new text begin (13)new text end to the extent included in federal taxable income, the amount of national
service educational awards received from the National Service Trust under United States
Code, title 42, sections 12601 to 12604, for service in an approved Americorps National
Service program;
deleted text begin (16)deleted text end new text begin (14)new text end to the extent included in federal taxable income, discharge of indebtedness
income resulting from reacquisition of business indebtedness included in federal taxable
income under section 108(i) of the Internal Revenue Code. This subtraction applies only
to the extent that the income was included in net income in a prior year as a result of the
addition under section 290.01, subdivision 19a, clause deleted text begin (16)deleted text end new text begin (11)new text end ; deleted text begin and
deleted text end
deleted text begin (17)deleted text end new text begin (15)new text end the amount of the net operating loss allowed under section 290.095,
subdivision 11, paragraph (c)deleted text begin .deleted text end new text begin ;
new text end
new text begin
(16) the amount of the limitation on itemized deductions under section 68(b) of the
Internal Revenue Code;
new text end
new text begin
(17) the amount of the phase-out of personal exemptions under section 151(d) of
the Internal Revenue Code; and
new text end
new text begin
(18) in the year that the expenditures are made for railroad track maintenance, as
defined in section 45G(d) of the Internal Revenue Code, in the case of a shareholder of a
corporation that is an S corporation or a partner in a partnership, an amount equal to the
credit awarded under section 45G(a) of the Internal Revenue Code. The subtraction is
reduced to an amount equal to the percentage of the shareholder's or partner's share of the
net income of the S corporation or partnership.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after
December 31, 2012.
new text end
Sec. 13.
Minnesota Statutes 2012, section 290.01, subdivision 19c, is amended to read:
Subd. 19c.
Corporations; additions to federal taxable income.
For corporations,
there shall be added to federal taxable income:
(1) the amount of any deduction taken for federal income tax purposes for income,
excise, or franchise taxes based on net income or related minimum taxes, including but not
limited to the tax imposed under section 290.0922, paid by the corporation to Minnesota,
another state, a political subdivision of another state, the District of Columbia, or any
foreign country or possession of the United States;
(2) interest not subject to federal tax upon obligations of: the United States, its
possessions, its agencies, or its instrumentalities; the state of Minnesota or any other
state, any of its political or governmental subdivisions, any of its municipalities, or any
of its governmental agencies or instrumentalities; the District of Columbia; or Indian
tribal governments;
(3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal
Revenue Code;
(4) the amount of any net operating loss deduction taken for federal income tax
purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations loss
deduction under section 810 of the Internal Revenue Code;
(5) the amount of any special deductions taken for federal income tax purposes
under sections 241 to 247 and 965 of the Internal Revenue Code;
(6) losses from the business of mining, as defined in section 290.05, subdivision 1,
clause (a), that are not subject to Minnesota income tax;
(7) the amount of any capital losses deducted for federal income tax purposes under
sections 1211 and 1212 of the Internal Revenue Code;
deleted text begin
(8) the exempt foreign trade income of a foreign sales corporation under sections
921(a) and 291 of the Internal Revenue Code;
deleted text end
deleted text begin (9)deleted text end new text begin (8)new text end the amount of percentage depletion deducted under sections 611 through
614 and 291 of the Internal Revenue Code;
deleted text begin (10)deleted text end new text begin (9)new text end for certified pollution control facilities placed in service in a taxable year
beginning before December 31, 1986, and for which amortization deductions were elected
under section 169 of the Internal Revenue Code of 1954, as amended through December
31, 1985, the amount of the amortization deduction allowed in computing federal taxable
income for those facilities;
deleted text begin
(11) the amount of any deemed dividend from a foreign operating corporation
determined pursuant to section 290.17, subdivision 4, paragraph (g). The deemed dividend
shall be reduced by the amount of the addition to income required by clauses (20), (21),
(22), and (23);
deleted text end
deleted text begin (12)deleted text end new text begin (10)new text end the amount of a partner's pro rata share of net income which does not flow
through to the partner because the partnership elected to pay the tax on the income under
section 6242(a)(2) of the Internal Revenue Code;
deleted text begin
(13) the amount of net income excluded under section 114 of the Internal Revenue
Code;
deleted text end
deleted text begin (14)deleted text end new text begin (11)new text end any increase in subpart F income, as defined in section 952(a) of the
Internal Revenue Code, for the taxable year when subpart F income is calculated without
regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343;
deleted text begin (15)deleted text end new text begin (12)new text end 80 percent of the depreciation deduction allowed under section
168(k)(1)(A) and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause, if
the taxpayer has an activity that in the taxable year generates a deduction for depreciation
under section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the taxable
year that the taxpayer is not allowed to claim for the taxable year, "the depreciation
allowed under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess
of the depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A)
over the amount of the loss from the activity that is not allowed in the taxable year. In
succeeding taxable years when the losses not allowed in the taxable year are allowed, the
depreciation under section 168(k)(1)(A) and (k)(4)(A) is allowed;
deleted text begin (16)deleted text end new text begin (13)new text end 80 percent of the amount by which the deduction allowed by section 179 of
the Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal
Revenue Code of 1986, as amended through December 31, 2003;
deleted text begin (17)deleted text end new text begin (14)new text end to the extent deducted in computing federal taxable income, the amount of
the deduction allowable under section 199 of the Internal Revenue Code;
deleted text begin
(18) for taxable years beginning before January 1, 2013, the exclusion allowed under
section 139A of the Internal Revenue Code for federal subsidies for prescription drug plans;
deleted text end
deleted text begin (19)deleted text end new text begin (15)new text end the amount of expenses disallowed under section 290.10, subdivision 2;new text begin and
new text end
deleted text begin
(20) an amount equal to the interest and intangible expenses, losses, and costs paid,
accrued, or incurred by any member of the taxpayer's unitary group to or for the benefit
of a corporation that is a member of the taxpayer's unitary business group that qualifies
as a foreign operating corporation. For purposes of this clause, intangible expenses and
costs include:
deleted text end
deleted text begin
(i) expenses, losses, and costs for, or related to, the direct or indirect acquisition,
use, maintenance or management, ownership, sale, exchange, or any other disposition of
intangible property;
deleted text end
deleted text begin
(ii) losses incurred, directly or indirectly, from factoring transactions or discounting
transactions;
deleted text end
deleted text begin
(iii) royalty, patent, technical, and copyright fees;
deleted text end
deleted text begin
(iv) licensing fees; and
deleted text end
deleted text begin
(v) other similar expenses and costs.
deleted text end
deleted text begin
For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent
applications, trade names, trademarks, service marks, copyrights, mask works, trade
secrets, and similar types of intangible assets.
deleted text end
deleted text begin
This clause does not apply to any item of interest or intangible expenses or costs paid,
accrued, or incurred, directly or indirectly, to a foreign operating corporation with respect
to such item of income to the extent that the income to the foreign operating corporation
is income from sources without the United States as defined in subtitle A, chapter 1,
subchapter N, part 1, of the Internal Revenue Code;
deleted text end
deleted text begin
(21) except as already included in the taxpayer's taxable income pursuant to clause
(20), any interest income and income generated from intangible property received or
accrued by a foreign operating corporation that is a member of the taxpayer's unitary
group. For purposes of this clause, income generated from intangible property includes:
deleted text end
deleted text begin
(i) income related to the direct or indirect acquisition, use, maintenance or
management, ownership, sale, exchange, or any other disposition of intangible property;
deleted text end
deleted text begin
(ii) income from factoring transactions or discounting transactions;
deleted text end
deleted text begin
(iii) royalty, patent, technical, and copyright fees;
deleted text end
deleted text begin
(iv) licensing fees; and
deleted text end
deleted text begin
(v) other similar income.
deleted text end
deleted text begin
For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent
applications, trade names, trademarks, service marks, copyrights, mask works, trade
secrets, and similar types of intangible assets.
deleted text end
deleted text begin
This clause does not apply to any item of interest or intangible income received or accrued
by a foreign operating corporation with respect to such item of income to the extent that
the income is income from sources without the United States as defined in subtitle A,
chapter 1, subchapter N, part 1, of the Internal Revenue Code;
deleted text end
deleted text begin
(22) the dividends attributable to the income of a foreign operating corporation that
is a member of the taxpayer's unitary group in an amount that is equal to the dividends
paid deduction of a real estate investment trust under section 561(a) of the Internal
Revenue Code for amounts paid or accrued by the real estate investment trust to the
foreign operating corporation;
deleted text end
deleted text begin
(23) the income of a foreign operating corporation that is a member of the taxpayer's
unitary group in an amount that is equal to gains derived from the sale of real or personal
property located in the United States;
deleted text end
deleted text begin
(24) for taxable years beginning before January 1, 2010, the additional amount
allowed as a deduction for donation of computer technology and equipment under section
170(e)(6) of the Internal Revenue Code, to the extent deducted from taxable income; and
deleted text end
deleted text begin (25)deleted text end new text begin (16)new text end discharge of indebtedness income resulting from reacquisition of business
indebtedness and deferred under section 108(i) of the Internal Revenue Code.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after
December 31, 2012.
new text end
Sec. 14.
Minnesota Statutes 2012, section 290.01, subdivision 19d, is amended to read:
Subd. 19d.
Corporations; modifications decreasing federal taxable income.
For
corporations, there shall be subtracted from federal taxable income after the increases
provided in subdivision 19c:
(1) the amount of foreign dividend gross-up added to gross income for federal
income tax purposes under section 78 of the Internal Revenue Code;
(2) the amount of salary expense not allowed for federal income tax purposes due to
claiming the work opportunity credit under section 51 of the Internal Revenue Code;
(3) any dividend (not including any distribution in liquidation) paid within the
taxable year by a national or state bank to the United States, or to any instrumentality of
the United States exempt from federal income taxes, on the preferred stock of the bank
owned by the United States or the instrumentality;
(4) amounts disallowed for intangible drilling costs due to differences between
this chapter and the Internal Revenue Code in taxable years beginning before January
1, 1987, as follows:
(i) to the extent the disallowed costs are represented by physical property, an amount
equal to the allowance for depreciation under Minnesota Statutes 1986, section 290.09,
subdivision 7, subject to the modifications contained in subdivision 19e; and
(ii) to the extent the disallowed costs are not represented by physical property, an
amount equal to the allowance for cost depletion under Minnesota Statutes 1986, section
290.09, subdivision 8;
(5) the deduction for capital losses pursuant to sections 1211 and 1212 of the
Internal Revenue Code, except that:
(i) for capital losses incurred in taxable years beginning after December 31, 1986,
capital loss carrybacks shall not be allowed;
(ii) for capital losses incurred in taxable years beginning after December 31, 1986,
a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be
allowed;
(iii) for capital losses incurred in taxable years beginning before January 1, 1987, a
capital loss carryback to each of the three taxable years preceding the loss year, subject to
the provisions of Minnesota Statutes 1986, section 290.16, shall be allowed; and
(iv) for capital losses incurred in taxable years beginning before January 1, 1987,
a capital loss carryover to each of the five taxable years succeeding the loss year to the
extent such loss was not used in a prior taxable year and subject to the provisions of
Minnesota Statutes 1986, section 290.16, shall be allowed;
(6) an amount for interest and expenses relating to income not taxable for federal
income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and
expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or
291 of the Internal Revenue Code in computing federal taxable income;
(7) in the case of mines, oil and gas wells, other natural deposits, and timber for
which percentage depletion was disallowed pursuant to subdivision 19c, clause deleted text begin (9)deleted text end new text begin (8)new text end , a
reasonable allowance for depletion based on actual cost. In the case of leases the deduction
must be apportioned between the lessor and lessee in accordance with rules prescribed
by the commissioner. In the case of property held in trust, the allowable deduction must
be apportioned between the income beneficiaries and the trustee in accordance with the
pertinent provisions of the trust, or if there is no provision in the instrument, on the basis
of the trust's income allocable to each;
(8) for certified pollution control facilities placed in service in a taxable year
beginning before December 31, 1986, and for which amortization deductions were elected
under section 169 of the Internal Revenue Code of 1954, as amended through December
31, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes
1986, section 290.09, subdivision 7;
(9) amounts included in federal taxable income that are due to refunds of income,
excise, or franchise taxes based on net income or related minimum taxes paid by the
corporation to Minnesota, another state, a political subdivision of another state, the
District of Columbia, or a foreign country or possession of the United States to the extent
that the taxes were added to federal taxable income under deleted text begin section deleted text end deleted text begin 290.01,deleted text end subdivision 19c,
clause (1), in a prior taxable year;
(10) deleted text begin 80deleted text end new text begin 50new text end percent of royalties, fees, or other like income accrued or received from a
deleted text begin foreign operating corporation or adeleted text end foreign corporation which is part of the same unitary
business as the receiving corporation, unless the income resulting from such payments or
accruals is income from sources within the United States as defined in subtitle A, chapter
1, subchapter N, part 1, of the Internal Revenue Code;
(11) income or gains from the business of mining as defined in section 290.05,
subdivision 1, clause (a), that are not subject to Minnesota franchise tax;
(12) the amount of disability access expenditures in the taxable year which are not
allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code;
(13) the amount of qualified research expenses not allowed for federal income tax
purposes under section 280C(c) of the Internal Revenue Code, but only to the extent that
the amount exceeds the amount of the credit allowed under section 290.068;
(14) the amount of salary expenses not allowed for federal income tax purposes due to
claiming the Indian employment credit under section 45A(a) of the Internal Revenue Code;
deleted text begin
(15) for a corporation whose foreign sales corporation, as defined in section 922
of the Internal Revenue Code, constituted a foreign operating corporation during any
taxable year ending before January 1, 1995, and a return was filed by August 15, 1996,
claiming the deduction under section 290.21, subdivision 4, for income received from
the foreign operating corporation, an amount equal to 1.23 multiplied by the amount of
income excluded under section 114 of the Internal Revenue Code, provided the income is
not income of a foreign operating company;
deleted text end
deleted text begin (16)deleted text end new text begin (15)new text end any decrease in subpart F income, as defined in section 952(a) of the
Internal Revenue Code, for the taxable year when subpart F income is calculated without
regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343;
deleted text begin (17)deleted text end new text begin (16)new text end in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19c, clause deleted text begin (15)deleted text end new text begin (12)new text end , an amount equal to one-fifth
of the delayed depreciation. For purposes of this clause, "delayed depreciation" means the
amount of the addition made by the taxpayer under subdivision 19c, clause deleted text begin (15)deleted text end new text begin (12)new text end . The
resulting delayed depreciation cannot be less than zero;
deleted text begin (18)deleted text end new text begin (17)new text end in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19c, clause deleted text begin (16)deleted text end new text begin (13)new text end , an amount equal to one-fifth
of the amount of the addition; deleted text begin and
deleted text end
deleted text begin (19)deleted text end new text begin (18)new text end to the extent included in federal taxable income, discharge of indebtedness
income resulting from reacquisition of business indebtedness included in federal taxable
income under section 108(i) of the Internal Revenue Code. This subtraction applies only
to the extent that the income was included in net income in a prior year as a result of the
addition under deleted text begin section deleted text end deleted text begin 290.01,deleted text end subdivision 19c, clause deleted text begin (25).deleted text end new text begin (16); and
new text end
new text begin
(19) in the year that the expenditures are made for railroad track maintenance, as
defined in section 45G(d) of the Internal Revenue Code, an amount equal to the credit
awarded under section 45G(a) of the Internal Revenue Code.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after
December 31, 2012.
new text end
Sec. 15.
Minnesota Statutes 2012, section 290.01, is amended by adding a subdivision
to read:
new text begin Subd. 29a. new text end
new text begin State itemized deduction. new text end
new text begin
The term "state itemized deduction" means
federal itemized deductions, as defined in section 63(d) of the Internal Revenue Code,
disregarding any limitation under section 68 of the Internal Revenue Code, and reduced
by the amount of the addition required under subdivision 19a, clause (13).
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after
December 31, 2012.
new text end
Sec. 16.
Minnesota Statutes 2012, section 290.01, subdivision 31, as amended by Laws
2013, chapter 3, section 4, is amended to read:
Subd. 31.
Internal Revenue Code.
Unless specifically defined otherwise, deleted text begin for
taxable years beginning before January 1, 2012, and after December 31, 2012,deleted text end "Internal
Revenue Code" means the Internal Revenue Code of 1986, as amended through deleted text begin April 14,
2011; and for taxable years beginning after December 31, 2011, and before January 1,
2013, "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended
throughdeleted text end January 3, 2013. Internal Revenue Code also includes any uncodified provision in
federal law that relates to provisions of the Internal Revenue Code that are incorporated
into Minnesota law. When used in this chapter, the reference to "subtitle A, chapter 1,
subchapter N, part 1, of the Internal Revenue Code" is to the Internal Revenue Code as
amended through March 18, 2010.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment,
except the changes incorporated by federal changes are effective at the same time as the
changes were effective for federal purposes.
new text end
Sec. 17.
Minnesota Statutes 2012, section 290.01, is amended by adding a subdivision
to read:
new text begin Subd. 33. new text end
new text begin Foreign source income; income from foreign sources. new text end
new text begin
The terms
"foreign source income" and "income from foreign sources" means income from sources
without the United States as defined in subtitle A, chapter 1, subchapter N, part 1, of the
Internal Revenue Code.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after
December 31, 2012.
new text end
Sec. 18.
Minnesota Statutes 2012, section 290.06, subdivision 2c, is amended to read:
Subd. 2c.
Schedules of rates for individuals, estates, and trusts.
(a) The income
taxes imposed by this chapter upon married individuals filing joint returns and surviving
spouses as defined in section 2(a) of the Internal Revenue Code must be computed by
applying to their taxable net income the following schedule of rates:
(1) On the first deleted text begin $25,680deleted text end new text begin $31,250new text end , 5.35 percent;
(2) On all over deleted text begin $25,680deleted text end new text begin $31,250new text end , but not over deleted text begin $102,030deleted text end new text begin $130,000new text end , 7.05 percent;
(3) On all over deleted text begin $102,030deleted text end new text begin $130,000, but not over $400,000new text end , 7.85 percentdeleted text begin .deleted text end new text begin ;
new text end
new text begin
(4) On all over $400,000, 8.49 percent.
new text end
Married individuals filing separate returns, estates, and trusts must compute their
income tax by applying the above rates to their taxable income, except that the income
brackets will be one-half of the above amounts.
(b) The income taxes imposed by this chapter upon unmarried individuals must be
computed by applying to taxable net income the following schedule of rates:
(1) On the first deleted text begin $17,570deleted text end new text begin $21,400new text end , 5.35 percent;
(2) On all over deleted text begin $17,570deleted text end new text begin $21,400new text end , but not over deleted text begin $57,710deleted text end new text begin $73,500new text end , 7.05 percent;
(3) On all over deleted text begin $57,710deleted text end new text begin $73,500, but not over $226,200new text end , 7.85 percentdeleted text begin .deleted text end new text begin ;
new text end
new text begin
(4) On all over $226,200, 8.49 percent.
new text end
(c) The income taxes imposed by this chapter upon unmarried individuals qualifying
as a head of household as defined in section 2(b) of the Internal Revenue Code must be
computed by applying to taxable net income the following schedule of rates:
(1) On the first deleted text begin $21,630deleted text end new text begin $26,300new text end , 5.35 percent;
(2) On all over deleted text begin $21,630deleted text end new text begin $26,300new text end , but not over deleted text begin $86,910deleted text end new text begin $110,700new text end , 7.05 percent;
(3) On all over deleted text begin $86,910deleted text end new text begin $110,700, but not over $340,700new text end , 7.85 percentdeleted text begin .deleted text end new text begin ;
new text end
new text begin
(4) On all over $340,700, 8.49 percent.
new text end
(d) In lieu of a tax computed according to the rates set forth in this subdivision, the
tax of any individual taxpayer whose taxable net income for the taxable year is less than
an amount determined by the commissioner must be computed in accordance with tables
prepared and issued by the commissioner of revenue based on income brackets of not
more than $100. The amount of tax for each bracket shall be computed at the rates set
forth in this subdivision, provided that the commissioner may disregard a fractional part of
a dollar unless it amounts to 50 cents or more, in which case it may be increased to $1.
(e) An individual who is not a Minnesota resident for the entire year must compute
the individual's Minnesota income tax as provided in this subdivision. After the
application of the nonrefundable credits provided in this chapter, the tax liability must
then be multiplied by a fraction in which:
(1) the numerator is the individual's Minnesota source federal adjusted gross income
as defined in section 62 of the Internal Revenue Code and increased by the additions
required under section 290.01, subdivision 19a, clauses (1), deleted text begin (5), (6), (7), (8), (9), (12),
(13), and (16) to (18)deleted text end new text begin (5) to (9), (11), and (12)new text end , and reduced by the Minnesota assignable
portion of the subtraction for United States government interest under section 290.01,
subdivision 19b, clause (1), and the subtractions under section 290.01, subdivision 19b,
clauses deleted text begin (8), (9), (13), (14), (16), and (17)deleted text end new text begin (6), (7), (11), (12), (14), and (15)new text end , after applying
the allocation and assignability provisions of section 290.081, clause (a), or 290.17; and
(2) the denominator is the individual's federal adjusted gross income as defined in
section 62 of the Internal Revenue Code of 1986, increased by the amounts specified in
section 290.01, subdivision 19a, clauses (1), deleted text begin (5), (6), (7), (8), (9), (12), (13), and (16) to
(18)deleted text end new text begin (5) to (9), (11), and (12)new text end , and reduced by the amounts specified in section 290.01,
subdivision 19b, clauses (1), deleted text begin (8), (9), (13), (14), (16), and (17)deleted text end new text begin (6), (7), (11), (12), (14),
and (15)new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after
December 31, 2012.
new text end
Sec. 19.
Minnesota Statutes 2012, section 290.06, subdivision 2d, is amended to read:
Subd. 2d.
Inflation adjustment of brackets.
(a) For taxable years beginning after
December 31, deleted text begin 2000deleted text end new text begin 2013new text end , the minimum and maximum dollar amounts for each rate
bracket for which a tax is imposed in subdivision 2c shall be adjusted for inflation by the
percentage determined under paragraph (b). For the purpose of making the adjustment as
provided in this subdivision all of the rate brackets provided in subdivision 2c shall be the
rate brackets as they existed for taxable years beginning after December 31, deleted text begin 1999deleted text end new text begin 2012new text end ,
and before January 1, deleted text begin 2001deleted text end new text begin 2014new text end . The rate applicable to any rate bracket must not be
changed. The dollar amounts setting forth the tax shall be adjusted to reflect the changes
in the rate brackets. The rate brackets as adjusted must be rounded to the nearest $10
amount. If the rate bracket ends in $5, it must be rounded up to the nearest $10 amount.
(b) The commissioner shall adjust the rate brackets and by the percentage determined
pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in
section 1(f)(3)(B) the word deleted text begin "1999"deleted text end new text begin "2012"new text end shall be substituted for the word "1992." For
deleted text begin 2001deleted text end new text begin 2014new text end , the commissioner shall then determine the percent change from the 12 months
ending on August 31, deleted text begin 1999deleted text end new text begin 2012new text end , to the 12 months ending on August 31, deleted text begin 2000deleted text end new text begin 2013new text end , and
in each subsequent year, from the 12 months ending on August 31, deleted text begin 1999deleted text end new text begin 2012new text end , to the 12
months ending on August 31 of the year preceding the taxable year. The determination of
the commissioner pursuant to this subdivision shall not be considered a "rule" and shall
not be subject to the Administrative Procedure Act contained in chapter 14.
No later than December 15 of each year, the commissioner shall announce the
specific percentage that will be used to adjust the tax rate brackets.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after
December 31, 2012.
new text end
Sec. 20.
Minnesota Statutes 2012, section 290.06, is amended by adding a subdivision
to read:
new text begin Subd. 36. new text end
new text begin Charitable contributions credit. new text end
new text begin
(a) A taxpayer, other than a corporation,
estate, or trust, is allowed a credit against the tax imposed by this chapter equal to eight
percent of the amount by which eligible charitable contributions exceed the greater of:
new text end
new text begin
(1) two percent of the taxpayer's adjusted gross income for the taxable year; or
new text end
new text begin
(2) $400 ($800 for married filing jointly).
new text end
new text begin
(b) For purposes of this subdivision, "eligible charitable contributions" means
charitable contributions allowable as a deduction for the taxable year under section 170(a)
of the Internal Revenue Code, subject to the limitations of section 170(b) of the Internal
Revenue Code, and determined without regard to whether or not the taxpayer itemizes
deductions.
new text end
new text begin
(c) For purposes of this subdivision, "adjusted gross income" has the meaning given
in section 62 of the Internal Revenue Code.
new text end
new text begin
(d) For a nonresident or part-year resident, the credit must be allocated based on the
percentage calculated under subdivision 2c, paragraph (e).
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after
December 31, 2012.
new text end
Sec. 21.
Minnesota Statutes 2012, section 290.067, subdivision 1, is amended to read:
Subdivision 1.
Amount of credit.
(a) A taxpayer may take as a credit against the
tax due from the taxpayer and a spouse, if any, under this chapter an amount equal to the
dependent care credit for which the taxpayer is eligible pursuant to the provisions of
section 21 of the Internal Revenue Code subject to the limitations provided in subdivision
2 except that in determining whether the child qualified as a dependent, income received
as a Minnesota family investment program grant or allowance to or on behalf of the child
must not be taken into account in determining whether the child received more than half
of the child's support from the taxpayer, and the provisions of section 32(b)(1)(D) of
the Internal Revenue Code do not apply.
(b) If a child who has not attained the age of six years at the close of the taxable year
is cared for at a licensed family day care home operated by the child's parent, the taxpayer
is deemed to have paid employment-related expenses. If the child is 16 months old or
younger at the close of the taxable year, the amount of expenses deemed to have been paid
equals the maximum limit for one qualified individual under section 21(c) and (d) of the
Internal Revenue Code. If the child is older than 16 months of age but has not attained the
age of six years at the close of the taxable year, the amount of expenses deemed to have
been paid equals the amount the licensee would charge for the care of a child of the same
age for the same number of hours of care.
(c) If a married couple:
(1) has a child who has not attained the age of one year at the close of the taxable year;
(2) files a joint tax return for the taxable year; and
(3) does not participate in a dependent care assistance program as defined in section
129 of the Internal Revenue Code, in lieu of the actual employment related expenses paid
for that child under paragraph (a) or the deemed amount under paragraph (b), the lesser of
(i) the combined earned income of the couple or (ii) the amount of the maximum limit for
one qualified individual under section 21(c) and (d) of the Internal Revenue Code will
be deemed to be the employment related expense paid for that child. The earned income
limitation of section 21(d) of the Internal Revenue Code shall not apply to this deemed
amount. These deemed amounts apply regardless of whether any employment-related
expenses have been paid.
(d) If the taxpayer is not required and does not file a federal individual income tax
return for the tax year, no credit is allowed for any amount paid to any person unless:
(1) the name, address, and taxpayer identification number of the person are included
on the return claiming the credit; or
(2) if the person is an organization described in section 501(c)(3) of the Internal
Revenue Code and exempt from tax under section 501(a) of the Internal Revenue Code,
the name and address of the person are included on the return claiming the credit.
In the case of a failure to provide the information required under the preceding sentence,
the preceding sentence does not apply if it is shown that the taxpayer exercised due
diligence in attempting to provide the information required.
In the case of a nonresident, part-year resident, or a person who has earned income
not subject to tax under this chapter including earned income excluded pursuant to section
290.01, subdivision 19b, clause deleted text begin (9)deleted text end new text begin (7)new text end , the credit determined under section 21 of the
Internal Revenue Code must be allocated based on the ratio by which the earned income
of the claimant and the claimant's spouse from Minnesota sources bears to the total earned
income of the claimant and the claimant's spouse.
For residents of Minnesota, the subtractions for military pay under section 290.01,
subdivision 19b, clauses deleted text begin (10) and (11)deleted text end new text begin (8) and (9)new text end , are not considered "earned income not
subject to tax under this chapter."
For residents of Minnesota, the exclusion of combat pay under section 112 of the
Internal Revenue Code is not considered "earned income not subject to tax under this
chapter."
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after
December 31, 2012.
new text end
Sec. 22.
Minnesota Statutes 2012, section 290.067, subdivision 2a, is amended to read:
Subd. 2a.
Income.
(a) For purposes of this section, "income" means the sum of
the following:
(1) federal adjusted gross income as defined in section 62 of the Internal Revenue
Code; and
(2) the sum of the following amounts to the extent not included in clause (1):
(i) all nontaxable income;
(ii) the amount of a passive activity loss that is not disallowed as a result of section
469, paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity
loss carryover allowed under section 469(b) of the Internal Revenue Code;
(iii) an amount equal to the total of any discharge of qualified farm indebtedness
of a solvent individual excluded from gross income under section 108(g) of the Internal
Revenue Code;
(iv) cash public assistance and relief;
(v) any pension or annuity (including railroad retirement benefits, all payments
received under the federal Social Security Act, supplemental security income, and veterans
benefits), which was not exclusively funded by the claimant or spouse, or which was
funded exclusively by the claimant or spouse and which funding payments were excluded
from federal adjusted gross income in the years when the payments were made;
(vi) interest received from the federal or a state government or any instrumentality
or political subdivision thereof;
(vii) workers' compensation;
(viii) nontaxable strike benefits;
(ix) the gross amounts of payments received in the nature of disability income or
sick pay as a result of accident, sickness, or other disability, whether funded through
insurance or otherwise;
(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
1986, as amended through December 31, 1995;
(xi) contributions made by the claimant to an individual retirement account,
including a qualified voluntary employee contribution; simplified employee pension plan;
self-employed retirement plan; cash or deferred arrangement plan under section 401(k)
of the Internal Revenue Code; or deferred compensation plan under section 457 of the
Internal Revenue Code;
(xii) nontaxable scholarship or fellowship grants;
(xiii) the amount of deduction allowed under section 199 of the Internal Revenue
Code;
(xiv) the amount of deduction allowed under section 220 or 223 of the Internal
Revenue Code;
(xv) the amount deleted text begin ofdeleted text end new text begin deducted fornew text end tuition expenses deleted text begin required to be added to income
under section 290.01, subdivision 19a, clause (12)deleted text end new text begin under section 222 of the Internal
Revenue Codenew text end ;new text begin and
new text end
(xvi) the amount deducted for certain expenses of elementary and secondary school
teachers under section 62(a)(2)(D) of the Internal Revenue Codedeleted text begin ; anddeleted text end new text begin .
new text end
deleted text begin
(xvii) unemployment compensation.
deleted text end
In the case of an individual who files an income tax return on a fiscal year basis, the
term "federal adjusted gross income" means federal adjusted gross income reflected in the
fiscal year ending in the next calendar year. Federal adjusted gross income may not be
reduced by the amount of a net operating loss carryback or carryforward or a capital loss
carryback or carryforward allowed for the year.
(b) "Income" does not include:
(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
(2) amounts of any pension or annuity that were exclusively funded by the claimant
or spouse if the funding payments were not excluded from federal adjusted gross income
in the years when the payments were made;
(3) surplus food or other relief in kind supplied by a governmental agency;
(4) relief granted under chapter 290A;
(5) child support payments received under a temporary or final decree of dissolution
or legal separation; and
(6) restitution payments received by eligible individuals and excludable interest as
defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of
2001, Public Law 107-16.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after
December 31, 2012.
new text end
Sec. 23.
Minnesota Statutes 2012, section 290.0671, subdivision 1, is amended to read:
Subdivision 1.
Credit allowed.
(a) An individual is allowed a credit against the tax
imposed by this chapter equal to a percentage of earned income. To receive a credit, a
taxpayer must be eligible for a credit under section 32 of the Internal Revenue Code.
(b) For individuals with no qualifying children, the credit equals 1.9125 percent of
the first $4,620 of earned income. The credit is reduced by 1.9125 percent of earned
income or adjusted gross income, whichever is greater, in excess of $5,770, but in no
case is the credit less than zero.
(c) For individuals with one qualifying child, the credit equals 8.5 percent of the first
$6,920 of earned income and 8.5 percent of earned income over $12,080 but less than
$13,450. The credit is reduced by 5.73 percent of earned income or adjusted gross income,
whichever is greater, in excess of $15,080, but in no case is the credit less than zero.
(d) For individuals with two or more qualifying children, the credit equals ten percent
of the first $9,720 of earned income and 20 percent of earned income over $14,860 but less
than $16,800. The credit is reduced by 10.3 percent of earned income or adjusted gross
income, whichever is greater, in excess of $17,890, but in no case is the credit less than zero.
(e) For a nonresident or part-year resident, the credit must be allocated based on the
percentage calculated under section 290.06, subdivision 2c, paragraph (e).
(f) For a person who was a resident for the entire tax year and has earned income
not subject to tax under this chapter, including income excluded under section 290.01,
subdivision 19b, clause (9), the credit must be allocated based on the ratio of federal
adjusted gross income reduced by the earned income not subject to tax under this chapter
over federal adjusted gross income. For purposes of this paragraph, the subtractions for
military pay under section 290.01, subdivision 19b, clauses deleted text begin (10) and (11)deleted text end new text begin (8) and (9)new text end , are
not considered "earned income not subject to tax under this chapter."
For the purposes of this paragraph, the exclusion of combat pay under section 112
of the Internal Revenue Code is not considered "earned income not subject to tax under
this chapter."
(g) For tax years beginning after December 31, 2007, and before December 31,
2010, new text begin and for tax years beginning after December 31, 2017, new text end the $5,770 in paragraph (b),
the $15,080 in paragraph (c), and the $17,890 in paragraph (d), after being adjusted for
inflation under subdivision 7, are each increased by $3,000 for married taxpayers filing joint
returns. For tax years beginning after December 31, 2008, the commissioner shall annually
adjust the $3,000 by the percentage determined pursuant to the provisions of section 1(f)
of the Internal Revenue Code, except that in section 1(f)(3)(B), the word "2007" shall be
substituted for the word "1992." For 2009, the commissioner shall then determine the
percent change from the 12 months ending on August 31, 2007, to the 12 months ending on
August 31, 2008, and in each subsequent year, from the 12 months ending on August 31,
2007, to the 12 months ending on August 31 of the year preceding the taxable year. The
earned income thresholds as adjusted for inflation must be rounded to the nearest $10. If the
amount ends in $5, the amount is rounded up to the nearest $10. The determination of the
commissioner under this subdivision is not a rule under the Administrative Procedure Act.
(h) For tax years beginning after December 31, 2010, and before January 1, 2012,
new text begin and for tax years beginning after December 31, 2012, and before January 1, 2018,new text end the
$5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in paragraph
(d), after being adjusted for inflation under subdivision 7, are each increased by $5,000
for married taxpayers filing joint returns. For tax years beginning after December 31,
2010, and before January 1, 2012,new text begin and for tax years beginning after December 31, 2012,
and before January 1, 2018,new text end the commissioner shall annually adjust the $5,000 by the
percentage determined pursuant to the provisions of section 1(f) of the Internal Revenue
Code, except that in section 1(f)(3)(B), the word "2008" shall be substituted for the word
"1992." For 2011, the commissioner shall then determine the percent change from the 12
months ending on August 31, 2008, to the 12 months ending on August 31, 2010new text begin , and in
each subsequent year, from the 12 months ending on August 31, 2008, to the 12 months
ending on August 31 of the year preceding the taxable yearnew text end . The earned income thresholds
as adjusted for inflation must be rounded to the nearest $10. If the amount ends in $5, the
amount is rounded up to the nearest $10. The determination of the commissioner under
this subdivision is not a rule under the Administrative Procedure Act.
(i) The commissioner shall construct tables showing the amount of the credit at
various income levels and make them available to taxpayers. The tables shall follow
the schedule contained in this subdivision, except that the commissioner may graduate
the transition between income brackets.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after
December 31, 2012.
new text end
Sec. 24.
Minnesota Statutes 2012, section 290.0675, subdivision 1, is amended to read:
Subdivision 1.
Definitions.
(a) For purposes of this section the following terms
have the meanings given.
(b) "Earned income" means the sum of the following, to the extent included in
Minnesota taxable income:
(1) earned income as defined in section 32(c)(2) of the Internal Revenue Code;
(2) income received from a retirement pension, profit-sharing, stock bonus, or
annuity plan; and
(3) Social Security benefits as defined in section 86(d)(1) of the Internal Revenue
Code.
(c) "Taxable income" means net income as defined in section 290.01, subdivision 19.
(d) "Earned income of lesser-earning spouse" means the earned income of the
spouse with the lesser amount of earned income as defined in paragraph (b) for the taxable
year minus the sum of (i) the amount for one exemption under section 151(d) of the
Internal Revenue Code and (ii) one-half the amount of the standard deduction under
section 63(c)(2)(A) and (4) of the Internal Revenue Code deleted text begin minus one-half of any addition
required under section 290.01, subdivision 19a, clause (21), and one-half of the addition
that would have been required under section 290.01, subdivision 19a, clause deleted text end deleted text begin (21), if the
taxpayer had claimed the standard deductiondeleted text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after
December 31, 2012.
new text end
Sec. 25.
Minnesota Statutes 2012, section 290.0677, subdivision 2, is amended to read:
Subd. 2.
Definitions.
(a) For purposes of this sectionnew text begin ,new text end the following terms have
the meanings given.
(b) "Designated area" means a:
(1) combat zone designated by Executive Order from the President of the United
States;
(2) qualified hazardous duty area, designated in Public Law; or
(3) location certified by the U. S. Department of Defense as eligible for combat zone
tax benefits due to the location's direct support of military operations.
(c) "Active military service" means active duty service in any of the United States
armed forces, the National Guard, or reserves.
(d) "Qualified individual" means an individual who hasnew text begin :
new text end
(1) deleted text begin either (i)deleted text end new text begin met one of the following criteria:
new text end
new text begin (i) hasnew text end served at least 20 years in the military deleted text begin ordeleted text end new text begin ;
new text end
(ii) has a service-connected disability rating of 100 percent for a total and permanent
disability; new text begin or
new text end
new text begin (iii) has been determined by the military to be eligible for compensation from a
pension or other retirement pay from the federal government for service in the military,
as computed under United States Code, title 10, sections 1401 to 1414, 1447 to 1455,
or 12733; new text end and
(2) separated from military service before the end of the taxable year.
(e) "Adjusted gross income" has the meaning given in section 61 of the Internal
Revenue Code.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after
December 31, 2012.
new text end
Sec. 26.
Minnesota Statutes 2012, section 290.068, subdivision 3, is amended to read:
Subd. 3.
Limitation; carryover.
(a)(1) The credit for a taxable year beginning
before January 1, 2010, new text begin and after December 31, 2012, new text end shall not exceed the liability for
tax. "Liability for tax" for purposes of this section means the tax imposed under section
290.06, subdivision 1, for the taxable year reduced by the sum of the nonrefundable
credits allowed under this chapter.
(2) In the case of a corporation which is a partner in a partnership, the credit allowed
for the taxable year shall not exceed the lesser of the amount determined under clause (1)
for the taxable year or an amount (separately computed with respect to the corporation's
interest in the trade or business or entity) equal to the amount of tax attributable to that
portion of taxable income which is allocable or apportionable to the corporation's interest
in the trade or business or entity.
(b) If the amount of the credit determined under this section for any taxable year
exceeds the limitation under clause (a), the excess shall be a research credit carryover to
each of the 15 succeeding taxable years. The entire amount of the excess unused credit for
the taxable year shall be carried first to the earliest of the taxable years to which the credit
may be carried and then to each successive year to which the credit may be carried. The
amount of the unused credit which may be added under this clause shall not exceed the
taxpayer's liability for tax less the research credit for the taxable year.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after
December 31, 2012.
new text end
Sec. 27.
Minnesota Statutes 2012, section 290.068, subdivision 6a, is amended to read:
Subd. 6a.
Credit to be refundable.
If the amount of credit allowed in this section
for qualified research expenses incurred in taxable years beginning after December 31,
2009, new text begin and before January 1, 2013, new text end exceeds the taxpayer's tax liability under this chapter,
the commissioner shall refund the excess amount. The credit allowed for qualified research
expenses incurred in taxable years beginning after December 31, 2009,new text begin and before January
1, 2013, new text end must be used before any research credit earned under subdivision 3.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after
December 31, 2012.
new text end
Sec. 28.
Minnesota Statutes 2012, section 290.0681, subdivision 1, is amended to read:
Subdivision 1.
Definitions.
(a) For purposes of this section, the following terms
have the meanings given.
(b) "Account" means the historic credit administration account in the special
revenue fund.
(c) "Office" means the State Historic Preservation Office of the Minnesota Historical
Society.
(d) "Project" means rehabilitation of a certified historic structure, as defined in
section 47(c)(3)(A) of the Internal Revenue Code, that is located in Minnesota and is
allowed a federal credit deleted text begin under section 47(a)(2) of the Internal Revenue Codedeleted text end .
(e) "Society" means the Minnesota Historical Society.
new text begin
(f) "Federal credit" means the credit allowed under section 47(a)(2) of the Internal
Revenue Code.
new text end
new text begin
(g) "Placed in service" has the meaning used in section 47 of the Internal Revenue
Code.
new text end
new text begin
(h) "Qualified rehabilitation expenditures" has the meaning given in section 47 of
the Internal Revenue Code.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 29.
Minnesota Statutes 2012, section 290.0681, subdivision 3, is amended to read:
Subd. 3.
Applications; allocations.
(a) To qualify for a credit or grant under this
section, the developer of a project must apply to the office before the rehabilitation
begins. The application must contain the information and be in the form prescribed by
the office. The office may collect a fee for application of up to deleted text begin $5,000, based ondeleted text end new text begin 0.5
percent ofnew text end estimated qualified rehabilitation expenses, new text begin not to exceed $35,000, new text end to offset
costs associated with personnel and administrative expenses related to administering the
credit and preparing the economic impact report in subdivision 9. Application fees are
deposited in the account. The application must indicate if the application is for a credit
or a grant in lieu of the credit or a combination of the two and designate the taxpayer
qualifying for the credit or the recipient of the grant.
(b) Upon approving an application for credit, the office shall issue allocation
certificates that:
(1) verify eligibility for the credit or grant;
(2) state the amount of credit or grant anticipated with the project, with the credit
amount equal to 100 percent and the grant amount equal to 90 percent of the federal
credit anticipated in the application;
(3) state that the credit or grant allowed may increase or decrease if the federal
credit the project receives at the time it is placed in service is different than the amount
anticipated at the time the allocation certificate is issued; and
(4) state the fiscal year in which the credit or grant is allocated, and that the taxpayer
or grant recipient is entitled to receive the credit or grant at the time the project is placed
in service, provided that date is within three calendar years following the issuance of
the allocation certificate.
(c) The office, in consultation with the commissioner deleted text begin of revenuedeleted text end , shall determine
if the project is eligible for a credit or a grant under this section new text begin and must notify the
developer in writing of its determinationnew text end . Eligibility for the credit is subject to review
and audit by the commissioner deleted text begin of revenuedeleted text end .
(d) The federal credit recapture and repayment requirements under section 50 of the
Internal Revenue Code do not apply to the credit allowed under this section.
new text begin
(e) Any decision of the office under paragraph (c) may be challenged as a contested
case under chapter 14. The contested case proceeding must be initiated within 45 days of
the date of written notification by the office.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 30.
Minnesota Statutes 2012, section 290.0681, subdivision 4, is amended to read:
Subd. 4.
Credit certificatesnew text begin ; grantsnew text end .
(a)(1) The developer of a project for which the
office has issued an allocation certificate must notify the office when the project is placed
in service. Upon verifying that the project has been placed in service, and was allowed a
federal credit, the office must issue a credit certificate to the taxpayer designated in the
application or must issue a grant to the recipient designated in the application. The credit
certificate must state the amount of the credit.
(2) The credit amount equals the federal credit allowed for the project.
(3) The grant amount equals 90 percent of the federal credit allowed for the project.
(b) The recipient of a credit certificate may assign the certificate to another taxpayer,
which is then allowed the credit under this section or section 297I.20, subdivision 3. new text begin An
assignment is not valid unless the assignee notifies the commissioner within 30 days of the
date that the assignment is made. new text end The commissioner shall prescribe the forms necessary
for new text begin notifying the commissioner of the assignment of a credit certificate and for new text end claiming
a credit by assignment.
new text begin
(c) Credits passed through to partners, members, shareholders, or owners pursuant to
subdivision 5 are not an assignment of a credit certificate under this subdivision.
new text end
new text begin
(d) A grant agreement between the office and the recipient of a grant may allow the
grant to be issued to another individual or entity.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 31.
Minnesota Statutes 2012, section 290.0681, subdivision 5, is amended to read:
Subd. 5.
Partnerships; multiple owners.
Credits granted to a partnership, a limited
liability company taxed as a partnership, S corporation, or multiple owners of property
are passed through to the partners, members, shareholders, or owners, respectively, pro
rata to each partner, member, shareholder, or owner based on their share of the entity's
assets or as specially allocated in their organizational documentsnew text begin or any other executed
agreementnew text end , as of the last day of the taxable year.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 32.
new text begin
[290.0693] VETERANS JOBS TAX CREDIT.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
(a) For the purposes of this section, the following terms
have the meanings given.
new text end
new text begin
(b) "Date of hire" means the day that the qualified employee begins performing
services as an employee of the qualified employer.
new text end
new text begin
(c) "Disabled veteran" is a veteran who has had a service-connected disability rating
as adjudicated by the United States Veterans Administration, or by the retirement board of
one of the several branches of the armed forces.
new text end
new text begin
(d)(1) "Qualified employee" means an employee as defined in section 290.92,
subdivision 1, who meets the following criteria:
new text end
new text begin
(i) the employee is a resident of Minnesota on the date of hire;
new text end
new text begin
(ii) the employee is paid wages as defined in section 290.92, subdivision 1; and
new text end
new text begin
(iii) the employee's wages are attributable to Minnesota under section 290.191,
subdivision 12;
new text end
new text begin
(2) Qualified employee does not include:
new text end
new text begin
(i) any employee who bears any of the relationships to the employer described in
subparagraphs (A) to (G) of section 152(d)(2) of the Internal Revenue Code;
new text end
new text begin
(ii) if the employer is a corporation, an employee who owns, directly or indirectly,
more than 50 percent in value of the outstanding stock of the corporation, or if the
employer is an entity other than a corporation, an employee who owns, directly or
indirectly, more than 50 percent of the capital and profits interests in the entity, as
determined with the application of section 267(c) of the Internal Revenue Code; or
new text end
new text begin
(iii) if the employer is an estate or trust, any employee who is a fiduciary of the estate
or trust, or is an individual who bears any of the relationships described in subparagraphs
(A) to (G) of section 152(d)(2) of the Internal Revenue Code to a grantor, beneficiary,
or fiduciary of the estate or trust.
new text end
new text begin
(e) "Qualified employer" means an employer that hired a disabled veteran, or an
unemployed veteran as a qualified employee.
new text end
new text begin
(f) "Unemployed veteran" is a veteran who:
new text end
new text begin
(1) received unemployment compensation under state or federal law at any time
during the two-year period prior to the date of hire; and
new text end
new text begin
(2) was unemployed on the date of hire.
new text end
new text begin
(g) "Veteran" has the meaning given in section 197.447.
new text end
new text begin Subd. 2. new text end
new text begin Credit allowed. new text end
new text begin
(a) A qualified employer is allowed a credit for each of
the following individuals that the qualified employer hires as a qualified employee during
taxable years beginning after December 31, 2012, and before January 1, 2017:
new text end
new text begin
(1) a disabled veteran; or
new text end
new text begin
(2) an unemployed veteran.
new text end
new text begin
(b) Subject to the requirements of this section, there is no limit to the number of
credits that a qualified employer may claim under this section during a taxable year.
new text end
new text begin
(c) A qualified employer may claim the credit either for the taxable year in which
the qualified employee is hired, or in the next taxable year, but may claim the credit only
once for each qualified employee.
new text end
new text begin Subd. 3. new text end
new text begin Credit amount for hiring certain veterans. new text end
new text begin
(a) A qualified employer who
is required to file a return under section 289A.08, subdivision 1, 2, or 3, is allowed a credit
against the tax imposed by this chapter as determined under this subdivision.
new text end
new text begin
(b) For hiring a disabled veteran as a qualified employee, the credit equals ten
percent of the wages paid to the qualified employee during the taxable year, but the
amount of the credit shall not exceed $1,200.
new text end
new text begin
(c) For hiring an unemployed veteran as a qualified employee, the credit equals
ten percent of the wages paid to the qualified employee during the taxable year, but the
amount of the credit shall not exceed $600.
new text end
new text begin
(d) The credit is limited to the liability for tax under this chapter for the taxable year.
new text end
new text begin
(e) A qualified employer is allowed only one of the credits authorized under
paragraphs (b) and (c) upon hiring a disabled veteran, or an unemployed veteran as a
qualified employee.
new text end
new text begin
(f) A qualified employer may not claim a credit under this subdivision for hiring
a disabled veteran, or an unemployed veteran as a qualified employee if the qualified
employer currently employs or has previously employed the disabled veteran, or
unemployed veteran.
new text end
new text begin Subd. 4. new text end
new text begin Flow-through entities. new text end
new text begin
Credits granted to a partnership, limited liability
company taxed as a partnership, S corporation, or multiple owners of a business are passed
through to the partners, members, shareholders, or owners, respectively, pro rata to each
partner, member, shareholder, or owner based on their share of the entity's assets or as
specially allocated in their organizational documents, as of the last day of the taxable year.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after
December 31, 2012.
new text end
Sec. 33.
Minnesota Statutes 2012, section 290.091, subdivision 2, is amended to read:
Subd. 2.
Definitions.
For purposes of the tax imposed by this section, the following
terms have the meanings given:
(a) "Alternative minimum taxable income" means the sum of the following for
the taxable year:
(1) the taxpayer's federal alternative minimum taxable income as defined in section
55(b)(2) of the Internal Revenue Code;
(2) the taxpayer's itemized deductions allowed in computing federal alternative
minimum taxable income, but excluding:
deleted text begin
(i) the charitable contribution deduction under section 170 of the Internal Revenue
Code;
deleted text end
deleted text begin (ii)deleted text end new text begin (i)new text end the medical expense deduction;
deleted text begin (iii)deleted text end new text begin (ii)new text end the casualty, theft, and disaster loss deduction; and
deleted text begin (iv)deleted text end new text begin (iii)new text end the impairment-related work expenses of a disabled person;
(3) for depletion allowances computed under section 613A(c) of the Internal
Revenue Code, with respect to each property (as defined in section 614 of the Internal
Revenue Code), to the extent not included in federal alternative minimum taxable income,
the excess of the deduction for depletion allowable under section 611 of the Internal
Revenue Code for the taxable year over the adjusted basis of the property at the end of the
taxable year (determined without regard to the depletion deduction for the taxable year);
(4) to the extent not included in federal alternative minimum taxable income, the
amount of the tax preference for intangible drilling cost under section 57(a)(2) of the
Internal Revenue Code determined without regard to subparagraph (E);
(5) to the extent not included in federal alternative minimum taxable income, the
amount of interest income as provided by section 290.01, subdivision 19a, clause (1); and
(6) the amount of addition required by section 290.01, subdivision 19a, clauses deleted text begin (7)
to (9), (12), (13), and (16) to (18)deleted text end new text begin (7) to (9), (11), and (12)new text end ;
less the sum of the amounts determined under the following:
(1) interest income as defined in section 290.01, subdivision 19b, clause (1);
(2) an overpayment of state income tax as provided by section 290.01, subdivision
19b, clause (2), to the extent included in federal alternative minimum taxable income;
(3) the amount of investment interest paid or accrued within the taxable year on
indebtedness to the extent that the amount does not exceed net investment income, as
defined in section 163(d)(4) of the Internal Revenue Code. Interest does not include
amounts deducted in computing federal adjusted gross income;
(4) amounts subtracted from federal taxable income as provided by section 290.01,
subdivision 19b, clauses deleted text begin (6), (8) to (14), and (16)deleted text end new text begin (6) to (12), (14), and (18)new text end ; and
(5) the amount of the net operating loss allowed under section 290.095, subdivision
11, paragraph (c).
In the case of an estate or trust, alternative minimum taxable income must be
computed as provided in section 59(c) of the Internal Revenue Code.
(b) "Investment interest" means investment interest as defined in section 163(d)(3)
of the Internal Revenue Code.
(c) "Net minimum tax" means the minimum tax imposed by this section.
(d) "Regular tax" means the tax that would be imposed under this chapter (without
regard to this section and section 290.032), reduced by the sum of the nonrefundable
credits allowed under this chapter.
(e) "Tentative minimum tax" equals 6.4 percent of alternative minimum taxable
income after subtracting the exemption amount determined under subdivision 3.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after
December 31, 2012.
new text end
Sec. 34.
Minnesota Statutes 2012, section 290.0921, subdivision 3, is amended to read:
Subd. 3.
Alternative minimum taxable income.
"Alternative minimum taxable
income" is Minnesota net income as defined in section 290.01, subdivision 19, and
includes the adjustments and tax preference items in sections 56, 57, 58, and 59(d), (e),
(f), and (h) of the Internal Revenue Code. If a corporation files a separate company
Minnesota tax return, the minimum tax must be computed on a separate company basis.
If a corporation is part of a tax group filing a unitary return, the minimum tax must be
computed on a unitary basis. The following adjustments must be made.
(1) For purposes of the depreciation adjustments under section 56(a)(1) and
56(g)(4)(A) of the Internal Revenue Code, the basis for depreciable property placed in
service in a taxable year beginning before January 1, 1990, is the adjusted basis for federal
income tax purposes, including any modification made in a taxable year under section
290.01, subdivision 19e, or Minnesota Statutes 1986, section 290.09, subdivision 7,
paragraph (c).
For taxable years beginning after December 31, 2000, the amount of any remaining
modification made under section 290.01, subdivision 19e, or Minnesota Statutes 1986,
section 290.09, subdivision 7, paragraph (c), not previously deducted is a depreciation
allowance in the first taxable year after December 31, 2000.
(2) The portion of the depreciation deduction allowed for federal income tax
purposes under section 168(k) of the Internal Revenue Code that is required as an addition
under section 290.01, subdivision 19c, clause deleted text begin (15)deleted text end new text begin (12)new text end , is disallowed in determining
alternative minimum taxable income.
(3) The subtraction for depreciation allowed under section 290.01, subdivision
19d, clause deleted text begin (17)deleted text end new text begin (16)new text end , is allowed as a depreciation deduction in determining alternative
minimum taxable income.
(4) The alternative tax net operating loss deduction under sections 56(a)(4) and 56(d)
of the Internal Revenue Code does not apply.
(5) The special rule for certain dividends under section 56(g)(4)(C)(ii) of the Internal
Revenue Code does not apply.
deleted text begin
(6) The special rule for dividends from section 936 companies under section
56(g)(4)(C)(iii) does not apply.
deleted text end
deleted text begin (7)deleted text end new text begin (6)new text end The tax preference for depletion under section 57(a)(1) of the Internal
Revenue Code does not apply.
deleted text begin (8)deleted text end new text begin (7)new text end The tax preference for intangible drilling costs under section 57(a)(2) of the
Internal Revenue Code must be calculated without regard to subparagraph (E) and the
subtraction under section 290.01, subdivision 19d, clause (4).
deleted text begin (9)deleted text end new text begin (8)new text end The tax preference for tax exempt interest under section 57(a)(5) of the
Internal Revenue Code does not apply.
deleted text begin (10)deleted text end new text begin (9)new text end The tax preference for charitable contributions of appreciated property
under section 57(a)(6) of the Internal Revenue Code does not apply.
deleted text begin (11)deleted text end new text begin (10)new text end For purposes of calculating the tax preference for accelerated depreciation
or amortization on certain property placed in service before January 1, 1987, under section
57(a)(7) of the Internal Revenue Code, the deduction allowable for the taxable year is the
deduction allowed under section 290.01, subdivision 19e.
For taxable years beginning after December 31, 2000, the amount of any remaining
modification made under section 290.01, subdivision 19e, not previously deducted is a
depreciation or amortization allowance in the first taxable year after December 31, 2004.
deleted text begin (12)deleted text end new text begin (11)new text end For purposes of calculating the adjustment for adjusted current earnings
in section 56(g) of the Internal Revenue Code, the term "alternative minimum taxable
income" as it is used in section 56(g) of the Internal Revenue Code, means alternative
minimum taxable income as defined in this subdivision, determined without regard to the
adjustment for adjusted current earnings in section 56(g) of the Internal Revenue Code.
deleted text begin (13)deleted text end new text begin (12)new text end For purposes of determining the amount of adjusted current earnings
under section 56(g)(3) of the Internal Revenue Code, no adjustment shall be made under
section 56(g)(4) of the Internal Revenue Code with respect to (i) the amount of foreign
dividend gross-up subtracted as provided in section 290.01, subdivision 19d, clause (1),
(ii) the amount of refunds of income, excise, or franchise taxes subtracted as provided in
section 290.01, subdivision 19d, clause (9), or (iii) the amount of royalties, fees or other
like income subtracted as provided in section 290.01, subdivision 19d, clause (10).
deleted text begin (14)deleted text end new text begin (13)new text end Alternative minimum taxable income excludes the income from operating
in a job opportunity building zone as provided under section 469.317.
deleted text begin (15)deleted text end new text begin (14)new text end Alternative minimum taxable income excludes the income from operating
in a biotechnology and health sciences industry zone as provided under section 469.337.
Items of tax preference must not be reduced below zero as a result of the
modifications in this subdivision.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after
December 31, 2012.
new text end
Sec. 35.
Minnesota Statutes 2012, section 290.0922, subdivision 1, is amended to read:
Subdivision 1.
Imposition.
(a) In addition to the tax imposed by this chapter without
regard to this section, the franchise tax imposed on a corporation required to file under
section 289A.08, subdivision 3, other than a corporation treated as an "S" corporation
under section 290.9725 for the taxable year includes a tax equal to the following amounts:
| If the sum of the corporation's Minnesota property, payrolls, and sales or receipts is: |
the tax equals: |
||||||||
| deleted text begin less thandeleted text end |
deleted text begin
$ deleted text end |
deleted text begin
500,000 deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
0 deleted text end |
|||||
|
deleted text begin
$ deleted text end |
deleted text begin
500,000 deleted text end |
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to deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
999,999 deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
100 deleted text end |
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|
deleted text begin
$ deleted text end |
deleted text begin
1,000,000 deleted text end |
deleted text begin
to deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
4,999,999 deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
300 deleted text end |
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$ deleted text end |
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5,000,000 deleted text end |
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$ deleted text end |
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$ deleted text end |
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$ deleted text end |
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2,000 deleted text end |
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$ new text end |
new text begin
930,000 new text end |
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to new text end |
new text begin
$ new text end |
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1,869,999 new text end |
new text begin
$ new text end |
new text begin
190 new text end |
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|
new text begin
$ new text end |
new text begin
1,870,000 new text end |
new text begin
to new text end |
new text begin
$ new text end |
new text begin
9,339,999 new text end |
new text begin
$ new text end |
new text begin
560 new text end |
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|
new text begin
$ new text end |
new text begin
9,340,000 new text end |
new text begin
to new text end |
new text begin
$ new text end |
new text begin
18,679,999 new text end |
new text begin
$ new text end |
new text begin
1,870 new text end |
|||
|
new text begin
$ new text end |
new text begin
18,680,000 new text end |
new text begin
to new text end |
new text begin
$ new text end |
new text begin
37,359,999 new text end |
new text begin
$ new text end |
new text begin
3,740 new text end |
|||
|
new text begin
$ new text end |
new text begin
37,360,000 new text end |
new text begin
or new text end |
new text begin
more new text end |
new text begin
$ new text end |
new text begin
9,340 new text end |
||||
(b) A tax is imposed for each taxable year on a corporation required to file a return
under section 289A.12, subdivision 3, that is treated as an "S" corporation under section
290.9725 and on a partnership required to file a return under section 289A.12, subdivision
3, other than a partnership that derives over 80 percent of its income from farming. The
tax imposed under this paragraph is due on or before the due date of the return for the
taxpayer due under section 289A.18, subdivision 1. The commissioner shall prescribe
the return to be used for payment of this tax. The tax under this paragraph is equal to
the following amounts:
| If the sum of the S corporation's or partnership's Minnesota property, payrolls, and sales or receipts is: |
the tax equals: |
||||||||
|
deleted text begin
less than deleted text end |
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$ deleted text end |
deleted text begin
500,000 deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
0 deleted text end |
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|
deleted text begin
$ deleted text end |
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500,000 deleted text end |
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deleted text begin
$ deleted text end |
deleted text begin
999,999 deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
100 deleted text end |
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|
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$ deleted text end |
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1,000,000 deleted text end |
deleted text begin
to deleted text end |
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$ deleted text end |
deleted text begin
4,999,999 deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
300 deleted text end |
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|
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$ deleted text end |
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5,000,000 deleted text end |
deleted text begin
to deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
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deleted text begin
$ deleted text end |
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1,000 deleted text end |
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|
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$ deleted text end |
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to deleted text end |
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$ deleted text end |
deleted text begin
19,999,999 deleted text end |
deleted text begin
$ deleted text end |
deleted text begin
2,000 deleted text end |
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|
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less than new text end |
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new text begin
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new text begin
$ new text end |
new text begin
0 new text end |
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|
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$ new text end |
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930,000 new text end |
new text begin
to new text end |
new text begin
$ new text end |
new text begin
1,869,999 new text end |
new text begin
$ new text end |
new text begin
190 new text end |
|||
|
new text begin
$ new text end |
new text begin
1,870,000 new text end |
new text begin
to new text end |
new text begin
$ new text end |
new text begin
9,339,999 new text end |
new text begin
$ new text end |
new text begin
560 new text end |
|||
|
new text begin
$ new text end |
new text begin
9,340,000 new text end |
new text begin
to new text end |
new text begin
$ new text end |
new text begin
18,679,999 new text end |
new text begin
$ new text end |
new text begin
1,870 new text end |
|||
|
new text begin
$ new text end |
new text begin
18,680,000 new text end |
new text begin
to new text end |
new text begin
$ new text end |
new text begin
37,359,999 new text end |
new text begin
$ new text end |
new text begin
3,740 new text end |
|||
|
new text begin
$ new text end |
new text begin
37,360,000 new text end |
new text begin
or new text end |
new text begin
more new text end |
new text begin
$ new text end |
new text begin
9,340 new text end |
||||
new text begin
(c) The commissioner shall adjust the dollar amounts of both the tax and the property,
payrolls, and sales or receipts thresholds in paragraphs (a) and (b) by the percentage
determined pursuant to the provisions of section 1(f) of the Internal Revenue Code, except
that in section 1(f)(3)(B) the word "2012" must be substituted for the word "1992." For
2014, the commissioner shall determine the percentage change from the 12 months ending
on August 31, 2012, to the 12 months ending on August 31, 2013, and in each subsequent
year, from the 12 months ending on August 31, 2012, to the 12 months ending on August
31 of the year preceding the taxable year. The determination of the commissioner pursuant
to this subdivision is not a "rule" subject to the Administrative Procedure Act contained in
chapter 14. The tax amounts as adjusted must be rounded to the nearest $10 amount and
the threshold amounts must be adjusted to the nearest $10,000 amount. For tax amounts
that end in $5, the amount is rounded up to the nearest $10 amount and for the threshold
amounts that end in $5,000, the amount is rounded up to the nearest $10,000.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after
December 31, 2012.
new text end
Sec. 36.
Minnesota Statutes 2012, section 290.17, subdivision 4, is amended to read:
Subd. 4.
Unitary business principle.
(a) If a trade or business conducted wholly
within this state or partly within and partly without this state is part of a unitary business,
the entire income of the unitary business is subject to apportionment pursuant to section
290.191. Notwithstanding subdivision 2, paragraph (c), none of the income of a unitary
business is considered to be derived from any particular source and none may be allocated
to a particular place except as provided by the applicable apportionment formula. The
provisions of this subdivision do not apply to business income subject to subdivision 5,
income of an insurance company, or income of an investment company determined under
section 290.36.
(b) The term "unitary business" means business activities or operations which
result in a flow of value between them. The term may be applied within a single legal
entity or between multiple entities and without regard to whether each entity is a sole
proprietorship, a corporation, a partnership or a trust.
(c) Unity is presumed whenever there is unity of ownership, operation, and use,
evidenced by centralized management or executive force, centralized purchasing,
advertising, accounting, or other controlled interaction, but the absence of these
centralized activities will not necessarily evidence a nonunitary business. Unity is also
presumed when business activities or operations are of mutual benefit, dependent upon or
contributory to one another, either individually or as a group.
(d) Where a business operation conducted in Minnesota is owned by a business
entity that carries on business activity outside the state different in kind from that
conducted within this state, and the other business is conducted entirely outside the state, it
is presumed that the two business operations are unitary in nature, interrelated, connected,
and interdependent unless it can be shown to the contrary.
(e) Unity of ownership deleted text begin isdeleted text end new text begin doesnew text end not deleted text begin deemed todeleted text end exist when deleted text begin a corporation isdeleted text end new text begin two or
more corporations arenew text end involved unless deleted text begin that corporation is a member of a group of two or
more business entities anddeleted text end more than 50 percent of the voting stock of each deleted text begin member of
the groupdeleted text end new text begin corporationnew text end is directly or indirectly owned by a common owner or by common
owners, either corporate or noncorporate, or by one or more of the member corporations
of the group. For this purpose, the term "voting stock" shall include membership interests
of mutual insurance holding companies formed under section 66A.40.
(f) The net income and apportionment factors under section 290.191 or 290.20 of
foreign corporations and other foreign entities which are part of a unitary business shall
not be included in the net income or the apportionment factors of the unitary business. A
foreign corporation or other foreign entity which is new text begin not included on a combined report and
which is new text end required to file a return under this chapter shall file on a separate return basis.
deleted text begin The net income and apportionment factors under section 290.191 or 290.20 of foreign
operating corporations shall not be included in the net income or the apportionment
factors of the unitary business except as provided in paragraph (g).deleted text end new text begin The legislature intends
that the provisions of this paragraph are not severable from the provisions of section
290.01, subdivision 5, clauses (4) and (5), and if any of those provisions are found to be
unconstitutional, the provisions of this paragraph are void for the respective taxable years.
new text end
deleted text begin
(g) The adjusted net income of a foreign operating corporation shall be deemed to
be paid as a dividend on the last day of its taxable year to each shareholder thereof, in
proportion to each shareholder's ownership, with which such corporation is engaged in
a unitary business. Such deemed dividend shall be treated as a dividend under section
290.21, subdivision 4.
deleted text end
deleted text begin
Dividends actually paid by a foreign operating corporation to a corporate shareholder
which is a member of the same unitary business as the foreign operating corporation shall
be eliminated from the net income of the unitary business in preparing a combined report
for the unitary business. The adjusted net income of a foreign operating corporation
shall be its net income adjusted as follows:
deleted text end
deleted text begin
(1) any taxes paid or accrued to a foreign country, the commonwealth of Puerto
Rico, or a United States possession or political subdivision of any of the foregoing shall
be a deduction; and
deleted text end
deleted text begin
(2) the subtraction from federal taxable income for payments received from foreign
corporations or foreign operating corporations under section 290.01, subdivision 19d,
clause (10), shall not be allowed.
deleted text end
deleted text begin
If a foreign operating corporation incurs a net loss, neither income nor deduction from
that corporation shall be included in determining the net income of the unitary business.
deleted text end
deleted text begin (h)deleted text end new text begin (g)new text end For purposes of determining the net income of a unitary business and the
factors to be used in the apportionment of net income pursuant to section 290.191 or
290.20, there must be included only the income and apportionment factors of domestic
corporations or other domestic entities deleted text begin other than foreign operating corporationsdeleted text end that are
determined to be part of the unitary business pursuant to this subdivision, notwithstanding
that foreign corporations or other foreign entities might be included in the unitary business.
deleted text begin (i)deleted text end new text begin (h)new text end Deductions for expenses, interest, or taxes otherwise allowable under
this chapter that are connected with or allocable against dividends, deleted text begin deemed dividends
described deleted text end deleted text begin in paragraph (g),deleted text end or royalties, fees, or other like income described in section
290.01, subdivision 19d, clause (10), shall not be disallowed.
deleted text begin (j)deleted text end new text begin (i)new text end Each corporation or other entity, except a sole proprietorship, that is part of
a unitary business must file combined reports as the commissioner determines. On the
reports, all intercompany transactions between entities included pursuant to paragraph deleted text begin (h)
deleted text end new text begin (g)new text end must be eliminated and the entire net income of the unitary business determined in
accordance with this subdivision is apportioned among the entities by using each entity's
Minnesota factors for apportionment purposes in the numerators of the apportionment
formula and the total factors for apportionment purposes of all entities included pursuant
to paragraph deleted text begin (h)deleted text end new text begin (g)new text end in the denominators of the apportionment formula.new text begin All sales of the
unitary business made within Minnesota pursuant to section 290.191 or 290.20 must be
included on the separate combined report of a corporation that is a member of the unitary
business and is subject to the jurisdiction of this state to impose tax under this chapter.
new text end
deleted text begin (k)deleted text end new text begin (j)new text end If a corporation has been divested from a unitary business and is included in a
combined report for a fractional part of the common accounting period of the combined
report:
(1) its income includable in the combined report is its income incurred for that part
of the year determined by proration or separate accounting; and
(2) its sales, property, and payroll included in the apportionment formula must
be prorated or accounted for separately.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after
December 31, 2012.
new text end
Sec. 37.
Minnesota Statutes 2012, section 290.21, subdivision 4, is amended to read:
Subd. 4.
Dividends received from another corporation.
(a)(1) Eighty percent
of dividends received by a corporation during the taxable year from another corporation,
in which the recipient owns 20 percent or more of the stock, by vote and value, not
including stock described in section 1504(a)(4) of the Internal Revenue Code when the
corporate stock with respect to which dividends are paid does not constitute the stock in
trade of the taxpayer or would not be included in the inventory of the taxpayer, or does not
constitute property held by the taxpayer primarily for sale to customers in the ordinary
course of the taxpayer's trade or business, or when the trade or business of the taxpayer
does not consist principally of the holding of the stocks and the collection of the income
and gains therefrom; and
(2)(i) the remaining 20 percent of dividends if the dividends received are the stock in
an affiliated company transferred in an overall plan of reorganization and the dividend
is eliminated in consolidation under Treasury Department Regulation 1.1502-14(a), as
amended through December 31, 1989;
(ii) the remaining 20 percent of dividends if the dividends are received from a
corporation which is subject to tax under section 290.36 and which is a member of an
affiliated group of corporations as defined by the Internal Revenue Code and the dividend
is eliminated in consolidation under Treasury Department Regulation 1.1502-14(a), as
amended through December 31, 1989, or is deducted under an election under section
243(b) of the Internal Revenue Code; or
(iii) the remaining 20 percent of the dividends if the dividends are received from a
property and casualty insurer as defined under section 60A.60, subdivision 8, which is a
member of an affiliated group of corporations as defined by the Internal Revenue Code
and either: (A) the dividend is eliminated in consolidation under Treasury Regulation
1.1502-14(a), as amended through December 31, 1989; or (B) the dividend is deducted
under an election under section 243(b) of the Internal Revenue Code.
(b) Seventy percent of dividends received by a corporation during the taxable year
from another corporation in which the recipient owns less than 20 percent of the stock,
by vote or value, not including stock described in section 1504(a)(4) of the Internal
Revenue Code when the corporate stock with respect to which dividends are paid does not
constitute the stock in trade of the taxpayer, or does not constitute property held by the
taxpayer primarily for sale to customers in the ordinary course of the taxpayer's trade or
business, or when the trade or business of the taxpayer does not consist principally of the
holding of the stocks and the collection of income and gain therefrom.
(c) The dividend deduction provided in this subdivision shall be allowed only with
respect to dividends that are included in a corporation's Minnesota taxable net income
for the taxable year.
The dividend deduction provided in this subdivision does not apply to a dividend
from a corporation which, for the taxable year of the corporation in which the distribution
is made or for the next preceding taxable year of the corporation, is a corporation exempt
from tax under section 501 of the Internal Revenue Code.
new text begin
The dividend deduction provided in this subdivision does not apply to a dividend
received from a real estate investment trust, as defined in section 856 of the Internal
Revenue Code.
new text end
The dividend deduction provided in this subdivision applies to the amount of
regulated investment company dividends only to the extent determined under section
854(b) of the Internal Revenue Code.
The dividend deduction provided in this subdivision shall not be allowed with
respect to any dividend for which a deduction is not allowed under the provisions of
section 246(c) of the Internal Revenue Code.
(d) If dividends received by a corporation that does not have nexus with Minnesota
under the provisions of Public Law 86-272 are included as income on the return of
an affiliated corporation permitted or required to file a combined report under section
290.17, subdivision 4, or 290.34, subdivision 2, then for purposes of this subdivision the
determination as to whether the trade or business of the corporation consists principally
of the holding of stocks and the collection of income and gains therefrom shall be made
with reference to the trade or business of the affiliated corporation having a nexus with
Minnesota.
(e) The deduction provided by this subdivision does not apply if the dividends are
paid by a FSC as defined in section 922 of the Internal Revenue Code.
(f) If one or more of the members of the unitary group whose income is included on
the combined report received a dividend, the deduction under this subdivision for each
member of the unitary business required to file a return under this chapter is the product
of: (1) 100 percent of the dividends received by members of the group; (2) the percentage
allowed pursuant to paragraph (a) or (b); and (3) the percentage of the taxpayer's business
income apportionable to this state for the taxable year under section 290.191 or 290.20.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after
December 31, 2012.
new text end
Sec. 38.
Minnesota Statutes 2012, section 290A.03, subdivision 15, as amended by
Laws 2013, chapter 3, section 5, is amended to read:
Subd. 15.
Internal Revenue Code.
deleted text begin For taxable years beginning before January 1,
2012, and after December 31, 2012,deleted text end "Internal Revenue Code" means the Internal Revenue
Code of 1986, as amended through deleted text begin April 14, 2011; and for taxable years beginning after
December 31, 2011, and before January 1, 2013, "Internal Revenue Code" means the
Internal Revenue Code of 1986, as amended throughdeleted text end January 3, 2013.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for property tax refunds based on
property taxes payable after December 31, 2013, and rent paid after December 31, 2012.
new text end
Sec. 39.
Minnesota Statutes 2012, section 298.01, subdivision 3b, is amended to read:
Subd. 3b.
Deductions.
(a) For purposes of determining taxable income under
subdivision 3, the deductions from gross income include only those expenses necessary
to convert raw ores to marketable quality. Such expenses include costs associated with
refinement but do not include expenses such as transportation, stockpiling, marketing, or
marine insurance that are incurred after marketable ores are produced, unless the expenses
are included in gross income. The allowable deductions from a mine or plant that mines
and produces more than one mineral, metal, or energy resource must be determined
separately for the purposes of computing the deduction in section 290.01, subdivision 19c,
clause deleted text begin (9)deleted text end new text begin (8)new text end . These deductions may be combined on one occupation tax return to arrive
at the deduction from gross income for all production.
(b) The provisions of section 290.01, subdivisions 19c, clauses (6) and (9), and 19d,
clauses (7) and (11), are not used to determine taxable income.
Sec. 40. new text begin ESTIMATED TAXES; EXCEPTIONS.
new text end
new text begin
No addition to tax, penalties, or interest may be made under Minnesota Statutes,
section 289A.25, for any period before September 15, 2013, with respect to an
underpayment of estimated tax, to the extent that the underpayment was created or
increased by the increase in income tax rates under this article.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after
December 31, 2012.
new text end
Sec. 41. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2012, sections 290.01, subdivision 6b; 290.06, subdivision 22a;
290.0672; and 290.0921, subdivision 7,
new text end
new text begin
are repealed.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after
December 31, 2012.
new text end
ARTICLE 7
ESTATE AND GIFT TAXES
Section 1.
Minnesota Statutes 2012, section 289A.10, subdivision 1, is amended to read:
Subdivision 1.
Return required.
In the case of a decedent who has an interest in
property with a situs in Minnesota, the personal representative must submit a Minnesota
estate tax return to the commissioner, on a form prescribed by the commissioner, if:
(1) a federal estate tax return is required to be filed; or
(2) the new text begin sum of the new text end federal gross estatenew text begin and federal adjusted taxable gifts made within
three years of the date of the decedent's death new text end exceeds $1,000,000.
The return must contain a computation of the Minnesota estate tax due. The return
must be signed by the personal representative.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for estates of decedents dying after
December 31, 2012.
new text end
Sec. 2.
Minnesota Statutes 2012, section 291.005, subdivision 1, is amended to read:
Subdivision 1.
Scope.
Unless the context otherwise clearly requires, the following
terms used in this chapter shall have the following meanings:
(1) "Commissioner" means the commissioner of revenue or any person to whom the
commissioner has delegated functions under this chapter.
(2) "Federal gross estate" means the gross estate of a decedent as required to be valued
and otherwise determined for federal estate tax purposes under the Internal Revenue Code.
(3) "Internal Revenue Code" means the United States Internal Revenue Code of
1986, as amended through deleted text begin April 14, 2011deleted text end new text begin January 3, 2013new text end , but without regard to the
provisions of deleted text begin sections 501 and 901 of Public Law 107-16, as amended by Public Law
111-312, and section 301(c) of Public Law 111-312deleted text end new text begin section 2011, paragraph (f), of the
Internal Revenue Codenew text end .
(4) "Minnesota adjusted taxable estate" means federal adjusted taxable estate as
defined by section 2011(b)(3) of the Internal Revenue Code, plus
(i) the amount of deduction for state death taxes allowed under section 2058 of the
Internal Revenue Code;
new text begin (ii) the amount of taxable gifts, as defined in section 292.16, and made by the
decedent within three years of the decedent's date of death; new text end less
deleted text begin (ii)deleted text end new text begin (iii)new text end (A) the value of qualified small business property under section 291.03,
subdivision 9, and the value of qualified farm property under section 291.03, subdivision
10, or (B) $4,000,000, whichever is less.
(5) "Minnesota gross estate" means the federal gross estate of a decedent after (a)
excluding therefrom any property included therein which has its situs outside Minnesota,
and (b) including therein any property omitted from the federal gross estate which is
includable therein, has its situs in Minnesota, and was not disclosed to federal taxing
authorities.
(6) "Nonresident decedent" means an individual whose domicile at the time of
death was not in Minnesota.
(7) "Personal representative" means the executor, administrator or other person
appointed by the court to administer and dispose of the property of the decedent. If there
is no executor, administrator or other person appointed, qualified, and acting within this
state, then any person in actual or constructive possession of any property having a situs in
this state which is included in the federal gross estate of the decedent shall be deemed
to be a personal representative to the extent of the property and the Minnesota estate tax
due with respect to the property.
(8) "Resident decedent" means an individual whose domicile at the time of death
was in Minnesota.
(9) "Situs of property" means, with respect tonew text begin :
new text end
new text begin (i)new text end real property, the state or country in which it is located; deleted text begin with respect todeleted text end
new text begin (ii) new text end tangible personal property, the state or country in which it was normally kept or
located at the time of the decedent's deathnew text begin or for a gift of tangible personal property within
three years of death, the state or country in which it was normally kept or located when
the gift was executednew text end ; and deleted text begin with respect to
deleted text end
new text begin (iii)new text end intangible personal property, the state or country in which the decedent was
domiciled at deathnew text begin or for a gift of intangible personal property within three years of death,
the state or country in which the decedent was domiciled when the gift was executednew text end .
new text begin
For a nonresident decedent with an ownership interest in a pass-through entity
with assets that include real or tangible personal property, situs of the real or tangible
personal property is determined as if the pass-through entity does not exist and the real
or tangible personal property is personally owned by the decedent. If the pass-through
entity is owned by a person or persons in addition to the decedent, ownership of the
property is attributed to the decedent in proportion to the decedent's capital ownership
share of the pass-through entity.
new text end
new text begin
(10) "Pass-through entity" includes the following:
new text end
new text begin
(i) an entity electing S corporation status under section 1362 of the Internal Revenue
Code;
new text end
new text begin
(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;
new text end
new text begin
(iii) a single-member limited liability company or similar entity, regardless of
whether it is taxed as an association or is disregarded for federal income tax purposes
under Code of Federal Regulations, title 26, section 301.7701-3; or
new text end
new text begin
(iv) a trust to the extent the property is includible in the decedent's federal gross estate.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for decedents dying after December
31, 2012.
new text end
Sec. 3.
Minnesota Statutes 2012, section 291.03, subdivision 1, is amended to read:
Subdivision 1.
Tax amount.
(a) The tax imposed shall be an amount equal to the
proportion of the maximum credit for state death taxes computed under section 2011 of
the Internal Revenue Code, but using Minnesota adjusted taxable estate instead of federal
adjusted taxable estate, as the Minnesota gross estate bears to the value of the federal
gross estate.new text begin The tax is reduced by:
new text end
new text begin
(1) the gift tax paid by the decedent under section 292.17 on gifts included in the
Minnesota adjusted gross estate and not subtracted as qualified farm or small business
property; and
new text end
new text begin
(2) any credit allowed under subdivision 1c.
new text end
(b) The tax determined under this subdivision must not be greater than the sum of
the following amounts multiplied by a fraction, the numerator of which is the Minnesota
gross estate and the denominator of which is the federal gross estate:
(1) the rates and brackets under section 2001(c) of the Internal Revenue Code
multiplied by the sum of:
(i) the taxable estate, as defined under section 2051 of the Internal Revenue Code; plus
(ii) adjusted taxable gifts, as defined in section 2001(b) of the Internal Revenue
Code; less
(iii) the lesser of (A) the sum of the value of qualified small business property
under subdivision 9, and the value of qualified farm property under subdivision 10, or
(B) $4,000,000; less
(2) the amount of tax allowed under section 2001(b)(2) of the Internal Revenue
Code; and less
(3) the federal credit allowed under section 2010 of the Internal Revenue Code.
(c) For purposes of this subdivision, "Internal Revenue Code" means the Internal
Revenue Code of 1986, as amended through December 31, 2000.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for decedents dying after December
31, 2012.
new text end
Sec. 4.
Minnesota Statutes 2012, section 291.03, is amended by adding a subdivision
to read:
new text begin Subd. 1c. new text end
new text begin Nonresident decedent tax credit. new text end
new text begin
(a) The estate of a nonresident
decedent that is subject to tax under this chapter on the value of Minnesota situs property
held in a pass-through entity is allowed a credit against the tax due under this section
equal to the lesser of:
new text end
new text begin
(1) the amount of estate or inheritance tax paid to another state that is attributable to
the Minnesota situs property held in the pass-through entity; or
new text end
new text begin
(2) the amount of tax paid under this section attributable to the Minnesota situs
property held in the pass-through entity.
new text end
new text begin
(b) The amount of tax attributable to the Minnesota situs property held in the
pass-through entity must be determined by the increase in the estate or inheritance tax that
results from including the market value of the property in the estate or treating the value
as a taxable inheritance to the recipient of the property.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for decedents dying after December
31, 2012.
new text end
Sec. 5.
Minnesota Statutes 2012, section 291.03, subdivision 8, is amended to read:
Subd. 8.
Definitions.
(a) For purposes of this section, the following terms have the
meanings given in this subdivision.
(b) "Family member" means a family member as defined in section 2032A(e)(2) of
the Internal Revenue Codenew text begin , or a trust whose present beneficiaries are all family members
as defined in section 2032A(e)(2) of the Internal Revenue Codenew text end .
(c) "Qualified heir" means a family member who acquired qualified property deleted text begin from
deleted text end new text begin upon the death ofnew text end the decedent and satisfies the requirement under subdivision 9, clause
deleted text begin (6)deleted text end new text begin (7)new text end , or subdivision 10, clause deleted text begin (4)deleted text end new text begin (5)new text end , for the property.
(d) "Qualified property" means qualified small business property under subdivision
9 and qualified farm property under subdivision 10.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for estates of decedents
dying after June 30, 2011.
new text end
Sec. 6.
Minnesota Statutes 2012, section 291.03, subdivision 9, is amended to read:
Subd. 9.
Qualified small business property.
Property satisfying all of the following
requirements is qualified small business property:
(1) The value of the property was included in the federal adjusted taxable estate.
(2) The property consists of the assets of a trade or business or shares of stock or
other ownership interests in a corporation or other entity engaged in a trade or business.
deleted text begin The decedent or the decedent's spouse must have materially participated in the trade or
business within the meaning of section 469 of the Internal Revenue Code during the
taxable year that ended before the date of the decedent's death.deleted text end Shares of stock in a
corporation or an ownership interest in another type of entity do not qualify under this
subdivision if the shares or ownership interests are traded on a public stock exchange at
any time during the three-year period ending on the decedent's date of death.new text begin For purposes
of this subdivision, an ownership interest includes the interest the decedent is deemed to
own under sections 2036, 2037, and 2038 of the Internal Revenue Code.
new text end
(3) new text begin During the taxable year that ended before the decedent's death, the trade or
business must not have been a passive activity within the meaning of section 469(c) of the
Internal Revenue Code, and the decedent or the decedent's spouse must have materially
participated in the trade or business within the meaning of section 469(h) of the Internal
Revenue Code, excluding section 469(h)(3) of the Internal Revenue Code and any other
provision provided by United States Treasury Department regulation that substitutes
material participation in prior taxable years for material participation in the taxable year
that ended before the decedent's death.
new text end
new text begin (4) new text end The gross annual sales of the trade or business were $10,000,000 or less for the
last taxable year that ended before the date of the death of the decedent.
deleted text begin (4)deleted text end new text begin (5)new text end The property does not consist of cash deleted text begin ordeleted text end new text begin ,new text end cash equivalentsnew text begin , publicly traded
securities, or assets not used in the operation of the trade or businessnew text end . For property
consisting of shares of stock or other ownership interests in an entity, the deleted text begin amountdeleted text end new text begin valuenew text end of
cash deleted text begin ordeleted text end new text begin ,new text end cash equivalentsnew text begin , publicly traded securities, or assets not used in the operation of
the trade or businessnew text end held by the corporation or other entity must be deducted from the
value of the property qualifying under this subdivision in proportion to the decedent's
share of ownership of the entity on the date of death.
deleted text begin (5)deleted text end new text begin (6)new text end The decedent continuously owned the propertynew text begin , including property the
decedent is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue
Code,new text end for the three-year period ending on the date of death of the decedent.new text begin In the case of
a sole proprietor, if the property replaced similar property within the three-year period,
the replacement property will be treated as having been owned for the three-year period
ending on the date of death of the decedent.
new text end
deleted text begin
(6) A family member continuously uses the property in the operation of the trade or
business for three years following the date of death of the decedent.
deleted text end
(7) new text begin For three years following the date of death of the decedent, the trade or business
is not a passive activity within the meaning of section 469(c) of the Internal Revenue Code,
and a family member materially participates in the operation of the trade or business within
the meaning of section 469(h) of the Internal Revenue Code, excluding section 469(h)(3)
of the Internal Revenue Code and any other provision provided by United States Treasury
Department regulation that substitutes material participation in prior taxable years for
material participation in the three years following the date of death of the decedent.
new text end
new text begin (8) new text end The estate and the qualified heir elect to treat the property as qualified small
business property and agree, in the form prescribed by the commissioner, to pay the
recapture tax under subdivision 11, if applicable.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for estates of decedents
dying after June 30, 2011.
new text end
Sec. 7.
Minnesota Statutes 2012, section 291.03, subdivision 10, is amended to read:
Subd. 10.
Qualified farm property.
Property satisfying all of the following
requirements is qualified farm property:
(1) The value of the property was included in the federal adjusted taxable estate.
(2) The property consists of deleted text begin a farm meeting the requirements ofdeleted text end new text begin agricultural land as
defined in section 500.24, subdivision 2, paragraph (g), and is owned by a person or entity
that is not excluded from owning agricultural land by new text end section 500.24deleted text begin , and was classified
for property tax purposes as the homestead of the decedent or the decedent's spouse or
both under section 273.124, and as class 2a property under section 273.13, subdivision 23deleted text end .
(3) new text begin For property taxes payable in the taxable year of decedent's death, the property is
classified as class 2a property under section 273.13, subdivision 23, and is classified as
agricultural homestead, agricultural relative homestead, or special agricultural homestead
under section 273.124.
new text end
new text begin (4) new text end The decedent continuously owned the propertynew text begin , including property the decedent
is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code,new text end for
the three-year period ending on the date of death of the decedentnew text begin either by ownership of
the agricultural land or pursuant to holding an interest in an entity that is not excluded
from owning agricultural land under section 500.24new text end .
deleted text begin (4) A family member continuously uses the property in the operation of the trade or
businessdeleted text end new text begin (5) The property is classified for property tax purposes as class 2a property under
section 273.13, subdivision 23,new text end for three years following the date of death of the decedent.
deleted text begin (5)deleted text end new text begin (6) new text end The estate and the qualified heir elect to treat the property as qualified farm
property and agree, in a form prescribed by the commissioner, to pay the recapture tax
under subdivision 11, if applicable.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for estates of decedents
dying after June 30, 2011.
new text end
Sec. 8.
Minnesota Statutes 2012, section 291.03, subdivision 11, is amended to read:
Subd. 11.
Recapture tax.
(a) If, within three years after the decedent's death and
before the death of the qualified heir, the qualified heir disposes of any interest in the
qualified property, other than by a disposition to a family member, or a family member
ceases to deleted text begin use the qualified property which was acquired or passed from the decedent
deleted text end new text begin satisfy the requirement under subdivision 9, clause (7); or 10, clause (5)new text end , an additional
estate tax is imposed on the property.new text begin In the case of a sole proprietor, if the qualified heir
replaces qualified small business property excluded under subdivision 9 with similar
property, then the qualified heir will not be treated as having disposed of an interest in the
qualified property.
new text end
(b) The amount of the additional tax equals the amount of the exclusion claimed by
the estate under subdivision 8, paragraph (d), multiplied by 16 percent.
(c) The additional tax under this subdivision is due on the day which is six months
after the date of the disposition or cessation in paragraph (a).
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for estates of decedents
dying after June 30, 2011.
new text end
Sec. 9.
new text begin
[292.16] DEFINITIONS.
new text end
new text begin
(a) For purposes of this chapter, the following definitions apply.
new text end
new text begin
(b) The definitions of terms defined in section 291.005 apply.
new text end
new text begin
(c) "Resident" has the meaning given in section 290.01.
new text end
new text begin
(d) "Taxable gifts" means:
new text end
new text begin
(1) the transfers by gift which are included in taxable gifts for federal gift tax
purposes under the following sections of the Internal Revenue Code:
new text end
new text begin
(i) section 2503;
new text end
new text begin
(ii) sections 2511 to 2514; and
new text end
new text begin
(iii) sections 2516 to 2519; less
new text end
new text begin
(2) the deductions allowed in sections 2522 to 2524 of the Internal Revenue Code.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable gifts made after June
30, 2013.
new text end
Sec. 10.
new text begin
[292.17] GIFT TAX.
new text end
new text begin Subdivision 1. new text end
new text begin Imposition. new text end
new text begin
(a) A tax is imposed on the transfer of property by gift
by any individual resident or nonresident in an amount equal to ten percent of the amount
of the taxable gift.
new text end
new text begin
(b) The donor is liable for payment of the tax. If the gift tax is not paid when due,
the donee of any gift is personally liable for the tax to the extent of the value of the gift.
new text end
new text begin Subd. 2. new text end
new text begin Lifetime credit. new text end
new text begin
A credit is allowed against the tax imposed under this
section equal to $100,000. This credit applies to the cumulative amount of taxable gifts
made by the donor during the donor's lifetime.
new text end
new text begin Subd. 3. new text end
new text begin Out-of-state gifts. new text end
new text begin
Taxable gifts exclude the transfer of:
new text end
new text begin
(1) real property located outside of this state;
new text end
new text begin
(2) tangible personal property that was normally kept at a location outside of the
state on the date the gift was executed; and
new text end
new text begin
(3) intangible personal property made by an individual who is not a resident.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable gifts made after June
30, 2013.
new text end
Sec. 11.
new text begin
[292.18] RETURNS.
new text end
new text begin
(a) Any individual who makes a taxable gift during the taxable year shall file a gift
tax return in the form and manner prescribed by the commissioner.
new text end
new text begin
(b) If the donor dies before filing the return, the executor of the donor's will or
the administrator of the donor's estate shall file the return. If the donor becomes legally
incompetent before filing the return, the guardian or conservator shall file the return.
new text end
new text begin
(c) The return must include:
new text end
new text begin
(1) each gift made during the calendar year which is to be included in computing the
taxable gifts;
new text end
new text begin
(2) the deductions claimed and allowable under section 292.16, paragraph (d),
clause (2);
new text end
new text begin
(3) a description of the gift, and the donee's name, address, and Social Security
number;
new text end
new text begin
(4) the fair market value of gifts not made in money; and
new text end
new text begin
(5) any other information the commissioner requires to administer the gift tax.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable gifts made after June
30, 2013.
new text end
Sec. 12.
new text begin
[292.19] FILING REQUIREMENTS.
new text end
new text begin
Gift tax returns must be filed by the April 15 following the close of the calendar
year, except if a gift is made during the calendar year in which the donor dies, the return
for the donor must be filed by the last date, including extensions, for filing the gift tax
return for federal gift tax purposes for the donor.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable gifts made after June
30, 2013.
new text end
Sec. 13.
new text begin
[292.20] APPRAISAL OF PROPERTY; DECLARATION BY DONOR.
new text end
new text begin
The commissioner may require the donor or the donee to show the property subject to
the tax under section 292.17 to the commissioner upon demand and may employ a suitable
person to appraise the property. The donor shall submit a declaration, in a form prescribed
by the commissioner and including any certification required by the commissioner, that the
property shown by the donor on the gift tax return includes all of the property transferred by
gift for the calendar year and not deductible under section 292.16, paragraph (d), clause (2).
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable gifts made after June
30, 2013.
new text end
Sec. 14.
new text begin
[292.21] ADMINISTRATIVE PROVISIONS.
new text end
new text begin Subdivision 1. new text end
new text begin Payment of tax; penalty for late payment. new text end
new text begin
The tax imposed under
section 292.17 is due and payable to the commissioner by the April 15 following the close
of the calendar year during which the gift was made. The return required under section
292.19 must be included with the payment. If a taxable gift is made during the calendar
year in which the donor dies, the due date is the last date, including extensions, for filing
the gift tax return for federal gift tax purposes for the donor. If any person fails to pay the
tax due within the time specified under this section, a penalty applies equal to ten percent
of the amount due and unpaid or $100, whichever is greater. The unpaid tax and penalty
bear interest at the rate under section 270C.40 from the due date of the return.
new text end
new text begin Subd. 2. new text end
new text begin Extensions. new text end
new text begin
The commissioner may, for good cause, extend the time for
filing a gift tax return, if a written request is filed with a tentative return accompanied by a
payment of the tax, which is estimated in the tentative return, on or before the last day for
filing the return. Any person to whom an extension is granted must pay, in addition to the
tax, interest at the rate under section 270C.40 from the date on which the tax would have
been due without the extension.
new text end
new text begin Subd. 3. new text end
new text begin Changes in federal gift tax. new text end
new text begin
If the amount of a taxpayer's taxable gifts
for federal gift tax purposes, as reported on the taxpayer's federal gift tax return for any
calendar year, is changed or corrected by the Internal Revenue Service or other officer
of the United States or other competent authority, the taxpayer shall report the change or
correction in federal taxable gifts within 180 days after the final determination of the change
or correction, and concede the accuracy of the determination or provide a letter detailing
how the federal determination is incorrect or does not change the Minnesota gift tax. Any
taxpayer filing an amended federal gift tax return shall also file within 180 days an amended
return under this chapter and shall include any information the commissioner requires. The
time for filing the report or amended return may be extended by the commissioner upon due
cause shown. Notwithstanding any limitation of time in this chapter, if, upon examination,
the commissioner finds that the taxpayer is liable for the payment of an additional tax, the
commissioner shall, within a reasonable time from the receipt of the report or amended
return, notify the taxpayer of the amount of additional tax, together with interest computed
at the rate under section 270C.40 from the date when the original tax was due and payable.
Within 30 days of the mailing of the notice, the taxpayer shall pay the commissioner the
amount of the additional tax and interest. If, upon examination of the report or amended
return and related information, the commissioner finds that the taxpayer has overpaid the
tax due the state, the commissioner shall refund the overpayment to the taxpayer.
new text end
new text begin Subd. 4. new text end
new text begin Application of federal rules. new text end
new text begin
In administering the tax under this chapter,
the commissioner shall apply the provisions of sections 2701 to 2704 of the Internal
Revenue Code. The words "secretary or his delegate," as used in those sections of the
Internal Revenue Code, mean the commissioner.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable gifts made after June
30, 2013.
new text end
Sec. 15.
new text begin
[292.22] CREDIT AGAINST ESTATE TAX.
new text end
new text begin
A credit is allowed against the estate tax imposed under chapter 291 in the amount
of any tax imposed and paid under this chapter for a gift includable in the Minnesota
adjusted taxable estate of the donor under section 291.005.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable gifts made after June
30, 2013.
new text end
ARTICLE 8
SALES AND USE TAX; LOCAL SALES TAXES
Section 1.
Minnesota Statutes 2012, section 297A.61, subdivision 3, is amended to read:
Subd. 3.
Sale and purchase.
(a) "Sale" and "purchase" include, but are not limited
to, each of the transactions listed in this subdivision.
(b) Sale and purchase include:
(1) any transfer of title or possession, or both, of tangible personal property, whether
absolutely or conditionally, for a consideration in money or by exchange or barter; and
(2) the leasing of or the granting of a license to use or consume, for a consideration
in money or by exchange or barter, tangible personal property, other than a manufactured
home used for residential purposes for a continuous period of 30 days or more.
(c) Sale and purchase include the production, fabrication, printing, or processing of
tangible personal property for a consideration for consumers who furnish either directly or
indirectly the materials used in the production, fabrication, printing, or processing.
(d) Sale and purchase include the preparing for a consideration of food.
Notwithstanding section 297A.67, subdivision 2, taxable food includes, but is not limited
to, the following:
(1) prepared food sold by the retailer;
(2) soft drinks;
(3) candy;
(4) dietary supplements; and
(5) all food sold through vending machines.
(e) A sale and a purchase includes the furnishing for a consideration of electricity,
gas, water, or steam for use or consumption within this state.
(f) A sale and a purchase includes the transfer for a consideration of prewritten
computer software whether delivered electronically, by load and leave, or otherwise.
(g) A sale and a purchase includes the furnishing for a consideration of the following
services:
(1) the privilege of admission to places of amusement, recreational areas, or athletic
events,new text begin including seat licenses, the rental of box seats, suites, sky boxes, and similar
facilities in stadiums and arenasnew text end and the making available of amusement devices, tanning
facilities, reducing salons, steam baths, Turkish baths, health clubs, and spas or athletic
facilities;
(2) lodging and related services by a hotel, rooming house, resort, campground,
motel, or trailer camp, including furnishing the guest of the facility with access to
telecommunication services, and the granting of any similar license to use real property in
a specific facility, other than the renting or leasing of it for a continuous period of 30 days
or more under an enforceable written agreement that may not be terminated without prior
notice and including accommodations intermediary services provided in connection with
other services provided under this clause;
(3) nonresidential parking services, whether on a contractual, hourly, or other
periodic basis, except for parking at a meter;
(4) the granting of membership in a club, association, or other organization if:
(i) the club, association, or other organization makes available for the use of its
members sports and athletic facilities, without regard to whether a separate charge is
assessed for use of the facilities; and
(ii) use of the sports and athletic facility is not made available to the general public
on the same basis as it is made available to members.
Granting of membership means both onetime initiation fees and periodic membership
dues. Sports and athletic facilities include golf courses; tennis, racquetball, handball, and
squash courts; basketball and volleyball facilities; running tracks; exercise equipment;
swimming pools; and other similar athletic or sports facilities;
(5) delivery of aggregate materials by a third party, excluding delivery of aggregate
material used in road construction; and delivery of concrete block by a third party if the
delivery would be subject to the sales tax if provided by the seller of the concrete block; and
(6) services as provided in this clause:
(i) laundry and dry cleaning services including cleaning, pressing, repairing, altering,
and storing clothes, linen services and supply, cleaning and blocking hats, and carpet,
drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not
include services provided by coin operated facilities operated by the customer;
(ii) motor vehicle washing, waxing, and cleaning services, including services
provided by coin operated facilities operated by the customer, and rustproofing,
undercoating, and towing of motor vehicles;
(iii) building and residential cleaning, maintenance, and disinfecting services and
pest control and exterminating services;
(iv) detective, security, burglar, fire alarm, and armored car services; but not including
services performed within the jurisdiction they serve by off-duty licensed peace officers as
defined in section 626.84, subdivision 1, or services provided by a nonprofit organization
for monitoring and electronic surveillance of persons placed on in-home detention
pursuant to court order or under the direction of the Minnesota Department of Corrections;
(v) pet grooming services;
(vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting
and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor
plant care; tree, bush, shrub, and stump removal, except when performed as part of a land
clearing contract as defined in section 297A.68, subdivision 40; and tree trimming for
public utility lines. Services performed under a construction contract for the installation of
shrubbery, plants, sod, trees, bushes, and similar items are not taxable;
(vii) massages, except when provided by a licensed health care facility or
professional or upon written referral from a licensed health care facility or professional for
treatment of illness, injury, or disease; and
(viii) the furnishing of lodging, board, and care services for animals in kennels and
other similar arrangements, but excluding veterinary and horse boarding services.
In applying the provisions of this chapter, the terms "tangible personal property"
and "retail sale" include taxable services listed in clause (6), items (i) to (vi) and (viii),
and the provision of these taxable services, unless specifically provided otherwise.
Services performed by an employee for an employer are not taxable. Services performed
by a partnership or association for another partnership or association are not taxable if
one of the entities owns or controls more than 80 percent of the voting power of the
equity interest in the other entity. Services performed between members of an affiliated
group of corporations are not taxable. For purposes of the preceding sentence, "affiliated
group of corporations" means those entities that would be classified as members of an
affiliated group as defined under United States Code, title 26, section 1504, disregarding
the exclusions in section 1504(b).
For purposes of clause (5), "road construction" means construction of (1) public
roads, (2) cartways, and (3) private roads in townships located outside of the seven-county
metropolitan area up to the point of the emergency response location sign.
(h) A sale and a purchase includes the furnishing for a consideration of tangible
personal property or taxable services by the United States or any of its agencies or
instrumentalities, or the state of Minnesota, its agencies, instrumentalities, or political
subdivisions.
(i) A sale and a purchase includes the furnishing for a consideration of
telecommunications services, ancillary services associated with telecommunication
services, cable television services, and direct satellite services. Telecommunication
services include, but are not limited to, the following services, as defined in section
297A.669: air-to-ground radiotelephone service, mobile telecommunication service,
postpaid calling service, prepaid calling service, prepaid wireless calling service, and
private communication services. The services in this paragraph are taxed to the extent
allowed under federal law.
(j) A sale and a purchase includes the furnishing for a consideration of installation if
the installation charges would be subject to the sales tax if the installation were provided
by the seller of the item being installed.
(k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer
to a customer when (1) the vehicle is rented by the customer for a consideration, or (2)
the motor vehicle dealer is reimbursed pursuant to a service contract as defined in section
59B.02, subdivision 11.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales made after June 30, 2013.
new text end
Sec. 2.
Minnesota Statutes 2012, section 297A.61, subdivision 4, is amended to read:
Subd. 4.
Retail sale.
(a) A "retail sale" means any sale, lease, or rental for any
purpose, other than resale, sublease, or subrent of items by the purchaser in the normal
course of business as defined in subdivision 21.
(b) A sale of property used by the owner only by leasing it to others or by holding it
in an effort to lease it, and put to no use by the owner other than resale after the lease or
effort to lease, is a sale of property for resale.
(c) A sale of master computer software that is purchased and used to make copies for
sale or lease is a sale of property for resale.
(d) A sale of building materials, supplies, and equipment to owners, contractors,
subcontractors, or builders for the erection of buildings or the alteration, repair, or
improvement of real property is a retail sale in whatever quantity sold, whether the sale is
for purposes of resale in the form of real property or otherwise.
(e) A sale of carpeting, linoleum, or similar floor covering to a person who provides
for installation of the floor covering is a retail sale and not a sale for resale since a sale of
floor covering which includes installation is a contract for the improvement of real property.
(f) A sale of shrubbery, plants, sod, trees, and similar items to a person who provides
for installation of the items is a retail sale and not a sale for resale since a sale of
shrubbery, plants, sod, trees, and similar items that includes installation is a contract for
the improvement of real property.
(g) A sale of tangible personal property that is awarded as prizes is a retail sale and
is not considered a sale of property for resale.
(h) A sale of tangible personal property utilized or employed in the furnishing or
providing of services under subdivision 3, paragraph (g), clause (1), including, but not
limited to, property given as promotional items, is a retail sale and is not considered a
sale of property for resale.
(i) A sale of tangible personal property used in conducting lawful gambling under
chapter 349 or the State Lottery under chapter 349A, including, but not limited to, property
given as promotional items, is a retail sale and is not considered a sale of property for resale.
(j) new text begin Except as otherwise provided in this paragraph, new text end a sale of machines, equipment,
or devices that are used to furnish, provide, or dispense goods or services, including,
but not limited to, coin-operated devices, is a retail sale and is not considered a sale of
property for resale.new text begin A sale of coin-operated entertainment and amusement machines,
including, but not limited to, fortune-telling machines, cranes, foosball and pool tables,
video and pinball games, batting cages, rides, photo or video booths, and jukeboxes is a
sale of property for resale.
new text end
(k) In the case of a lease, a retail sale occurs (1) when an obligation to make a lease
payment becomes due under the terms of the agreement or the trade practices of the lessor
deleted text begin ordeleted text end new text begin ;new text end (2) in the case of a lease of a motor vehicle, as defined in section 297B.01, subdivision
11, but excluding vehicles with a manufacturer's gross vehicle weight rating greater than
10,000 pounds and rentals of vehicles for not more than 28 days, at the time the lease is
executednew text begin ; or (3) for rent-to-own or lease-to-own used vehicles where the lessee may
purchase or return the vehicle at any time without penalty, at the time each payment is
made under the terms of the agreementnew text end .
(l) In the case of a conditional sales contract, a retail sale occurs upon the transfer of
title or possession of the tangible personal property.
(m) A sale of a bundled transaction in which one or more of the products included
in the bundle is a taxable product is a retail sale, except that if one of the products
is a telecommunication service, ancillary service, Internet access, or audio or video
programming service, and the seller has maintained books and records identifying through
reasonable and verifiable standards the portions of the price that are attributable to the
distinct and separately identifiable products, then the products are not considered part of a
bundled transaction. For purposes of this paragraph:
(1) the books and records maintained by the seller must be maintained in the regular
course of business, and do not include books and records created and maintained by the
seller primarily for tax purposes;
(2) books and records maintained in the regular course of business include, but are
not limited to, financial statements, general ledgers, invoicing and billing systems and
reports, and reports for regulatory tariffs and other regulatory matters; and
(3) books and records are maintained primarily for tax purposes when the books
and records identify taxable and nontaxable portions of the price, but the seller maintains
other books and records that identify different prices attributable to the distinct products
included in the same bundled transaction.
new text begin
(n) A sale of motor vehicle repair paint and materials by a motor vehicle repair or
body shop business is a retail sale and the sales tax is imposed on the gross receipts from the
retail sale of the paint and materials. The motor vehicle repair or body shop that purchases
motor vehicle repair paint and motor vehicle repair materials for resale must either:
new text end
new text begin
(1) separately state each item of paint and each item of materials, and the sales price
of each, on the invoice to the purchaser; or
new text end
new text begin
(2) in order to calculate the sales price of the paint and materials, use a method
which estimates the amount and monetary value of the paint and materials used in
the repair of the motor vehicle by multiplying the number of labor hours by a rate of
consideration for the paint and materials used in the repair of the motor vehicle following
industry standard practices that fairly calculate the gross receipts from the retail sale of
the motor vehicle repair paint and motor vehicle repair materials. An industry standard
practice fairly calculates the gross receipts if the sales price of the paint and materials used
or consumed in the repair of a motor vehicle equals or exceeds the purchase price paid
by the motor vehicle repair or body shop business. Under this clause, the invoice must
either separately state the "paint and materials" as a single taxable item, or separately state
"paint" as a taxable item and "materials" as a taxable item. This clause does not apply to
wholesale transactions at an auto auction facility.
new text end
new text begin
(o) A payment made to a cooperative electric association or public utility as a
contribution in aid of construction is a contract for improvement to real property and
is not a retail sale.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after
June 30, 2013.
new text end
Sec. 3.
Minnesota Statutes 2012, section 297A.61, is amended by adding a subdivision
to read:
new text begin Subd. 49. new text end
new text begin Motor vehicle repair paint and motor vehicle repair materials. new text end
new text begin
"Motor
vehicle repair paint" means a substance composed of solid matter suspended in a liquid
medium and applied as a protective or decorative coating to the surface of a motor vehicle in
order to restore the motor vehicle to its original condition, and includes primer, body paint,
clear coat, and paint thinner used to paint motor vehicles, as defined in section 297B.01.
new text end
new text begin
"Motor vehicle repair materials" means items, other than motor vehicle repair paint
or motor vehicle parts, that become a part of a repaired motor vehicle or are consumed in
repairing the motor vehicle at retail, and include abrasives, battery water, body filler or
putty, bolts and nuts, brake fluid, buffing pads, chamois, cleaning compounds, degreasing
compounds, glaze, grease, grinding discs, hydraulic jack oil, lubricants, masking tape,
oxygen and acetylene, polishes, rags, razor blades, sandpaper, sanding discs, scuff pads,
sealer, solder, solvents, striping tape, tack cloth, thinner, waxes, and welding rods. Motor
vehicle repair materials do not include items that are not used directly on the motor vehicle,
such as floor dry that is used to clean the shop, or cleaning compounds and rags that are
used to clean tools, equipment, or the shop and are not used to clean the motor vehicle.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after
June 30, 2013.
new text end
Sec. 4.
Minnesota Statutes 2012, section 297A.64, subdivision 1, is amended to read:
Subdivision 1.
Tax imposed.
new text begin (a) new text end A tax is imposed on the lease or rental in this
state for not more than 28 days of a passenger automobile as defined in section 168.002,
subdivision 24, a van as defined in section 168.002, subdivision 40, or a pickup truck as
defined in section 168.002, subdivision 26. The rate of tax is deleted text begin 6.2deleted text end new text begin 9.2new text end percent of the sales
price. The tax applies whether or not the vehicle is licensed in the state.
new text begin
(b) The provisions of this subdivision do not apply to the vehicles of a nonprofit
corporation or similar entity, consisting of members who pay the organization for the
use of a motor vehicle, if the organization:
new text end
new text begin
(1) owns or leases a fleet of vehicles of the type subject to the tax under paragraph (a)
that are available to its members for use, priced on the basis of intervals of one hour or less;
new text end
new text begin
(2) parks its vehicles at unstaffed, self-service locations that are accessible to its
members at any time; and
new text end
new text begin
(3) maintains its vehicles, insures its vehicles on behalf of its members, and
purchases fuel for its fleet.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after
June 30, 2013.
new text end
Sec. 5.
Minnesota Statutes 2012, section 297A.64, subdivision 2, is amended to read:
Subd. 2.
Fee imposed.
(a) A fee equal to five percent of the sales price is imposed
on leases or rentals of vehicles subject to the tax under subdivision 1new text begin , paragraph (a)new text end . The
lessor on the invoice to the customer may designate the fee as "a fee imposed by the State
of Minnesota for the registration of rental cars."
(b) The provisions of this subdivision do not apply to the vehicles deleted text begin of a nonprofit
corporation or similar entity, consisting of individual or group members who pay the
organization for the use of a motor vehicle, if the organization:
deleted text end
deleted text begin
(1) owns or leases a fleet of vehicles of the type subject to the tax under subdivision 1
that are available to its members for use, priced on the basis of intervals of one hour or less;
deleted text end
deleted text begin
(2) parks its vehicles at unstaffed, self-service locations that are accessible at any
time of the day;
deleted text end
deleted text begin
(3) maintains its vehicles, insures its vehicles on behalf of its members, and
purchases fuel for its fleet; and
deleted text end
deleted text begin (4) does not charge usage rates that decline on a per unit basis, whether specified
based on distance or timedeleted text end new text begin exempt from the tax imposed under subdivision 1, paragraph (b)new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after
June 30, 2013.
new text end
Sec. 6.
Minnesota Statutes 2012, section 297A.66, is amended by adding a subdivision
to read:
new text begin Subd. 4a. new text end
new text begin Solicitor. new text end
new text begin
(a) "Solicitor," for purposes of subdivision 1, paragraph (a),
means a person, whether an independent contractor or other representative, who directly
or indirectly solicits business for the retailer.
new text end
new text begin
(b) A retailer is presumed to have a solicitor in this state if it enters into an agreement
with a resident under which the resident, for a commission or other consideration, directly
or indirectly refers potential customers, whether by a link on an Internet Web site, or
otherwise, to the seller. This paragraph only applies if the total gross receipts are at least
$10,000 in the 12-month period ending on the last day of the most recent calendar quarter
before the calendar quarter in which the sale is made. For purposes of this paragraph,
gross receipts means receipts from sales to customers located in the state who were
referred to the retailer by all residents with this type of agreement with the retailer.
new text end
new text begin
(c) The presumption under paragraph (b) may be rebutted by proof that the resident
with whom the seller has an agreement did not engage in any solicitation in the state
on behalf of the retailer that would satisfy the nexus requirement of the United States
Constitution during the 12-month period in question. Nothing in this section shall be
construed to narrow the scope of the terms affiliate, agent, salesperson, canvasser, or other
representative for purposes of subdivision 1, paragraph (a).
new text end
new text begin
(d) For purposes of this paragraph, "resident" includes an individual who is a
resident of this state, as defined in section 290.01, or a business that owns tangible
personal property located in this state or has one or more employees providing services for
the business in this state.
new text end
new text begin
(e) This subdivision does not apply to chapter 290 and does not expand or contract
the jurisdiction to tax a trade or business under chapter 290.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after
June 30, 2013.
new text end
Sec. 7.
Minnesota Statutes 2012, section 297A.668, is amended by adding a
subdivision to read:
new text begin Subd. 6a. new text end
new text begin Multiple points of use. new text end
new text begin
(a) Notwithstanding the provisions of subdivisions
2 to 5, a business purchaser that is not a holder of a direct pay permit that knows at the
time of its purchase of a digital good, computer software delivered electronically, or a
service that the digital good, computer software delivered electronically, or service will be
concurrently available for use in more than one jurisdiction shall deliver to the seller in
conjunction with its purchase a multiple points of use exemption certificate disclosing
this fact.
new text end
new text begin
(b) Upon receipt of the multiple points of use certificate, the seller is relieved of the
obligation to collect, pay, or remit the applicable tax and the purchaser is obligated to
collect, pay, or remit the applicable tax on a direct pay basis.
new text end
new text begin
(c) A purchaser delivering the multiple points of use exemption certificate may use
any reasonable, but consistent and uniform, method of apportionment that is supported by
the purchaser's business records as they exist at the time of the consummation of the sale.
new text end
new text begin
(d) The multiple points of use exemption certificate remains in effect for all future
sales by the seller to the purchaser until it is revoked in writing, except as to the subsequent
sale's specific apportionment that is governed by the principle of paragraph (c) and the
facts existing at the time of the sale.
new text end
new text begin
(e) A holder of a direct pay permit is not required to deliver a multiple points of use
exemption certificate to the seller. A direct pay permit holder shall follow the provisions
of paragraph (c) in apportioning the tax due on a digital good, computer software delivered
electronically, or a service that will be concurrently available for use in more than one
jurisdiction.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after
June 30, 2013.
new text end
Sec. 8.
Minnesota Statutes 2012, section 297A.67, subdivision 7, is amended to read:
Subd. 7.
Drugs; medical devices.
(a) Sales of the following drugs and medical
devices for human use are exempt:
(1) drugs, including over-the-counter drugs;
(2) single-use finger-pricking devices for the extraction of blood and other single-use
devices and single-use diagnostic agents used in diagnosing, monitoring, or treating
diabetes;
(3) insulin and medical oxygen for human use, regardless of whether prescribed
or sold over the counter;
(4) prosthetic devices;
(5) durable medical equipment for home use only;
(6) mobility enhancing equipment;
(7) prescription corrective eyeglasses; and
(8) kidney dialysis equipment, including repair and replacement parts.
new text begin
(b) Items purchased in transactions covered by:
new text end
new text begin
(1) Medicare as defined under title XVIII of the Social Security Act, United States
Code, title 42, sections 1395, et seq.; or
new text end
new text begin
(2) Medicaid as defined under title XIX of the Social Security Act, United States
Code, title 42, sections 1396, et seq.
new text end
deleted text begin (b)deleted text end new text begin (c)new text end For purposes of this subdivision:
(1) "Drug" means a compound, substance, or preparation, and any component of
a compound, substance, or preparation, other than food and food ingredients, dietary
supplements, or alcoholic beverages that is:
(i) recognized in the official United States Pharmacopoeia, official Homeopathic
Pharmacopoeia of the United States, or official National Formulary, and supplement
to any of them;
(ii) intended for use in the diagnosis, cure, mitigation, treatment, or prevention
of disease; or
(iii) intended to affect the structure or any function of the body.
(2) "Durable medical equipment" means equipment, including repair and
replacement partsnew text begin and all accessories and supplies, including single patient use items
required for the effective use of the durable medical equipment devicenew text end , but not including
mobility enhancing equipment, that:
(i) can withstand repeated use;
(ii) is primarily and customarily used to serve a medical purpose;
(iii) generally is not useful to a person in the absence of illness or injury; and
(iv) is not worn in or on the body.
For purposes of this clause, "repair and replacement parts" includes all components
or attachments used in conjunction with the durable medical equipment, deleted text begin but does not
includedeleted text end new text begin includingnew text end repair and replacement parts which are for single patient use only.
(3) "Mobility enhancing equipment" means equipment, including repair and
replacement parts, but not including durable medical equipment, that:
(i) is primarily and customarily used to provide or increase the ability to move from
one place to another and that is appropriate for use either in a home or a motor vehicle;
(ii) is not generally used by persons with normal mobility; and
(iii) does not include any motor vehicle or equipment on a motor vehicle normally
provided by a motor vehicle manufacturer.
(4) "Over-the-counter drug" means a drug that contains a label that identifies the
product as a drug as required by Code of Federal Regulations, title 21, section 201.66. The
label must include a "drug facts" panel or a statement of the active ingredients with a list of
those ingredients contained in the compound, substance, or preparation. Over-the-counter
drugs do not include grooming and hygiene products, regardless of whether they otherwise
meet the definition. "Grooming and hygiene products" are soaps, cleaning solutions,
shampoo, toothpaste, mouthwash, antiperspirants, and suntan lotions and sunscreens.
(5) "Prescribed" and "prescription" means a direction in the form of an order,
formula, or recipe issued in any form of oral, written, electronic, or other means of
transmission by a duly licensed health care professional.
(6) "Prosthetic device" means a replacement, corrective, or supportive device,
including repair and replacement partsnew text begin , new text end new text begin and all necessary accessories, supplies, and items
required for the effective use of the prosthetic devicenew text end , worn on or in the body to:
(i) artificially replace a missing portion of the body;
(ii) prevent or correct physical deformity or malfunction; or
(iii) support a weak or deformed portion of the body.
Prosthetic device does not include corrective eyeglasses.
(7) "Kidney dialysis equipment" means equipment that:
(i) is used to remove waste products that build up in the blood when the kidneys are
not able to do so on their own; and
(ii) can withstand repeated use, including multiple use by a single patient,
notwithstanding the provisions of clause (2).
new text begin
(8) A transaction is covered by Medicare or Medicaid if any portion of the cost of
the item purchased in the transaction is paid for or reimbursed by the federal government
or the state of Minnesota pursuant to the Medicare or Medicaid program, by a private
insurance company administering the Medicare or Medicaid program on behalf of the
federal government or the state of Minnesota, or by a managed care organization for the
benefit of a patient enrolled in a prepaid program that furnishes medical services in lieu
of conventional Medicare or Medicaid coverage pursuant to agreement with the federal
government or the state of Minnesota.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after
June 30, 2013.
new text end
Sec. 9.
Minnesota Statutes 2012, section 297A.70, subdivision 4, is amended to read:
Subd. 4.
Sales to nonprofit groups.
(a) All sales, except those listed in paragraph
(b), to the following "nonprofit organizations" are exempt:
(1) a corporation, society, association, foundation, or institution organized and
operated exclusively for charitable, religious, or educational purposes if the item
purchased is used in the performance of charitable, religious, or educational functions; and
(2) any senior citizen group or association of groups that:
(i) in general limits membership to persons who are either age 55 or older, or
physically disabled;
(ii) is organized and operated exclusively for pleasure, recreation, and other
nonprofit purposes, not including housing, no part of the net earnings of which inures to
the benefit of any private shareholders; and
(iii) is an exempt organization under section 501(c) of the Internal Revenue Code.
For purposes of this subdivision, charitable purpose includes the maintenance of a
cemetery owned by a religious organization.
(b) This exemption does not apply to the following sales:
(1) building, construction, or reconstruction materials purchased by a contractor
or a subcontractor as a part of a lump-sum contract or similar type of contract with a
guaranteed maximum price covering both labor and materials for use in the construction,
alteration, or repair of a building or facility;
(2) construction materials purchased by tax-exempt entities or their contractors to
be used in constructing buildings or facilities that will not be used principally by the
tax-exempt entities; and
(3) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause
(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section
297A.67, subdivision 2, except wine purchased by an established religious organization
for sacramental purposesnew text begin or as allowed under subdivision 9anew text end ; and
(4) leasing of a motor vehicle as defined in section 297B.01, subdivision 11, except
as provided in paragraph (c).
(c) This exemption applies to the leasing of a motor vehicle as defined in section
297B.01, subdivision 11, only if the vehicle is:
(1) a truck, as defined in section 168.002, a bus, as defined in section 168.002, or a
passenger automobile, as defined in section 168.002, if the automobile is designed and
used for carrying more than nine persons including the driver; and
(2) intended to be used primarily to transport tangible personal property or
individuals, other than employees, to whom the organization provides service in
performing its charitable, religious, or educational purpose.
(d) A limited liability company also qualifies for exemption under this subdivision if
(1) it consists of a sole member that would qualify for the exemption, and (2) the items
purchased qualify for the exemption.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for sales and purchases
made after June 30, 2012.
new text end
Sec. 10.
Minnesota Statutes 2012, section 297A.70, subdivision 8, is amended to read:
Subd. 8.
deleted text begin Regionwidedeleted text end Public safety radio communication deleted text begin systemdeleted text end new text begin systemsnew text end ;
products and services.
new text begin (a) new text end Products and services including, but not limited to, end user
equipment used for construction, ownership, operation, maintenance, and enhancement
of the backbone system of the regionwide public safety radio communication system
established under sections 403.21 to 403.40, are exempt. For purposes of this subdivision,
backbone system is defined in section 403.21, subdivision 9. This subdivision is effective
for purchases, sales, storage, use, or consumption for use in the first and second phases of
the system, as defined in section 403.21, subdivisions 3, 10, and 11, that portion of the
third phase of the system that is located in the southeast district of the State Patrol and
the counties of Benton, Sherburne, Stearns, and Wright, and that portion of the system
that is located in Itasca County.
new text begin
(b) Products and services, including, but not limited to, end-user equipment used
for construction, ownership, operation, maintenance, and enhancement of public safety
radio communication systems not already exempt under paragraph (a), including public
safety radio dispatch centers, are exempt.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after
June 30, 2013.
new text end
Sec. 11.
Minnesota Statutes 2012, section 297A.70, is amended by adding a
subdivision to read:
new text begin Subd. 9a. new text end
new text begin Established religious orders. new text end
new text begin
(a) Sales of lodging, prepared food, candy,
soft drinks, and alcoholic beverages at noncatered events between an established religious
order and an affiliated institution of higher education are exempt.
new text end
new text begin
(b) For purposes of this subdivision, "established religious order" means an
organization directly or indirectly under the control or supervision of a church or
convention or association of churches, where members of the organization:
new text end
new text begin
(1) normally live together as part of a community;
new text end
new text begin
(2) make long-term commitments to live under a strict set of moral and spiritual
rules; and
new text end
new text begin
(3) work or engage full time in a combination of prayer, religious study, church
reform or renewal, or other religious, educational, or charitable goals of the organization.
new text end
new text begin
(c) For purposes of this subdivision, an institution of higher education is "affiliated"
with an established religious order if members of the religious order are represented
on the governing board of the institution of higher education and the two organization
share campus space and common facilities.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for sales and purchases
made after June 30, 2012.
new text end
Sec. 12.
Minnesota Statutes 2012, section 297A.70, is amended by adding a
subdivision to read:
new text begin Subd. 18. new text end
new text begin Nursing homes and boarding care homes. new text end
new text begin
(a) All sales, except those
listed in paragraph (b), to a nursing home licensed under section 144A.02 or a boarding
care home certified as a nursing facility under title 19 of the Social Security Act are
exempt if the facility:
new text end
new text begin
(1) is exempt from federal income taxation pursuant to section 501(c)(3) of the
Internal Revenue Code; and
new text end
new text begin
(2) is certified to participate in the medical assistance program under title 19 of the
Social Security Act, or certifies to the commissioner that it does not discharge residents
due to the inability to pay.
new text end
new text begin
(b) This exemption does not apply to the following sales:
new text end
new text begin
(1) building, construction, or reconstruction materials purchased by a contractor
or a subcontractor as a part of a lump-sum contract or similar type of contract with a
guaranteed maximum price covering both labor and materials for use in the construction,
alteration, or repair of a building or facility;
new text end
new text begin
(2) construction materials purchased by tax-exempt entities or their contractors to
be used in constructing buildings or facilities that will not be used principally by the
tax-exempt entities;
new text end
new text begin
(3) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause
(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section
297A.67, subdivision 2; and
new text end
new text begin
(4) leasing of a motor vehicle as defined in section 297B.01, subdivision 11, except
as provided in paragraph (c).
new text end
new text begin
(c) This exemption applies to the leasing of a motor vehicle as defined in section
297B.01, subdivision 11, only if the vehicle is:
new text end
new text begin
(1) a truck, as defined in section 168.002; a bus, as defined in section 168.002; or a
passenger automobile, as defined in section 168.002, if the automobile is designed and
used for carrying more than nine persons including the driver; and
new text end
new text begin
(2) intended to be used primarily to transport tangible personal property or residents
of the nursing home or boarding care home.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after
June 30, 2013.
new text end
Sec. 13.
Minnesota Statutes 2012, section 297A.71, is amended by adding a
subdivision to read:
new text begin Subd. 45. new text end
new text begin Industrial measurement manufacturing and controls facility. new text end
new text begin
(a)
Materials and supplies used or consumed in, capital equipment incorporated into,
fixtures installed in, and privately owned infrastructure in support of the construction,
improvement, or expansion of an industrial measurement manufacturing and controls
facility are exempt if:
new text end
new text begin
(1) the total capital investment made at the facility is at least $60,000,000;
new text end
new text begin
(2) the facility employs at least 250 full-time equivalent employees that are not
employees currently employed by the company in the state; and
new text end
new text begin
(3) the Department of Employment and Economic Development determines that
the expansion, remodeling, or improvement of the facility has a significant impact on
the state economy.
new text end
new text begin
(b) The tax must be imposed and collected as if the rate under section 297A.62,
subdivisions 1 and 1a, applied and refunded in the manner provided in section 297A.75,
only after the following criteria are met:
new text end
new text begin
(1) a refund may not be issued until the owner of the facility has received
certification from the Department of Employment and Economic Development that the
company meets the requirements in paragraph (a); and
new text end
new text begin
(2) to receive the refund, the owner of the industrial measurement manufacturing
and controls facility must initially apply to the Department of Employment and Economic
Development for certification no later than one year from the final completion date of
construction, improvement, or expansion of the industrial measurement manufacturing
and controls facility.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after
June 30, 2013, and before December 31, 2015.
new text end
Sec. 14.
Minnesota Statutes 2012, section 297A.71, is amended by adding a
subdivision to read:
new text begin Subd. 46. new text end
new text begin Building materials; resorts and recreational camping areas. new text end
new text begin
Materials
and supplies used or consumed in, and equipment incorporated into, the improvement of
an existing structure located at a resort, as defined in section 157.15, subdivision 11, or
recreational camping area, as defined in section 327.14, are exempt. The tax on purchases
exempt under this provision must be imposed and collected as if the rate under section
297A.62, subdivision 1, applied and then refunded in the manner provided in section
297A.75. For purposes of this subdivision, a structure includes a cabin located on resort
property and any other structure available for use by guests of the resort or recreational
camping area.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after
June 30, 2013.
new text end
Sec. 15.
Minnesota Statutes 2012, section 297A.71, is amended by adding a
subdivision to read:
new text begin Subd. 47. new text end
new text begin Biopharmaceutical manufacturing facility. new text end
new text begin
(a) Materials and
supplies used or consumed in, capital equipment incorporated into, and privately
owned infrastructure in support of the construction, improvement, or expansion of a
biopharmaceutical manufacturing facility in the state are exempt if the following criteria
are met:
new text end
new text begin
(1) the facility is used for the manufacturing of biologics;
new text end
new text begin
(2) the total capital investment made at the facility exceeds $50,000,000; and
new text end
new text begin
(3) the facility creates and maintains at least 190 full-time equivalent positions at the
facility. These positions must be new jobs in Minnesota and not the result of relocating
jobs that currently exist in Minnesota.
new text end
new text begin
(b) The tax must be imposed and collected as if the rate under section 297A.62,
subdivision 1, applied, and refunded in the manner provided in section 297A.75.
new text end
new text begin
(c) To be eligible for a refund, the owner of the biopharmaceutical manufacturing
facility must:
new text end
new text begin
(1) initially apply to the Department of Employment and Economic Development
for certification no later than one year from the final completion date of construction,
improvement, or expansion of the facility; and
new text end
new text begin
(2) for each year that the owner of the biopharmaceutical manufacturing facility
applies for a refund, the owner must have received written certification from the
Department of Employment and Economic Development that the facility has met the
criteria of paragraph (a).
new text end
new text begin
(d) The refund is to be paid annually at a rate of 25 percent of the total allowable
refund payable to date, with the commissioner making annual payments of the remaining
refund until all of the refund has been paid.
new text end
new text begin
(e) For purposes of this subdivision, "biopharmaceutical" and "biologics" are
interchangeable and mean medical drugs or medicinal preparations produced using
technology that uses biological systems, living organisms or derivatives of living
organisms, to make or modify products or processes for specific use. The medical drugs or
medicinal preparations include but are not limited to proteins, antibodies, nucleic acids,
and vaccines.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively to investments entered
into and jobs created after December 31, 2012, and effective retroactively for sales and
purchases made after December 31, 2012, and before July 1, 2019.
new text end
Sec. 16.
Minnesota Statutes 2012, section 297A.75, subdivision 1, is amended to read:
Subdivision 1.
Tax collected.
The tax on the gross receipts from the sale of the
following exempt items must be imposed and collected as if the sale were taxable and the
rate under section 297A.62, subdivision 1, applied. The exempt items include:
(1) capital equipment exempt under section 297A.68, subdivision 5;
(2) building materials for an agricultural processing facility exempt under section
297A.71, subdivision 13;
(3) building materials for mineral production facilities exempt under section
297A.71, subdivision 14;
(4) building materials for correctional facilities under section 297A.71, subdivision 3;
(5) building materials used in a residence for disabled veterans exempt under section
297A.71, subdivision 11;
(6) elevators and building materials exempt under section 297A.71, subdivision 12;
(7) building materials for the Long Lake Conservation Center exempt under section
297A.71, subdivision 17;
(8) materials and supplies for qualified low-income housing under section 297A.71,
subdivision 23;
(9) materials, supplies, and equipment for municipal electric utility facilities under
section 297A.71, subdivision 35;
(10) equipment and materials used for the generation, transmission, and distribution
of electrical energy and an aerial camera package exempt under section 297A.68,
subdivision 37;
(11) commuter rail vehicle and repair parts under section 297A.70, subdivision 3,
paragraph (a), clause (10);
(12) materials, supplies, and equipment for construction or improvement of projects
and facilities under section 297A.71, subdivision 40;
(13) materials, supplies, and equipment for construction or improvement of a meat
processing facility exempt under section 297A.71, subdivision 41;
(14) materials, supplies, and equipment for construction, improvement, or
expansion of an aerospace defense manufacturing facility exempt under section 297A.71,
subdivision 42new text begin , and construction, expansion, or improvement of an industrial measurement
manufacturing and controls facility under section 297A.71, subdivision 45new text end ;
(15) enterprise information technology equipment and computer software for use in
a qualified data center exempt under section 297A.68, subdivision 42; deleted text begin and
deleted text end
(16) materials, supplies, and equipment for qualifying capital projects under section
297A.71, subdivision 44deleted text begin .deleted text end new text begin ;
new text end
new text begin
(17) materials, supplies, and equipment for structure improvements at resort and
camping areas under section 297A.71, subdivision 46; and
new text end
new text begin
(18) materials, supplies, and equipment for construction, improvement, or expansion
of a biopharmaceutical manufacturing facility exempt under section 297A.71, subdivision
47.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 17.
Minnesota Statutes 2012, section 297A.75, subdivision 2, is amended to read:
Subd. 2.
Refund; eligible persons.
Upon application on forms prescribed by the
commissioner, a refund equal to the tax paid on the gross receipts of the exempt items
must be paid to the applicant. Only the following persons may apply for the refund:
(1) for subdivision 1, clauses (1) to (3), the applicant must be the purchaser;
(2) for subdivision 1, clauses (4) and (7), the applicant must be the governmental
subdivision;
(3) for subdivision 1, clause (5), the applicant must be the recipient of the benefits
provided in United States Code, title 38, chapter 21;
(4) for subdivision 1, clause (6), the applicant must be the owner of the homestead
property;
(5) for subdivision 1, clause (8), the owner of the qualified low-income housing
project;
(6) for subdivision 1, clause (9), the applicant must be a municipal electric utility or
a joint venture of municipal electric utilities;
(7) for subdivision 1, clauses (10), (13), (14), deleted text begin anddeleted text end (15),new text begin and (18),new text end the owner of the
qualifying businessdeleted text begin ; and
deleted text end
(8) for subdivision 1, clauses (11), (12), and (16), the applicant must be the
governmental entity that owns or contracts for the project or facilitydeleted text begin .deleted text end new text begin ; and
new text end
new text begin
(9) for subdivision 1, clause (17), the applicant must be the owner of the resort
or recreational camping facility.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 18.
Minnesota Statutes 2012, section 297A.75, subdivision 3, is amended to read:
Subd. 3.
Application.
(a) The application must include sufficient information
to permit the commissioner to verify the tax paid. If the tax was paid by a contractor,
subcontractor, or builder, under subdivision 1, clause (4), (5), (6), (7), (8), (9), (10), (11),
(12), (13), (14), (15), deleted text begin ordeleted text end (16),new text begin (17), or (18),new text end the contractor, subcontractor, or builder must
furnish to the refund applicant a statement including the cost of the exempt items and the
taxes paid on the items unless otherwise specifically provided by this subdivision. The
provisions of sections 289A.40 and 289A.50 apply to refunds under this section.
(b) An applicant may not file more than two applications per calendar year for
refunds for taxes paid on capital equipment exempt under section 297A.68, subdivision 5.
(c) Total refunds for purchases of items in section 297A.71, subdivision 40, must not
exceed $5,000,000 in fiscal years 2010 and 2011. Applications for refunds for purchases
of items in sections 297A.70, subdivision 3, paragraph (a), clause (11), and 297A.71,
subdivision 40, must not be filed until after June 30, 2009.new text begin Applications for refunds for
purchases of items in section 297A.71, subdivision 47, must not be filed until after June
30, 2016, and only one refund may be filed annually thereafter.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 19.
Minnesota Statutes 2012, section 297A.815, subdivision 3, is amended to read:
Subd. 3.
Motor vehicle lease sales tax revenue.
(a) For purposes of this
subdivision, "net revenue" means an amount equal to:
(1) the revenues, including interest and penalties, collected under this sectionnew text begin and
on the leases under section 297A.61, subdivision 4, paragraph (k), clause (3)new text end , during
the fiscal year; less
(2) in fiscal year 2011, $30,100,000; in fiscal year 2012, $31,100,000; and in fiscal
year 2013 and following fiscal years, $32,000,000.
(b) On or before June 30 of each fiscal year, the commissioner of revenue shall
estimate the amount of the revenues and subtraction under paragraph (a) for the current
fiscal year.
(c) On or after July 1 of the subsequent fiscal year, the commissioner of management
and budget shall transfer the net revenue as estimated in paragraph (b) from the general
fund, as follows:
(1) 50 percent to the greater Minnesota transit account; and
(2) 50 percent to the county state-aid highway fund. Notwithstanding any other law
to the contrary, the commissioner of transportation shall allocate the funds transferred
under this clause to the counties in the metropolitan area, as defined in section 473.121,
subdivision 4, excluding the counties of Hennepin and Ramsey, so that each county shall
receive of such amount the percentage that its population, as defined in section 477A.011,
subdivision 3, estimated or established by July 15 of the year prior to the current calendar
year, bears to the total population of the counties receiving funds under this clause.
(d) For fiscal years 2010 and 2011, the amount under paragraph (a), clause (1), must
be calculated using the following percentages of the total revenues:
(1) for fiscal year 2010, 83.75 percent; and
(2) for fiscal year 2011, 93.75 percent.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for leases entered into after June
30, 2013.
new text end
Sec. 20.
Minnesota Statutes 2012, section 297A.993, subdivision 1, is amended to read:
Subdivision 1.
Authorization; rates.
Notwithstanding section 297A.99,
subdivisions 1, 2, 3, 5, and 13, or 477A.016, or any other law, the board of a county outside
the metropolitan transportation area, as defined under section 297A.992, subdivision 1, or
more than one county outside the metropolitan transportation area acting under a joint
powers agreement, maynew text begin by resolution of the county board, or each of the county boards,
following a public hearingnew text end impose (1) a transportation sales tax at a rate of up to one-half
of one percent on retail sales and uses taxable under this chapter, and (2) an excise tax
of $20 per motor vehicle, as defined in section 297B.01, subdivision 11, purchased or
acquired from any person engaged in the business of selling motor vehicles at retail,
occurring within the jurisdiction of the taxing authority. deleted text begin The taxes imposed under this
section are subject to approval by a majority of the voters in each of the counties affected
at a general election who vote on the question to impose the taxes.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 21.
Minnesota Statutes 2012, section 297A.993, subdivision 2, is amended to read:
Subd. 2.
Allocation; termination.
The proceeds of the taxes must be dedicated
exclusively tonew text begin : (1)new text end payment of thenew text begin capitalnew text end cost of a specific transportation project or
improvementnew text begin ; (2) payments of the costs, which may include both capital and operating
costs, of a specific transit project or improvement; or (3) payment of transit operating
costsnew text end . The deleted text begin transportationdeleted text end project or improvement must be designated by the board of the
county, or more than one county acting under a joint powers agreement.new text begin Except for taxes
for operating costs of a transit project or improvement, or for transit operations,new text end the taxes
must terminate deleted text begin after the project or improvement has been completeddeleted text end new text begin when revenues
raised are sufficient to finance the projectnew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 22.
Minnesota Statutes 2012, section 469.190, is amended by adding a subdivision
to read:
new text begin Subd. 1a. new text end
new text begin Tax base; locally collected taxes. new text end
new text begin
A tax imposed on the gross receipts
from lodging under this section or under a special law applies to the same base as taxes
collected by the commissioner of revenue under subdivision 7 and section 270C.171.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
In enacting this section, the legislature confirms its original intent in enacting Minnesota
Statutes, section 469.190, its predecessor provisions, and any special laws authorizing
political subdivisions to impose lodging taxes, and that those taxes were and are intended
to apply to the entire consideration paid to obtain access to transient lodging, including
ancillary or related services, such as services provided by accommodation intermediaries
as defined in Minnesota Statutes, section 297A.61, and similar services. The provisions of
this section must not be interpreted to imply a narrower construction of the tax base under
lodging tax provisions of Minnesota law prior to the enactment of this section.
new text end
Sec. 23.
Minnesota Statutes 2012, section 469.190, subdivision 7, is amended to read:
Subd. 7.
Collection.
new text begin (a) new text end The statutory or home rule charter city may agree with the
commissioner of revenue that a tax imposed pursuant to this section shall be collected
by the commissioner together with the tax imposed by chapter 297A, and subject to the
same interest, penalties, and other rules and that its proceeds, less the cost of collection,
shall be remitted to the city.
new text begin
(b) If a tax imposed under this section or under a special law is not collected by
the commissioner of revenue, the local government imposing the tax may only require
an accommodations intermediary, as defined in section 297A.61, subdivision 47, to file
and remit the tax related to accommodations intermediary services once in every calendar
year. The local government must inform the tax intermediary of the date when the return
and remittance is due.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after
June 30, 2013.
new text end
Sec. 24.
Laws 1993, chapter 375, article 9, section 46, subdivision 2, as amended by
Laws 1997, chapter 231, article 7, section 40, Laws 1998, chapter 389, article 8, section
30, Laws 2003, First Special Session chapter 21, article 8, section 13, Laws 2005, First
Special Session chapter 3, article 5, section 26, and Laws 2009, chapter 88, article 4,
section 15, is amended to read:
Subd. 2.
Use of revenues.
Revenues received from the tax authorized by subdivision
1 may only be used by the city to pay the cost of collecting the tax, andnew text begin , except as provided in
paragraph (e),new text end to pay for the following projects or to secure or pay any principal, premium,
or interest on bonds issued in accordance with subdivision 3 for the following projects.
(a) To pay all or a portion of the capital expenses of construction, equipment and
acquisition costs for the expansion and remodeling of the St. Paul Civic Center complex,
including the demolition of the existing arena and the construction and equipping of a
new arena.
(b) Except as provided in paragraphs (e) and (f), the remainder of the funds must be
spent for:
(1) capital projects to further residential, cultural, commercial, and economic
development in both downtown St. Paul and St. Paul neighborhoods; and
(2) capital and operating expenses of cultural organizations in the city, provided
that the amount spent under this clause must equal ten percent of the total amount spent
under this paragraph in any year.
(c) The amount apportioned under paragraph (b) shall be no less than 60 percent
of the revenues derived from the tax each year, except to the extent that a portion of that
amount is required to pay debt service on (1) bonds issued for the purposes of paragraph (a)
prior to March 1, 1998; or (2) bonds issued for the purposes of paragraph (a) after March 1,
1998, but only if the city council determines that 40 percent of the revenues derived from
the tax together with other revenues pledged to the payment of the bonds, including the
proceeds of definitive bonds, is expected to exceed the annual debt service on the bonds.
(d) If in any year more than 40 percent of the revenue derived from the tax authorized
by subdivision 1 is used to pay debt service on the bonds issued for the purposes of
paragraph (a) and to fund a reserve for the bonds, the amount of the debt service payment
that exceeds 40 percent of the revenue must be determined for that year. In any year when
40 percent of the revenue produced by the sales tax exceeds the amount required to pay
debt service on the bonds and to fund a reserve for the bonds under paragraph (a), the
amount of the excess must be made available for capital projects to further residential,
cultural, commercial, and economic development in the neighborhoods and downtown
until the cumulative amounts determined for all years under the preceding sentence have
been made available under this sentence. The amount made available as reimbursement in
the preceding sentence is not included in the 60 percent determined under paragraph (c).
(e) deleted text begin In each of calendar years 2006 to 2014, revenue not to exceed $3,500,000 may be
used to pay the principal of bonds issued for capital projects of the city. After December
31, 2014, revenue from the tax imposed under subdivision 1 may not be used for this
purpose.deleted text end new text begin If the amount necessary to meet obligations under paragraphs (a) and (d) are less
than 40 percent of the revenue from the tax in any year, the city may place the difference
between 40 percent of the revenue and the amounts allocated under paragraphs (a) and (d)
in an economic development fund to be used for any economic development purposes.
new text end
(f) By January 15 of each year, the mayor and the city council must report to the
legislature on the use of sales tax revenues during the preceding one-year period.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after compliance by the
governing body of the city of St. Paul with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end
Sec. 25.
Laws 1993, chapter 375, article 9, section 46, subdivision 5, as amended by
Laws 1998, chapter 389, article 8, section 32, is amended to read:
Subd. 5.
Expiration of taxing authority.
The authority granted by subdivision 1 to
the city to impose a sales tax shall expire on December 31, deleted text begin 2030deleted text end new text begin 2042new text end , or at an earlier
time as the city shall, by ordinance, determine. Any funds remaining after completion of
projects approved under subdivision 2, paragraph (a) and retirement or redemption of any
bonds or other obligations may be placed in the general fund of the city.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after compliance by the
governing body of the city of St. Paul with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end
Sec. 26.
Laws 2002, chapter 377, article 3, section 25, as amended by Laws 2009,
chapter 88, article 4, section 19, and Laws 2010, chapter 389, article 5, section 3, is
amended to read:
Sec. 25. ROCHESTER LODGING TAX.
Subdivision 1.
Authorization.
Notwithstanding Minnesota Statutes, section
469.190 or 477A.016, or any other law, the city of Rochester may impose an additional
tax of one percent on the gross receipts from the furnishing for consideration of lodging at
a hotel, motel, rooming house, tourist court, or resort, other than the renting or leasing of it
for a continuous period of 30 days or more.
Subd. 1a.
Authorization.
Notwithstanding Minnesota Statutes, section 469.190 or
477A.016, or any other law, and in addition to the tax authorized by subdivision 1, the city
of Rochester may impose an additional tax of deleted text begin onedeleted text end new text begin threenew text end percent on the gross receipts from
the furnishing for consideration of lodging at a hotel, motel, rooming house, tourist court, or
resort, other than the renting or leasing of it for a continuous period of 30 days or more only
upon the approval of the city governing body of a total financial package for the project.
Subd. 2.
Disposition of proceeds.
(a) The gross proceeds from the tax imposed
under subdivision 1 must be used by the city to fund a local convention or tourism bureau
for the purpose of marketing and promoting the city as a tourist or convention center.
(b) The gross proceeds from the deleted text begin onedeleted text end new text begin threenew text end percent tax imposed under subdivision
1a shall be used to pay for (1) new text begin design, new text end construction, renovation, improvement, and
expansion of the Mayo Civic Centernew text begin Complexnew text end and related new text begin infrastructure, including but not
limited to, new text end skyway access, lighting, parking, or landscaping; and (2) for payment of any
principal, interest, or premium on bonds issued to finance the construction, renovation,
improvement, and expansion of the Mayo Civic Center Complex.
Subd. 2a.
Bonds.
The city of Rochester may issue, without an election, general
obligation bonds of the city, in one or more series, in the aggregate principal amount not to
exceed deleted text begin $43,500,000deleted text end new text begin $50,000,000new text end , to pay for capital and administrative costs for the design,
construction, renovation, improvement, and expansion of the Mayo Civic Center Complex,
and related new text begin infrastructure, including but not limited to, new text end skyway, access, lighting, parking,
and landscaping. The city may pledge the lodging tax authorized by subdivision 1a deleted text begin and the
food and beverage tax authorized under Laws 2009, chapter 88, article 4, section 23,deleted text end to the
payment of the bonds. The debt represented by the bonds is not included in computing any
debt limitations applicable to the city, and the levy of taxes required by Minnesota Statutes,
section 475.61, to pay the principal of and interest on the bonds is not subject to any levy
limitation or included in computing or applying any levy limitation applicable to the city.
Subd. 3.
Expiration of taxing authority.
deleted text begin
The authority of the city to impose a tax
under subdivision 1a shall expire when the principal and interest on any bonds or other
obligations issued prior to December 31, 2014, to finance the construction, renovation,
improvement, and expansion of the Mayo Civic Center Complex and related skyway
access, lighting, parking, or landscaping have been paid, including any bonds issued to
refund such bonds, or at an earlier time as the city shall, by ordinance, determine. Any
funds remaining after completion of the project and retirement or redemption of the bonds
shall be placed in the general fund of the city.
deleted text end
new text begin
The city may, by ordinance, repeal the
tax provided that:
new text end
new text begin
(1) the revenues raised before the repeal are sufficient to meet all bond or other
obligations backed by revenues of the tax; and
new text end
new text begin
(2) the repeal date meets the requirements of section 297A.99, subdivision 12.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of
the city of Rochester and its chief fiscal officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end
Sec. 27.
Laws 2005, First Special Session chapter 3, article 5, section 37, subdivision
2, is amended to read:
Subd. 2.
Use of revenues.
(a) Revenues received from the tax authorized by
subdivision 1 by the city of St. Cloud must be used for the cost of collecting and
administering the tax and to pay all or part of the capital or administrative costs of the
development, acquisition, construction, improvement, and securing and paying debt
service on bonds or other obligations issued to finance the following regional projects as
approved by the voters and specifically detailed in the referendum authorizing the taxnew text begin or
extending the taxnew text end :
(1) St. Cloud Regional Airport;
(2) regional transportation improvements;
(3) new text begin regional new text end community deleted text begin anddeleted text end aquatics new text begin and recreation new text end centersnew text begin and facilitiesnew text end ;
(4) regional public libraries; and
(5) acquisition and improvement of regional park land and open space.
(b) Revenues received from the tax authorized by subdivision 1 by the cities of St.
Joseph, Waite Park, Sartell, Sauk Rapids, and St. Augusta must be used for the cost of
collecting and administering the tax and to pay all or part of the capital or administrative
costs of the development, acquisition, construction, improvement, and securing and paying
debt service on bonds or other obligations issued to fund the projects specifically approved
by the voters at the referendum authorizing the taxnew text begin or extending the taxnew text end . The portion of
revenues from the city going to fund the regional airport or regional library located in the
city of St. Cloud will be as required under the applicable joint powers agreement.
(c) The use of revenues received from the taxes authorized in subdivision 1 for
projects allowed under paragraphs (a) and (b) are limited to the amount authorized for
each project under the enabling referendum.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for a city that approves it the day
after compliance by the governing body of that city with Minnesota Statutes, section
645.021, subdivision 3.
new text end
Sec. 28.
Laws 2005, First Special Session chapter 3, article 5, section 37, subdivision
4, is amended to read:
Subd. 4.
Termination of tax.
The tax imposed in the cities of St. Joseph, St. Cloud,
St. Augusta, Sartell, Sauk Rapids, and Waite Park under subdivision 1 expires when the
city council determines that sufficient funds have been collected from the tax to retire or
redeem the bonds and obligations authorized under subdivision 2, paragraph (a), but no
later than December 31, 2018.new text begin Notwithstanding Minnesota Statutes, section 297A.99,
subdivision 3, paragraphs (a), (c), and (d), a city may extend the tax imposed under
subdivision 1 through December 31, 2038, if approved under the referendum authorizing
the tax under subdivision 1 or if approved by voters of the city at a general election held
no later than November 6, 2018.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for a city that approves it the day
after compliance by the governing body of that city with Minnesota Statutes, section
645.021, subdivision 3.
new text end
Sec. 29.
Laws 2008, chapter 366, article 7, section 19, subdivision 3, as amended by
Laws 2011, First Special Session chapter 7, article 4, section 8, is amended to read:
Subd. 3.
Use of revenues.
Notwithstanding Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (b), the proceeds of the tax imposed under this section shall be
used to pay for the costs of new text begin improvements to the Sportsman Park/Ballfields, Riverside
Park, Lions Park/Pavilion, Cedar South Park also known as Eldorado Park, and Spring
Street Park; improvements to and extension of the River County Bike Trail; new text end acquisitiondeleted text begin ,
deleted text end new text begin andnew text end constructiondeleted text begin , improvement, and development of regional parks, bicycle trails, park
land, open space, anddeleted text end new text begin of a new text end pedestrian deleted text begin walkways, as described in the city improvement
plan adopted by the city council by resolution on December 12, 2006, anddeleted text end new text begin walkway
over Interstate 94 and State Highway 24; and the acquisition ofnew text end land and new text begin construction of
new text end buildings for a community and recreation center. The total amount of revenues from the
taxes in subdivisions 1 and 2 that may be used to fund these projects is $12,000,000
plus any associated bond costs.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after compliance by the
governing body of the city of Clearwater with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end
Sec. 30.
Laws 2010, chapter 389, article 5, section 6, subdivision 4, is amended to read:
Subd. 4.
Use of lodging tax revenues.
The revenues derived from the tax imposed
under subdivision 3 must be used by the city of Marshall to pay the costs of collecting
and administering the lodging tax, to pay all or part of the operating costs of the new and
existing facilities of the Minnesota Emergency Response and Industry Training Center,
including the payment of debt service on bonds issued under subdivision 2, and to pay
all or part of the operating costs of the facilities of the Southwest Minnesota Regional
Amateur Sports Center, including the payment of debt service on bonds issued under
subdivision 2.new text begin Authorized expenses include, but are not limited to, acquiring property;
predesign; design; and paying construction, furnishing, and equipment costs related to
these facilities and paying debt service on bonds or other obligations issued by the city.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 31.
Laws 2010, chapter 389, article 5, section 6, subdivision 6, is amended to read:
Subd. 6.
Use of food and beverages tax.
The revenues derived from the tax
imposed under subdivision 5 must be used by the city of Marshall to pay the costs of
collecting and administering the food and beverages tax, to pay all or part of the operating
costs of the new and existing facilities of the Minnesota Emergency Response and
Industry Training Center, including the payment of debt service on bonds issued under
subdivision 2, and to pay all or part of the operating costs of the facilities of the Southwest
Minnesota Regional Amateur Sports Center, including the payment of debt service on
bonds issued under subdivision 2.new text begin Authorized expenses for each organization include,
but are not limited to, acquiring property; predesign; design; and paying construction,
furnishing, and equipment costs related to these facilities and paying debt service on
bonds or other obligations issued by the city.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 32. new text begin CITY OF MARSHALL; VALIDATION OF PRIOR ACT.
new text end
new text begin
(a) Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city
of Marshall may approve Laws 2010, chapter 389, article 5, section 6, as amended by
Laws 201l, First Special Session chapter 7, article 4, section 9, and file its approval with
the secretary of state by June 15, 2013. If approved as authorized under this paragraph,
actions undertaken by the city pursuant to the approval of the voters on November 6, 2012,
and otherwise in accordance with Laws 2010, chapter 389, article 5, section 6, as amended
by Laws 201l, First Special Session chapter 7, article 4, section 9, are validated.
new text end
new text begin
(b) Notwithstanding the time limit on the imposition of tax under Laws 2010,
chapter 389, article 5, section 6, subdivision 1, as amended by Laws 201l, First Special
Session chapter 7, article 4, section 9, and subject to local approval under paragraph (a),
the city of Marshall may impose the tax on or before July 1, 2013.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 33. new text begin CITY OF PROCTOR; VALIDATION OF PRIOR ACT.
new text end
new text begin
Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city of
Proctor may approve, by resolution, Laws 2008, chapter 366, article 7, section 13, and
Laws 2010, chapter 389, article 5, sections 1 and 2, and file its approval with the secretary
of state by January 1, 2014. If approved under this paragraph, actions undertaken by
the city pursuant to the approval of the voters on November 2, 2010, and otherwise in
accordance with those laws are validated.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 34. new text begin CITY OF BEMIDJI; LOCAL TAXES AUTHORIZED.
new text end
new text begin Subdivision 1. new text end
new text begin Food and beverage tax authorized. new text end
new text begin
Notwithstanding Minnesota
Statutes, section 477A.016, or any ordinance, city charter, or other provision of law, the
city of Bemidji may, by ordinance, impose a sales tax of up to one percent on the gross
receipts of all food and beverages sold by a restaurant or place of refreshment located
within the city. For purposes of this section, "food and beverages" include retail on-sale of
intoxicating liquor and fermented malt beverages.
new text end
new text begin Subd. 2. new text end
new text begin Lodging tax. new text end
new text begin
Notwithstanding Minnesota Statutes, section 469.190 or
477A.016, or any other provision of law, ordinance, or city charter, the city of Bemidji
may impose, by ordinance, a tax of up to one percent on the gross receipts for the
furnishing for consideration of lodging at a hotel, motel, rooming house, tourist court, or
resort, other than for the renting or leasing of it for a continuous period of 30 days or more.
new text end
new text begin Subd. 3. new text end
new text begin Use of proceeds from authorized taxes. new text end
new text begin
The proceeds of the taxes
imposed under subdivisions 1 and 2 must only be used by the city to fund the costs of
operation, maintenance, and capital replacement costs for the Sanford Center.
new text end
new text begin Subd. 4. new text end
new text begin Collection, administration, and enforcement. new text end
new text begin
The city may enter into
an agreement with the commissioner of revenue to administer, collect, and enforce the
taxes under subdivisions 1 and 2. If the commissioner agrees to collect the tax, the
provisions of Minnesota Statutes, section 297A.99, related to collection, administration,
and enforcement, and Minnesota Statutes, section 270C.171, apply.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of
the city of Bemidji and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end
Sec. 35. new text begin ROCHESTER SALES TAX SHARING.
new text end
new text begin
The city council may, after holding a public hearing and passing a resolution, use
$5,000,000 of the $10,000,000 allocated to an economic development fund in Laws 1998,
chapter 389, article 8, section 43, subdivision 3, as amended by Laws 2005, First Special
Session chapter 3, article 5, section 28, and Laws 2011, First Special Session chapter
7, article 4, section 5, paragraph (c), clause (9), for grants to any or all of the cities of
Altura, Byron, Chatfield, Dodge Center, Elgin, Eyota, Grand Meadow, Hayfield, Kasson,
Mantorville, Mazeppa, Oronoco, Pine Island, Plainview, Spring Valley, St. Charles,
Stewartville, Wanamingo, West Concord, and Zumbrota for economic development
projects that these communities would fund through their economic development authority
or housing and redevelopment authority. The public hearing may be part of a regular city
council meeting. If the council does not pass the resolution by September 1, 2013, the
$5,000,000 may not be used for grants to the other cities but shall instead be used to
fund public infrastructure projects contained in the development plan under Minnesota
Statutes, section 469.42.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 36. new text begin REPEALER.
new text end
new text begin
Laws 2009, chapter 88, article 4, section 23, as amended by Laws 2010, chapter 389,
article 5, section 4,
new text end
new text begin
is repealed.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
ARTICLE 9
ECONOMIC DEVELOPMENT
Section 1.
Minnesota Statutes 2012, section 469.071, subdivision 5, is amended to read:
Subd. 5.
Exception; parking facilities.
Notwithstanding section 469.068, the
Bloomington port authority need not require competitive bidding with respect to a
structured parking facilitynew text begin or other public improvementsnew text end constructed in conjunction with,
and directly above or below, or adjacent and integrally related to, a development and
financed with the proceeds of tax increment deleted text begin ordeleted text end new text begin ,new text end revenue bondsnew text begin , or other funds of the
port authority and the city of Bloomingtonnew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective upon compliance of the governing
body of the city of Bloomington with the requirements of Minnesota Statutes, section
645.021, subdivision 3.
new text end
Sec. 2.
Minnesota Statutes 2012, section 469.169, is amended by adding a subdivision
to read:
new text begin Subd. 19. new text end
new text begin Additional border city allocation; 2013. new text end
new text begin
(a) In addition to the tax
reductions authorized in subdivisions 12 to 18, the commissioner shall allocate $750,000
for tax reductions to border city enterprise zones in cities located on the western border
of the state. The commissioner shall allocate this amount among cities on a per capita
basis. Allocations made under this subdivision may be used for tax reductions under
section 469.171, or for other offsets of taxes imposed on or remitted by businesses located
in the enterprise zone, but only if the municipality determines that the granting of the tax
reduction or offset is necessary to retain a business within or attract a business to the zone.
The city alternatively may elect to use any portion of the allocation under this paragraph
for tax reductions under section 469.1732 or 469.1734.
new text end
new text begin
(b) The commissioner shall allocate $750,000 for tax reductions under section
469.1732 or 469.1734 to cities with border city enterprise zones located on the western
border of the state. The commissioner shall allocate this amount among the cities on a per
capita basis. The city alternatively may elect to use any portion of the allocation provided
in this paragraph for tax reductions under section 469.171.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2013.
new text end
Sec. 3.
Minnesota Statutes 2012, section 469.176, subdivision 4c, is amended to read:
Subd. 4c.
Economic development districts.
(a) Revenue derived from tax increment
from an economic development district may not be used to provide improvements, loans,
subsidies, grants, interest rate subsidies, or assistance in any form to developments
consisting of buildings and ancillary facilities, if more than 15 percent of the buildings and
facilities (determined on the basis of square footage) are used for a purpose other than:
(1) the manufacturing or production of tangible personal property, including
processing resulting in the change in condition of the property;
(2) warehousing, storage, and distribution of tangible personal property, excluding
retail sales;
(3) research and development related to the activities listed in clause (1) or (2);
(4) telemarketing if that activity is the exclusive use of the property;
(5) tourism facilities;new text begin or
new text end
(6) deleted text begin qualified border retail facilities; or
deleted text end
deleted text begin (7)deleted text end space necessary for and related to the activities listed in clauses (1) to deleted text begin (6)deleted text end new text begin (5)new text end .
(b) Notwithstanding the provisions of this subdivision, revenues derived from tax
increment from an economic development district may be used to provide improvements,
loans, subsidies, grants, interest rate subsidies, or assistance in any form for up to 15,000
square feet of any separately owned commercial facility located within the municipal
jurisdiction of a small city, if the revenues derived from increments are spent only to
assist the facility directly or for administrative expenses, the assistance is necessary to
develop the facility, and all of the increments, except those for administrative expenses,
are spent only for activities within the district.
(c) A city is a small city for purposes of this subdivision if the city was a small city
in the year in which the request for certification was made and applies for the rest of
the duration of the district, regardless of whether the city qualifies or ceases to qualify
as a small city.
deleted text begin
(d) Notwithstanding the requirements of paragraph (a) and the finding requirements
of section 469.174, subdivision 12, tax increments from an economic development district
may be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or
assistance in any form to developments consisting of buildings and ancillary facilities, if
all the following conditions are met:
deleted text end
deleted text begin
(1) the municipality finds that the project will create or retain jobs in this state,
including construction jobs, and that construction of the project would not have
commenced before July 1, 2012, without the authority providing assistance under the
provisions of this paragraph;
deleted text end
deleted text begin
(2) construction of the project begins no later than July 1, 2012;
deleted text end
deleted text begin
(3) the request for certification of the district is made no later than June 30, 2012; and
deleted text end
deleted text begin
(4) for development of housing under this paragraph, the construction must begin
before January 1, 2012.
deleted text end
deleted text begin
The provisions of this paragraph may not be used to assist housing that is developed
to qualify under section 469.1761, subdivision 2 or 3, or similar requirements of other law,
if construction of the project begins later than July 1, 2011.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for districts for which the request for
certification was made after June 30, 2012.
new text end
Sec. 4.
Minnesota Statutes 2012, section 469.176, subdivision 4g, is amended to read:
Subd. 4g.
General government use prohibited.
(a) Tax increments may not be
used to circumvent existing levy limit law.
(b) No tax increment from any district may be used for the acquisition, construction,
renovation, operation, or maintenance of a building to be used primarily and regularly
for conducting the business of a municipality, county, school district, or any other local
unit of government or the state or federal government. This provision does not prohibit
the use of revenues derived from tax increments for the construction or renovation of
a parking structure.
deleted text begin
(c)(1) Tax increments may not be used to pay for the cost of public improvements,
equipment, or other items, if:
deleted text end
deleted text begin
(i) the improvements, equipment, or other items are located outside of the area of the
tax increment financing district from which the increments were collected; and
deleted text end
deleted text begin
(ii) the improvements, equipment, or items that (A) primarily serve a decorative or
aesthetic purpose, or (B) serve a functional purpose, but their cost is increased by more than
100 percent as a result of the selection of materials, design, or type as compared with more
commonly used materials, designs, or types for similar improvements, equipment, or items.
deleted text end
deleted text begin
(2) The provisions of this paragraph do not apply to expenditures related to the
rehabilitation of historic structures that are:
deleted text end
deleted text begin
(i) individually listed on the National Register of Historic Places; or
deleted text end
deleted text begin
(ii) a contributing element to a historic district listed on the National Register
of Historic Places.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment for
all tax increment financing districts, regardless of when the request for certification was
made, but applies only to amounts spent after final enactment.
new text end
Sec. 5.
Minnesota Statutes 2012, section 469.176, subdivision 6, is amended to read:
Subd. 6.
Action required.
(a) If, after four years from the date of certification of
the original net tax capacity of the tax increment financing district pursuant to section
469.177, no demolition, rehabilitation, or renovation of property or other site preparation,
including qualified improvement of a street adjacent to a parcel but not installation
of utility service including sewer or water systems, has been commenced on a parcel
located within a tax increment financing district by the authority or by the owner of the
parcel in accordance with the tax increment financing plan, no additional tax increment
may be taken from that parcel, and the original net tax capacity of that parcel shall be
excluded from the original net tax capacity of the tax increment financing district. If the
authority or the owner of the parcel subsequently commences demolition, rehabilitation,
or renovation or other site preparation on that parcel including qualified improvement of
a street adjacent to that parcel, in accordance with the tax increment financing plan, the
authority shall certify to the county auditor that the activity has commenced, and the
county auditor shall certify the net tax capacity thereof as most recently certified by the
commissioner of revenue and add it to the original net tax capacity of the tax increment
financing district. The county auditor must enforce the provisions of this subdivision. The
authority must submit to the county auditor evidence that the required activity has taken
place for each parcel in the district. The evidence for a parcel must be submitted by
February 1 of the fifth year following the year in which the parcel was certified as included
in the district. For purposes of this subdivision, qualified improvements of a street are
limited to (1) construction or opening of a new street, (2) relocation of a street, and (3)
substantial reconstruction or rebuilding of an existing street.
(b) For districts which were certified on or after January 1, 2005, and before April
20, 2009, the four-year period under paragraph (a) is deleted text begin increased to six yearsdeleted text end new text begin deemed to end
on December 31, 2016new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
and applies to districts certified on or after January 1, 2006, and before April 20, 2009.
new text end
Sec. 6.
Minnesota Statutes 2012, section 469.177, is amended by adding a subdivision
to read:
new text begin Subd. 1d. new text end
new text begin
Original net tax capacity adjustment; homestead market value
exclusion.
new text end
new text begin
(a) Upon approval by the municipality, by resolution, the authority may elect
to reduce the net tax capacity of a qualified district by the amount of the tax capacity
attributable to the market value exclusion under section 273.13, subdivision 35. The
amount of the reduction may not reduce the original net tax capacity below zero.
new text end
new text begin
(b) For purposes of this subdivision, a qualified district means a tax increment
financing district that satisfies the following conditions:
new text end
new text begin
(1) for taxes payable in 2011, the authority received a homestead market value credit
reimbursement under section 273.1384 for the district of $10,000 or more;
new text end
new text begin
(2) for taxes payable in 2013, the reduction in captured tax capacity resulting from
the market value exclusion for the district was equal to or greater than 1.75 percent of the
district's captured tax capacity; and
new text end
new text begin
(3) either (i) the authority is permitted to expend increments on activities under the
provisions of section 469.1763, subdivision 3, or an equivalent provision of special law
on July 1, 2013, or (ii) the district's tax increments received for taxes payable in 2012
exceeded the amount of debt service payments due during calendar year 2012 on bonds
issued under section 469.178 to which the district's increments are pledged.
new text end
new text begin
The calculation of the amount under clause (2) must reflect any adjustments to original
net tax capacity made under subdivision 1, paragraphs (d) and (e), for the homestead
market value exclusion.
new text end
new text begin
(c) The authority must notify the county auditor of its election under this section no
later than July 1, 2014. Notifications made by July 1, 2013, are effective beginning for
taxes payable in 2014, and notifications made after July 1, 2013, are effective beginning
for taxes payable in 2015.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
and applies to all tax increment financing districts regardless of when the request for
certification was made.
new text end
Sec. 7.
Minnesota Statutes 2012, section 473F.08, is amended by adding a subdivision
to read:
new text begin Subd. 3c. new text end
new text begin Mall of America. new text end
new text begin
(a) When computing the net tax capacity under section
473F.05, the Hennepin County auditor shall exclude the captured tax capacity of Tax
Increment Financing Districts No. 1-C and No. 1-G in the city of Bloomington.
new text end
new text begin
(b) Notwithstanding the provisions of subdivision 2, paragraph (a), the
commercial-industrial contribution percentage for the city of Bloomington is the
contribution net tax capacity divided by the total net tax capacity of commercial-industrial
property in the city, excluding any commercial-industrial property that is captured tax
capacity of Tax Increment Financing Districts No. 1-C and No. 1-G.
new text end
new text begin
(c) The property taxes to be paid on commercial-industrial tax capacity that is
included in the captured tax capacity of Tax Increment Financing Districts No. 1-C and
No. 1-G in the city of Bloomington must be determined as described in subdivision 6,
except that the portion of the tax that is based on the areawide tax rate is to be treated
as tax increment under section 469.176.
new text end
new text begin
(d) The provisions of this subdivision take effect only if the clerk of the city of
Bloomington certifies to the Hennepin County auditor that the city has entered into a
binding written agreement with the Metropolitan Council to repair and restore, or to
replace, the old Cedar Avenue bridge for use by bicycle commuters and recreational users.
new text end
new text begin
(e) This subdivision expires on the earliest of the following dates:
new text end
new text begin
(1) when the tax increment financing districts have been decertified in 2024 or 2035,
as provided by section 10, subdivision 2 or 4; or
new text end
new text begin
(2) on January 1, 2014, if the city clerk fails to make the certification provided in
paragraph (d) or if the city fails to file its local approval of section 18 with the secretary
of state by December 31, 2013.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning for property taxes payable
in 2014.
new text end
Sec. 8.
Laws 2008, chapter 366, article 5, section 26, is amended to read:
Sec. 26. BLOOMINGTON TAX INCREMENT FINANCING; FIVE-YEAR
RULE.
new text begin (a) new text end The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that
activities must be undertaken within a five-year period from the date of certification of
a tax increment financing district, are increased to a deleted text begin ten-yeardeleted text end new text begin 15-yearnew text end period for the
Port Authority of the City of Bloomington's Tax Increment Financing District No. 1-I,
Bloomington Central Station.
new text begin
(b) Notwithstanding the provisions of Minnesota Statutes, section 469.176, or any
other law to the contrary, the city of Bloomington and its port authority may extend the
duration limits of the district for a period through December 31, 2039.
new text end
new text begin
(c) Effective for taxes payable in 2014, tax increment for the district must be
computed using the current local tax rate, notwithstanding the provisions of Minnesota
Statutes, section 469.177, subdivision 1a.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
Paragraphs (a) and (c) are effective upon compliance by
the governing body of the city of Bloomington with the requirements of Minnesota
Statutes, section 645.021, subdivision 3. Paragraph (b) is effective upon compliance by
the governing bodies of the city of Bloomington, Hennepin County, and Independent
School District No. 271 with the requirements of Minnesota Statutes, sections 469.1782,
subdivision 2, and 645.021, subdivision 3.
new text end
Sec. 9.
Laws 2008, chapter 366, article 5, section 34, as amended by Laws 2009,
chapter 88, article 5, section 11, is amended to read:
Sec. 34. CITY OF OAKDALE; deleted text begin ORIGINAL TAX CAPACITYdeleted text end new text begin PARCELS
DEEMED OCCUPIEDnew text end .
deleted text begin
(a) The provisions of this section apply to redevelopment tax increment financing
districts created by the Housing and Redevelopment Authority in and for the city of
Oakdale in the areas comprised of the parcels with the following parcel identification
numbers: (1) 3102921320053; 3102921320054; 3102921320055; 3102921320056;
3102921320057; 3102921320058; 3102921320062; 3102921320063; 3102921320059;
3102921320060; 3102921320061; 3102921330005; and 3102921330004; and (2)
2902921330001 and 2902921330005.
deleted text end
deleted text begin
(b) For a district subject to this section, the Housing and Redevelopment Authority
may, when requesting certification of the original tax capacity of the district under
Minnesota Statutes, section 469.177, elect to have the original tax capacity of the district
be certified as the tax capacity of the land.
deleted text end
deleted text begin
(c) The authority to request certification of a district under this section expires on
July 1, 2013.
deleted text end
new text begin
(a) Parcel numbers 3102921320054, 3102921320055, 3102921320056,
3102921320057, 3102921320061, and 3102921330004 are deemed to meet the
requirements of Minnesota Statutes, section 469.174, subdivision 10, paragraph (d),
notwithstanding any contrary provisions of that paragraph, if the following conditions
are met:
new text end
new text begin
(1) a building located on any part of each of the specified parcels was demolished after
the Housing and Redevelopment Authority for the city of Oakdale adopted a resolution
under Minnesota Statutes, section 469.174, subdivision 10, paragraph (d), clause (3);
new text end
new text begin
(2) the building was removed either by the authority, by a developer under a
development agreement with the Housing and Redevelopment Authority for the city of
Oakdale, or by the owner of the property without entering into a development agreement
with the Housing and Redevelopment Authority for the city of Oakdale; and
new text end
new text begin
(3) the request for certification of the parcel as part of a district is filed with the
county auditor by December 31, 2017.
new text end
new text begin
(b) The provisions of this section allow an election by the Housing and
Redevelopment Authority for the city of Oakdale for the parcels deemed occupied under
paragraph (a), notwithstanding the provisions of Minnesota Statutes, sections 469.174,
subdivision 10, paragraph (d), and 469.177, subdivision 1, paragraph (f).
new text end
new text begin
(c) The city may elect, in the tax increment financing plan, to collect increment from
a redevelopment district created under the provisions of this section for an additional ten
years beyond the limit in Minnesota Statutes, section 469.176, subdivision 1b.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective upon compliance by the governing
body of the city of Oakdale with the requirements of Minnesota Statutes, section 645.021,
subdivision 3, except that the provisions of paragraph (c) are effective only upon
compliance with Minnesota Statutes, section 469.1782, subdivision 2, by Ramsey County
and Independent School District No. 622.
new text end
Sec. 10.
Laws 2010, chapter 216, section 55, is amended to read:
Sec. 55. OAKDALE; TAX INCREMENT FINANCING DISTRICT.
Subdivision 1.
Duration of district.
Notwithstanding the provisions of Minnesota
Statutes, section 469.176, subdivision 1b, the city of Oakdale may collect tax increments
from Tax Increment Financing District No. 6 (Bergen Plaza) through December 31, deleted text begin 2024
deleted text end new text begin 2040new text end , subject to the conditions described in subdivision 2.
Subd. 2.
Conditions for extension.
(a) Subdivision 1 applies only if the following
conditions are met:
(1) by July 1, 2011, the city of Oakdale has entered into a development agreement
with a private developer for development or redevelopment of all or a substantial part of
the deleted text begin areadeleted text end new text begin parcels described in clause (2)new text end ; and
(2) by November 1, 2011, the city of Oakdale or a private developer commences
construction of streets, traffic improvements, water, sewer, or related infrastructure that
serves one or both of the parcels with the following parcel identification numbers:
2902921330001 and 2902921330005. For the purposes of this section, construction
commences upon grading or other visible improvements that are part of the subject
infrastructure.
(b) All tax increments received by the city of Oakdale under subdivision 1 after
December 31, 2016, must be used only to pay costs that are bothnew text begin :new text end
(1) related to redevelopment of the parcels specified in this subdivisionnew text begin or
parcel numbers 3102921320053, 3102921320054, 3102921320055, 3102921320056,
3102921320057, 3102921320058, 3102921320059, 3102921320060, 3102921320061,
3102921320062, 3102921320063, 3102921330004, and 3102921330005,new text end including,
without limitation, any deleted text begin of thedeleted text end infrastructure deleted text begin referenced in this subdivisiondeleted text end new text begin that serves
any of the referenced parcelsnew text end ; and
(2) otherwise eligible under law to be paid with increments from the specified tax
increment financing districtdeleted text begin , except the authority under this clause does not apply to
increments collected after the conclusion of the duration limit under general lawdeleted text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective upon compliance by the governing
body of the city of Oakdale with the requirements of Minnesota Statutes, section 645.021,
subdivision 3, except that the amendments to subdivision 1 are effective only upon
compliance with Minnesota Statutes, section 469.1782, subdivision 2, by Ramsey County
and Independent School District No. 622.
new text end
Sec. 11. new text begin CITY OF BLOOMINGTON; TAX INCREMENT FINANCING.
new text end
new text begin Subdivision 1. new text end
new text begin
Addition of property to Tax Increment Financing District
No. 1-G.
new text end
new text begin
(a) Notwithstanding the provisions of Minnesota Statutes, section 469.175,
subdivision 4, or any other law to the contrary, the governing bodies of the Port Authority
of the city of Bloomington and the city of Bloomington may elect to eliminate the real
property north of the existing building line on Lot 1, Block 1, Mall of America 7th
Addition, exclusive of Lots 2 and 3 from Tax Increment Financing District No. 1-C
within Industrial Development District No. 1 Airport South in the city of Bloomington,
Minnesota, and expand the boundaries of Tax Increment Financing District No. 1-G
to include that property.
new text end
new text begin
(b) If the city elects to transfer parcels under this authority, the county auditor shall
transfer the original tax capacity of the affected parcels from Tax Increment Financing
District No. 1-C to Tax Increment Financing District No. 1-G.
new text end
new text begin Subd. 2. new text end
new text begin Authority to extend duration limit; computation of increment. new text end
new text begin
(a)
Notwithstanding Minnesota Statutes, section 469.176, or Laws 1996, chapter 464, article
1, section 8, or any other law to the contrary, the city of Bloomington and its port authority
may extend the duration limits of Tax Increment Financing Districts No. 1-C and No.
1-G through December 31, 2034.
new text end
new text begin
(b) Effective for property taxes payable in 2017 through 2034, the captured tax
capacity of Tax Increment Financing District No. 1-C must be included in computing the
tax rates of each local taxing district and the tax increment equals only the amount of tax
computed under Minnesota Statutes, section 473F.08, subdivision 3c, paragraph (c).
new text end
new text begin
(c) Effective for property taxes payable in 2019 through 2034, the captured tax
capacity of Tax Increment Financing District No. 1-G must be included in computing the
tax rates of each local taxing district and the tax increment for the district equals only
the amount of tax computed under Minnesota Statutes, section 473F.08, subdivision
3c, paragraph (c).
new text end
new text begin Subd. 3. new text end
new text begin Treatment of increment. new text end
new text begin
Increments received under the provisions
of subdivision 2, paragraph (b) or (c), and Minnesota Statutes, section 473F.08,
subdivision 3c, are deemed to be tax increments of Tax Increment Financing District No.
1-G, notwithstanding any law to the contrary, and without regard to whether they are
attributable to captured tax capacity of Tax Increment Financing District No. 1-C.
new text end
new text begin Subd. 4. new text end
new text begin Condition. new text end
new text begin
The authority under this section expires and Tax Increment
Financing Districts No. 1-C and No. 1-G must be decertified for taxes payable in 2024
and thereafter, if the total estimated market value of improvements for parcels located in
Tax Increment Financing District No. 1-G, as modified, do not exceed $100,000,000
by taxes payable in 2023.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective upon compliance of the governing
body of the city of Bloomington with the requirements of Minnesota Statutes, section
645.021, subdivision 3, but only if the city enters into a binding written agreement with
the Metropolitan Council to repair and restore, or to replace, the old Cedar Avenue bridge
for use by bicycle commuters and recreational users. This section is effective without
approval of the county and school district under Minnesota Statutes, section 469.1782,
subdivision 2. The legislature finds that the county and school district are not "affected
local government units" within the meaning of Minnesota Statutes, section 469.1782,
because the provision allowing extended collection of increment by the tax increment
financing districts does not affect their tax bases and tax rates dissimilarly to other counties
and school districts in the metropolitan area.
new text end
Sec. 12. new text begin ST. CLOUD; TAX INCREMENT FINANCING.
new text end
new text begin
The request for certification of Tax Increment Financing District No. 2, commonly
referred to as the Norwest District, in the city of St. Cloud is deemed to have been made
on or after August 1, 1979, and before July 1, 1982. Revenues derived from tax increment
for that district must be treated for purposes of any law as revenue of a tax increment
financing district for which the request for certification was made during that time period.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective upon approval by the governing
body of the city of St. Cloud and compliance with Minnesota Statutes, section 645.021,
subdivision 3.
new text end
Sec. 13. new text begin DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY; TAX
INCREMENT FINANCING DISTRICT.
new text end
new text begin Subdivision 1. new text end
new text begin Authorization. new text end
new text begin
Notwithstanding the provisions of any other law,
the Dakota County Community Development Agency may establish a redevelopment tax
increment financing district comprised of the properties that were:
new text end
new text begin
(1) included in the CDA 10 Robert and South Street district in the city of West
St. Paul; and
new text end
new text begin
(2) not decertified before July 1, 2012.
new text end
new text begin
The district created under this section terminates no later than December 31, 2018.
new text end
new text begin Subd. 2. new text end
new text begin Special rules. new text end
new text begin
The requirements for qualifying a redevelopment district
under Minnesota Statutes, section 469.174, subdivision 10, do not apply to parcels located
within the district. Minnesota Statutes, section 469.176, subdivision 4j, do not apply to the
district. The original tax capacity of the district is $93,239.
new text end
new text begin Subd. 3. new text end
new text begin Authorized expenditures. new text end
new text begin
Tax increment from the district may be
expended to pay for any eligible activities authorized by Minnesota Statutes, chapter 469,
within the redevelopment area that includes the district, provided that the boundaries of
the redevelopment area may not be expanded to add new area after April 1, 2013. All
expenditures for eligible activities are deemed to be activities within the district under
Minnesota Statutes, section 469.1763, subdivisions 2 to 4.
new text end
new text begin Subd. 4. new text end
new text begin Adjusted net tax capacity. new text end
new text begin
The captured tax capacity of the district must
be included in the adjusted net tax capacity of the city, county, and school district for the
purposes of determining local government aid, education aid, and county program aid.
The county auditor shall report to the commissioner of revenue the amount of the captured
tax capacity for the district at the time the assessment abstracts are filed.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective upon compliance by the governing
body of the Dakota County Community Development Agency with the requirements of
Minnesota Statutes, section 645.021, subdivision 3.
new text end
Sec. 14. new text begin CITY OF GLENCOE; TAX INCREMENT FINANCING DISTRICT
EXTENSION.
new text end
new text begin Subdivision 1. new text end
new text begin Duration of district. new text end
new text begin
Notwithstanding the provisions of Minnesota
Statutes, section 469.176, subdivision 1b, paragraph (a), clause (4), or any other law to the
contrary, the city of Glencoe may collect tax increments from Tax Increment Financing
District No. 4 (McLeod County District No. 007) through December 31, 2023, subject to
the conditions in subdivision 2.
new text end
new text begin Subd. 2. new text end
new text begin Exclusive use of revenues. new text end
new text begin
(a) All tax increments derived from Tax
Increment Financing District No. 4 (McLeod County District No. 007) that are collected
after December 31, 2013, must be used only to pay debt service on or to defease bonds that
were outstanding on January 1, 2013 and that were issued to finance improvements serving:
new text end
new text begin
(1) Tax Increment Financing District No. 14 (McLeod County District No. 033)
(Downtown);
new text end
new text begin
(2) Tax Increment Financing District No. 15 (McLeod County District No. 035)
(Industrial Park); and
new text end
new text begin
(3) benefited properties as further described in proceedings related to the city's series
2007A bonds, dated September 1, 2007, and any bonds issued to refund those bonds.
new text end
new text begin
(b) Increments may also be used to pay debt service on or to defease bonds issued to
refund the bonds described in paragraph (a), if the refunding bonds do not increase the
present value of debt service due on the refunded bonds when the refunding is closed.
new text end
new text begin
(c) When the bonds described in paragraphs (a) and (b) have been paid or defeased,
the district must be decertified and any remaining increment returned to the city, county,
and school district as provided in Minnesota Statutes, section 469.176, subdivision 2,
paragraph (c), clause (4).
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective upon compliance by the governing
bodies of the city of Glencoe, McLeod County, and Independent School District No.
2859 with the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and
645.021, subdivision 3.
new text end
Sec. 15. new text begin CITY OF ELY; TAX INCREMENT FINANCING.
new text end
new text begin Subdivision 1. new text end
new text begin Extension of district. new text end
new text begin
Notwithstanding Minnesota Statutes, section
469.176, subdivision 1b, or any other law to the contrary, the city of Ely may collect
tax increment from Tax Increment Financing District No. 1 through December 31,
2021. Increments from the district may only be used to pay binding obligations and
administrative expenses.
new text end
new text begin Subd. 2. new text end
new text begin Binding obligations. new text end
new text begin
For purposes of this section, "binding obligations"
means the binding contractual or debt obligation of Tax Increment Financing District
No. 1 entered into before January 1, 2013.
new text end
new text begin Subd. 3. new text end
new text begin Expenditures outside district. new text end
new text begin
Notwithstanding Minnesota Statutes,
section 469.1763, subdivision 2, the governing body of the city of Ely may elect to
transfer revenues derived from increments from its Tax Increment Financing District No.
3 to the tax increment account established under Minnesota Statutes, section 469.177,
subdivision 5, for Tax Increment Financing District No. 1. The amount that may be
transferred is limited to the lesser of:
new text end
new text begin
(1) $168,000; or
new text end
new text begin
(2) the total amount due on binding obligations and outstanding on that date, less the
amount of increment collected by Tax Increment Financing District No. 1 after December
31, 2012, and administrative expenses of Tax Increment Financing District No. 1 incurred
after December 31, 2012.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective upon approval by the governing
bodies of the city of Ely, St. Louis County, and Independent School District No. 696 with
the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021,
subdivision 3.
new text end
Sec. 16. new text begin CITY OF MAPLEWOOD; TAX INCREMENT FINANCING
DISTRICT; SPECIAL RULES.
new text end
new text begin
(a) If the city of Maplewood elects, upon the adoption of a tax increment financing
plan for a district, the rules under this section apply to one or more redevelopment
tax increment financing districts established by the city or the economic development
authority of the city. The area within which the redevelopment tax increment districts may
be created is parcel 362922240002 (the "parcel") or any replatted parcels constituting a
part of the parcel and the adjacent rights-of-way. For purposes of this section, the parcel is
the "3M Renovation and Retention Project Area" or "project area."
new text end
new text begin
(b) The requirements for qualifying redevelopment tax increment districts under
Minnesota Statutes, section 469.174, subdivision 10, do not apply to the parcel, which is
deemed eligible for inclusion in a redevelopment tax increment district.
new text end
new text begin
(c) The 90 percent rule under Minnesota Statutes, section 469.176, subdivision
4j, does not apply to the parcel.
new text end
new text begin
(d) The expenditures outside district rule under Minnesota Statutes, section
469.1763, subdivision 2, does not apply; the five-year rule under Minnesota Statutes,
section 469.1763, subdivision 3, is extended to ten years; and expenditures must only
be made within the project area.
new text end
new text begin
(e) If, after one year from the date of certification of the original net tax capacity
of the tax increment district, no demolition, rehabilitation, or renovation of property has
been commenced on a parcel located within the tax increment district, no additional tax
increment may be taken from that parcel, and the original net tax capacity of the parcel
shall be excluded from the original net tax capacity of the tax increment district. If 3M
Company subsequently commences demolition, rehabilitation, or renovation, the authority
shall certify to the county auditor that the activity has commenced, and the county auditor
shall certify the net tax capacity thereof as most recently certified by the commissioner
of revenue and add it to the original net tax capacity of the tax increment district. The
authority must submit to the county auditor evidence that the required activity has taken
place for each parcel in the district.
new text end
new text begin
(f) The authority to approve a tax increment financing plan and to establish a tax
increment financing district under this section expires December 31, 2018.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective upon approval by the governing
body of the city of Maplewood and upon compliance with Minnesota Statutes, section
645.021, subdivision 3.
new text end
Sec. 17. new text begin CITY OF MINNEAPOLIS; STREETCAR FINANCING.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
(a) For purposes of this section, the following terms
have the meanings given them.
new text end
new text begin
(b) "City" means the city of Minneapolis.
new text end
new text begin
(c) "County" means Hennepin County.
new text end
new text begin
(d) "District" means the areas certified by the city under subdivision 2 for collection
of value capture taxes.
new text end
new text begin
(e) "Project area" means the area including one city block on either side of a streetcar
line designated by the city to serve the downtown and adjacent neighborhoods of the city.
new text end
new text begin Subd. 2. new text end
new text begin Authority to establish district. new text end
new text begin
(a) The governing body of the city may, by
resolution, establish a value capture district consisting of some or all of the taxable parcels
located within one or more of the following areas of the city, as described in the resolution:
new text end
new text begin
(1) the area bounded by Nicollet Avenue on the west, 16th Street East on the south,
First Avenue South on the east, and 14th Street East on the north;
new text end
new text begin
(2) the area bounded by Spruce Place on the west, 14th Street West on the south,
LaSalle Avenue on the east, and Grant Street West on the north;
new text end
new text begin
(3) the area bounded by Nicollet Avenue or Mall on the west, Fifth Street South on
the south, Marquette Avenue on the east, and Fourth Street South on the north; and
new text end
new text begin
(4) the area bounded by First Avenue North on the west, Washington Avenue on the
south, Hennepin Avenue on the east, and Second Street North on the north.
new text end
new text begin
(b) The city may establish the district and the project area only after holding a public
hearing on its proposed creation after publishing notice of the hearing and the proposal at
least once not less than ten days nor more than 30 days before the date of the hearing.
new text end
new text begin Subd. 3. new text end
new text begin Calculation of value capture district; administrative provisions. new text end
new text begin
(a) If
the city establishes a value capture district under subdivision 2, the city shall request the
county auditor to certify the district for calculation of the district's tax revenues.
new text end
new text begin
(b) For purposes of calculating the tax revenues of the district, the county auditor
shall treat the district as if it were a request for certification of a tax increment financing
district under the provisions of Minnesota Statutes, section 469.177, subdivision 1,
and shall calculate the tax revenues of the district for each year of its duration under
subdivision 4 as equaling the amount of tax increment that would be computed by
applying the provisions of Minnesota Statutes, section 469.177, subdivisions 1, 2, and
3, to determine captured tax capacity and multiplying by the current tax rate, excluding
the state general tax rate. The city shall provide the county auditor with the necessary
information to certify the district, including the option for calculating revenues derived
from the areawide tax rate under Minnesota Statutes, chapter 473F.
new text end
new text begin
(c) The county auditor shall pay to the city at the same times provided for settlement
of taxes and payment of tax increments the tax revenues of the district. The city must use
the tax revenues as provided under subdivision 4.
new text end
new text begin Subd. 4. new text end
new text begin Permitted uses of district tax revenues. new text end
new text begin
(a) In addition to paying for
reasonable administrative costs of the district, the city may spend tax revenues of the
district for property acquisition, improvements, and equipment to be used for operations
within the project area, along with related costs, for:
new text end
new text begin
(1) planning, design, and engineering services related to the construction of the
streetcar line;
new text end
new text begin
(2) acquiring property for, constructing, and installing a streetcar line;
new text end
new text begin
(3) acquiring and maintaining equipment and rolling stock and related facilities, such
as maintenance facilities, which need not be located in the project area;
new text end
new text begin
(4) acquiring, constructing, or improving transit stations; and
new text end
new text begin
(5) acquiring or improving public space, including the construction and installation
of improvements to streets and sidewalks, decorative lighting and surfaces, and plantings
related to the streetcar line.
new text end
new text begin
(b) The city may issue bonds or other obligations under Minnesota Statutes, chapter
475, without an election, to fund acquisition or improvement of property of a capital
nature authorized by this section, including any costs of issuance. The city may also issue
bonds or other obligations to refund those bonds or obligations. Payment of principal
and interest on the bonds or other obligations issued under this paragraph is a permitted
use of the district's tax revenues.
new text end
new text begin
(c) Tax revenues of the district may not be used for the operation of the streetcar line.
new text end
new text begin Subd. 5. new text end
new text begin Duration of the district. new text end
new text begin
A district established under this section is limited
to the lesser of (1) 25 years of tax revenues, or (2) the time necessary to collect tax revenues
equal to the amount of the capital costs permitted under subdivision 4 or the amount needed
to pay or defease bonds or other obligations issued under subdivision 4, whichever is later.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 18. new text begin CITY OF BLOOMINGTON; OLD CEDAR AVENUE BRIDGE.
new text end
new text begin
(a) Notwithstanding any law to the contrary, the city of Bloomington shall transfer
from the tax increment financing accounts for its Tax Increment Financing District No.
1-C and Tax Increment Financing District No. 1-G an amount equal to the tax increment
for each district that is computed under the provisions of Minnesota Statutes, section
473F.08, subdivision 3c, for taxes payable in 2014 to an account or fund established for
the repair, restoration, or replacement of the Old Cedar Avenue bridge for use by bicycle
commuters and recreational users. The city is authorized to and must use the transferred
funds to complete the repair, renovation, or replacement of the bridge.
new text end
new text begin
(b) No signs, plaques, or markers acknowledging or crediting donations for,
sponsorships of, or naming rights may be posted on or in the vicinity of the Old Cedar
Avenue bridge.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective upon compliance by the city of
Bloomington with the requirements of Minnesota Statutes, section 645.021, subdivision 3.
new text end
ARTICLE 10
DESTINATION MEDICAL CENTER
Section 1.
Minnesota Statutes 2012, section 297A.71, is amended by adding a
subdivision to read:
new text begin Subd. 45. new text end
new text begin
Construction materials, public infrastructure related to the
Destination medical center.
new text end
new text begin
Materials and supplies used in, and equipment incorporated
into, the construction and improvement of publicly owned buildings and infrastructure
included in the development plan adopted under section 469.42, and financed with public
funds, are exempt.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after
June 30, 2015.
new text end
Sec. 2.
new text begin
[469.40] DEFINITIONS.
new text end
new text begin Subdivision 1. new text end
new text begin Application. new text end
new text begin
For the purposes of section 469.40 to 469.46, the terms
defined in this section have the meanings given them.
new text end
new text begin Subd. 2. new text end
new text begin City. new text end
new text begin
"City" means the city of Rochester.
new text end
new text begin Subd. 3. new text end
new text begin County. new text end
new text begin
"County" means Olmsted County.
new text end
new text begin Subd. 4. new text end
new text begin
Destination Medical Center Corporation, corporation, DMCC.
new text end
new text begin
"Destination Medical Center Corporation," "corporation," or "DMCC" means the
nonprofit corporation created by the city as provided in section 469.41, and organized
under chapter 317A.
new text end
new text begin Subd. 5. new text end
new text begin Destination medical center development district. new text end
new text begin
"Destination medical
center development district" or "development district" means a geographic area in the
city identified in the adopted DMCC development plan in which public infrastructure
projects are implemented.
new text end
new text begin Subd. 6. new text end
new text begin Development plan. new text end
new text begin
"Development plan" means the plan adopted by
the DMCC under section 469.42.
new text end
new text begin Subd. 7. new text end
new text begin Medical business entity. new text end
new text begin
"Medical business entity" means a medical
business entity with its principal place of business in the city that, as of the effective date
of this section, together with all business entities of which it is the sole member or sole
shareholder, collectively employs more than 30,000 persons in the state.
new text end
new text begin Subd. 8. new text end
new text begin Public infrastructure project. new text end
new text begin
(a) "Public infrastructure project" means
a project financed in part or whole with public money in order to support the medical
business entity's development plans, as identified in the adopted DMCC development
plan. A project may be to:
new text end
new text begin
(1) acquire real property and other assets associated with the real property;
new text end
new text begin
(2) demolish, repair, or rehabilitate buildings;
new text end
new text begin
(3) remediate land and buildings as required to prepare the property for acquisition
or development;
new text end
new text begin
(4) install, construct, or reconstruct elements of public infrastructure required to
support the overall development of the destination medical center development district,
including, but not limited to, streets, roadways, utilities systems and related facilities,
utility relocations and replacements, network and communication systems, streetscape
improvements, drainage systems, sewer and water systems, subgrade structures and
associated improvements, landscaping, façade construction and restoration, wayfinding
and signage, and other components of community infrastructure;
new text end
new text begin
(5) acquire, construct or reconstruct, and equip parking facilities and other facilities
to encourage intermodal transportation and public transit;
new text end
new text begin
(6) install, construct or reconstruct, furnish, and equip parks, cultural, and
recreational facilities, facilities to promote tourism and hospitality, conferencing and
conventions, broadcast and related multimedia infrastructure;
new text end
new text begin
(7) make related site improvements, including, without limitation, excavation, earth
retention, soil stabilization and correction, site improvements to support the destination
medical center development district; and
new text end
new text begin
(8) prepare land for private development and to sell or lease land.
new text end
new text begin
(b) A public infrastructure project is not a business subsidy under section 116J.993.
new text end
Sec. 3.
new text begin
[469.41] DESTINATION MEDICAL CENTER CORPORATION
ESTABLISHED.
new text end
new text begin Subdivision 1. new text end
new text begin DMCC created. new text end
new text begin
The city shall establish a destination medical
center corporation as a nonprofit corporation under chapter 317A to provide the city with
expertise in preparing and implementing the development plan to establish the city as a
destination medical center. Except as provided in this article, the nonprofit corporation
is not subject to laws governing the city.
new text end
new text begin Subd. 2. new text end
new text begin Membership. new text end
new text begin
(a) The corporation's governing board consists of nine
voting members, as follows:
new text end
new text begin
(1) the mayor of the city, or the mayor's designee, subject to approval by the city
council;
new text end
new text begin
(2) a member of the city council, selected by the city council;
new text end
new text begin
(3) a member of the county board, selected by the county board;
new text end
new text begin
(4) two representatives of the medical business entity defined in section 469.40,
subdivision 7, appointed by the city council from among five candidates nominated by the
medical business entity;
new text end
new text begin
(5) two representatives of the city business community other than the medical
business entity, appointed by the city council from among five candidates nominated by
the Rochester Area Chamber of Commerce; and
new text end
new text begin
(6) two members, appointed by the governor.
new text end
new text begin
(b) Appointing authorities must make their appointments as soon as practicable after
the effective date of this section.
new text end
new text begin Subd. 3. new text end
new text begin Bylaws. new text end
new text begin
The corporation shall adopt bylaws governing the terms of
members, filling vacancies, removal of members, selection of officers and other personnel
and contractors, and other matters of organization and operation of the corporation.
new text end
new text begin Subd. 4. new text end
new text begin Open meeting law; data practices. new text end
new text begin
Meetings of the corporation and any
committee or subcommittee of the corporation are subject to the open meeting law in
chapter 13D. The corporation is a government entity for purposes of chapter 13.
new text end
new text begin Subd. 5. new text end
new text begin Conflicts of interest. new text end
new text begin
Except for the members appointed under subdivision
2, paragraph (a), clause (4), to represent the medical business entity, within one year
prior to or at any time during a member's term of service on the corporation's governing
board, a member must not be employed by, be a member of the board of directors of, or
otherwise be a representative of the medical business entity. No member may serve as a
lobbyist, as defined under section 10A.01, subdivision 21.
new text end
new text begin Subd. 6. new text end
new text begin Powers; gifts. new text end
new text begin
The corporation may exercise any other powers that are
granted by its articles of incorporation and bylaws to the extent that those powers are not
inconsistent with the provisions of sections 469.40 to 469.46. Notwithstanding any law to
the contrary, the corporation may accept and use gifts of money or in-kind and may use
any of its money or assets, other than money or assets received from the city, county, or
state, to develop and implement the adopted development plan.
new text end
new text begin Subd. 7. new text end
new text begin Dissolution. new text end
new text begin
The city shall provide for the terms for dissolution of the
corporation in the articles of incorporation.
new text end
Sec. 4.
new text begin
[469.42] DEVELOPMENT PLAN.
new text end
new text begin Subdivision 1. new text end
new text begin Development plan; adoption by DMCC; notice; findings. new text end
new text begin
(a)
The corporation shall prepare and adopt a development plan. The corporation must
hold a public hearing before adopting a development plan. At least 45 days before the
hearing, the corporation shall make copies of the proposed plan available to the public at
the corporation and city offices during normal business hours, on the corporation's and
city's Web site, and as otherwise determined appropriate by the corporation. At least ten
days before the hearing, the corporation shall publish notice of the hearing in a daily
newspaper of general circulation in the city. The development plan may not be adopted
unless the corporation finds by resolution that:
new text end
new text begin
(1) the plan provides an outline for the development of the city as a destination
medical center, and the plan is sufficiently complete, including the identification of planned
and anticipated projects, to indicate its relationship to definite state and local objectives;
new text end
new text begin
(2) the proposed development affords maximum opportunity, consistent with the
needs of the city, county, and state, for the development of the city by private enterprise
as a destination medical center;
new text end
new text begin
(3) the proposed development conforms to the general plan for the development of
the city and is consistent with the city comprehensive plan;
new text end
new text begin
(4) the plan includes:
new text end
new text begin
(i) strategic planning consistent with a destination medical center in the core areas of
commercial research and technology, learning environment, hospitality and convention,
sports and recreation, livable communities, including mixed-use urban development
and neighborhood residential development, retail/dining/entertainment, and health and
wellness;
new text end
new text begin
(ii) estimates of short- and long-range fiscal and economic impacts;
new text end
new text begin
(iii) a framework to identify and prioritize short- and long-term public investment
and public infrastructure project development and to facilitate private investment and
development;
new text end
new text begin
(iv) land use planning;
new text end
new text begin
(v) transportation and transit planning;
new text end
new text begin
(vi) operational planning required to support the medical center development
district; and
new text end
new text begin
(vii) ongoing market research plans; and
new text end
new text begin
(5) the city has approved the plan.
new text end
new text begin
(b) The identification of planned and anticipated projects under paragraph (a), clause
(1), must give priority to projects that will pay wages at least equal to the basic cost of
living wage as calculated by the commissioner of employment and economic development
for the county in which the project is located. The calculation of the basic cost of living
wage shall be done as provided for under Minnesota Statutes, section 116J.013, if enacted
by the 2013 legislature.
new text end
new text begin Subd. 2. new text end
new text begin Modification of development plan. new text end
new text begin
The corporation may modify the
development plan at any time. The corporation must update the development plan not less
than every five years. A modification or update under this subdivision must be adopted by
the corporation upon the notice and after the public hearing and findings required for the
original adoption of the development plan.
new text end
new text begin Subd. 3. new text end
new text begin Medical center development districts; creation; notice; findings. new text end
new text begin
As
part of the development plan, the corporation may create and define the boundaries of
medical center development districts and subdistricts at any place or places within the
city. Projects may be undertaken within defined medical center development districts
consistent with the development plan.
new text end
new text begin Subd. 4. new text end
new text begin DMCC consultant. new text end
new text begin
(a) The corporation may engage a business entity
consultant to provide experience and expertise in developing the destination medical
center. The consultant may assist the corporation in preparing the development plan and
provide services to assist the corporation or city in implementing, consistent with the
development plan, the goals, objectives, and strategies in the development plan, including,
but not limited to:
new text end
new text begin
(1) developing and updating the criteria for evaluating and underwriting
development proposals;
new text end
new text begin
(2) implementing the development plan, including soliciting and evaluating
proposals for development and evaluating and making recommendations to the corporation
and the city regarding those proposals;
new text end
new text begin
(3) providing transactional services in connection with approved projects;
new text end
new text begin
(4) developing patient, visitor, and community outreach programs for a destination
medical center development district;
new text end
new text begin
(5) working with the corporation to acquire and facilitate the sale, lease, or other
transactions involving land and real property;
new text end
new text begin
(6) seeking financial support for the corporation, the city, and a project;
new text end
new text begin
(7) partnering with other development agencies and organizations and the county in
joint efforts to promote economic development and establish a destination medical center;
new text end
new text begin
(8) supporting and administering the planning and development activities required to
implement the development plan;
new text end
new text begin
(9) preparing and supporting the marketing and promotion of the medical center
development district;
new text end
new text begin
(10) preparing and implementing a program for community and public relations in
support of the medical center development district;
new text end
new text begin
(11) assisting the corporation or city and others in applications for federal grants, tax
credits, and other sources of funding to aid both private and public development; and
new text end
new text begin
(12) making other general advisory recommendations to the corporation and the
city, as requested.
new text end
new text begin
(b) The corporation may contract with the consultant to provide administrative
services to the corporation with regard to the destination medical center plan
implementation. The corporation may pay for those services out of any revenue sources
available to it.
new text end
new text begin Subd. 5. new text end
new text begin Audit of consultant contracts. new text end
new text begin
Any contract for services between the
corporation and a consultant paid, in whole or in part, with public money gives the
corporation, the city, and the state auditor the right to audit the books and records of the
consultant that are necessary to certify (1) the nature and extent of the services furnished
pursuant to the contract, and (2) that the payment for services and related disbursements
complies with all state laws, regulations, and the terms of the contract. Any contract for
services between the corporation and the consultant paid, in whole or in part, with public
money shall require the corporation to maintain for the life of the corporation accurate and
complete books and records directly relating to the contract.
new text end
new text begin Subd. 6. new text end
new text begin Report. new text end
new text begin
By January 15 of each year, the corporation and city must submit
a report to the chairs and ranking minority members of the legislative committees with
jurisdiction over local and state government operations, economic development, and taxes,
and to the commissioners of revenue and employment and economic development, and
the county. The corporation and city must also submit the report as provided in section
3.195. The report must include:
new text end
new text begin
(1) the adopted development plan and any proposed changes to the development plan;
new text end
new text begin
(2) progress of projects identified in the development plan;
new text end
new text begin
(3) actual costs and financing sources, including the amount paid with state aid under
section 469.46 and required local contributions, of projects completed in the previous two
years by the corporation, city, the county, and the medical business entity;
new text end
new text begin
(4) estimated costs and financing sources for projects to be begun in the next two
years by the corporation, city, the county, and the medical business entity; and
new text end
new text begin
(5) debt service schedules for all outstanding obligations of the city for debt issued
for projects identified in the plan.
new text end
Sec. 5.
new text begin
[469.43] CITY POWERS, DUTIES; AUTHORITY TO ISSUE BONDS.
new text end
new text begin Subdivision 1. new text end
new text begin Port authority powers. new text end
new text begin
The city may exercise the powers of a
port authority under sections 469.048 to 469.068, for the purposes of implementing the
destination medical center development plan.
new text end
new text begin Subd. 2. new text end
new text begin Support to the corporation. new text end
new text begin
The city may provide financial and
administrative support and office and other space to the corporation. The city may
appropriate money of the city to the corporation for its work.
new text end
new text begin Subd. 3. new text end
new text begin City to issue debt. new text end
new text begin
The city may issue general obligation bonds, revenue
bonds, or other obligations, as it determines appropriate, to finance public infrastructure
projects, as provided by chapter 475. Notwithstanding section 475.53 obligations issued
under this section are not subject to the limits on net debt, regardless of their source of
security or payment. Notwithstanding section 475.58 or any other law or charter provision
to the contrary, issuance of obligations under the provisions of this section are not subject
to approval of the electors. The city may pledge any of its revenues, including property
taxes, the taxes authorized by sections 469.44 and 469.45, and the state aid under section
469.46, as security for and to pay the obligations. The city must not issue obligations that
are only payable from or secured by state aid under section 469.46.
new text end
new text begin Subd. 4. new text end
new text begin American made steel. new text end
new text begin
The city must require that a public infrastructure
project use American steel products to the extent practicable. In determining whether it
is practicable, the city may consider the exceptions to the requirement in Public Law
111-5, section 1605.
new text end
Sec. 6.
new text begin
[469.44] CITY TAX AUTHORITY.
new text end
new text begin Subdivision 1. new text end
new text begin Rochester, other local taxes authorized. new text end
new text begin
(a) Notwithstanding
section 477A.016, or any other contrary provision of law, ordinance, or city charter, and in
addition to any taxes the city may impose on these transactions under another statute or
law, the city of Rochester may, by ordinance impose at a rate or rates, determined by the
city, any of the following taxes:
new text end
new text begin
(1) a tax on the gross receipts from the furnishing for consideration of lodging and
related services as defined in section 297A.61, subdivision 3, paragraph (g), clause (2); the
city may choose to impose a differential tax based on the number of rooms in the facility;
new text end
new text begin
(2) a tax on the gross receipts of food and beverages sold primarily for consumption
on the premises by restaurants and places of refreshment that occur in the city of
Rochester; the city may elect to impose the tax in a defined district of the city; and
new text end
new text begin
(3) a tax on the admission receipts to entertainment and recreational facilities, as
defined by ordinance, in the city of Rochester.
new text end
new text begin
(b) The provisions of section 297A.99, subdivisions 4 to 13, govern the
administration, collection, and enforcement of any tax imposed by the city under
paragraph (a).
new text end
new text begin
(c) The proceeds of any taxes imposed under this subdivision, less refunds and costs
of collection, must be used by the city to fund obligations related to public infrastructure
projects contained in the development plan, including any associated financing costs. Any
tax imposed under paragraph (a) expires at the earlier of December 31, 2041, or when the
city council determines that sufficient funds have been raised from the tax plus all other
local funding sources authorized in this article to meet the city obligation for financing a
public infrastructure project contained in the development plan, including any associated
financing costs.
new text end
new text begin Subd. 2. new text end
new text begin General sales tax authority. new text end
new text begin
The city may elect to extend the existing
local sales and use tax under section 11 or to impose an additional rate of up to one-half of
one percent tax on sales and use under section 9.
new text end
new text begin Subd. 3. new text end
new text begin Special abatement rules. new text end
new text begin
(a) If the city or the county elects to use tax
abatement under sections 469.1812 to 469.1815 to finance costs of public infrastructure
projects, the special rules under this subdivision apply.
new text end
new text begin
(b) The limitations under section 469.1813, subdivision 6, do not apply to the city
or the county.
new text end
new text begin
(c) The limitations under section 469.1813, subdivision 8, do not apply and property
taxes abated by the city or the county to finance costs of public infrastructure projects are
not included for purposes of applying section 469.1813, subdivision 8, to the use of tax
abatement for other purposes of the city or the county; however, the total amount of property
taxes abated by the city and the county under this authority must not exceed $87,750,000.
new text end
new text begin Subd. 4. new text end
new text begin Special tax increment financing rules. new text end
new text begin
If the city elects to establish
a redevelopment tax increment financing district or districts within the area of the
destination medical center development district, the requirements of section 469.174,
subdivision 10, restricting the geographic areas that may be designated as a district do not
apply and increments from the district are not required to be spent in accordance with the
requirements of section 469.176, subdivision 4j.
new text end
Sec. 7.
new text begin
[469.45] COUNTY TAX AUTHORITY.
new text end
new text begin
(a) Notwithstanding sections 297A.99, 297A.993, and 477A.016, or any other
contrary provision of law, ordinance, or charter, and in addition to any taxes the county
may impose under another law or statute, the board of commissioners of Olmsted County
may, by resolution, impose a transit tax of up to one quarter of one percent on retail sales
and uses taxable under chapter 297A. The provisions of section 297A.99, subdivisions
4 to 13, govern the imposition, administration, collection, and enforcement of the tax
authorized under this paragraph.
new text end
new text begin
(b) The board of commissioners of Olmsted County may, by resolution, levy an
annual wheelage tax of up to $10 on each motor vehicle kept in the county when not in
operation which is subject to annual registration and taxation under chapter 168. The
wheelage tax shall not be imposed on the vehicles exempt from wheelage tax under
section 163.051, subdivision 1. The board by resolution may provide for collection of
the wheelage tax by county officials or it may request that the tax be collected by the
state registrar on behalf of the county. The provisions of section 163.051, subdivisions
2, 2a, 3, and 7, shall govern the administration, collection, and enforcement of the tax
authorized under this paragraph.
new text end
new text begin
(c) The proceeds of any taxes imposed under this subdivision, less refunds and
costs of collection, must be first used by the county to meet its share of obligations for
financing transit infrastructure related to the public infrastructure projects contained in
the development plan, including any associated financing costs. Revenues collected in
any calendar year in excess of the county obligation to pay for projects contained in the
development plan may be retained by the county and used for funding other transportation
projects, including roads and bridges, airport and transit improvements.
new text end
new text begin
(d) Any taxes imposed under paragraph (a), expire December 31, 2041, or at an
earlier time if approved by resolution of the county board of commissioners. However,
the taxes may not terminate before the county board of commissioners determines that
revenues from these taxes and any other revenue source the county dedicates are sufficient
to pay the county share of transit project costs and associated financing costs under the
adopted development plan.
new text end
Sec. 8.
new text begin
[469.46] STATE INFRASTRUCTURE AID.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
(a) For purposes of this section, the following terms
have the meanings given them.
new text end
new text begin
(b) "Commissioner" means the commissioner of employment and economic
development.
new text end
new text begin
(c) "Construction projects" means construction of buildings in the city for which the
building permit was issued after June 30, 2013.
new text end
new text begin
(d) "Expenditures" means expenditures made by a medical business entity, including
any affiliated entities, on construction projects for the capital cost of the project, including
but not limited to:
new text end
new text begin
(1) design and predesign, including architectural, engineering, and similar services;
new text end
new text begin
(2) legal, regulatory, and other compliance costs of the project;
new text end
new text begin
(3) land acquisition, demolition of existing improvements, and other site preparation
costs;
new text end
new text begin
(4) construction costs including all materials and supplies of the project; and
new text end
new text begin
(5) equipment and furnishings that are attached to or become part of the real property.
new text end
new text begin
Expenditures exclude supplies and other items with a useful life of less than a year that
are not used or consumed in constructing improvements to real property or are otherwise
chargeable to capital costs.
new text end
new text begin
(e) "Qualified expenditures" has the following meaning. In the first year in which
aid is paid under this section "qualified expenditures" mean the total certified expenditures
since June 30, 2013, through the end of the previous calendar year minus $200,000,000.
For subsequent years "qualified expenditures" mean the certified expenditures for the
previous calendar year.
new text end
new text begin
(f) "Transit costs" means the portions of a public infrastructure project that are for
public transit intended primarily to serve the district, such as transit stations, equipment,
right-of-way, and similar costs.
new text end
new text begin Subd. 2. new text end
new text begin Certification of expenditures. new text end
new text begin
By April 1 of each year, the medical
business entity must certify to the commissioner the amount of expenditures made in the
prior calendar year. The certification must be made in the form that the commissioner
prescribes and include any documentation of and supporting information regarding the
expenditures that the commissioner requires. By August 1 of each year, the commissioner
shall determine the amount of the expenditures for the prior calendar year.
new text end
new text begin Subd. 3. new text end
new text begin General state infrastructure aid. new text end
new text begin
(a) General state infrastructure aid may
not be paid out under this section until total expenditures exceed $200,000,000.
new text end
new text begin
(b) The amount of the general state infrastructure aid for a fiscal year equals the sum
of qualified expenditures, multiplied by 2.75 percent. The maximum amount of general
state aid payable in any year is limited to no more than $30,000,000. If the aid entitlement
for the year exceeds the maximum annual limit, the excess is an aid carryover to later
years. The carryover aid must be paid in the first year in which the aid entitlement for the
current year is less than the maximum annual limit, but only to the extent the carryover,
when added to the current year aid, is less than the maximum annual limit.
new text end
new text begin
(c) If the commissioner determines that the city has made the required matching
local contribution under subdivision 4, the commissioner shall pay to the city the amount
of general state infrastructure aid for the year by September 1.
new text end
new text begin
(d) The city must use general state infrastructure aid it receives under this
subdivision for improvements and other capital costs related to the public infrastructure
project, other than transit costs. The city shall maintain appropriate records to document
the use of the funds under this requirement.
new text end
new text begin
(e) The commissioner, in consultation with the commissioner of management and
budget and representatives of the city and the corporation, shall establish a total limit on
the amount of state aid payable under this subdivision that is sufficient, in combination
with the local contribution, to pay for $455,000,000 of general public infrastructure
projects, plus financing costs.
new text end
new text begin Subd. 4. new text end
new text begin General aid; local matching contribution. new text end
new text begin
In order to qualify for general
state infrastructure aid, the city must enter a written agreement with the commissioner that
requires the city to make a qualifying local matching contribution to pay for $128,000,000
of the cost of public infrastructure projects, including associated financing costs, using
funds other than state aid received under this section. This agreement must provide for the
manner, timing, and amounts of the city contributions, including the city's commitment for
each year. The commissioner and city may agree to amend the agreement at any time in
light of new information or other appropriate factors. The city may enter arrangements
with the county to pay for or otherwise meet the local matching contribution requirement.
new text end
new text begin Subd. 5. new text end
new text begin State transit aid. new text end
new text begin
(a) The city qualifies for state transit aid under this
section if:
new text end
new text begin
(1) the county has elected to impose the transit sales tax under section 469.45 for a
calendar year; and
new text end
new text begin
(2) the county contributes the required local matching contribution under subdivision
6 or the city or county have agreed to make an equivalent contribution out of other funds.
new text end
new text begin
(b) The amount of the state transit aid for a fiscal year equals the sum of qualified
expenditures, as certified by the commissioner for the prior calendar year, multiplied
by 0.75 percent, reduced by the amount of the local contribution under subdivision 6.
The maximum amount of state transit aid payable in any year is limited to no more than
$7,500,000. If the aid entitlement for the year exceeds the maximum annual limit, the
excess is an aid carryover to later years. The carryover aid must be paid in the first year
in which the aid entitlement for the current year is less than the maximum annual limit,
but only to the extent the carryover, when added to the current year aid, is less than the
maximum annual limit.
new text end
new text begin
(c) The commissioner, in consultation with the commissioner of management and
budget and representatives of the city and the corporation, shall establish a total limit on
the amount of state aid payable under this subdivision that is sufficient, in combination
with the local contribution, to pay for $116,000,000 of general public infrastructure
projects, plus financing costs.
new text end
new text begin Subd. 6. new text end
new text begin Transit aid; local matching contribution. new text end
new text begin
(a) The required local matching
contribution for state transit aid equals the amount that would be raised by a 0.15 percent
sales tax imposed by the county in the prior calendar year. The county may impose the
sales tax or the wheelage tax under section 469.45 to meet this obligation.
new text end
new text begin
(b) If the county elects not to impose any of the taxes authorized under section 469.45,
the county or city or both may agree to make the local contribution out of other available
funds, other than state aid payable under this section. The commissioner of revenue shall
estimate the required amount and certify it to the commissioner, city, and county.
new text end
new text begin Subd. 7. new text end
new text begin Termination. new text end
new text begin
No aid may be paid under this section after fiscal year 2041.
new text end
new text begin Subd. 8. new text end
new text begin Appropriation. new text end
new text begin
An amount sufficient to pay the state general infrastructure
and state transit aid authorized under this section is appropriated to the commissioner
from the general fund.
new text end
Sec. 9.
Laws 1998, chapter 389, article 8, section 43, subdivision 1, is amended to read:
Subdivision 1.
Sales and use taxes authorized.
new text begin (a) new text end Notwithstanding Minnesota
Statutes, section 477A.016, or any other contrary provision of law, ordinance, or city
charter, upon termination of the taxes authorized under Laws 1992, chapter 511, article
8, section 33, subdivision 1, and if approved by the voters of the city at a general or
special election held within one year of the date of final enactment of this act, the city of
Rochester may, by ordinance, impose an additional sales and use tax of up to one-half
of one percent. The provisions of Minnesota Statutes, section deleted text begin 297A.48,deleted text end new text begin 297A.99new text end govern
the imposition, administration, collection, and enforcement of the tax authorized under
this deleted text begin subdivisiondeleted text end new text begin paragraphnew text end .
new text begin
(b) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any
other contrary provision of law, ordinance, or charter, the city of Rochester may, by
ordinance, impose an additional sales and use tax of up to one half of one percent. The
provisions of Minnesota Statutes, section 297A.99, subdivisions 1 and 4 to 13, govern
the imposition, administration, collection, and enforcement of the tax authorized under
this paragraph.
new text end
Sec. 10.
Laws 1998, chapter 389, article 8, section 43, subdivision 3, as amended by
Laws 2005, First Special Session chapter 3, article 5, section 28, and Laws 2011, First
Special Session chapter 7, article 4, section 5, is amended to read:
Subd. 3.
Use of revenues.
(a) Revenues received from the taxes authorized by
subdivisions 1new text begin , paragraph (a),new text end and 2 must be used by the city to pay for the cost of
collecting and administering the taxes and to pay for the following projects:
(1) transportation infrastructure improvements including regional highway and
airport improvements;
(2) improvements to the civic center complex;
(3) a municipal water, sewer, and storm sewer project necessary to improve regional
ground water quality; and
(4) construction of a regional recreation and sports center and other higher education
facilities available for both community and student use.
(b) The total amount of capital expenditures or bonds for projects listed in paragraph
(a) that may be paid from the revenues raised from the taxes authorized in this section
may not exceed $111,500,000. The total amount of capital expenditures or bonds for the
project in clause (4) that may be paid from the revenues raised from the taxes authorized
in this section may not exceed $28,000,000.
(c) In addition to the projects authorized in paragraph (a) and not subject to the
amount stated in paragraph (b), the city of Rochester may, if approved by the voters at an
election under subdivision 5, paragraph (c), use the revenues received from the taxes and
bonds authorized in this section to pay the costs of or bonds for the following purposes:
(1) $17,000,000 for capital expenditures and bonds for the following Olmsted
County transportation infrastructure improvements:
(i) County State Aid Highway 34 reconstruction;
(ii) Trunk Highway 63 and County State Aid Highway 16 interchange;
(iii) phase II of the Trunk Highway 52 and County State Aid Highway 22 interchange;
(iv) widening of County State Aid Highway 22 West Circle Drive; and
(v) 60th Avenue Northwest corridor preservation;
(2) $30,000,000 for city transportation projects including:
(i) Trunk Highway 52 and 65th Street interchange;
(ii) NW transportation corridor acquisition;
(iii) Phase I of the Trunk Highway 52 and County State Aid Highway 22 interchange;
(iv) Trunk Highway 14 and Trunk Highway 63 intersection;
(v) Southeast transportation corridor acquisition;
(vi) Rochester International Airport expansion; and
(vii) a transit operations center bus facility;
(3) $14,000,000 for the University of Minnesota Rochester academic and
complementary facilities;
(4) $6,500,000 for the Rochester Community and Technical College/Winona State
University career technical education and science and math facilities;
(5) $6,000,000 for the Rochester Community and Technical College regional
recreation facilities at University Center Rochester;
(6) $20,000,000 for the Destination Medical Community Initiative;
(7) $8,000,000 for the regional public safety and 911 dispatch center facilities;
(8) $20,000,000 for a regional recreation/senior center;
(9) $10,000,000 for an economic development fund; and
(10) $8,000,000 for downtown infrastructure.
(d) No revenues from the taxes raised from the taxes authorized in subdivisions 1
and 2 may be used to fund transportation improvements related to a railroad bypass that
would divert traffic from the city of Rochester.
deleted text begin
(e) The city shall use $5,000,000 of the money allocated to the purpose in paragraph
deleted text end
deleted text begin
(c), clause (9), for grants to the cities of Byron, Chatfield, Dodge Center, Dover, Elgin,
deleted text end
deleted text begin
Eyota, Kasson, Mantorville, Oronoco, Pine Island, Plainview, St. Charles, Stewartville,
deleted text end
deleted text begin
Zumbrota, Spring Valley, West Concord, and Hayfield for economic development projects
deleted text end
deleted text begin
that these communities would fund through their economic development authority or
deleted text end
deleted text begin
housing and redevelopment authority.
deleted text end
new text begin
(e) Notwithstanding Minnesota Statutes, section 297A.99, subdivisions 2 and 3, if
the city decides to extend the taxes in subdivisions 1, paragraph (a), and 2, as allowed
under subdivision 5, paragraph (c), the city must use any amount in excess of the amount
necessary to meet obligations under paragraphs (a) to (c) from those taxes to fund
obligations, including associated financing costs, related to public infrastructure projects
in the development plan adopted under Minnesota Statutes, section 469.42.
new text end
new text begin
(f) Revenues from the tax under subdivision 1, paragraph (b), must be used to fund
obligations, including associated financing costs, related to the public infrastructure
projects contained in the development plan adopted by the city under Minnesota Statutes,
section 469.42.
new text end
Sec. 11.
Laws 1998, chapter 389, article 8, section 43, subdivision 5, as amended by
Laws 2005, First Special Session chapter 3, article 5, section 30, and Laws 2011, First
Special Session chapter 7, article 4, section 7, is amended to read:
Subd. 5.
Termination of taxes.
(a) The taxes imposed under subdivisions 1 and 2
expire at the later of (1) December 31, 2009, or (2) when the city council determines that
sufficient funds have been received from the taxes to finance the first $71,500,000 of capital
expenditures and bonds for the projects authorized in subdivision 3, including the amount to
prepay or retire at maturity the principal, interest, and premium due on any bonds issued for
the projects under subdivision 4, unless the taxes are extended as allowed in paragraph (b).
Any funds remaining after completion of the project and retirement or redemption of the
bonds shall also be used to fund the projects under subdivision 3. The taxes imposed under
subdivisions 1 and 2 may expire at an earlier time if the city so determines by ordinance.
(b) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any
other contrary provision of law, ordinance, or city charter, the city of Rochester may, by
ordinance, extend the taxes authorized in subdivisions 1 and 2 beyond December 31, 2009,
if approved by the voters of the city at a special election in 2005 or the general election in
2006. The question put to the voters must indicate that an affirmative vote would allow
up to an additional $40,000,000 of sales tax revenues be raised and up to $40,000,000
of bonds to be issued above the amount authorized in the June 23, 1998, referendum for
the projects specified in subdivision 3. If the taxes authorized in subdivisions 1 and 2 are
extended under this paragraph, the taxes expire when the city council determines that
sufficient funds have been received from the taxes to finance the projects and to prepay
or retire at maturity the principal, interest, and premium due on any bonds issued for the
projects under subdivision 4. Any funds remaining after completion of the project and
retirement or redemption of the bonds may be placed in the general fund of the city.
(c) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any
other contrary provision of law, ordinance, or city charter, the city of Rochester may,
by ordinance, extend the taxes authorized in subdivisions 1new text begin , paragraph (a),new text end and 2 new text begin up to
December 31, 2041, provided that all additional revenues above those necessary to fund
the projects and associated financing costs listed in subdivision 3, paragraphs (a) to (e),
are committed to fund public infrastructure projects contained in the development plan
adopted under Minnesota Statutes, section 469.42, including all associated financing
costs; otherwise the taxes terminate when new text end deleted text begin beyond the datedeleted text end the city council determines
that sufficient funds have been received from the taxes to finance deleted text begin $111,500,000 ofdeleted text end new text begin the
new text end expenditures and bonds for the projects authorized in subdivision 3, deleted text begin paragraph (a)
deleted text end new text begin paragraphs (a) to (e)new text end , plus an amount equal to the costs of issuance of the bonds and
including the amount to prepay or retire at maturity the principal, interest, and premiums
due on any bonds issued for the projects under subdivision 4deleted text begin , paragraph (a), if approved
by the voters of the city at the general election in 2012. If the election to authorize the
additional $139,500,000 of bonds plus an amount equal to the costs of the issuance of the
bonds is placed on the general election ballot in 2012, the city may continue to collect the
taxes authorized in subdivisions 1 and 2 until December 31, 2012. The question put to
the voters must indicate that an affirmative vote would allow sales tax revenues be raised
for an extended period of time and an additional $139,500,000 of bonds plus an amount
equal to the costs of issuance of the bonds, to be issued above the amount authorized in
the previous elections required under paragraphs (a) and (b) for the projects and amounts
specified in subdivision 3. If the taxes authorized in subdivisions 1 and 2 are extended
under this paragraph, the taxes expire when the city council determines that $139,500,000
has been received from the taxes to finance the projects plus an amount sufficient to
prepay or retire at maturity the principal, interest, and premium due on any bonds issued
for the projects under subdivision 4, including any bonds issued to refund the bonds. Any
funds remaining after completion of the projects and retirement or redemption of the
bonds may be placed in the general fund of the citydeleted text end .
new text begin
(d) The tax imposed under subdivision 1, paragraph (b), expires at the earlier of
2041, or when the city council determines that sufficient funds have been raised from the
tax plus all other city funding sources authorized in this article to meet the city obligation
for financing the public infrastructure projects contained in the development plan adopted
under Minnesota Statutes, section 469.42, including all associated financing costs.
new text end
Sec. 12. new text begin ROCHESTER AREA DEVELOPMENT AND TRANSPORTATION
IMPACTS STUDY.
new text end
new text begin
(a) From funds appropriated by law for the purposes of this section, the commissioner
of transportation shall in consultation with the Rochester-Olmsted Council of Governments
enter into an agreement with a consultant to perform a study of economic development
and transportation impacts in the Rochester metropolitan area, including the feasibility of
high-speed rail between Rochester and the seven-county metropolitan area. To be eligible,
a consultant must have experience and expertise in a majority of the following: economics,
economic development, demography, urban planning, engineering, and transportation.
new text end
new text begin
(b) At a minimum, the study under this section must:
new text end
new text begin
(1) utilize at least a 20-year planning horizon;
new text end
new text begin
(2) perform a comprehensive planning assessment of key transportation
infrastructure throughout the Rochester metropolitan area based on (i) long-range
transportation plans developed by the Rochester-Olmsted Council of Governments, and
(ii) expected and potential economic development patterns;
new text end
new text begin
(3) analyze major roadways across all jurisdictions including, but not limited to,
trunk highways; county highways; and arterial city streets; and interconnections with other
modes in conjunction with ongoing rail and airports studies;
new text end
new text begin
(4) analyze the feasibility of a high-speed rail connection between Rochester and the
Mall of America via Minnesota State Highway 77 with connections to the Minneapolis-St.
Paul International Airport and the Union Depot in St. Paul;
new text end
new text begin
(5) to the extent feasible, take into account available data, forecasts, available
transportation demand modeling information, and transportation impacts of major
economic initiatives and proposals including, but not limited to, expansion of the Mayo
Clinic; and
new text end
new text begin
(6) provide scenarios and identify revenue shortfalls to address both short-term and
long-term deficiencies in safety, mobility, congestion, and transportation infrastructure
condition.
new text end
new text begin
(c) By January 15, 2014, the commissioner shall provide an electronic copy of the
study to the chairs and ranking minority members of the legislative committees with
jurisdiction over transportation policy and finance, as provided in Minnesota Statutes,
section 174.02, subdivision 8.
new text end
Sec. 13. new text begin EFFECTIVE DATE.
new text end
new text begin
Except as otherwise provided, this article is effective the day after the governing
body of the city of Rochester and its chief clerical officer timely comply with Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end
ARTICLE 11
MINING TAXES
Section 1.
new text begin
[116C.992] SILICA SAND MINING ACCOUNT.
new text end
new text begin
A silica sand mining account is created in the special revenue fund. Money in the
account is available for development of model standards, technical assistance to counties
and other governments, other assistance to counties, and other purposes as appropriated
by law.
new text end
Sec. 2.
Minnesota Statutes 2012, section 126C.48, subdivision 8, is amended to read:
Subd. 8.
Taconite payment and other reductions.
(1) Reductions in levies
pursuant to subdivision 1 must be made prior to the reductions in clause (2).
(2) Notwithstanding any other law to the contrary, districts that have revenue
pursuant to sections 298.018; 298.225; 298.24 to 298.28, except an amount distributed
under sections 298.26; 298.28, subdivision 4, paragraphs (c), clause (ii), and (d); 298.34
to 298.39; 298.391 to 298.396; 298.405; 477A.15; and any law imposing a tax upon
severed mineral values must reduce the levies authorized by this chapter and chapters
120B, 122A, 123A, 123B, 124A, 124D, 125A, and 127A by 95 percent of new text begin the sum of new text end the
previous year's revenue specified under this clausenew text begin and the amount attributable to the same
production year distributed to the cities and townships within the school district under
section 298.28, subdivision 2, paragraph (c)new text end .
(3) The amount of any voter approved referendum, facilities down payment, and
debt levies shall not be reduced by more than 50 percent under this subdivision. In
administering this paragraph, the commissioner shall first reduce the nonvoter approved
levies of a district; then, if any payments, severed mineral value tax revenue or recognized
revenue under paragraph (2) remains, the commissioner shall reduce any voter approved
referendum levies authorized under section 126C.17; then, if any payments, severed
mineral value tax revenue or recognized revenue under paragraph (2) remains, the
commissioner shall reduce any voter approved facilities down payment levies authorized
under section 123B.63 and then, if any payments, severed mineral value tax revenue or
recognized revenue under paragraph (2) remains, the commissioner shall reduce any
voter approved debt levies.
(4) Before computing the reduction pursuant to this subdivision of the health and
safety levy authorized by sections 123B.57 and 126C.40, subdivision 5, the commissioner
shall ascertain from each affected school district the amount it proposes to levy under
each section or subdivision. The reduction shall be computed on the basis of the amount
so ascertained.
(5) To the extent the levy reduction calculated under paragraph (2) exceeds the
limitation in paragraph (3), an amount equal to the excess must be distributed from the
school district's distribution under sections 298.225, 298.28, and 477A.15 in the following
year to the cities and townships within the school district in the proportion that their
taxable net tax capacity within the school district bears to the taxable net tax capacity of
the school district for property taxes payable in the year prior to distribution. No city or
township shall receive a distribution greater than its levy for taxes payable in the year prior
to distribution. The commissioner of revenue shall certify the distributions of cities and
towns under this paragraph to the county auditor by September 30 of the year preceding
distribution. The county auditor shall reduce the proposed and final levies of cities and
towns receiving distributions by the amount of their distribution. Distributions to the cities
and towns shall be made at the times provided under section 298.27.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for levies certified in 2013 and later.
new text end
Sec. 3.
new text begin
[297J.01] DEFINITIONS.
new text end
new text begin Subdivision 1. new text end
new text begin Scope. new text end
new text begin
Unless otherwise defined in this chapter, or unless the
context clearly indicates otherwise, the terms used in this chapter have the meaning given
them in this section. The definitions in this section are for tax administration purposes
and apply to this chapter.
new text end
new text begin Subd. 2. new text end
new text begin Commissioner. new text end
new text begin
"Commissioner" means the commissioner of revenue or a
person to whom the commissioner has delegated functions.
new text end
new text begin Subd. 3. new text end
new text begin Mining. new text end
new text begin
"Mining" means excavating and mining of silica sand by any
process, including digging, excavating, drilling, blasting, tunneling, dredging, stripping,
or by shaft.
new text end
new text begin Subd. 4. new text end
new text begin Person. new text end
new text begin
"Person" means an individual, fiduciary, estate, trust, partnership,
or corporation.
new text end
new text begin Subd. 5. new text end
new text begin Processing. new text end
new text begin
"Processing" means washing, cleaning, screening, crushing,
filtering, sorting, stockpiling, and storing silica sand at the mining site or at any other site.
new text end
new text begin Subd. 6. new text end
new text begin Qualified processor. new text end
new text begin
"Qualified processor" means any person who
operates a mining and processing facility at the same location and uses means to
reasonably prevent silica sand particles from becoming airborne. These methods include,
but are not limited to, prohibiting outdoor storage piles, the use of a slurry pipeline to
carry aggregate material into the washing facility, completely enclosing the washing
facility, and any other means necessary or reasonable to significantly prevent silica sand
particles from becoming airborne.
new text end
new text begin Subd. 7. new text end
new text begin Silica sand. new text end
new text begin
"Silica sand" means well-rounded, sand-sized grains of quartz
(silica dioxide) with very few impurities in terms of other minerals. Specifically, silica
sand for the purpose of this section is commercially valuable for use in the hydraulic
fracturing of shale to obtain oil and natural gas. Silica sand does not include common
rock, stone, aggregate, gravel, sand with a low quartz level, or silica compounds recovered
as a by-product of metallic mining.
new text end
new text begin Subd. 8. new text end
new text begin Temporary storage. new text end
new text begin
"Temporary storage" means the storage of stockpiles
of silica sand that have been transported and are awaiting further transport or processing.
new text end
new text begin Subd. 9. new text end
new text begin Ton. new text end
new text begin
"Ton" means 2,000 pounds.
new text end
new text begin Subd. 10. new text end
new text begin Transporting. new text end
new text begin
"Transporting" means hauling silica sand, by any carrier:
new text end
new text begin
(1) from the mining site to a processing or transfer site; or
new text end
new text begin
(2) from a processing or storage site to a rail, barge, or transfer site for shipment.
new text end
new text begin Subd. 11. new text end
new text begin Year. new text end
new text begin
"Year" means a calendar year.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 4.
new text begin
[297J.02] TAX IMPOSED.
new text end
new text begin Subdivision 1. new text end
new text begin Mining and storage tax; rate. new text end
new text begin
A tax is hereby imposed on any
person who: (1) mines silica sand from within the state; or (2) transports silica sand into
and stores the sand in the state. The rate of tax imposed is 55 cents per cubic yard of silica
sand mined or stored. The volume includes any material removed from the extraction site
prior to washing. For any person mining silica sand in a county that imposes the aggregate
tax authorized under section 298.75, subdivisions 2 and 3, a credit equal to the amount of
aggregate tax paid to the county is applied against the tax due under this section.
new text end
new text begin Subd. 2. new text end
new text begin Processing tax; rate. new text end
new text begin
new text end
new text begin
(a) A tax is hereby imposed on any person engaged
in washing or processing silica sand within the state. The rate of tax imposed is three
percent of the market value of the silica sand processed. Market value is determined based
on the sale price of the processed silica sand.
new text end
new text begin
(b) Notwithstanding paragraph (a), the rate of tax imposed on a qualified processor
is one percent of the market value of the silica sand processed in the state.
new text end
new text begin Subd. 3. new text end
new text begin Exemption. new text end
new text begin
A person is exempt from the mining tax in subdivision 1 if the
person transports less than ten percent of the finished product on public roads.
new text end
new text begin Subd. 4. new text end
new text begin Report and remittance. new text end
new text begin
Taxes imposed by this section are due and
payable to the commissioner when the fracturing sand return is required to be filed.
Persons mining or processing fracturing sand must file their monthly fracturing sand
reports showing the amount of fracturing sand extracted or processed during the month
reported on a form prescribed by the commissioner. Reports of extraction and processing
fracturing sand and taxes imposed under this section must be filed with the commissioner
on or before the 20th day of the month following the close of the previous calendar month.
new text end
new text begin Subd. 5. new text end
new text begin Proceeds of taxes. new text end
new text begin
Revenue received from taxes under this chapter, as
well as all related penalties, interest, fees, and miscellaneous sources of revenue, must be
deposited by the commissioner in the state treasury and credited as follows:
new text end
new text begin
(1) $2,000,000 in fiscal year 2014, $2,690,000 in fiscal year 2015, and $2,000,000 in
each fiscal year thereafter must be credited to the silica sand mining account in the special
revenue fund under section 116C.992; and
new text end
new text begin
(2) the balance of revenues derived from taxes, penalties, interest, fees, and
miscellaneous sources of income are credited to the general fund.
new text end
new text begin Subd. 6. new text end
new text begin Personal debt. new text end
new text begin
The tax imposed by this section, and interest and penalties
imposed with respect to it, are a personal debt of the person required to file a return from
the time the liability for it arises, irrespective of when the time for payment of the liability
occurs. The debt must, in the case of the executor or administrator of the estate of a
decedent and in the case of a fiduciary, be that of the person in the person's official or
fiduciary capacity only unless the person has voluntarily distributed the assets held in that
capacity without reserving sufficient assets to pay the tax, interest, and penalties, in which
event the person is personally liable for any deficiency.
new text end
new text begin Subd. 7. new text end
new text begin Refunds; appropriation. new text end
new text begin
A person who has, under this chapter, paid
to the commissioner an amount of tax for a period in excess of the amount legally due
for that period, may file with the commissioner a claim for a refund of the excess. The
amount necessary to pay the refunds under this subdivision is appropriated from the
general fund to the commissioner.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
new text end
Sec. 5.
new text begin
[297J.03] REGISTRATION; REPORTING; FILING REQUIREMENTS.
new text end
new text begin Subdivision 1. new text end
new text begin Registration. new text end
new text begin
A person who extracts or processes silica sand within
the state must register with the commissioner, on a form prescribed by the commissioner,
for a silica sand identification number. The commissioner shall issue the applicant a
registration number. A registration number is not assignable and is valid only for the
person in whose name it is issued.
new text end
new text begin Subd. 2. new text end
new text begin Reporting. new text end
new text begin
(a) A person who extracts or processes silica sand in this state
must file a report showing the amount of silica sand extracted or processed monthly on or
before the 20th day of the month following the month in which the silica sand was extracted
or processed. The commissioner may inspect the premises, books, and records, of a person
subject to the silica sand tax during the normal business hours of the person extracting or
processing silica sand. A person violating this section is guilty of a misdemeanor.
new text end
new text begin
(b) A person shall keep at each place of business complete and accurate records
for that place of business, including records of silica sand extracted or processed in the
state. Scale records, sales records, or any other records of tons of silica sand extracted
or processed in this state, produced or maintained by the person extracting or processing
silica sand, must be retained by the person extracting or processing silica sand in this
state. Books, records, invoices, and other papers and documents required by this section
must be kept for a period of at least 3-1/2 years after the date of the monthly silica sand
report unless the commissioner of revenue authorizes, in writing, their destruction or
disposal at an earlier date.
new text end
new text begin Subd. 3. new text end
new text begin Extensions. new text end
new text begin
If, in the commissioner's judgment, good cause exists, the
commissioner may extend the time for filing reports under this section and silica sand
returns under section 297J.02 and for paying taxes under section 297J.02 for not more
than six months.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 6.
new text begin
[297J.04] LIMITATIONS ON TIME FOR ASSESSMENT OF TAX.
new text end
new text begin Subdivision 1. new text end
new text begin Assessment. new text end
new text begin
Except as otherwise provided in this chapter, the
amount of taxes assessable must be assessed within 3-1/2 years after the date the return is
filed, whether or not the return is filed on or after the date prescribed. A return must not be
treated as filed until it is in processible form. A return is in processible form if it is filed
on a permitted form and contains sufficient data to identify the taxpayer and permit the
mathematical verification of the tax liability shown on the return. For purposes of this
section, a return filed before the last day prescribed by law for filing is considered to
be filed on the last day.
new text end
new text begin Subd. 2. new text end
new text begin False or fraudulent return. new text end
new text begin
Notwithstanding subdivision 1, the tax may be
assessed at any time if a false or fraudulent return is filed or if a taxpayer fails to file a return.
new text end
new text begin Subd. 3. new text end
new text begin Omission in excess of 25 percent. new text end
new text begin
Additional taxes may be assessed
within 6-1/2 years after the due date of the return or the date the return was filed,
whichever is later, if the taxpayer omits from a return taxes in excess of 25 percent of
the taxes reported in the return.
new text end
new text begin Subd. 4. new text end
new text begin Time limit on refunds. new text end
new text begin
Unless otherwise provided in this chapter, a claim
for a refund of an overpayment of tax must be filed within 3-1/2 years from the date
prescribed for filing the silica sand tax return. Interest on refunds must be computed at
the rate specified in section 270C.405 from the date of payment to the date the refund is
paid or credited. For purposes of this subdivision, the date of payment is the later of the
date the tax was finally due or was paid.
new text end
new text begin Subd. 5. new text end
new text begin Bankruptcy; suspension of time. new text end
new text begin
The time during which a tax must be
assessed or collection proceedings begun is suspended during the period from the date of a
filing of a petition in bankruptcy until 30 days after either: (1) notice to the commissioner
that the bankruptcy proceedings have been closed or dismissed; or (2) the automatic stay
has been ended or has expired, whichever occurs first. The suspension of the statute of
limitations under this subdivision applies to the person the petition in bankruptcy is filed
against, and all other persons who may also be wholly or partially liable for the tax.
new text end
new text begin Subd. 6. new text end
new text begin Extension agreement. new text end
new text begin
If, before the expiration of time prescribed in
subdivisions 1 and 4 for the assessment of tax or the filing of a claim for refund, both the
commissioner and the taxpayer have consented in writing to the assessment or filing of a
claim for refund after that time, the tax may be assessed or the claim for refund filed at any
time before the expiration of the agreed upon period. The period may be extended by later
agreements in writing before the expiration of the period previously agreed upon.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
new text end
Sec. 7.
new text begin
[297J.05] CIVIL PENALTIES.
new text end
new text begin Subdivision 1. new text end
new text begin Penalty for failure to pay tax. new text end
new text begin
If a tax is not paid within the time
specified for payment, a penalty is added to the amount required to be shown as tax. The
penalty is five percent of the unpaid tax if the failure is for not more than 30 days, with
an additional penalty of five percent of the amount of tax remaining unpaid during each
additional 30 days or fraction of 30 days during which the failure continues, not exceeding
15 percent in the aggregate. For purposes of this subdivision, if the taxpayer has not filed
a return, the time specified for payment is the final date a return should have been filed.
new text end
new text begin Subd. 2. new text end
new text begin Penalty for failure to make and file return. new text end
new text begin
If a taxpayer fails to make
and file a return within the time prescribed or an extension, a penalty is added to the tax.
The penalty is five percent of the amount of tax not paid on or before the date prescribed
for payment of the tax.
new text end
new text begin Subd. 3. new text end
new text begin Penalty for intentional disregard of law or rules. new text end
new text begin
If part of an additional
assessment is due to negligence or intentional disregard of the provisions of this chapter or
rules of the commissioner of revenue (but without intent to defraud), there is added to the
tax an amount equal to ten percent of the additional assessment.
new text end
new text begin Subd. 4. new text end
new text begin Penalty for false or fraudulent return; evasion. new text end
new text begin
If a person files a false
or fraudulent return, or attempts in any manner to evade or defeat a tax or payment of
tax, there is imposed on the person a penalty equal to 50 percent of the tax found due
for the period to which the return related, less amounts paid by the person on the basis
of the false or fraudulent return.
new text end
new text begin Subd. 5. new text end
new text begin Penalty for repeated failures to file returns or pay taxes. new text end
new text begin
If there is a
pattern by a person of repeated failures to timely file returns or timely pay taxes, and
written notice is given that a penalty will be imposed if such failures continue, a penalty
of 25 percent of the amount of tax not timely paid as a result of each such subsequent
failure is added to the tax. The penalty can be abated under the abatement authority in
section 270C.34.
new text end
new text begin Subd. 6. new text end
new text begin Payment of penalties. new text end
new text begin
The penalties imposed by this section must be
collected and paid in the same manner as taxes. These penalties are in addition to criminal
penalties imposed by this chapter.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 8.
new text begin
[297J.07] INTEREST.
new text end
new text begin Subdivision 1. new text end
new text begin Rate. new text end
new text begin
If an interest assessment is required under this section, interest
is computed at the rate specified in section 270C.40.
new text end
new text begin Subd. 2. new text end
new text begin Late payment. new text end
new text begin
If a tax is not paid within the time specified by law for
payment, the unpaid tax bears interest from the date the tax should have been paid until
the date the tax is paid.
new text end
new text begin Subd. 3. new text end
new text begin Extensions. new text end
new text begin
If an extension of time for payment has been granted, interest
must be paid from the date the payment should have been made if no extension had been
granted, until the date the tax is paid.
new text end
new text begin Subd. 4. new text end
new text begin Additional assessments. new text end
new text begin
If a taxpayer is liable for additional taxes because
of a redetermination by the commissioner, or for any other reason, the additional taxes
bear interest from the time the tax should have been paid, without regard to any extension
allowed, until the date the tax is paid.
new text end
new text begin Subd. 5. new text end
new text begin Erroneous refunds. new text end
new text begin
In the case of an erroneous refund, interest accrues
from the date the refund was paid unless the erroneous refund results from a mistake of
the department, then no interest or penalty is imposed unless the deficiency assessment is
not satisfied within 60 days of the order.
new text end
new text begin Subd. 6. new text end
new text begin Interest on judgments. new text end
new text begin
Notwithstanding section 549.09, if judgment is
entered in favor of the commissioner with regard to any tax, the judgment bears interest
at the rate specified in section 270C.40 from the date the judgment is entered until the
date of payment.
new text end
new text begin Subd. 7. new text end
new text begin Interest on penalties. new text end
new text begin
A penalty imposed under section 297J.05,
subdivision 1, 2, 3, 4, or 5, bears interest from the date the return or payment was required
to be filed or paid, including any extensions, to the date of payment of the penalty.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 9.
Minnesota Statutes 2012, section 298.01, subdivision 3, is amended to read:
Subd. 3.
Occupation tax; other ores.
Every person engaged in the business of
mining, refining, or producing ores, metals, or minerals in this state, except iron ore or
taconite concentrates, shall pay an occupation tax to the state of Minnesota as provided
in this subdivision. For purposes of this subdivision, mining includes the application
of hydrometallurgical processes. The tax is determined in the same manner as the tax
imposed by section 290.02, except that sections 290.05, subdivision 1, clause (a), 290.17,
subdivision 4, and 290.191, subdivision 2, do not apply, and the occupation tax must be
computed by applying to taxable income the rate deleted text begin of 2.45 percentdeleted text end new text begin equal to one-half of
the rate that applies under section 290.06, subdivision 1, for the taxable yearnew text end . A person
subject to occupation tax under this section shall apportion its net income on the basis of
the percentage obtained by taking the sum of:
(1) 75 percent of the percentage which the sales made within this state in connection
with the trade or business during the tax period are of the total sales wherever made in
connection with the trade or business during the tax period;
(2) 12.5 percent of the percentage which the total tangible property used by the
taxpayer in this state in connection with the trade or business during the tax period is of
the total tangible property, wherever located, used by the taxpayer in connection with the
trade or business during the tax period; and
(3) 12.5 percent of the percentage which the taxpayer's total payrolls paid or incurred
in this state or paid in respect to labor performed in this state in connection with the trade
or business during the tax period are of the taxpayer's total payrolls paid or incurred in
connection with the trade or business during the tax period.
The tax is in addition to all other taxes.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 10.
Minnesota Statutes 2012, section 298.01, subdivision 4, is amended to read:
Subd. 4.
Occupation tax; iron ore; taconite concentrates.
A person engaged in
the business of mining or producing of iron ore, taconite concentrates or direct reduced ore
in this state shall pay an occupation tax to the state of Minnesota. The tax is determined
in the same manner as the tax imposed by section 290.02, except that sections 290.05,
subdivision 1, clause (a), 290.17, subdivision 4, and 290.191, subdivision 2, do not apply,
and the occupation tax shall be computed by applying to taxable income the rate deleted text begin of 2.45
percentdeleted text end new text begin equal to one-half of the rate that applies under section 290.06, subdivision 1, for
the taxable yearnew text end . A person subject to occupation tax under this section shall apportion its
net income on the basis of the percentage obtained by taking the sum of:
(1) 75 percent of the percentage which the sales made within this state in connection
with the trade or business during the tax period are of the total sales wherever made in
connection with the trade or business during the tax period;
(2) 12.5 percent of the percentage which the total tangible property used by the
taxpayer in this state in connection with the trade or business during the tax period is of
the total tangible property, wherever located, used by the taxpayer in connection with the
trade or business during the tax period; and
(3) 12.5 percent of the percentage which the taxpayer's total payrolls paid or incurred
in this state or paid in respect to labor performed in this state in connection with the trade
or business during the tax period are of the taxpayer's total payrolls paid or incurred in
connection with the trade or business during the tax period.
The tax is in addition to all other taxes.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after
December 31, 2012.
new text end
Sec. 11.
Minnesota Statutes 2012, section 298.227, as amended by Laws 2013, chapter
3, section 17, is amended to read:
298.227 TACONITE ECONOMIC DEVELOPMENT FUND.
(a) An amount equal to that distributed pursuant to each taconite producer's taxable
production and qualifying sales under section 298.28, subdivision 9a, shall be held by
the Iron Range Resources and Rehabilitation Board in a separate taconite economic
development fund for each taconite and direct reduced ore producer. Money from the
fund for each producer shall be released by the commissioner after review by a joint
committee consisting of an equal number of representatives of the salaried employees and
the nonsalaried production and maintenance employees of that producer. The District 11
director of the United States Steelworkers of America, on advice of each local employee
president, shall select the employee members. In nonorganized operations, the employee
committee shall be elected by the nonsalaried production and maintenance employees. The
review must be completed no later than six months after the producer presents a proposal
for expenditure of the funds to the committee. The funds held pursuant to this section may
be released only for workforce development and associated public facility improvement,
or for acquisition of plant and stationary mining equipment and facilities for the producer
or for research and development in Minnesota on new mining, or taconite, iron, or steel
production technology, but only if the producer provides a matching expenditure new text begin equal to
the amount of the distribution new text end to be used for the same purpose deleted text begin of at least 50 percent of
the distribution based on 14.7 cents per tondeleted text end beginning with distributions in deleted text begin 2002deleted text end new text begin 2014new text end .
Effective for proposals for expenditures of money from the fund beginning May 26, 2007,
the commissioner may not release the funds before the next scheduled meeting of the
board. If a proposed expenditure is not approved by the board, the funds must be deposited
in the Taconite Environmental Protection Fund under sections 298.222 to 298.225. If a
producer uses money which has been released from the fund prior to May 26, 2007 to
procure haulage trucks, mobile equipment, or mining shovels, and the producer removes
the piece of equipment from the taconite tax relief area defined in section 273.134 within
ten years from the date of receipt of the money from the fund, a portion of the money
granted from the fund must be repaid to the taconite economic development fund. The
portion of the money to be repaid is 100 percent of the grant if the equipment is removed
from the taconite tax relief area within 12 months after receipt of the money from the fund,
declining by ten percent for each of the subsequent nine years during which the equipment
remains within the taconite tax relief area. If a taconite production facility is sold after
operations at the facility had ceased, any money remaining in the fund for the former
producer may be released to the purchaser of the facility on the terms otherwise applicable
to the former producer under this section. If a producer fails to provide matching funds
for a proposed expenditure within six months after the commissioner approves release
of the funds, the funds are available for release to another producer in proportion to the
distribution provided and under the conditions of this section. Any portion of the fund
which is not released by the commissioner within one year of its deposit in the fund shall
be divided between the taconite environmental protection fund created in section 298.223
and the Douglas J. Johnson economic protection trust fund created in section 298.292 for
placement in their respective special accounts. Two-thirds of the unreleased funds shall be
distributed to the taconite environmental protection fund and one-third to the Douglas J.
Johnson economic protection trust fund.
(b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of
distributions and the review process, an amount equal to ten cents per taxable ton of
production in 2007, for distribution in 2008 only, that would otherwise be distributed
under paragraph (a), may be used for a loan or grant for the cost of providing for a
value-added wood product facility located in the taconite tax relief area and in a county
that contains a city of the first class. This amount must be deducted from the distribution
under paragraph (a) for which a matching expenditure by the producer is not required. The
granting of the loan or grant is subject to approval by the board. If the money is provided
as a loan, interest must be payable on the loan at the rate prescribed in section 298.2213,
subdivision 3. (ii) Repayments of the loan and interest, if any, must be deposited in the
taconite environment protection fund under sections 298.222 to 298.225. If a loan or
grant is not made under this paragraph by July 1, 2012, the amount that had been made
available for the loan under this paragraph must be transferred to the taconite environment
protection fund under sections 298.222 to 298.225. (iii) Money distributed in 2008 to the
fund established under this section that exceeds ten cents per ton is available to qualifying
producers under paragraph (a) on a pro rata basis.
(c) Repayment or transfer of money to the taconite environmental protection fund
under paragraph (b), item (ii), must be allocated by the Iron Range Resources and
Rehabilitation Board for public works projects in house legislative districts in the same
proportion as taxable tonnage of production in 2007 in each house legislative district, for
distribution in 2008, bears to total taxable tonnage of production in 2007, for distribution
in 2008. Notwithstanding any other law to the contrary, expenditures under this paragraph
do not require approval by the governor. For purposes of this paragraph, "house legislative
districts" means the legislative districts in existence on May 15, 2009.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning for the 2014 distribution.
new text end
Sec. 12.
Minnesota Statutes 2012, section 298.24, subdivision 1, is amended to read:
Subdivision 1.
Imposed; calculation.
(a) For concentrate produced in deleted text begin 2001, 2002,
and 2003deleted text end new text begin 2013new text end , there is imposed upon taconite and iron sulphides, and upon the mining
and quarrying thereof, and upon the production of iron ore concentrate therefrom, and
upon the concentrate so produced, a tax of deleted text begin $2.103deleted text end new text begin $2.56new text end per gross ton of merchantable
iron ore concentrate produced therefrom. deleted text begin For concentrates produced in 2005, the tax rate
is the same rate imposed for concentrates produced in 2004. For concentrates produced in
2009 and subsequent years,deleted text end The tax is also imposed upon other iron-bearing material.
(b) For concentrates produced in deleted text begin 2006deleted text end new text begin 2014new text end and subsequent years, the tax rate shall
be equal to the preceding year's tax rate plus an amount equal to the preceding year's tax
rate multiplied by the percentage increase in the implicit price deflator from the fourth
quarter of the second preceding year to the fourth quarter of the preceding year. "Implicit
price deflator" means the implicit price deflator for the gross domestic product prepared by
the Bureau of Economic Analysis of the United States Department of Commerce.
(c) An additional tax is imposed equal to three cents per gross ton of merchantable
iron ore concentrate for each one percent that the iron content of the product exceeds 72
percent, when dried at 212 degrees Fahrenheit.
(d) The tax on taconite and iron sulphides shall be imposed on the average of the
production for the current year and the previous two years. The rate of the tax imposed
will be the current year's tax rate. This clause shall not apply in the case of the closing
of a taconite facility if the property taxes on the facility would be higher if this clause
and section 298.25 were not applicable. The tax on other iron-bearing material shall be
imposed on the current year production.
(e) If the tax or any part of the tax imposed by this subdivision is held to be
unconstitutional, a tax of deleted text begin $2.103deleted text end new text begin $2.56new text end per gross ton of merchantable iron ore concentrate
produced shall be imposed.
(f) Consistent with the intent of this subdivision to impose a tax based upon the
weight of merchantable iron ore concentrate, the commissioner of revenue may indirectly
determine the weight of merchantable iron ore concentrate included in fluxed pellets by
subtracting the weight of the limestone, dolomite, or olivine derivatives or other basic
flux additives included in the pellets from the weight of the pellets. For purposes of this
paragraph, "fluxed pellets" are pellets produced in a process in which limestone, dolomite,
olivine, or other basic flux additives are combined with merchantable iron ore concentrate.
No subtraction from the weight of the pellets shall be allowed for binders, mineral and
chemical additives other than basic flux additives, or moisture.
(g)(1) Notwithstanding any other provision of this subdivision, for the first two years
of a plant's commercial production of direct reduced ore from ore mined in this state, no
tax is imposed under this section. As used in this paragraph, "commercial production" is
production of more than 50,000 tons of direct reduced ore in the current year or in any prior
year, "noncommercial production" is production of 50,000 tons or less of direct reduced ore
in any year, and "direct reduced ore" is ore that results in a product that has an iron content
of at least 75 percent. For the third year of a plant's commercial production of direct
reduced ore, the rate to be applied to direct reduced ore is 25 percent of the rate otherwise
determined under this subdivision. For the fourth commercial production year, the rate is
50 percent of the rate otherwise determined under this subdivision; for the fifth commercial
production year, the rate is 75 percent of the rate otherwise determined under this
subdivision; and for all subsequent commercial production years, the full rate is imposed.
(2) Subject to clause (1), production of direct reduced ore in this state is subject to
the tax imposed by this section, but if that production is not produced by a producer of
taconite, iron sulfides, or other iron-bearing material, the production of taconite, iron
sulfides, or other iron-bearing material, that is consumed in the production of direct
reduced iron in this state is not subject to the tax imposed by this section on taconite,
iron sulfides, or other iron-bearing material.
(3) Notwithstanding any other provision of this subdivision, no tax is imposed
on direct reduced ore under this section during the facility's noncommercial production
of direct reduced ore. The taconite or iron sulphides consumed in the noncommercial
production of direct reduced ore is subject to the tax imposed by this section on taconite
and iron sulphides. Three-year average production of direct reduced ore does not
include production of direct reduced ore in any noncommercial year. Three-year average
production for a direct reduced ore facility that has noncommercial production is the
average of the commercial production of direct reduced ore for the current year and the
previous two commercial years.
(4) This paragraph applies only to plants for which all environmental permits have
been obtained and construction has begun before July 1, 2008.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning for the 2013 production
year.
new text end
Sec. 13.
Minnesota Statutes 2012, section 298.28, subdivision 4, is amended to read:
Subd. 4.
School districts.
(a) deleted text begin 23.15deleted text end new text begin 32.15new text end cents per taxable ton, plus the increase
provided in paragraph (d), less the amount that would have been computed under
Minnesota Statutes 2008, section 126C.21, subdivision 4, for the current year for that
district, must be allocated to qualifying school districts to be distributed, based upon the
certification of the commissioner of revenue, under paragraphs (b), (c), and (f).
(b)(i) 3.43 cents per taxable ton must be distributed to the school districts in which
the lands from which taconite was mined or quarried were located or within which the
concentrate was produced. The distribution must be based on the apportionment formula
prescribed in subdivision 2.
(ii) Four cents per taxable ton from each taconite facility must be distributed to
each affected school district for deposit in a fund dedicated to building maintenance
and repairs, as follows:
(1) proceeds from Keewatin Taconite or its successor are distributed to Independent
School Districts Nos. 316, Coleraine, and 319, Nashwauk-Keewatin, or their successor
districts;
(2) proceeds from the Hibbing Taconite Company or its successor are distributed to
Independent School Districts Nos. 695, Chisholm, and 701, Hibbing, or their successor
districts;
(3) proceeds from the Mittal Steel Company and Minntac or their successors are
distributed to Independent School Districts Nos. 712, Mountain Iron-Buhl, 706, Virginia,
2711, Mesabi East, and 2154, Eveleth-Gilbert, or their successor districts;
(4) proceeds from the Northshore Mining Company or its successor are distributed
to Independent School Districts Nos. 2142, St. Louis County, and 381, Lake Superior,
or their successor districts; and
(5) proceeds from United Taconite or its successor are distributed to Independent
School Districts Nos. 2142, St. Louis County, and 2154, Eveleth-Gilbert, or their
successor districts.
Revenues that are required to be distributed to more than one district shall be
apportioned according to the number of pupil units identified in section 126C.05,
subdivision 1, enrolled in the second previous year.
(c)(i) deleted text begin 15.72deleted text end new text begin 24.72new text end cents per taxable ton, less any amount distributed under paragraph
(e), shall be distributed to a group of school districts comprised of those school districts
which qualify as a tax relief area under section 273.134, paragraph (b), or in which there is
a qualifying municipality as defined by section 273.134, paragraph (a), in direct proportion
to school district indexes as follows: for each school district, its pupil units determined
under section 126C.05 for the prior school year shall be multiplied by the ratio of the
average adjusted net tax capacity per pupil unit for school districts receiving aid under
this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year
ending prior to distribution to the adjusted net tax capacity per pupil unit of the district.
Each district shall receive that portion of the distribution which its index bears to the sum
of the indices for all school districts that receive the distributions.
(ii) Notwithstanding clause (i), each school district that receives a distribution
under sections 298.018; 298.23 to 298.28, exclusive of any amount received under this
clause; 298.34 to 298.39; 298.391 to 298.396; 298.405; or any law imposing a tax on
severed mineral values after reduction for any portion distributed to cities and towns
under section 126C.48, subdivision 8, paragraph (5), that is less than the amount of its
levy reduction under section 126C.48, subdivision 8, for the second year prior to the
year of the distribution shall receive a distribution equal to the difference; the amount
necessary to make this payment shall be derived from proportionate reductions in the
initial distribution to other school districts under clause (i). If there are insufficient tax
proceeds to make the distribution provided under this paragraph in any year, money must
be transferred from the taconite property tax relief account in subdivision 6, to the extent
of the shortfall in the distribution.
(d)new text begin (1)new text end Any school district described in paragraph (c) where a levy increase pursuant
to section 126C.17, subdivision 9, was authorized by referendum for taxes payable in
2001, shall receive a distribution of 21.3 cents per ton. Each district shall receive $175
times the pupil units identified in section 126C.05, subdivision 1, enrolled in the second
previous year or the 1983-1984 school year, whichever is greater, less the product of 1.8
percent times the district's taxable net tax capacity in deleted text begin the second previous yeardeleted text end new text begin 2011new text end .
new text begin
(2) Districts qualifying under paragraph (c) must receive additional taconite aid each
year equal to 22.5 percent of the amount obtained by subtracting:
new text end
new text begin
(i) 1.8 percent of the district's net tax capacity for 2011, from:
new text end
new text begin
(ii) the district's weighted average daily membership for fiscal year 2012 multiplied
by the sum of:
new text end
new text begin
(A) $415, plus
new text end
new text begin
(B) the district's referendum revenue allowance for fiscal year 2013.
new text end
If the total amount provided by paragraph (d) is insufficient to make the payments
herein required then the entitlement of $175 per pupil unit shall be reduced uniformly
so as not to exceed the funds available. Any amounts received by a qualifying school
district in any fiscal year pursuant to paragraph (d) shall not be applied to reduce general
education aid which the district receives pursuant to section 126C.13 or the permissible
levies of the district. Any amount remaining after the payments provided in this paragraph
shall be paid to the commissioner of Iron Range resources and rehabilitation who shall
deposit the same in the taconite environmental protection fund and the Douglas J. Johnson
economic protection trust fund as provided in subdivision 11.
Each district receiving money according to this paragraph shall reserve the lesser of
the amount received under this paragraph or $25 times the number of pupil units served
in the district. It may use the money for early childhood programs deleted text begin or for outcome-based
learning programs that enhance the academic quality of the district's curriculum. The
outcome-based learning programs must be approved by the commissioner of educationdeleted text end .
(e) There shall be distributed to any school district the amount which the school
district was entitled to receive under section 298.32 in 1975.
(f) Four cents per taxable ton must be distributed to qualifying school districts
according to the distribution specified in paragraph (b), clause (ii), and deleted text begin twodeleted text end new text begin 11new text end cents
per taxable ton must be distributed according to the distribution specified in paragraph
(c). These amounts are not subject to sections 126C.21, subdivision 4, and 126C.48,
subdivision 8.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning for the 2014 distribution.
new text end
Sec. 14.
Minnesota Statutes 2012, section 298.28, subdivision 6, is amended to read:
Subd. 6.
Property tax relief.
(a) In deleted text begin 2002deleted text end new text begin 2014new text end and thereafter, deleted text begin 33.9deleted text end new text begin 34.8new text end cents per
taxable ton, less any amount required to be distributed under paragraphs (b) and (c), or
section 298.2961, subdivision 5, must be allocated to St. Louis County acting as the
counties' fiscal agent, to be distributed as provided in sections 273.134 to 273.136.
(b) If an electric power plant owned by and providing the primary source of power
for a taxpayer mining and concentrating taconite is located in a county other than the
county in which the mining and the concentrating processes are conducted, .1875 cent per
taxable ton of the tax imposed and collected from such taxpayer shall be paid to the county.
(c) If an electric power plant owned by and providing the primary source of power
for a taxpayer mining and concentrating taconite is located in a school district other than
a school district in which the mining and concentrating processes are conducted, .4541
cent per taxable ton of the tax imposed and collected from the taxpayer shall be paid to
the school district.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning for the 2014 distribution.
new text end
Sec. 15.
Minnesota Statutes 2012, section 298.28, subdivision 10, is amended to read:
Subd. 10.
Increase.
(a) Except as provided in paragraph (b), beginning with
distributions in 2000, the amount determined under subdivision 9 shall be increased in the
same proportion as the increase in the implicit price deflator as provided in section 298.24,
subdivision 1. Beginning with distributions in deleted text begin 2003deleted text end new text begin 2015new text end , the amount determined under
subdivision 6, paragraph (a), shall be increased in the same proportion as the increase in
the implicit price deflator as provided in section 298.24, subdivision 1.
(b) For distributions in 2005 and subsequent years, an amount equal to the increased
tax proceeds attributable to the increase in the implicit price deflator as provided in
section 298.24, subdivision 1, for taxes paid in 2005, except for the amount of revenue
increases provided in subdivision 4, paragraph (d), is distributed to the grant and loan fund
established in section 298.2961, subdivision 4.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning for the 2014 distribution.
new text end
Sec. 16.
Minnesota Statutes 2012, section 298.75, subdivision 2, is amended to read:
Subd. 2.
Tax imposed.
(a) Except as provided in paragraph (e), a county that
imposes the aggregate production tax shall impose upon every operator a production tax
of 21.5 cents per cubic yard or 15 cents per ton of aggregate material excavated in the
county except that the county board may decide not to impose this tax if it determines
that in the previous year operators removed less than 20,000 tons or 14,000 cubic yards of
aggregate material from that county.new text begin A county board may authorize an additional tax on
aggregate material excavated in the county of up to 43 cents per cubic yard or 30 cents
per ton of aggregate material excavated in the county.new text end The tax shall not be imposed on
aggregate material excavated in the county until the aggregate material is transported from
the extraction site or sold, whichever occurs first. When aggregate material is stored in a
stockpile within the state of Minnesota and a public highway, road or street is not used
for transporting the aggregate material, the tax shall not be imposed until either when the
aggregate material is sold, or when it is transported from the stockpile site, or when it is
used from the stockpile, whichever occurs first.
(b) Except as provided in paragraph (e), a county that imposes the aggregate
production tax under paragraph (a) shall impose upon every importer a production tax
of 21.5 cents per cubic yard or 15 cents per ton of aggregate material imported into the
county.new text begin A county board may authorize an additional tax on every importer of up to 43
cents per cubic yard or 30 cents per ton of aggregate material imported into the county.
new text end The tax shall be imposed when the aggregate material is imported from the extraction site
or sold. When imported aggregate material is stored in a stockpile within the state of
Minnesota and a public highway, road, or street is not used for transporting the aggregate
material, the tax shall be imposed either when the aggregate material is sold, when it is
transported from the stockpile site, or when it is used from the stockpile, whichever occurs
first. The tax shall be imposed on an importer when the aggregate material is imported
into the county that imposes the tax.
(c) If the aggregate material is transported directly from the extraction site to a
waterway, railway, or another mode of transportation other than a highway, road or street,
the tax imposed by this section shall be apportioned equally between the county where the
aggregate material is extracted and the county to which the aggregate material is originally
transported. If that destination is not located in Minnesota, then the county where the
aggregate material was extracted shall receive all of the proceeds of the tax.
(d) A county, city, or town that receives revenue under this section is prohibited
from imposing any additional host community fees on aggregate production within that
county, city, or town.
(e) A county that borders two other states and that is not contiguous to a county
that imposes a tax under this section may impose the taxes under paragraphs (a) and (b)
at the rate of ten cents per cubic yard or seven cents per ton. This paragraph expires
December 31, 2014.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 17. new text begin 2013 DISTRIBUTION ONLY.
new text end
new text begin
For the 2013 distribution, a special fund is established to receive $4,700,000 of the
amount that otherwise would be distributed under Minnesota Statutes, section 298.28,
subdivision 6, and this amount must be paid as follows:
new text end
new text begin
(1) $2,000,000 to the city of Hibbing for improvements to the city's water supply
system;
new text end
new text begin
(2) $1,700,000 to the city of Mountain Iron for the cost of moving utilities required
as a result of actions undertaken by United States Steel Corporation; and
new text end
new text begin
(3) $1,000,000 to the city of Tower for improvements to a marina.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for the 2013 distribution, all of which
must be made in the August 2013 payment.
new text end
Sec. 18. new text begin IRON RANGE RESOURCES AND REHABILITATION
COMMISSIONER; BONDS AUTHORIZED.
new text end
new text begin Subdivision 1. new text end
new text begin Issuance; purpose. new text end
new text begin
Notwithstanding any provision of Minnesota
Statutes, chapter 298, to the contrary, the commissioner of Iron Range resources and
rehabilitation may issue revenue bonds in a principal amount of $38,000,000 in one or more
series, and bonds to refund those bonds. The proceeds of the bonds must be used to make
grants to school districts located in the taconite tax relief area defined in Minnesota Statutes,
section 273.134, or the taconite assistance area defined in Minnesota Statutes, section
273.1341, to be used by the school districts to pay for building projects, such as energy
efficiency, technology, infrastructure, health, safety, and maintenance improvements.
new text end
new text begin Subd. 2. new text end
new text begin Appropriation. new text end
new text begin
(a) There is annually appropriated from the distribution of
taconite production tax revenues under Minnesota Statues, section 298.28, prior to the
calculation of the amount of the remainder under Minnesota Statutes, section 298.28,
subdivision 11, an amount sufficient to pay when due the principal and interest on the
bonds issued pursuant to subdivision 1. The appropriation under this section must not
exceed an amount equal to ten cents per taxable ton.
new text end
new text begin
(b) If in any year the amount available under paragraph (a) is insufficient to pay
principal and interest due on the bonds in that year, an additional amount is appropriated
from the Douglas J. Johnson fund to make up the deficiency.
new text end
new text begin
(c) The appropriation under this subdivision terminates upon payment or maturity of
the last of the bonds issued under this section.
new text end
new text begin Subd. 3. new text end
new text begin Credit enhancement. new text end
new text begin
The bonds issued under this section are "debt
obligations" and the commissioner of Iron Range resources and rehabilitation is a "district"
for purposes of Minnesota Statutes, section 126C.55, provided that advances made under
Minnesota Statutes, section 126C.55, subdivision 2, are not subject to Minnesota Statutes,
section 126C.55, subdivisions 4 to 7.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment and
applies beginning with the 2014 distribution under Minnesota Statutes, section 298.28.
new text end
ARTICLE 12
PUBLIC FINANCE
Section 1.
Minnesota Statutes 2012, section 118A.04, subdivision 3, is amended to read:
Subd. 3.
State and local securities.
Funds may be invested in the following:
(1) any security which is a general obligation of any state or local government with
taxing powers which is rated "A" or better by a national bond rating service;
(2) any security which is a revenue obligation of any state or local government deleted text begin with
taxing powersdeleted text end which is rated "AA" or better by a national bond rating service; deleted text begin and
deleted text end
(3) a general obligation of the Minnesota housing finance agency which is a moral
obligation of the state of Minnesota and is rated "A" or better by a national bond rating
agencydeleted text begin .deleted text end new text begin ; and
new text end
new text begin
(4) any security which is an obligation of a school district with an original maturity
not exceeding 13 months and (i) rated in the highest category by a national bond rating
service or (ii) enrolled in the credit enhancement program pursuant to section 126C.55.
new text end
Sec. 2.
Minnesota Statutes 2012, section 118A.05, subdivision 5, is amended to read:
Subd. 5.
Guaranteed investment contracts.
Agreements or contracts for
guaranteed investment contracts may be entered into if they are issued or guaranteed
by United States commercial banks, domestic branches of foreign banks, United States
insurance companies, or their Canadian subsidiaries, or the domestic affiliates of any
of the foregoing. The credit quality of the issuer's or guarantor's short- and long-term
unsecured debt must be rated in one of the two highest categories by a nationally
recognized rating agency.new text begin Agreements or contracts for guaranteed investment contracts
with a term of 18 months or less may be entered into regardless of the credit quality of
the issuer's or guarantor's long-term unsecured debt, provided that the credit quality of
the issuer's short-term unsecured debt is rated in the highest category by a nationally
recognized rating agency.new text end Should the issuer's or guarantor's credit quality be downgraded
below "A", the government entity must have withdrawal rights.
Sec. 3.
Minnesota Statutes 2012, section 216C.436, subdivision 7, is amended to read:
Subd. 7.
Repayment.
An implementing entity that finances an energy improvement
under this section must:
(1) secure payment with a lien against the deleted text begin benefiteddeleted text end qualifying real property; and
(2) collect repayments as a special assessment as provided for in section 429.101
or by charternew text begin , provided that special assessments may be made payable in up to 20 equal
annual installmentsnew text end .
If the implementing entity is an authority, the local government that authorized
the authority to act as implementing entity shall impose and collect special assessments
necessary to pay debt service on bonds issued by the implementing entity under subdivision
8, and shall transfer all collections of the assessments upon receipt to the authority.
Sec. 4.
Minnesota Statutes 2012, section 373.01, subdivision 3, is amended to read:
Subd. 3.
Capital notes.
(a) A county board may, by resolution and without
referendum, issue capital notes subject to the county debt limit to purchase capital
equipment useful for county purposes that has an expected useful life at least equal to the
term of the notes. The notes shall be payable in not more than ten years and shall be
issued on terms and in a manner the board determines. A tax levy shall be made for
payment of the principal and interest on the notes, in accordance with section 475.61,
as in the case of bonds.
(b) For purposes of this subdivision, "capital equipment" means:
(1) public safety, ambulance, road construction or maintenance, and medical
equipment; and
(2) computer hardware and software, new text begin without regard to its expected useful life,
new text end whether bundled with machinery or equipment or unbundleddeleted text begin .deleted text end new text begin , together with application
development services and training related to the use of the computer hardware or software.
new text end
Sec. 5.
Minnesota Statutes 2012, section 373.40, subdivision 1, is amended to read:
Subdivision 1.
Definitions.
For purposes of this section, the following terms have
the meanings given.
(a) "Bonds" means an obligation as defined under section 475.51.
(b) "Capital improvement" means acquisition or betterment of public lands,
buildings, or other improvements within the county for the purpose of a county courthouse,
administrative building, health or social service facility, correctional facility, jail, law
enforcement center, hospital, morgue, library, park, qualified indoor ice arena, roads
and bridges, new text begin public works facilities, fairground buildings, and records and data storage
facilities, new text end and the acquisition of development rights in the form of conservation easements
under chapter 84C. An improvement must have an expected useful life of five years or more
to qualify. "Capital improvement" does not include a recreation or sports facility building
(such as, but not limited to, a gymnasium, ice arena, racquet sports facility, swimming
pool, exercise room or health spa), unless the building is part of an outdoor park facility
and is incidental to the primary purpose of outdoor recreation.new text begin For purposes of this section,
"capital improvement" includes expenditures for purposes described in this paragraph that
have been incurred by a county before approval of a capital improvement plan, if such
expenditures are included in a capital improvement plan approved on or before the date of
the public hearing under subdivision 2 regarding issuance of bonds for such expenditures.
new text end
(c) "Metropolitan county" means a county located in the seven-county metropolitan
area as defined in section 473.121 or a county with a population of 90,000 or more.
(d) "Population" means the population established by the most recent of the
following (determined as of the date the resolution authorizing the bonds was adopted):
(1) the federal decennial census,
(2) a special census conducted under contract by the United States Bureau of the
Census, or
(3) a population estimate made either by the Metropolitan Council or by the state
demographer under section 4A.02.
(e) "Qualified indoor ice arena" means a facility that meets the requirements of
section 373.43.
(f) "Tax capacity" means total taxable market value, but does not include captured
market value.
Sec. 6.
Minnesota Statutes 2012, section 373.40, subdivision 2, is amended to read:
Subd. 2.
Application of election requirement.
(a) Bonds issued by a county
to finance capital improvements under an approved capital improvement plan are not
subject to the election requirements of section 375.18 or 475.58. The bonds must be
approved by vote of at least three-fifths of the members of the county board. In the case
of a metropolitan county, the bonds must be approved by vote of at least two-thirds of
the members of the county board.
(b) Before issuance of bonds qualifying under this section, the county must publish
a notice of its intention to issue the bonds and the date and time of a hearing to obtain
public comment on the matter. The notice must be published in the official newspaper
of the county or in a newspaper of general circulation in the county. The notice must be
published at least 14, but not more than 28, days before the date of the hearing.
(c) A county may issue the bonds only upon obtaining the approval of a majority of
the voters voting on the question of issuing the obligations, if a petition requesting a vote
on the issuance is signed by voters equal to five percent of the votes cast in the county in
the lastnew text begin countynew text end general election and is filed with the county auditor within 30 days after
the public hearing. deleted text begin The commissioner of revenue shall prepare a suggested form of the
question to be presented at the election.deleted text end new text begin If the county elects not to submit the question to
the voters, the county shall not propose the issuance of bonds under this section for the
same purpose and in the same amount for a period of 365 days from the date of receipt
of the petition. If the question of issuing the bonds is submitted and not approved by the
voters, the provisions of section 475.58, subdivision 1a, shall apply.
new text end
Sec. 7.
Minnesota Statutes 2012, section 383D.41, is amended by adding a subdivision
to read:
new text begin Subd. 10. new text end
new text begin Housing improvement areas. new text end
new text begin
(a) The Dakota County Community
Development Agency has all powers of a city, in addition to its existing powers as an
implementing entity, under sections 428A.11 to 428A.21, in connection with housing
improvement areas in Dakota County. For purposes of the Dakota County Community
Development Agency's exercise of those powers the provisions of this subdivision apply.
new text end
new text begin
(b) References in sections 428A.11 to 428A.21 to:
new text end
new text begin
(1) a "mayor" are references to the executive director of the Dakota County
Community Development Agency;
new text end
new text begin
(2) a "council" are references to the board of commissioners of the Dakota County
Community Development Agency; and
new text end
new text begin
(3) a "city clerk" are references to an official of the Dakota County Community
Development Agency designated from time to time by the executive director of the Dakota
County Community Development Agency.
new text end
new text begin
(c) Notwithstanding section 428A.11, subdivision 3, and 428A.13, subdivision 1,
the governing body of the Dakota County Community Development Agency may adopt
a resolution, rather than an ordinance, establishing one or more housing improvement
areas, and "enabling ordinance" means a resolution so adopted for purposes of sections
428A.11 to 428A.21.
new text end
new text begin
(d) As long as the governing body of the Dakota County Community Development
Agency and the Dakota County Board of Commissioners consists of identical membership,
the Dakota County Community Development Agency may pledge the full faith, credit and
taxing power of Dakota County to obligations issued by the Dakota County Community
Development Agency under section 428A.16.
new text end
new text begin
(e) Notwithstanding the provisions of section 428A.21, the establishment by the
Dakota County Community Development Agency of a new housing improvement area
after June 30, 2016, requires enactment of a special law authorizing establishment of the
area. Any extensions of the deadline for housing improvement districts under general law
beyond that date or repeal of the deadline also applies to housing improvement areas
established by the Dakota County Community Development Agency.
new text end
Sec. 8.
Minnesota Statutes 2012, section 410.32, is amended to read:
410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.
(a) Notwithstanding any contrary provision of other law or charter, a home rule
charter city may, by resolution and without public referendum, issue capital notes subject
to the city debt limit to purchase capital equipment.
(b) For purposes of this section, "capital equipment" means:
(1) public safety equipment, ambulance and other medical equipment, road
construction and maintenance equipment, and other capital equipment; and
(2) computer hardware and software,new text begin without regard to its expected useful life,
new text end whether bundled with machinery or equipment or unbundleddeleted text begin .deleted text end new text begin , together with application
development services and training related to the use of the computer hardware and software.
new text end
(c) The equipment or software must have an expected useful life at least as long
as the term of the notes.
(d) The notes shall be payable in not more than ten years and be issued on terms and
in the manner the city determines. The total principal amount of the capital notes issued
in a fiscal year shall not exceed 0.03 percent of the market value of taxable property
in the city for that year.
(e) A tax levy shall be made for the payment of the principal and interest on the
notes, in accordance with section 475.61, as in the case of bonds.
(f) Notes issued under this section shall require an affirmative vote of two-thirds of
the governing body of the city.
(g) Notwithstanding a contrary provision of other law or charter, a home rule charter
city may also issue capital notes subject to its debt limit in the manner and subject to the
limitations applicable to statutory cities pursuant to section 412.301.
Sec. 9.
Minnesota Statutes 2012, section 412.301, is amended to read:
412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.
(a) The council may issue certificates of indebtedness or capital notes subject to the
city debt limits to purchase capital equipment.
(b) For purposes of this section, "capital equipment" means:
(1) public safety equipment, ambulance and other medical equipment, road
construction and maintenance equipment, and other capital equipment; and
(2) computer hardware and software,new text begin without regard to its expected useful life,
new text end whether bundled with machinery or equipment or unbundleddeleted text begin .deleted text end new text begin , together with application
development services and training related to the use of the computer hardware or software.
new text end
(c) The equipment or software must have an expected useful life at least as long as
the terms of the certificates or notes.
(d) Such certificates or notes shall be payable in not more than ten years and shall be
issued on such terms and in such manner as the council may determine.
(e) If the amount of the certificates or notes to be issued to finance any such purchase
exceeds 0.25 percent of the market value of taxable property in the city, they shall not
be issued for at least ten days after publication in the official newspaper of a council
resolution determining to issue them; and if before the end of that time, a petition asking
for an election on the proposition signed by voters equal to ten percent of the number of
voters at the last regular municipal election is filed with the clerk, such certificates or notes
shall not be issued until the proposition of their issuance has been approved by a majority
of the votes cast on the question at a regular or special election.
(f) A tax levy shall be made for the payment of the principal and interest on such
certificates or notes, in accordance with section 475.61, as in the case of bonds.
Sec. 10.
new text begin
[435.39] MUNICIPAL STREET IMPROVEMENT DISTRICTS.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
(a) For the purposes of this section, the following terms
have the meanings given them.
new text end
new text begin
(b) "Governing body" means the city council of a municipality.
new text end
new text begin
(c) "Improvements" means construction, reconstruction, and facility upgrades
involving: right-of-way acquisition; paving; curbs and gutters; bridges and culverts and
their repair; milling; overlaying; drainage and storm sewers; excavation; base work;
subgrade corrections; street lighting; traffic signals; signage; sidewalks; pavement
markings; boulevard and easement restoration; impact mitigation; connection and
reconnection of utilities; turn lanes; medians; street and alley returns; retaining walls;
fences; lane additions; and fixed transit infrastructure, trails, or pathways. "Fixed transit
infrastructure" does not include commuter rail rolling stock, light rail vehicles, or
transit way buses; capital costs for park-and-ride facilities; feasibility studies, planning,
alternative analyses, environmental studies, engineering, or construction of transit ways;
or operating assistance for transit ways.
new text end
new text begin
(d) "Maintenance" means striping, seal coating, crack sealing, pavement repair,
sidewalk maintenance, signal maintenance, street light maintenance, and signage.
new text end
new text begin
(e) "Municipal street" means a street, alley, or public way in which the municipality
is the road authority with powers conferred by section 429.021.
new text end
new text begin
(f) "Municipality" means a home rule charter or statutory city.
new text end
new text begin
(g) "Street improvement district" means a geographic area designated by a
municipality and located within the municipality within which street improvements and
maintenance may be undertaken and financed according to this section.
new text end
new text begin
(h) "Unimproved parcel" means a parcel of land that abuts an:
new text end
new text begin
(1) unimproved municipal street and that is not served by municipal sewer or water
utilities; or
new text end
new text begin
(2) improved municipal street and served by municipal sewer or water utilities
and that:
new text end
new text begin
(i) is not improved by construction of an authorized structure; or
new text end
new text begin
(ii) contains a structure that has not previously been occupied.
new text end
new text begin Subd. 2. new text end
new text begin Authorization. new text end
new text begin
A municipality may establish by ordinance municipal
street improvement districts and may defray all or part of the total costs of municipal street
improvements and maintenance by apportioning street improvement fees to all of the
developed parcels located in the district. A street improvement district must not include
any property already located in another street improvement district.
new text end
new text begin Subd. 3. new text end
new text begin Uniformity. new text end
new text begin
(a) The total costs of municipal street improvements and
maintenance must be apportioned to all developed parcels or developed tracts of land
located in the established street improvement district on a uniform basis within each
classification of real estate. Apportionment must be made on the basis of one of the
following:
new text end
new text begin
(1) estimated market value;
new text end
new text begin
(2) tax capacity;
new text end
new text begin
(3) front footage;
new text end
new text begin
(4) land or building area; or
new text end
new text begin
(5) some combination of clauses (1) to (4).
new text end
new text begin
(b) Costs must not be apportioned in such a way that the cost borne by any
classification of property is more than twice the cost that would be borne by that
classification if costs were apportioned uniformly to all classifications of property under
the method selected in paragraph (a), clauses (1) to (5).
new text end
new text begin Subd. 4. new text end
new text begin Adoption of plan. new text end
new text begin
Before establishing a municipal street improvement
district or authorizing a street improvement fee, a municipality must propose and adopt a
street improvement plan that identifies the location of the municipal street improvement
district and identifies and estimates the costs of the proposed improvements during the
proposed period of collection of municipal street improvement fees, which must be for
a period of at least five years and at most 20 years. Notice of a public hearing on the
proposed plan must be given by mail to all affected landowners at least 30 days before
the hearing and posted for at least 30 days before the hearing. At the public hearing, the
governing body must present the plan and all affected landowners in attendance must have
the opportunity to comment before the governing body considers adoption of the plan.
new text end
new text begin Subd. 5. new text end
new text begin Use of fees. new text end
new text begin
Revenues from street improvement fees must be placed in
a separate account and used only for projects located within the district and identified
in the municipal street improvement plan.
new text end
new text begin Subd. 6. new text end
new text begin Collection; up to 20 years. new text end
new text begin
(a) An ordinance adopted under this section
must provide for billing and payment of the fee on a monthly, quarterly, or other basis
as directed by the governing body. The governing body may collect municipal street
improvement fees within a street improvement district for a maximum of 20 years.
new text end
new text begin
(b) Fees that, as of October 15 of each year, have remained unpaid for at least 30
days may be certified to the county auditor for collection as a special assessment payable
in the following calendar year against the affected property.
new text end
new text begin Subd. 7. new text end
new text begin Improvement fee. new text end
new text begin
A municipality may impose a municipal street
improvement fee by ordinance. The ordinance must not be voted on or adopted until after
public notice is provided and a public hearing is held in the same manner as provided in
subdivision 4.
new text end
new text begin Subd. 8. new text end
new text begin Not exclusive means of financing improvements. new text end
new text begin
The use of the
municipal street improvement fee by a municipality does not restrict the municipality from
imposing other measures to pay the costs of local street improvements or maintenance,
except that a municipality must not impose special assessments for projects funded with
street improvement fees.
new text end
new text begin Subd. 9. new text end
new text begin Unimproved parcels; fees. new text end
new text begin
A municipality may not impose a street
improvement fee on any unimproved parcel located within an established street
improvement district until at least three years after either the date of substantial completion
of the paving of the previous unimproved municipal street or the date which a structure is
built and first occupied pursuant to a certificate of occupancy, whichever is later.
new text end
new text begin Subd. 10. new text end
new text begin Exempt property. new text end
new text begin
A municipality must not impose a municipal street
improvement fee on property that is exempt from taxation under the provisions of the
Minnesota Constitution, article X, section 1.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2013.
new text end
Sec. 11.
Minnesota Statutes 2012, section 473.39, is amended by adding a subdivision
to read:
new text begin Subd. 1s. new text end
new text begin Obligations. new text end
new text begin
After July 1, 2013, in addition to other authority in this
section, the council may issue certificates of indebtedness, bonds, or other obligations
under this section in an amount not exceeding $35,800,000 for capital expenditures as
prescribed in the council's transit capital improvement program and for related costs,
including the costs of issuance and sale of the obligations.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and
Washington.
new text end
Sec. 12.
Minnesota Statutes 2012, section 474A.04, subdivision 1a, is amended to read:
Subd. 1a.
Entitlement reservationsdeleted text begin ; carryforward; deductiondeleted text end .
Any amount
returned by an entitlement issuer before July 15 shall be reallocated through the housing
pool. Any amount returned on or after July 15 shall be reallocated through the unified
pool. An amount returned after the last Monday in November shall be reallocated to the
Minnesota Housing Finance Agency. deleted text begin Any amount of bonding authority that an entitlement
issuer carries forward under federal tax law that is not permanently issued or for which
the governing body of the entitlement issuer has not enacted a resolution electing to use
the authority for mortgage credit certificates and has not provided a notice of issue to the
commissioner before 4:30 p.m. on the last business day in December of the succeeding
calendar year shall be deducted from the entitlement allocation for that entitlement issuer
in the next succeeding calendar year. Any amount deducted from an entitlement issuer's
allocation under this subdivision shall be reallocated to other entitlement issuers, the
housing pool, the small issue pool, and the public facilities pool on a proportional basis
consistent with section 474A.03.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
and applies to any bonding authority allocated in 2012 and subsequent years.
new text end
Sec. 13.
Minnesota Statutes 2012, section 474A.062, is amended to read:
474A.062 MINNESOTA OFFICE OF HIGHER EDUCATION 120-DAY
ISSUANCE EXEMPTION.
The Minnesota Office of Higher Education is exempt from the 120-day issuance
requirements in this chapter and may carry forward allocations for student loan bonds deleted text begin into
one successive calendar yeardeleted text end , subject to carryforward notice requirements of section
474A.131, subdivision 2.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
and applies to any bonding authority allocated in 2012 and subsequent years.
new text end
Sec. 14.
Minnesota Statutes 2012, section 474A.091, subdivision 3a, is amended to read:
Subd. 3a.
Mortgage bonds.
(a) Bonding authority remaining in the unified pool on
October 1 is available for single-family housing programs for cities that applied in January
and received an allocation under section 474A.061, subdivision 2a, in the same calendar
year. The Minnesota Housing Finance Agency shall receive an allocation for mortgage
bonds pursuant to this section, minus any amounts for a city or consortium that intends to
issue bonds on its own behalf under paragraph (c).
(b) The agency may issue bonds on behalf of participating cities. The agency shall
request an allocation from the commissioner for all applicants who choose to have the
agency issue bonds on their behalf and the commissioner shall allocate the requested
amount to the agency. Allocations shall be awarded by the commissioner each Monday
commencing on the first Monday in October through the last Monday in November for
applications received by 4:30 p.m. on the Monday of the week preceding an allocation.
For cities who choose to have the agency issue bonds on their behalf, allocations
will be made loan by loan, on a first-come, first-served basis among the cities. The
agency shall submit an application fee pursuant to section 474A.03, subdivision 4, and an
application deposit equal to two percent of the requested allocation to the commissioner
when requesting an allocation from the unified pool. After awarding an allocation and
receiving a notice of issuance for mortgage bonds issued on behalf of the participating
cities, the commissioner shall transfer the application deposit to the Minnesota Housing
Finance Agency.
For purposes of paragraphs (a) to (d), "city" means a county or a consortium of
local government units that agree through a joint powers agreement to apply together
for single-family housing programs, and has the meaning given it in section 462C.02,
subdivision 6. "Agency" means the Minnesota Housing Finance Agency.
(c) Any city that received an allocation pursuant to section 474A.061, subdivision
2a, paragraph (f), in the current year that wishes to receive an additional allocation from
the unified pool and issue bonds on its own behalf or pursuant to a joint powers agreement
shall notify the Minnesota Housing Finance Agency by the third Monday in September.
The total amount of allocation for mortgage bonds for a city choosing to issue bonds on its
own behalf or through a joint powers agreement is limited to the lesser of: (i) the amount
requested, or (ii) the product of the total amount available for mortgage bonds from the
unified pool, multiplied by the ratio of the population of each city that applied in January
and received an allocation under section 474A.061, subdivision 2a, in the same calendar
year, as determined by the most recent estimate of the city's population released by the
state demographer's office to the total of the population of all the cities that applied in
January and received an allocation under section 474A.061, subdivision 2a, in the same
calendar year. If a city choosing to issue bonds on its own behalf or through a joint powers
agreement is located within a county that has also chosen to issue bonds on its own behalf
or through a joint powers agreement, the city's population will be deducted from the
county's population in calculating the amount of allocations under this paragraph.
The Minnesota Housing Finance Agency shall notify each city choosing to issue
bonds on its own behalf or pursuant to a joint powers agreement of the amount of its
allocation by October 15. Upon determining the amount of the allocation of each choosing
to issue bonds on its own behalf or through a joint powers agreement, the agency shall
forward a list specifying the amounts allotted to each city.
A city that chooses to issue bonds on its own behalf or through a joint powers
agreement may request an allocation from the commissioner by forwarding an application
with an application fee pursuant to section 474A.03, subdivision 4, and an application
deposit equal to two percent of the requested amount to the commissioner no later than
4:30 p.m. on the Monday of the week preceding an allocation. Allocations to cities that
choose to issue bonds on their own behalf shall be awarded by the commissioner on
the first Monday after October 15 through the last Monday in November. No city may
receive an allocation from the commissioner after the last Monday in November. The
commissioner shall allocate the requested amount to the city or cities subject to the
limitations under this subdivision.
If a city issues mortgage bonds from an allocation received under this paragraph,
the issuer must provide for the recycling of funds into new loans. If the issuer is not
able to provide for recycling, the issuer must notify the commissioner in writing of the
reason that recycling was not possible and the reason the issuer elected not to have the
Minnesota Housing Finance Agency issue the bonds. "Recycling" means the use of money
generated from the repayment and prepayment of loans for further eligible loans or for the
redemption of bonds and the issuance of current refunding bonds.
(d) No entitlement city or county or city in an entitlement county may apply for or
be allocated authority to issue mortgage bonds or use mortgage credit certificates from
the unified pool.
(e) An allocation awarded to the agency for mortgage bonds under this section
may be carried forward by the agency deleted text begin into the next succeeding calendar yeardeleted text end subject to
notice requirements under section 474A.131 deleted text begin and is available until the last business day in
December of that succeeding calendar yeardeleted text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
and applies to any bonding authority allocated in 2012 and subsequent years.
new text end
Sec. 15.
Minnesota Statutes 2012, section 475.521, subdivision 1, is amended to read:
Subdivision 1.
Definitions.
For purposes of this section, the following terms have
the meanings given.
(a) "Bonds" mean an obligation defined under section 475.51.
(b) "Capital improvement" means acquisition or betterment of public lands,
buildings or other improvements for the purpose of a city hall, town hall, library, public
safety facility, and public works facility. An improvement must have an expected useful
life of five years or more to qualify. Capital improvement does not include light rail transit
or any activity related to it, or a park, road, bridge, administrative building other than a
city or town hall, or land for any of those facilities.new text begin For purposes of this section, "capital
improvement" includes expenditures for purposes described in this paragraph that have
been incurred by a municipality before approval of a capital improvement plan, if such
expenditures are included in a capital improvement plan approved on or before the date of
the public hearing under subdivision 2 regarding issuance of bonds for such expenditures.
new text end
(c) "Municipality" means a home rule charter or statutory city or a town described in
section 368.01, subdivision 1 or 1a.
Sec. 16.
Minnesota Statutes 2012, section 475.521, subdivision 2, is amended to read:
Subd. 2.
Election requirement.
(a) Bonds issued by a municipality to finance
capital improvements under an approved capital improvements plan are not subject to the
election requirements of section 475.58. The bonds must be approved by an affirmative
vote of three-fifths of the members of a five-member governing body. In the case of a
governing body having more or less than five members, the bonds must be approved by a
vote of at least two-thirds of the members of the governing body.
(b) Before the issuance of bonds qualifying under this section, the municipality
must publish a notice of its intention to issue the bonds and the date and time of the
hearing to obtain public comment on the matter. The notice must be published in the
official newspaper of the municipality or in a newspaper of general circulation in the
municipality. Additionally, the notice may be posted on the official Web site, if any, of the
municipality. The notice must be published at least 14 but not more than 28 days before
the date of the hearing.
(c) A municipality may issue the bonds only after obtaining the approval of a
majority of the voters voting on the question of issuing the obligations, if a petition
requesting a vote on the issuance is signed by voters equal to five percent of the votes cast
in the municipality in the lastnew text begin municipalnew text end general election and is filed with the clerk within
30 days after the public hearing. deleted text begin The commissioner of revenue shall prepare a suggested
form of the question to be presented at the election.deleted text end new text begin If the municipality elects not to submit
the question to the voters, the municipality shall not propose the issuance of bonds under
this section for the same purpose and in the same amount for a period of 365 days from the
date of receipt of the petition. If the question of issuing the bonds is submitted and not
approved by the voters, the provisions of section 475.58, subdivision 1a, shall apply.
new text end
Sec. 17.
Minnesota Statutes 2012, section 475.58, subdivision 3b, is amended to read:
Subd. 3b.
Street reconstructionnew text begin and bituminous overlaysnew text end .
(a) A municipality may,
without regard to the election requirement under subdivision 1, issue and sell obligations
for street reconstructionnew text begin or bituminous overlaysnew text end , if the following conditions are met:
(1) the streets are reconstructed new text begin or overlaid new text end under a street reconstruction new text begin or overlay
new text end plan that describes the street reconstruction new text begin or overlay new text end to be financed, the estimated costs,
and any planned reconstruction new text begin or overlay new text end of other streets in the municipality over the
next five years, and the plan and issuance of the obligations has been approved by a vote
of all of the members of the governing body present at the meeting following a public
hearing for which notice has been published in the official newspaper at least ten days but
not more than 28 days prior to the hearing; and
(2) if a petition requesting a vote on the issuance is signed by voters equal to
five percent of the votes cast in the last municipal general election and is filed with the
municipal clerk within 30 days of the public hearing, the municipality may issue the bonds
only after obtaining the approval of a majority of the voters voting on the question of the
issuance of the obligations.new text begin If the municipality elects not to submit the question to the
voters, the municipality shall not propose the issuance of bonds under this section for the
same purpose and in the same amount for a period of 365 days from the date of receipt
of the petition. If the question of issuing the bonds is submitted and not approved by the
voters, the provisions of section 475.58, subdivision 1a, shall apply.
new text end
(b) Obligations issued under this subdivision are subject to the debt limit of the
municipality and are not excluded from net debt under section 475.51, subdivision 4.
(c) For purposes of this subdivision, street reconstruction new text begin and bituminous overlays
new text end includes utility replacement and relocation and other activities incidental to the street
reconstruction, turn lanes and other improvements having a substantial public safety
function, realignments, other modifications to intersect with state and county roads, and
the local share of state and county road projects.new text begin For purposes of this subdivision, "street
reconstruction" includes expenditures for street reconstruction that have been incurred
by a municipality before approval of a street reconstruction plan, if such expenditures
are included in a street reconstruction plan approved on or before the date of the public
hearing under paragraph (a), clause (1) regarding issuance of bonds for such expenditures.
new text end
(d) Except in the case of turn lanes, safety improvements, realignments, intersection
modifications, and the local share of state and county road projects, street reconstruction
new text begin and bituminous overlays new text end does not include the portion of project cost allocable to widening
a street or adding curbs and gutters where none previously existed.
Sec. 18.
Laws 1971, chapter 773, section 1, subdivision 2, as amended by Laws 1974,
chapter 351, section 5, Laws 1976, chapter 234, sections 1 and 7, Laws 1978, chapter 788,
section 1, Laws 1981, chapter 369, section 1, Laws 1983, chapter 302, section 1, Laws
1988, chapter 513, section 1, Laws 1992, chapter 511, article 9, section 23, Laws 1998,
chapter 389, article 3, section 27, and Laws 2002, chapter 390, section 23, is amended to
read:
Subd. 2. For each of the years deleted text begin 2003 todeleted text end 2013new text begin to 2024new text end , the city of St. Paul is
authorized to issue bonds in the aggregate principal amount of $20,000,000 for each year.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after compliance by the
governing body of the city of St. Paul with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end
Sec. 19. new text begin CARRYFORWARD OF BONDING AUTHORITY FOR 2011; NO
DEDUCTION FROM ENTITLEMENT ALLOCATION.
new text end
new text begin
Notwithstanding Minnesota Statutes, section 474A.04, subdivision 1a, bonding
authority that was allocated to an entitlement issuer in 2011 and that was carried forward
under federal tax law, but for which the entitlement issuer did not provide a notice of issue
to the commissioner of management and budget before 4:30 p.m. on the last business
day of December 2012 must not be deducted from the entitlement allocation for that
entitlement issuer in 2013.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
and applies retroactively to rescind any reallocation by the commissioner of management
and budget under Minnesota Statues, section 474A.04, subdivision 1a, of any amounts so
deducted.
new text end
ARTICLE 13
MISCELLANEOUS PROVISIONS
Section 1.
Minnesota Statutes 2012, section 163.051, is amended to read:
163.051 deleted text begin METROPOLITANdeleted text end COUNTY WHEELAGE TAX.
Subdivision 1.
Tax authorized.
(a) Except as provided in paragraph deleted text begin (b)deleted text end new text begin (c)new text end , the
board of commissioners of each deleted text begin metropolitandeleted text end county is authorized to levynew text begin by resolutionnew text end a
wheelage tax deleted text begin of $5 for the year 1972 and each subsequent year thereafter by resolution
deleted text end new text begin at the rate specified in paragraph (b),new text end on each motor vehicle that is kept in such county
when not in operation and that is subject to annual registration and taxation under chapter
168. The board may provide by resolution for collection of the wheelage tax by county
officials or it may request that the tax be collected by the state registrar of motor vehiclesdeleted text begin ,
anddeleted text end new text begin .new text end The state registrar of motor vehicles shall collect such tax on behalf of the county if
requested, as provided in subdivision 2.
(b) new text begin The wheelage tax under this section is at the rate of:
new text end
new text begin
(1) from January 1, 2014, through December 31, 2017, $10 per year for each county
that authorizes the tax; and
new text end
new text begin
(2) on and after January 1, 2018, up to $20 per year, in any increment of a whole
dollar, as specified by each county that authorizes the tax.
new text end
new text begin (c) new text end The following vehicles are exempt from the wheelage tax:
(1) motorcycles, as defined in section 169.011, subdivision 44;
(2) motorized bicycles, as defined in section 169.011, subdivision 45;new text begin and
new text end
deleted text begin
(3) electric-assisted bicycles, as defined in section 169.011, subdivision 27; and
deleted text end
deleted text begin (4)deleted text end new text begin (3)new text end motorized foot scooters, as defined in section 169.011, subdivision 46.
new text begin
(d) For any county that authorized the tax prior to the effective date of this section,
the wheelage tax continues at the rate provided under paragraph (b).
new text end
Subd. 2.
Collection by registrar of motor vehicles.
The wheelage tax levied by
any deleted text begin metropolitandeleted text end county, if made collectible by the state registrar of motor vehicles,
shall be certified by the county auditor to the registrar not later than August 1 in the year
before the calendar year or years for which the tax is levied, and the registrar shall collect
such tax with the motor vehicle taxes on the affected vehicles for such year or years.
Every owner and every operator of such a motor vehicle shall furnish to the registrar all
information requested by the registrar. No state motor vehicle tax on any such motor
vehicle for any such year shall be received or deemed paid unless the applicable wheelage
tax is paid therewith. deleted text begin The proceeds of the wheelage tax levied by any metropolitan county,
less any amount retained by the registrar to pay costs of collection of the wheelage tax,
shall be paid to the commissioner of management and budget and deposited in the state
treasury to the credit of the county wheelage tax fund of each metropolitan county.
deleted text end
Subd. 2a.
Tax proceeds deposited; costs of collection; appropriation.
Notwithstanding the provisions of any other law, the state registrar of motor vehicles shall
deposit the proceeds of the wheelage tax imposed by subdivision 2, to the credit of the
county wheelage tax deleted text begin funddeleted text end new text begin accountnew text end of each deleted text begin metropolitandeleted text end county. The amount necessary to
pay the costs of collection of said tax is appropriated from the county wheelage tax deleted text begin fund
deleted text end new text begin accountnew text end of each deleted text begin metropolitandeleted text end county to the state registrar of motor vehicles.
Subd. 3.
Distribution to deleted text begin metropolitandeleted text end county; appropriation.
deleted text begin On or before
April 1 in 1972 and each subsequent year, the commissioner of management and budget
deleted text end new text begin On a monthly basis, the registrar of motor vehiclesnew text end shall issue a warrant in favor of the
treasurer of each deleted text begin metropolitandeleted text end county for which the registrar has collected a wheelage tax
in the amount of such tax then on hand in the county wheelage tax deleted text begin funddeleted text end new text begin accountnew text end . There
is hereby appropriated from the county wheelage tax deleted text begin funddeleted text end new text begin accountnew text end each year, to each
deleted text begin metropolitandeleted text end county entitled to payments authorized by this section, sufficient moneys
to make such payments.
Subd. 4.
Use of tax.
The treasurer of each deleted text begin metropolitandeleted text end county receiving deleted text begin moneys
deleted text end new text begin paymentsnew text end under subdivision 3 shall deposit such deleted text begin moneysdeleted text end new text begin paymentsnew text end in the county road and
bridge fund. The moneys shall be used for purposes authorized by law which are highway
purposes within the meaning of the Minnesota Constitution, article 14.
deleted text begin Subd. 6. deleted text end
deleted text begin Metropolitan county defined. deleted text end
deleted text begin
"Metropolitan county" means any of the
counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
deleted text end
Subd. 7.
Offenses; penalties; application of other laws.
new text begin (a) new text end Any owner or operator
of a motor vehicle who deleted text begin shalldeleted text end willfully deleted text begin givedeleted text end new text begin givesnew text end any false information relative to the tax
deleted text begin hereindeleted text end authorizednew text begin by this sectionnew text end to the registrar of motor vehicles or any deleted text begin metropolitan
deleted text end county, or who deleted text begin shalldeleted text end willfully deleted text begin fail or refusedeleted text end new text begin fails or refusesnew text end to furnish any such information,
deleted text begin shall bedeleted text end new text begin isnew text end guilty of a misdemeanor.
new text begin (b)new text end Except as otherwise deleted text begin hereindeleted text end providednew text begin in this sectionnew text end , the collection and payment
of a wheelage tax and all matters relating thereto deleted text begin shall bedeleted text end new text begin arenew text end subject to all provisions of
law relating to collection and payment of motor vehicle taxes so far as applicable.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
and applies to a registration period under Minnesota Statutes, chapter 168, starting on
or after January 1, 2014.
new text end
Sec. 2.
Minnesota Statutes 2012, section 237.52, subdivision 3, is amended to read:
Subd. 3.
Collection.
Every provider of services capable of originating a TRS call,
including cellular communications and other nonwire access services, in this state shallnew text begin ,
except as provided in subdivision 3a,new text end collect the charges established by the commission
under subdivision 2 and transfer amounts collected to the commissioner of public
safety in the same manner as provided in section 403.11, subdivision 1, paragraph (d).
The commissioner of public safety must deposit the receipts in the fund established in
subdivision 1.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2014.
new text end
Sec. 3.
Minnesota Statutes 2012, section 237.52, is amended by adding a subdivision
to read:
new text begin Subd. 3a. new text end
new text begin Fee for prepaid wireless telecommunications service. new text end
new text begin
The fee
established in subdivision 2 does not apply to prepaid wireless telecommunications
services as defined in section 403.02, subdivision 17b, which are instead subject to the
prepaid wireless telecommunications access Minnesota fee established in section 403.161,
subdivision 1, paragraph (b). Collection, remittance, and deposit of prepaid wireless
telecommunications access Minnesota fees are governed by sections 403.161 and 403.162.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2014.
new text end
Sec. 4.
Minnesota Statutes 2012, section 270B.01, subdivision 8, is amended to read:
Subd. 8.
Minnesota tax laws.
For purposes of this chapter only, unless expressly
stated otherwise, "Minnesota tax laws" means:
(1) the taxes, refunds, and fees administered by or paid to the commissioner under
chapters 115B, 289A (except taxes imposed under sections 298.01, 298.015, and 298.24),
290, 290A, 291, 295, 297A, 297B, deleted text begin anddeleted text end 297H, new text begin and 403, new text end or any similar Indian tribal tax
administered by the commissioner pursuant to any tax agreement between the state and
the Indian tribal government, and includes any laws for the assessment, collection, and
enforcement of those taxes, refunds, and fees; and
(2) section 273.1315.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2014.
new text end
Sec. 5.
Minnesota Statutes 2012, section 270B.12, subdivision 4, is amended to read:
Subd. 4.
Department of Public Safety.
The commissioner may disclose return
information to the Department of Public Safety for the purpose of and to the extent
necessary to administer deleted text begin sectiondeleted text end new text begin sectionsnew text end 270C.725new text begin and 403.16 to 403.162new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2014.
new text end
Sec. 6.
Minnesota Statutes 2012, section 271.06, is amended by adding a subdivision
to read:
new text begin Subd. 2a. new text end
new text begin Timely mailing treated as timely filing. new text end
new text begin
(a) If, after the period prescribed
by subdivision 2, the original notice of appeal, proof of service upon the commissioner,
and filing fee are delivered by mail in the United States to the Tax Court administrator
or the court administrator of district court acting as court administrator of the Tax Court,
then the date of filing is the date of the United States postmark stamped on the envelope
or other appropriate wrapper in which the notice of appeal, proof of service upon the
commissioner, and filing fee are mailed.
new text end
new text begin
(b) This subdivision applies only if the postmark date falls within the period
prescribed by subdivision 2 and the original notice of appeal, proof of service upon the
commissioner, and filing fee are deposited in the mail in the United States in an envelope
or other appropriate wrapper, postage prepaid, properly addressed to the Tax Court
administrator or the court administrator of district court acting as court administrator of
the Tax Court.
new text end
new text begin
(c) Only the postmark of the United States Postal Service qualifies as proof of
timely mailing under this subdivision. Private postage meters do not qualify as proof of
timely filing under this subdivision. If the original notice of appeal, proof of service
upon the commissioner, and filing fee are sent by United States registered mail, the date
of registration is the postmark date. If the original notice of appeal, proof of service
upon the commissioner, and filing fee are sent by United States certified mail and the
sender's receipt is postmarked by the postal employee to whom the envelope containing
the original notice of appeal, proof of service upon the commissioner, and filing fee is
presented, the date of the United States postmark on the receipt is the postmark date.
new text end
new text begin
(d) A reference in this section to mail in the United States must be treated as
including a reference to any designated delivery service and a reference in this section to
a postmark by the United States Postal Service must be treated as including a reference
to any date recorded or marked by any designated delivery service in accordance with
section 7502(f) of the Internal Revenue Code.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for filings delivered by the United
States Postal Service with a postmark date after August 1, 2013.
new text end
Sec. 7.
Minnesota Statutes 2012, section 297E.021, subdivision 2, is amended to read:
Subd. 2.
Determination of revenue increase.
By March 15 of each fiscal year, the
commissioner of management and budget, in consultation with the commissioner, shall
determine the estimated increase in revenues received from new text begin (1) new text end taxes imposed under new text begin new text end this
chapternew text begin , and (2) the taxes imposed under section 295.61 and the amendments to section
297A.61, subdivision 3, under article 8, section 1, of this act,new text end over new text begin (3) new text end the estimated
revenues under the February 2012 state budget forecast new text begin from the taxes imposed under this
chapter new text end for that fiscal year. For fiscal years after fiscal year 2015, the commissioner of
management and budget shall use the February 2012 state budget forecast for fiscal year
2015new text begin for the amount of taxes collected under this chapternew text end as the baseline. All calculations
under this subdivision must be made net of estimated refunds of the taxes required to be
paid.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 8.
Minnesota Statutes 2012, section 403.02, is amended by adding a subdivision
to read:
new text begin Subd. 17b. new text end
new text begin Prepaid wireless telecommunications service. new text end
new text begin
"Prepaid wireless
telecommunications service" means a wireless telecommunications service that allows the
caller to dial 911 to access the 911 system, which service must be paid for in advance and is:
new text end
new text begin
(1) sold in predetermined units or dollars of which the number declines with use in a
known amount; or
new text end
new text begin
(2) provides unlimited use for a predetermined time period.
new text end
new text begin
The inclusion of nontelecommunications services, including the download of digital
products delivered electronically, content, and ancillary services, with a prepaid wireless
telecommunications service does not preclude that service from being considered a
prepaid wireless telecommunications service under this chapter.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2014.
new text end
Sec. 9.
Minnesota Statutes 2012, section 403.02, is amended by adding a subdivision
to read:
new text begin Subd. 20a. new text end
new text begin Wireless telecommunications service. new text end
new text begin
Wireless telecommunications
service means a commercial mobile radio service, as that term is defined in United
States Code, title 47, section 332, subsection (d), including all broadband personal
communication services, wireless radio telephone services, and geographic area
specialized mobile radio licensees, that offer real-time, two-way voice service
interconnected with the public switched telephone network.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2014.
new text end
Sec. 10.
Minnesota Statutes 2012, section 403.02, subdivision 21, is amended to read:
Subd. 21.
Wireless telecommunications service provider.
"Wireless
telecommunications service provider" means a provider of deleted text begin commercial mobile radio
services, as that term is defined in United States Code, title 47, section 332, subsection
(d), including all broadband personal communications services, wireless radio telephone
services, geographic area specialized and enhanced specialized mobile radio services, and
incumbent wide area specialized mobile radio licensees, that offers real-time, two-way
voice service interconnected with the public switched telephone network and that is doing
business in the state of Minnesotadeleted text end new text begin wireless telecommunications servicenew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2014.
new text end
Sec. 11.
Minnesota Statutes 2012, section 403.06, subdivision 1a, is amended to read:
Subd. 1a.
Biennial budget; annual financial report.
The commissioner shall
prepare a biennial budget for maintaining the 911 system. By December 15 of each year,
the commissioner shall submit a report to the legislature detailing the expenditures for
maintaining the 911 system, the 911 fees collected, the balance of the 911 fund, deleted text begin anddeleted text end the
911-related administrative expenses of the commissionernew text begin , and the most recent forecast of
revenues and expenditures for the 911 emergency telecommunications service account,
including a separate projection of E911 fees from prepaid wireless customers and
projections of year-end fund balancesnew text end . The commissioner is authorized to expend money
that has been appropriated to pay for the maintenance, enhancements, and expansion
of the 911 system.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 12.
Minnesota Statutes 2012, section 403.11, subdivision 1, is amended to read:
Subdivision 1.
Emergency telecommunications service fee; account.
(a) Each
customer of a wireless or wire-line switched or packet-based telecommunications service
provider connected to the public switched telephone network that furnishes service capable
of originating a 911 emergency telephone call is assessed a fee based upon the number
of wired or wireless telephone lines, or their equivalent, to cover the costs of ongoing
maintenance and related improvements for trunking and central office switching equipment
for 911 emergency telecommunications service, to offset administrative and staffing costs
of the commissioner related to managing the 911 emergency telecommunications service
program, to make distributions provided for in section 403.113, and to offset the costs,
including administrative and staffing costs, incurred by the State Patrol Division of the
Department of Public Safety in handling 911 emergency calls made from wireless phones.
(b) Money remaining in the 911 emergency telecommunications service account
after all other obligations are paid must not cancel and is carried forward to subsequent
years and may be appropriated from time to time to the commissioner to provide financial
assistance to counties for the improvement of local emergency telecommunications
services. The improvements may include providing access to 911 service for
telecommunications service subscribers currently without access and upgrading existing
911 service to include automatic number identification, local location identification,
automatic location identification, and other improvements specified in revised county
911 plans approved by the commissioner.
(c) The fee may not be less than eight cents nor more than 65 cents a month until
June 30, 2008, not less than eight cents nor more than 75 cents a month until June 30,
2009, not less than eight cents nor more than 85 cents a month until June 30, 2010, and
not less than eight cents nor more than 95 cents a month on or after July 1, 2010, for
each customer access line or other basic access service, including trunk equivalents as
designated by the Public Utilities Commission for access charge purposes and including
wireless telecommunications services. With the approval of the commissioner of
management and budget, the commissioner of public safety shall establish the amount of
the fee within the limits specified and inform the companies and carriers of the amount to
be collected. When the revenue bonds authorized under section 403.27, subdivision 1,
have been fully paid or defeased, the commissioner shall reduce the fee to reflect that debt
service on the bonds is no longer needed. The commissioner shall provide companies and
carriers a minimum of 45 days' notice of each fee change. The fee must be the same for all
customersnew text begin , except that the fee imposed under this subdivision does not apply to prepaid
wireless telecommunications service, which is instead subject to the fee imposed under
section 403.161, subdivision 1, paragraph (a)new text end .
(d) The fee must be collected by each wireless or wire-line telecommunications
service provider subject to the fee. Fees are payable to and must be submitted to the
commissioner monthly before the 25th of each month following the month of collection,
except that fees may be submitted quarterly if less than $250 a month is due, or annually if
less than $25 a month is due. Receipts must be deposited in the state treasury and credited
to a 911 emergency telecommunications service account in the special revenue fund. The
money in the account may only be used for 911 telecommunications services.
(e) This subdivision does not apply to customers of interexchange carriers.
(f) The installation and recurring charges for integrating wireless 911 calls into
enhanced 911 systems are eligible for payment by the commissioner if the 911 service
provider is included in the statewide design plan and the charges are made pursuant to
contract.
(g) Competitive local exchanges carriers holding certificates of authority from the
Public Utilities Commission are eligible to receive payment for recurring 911 services.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2014.
new text end
Sec. 13.
Minnesota Statutes 2012, section 403.11, is amended by adding a subdivision
to read:
new text begin Subd. 6. new text end
new text begin Report. new text end
new text begin
(a) Beginning September 1, 2013, and continuing semiannually
thereafter, each wireless telecommunications service provider shall report to the
commissioner, based on the mobile telephone number, both the total number of prepaid
wireless telecommunications subscribers sourced to Minnesota and the total number of
wireless telecommunications subscribers sourced to Minnesota. The report must be filed
on the same schedule as Federal Communications Commission Form 477.
new text end
new text begin
(b) The commissioner shall make a standard form available to all wireless
telecommunications service providers for submitting information required to compile
the report required under this subdivision.
new text end
new text begin
(c) The information provided to the commissioner under this subdivision is
considered trade secret information under section 13.37 and may only be used for purposes
of administering this chapter.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2014.
new text end
Sec. 14.
new text begin
[403.16] DEFINITIONS.
new text end
new text begin Subdivision 1. new text end
new text begin Scope. new text end
new text begin
For the purposes of sections 403.16 to 403.164, the terms
defined in this section have the meanings given them.
new text end
new text begin Subd. 2. new text end
new text begin Consumer. new text end
new text begin
"Consumer" means a person who purchases prepaid wireless
telecommunications service in a retail transaction.
new text end
new text begin Subd. 3. new text end
new text begin Department. new text end
new text begin
"Department" means the Department of Revenue.
new text end
new text begin Subd. 4. new text end
new text begin Prepaid wireless E911 fee. new text end
new text begin
"Prepaid wireless E911 fee" means the fee that
is required to be collected by a seller from a consumer as established in section 403.161,
subdivision 1, paragraph (a).
new text end
new text begin Subd. 5. new text end
new text begin Prepaid wireless telecommunications access Minnesota fee. new text end
new text begin
"Prepaid
wireless telecommunications access Minnesota fee" means the fee that is required to be
collected by a seller from a consumer as established in section 403.161, subdivision 1,
paragraph (b).
new text end
new text begin Subd. 6. new text end
new text begin Provider. new text end
new text begin
"Provider" means a person that provides prepaid wireless
telecommunications service under a license issued by the Federal Communications
Commission.
new text end
new text begin Subd. 7. new text end
new text begin Retail transaction. new text end
new text begin
"Retail transaction" means the purchase of prepaid
wireless telecommunications service from a seller for any purpose other than resale.
new text end
new text begin Subd. 8. new text end
new text begin Seller. new text end
new text begin
"Seller" means a person who sells prepaid wireless
telecommunications service to another person.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2014.
new text end
Sec. 15.
new text begin
[403.161] PREPAID WIRELESS FEES IMPOSED; COLLECTION;
REMITTANCE.
new text end
new text begin Subdivision 1. new text end
new text begin Fees imposed. new text end
new text begin
(a) A prepaid wireless E911 fee of 80 cents per retail
transaction is imposed on prepaid wireless telecommunications service until the fee is
adjusted as an amount per retail transaction under subdivision 7.
new text end
new text begin
(b) A prepaid wireless telecommunications access Minnesota fee, in the amount of
the monthly charge provided for in section 237.52, subdivision 2, is imposed on each
retail transaction for prepaid wireless telecommunications service until the fee is adjusted
as an amount per retail transaction under subdivision 7.
new text end
new text begin Subd. 2. new text end
new text begin Exemption. new text end
new text begin
The fees established under subdivision 1 are not imposed on a
minimal amount of prepaid wireless telecommunications service that is sold with a prepaid
wireless device and is charged a single nonitemized price, and a seller may not apply the
fees to such a transaction. For purposes of this subdivision, a minimal amount of service
means an amount of service denominated as either ten minutes or less or $5 or less.
new text end
new text begin Subd. 3. new text end
new text begin Fee collected. new text end
new text begin
The prepaid wireless E911 and telecommunications
access Minnesota fees must be collected by the seller from the consumer for each retail
transaction occurring in this state. The amount of each fee must be combined into one
amount, which must be separately stated on an invoice, receipt, or other similar document
that is provided to the consumer by the seller, or otherwise disclosed to the consumer.
new text end
new text begin Subd. 4. new text end
new text begin Sales and use tax treatment. new text end
new text begin
For purposes of this section, a retail
transaction conducted in person by a consumer at a business location of the seller must
be treated as occurring in this state if that business location is in this state, and any other
retail transaction must be treated as occurring in this state if the retail transaction is treated
as occurring in this state for purposes of the sales and use tax as specified in section
297A.669, subdivision 3, paragraph (c).
new text end
new text begin Subd. 5. new text end
new text begin Remittance. new text end
new text begin
The prepaid wireless E911 and telecommunications access
Minnesota fees are the liability of the consumer and not of the seller or of any provider,
except that the seller is liable to remit all fees that the seller collects from consumers as
provided in section 403.162, including all fees that the seller is deemed to collect in which
the amount of the fee has not been separately stated on an invoice, receipt, or other similar
document provided to the consumer by the seller.
new text end
new text begin Subd. 6. new text end
new text begin Exclusion for calculating other charges. new text end
new text begin
The combined amount of the
prepaid wireless E911 and telecommunications access Minnesota fees collected by a seller
from a consumer must not be included in the base for measuring any tax, fee, surcharge,
or other charge that is imposed by this state, any political subdivision of this state, or
any intergovernmental agency.
new text end
new text begin Subd. 7. new text end
new text begin Fee changes. new text end
new text begin
(a) The prepaid wireless E911 and telecommunications
access Minnesota fee must be proportionately increased or reduced upon any change to
the fee imposed under section 403.11, subdivision 1, paragraph (c), after July 1, 2013, or
the fee imposed under section 237.52, subdivision 2, as applicable.
new text end
new text begin
(b) The department shall post notice of any fee changes on its Web site at least 30
days in advance of the effective date of the fee changes. It is the responsibility of sellers to
monitor the department's Web site for notice of fee changes.
new text end
new text begin
(c) Fee changes are effective 60 days after the first day of the first calendar month
after the commissioner of public safety or the Public Utilities Commission, as applicable,
changes the fee.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2014.
new text end
Sec. 16.
new text begin
[403.162] ADMINISTRATION OF PREPAID WIRELESS E911 FEES.
new text end
new text begin Subdivision 1. new text end
new text begin Remittance. new text end
new text begin
Prepaid wireless E911 and telecommunications access
Minnesota fees collected by sellers must be remitted to the commissioner of revenue
at the times and in the manner provided by chapter 297A with respect to the general
sales and use tax. The commissioner of revenue shall establish registration and payment
procedures that substantially coincide with the registration and payment procedures that
apply in chapter 297A.
new text end
new text begin Subd. 2. new text end
new text begin Seller's fee retention. new text end
new text begin
A seller may deduct and retain three percent of
prepaid wireless E911 and telecommunications access Minnesota fees collected by the
seller from consumers.
new text end
new text begin Subd. 3. new text end
new text begin Department of Revenue provisions. new text end
new text begin
The audit, assessment, appeal,
collection, refund, penalty, interest, enforcement, and administrative provisions of
chapters 270C and 289A that are applicable to the taxes imposed by chapter 297A apply
to any fee imposed under section 403.161.
new text end
new text begin Subd. 4. new text end
new text begin Procedures for resale transactions. new text end
new text begin
The commissioner of revenue shall
establish procedures by which a seller of prepaid wireless telecommunications service
may document that a sale is not a retail transaction. These procedures must substantially
coincide with the procedures for documenting sale for resale transactions as provided in
chapter 297A.
new text end
new text begin Subd. 5. new text end
new text begin Fees deposited. new text end
new text begin
(a) The commissioner of revenue shall, based on
the relative proportion of the prepaid wireless E911 fee and the prepaid wireless
telecommunications access Minnesota fee imposed per retail transaction, divide the fees
collected in corresponding proportions. Within 30 days of receipt of the collected fees,
the commissioner shall:
new text end
new text begin
(1) deposit the proportion of the collected fees attributable to the prepaid wireless
E911 fee in the 911 emergency telecommunications service account in the special revenue
fund; and
new text end
new text begin
(2) deposit the proportion of collected fees attributable to the prepaid wireless
telecommunications access Minnesota fee in the telecommunications access fund
established in section 237.52, subdivision 1.
new text end
new text begin
(b) The department may deduct and retain an amount, not to exceed two percent of
collected fees, to reimburse its direct costs of administering the collection and remittance
of prepaid wireless E911 fees and prepaid wireless telecommunications access Minnesota
fees.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2014.
new text end
Sec. 17.
new text begin
[403.163] LIABILITY PROTECTION FOR SELLERS AND
PROVIDERS.
new text end
new text begin
(a) A provider or seller of prepaid wireless telecommunications service is not liable
for damages to any person resulting from or incurred in connection with providing any
lawful assistance in good faith to any investigative or law enforcement officer of the
United States, this or any other state, or any political subdivision of this or any other state.
new text end
new text begin
(b) In addition to the protection from liability provided by paragraph (a), section
403.08, subdivision 11, applies to sellers and providers.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 18.
new text begin
[403.164] EXCLUSIVITY OF PREPAID WIRELESS E911 FEE.
new text end
new text begin
The prepaid wireless E911 fee imposed by section 403.161 is the only E911 funding
obligation imposed with respect to prepaid wireless telecommunications service in this
state, and no tax, fee, surcharge, or other charge may be imposed by this state, any political
subdivision of this state, or any intergovernmental agency, for E911 funding purposes,
upon any provider, seller, or consumer with respect to the sale, purchase, use, or provision
of prepaid wireless telecommunications service.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2014.
new text end
Sec. 19.
Laws 2010, First Special Session chapter 1, article 13, section 4, subdivision
1, as amended by Laws 2011, First Special Session chapter 7, article 6, section 22, is
amended to read:
Subdivision 1.
Political contribution credit.
Notwithstanding the provisions of
Minnesota Statutes, section 290.06, subdivision 23, or any other law to the contrary, the
political contribution refund does not apply to contributions made after June 30, 2009, and
before July 1, deleted text begin 2013deleted text end new text begin 2017new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 20. new text begin REPORT; RECOMMENDATIONS.
new text end
new text begin
(a) By March 1, 2014, the commissioner of public safety shall submit a report to
the chairs and ranking minority members of the legislative committees with primary
jurisdiction over public safety and telecommunications that assesses the amount of
revenue collected from the fees imposed under Minnesota Statutes, section 403.161,
and recommends any adjustment of those fees that the commissioner of public safety
determines is necessary in order to:
new text end
new text begin
(1) fund legislative appropriations from the 911 emergency telecommunications
service account and to maintain a reasonable fund reserve; and
new text end
new text begin
(2) maintain fairness with respect to the amount of fees paid by customers of
prepaid wireless telecommunications service as compared with customers of other
telecommunications services.
new text end
new text begin
(b) A wireless telecommunications service provider shall provide any information
requested by the commissioner of public safety for the purposes of the report.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2014.
new text end
Sec. 21. new text begin PURPOSE STATEMENTS; TAX EXPENDITURES.
new text end
new text begin Subdivision 1. new text end
new text begin Authority. new text end
new text begin
This section is intended to fulfill the requirement under
Minnesota Statutes, section 3.192, that a bill creating, renewing, or continuing a tax
expenditure provide a purpose for the tax expenditure and a standard or goal against
which its effectiveness may be measured.
new text end
new text begin Subd. 2. new text end
new text begin Federal conformity. new text end
new text begin
The provisions of article 6 conforming Minnesota
individual income tax to changes in federal law are intended to simplify compliance with
and administration of the individual income tax.
new text end
new text begin Subd. 3. new text end
new text begin Employment of qualified veterans tax credit. new text end
new text begin
The provisions of article 6,
section 30, providing a tax credit for the employment of qualified veterans, are intended to
give an incentive to employers to hire unemployed and disabled veterans. The standard
against which the effectiveness of the credit is to be measured is the additional number of
veterans who are hired as a result of the tax credit.
new text end
new text begin Subd. 4. new text end
new text begin Railroad track maintenance subtraction. new text end
new text begin
The provisions of article 6,
sections 10 and 12, allowing an individual income and corporate franchise tax subtraction
for the amount allowed under the federal credit for railroad maintenance expenses, are
intended to increase the combined federal and state tax incentives available to Class II
and Class III railroads for maintaining and upgrading track in Minnesota. The standard
against which effectiveness is to be measured is the additional miles of track maintained
or upgraded following allowance of the state tax subtraction in addition to the existing
federal tax credit.
new text end
new text begin Subd. 5. new text end
new text begin Sales tax exemption of coin-operated amusement devices. new text end
new text begin
The
provisions of article 8, section 2, exempting certain sales of coin-operated entertainment
and amusement devices is intended to reduce tax pyramiding by eliminating the tax on an
input used in providing a taxable service.
new text end
new text begin Subd. 6. new text end
new text begin Motor vehicle rental tax exemption for car sharing. new text end
new text begin
The provisions of
article 8, section 4, exempting nonprofit car sharing companies from the extra tax on short
term car rentals is intended to provide a similar tax treatment between motor vehicle
ownership and motor vehicle sharing.
new text end
new text begin Subd. 7. new text end
new text begin
Expansion of the sales tax exemption on durable medical products and
prosthetics.
new text end
new text begin
The provisions of article 8, section 8, expanding the definition of items
included in repair and replacement parts of durable medical equipment and prosthetics
and exempting Medicare and medicaid purchases is intended to simplify sales tax
administration in this area and provide relief for sellers who cannot collect the tax under
these programs.
new text end
new text begin Subd. 8. new text end
new text begin Exemption for public safety radio communication systems. new text end
new text begin
The
provisions of article 8, section 10, expanding the existing sales tax exemption for certain
types of public safety radio systems in certain counties to all types of systems in all
counties is intended to provide equal tax treatment to all local governments in the state
on these purchases.
new text end
new text begin Subd. 9. new text end
new text begin Sales tax exemption for established religious orders. new text end
new text begin
The provisions of
article 8, section 11, exempting certain sales between a religious order and an affiliated
institute of higher education, is intended to retain an existing sales tax exemption that
exists between St. John's Abbey and St. John's University after a governing restructure
between the two entities.
new text end
new text begin Subd. 10. new text end
new text begin
Sales tax exemption for nursing homes and boarding care homes.
new text end
new text begin
The provisions of article 8, section 12, exempting certain nursing homes and boarding
care homes is intended to clarify that an existing exemption for these facilities is not
affected by a recent property tax case related to defining nonprofit organizations engaged
in charitable activities.
new text end
new text begin Subd. 11. new text end
new text begin Construction sales tax exemptions. new text end
new text begin
The provisions of article 8, sections
13, 14, and 15, exempting from sales tax construction materials for various entities, are
intended to increase jobs and reduce tax pyramiding by reducing the tax on inputs used to
provide taxable goods and services.
new text end
new text begin Subd. 12. new text end
new text begin Sales tax exemption on certain public infrastructure. new text end
new text begin
The provisions
of article 10, section 1, exempting construction materials used in public infrastructure
projects related to the destination medical center plan is intended to reduce city costs
for those projects.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
ARTICLE 14
MARKET VALUE DEFINITIONS
Section 1.
Minnesota Statutes 2012, section 38.18, is amended to read:
38.18 COUNTY FAIRGROUNDS; IMPROVEMENT AIDED.
deleted text begin Anydeleted text end new text begin Eachnew text end town, statutory city, or school district in this state, deleted text begin now or hereafterdeleted text end new text begin at any
timenew text end having deleted text begin adeleted text end new text begin an estimatednew text end market value of all its taxable propertydeleted text begin , exclusive of money and
credits,deleted text end of more than $105,000,000, and having a county fair located within its corporate
limits, deleted text begin is hereby authorized to aid in defrayingdeleted text end new text begin may paynew text end part of the expense of improving
deleted text begin any suchdeleted text end new text begin thenew text end fairgrounddeleted text begin , by appropriating and paying overdeleted text end to the treasurer of the county
owning the fairground deleted text begin such sum of moneydeleted text end , not exceeding $10,000, deleted text begin for each of the political
subdivisions,deleted text end as deleted text begin thedeleted text end new text begin itsnew text end governing body deleted text begin of the town, statutory city, or school district maydeleted text end ,
by resolution, deleted text begin determinedeleted text end new text begin determinesnew text end to be for the best interest of the political subdivisiondeleted text begin ,deleted text end new text begin .
new text end The deleted text begin sums so appropriated todeleted text end new text begin amounts paid to the county mustnew text end be used solely deleted text begin for the purpose
of aiding in the improvement ofdeleted text end new text begin to improvenew text end the fairground in deleted text begin suchdeleted text end new text begin thenew text end manner deleted text begin asdeleted text end the county
board deleted text begin of the county shall determinedeleted text end new text begin determinesnew text end to be for the best interest of the county.
Sec. 2.
Minnesota Statutes 2012, section 40A.15, subdivision 2, is amended to read:
Subd. 2.
Eligible recipients.
All counties within the state, municipalities that prepare
plans and official controls instead of a county, and districts are eligible for assistance
under the program. Counties and districts may apply for assistance on behalf of other
municipalities. In order to be eligible for financial assistance a county or municipality must
agree to levy at least 0.01209 percent of deleted text begin taxabledeleted text end new text begin estimatednew text end market value for agricultural
land preservation and conservation activities or otherwise spend the equivalent amount of
local money on those activities, or spend $15,000 of local money, whichever is less.
Sec. 3.
Minnesota Statutes 2012, section 69.011, subdivision 1, is amended to read:
Subdivision 1.
Definitions.
Unless the language or context clearly indicates that
a different meaning is intended, the following words and terms, for the purposes of this
chapter and chapters 423, 423A, 424 and 424A, have the meanings ascribed to them:
(a) "Commissioner" means the commissioner of revenue.
(b) "Municipality" means:
(1) a home rule charter or statutory city;
(2) an organized town;
(3) a park district subject to chapter 398;
(4) the University of Minnesota;
(5) for purposes of the fire state aid program only, an American Indian tribal
government entity located within a federally recognized American Indian reservation;
(6) for purposes of the police state aid program only, an American Indian tribal
government with a tribal police department which exercises state arrest powers under
section 626.90, 626.91, 626.92, or 626.93;
(7) for purposes of the police state aid program only, the Metropolitan Airports
Commission; and
(8) for purposes of the police state aid program only, the Department of Natural
Resources and the Department of Public Safety with respect to peace officers covered
under chapter 352B.
(c) "Minnesota Firetown Premium Report" means a form prescribed by the
commissioner containing space for reporting by insurers of fire, lightning, sprinkler
leakage and extended coverage premiums received upon risks located or to be performed
in this state less return premiums and dividends.
(d) "Firetown" means the area serviced by any municipality having a qualified fire
department or a qualified incorporated fire department having a subsidiary volunteer
firefighters' relief association.
(e) "new text begin Estimated new text end market value" means latest available new text begin estimated new text end market value of all
property in a taxing jurisdiction, whether the property is subject to taxation, or exempt
from ad valorem taxation obtained from information which appears on abstracts filed with
the commissioner of revenue or equalized by the State Board of Equalization.
(f) "Minnesota Aid to Police Premium Report" means a form prescribed by the
commissioner for reporting by each fire and casualty insurer of all premiums received
upon direct business received by it in this state, or by its agents for it, in cash or otherwise,
during the preceding calendar year, with reference to insurance written for insuring against
the perils contained in auto insurance coverages as reported in the Minnesota business
schedule of the annual financial statement which each insurer is required to file with
the commissioner in accordance with the governing laws or rules less return premiums
and dividends.
(g) "Peace officer" means any person:
(1) whose primary source of income derived from wages is from direct employment
by a municipality or county as a law enforcement officer on a full-time basis of not less
than 30 hours per week;
(2) who has been employed for a minimum of six months prior to December 31
preceding the date of the current year's certification under subdivision 2, clause (b);
(3) who is sworn to enforce the general criminal laws of the state and local ordinances;
(4) who is licensed by the Peace Officers Standards and Training Board and is
authorized to arrest with a warrant; and
(5) who is a member of the State Patrol retirement plan or the public employees
police and fire fund.
(h) "Full-time equivalent number of peace officers providing contract service" means
the integral or fractional number of peace officers which would be necessary to provide
the contract service if all peace officers providing service were employed on a full-time
basis as defined by the employing unit and the municipality receiving the contract service.
(i) "Retirement benefits other than a service pension" means any disbursement
authorized under section 424A.05, subdivision 3, clauses (3) and (4).
(j) "Municipal clerk, municipal clerk-treasurer, or county auditor" means:
(1) for the police state aid program and police relief association financial reports:
(i) the person who was elected or appointed to the specified position or, in the
absence of the person, another person who is designated by the applicable governing body;
(ii) in a park district, the secretary of the board of park district commissioners;
(iii) in the case of the University of Minnesota, the official designated by the Board
of Regents;
(iv) for the Metropolitan Airports Commission, the person designated by the
commission;
(v) for the Department of Natural Resources or the Department of Public Safety, the
respective commissioner;
(vi) for a tribal police department which exercises state arrest powers under section
626.90, 626.91, 626.92, or 626.93, the person designated by the applicable American
Indian tribal government; and
(2) for the fire state aid program and fire relief association financial reports, the
person who was elected or appointed to the specified position, or, for governmental
entities other than counties, if the governing body of the governmental entity designates
the position to perform the function, the chief financial official of the governmental entity
or the chief administrative official of the governmental entity.
(k) "Voluntary statewide lump-sum volunteer firefighter retirement plan" means the
retirement plan established by chapter 353G.
Sec. 4.
Minnesota Statutes 2012, section 69.021, subdivision 7, is amended to read:
Subd. 7.
Apportionment of fire state aid to municipalities and relief associations.
(a) The commissioner shall apportion the fire state aid relative to the premiums reported
on the Minnesota Firetown Premium Reports filed under this chapter to each municipality
and/or firefighters relief association.
(b) The commissioner shall calculate an initial fire state aid allocation amount for
each municipality or fire department under paragraph (c) and a minimum fire state aid
allocation amount for each municipality or fire department under paragraph (d). The
municipality or fire department must receive the larger fire state aid amount.
(c) The initial fire state aid allocation amount is the amount available for
apportionment as fire state aid under subdivision 5, without inclusion of any additional
funding amount to support a minimum fire state aid amount under section 423A.02,
subdivision 3, allocated one-half in proportion to the population as shown in the last official
statewide federal census for each fire town and one-half in proportion to the new text begin estimated
new text end market value of each fire town, including (1) the new text begin estimated new text end market value of tax-exempt
property and (2) the new text begin estimated new text end market value of natural resources lands receiving in lieu
payments under sections 477A.11 to 477A.14, but excluding the new text begin estimated new text end market value
of minerals. In the case of incorporated or municipal fire departments furnishing fire
protection to other cities, towns, or townships as evidenced by valid fire service contracts
filed with the commissioner, the distribution must be adjusted proportionately to take
into consideration the crossover fire protection service. Necessary adjustments must be
made to subsequent apportionments. In the case of municipalities or independent fire
departments qualifying for the aid, the commissioner shall calculate the state aid for the
municipality or relief association on the basis of the population and the new text begin estimated new text end market
value of the area furnished fire protection service by the fire department as evidenced by
duly executed and valid fire service agreements filed with the commissioner. If one or
more fire departments are furnishing contracted fire service to a city, town, or township,
only the population and new text begin estimated new text end market value of the area served by each fire department
may be considered in calculating the state aid and the fire departments furnishing service
shall enter into an agreement apportioning among themselves the percent of the population
and the new text begin estimated new text end market value of each service area. The agreement must be in writing
and must be filed with the commissioner.
(d) The minimum fire state aid allocation amount is the amount in addition to the
initial fire state allocation amount that is derived from any additional funding amount
to support a minimum fire state aid amount under section 423A.02, subdivision 3, and
allocated to municipalities with volunteer firefighters relief associations or covered by the
voluntary statewide lump-sum volunteer firefighter retirement plan based on the number
of active volunteer firefighters who are members of the relief association as reported
in the annual financial reporting for the calendar year 1993 to the Office of the State
Auditor, but not to exceed 30 active volunteer firefighters, so that all municipalities or
fire departments with volunteer firefighters relief associations receive in total at least a
minimum fire state aid amount per 1993 active volunteer firefighter to a maximum of
30 firefighters. If a relief association is established after calendar year 1993 and before
calendar year 2000, the number of active volunteer firefighters who are members of the
relief association as reported in the annual financial reporting for calendar year 1998
to the Office of the State Auditor, but not to exceed 30 active volunteer firefighters,
shall be used in this determination. If a relief association is established after calendar
year 1999, the number of active volunteer firefighters who are members of the relief
association as reported in the first annual financial reporting submitted to the Office of
the State Auditor, but not to exceed 20 active volunteer firefighters, must be used in this
determination. If a relief association is terminated as a result of providing retirement
coverage for volunteer firefighters by the voluntary statewide lump-sum volunteer
firefighter retirement plan under chapter 353G, the number of active volunteer firefighters
of the municipality covered by the statewide plan as certified by the executive director of
the Public Employees Retirement Association to the commissioner and the state auditor,
but not to exceed 30 active firefighters, must be used in this determination.
(e) Unless the firefighters of the applicable fire department are members of the
voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid must
be paid to the treasurer of the municipality where the fire department is located and the
treasurer of the municipality shall, within 30 days of receipt of the fire state aid, transmit
the aid to the relief association if the relief association has filed a financial report with the
treasurer of the municipality and has met all other statutory provisions pertaining to the
aid apportionment. If the firefighters of the applicable fire department are members of
the voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid
must be paid to the executive director of the Public Employees Retirement Association
and deposited in the voluntary statewide lump-sum volunteer firefighter retirement fund.
(f) The commissioner may make rules to permit the administration of the provisions
of this section.
(g) Any adjustments needed to correct prior misallocations must be made to
subsequent apportionments.
Sec. 5.
Minnesota Statutes 2012, section 69.021, subdivision 8, is amended to read:
Subd. 8.
Population and new text begin estimated new text end market value.
(a) In computations relating to
fire state aid requiring the use of population figures, only official statewide federal census
figures are to be used. Increases or decreases in population disclosed by reason of any
special census must not be taken into consideration.
(b) In calculations relating to fire state aid requiring the use of new text begin estimated new text end market
value property figures, only the latest available new text begin estimated new text end market value property figures
may be used.
Sec. 6.
Minnesota Statutes 2012, section 88.51, subdivision 3, is amended to read:
Subd. 3.
Determination ofnew text begin estimatednew text end market value.
In determining the net tax
capacity of property within any taxing district the value of the surface of lands within any
auxiliary forest therein, as determined by the county board under the provisions of section
88.48, subdivision 3, shall, for all purposes except the levying of taxes on lands within any
such forest, be deemed the new text begin estimated new text end market value thereof.
Sec. 7.
Minnesota Statutes 2012, section 103B.245, subdivision 3, is amended to read:
Subd. 3.
Tax.
After adoption of the ordinance under subdivision 2, a local
government unit may annually levy a tax on all taxable property in the district for the
purposes for which the tax district is established. The tax may not exceed 0.02418 percent
of new text begin estimated new text end market value on taxable property located in rural towns other than urban
towns, unless allowed by resolution of the town electors. The proceeds of the tax shall
be paid into a fund reserved for these purposes. Any proceeds remaining in the reserve
fund at the time the tax is terminated or the district is dissolved shall be transferred and
irrevocably pledged to the debt service fund of the local unit to be used solely to reduce
tax levies for bonded indebtedness of taxable property in the district.
Sec. 8.
Minnesota Statutes 2012, section 103B.251, subdivision 8, is amended to read:
Subd. 8.
Tax.
(a) For the payment of principal and interest on the bonds issued
under subdivision 7 and the payment required under subdivision 6, the county shall
irrevocably pledge and appropriate the proceeds of a tax levied on all taxable property
located within the territory of the watershed management organization or subwatershed
unit for which the bonds are issued. Each year until the reserve for payment of the bonds
is sufficient to retire the bonds, the county shall levy on all taxable property in the territory
of the organization or unit, without respect to any statutory or other limitation on taxes, an
amount of taxes sufficient to pay principal and interest on the bonds and to restore any
deficiencies in reserves required to be maintained for payment of the bonds.
(b) The tax levied on rural towns other than urban towns may not exceed 0.02418
percent of deleted text begin taxabledeleted text end new text begin estimated new text end market value, unless approved by resolution of the town
electors.
(c) If at any time the amounts available from the levy on property in the territory of
the organization are insufficient to pay principal and interest on the bonds when due, the
county shall make payment from any available funds in the county treasury.
(d) The amount of any taxes which are required to be levied outside of the territory
of the watershed management organization or unit or taken from the general funds of the
county to pay principal or interest on the bonds shall be reimbursed to the county from
taxes levied within the territory of the watershed management organization or unit.
Sec. 9.
Minnesota Statutes 2012, section 103B.635, subdivision 2, is amended to read:
Subd. 2.
Municipal funding of district.
(a) The governing body or board of
supervisors of each municipality in the district must provide the funds necessary to meet
its proportion of the total cost determined by the board, provided the total funding from
all municipalities in the district for the costs shall not exceed an amount equal to .00242
percent of the total deleted text begin taxabledeleted text end new text begin estimatednew text end market value within the district, unless three-fourths
of the municipalities in the district pass a resolution concurring to the additional costs.
(b) The funds must be deposited in the treasury of the district in amounts and at
times as the treasurer of the district requires.
Sec. 10.
Minnesota Statutes 2012, section 103B.691, subdivision 2, is amended to read:
Subd. 2.
Municipal funding of district.
(a) The governing body or board of
supervisors of each municipality in the district shall provide the funds necessary to meet its
proportion of the total cost to be borne by the municipalities as finally certified by the board.
(b) The municipality's funds may be raised by any means within the authority of
the municipality. The municipalities may each levy a tax not to exceed .02418 percent of
deleted text begin taxabledeleted text end new text begin estimatednew text end market value on the taxable property located in the district to provide
the funds. The levy shall be within all other limitations provided by law.
(c) The funds must be deposited into the treasury of the district in amounts and at
times as the treasurer of the district requires.
Sec. 11.
Minnesota Statutes 2012, section 103D.905, subdivision 2, is amended to read:
Subd. 2.
Organizational expense fund.
(a) An organizational expense fund,
consisting of an ad valorem tax levy, shall not exceed 0.01596 percent of deleted text begin taxabledeleted text end new text begin estimated
new text end market value, or $60,000, whichever is less. The money in the fund shall be used for
organizational expenses and preparation of the watershed management plan for projects.
(b) The managers may borrow from the affected counties up to 75 percent of the
anticipated funds to be collected from the organizational expense fund levy and the
counties affected may make the advancements.
(c) The advancement of anticipated funds shall be apportioned among affected
counties in the same ratio as the net tax capacity of the area of the counties within
the watershed district bears to the net tax capacity of the entire watershed district. If a
watershed district is enlarged, an organizational expense fund may be levied against the
area added to the watershed district in the same manner as provided in this subdivision.
(d) Unexpended funds collected for the organizational expense may be transferred to
the administrative fund and used for the purposes of the administrative fund.
Sec. 12.
Minnesota Statutes 2012, section 103D.905, subdivision 3, is amended to read:
Subd. 3.
General fund.
A general fund, consisting of an ad valorem tax levy, may
not exceed 0.048 percent of deleted text begin taxabledeleted text end new text begin estimatednew text end market value, or $250,000, whichever is
less. The money in the fund shall be used for general administrative expenses and for
the construction or implementation and maintenance of projects of common benefit to
the watershed district. The managers may make an annual levy for the general fund as
provided in section 103D.911. In addition to the annual general levy, the managers may
annually levy a tax not to exceed 0.00798 percent of deleted text begin taxabledeleted text end new text begin estimatednew text end market value
for a period not to exceed 15 consecutive years to pay the cost attributable to the basic
water management features of projects initiated by petition of a political subdivision
within the watershed district or by petition of at least 50 resident owners whose property
is within the watershed district.
Sec. 13.
Minnesota Statutes 2012, section 103D.905, subdivision 8, is amended to read:
Subd. 8.
Survey and data acquisition fund.
(a) A survey and data acquisition fund
is established and used only if other funds are not available to the watershed district to pay
for making necessary surveys and acquiring data.
(b) The survey and data acquisition fund consists of the proceeds of a property tax
that can be levied only once every five years. The levy may not exceed 0.02418 percent of
deleted text begin taxabledeleted text end new text begin estimatednew text end market value.
(c) The balance of the survey and data acquisition fund may not exceed $50,000.
(d) In a subsequent proceeding for a project where a survey has been made, the
attributable cost of the survey as determined by the managers shall be included as a part of
the cost of the work and the sum shall be repaid to the survey and data acquisition fund.
Sec. 14.
Minnesota Statutes 2012, section 117.025, subdivision 7, is amended to read:
Subd. 7.
Structurally substandard.
"Structurally substandard" means a building:
(1) that was inspected by the appropriate local government and cited for one or more
enforceable housing, maintenance, or building code violations;
(2) in which the cited building code violations involve one or more of the following:
(i) a roof and roof framing element;
(ii) support walls, beams, and headers;
(iii) foundation, footings, and subgrade conditions;
(iv) light and ventilation;
(v) fire protection, including egress;
(vi) internal utilities, including electricity, gas, and water;
(vii) flooring and flooring elements; or
(viii) walls, insulation, and exterior envelope;
(3) in which the cited housing, maintenance, or building code violations have not
been remedied after two notices to cure the noncompliance; and
(4) has uncured housing, maintenance, and building code violations, satisfaction of
which would cost more than 50 percent of the deleted text begin assessor's taxabledeleted text end new text begin estimatednew text end market value
for the building, excluding land value, as determined under section 273.11 for property
taxes payable in the year in which the condemnation is commenced.
A local government is authorized to seek from a judge or magistrate an administrative
warrant to gain access to inspect a specific building in a proposed development or
redevelopment area upon showing of probable cause that a specific code violation has
occurred and that the violation has not been cured, and that the owner has denied the local
government access to the property. Items of evidence that may support a conclusion of
probable cause may include recent fire or police inspections, housing inspection, exterior
evidence of deterioration, or other similar reliable evidence of deterioration in the specific
building.
Sec. 15.
Minnesota Statutes 2012, section 127A.48, subdivision 1, is amended to read:
Subdivision 1.
Computation.
The Department of Revenue must annually conduct
an assessment/sales ratio study of the taxable property in each new text begin county, city, town, and
new text end school district in accordance with the procedures in subdivisions 2 and 3. Based upon the
results of this assessment/sales ratio study, the Department of Revenue must determine an
deleted text begin aggregatedeleted text end equalized net tax capacity for the various classes of taxable property in each
new text begin taxing new text end district, new text begin the aggregate of new text end which deleted text begin tax capacity shall bedeleted text end new text begin isnew text end designated as the adjusted net
tax capacity. new text begin The adjusted net tax capacity must be reduced by the captured tax capacity of
tax increment districts under section 469.177, subdivision 2, fiscal disparities contribution
tax capacities under sections 276A.06 and 473F.08, and the tax capacity of transmission
lines required to be subtracted from the local tax base under section 273.425; and increased
by fiscal disparities distribution tax capacities under sections 276A.06 and 473F.08. new text end The
adjusted net tax capacities shall be determined using the net tax capacity percentages in
effect for the assessment year following the assessment year of the study. The Department
of Revenue must make whatever estimates are necessary to account for changes in the
classification system. The Department of Revenue may incur the expense necessary to
make the determinations. The commissioner of revenue may reimburse any county or
governmental official for requested services performed in ascertaining the adjusted net tax
capacity. On or before March 15 annually, the Department of Revenue shall file with the
chair of the Tax Committee of the house of representatives and the chair of the Committee
on Taxes and Tax laws of the senate a report of adjusted net tax capacitiesnew text begin for school
districtsnew text end . On or before June 15 annually, the Department of Revenue shall file its final report
on the adjusted net tax capacitiesnew text begin for school districtsnew text end established by the previous year's
assessments and the current year's net tax capacity percentages with the commissioner of
education and each county auditor for thosenew text begin schoolnew text end districts for which the auditor has the
responsibility for determination of local tax rates. A copy of the report so filed shall be
mailed to the clerk of eachnew text begin schoolnew text end district involved and to the county assessor or supervisor
of assessments of the county or counties in which eachnew text begin schoolnew text end district is located.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 16.
Minnesota Statutes 2012, section 138.053, is amended to read:
138.053 COUNTY HISTORICAL SOCIETY; TAX LEVY; CITIES OR
TOWNS.
The governing body of any home rule charter or statutory city or town may annually
appropriate from its general fund an amount not to exceed 0.02418 percent of deleted text begin taxable
deleted text end new text begin estimatednew text end market value, derived from ad valorem taxes on property or other revenues, to
be paid to the historical society of its respective county to be used for the promotion of
historical work and to aid in defraying the expenses of carrying on the historical work in the
county. No city or town may appropriate any funds for the benefit of any historical society
unless the society is affiliated with and approved by the Minnesota Historical Society.
Sec. 17.
Minnesota Statutes 2012, section 144F.01, subdivision 4, is amended to read:
Subd. 4.
Property tax levy authority.
The district's board may levy a tax on the
taxable real and personal property in the district. The ad valorem tax levy may not exceed
0.048 percent of the deleted text begin taxabledeleted text end new text begin estimatednew text end market value of the district or $400,000, whichever
is less. The proceeds of the levy must be used as provided in subdivision 5. The board shall
certify the levy at the times as provided under section 275.07. The board shall provide the
county with whatever information is necessary to identify the property that is located within
the district. If the boundaries include a part of a parcel, the entire parcel shall be included
in the district. The county auditors must spread, collect, and distribute the proceeds of the
tax at the same time and in the same manner as provided by law for all other property taxes.
Sec. 18.
Minnesota Statutes 2012, section 162.07, subdivision 3, is amended to read:
Subd. 3.
Computation for rural counties.
An amount equal to a levy of 0.01596
percent on each rural county's total deleted text begin taxabledeleted text end new text begin estimatednew text end market value for the last preceding
calendar year shall be computed and shall be subtracted from the county's total estimated
construction costs. The result thereof shall be the money needs of the county. For the
purpose of this section, "rural counties" means all counties having a population of less
than 175,000.
Sec. 19.
Minnesota Statutes 2012, section 162.07, subdivision 4, is amended to read:
Subd. 4.
Computation for urban counties.
An amount equal to a levy of 0.00967
percent on each urban county's total deleted text begin taxabledeleted text end new text begin estimatednew text end market value for the last preceding
calendar year shall be computed and shall be subtracted from the county's total estimated
construction costs. The result thereof shall be the money needs of the county. For
the purpose of this section, "urban counties" means all counties having a population
of 175,000 or more.
Sec. 20.
Minnesota Statutes 2012, section 163.04, subdivision 3, is amended to read:
Subd. 3.
Bridges within certain cities.
When the council of any statutory city or
city of the third or fourth class may determine that it is necessary to build or improve any
bridge or bridges, including approaches thereto, and any dam or retaining works connected
therewith, upon or forming a part of streets or highways either wholly or partly within
its limits, the county board shall appropriate one-half of the money as may be necessary
therefor from the county road and bridge fund, not exceeding during any year one-half
the amount of taxes paid into the county road and bridge fund during the preceding year,
on property within the corporate limits of the city. The appropriation shall be made upon
the petition of the council, which petition shall be filed by the council with the county
board prior to the fixing by the board of the annual county tax levy. The county board
shall determine the plans and specifications, shall let all necessary contracts, shall have
charge of construction, and upon its request, warrants in payment thereof shall be issued
by the county auditor, from time to time, as the construction work proceeds. Any unpaid
balance may be paid or advanced by the city. On petition of the council, the appropriations
of the county board, during not to exceed three successive years, may be made to apply
on the construction of the same items and to repay any money advanced by the city in
the construction thereof. None of the provisions of this section shall be construed to
be mandatory as applied to any city whose new text begin estimated new text end market value exceeds $2,100 per
capita of its population.
Sec. 21.
Minnesota Statutes 2012, section 163.06, subdivision 6, is amended to read:
Subd. 6.
Expenditure in certain counties.
In any county having not less than 95
nor more than 105 full and fractional townships, and having deleted text begin adeleted text end new text begin an estimatednew text end market value
of not less than $12,000,000 nor more than $21,000,000, deleted text begin exclusive of money and credits,
deleted text end the county board, by resolution, may expend the funds provided in subdivision 4 in any
organized deleted text begin or unorganized townshipdeleted text end new text begin town or unorganized territorynew text end or portion thereof in
such county.
Sec. 22.
Minnesota Statutes 2012, section 165.10, subdivision 1, is amended to read:
Subdivision 1.
Certain counties may issue and sell.
The county board of any
county having no outstanding road and bridge bonds may issue and sell county road bonds
in an amount not exceeding 0.12089 percent of the new text begin estimated new text end market value of the taxable
property within the county deleted text begin exclusive of money and creditsdeleted text end , for the purpose of constructing,
reconstructing, improving, or maintaining any bridge or bridges on any highway under its
jurisdiction, without submitting the matter to a vote of the electors of the county.
Sec. 23.
Minnesota Statutes 2012, section 272.03, is amended by adding a subdivision
to read:
new text begin Subd. 14. new text end
new text begin Estimated market value. new text end
new text begin
"Estimated market value" means the assessor's
determination of market value, including the effects of any orders made under section
270.12 or chapter 274, for the parcel. The provisions of section 273.032 apply for certain
uses in determining the total estimated market value for the taxing jurisdiction.
new text end
Sec. 24.
Minnesota Statutes 2012, section 272.03, is amended by adding a subdivision
to read:
new text begin Subd. 15. new text end
new text begin Taxable market value. new text end
new text begin
"Taxable market value" means estimated market
value for the parcel as reduced by market value exclusions, deferments of value, or other
adjustments required by law, that reduce market value before the application of class rates.
new text end
Sec. 25.
Minnesota Statutes 2012, section 273.032, is amended to read:
273.032 MARKET VALUE DEFINITION.
new text begin (a) Unless otherwise provided, new text end for the purpose of determining any property tax
levy limitation based on market valuenew text begin or any limit on net debt, the issuance of bonds,
certificates of indebtedness, or capital notes based on market valuenew text end , any qualification to
receive state aid based on market value, or any state aid amount based on market value, the
terms "market value," "deleted text begin taxabledeleted text end new text begin estimatednew text end market value," and "market valuation," whether
equalized or unequalized, mean the deleted text begin total taxabledeleted text end new text begin estimatednew text end market value of new text begin taxable new text end property
within the local unit of government before any new text begin of the following or similar new text end adjustments fornew text begin :
new text end
new text begin
(1) the market value exclusions under:
new text end
new text begin
(i) section 273.11, subdivisions 14a and 14c (vacant platted land);
new text end
new text begin
(ii) section 273.11, subdivision 16 (certain improvements to homestead property);
new text end
new text begin
(iii) section 273.11, subdivisions 19 and 20 (certain improvements to business
properties);
new text end
new text begin
(iv) section 273.11, subdivision 21 (homestead property damaged by mold);
new text end
new text begin
(v) section 273.11, subdivision 22 (qualifying lead hazardous reduction projects);
new text end
new text begin
(vi) section 273.13, subdivision 34 (homestead of a disabled veteran or family
caregiver);
new text end
new text begin
(vii) section 273.13, subdivision 35 (homestead market value exclusion); or
new text end
new text begin
(2) the deferment of value under:
new text end
new text begin
(i) the Minnesota Agricultural Property Tax Law, section 273.111;
new text end
new text begin
(ii) the Aggregate Resource Preservation Law, section 273.1115;
new text end
new text begin
(iii) the Minnesota Open Space Property Tax Law, section 273.112;
new text end
new text begin
(iv) the rural preserves property tax program, section 273.114; or
new text end
new text begin
(v) the Metropolitan Agricultural Preserves Act, section 473H.10; or
new text end
new text begin
(3) the adjustments to tax capacity for:
new text end
new text begin (i)new text end tax incrementdeleted text begin ,deleted text end new text begin financing under sections 469.174 to 469.1794;
new text end
new text begin (ii)new text end fiscal deleted text begin disparity,deleted text end new text begin disparities under chapter 276A or 473F; or
new text end
new text begin (iii) new text end powerline creditdeleted text begin , or wind energy values, but after the limited market adjustments
under section 273.11, subdivision 1a, and after the market value exclusions of certain
improvements to homestead property under section 273.11, subdivision 16deleted text end new text begin under section
273.425new text end .
new text begin
(b) Estimated market value under paragraph (a) also includes the market value
of tax-exempt property if the applicable law specifically provides that the limitation,
qualification, or aid calculation includes tax-exempt property.
new text end
new text begin (c)new text end Unless otherwise provided, "market value," "deleted text begin taxabledeleted text end new text begin estimatednew text end market value,"
and "market valuation" for purposes of deleted text begin this paragraphdeleted text end new text begin property tax levy limitations and
calculation of state aidnew text end , refer to the deleted text begin taxabledeleted text end new text begin estimatednew text end market value for the previous
assessment yearnew text begin and for purposes of limits on net debt, the issuance of bonds, certificates of
indebtedness, or capital notes refer to the estimated market value as last finally equalizednew text end .
deleted text begin
For the purpose of determining any net debt limit based on market value, or any limit
on the issuance of bonds, certificates of indebtedness, or capital notes based on market
value, the terms "market value," "taxable market value," and "market valuation," whether
equalized or unequalized, mean the total taxable market value of property within the local
unit of government before any adjustments for tax increment, fiscal disparity, powerline
credit, or wind energy values, but after the limited market value adjustments under section
273.11, subdivision 1a, and after the market value exclusions of certain improvements to
homestead property under section 273.11, subdivision 16. Unless otherwise provided,
"market value," "taxable market value," and "market valuation" for purposes of this
paragraph, mean the taxable market value as last finally equalized.
deleted text end
new text begin
(d) For purposes of a provision of a home rule charter or of any special law that is not
codified in the statutes and that imposes a levy limitation based on market value or any limit
on debt, the issuance of bonds, certificates of indebtedness, or capital notes based on market
value, the terms "market value," "taxable market value," and "market valuation," whether
equalized or unequalized, mean "estimated market value" as defined in paragraph (a).
new text end
Sec. 26.
Minnesota Statutes 2012, section 273.11, subdivision 1, is amended to read:
Subdivision 1.
Generally.
Except as provided in this section or section 273.17,
subdivision 1, all property shall be valued at its market value. The market value as
determined pursuant to this section shall be stated such that any amount under $100 is
rounded up to $100 and any amount exceeding $100 shall be rounded to the nearest $100.
In estimating and determining such value, the assessor shall not adopt a lower or different
standard of value because the same is to serve as a basis of taxation, nor shall the assessor
adopt as a criterion of value the price for which such property would sell at a forced sale,
or in the aggregate with all the property in the town or district; but the assessor shall value
each article or description of property by itself, and at such sum or price as the assessor
believes the same to be fairly worth in money. The assessor shall take into account the
effect on the market value of property of environmental factors in the vicinity of the
property. In assessing any tract or lot of real property, the value of the land, exclusive of
structures and improvements, shall be determined, and also the value of all structures and
improvements thereon, and the aggregate value of the property, including all structures
and improvements, excluding the value of crops growing upon cultivated land. In valuing
real property upon which there is a mine or quarry, it shall be valued at such price as such
property, including the mine or quarry, would sell for at a fair, voluntary sale, for cash,
if the material being mined or quarried is not subject to taxation under section 298.015
and the mine or quarry is not exempt from the general property tax under section 298.25.
In valuing real property which is vacant, platted property shall be assessed as provided
in deleted text begin subdivision 14deleted text end new text begin subdivisions 14a and 14cnew text end . All property, or the use thereof, which is
taxable under section 272.01, subdivision 2, or 273.19, shall be valued at the market
value of such property and not at the value of a leasehold estate in such property, or at
some lesser value than its market value.
Sec. 27.
Minnesota Statutes 2012, section 273.124, subdivision 3a, is amended to read:
Subd. 3a.
Manufactured home park cooperative.
(a) When a manufactured home
park is owned by a corporation or association organized under chapter 308A or 308B,
and each person who owns a share or shares in the corporation or association is entitled
to occupy a lot within the park, the corporation or association may claim homestead
treatment for the park. Each lot must be designated by legal description or number, and
each lot is limited to not more than one-half acre of land.
(b) The manufactured home park shall be entitled to homestead treatment if all
of the following criteria are met:
(1) the occupant or the cooperative corporation or association is paying the ad
valorem property taxes and any special assessments levied against the land and structure
either directly, or indirectly through dues to the corporation or association; and
(2) the corporation or association organized under chapter 308A or 308B is wholly
owned by persons having a right to occupy a lot owned by the corporation or association.
(c) A charitable corporation, organized under the laws of Minnesota with no
outstanding stock, and granted a ruling by the Internal Revenue Service for 501(c)(3)
tax-exempt status, qualifies for homestead treatment with respect to a manufactured home
park if its members hold residential participation warrants entitling them to occupy a lot
in the manufactured home park.
(d) "Homestead treatment" under this subdivision means the class rate provided for
class 4c property classified under section 273.13, subdivision 25, paragraph (d), clause (5),
item (ii). The homestead market value deleted text begin creditdeleted text end new text begin exclusionnew text end under section deleted text begin 273.1384deleted text end new text begin 273.13,
subdivision 35,new text end does not apply and the property taxes assessed against the park shall not
be included in the determination of taxes payable for rent paid under section 290A.03.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxes payable in 2013 and
thereafter.
new text end
Sec. 28.
Minnesota Statutes 2012, section 273.124, subdivision 13, is amended to read:
Subd. 13.
Homestead application.
(a) A person who meets the homestead
requirements under subdivision 1 must file a homestead application with the county
assessor to initially obtain homestead classification.
(b) The format and contents of a uniform homestead application shall be prescribed
by the commissioner of revenue. The application must clearly inform the taxpayer that
this application must be signed by all owners who occupy the property or by the qualifying
relative and returned to the county assessor in order for the property to receive homestead
treatment.
(c) Every property owner applying for homestead classification must furnish to the
county assessor the Social Security number of each occupant who is listed as an owner
of the property on the deed of record, the name and address of each owner who does not
occupy the property, and the name and Social Security number of each owner's spouse who
occupies the property. The application must be signed by each owner who occupies the
property and by each owner's spouse who occupies the property, or, in the case of property
that qualifies as a homestead under subdivision 1, paragraph (c), by the qualifying relative.
If a property owner occupies a homestead, the property owner's spouse may not
claim another property as a homestead unless the property owner and the property owner's
spouse file with the assessor an affidavit or other proof required by the assessor stating that
the property qualifies as a homestead under subdivision 1, paragraph (e).
Owners or spouses occupying residences owned by their spouses and previously
occupied with the other spouse, either of whom fail to include the other spouse's name
and Social Security number on the homestead application or provide the affidavits or
other proof requested, will be deemed to have elected to receive only partial homestead
treatment of their residence. The remainder of the residence will be classified as
nonhomestead residential. When an owner or spouse's name and Social Security number
appear on homestead applications for two separate residences and only one application is
signed, the owner or spouse will be deemed to have elected to homestead the residence for
which the application was signed.
The Social Security numbers, state or federal tax returns or tax return information,
including the federal income tax schedule F required by this section, or affidavits or other
proofs of the property owners and spouses submitted under this or another section to
support a claim for a property tax homestead classification are private data on individuals as
defined by section 13.02, subdivision 12, but, notwithstanding that section, the private data
may be disclosed to the commissioner of revenue, or, for purposes of proceeding under the
Revenue Recapture Act to recover personal property taxes owing, to the county treasurer.
(d) If residential real estate is occupied and used for purposes of a homestead by a
relative of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in
order for the property to receive homestead status, a homestead application must be filed
with the assessor. The Social Security number of each relative and spouse of a relative
occupying the property shall be required on the homestead application filed under this
subdivision. If a different relative of the owner subsequently occupies the property, the
owner of the property must notify the assessor within 30 days of the change in occupancy.
The Social Security number of a relative or relative's spouse occupying the property
is private data on individuals as defined by section 13.02, subdivision 12, but may be
disclosed to the commissioner of revenue, or, for the purposes of proceeding under the
Revenue Recapture Act to recover personal property taxes owing, to the county treasurer.
(e) The homestead application shall also notify the property owners that the
application filed under this section will not be mailed annually and that if the property
is granted homestead status for any assessment year, that same property shall remain
classified as homestead until the property is sold or transferred to another person, or
the owners, the spouse of the owner, or the relatives no longer use the property as their
homestead. Upon the sale or transfer of the homestead property, a certificate of value must
be timely filed with the county auditor as provided under section 272.115. Failure to
notify the assessor within 30 days that the property has been sold, transferred, or that the
owner, the spouse of the owner, or the relative is no longer occupying the property as a
homestead, shall result in the penalty provided under this subdivision and the property
will lose its current homestead status.
(f) If the homestead application is not returned within 30 days, the county will send a
second application to the present owners of record. The notice of proposed property taxes
prepared under section 275.065, subdivision 3, shall reflect the property's classification. If
a homestead application has not been filed with the county by December 15, the assessor
shall classify the property as nonhomestead for the current assessment year for taxes
payable in the following year, provided that the owner may be entitled to receive the
homestead classification by proper application under section 375.192.
(g) At the request of the commissioner, each county must give the commissioner a
list that includes the name and Social Security number of each occupant of homestead
property who is the property owner, property owner's spouse, qualifying relative of a
property owner, or a spouse of a qualifying relative. The commissioner shall use the
information provided on the lists as appropriate under the law, including for the detection
of improper claims by owners, or relatives of owners, under chapter 290A.
(h) If the commissioner finds that a property owner may be claiming a fraudulent
homestead, the commissioner shall notify the appropriate counties. Within 90 days of
the notification, the county assessor shall investigate to determine if the homestead
classification was properly claimed. If the property owner does not qualify, the county
assessor shall notify the county auditor who will determine the amount of homestead
benefits that had been improperly allowed. For the purpose of this section, "homestead
benefits" means the tax reduction resulting from the classification as a homestead new text begin and the
homestead market value exclusion new text end under section 273.13, the taconite homestead credit
under section 273.135, the deleted text begin residential homestead anddeleted text end agricultural homestead deleted text begin creditsdeleted text end new text begin credit
new text end under section 273.1384, and the supplemental homestead credit under section 273.1391.
The county auditor shall send a notice to the person who owned the affected property
at the time the homestead application related to the improper homestead was filed,
demanding reimbursement of the homestead benefits plus a penalty equal to 100 percent
of the homestead benefits. The person notified may appeal the county's determination
by serving copies of a petition for review with county officials as provided in section
278.01 and filing proof of service as provided in section 278.01 with the Minnesota Tax
Court within 60 days of the date of the notice from the county. Procedurally, the appeal
is governed by the provisions in chapter 271 which apply to the appeal of a property tax
assessment or levy, but without requiring any prepayment of the amount in controversy. If
the amount of homestead benefits and penalty is not paid within 60 days, and if no appeal
has been filed, the county auditor shall certify the amount of taxes and penalty to the county
treasurer. The county treasurer will add interest to the unpaid homestead benefits and
penalty amounts at the rate provided in section 279.03 for real property taxes becoming
delinquent in the calendar year during which the amount remains unpaid. Interest may be
assessed for the period beginning 60 days after demand for payment was made.
If the person notified is the current owner of the property, the treasurer may add the
total amount of homestead benefits, penalty, interest, and costs to the ad valorem taxes
otherwise payable on the property by including the amounts on the property tax statements
under section 276.04, subdivision 3. The amounts added under this paragraph to the ad
valorem taxes shall include interest accrued through December 31 of the year preceding
the taxes payable year for which the amounts are first added. These amounts, when added
to the property tax statement, become subject to all the laws for the enforcement of real or
personal property taxes for that year, and for any subsequent year.
If the person notified is not the current owner of the property, the treasurer may
collect the amounts due under the Revenue Recapture Act in chapter 270A, or use any of
the powers granted in sections 277.20 and 277.21 without exclusion, to enforce payment
of the homestead benefits, penalty, interest, and costs, as if those amounts were delinquent
tax obligations of the person who owned the property at the time the application related to
the improperly allowed homestead was filed. The treasurer may relieve a prior owner of
personal liability for the homestead benefits, penalty, interest, and costs, and instead extend
those amounts on the tax lists against the property as provided in this paragraph to the extent
that the current owner agrees in writing. On all demands, billings, property tax statements,
and related correspondence, the county must list and state separately the amounts of
homestead benefits, penalty, interest and costs being demanded, billed or assessed.
(i) Any amount of homestead benefits recovered by the county from the property
owner shall be distributed to the county, city or town, and school district where the
property is located in the same proportion that each taxing district's levy was to the total
of the three taxing districts' levy for the current year. Any amount recovered attributable
to taconite homestead credit shall be transmitted to the St. Louis County auditor to be
deposited in the taconite property tax relief account. Any amount recovered that is
attributable to supplemental homestead credit is to be transmitted to the commissioner of
revenue for deposit in the general fund of the state treasury. The total amount of penalty
collected must be deposited in the county general fund.
(j) If a property owner has applied for more than one homestead and the county
assessors cannot determine which property should be classified as homestead, the county
assessors will refer the information to the commissioner. The commissioner shall make
the determination and notify the counties within 60 days.
(k) In addition to lists of homestead properties, the commissioner may ask the
counties to furnish lists of all properties and the record owners. The Social Security
numbers and federal identification numbers that are maintained by a county or city
assessor for property tax administration purposes, and that may appear on the lists retain
their classification as private or nonpublic data; but may be viewed, accessed, and used by
the county auditor or treasurer of the same county for the limited purpose of assisting the
commissioner in the preparation of microdata samples under section 270C.12.
(l) On or before April 30 each year beginning in 2007, each county must provide the
commissioner with the following data for each parcel of homestead property by electronic
means as defined in section 289A.02, subdivision 8:
(i) the property identification number assigned to the parcel for purposes of taxes
payable in the current year;
(ii) the name and Social Security number of each occupant of homestead property
who is the property owner, property owner's spouse, qualifying relative of a property
owner, or spouse of a qualifying relative;
(iii) the classification of the property under section 273.13 for taxes payable in the
current year and in the prior year;
(iv) an indication of whether the property was classified as a homestead for taxes
payable in the current year because of occupancy by a relative of the owner or by a
spouse of a relative;
(v) the property taxes payable as defined in section 290A.03, subdivision 13, for the
current year and the prior year;
(vi) the market value of improvements to the property first assessed for tax purposes
for taxes payable in the current year;
(vii) the assessor's estimated market value assigned to the property for taxes payable
in the current year and the prior year;
(viii) the taxable market value assigned to the property for taxes payable in the
current year and the prior year;
(ix) whether there are delinquent property taxes owing on the homestead;
(x) the unique taxing district in which the property is located; and
(xi) such other information as the commissioner decides is necessary.
The commissioner shall use the information provided on the lists as appropriate
under the law, including for the detection of improper claims by owners, or relatives
of owners, under chapter 290A.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxes payable in 2013 and
thereafter.
new text end
Sec. 29.
Minnesota Statutes 2012, section 273.13, subdivision 21b, is amended to read:
Subd. 21b.
new text begin Net new text end tax capacity.
deleted text begin
(a) Gross tax capacity means the product of the
appropriate gross class rates in this section and market values.
deleted text end
deleted text begin (b)deleted text end Net tax capacity means the product of the appropriate net class rates in this
section and new text begin taxable new text end market values.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 30.
Minnesota Statutes 2012, section 273.1398, subdivision 3, is amended to read:
Subd. 3.
Disparity reduction aid.
The amount of disparity aid certified for each
taxing district within each unique taxing jurisdiction for taxes payable in the prior year
shall be multiplied by the ratio of (1) the jurisdiction's tax capacity using the class rates for
taxes payable in the year for which aid is being computed, to (2) its tax capacity using
the class rates for taxes payable in the year prior to that for which aid is being computed,
both based upon new text begin taxable new text end market values for taxes payable in the year prior to that for which
aid is being computed. If the commissioner determines that insufficient information is
available to reasonably and timely calculate the numerator in this ratio for the first taxes
payable year that a class rate change or new class rate is effective, the commissioner shall
omit the effects of that class rate change or new class rate when calculating this ratio for
aid payable in that taxes payable year. For aid payable in the year following a year for
which such omission was made, the commissioner shall use in the denominator for the
class that was changed or created, the tax capacity for taxes payable two years prior to that
in which the aid is payable, based on new text begin taxable new text end market values for taxes payable in the year
prior to that for which aid is being computed.
Sec. 31.
Minnesota Statutes 2012, section 273.1398, subdivision 4, is amended to read:
Subd. 4.
Disparity reduction credit.
(a) Beginning with taxes payable in 1989,
class 4a and class 3a property qualifies for a disparity reduction credit if: (1) the property
is located in a border city that has an enterprise zone, as defined in section 469.166; (2)
the property is located in a city with a population greater than 2,500 and less than 35,000
according to the 1980 decennial census; (3) the city is adjacent to a city in another state or
immediately adjacent to a city adjacent to a city in another state; and (4) the adjacent city
in the other state has a population of greater than 5,000 and less than 75,000 according to
the 1980 decennial census.
(b) The credit is an amount sufficient to reduce (i) the taxes levied on class 4a
property to 2.3 percent of the property's new text begin taxable new text end market value and (ii) the tax on class 3a
property to 2.3 percent of new text begin taxable new text end market value.
(c) The county auditor shall annually certify the costs of the credits to the
Department of Revenue. The department shall reimburse local governments for the
property taxes forgone as the result of the credits in proportion to their total levies.
Sec. 32.
Minnesota Statutes 2012, section 275.011, subdivision 1, is amended to read:
Subdivision 1.
Determination of levy limit.
The property tax levied for any
purpose under a special law that is not codified in Minnesota Statutes or a city charter
provision and that is subject to a mill rate limitation imposed by the special law or city
charter provision, excluding levies subject to mill rate limitations that use adjusted
assessed values determined by the commissioner of revenue under section 124.2131, must
not exceed the following amount for the years specified:
(a) for taxes payable in 1988, the product of the applicable mill rate limitation
imposed by special law or city charter provision multiplied by the total assessed valuation
of all taxable property subject to the tax as adjusted by the provisions of Minnesota
Statutes 1986, sections 272.64; 273.13, subdivision 7a; and 275.49;
(b) for taxes payable in 1989, the product of (1) the property tax levy limitation for
the taxes payable year 1988 determined under clause (a) multiplied by (2) an index for
market valuation changes equal to the assessment year 1988 total market valuation of all
taxable property subject to the tax divided by the assessment year 1987 total market
valuation of all taxable property subject to the tax; and
(c) for taxes payable in 1990 and subsequent years, the product of (1) the property
tax levy limitation for the previous year determined pursuant to this subdivision multiplied
by (2) an index for market valuation changes equal to the total market valuation of all
taxable property subject to the tax for the current assessment year divided by the total
market valuation of all taxable property subject to the tax for the previous assessment year.
For the purpose of determining the property tax levy limitation for the taxes payable
year deleted text begin 1988deleted text end new text begin 2014new text end and subsequent years under this subdivision, "total market valuation"
means the deleted text begin totaldeleted text end new text begin estimatednew text end market deleted text begin valuationdeleted text end new text begin valuenew text end of all taxable property subject to the
tax deleted text begin without valuation adjustments for fiscal disparities (chapters 276A and 473F), tax
increment financing (sections 469.174 to 469.179), or powerline credit (section 273.425)
deleted text end new text begin as provided under section 273.032new text end .
Sec. 33.
Minnesota Statutes 2012, section 275.077, subdivision 2, is amended to read:
Subd. 2.
Correction of levy amount.
The difference between the correct levy and
the erroneous levy shall be added to the township levy for the subsequent levy year;
provided that if the amount of the difference exceeds 0.12089 percent of deleted text begin taxabledeleted text end new text begin estimated
new text end market value, the excess shall be added to the township levy for the second and later
subsequent levy years, not to exceed an additional levy of 0.12089 percent of deleted text begin taxable
deleted text end new text begin estimatednew text end market value in any year, until the full amount of the difference has been levied.
The funds collected from the corrected levies shall be used to reimburse the county for the
payment required by subdivision 1.
Sec. 34.
Minnesota Statutes 2012, section 275.71, subdivision 4, is amended to read:
Subd. 4.
Adjusted levy limit base.
For taxes levied in 2008 through 2010, the
adjusted levy limit base is equal to the levy limit base computed under subdivision 2
or section 275.72, multiplied by:
(1) one plus the percentage growth in the implicit price deflator, but the percentage
shall not be less than zero or exceed 3.9 percent;
(2) one plus a percentage equal to 50 percent of the percentage increase in the number
of households, if any, for the most recent 12-month period for which data is available; and
(3) one plus a percentage equal to 50 percent of the percentage increase in the
deleted text begin taxabledeleted text end new text begin estimatednew text end market value of the jurisdiction due to new construction of class 3
property, as defined in section 273.13, subdivision 4, except for state-assessed utility and
railroad property, for the most recent year for which data is available.
Sec. 35.
Minnesota Statutes 2012, section 276.04, subdivision 2, is amended to read:
Subd. 2.
Contents of tax statements.
(a) The treasurer shall provide for the printing
of the tax statements. The commissioner of revenue shall prescribe the form of the property
tax statement and its contents. The tax statement must not state or imply that property tax
credits are paid by the state of Minnesota. The statement must contain a tabulated statement
of the dollar amount due to each taxing authority and the amount of the state tax from the
parcel of real property for which a particular tax statement is prepared. The dollar amounts
attributable to the county, the state tax, the voter approved school tax, the other local school
tax, the township or municipality, and the total of the metropolitan special taxing districts
as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated.
The amounts due all other special taxing districts, if any, may be aggregated except that
any levies made by the regional rail authorities in the county of Anoka, Carver, Dakota,
Hennepin, Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate
line directly under the appropriate county's levy. If the county levy under this paragraph
includes an amount for a lake improvement district as defined under sections 103B.501
to 103B.581, the amount attributable for that purpose must be separately stated from the
remaining county levy amount. In the case of Ramsey County, if the county levy under this
paragraph includes an amount for public library service under section 134.07, the amount
attributable for that purpose may be separated from the remaining county levy amount.
The amount of the tax on homesteads qualifying under the senior citizens' property tax
deferral program under chapter 290B is the total amount of property tax before subtraction
of the deferred property tax amount. The amount of the tax on contamination value
imposed under sections 270.91 to 270.98, if any, must also be separately stated. The dollar
amounts, including the dollar amount of any special assessments, may be rounded to the
nearest even whole dollar. For purposes of this section whole odd-numbered dollars may
be adjusted to the next higher even-numbered dollar. The amount of market value excluded
under section 273.11, subdivision 16, if any, must also be listed on the tax statement.
(b) The property tax statements for manufactured homes and sectional structures
taxed as personal property shall contain the same information that is required on the
tax statements for real property.
(c) Real and personal property tax statements must contain the following information
in the order given in this paragraph. The information must contain the current year tax
information in the right column with the corresponding information for the previous year
in a column on the left:
(1) the property's estimated market value under section 273.11, subdivision 1;
(2) the property's homestead market value exclusion under section 273.13,
subdivision 35;
(3) the property's taxable market value deleted text begin after reductionsdeleted text end under deleted text begin sections 273.11,
subdivisions 1a and 16, and 273.13, subdivision 35deleted text end new text begin section 272.03, subdivision 15new text end ;
(4) the property's gross tax, before credits;
(5) for homestead agricultural properties, the credit under section 273.1384;
(6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135;
273.1391; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of
credit received under section 273.135 must be separately stated and identified as "taconite
tax relief"; and
(7) the net tax payable in the manner required in paragraph (a).
(d) If the county uses envelopes for mailing property tax statements and if the county
agrees, a taxing district may include a notice with the property tax statement notifying
taxpayers when the taxing district will begin its budget deliberations for the current
year, and encouraging taxpayers to attend the hearings. If the county allows notices to
be included in the envelope containing the property tax statement, and if more than
one taxing district relative to a given property decides to include a notice with the tax
statement, the county treasurer or auditor must coordinate the process and may combine
the information on a single announcement.
Sec. 36.
Minnesota Statutes 2012, section 276A.01, subdivision 10, is amended to read:
Subd. 10.
new text begin Adjusted new text end market value.
"new text begin Adjusted new text end market value" of real and personal
property within a municipality means the deleted text begin assessor's estimateddeleted text end new text begin taxablenew text end market valuenew text begin ,
as defined in section 272.03,new text end of all real and personal property, including the value of
manufactured housing, within the municipalitydeleted text begin . For purposes of sections 276A.01 to
276A.09, the commissioner of revenue shall annually make determinations and reports
with respect to each municipality which are comparable to those it makes for school
districtsdeleted text end new text begin , adjusted for sales ratios in a manner similar to the adjustments made to city and
town net tax capacitiesnew text end under section 127A.48, subdivisions 1 to 6deleted text begin , in the same manner
and at the same times prescribed by the subdivision. The commissioner of revenue shall
annually determine, for each municipality, information comparable to that required by
section 475.53, subdivision 4, for school districts, as soon as practicable after it becomes
available. The commissioner of revenue shall then compute the equalized market value of
property within each municipalitydeleted text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 37.
Minnesota Statutes 2012, section 276A.01, subdivision 12, is amended to read:
Subd. 12.
Fiscal capacity.
"Fiscal capacity" of a municipality means its deleted text begin valuation
deleted text end new text begin adjusted market valuenew text end , determined as of January 2 of any year, divided by its population,
determined as of a date in the same year.
Sec. 38.
Minnesota Statutes 2012, section 276A.01, subdivision 13, is amended to read:
Subd. 13.
Average fiscal capacity.
"Average fiscal capacity" of municipalities
means the sum of the deleted text begin valuationsdeleted text end new text begin adjusted market valuesnew text end of all municipalities, determined
as of January 2 of any year, divided by the sum of their populations, determined as of
a date in the same year.
Sec. 39.
Minnesota Statutes 2012, section 276A.01, subdivision 15, is amended to read:
Subd. 15.
Net tax capacity.
"Net tax capacity" means thenew text begin taxablenew text end market value of
real and personal property multiplied by its net tax capacity rates in section 273.13.
Sec. 40.
Minnesota Statutes 2012, section 276A.06, subdivision 10, is amended to read:
Subd. 10.
Adjustment of values deleted text begin for other computationsdeleted text end .
For the purpose of
computing deleted text begin the amount or rate of any salary, aid, tax, or debt authorized, required, or
limited by any provision of any law or charter, where the authorization, requirement, or
limitation is related to any value or valuation of taxable property within any governmental
unit, the value or net tax capacitydeleted text end new text begin fiscal capacity under section 276A.01, subdivision 12, a
municipality's taxable market valuenew text end must be adjusted to reflect the deleted text begin adjustmentsdeleted text end new text begin reductions
new text end to net tax capacity effected by subdivision 2, new text begin clause (a), new text end provided thatdeleted text begin : (1)deleted text end in determining
the new text begin taxable new text end market value of commercial-industrial property or any class thereof within
a deleted text begin governmental unit for any purpose other than section 276A.05deleted text end new text begin municipalitynew text end , deleted text begin (a)deleted text end the
reduction required by this subdivision is that amount which bears the same proportion to
the amount subtracted from the deleted text begin governmental unit'sdeleted text end new text begin municipality'snew text end net tax capacity pursuant
to subdivision 2, clause (a), as the new text begin taxable new text end market value of commercial-industrial property,
or such class thereof, located within the deleted text begin governmental unitdeleted text end new text begin municipalitynew text end bears to the net
tax capacity of commercial-industrial property, or such class thereof, located within the
deleted text begin governmental unit, and (b) the increase required by this subdivision is that amount which
bears the same proportion to the amount added to the governmental unit's net tax capacity
pursuant to subdivision 2, clause (b), as the market value of commercial-industrial property,
or such class thereof, located within the governmental unit bears to the net tax capacity of
commercial-industrial property, or such class thereof, located within the governmental unit;
and (2) in determining the market value of real property within a municipality for purposes
of section 276A.05, the adjustment prescribed by clause (1)(a) must be made and that
prescribed by clause (1)(b) must not be madedeleted text end new text begin municipality. No adjustment shall be made
to taxable market value for the increase in net tax capacity under subdivision 2, clause (b)new text end .
Sec. 41.
Minnesota Statutes 2012, section 287.08, is amended to read:
287.08 TAX, HOW PAYABLE; RECEIPTS.
(a) The tax imposed by sections 287.01 to 287.12 must be paid to the treasurer of
any county in this state in which the real property or some part is located at or before
the time of filing the mortgage for record. The treasurer shall endorse receipt on the
mortgage and the receipt is conclusive proof that the tax has been paid in the amount
stated and authorizes any county recorder or registrar of titles to record the mortgage. Its
form, in substance, shall be "registration tax hereon of ..................... dollars paid." If the
mortgage is exempt from taxation the endorsement shall, in substance, be "exempt from
registration tax." In either case the receipt must be signed by the treasurer. In case the
treasurer is unable to determine whether a claim of exemption should be allowed, the tax
must be paid as in the case of a taxable mortgage. For documents submitted electronically,
the endorsements and tax amount shall be affixed electronically and no signature by the
treasurer will be required. The actual payment method must be arranged in advance
between the submitter and the receiving county.
(b) The county treasurer may refund in whole or in part any mortgage registry tax
overpayment if a written application by the taxpayer is submitted to the county treasurer
within 3-1/2 years from the date of the overpayment. If the county has not issued a denial
of the application, the taxpayer may bring an action in Tax Court in the county in which
the tax was paid at any time after the expiration of six months from the time that the
application was submitted. A denial of refund may be appealed within 60 days from
the date of the denial by bringing an action in Tax Court in the county in which the tax
was paid. The action is commenced by the serving of a petition for relief on the county
treasurer, and by filing a copy with the court. The county attorney shall defend the action.
The county treasurer shall notify the treasurer of each county that has or would receive a
portion of the tax as paid.
(c) If the county treasurer determines a refund should be paid, or if a refund is
ordered by the court, the county treasurer of each county that actually received a portion
of the tax shall immediately pay a proportionate share of three percent of the refund
using any available county funds. The county treasurer of each county that received, or
would have received, a portion of the tax shall also pay their county's proportionate share
of the remaining 97 percent of the court-ordered refund on or before the 20th day of the
following month using solely the mortgage registry tax funds that would be paid to the
commissioner of revenue on that date under section 287.12. If the funds on hand under
this procedure are insufficient to fully fund 97 percent of the court-ordered refund, the
county treasurer of the county in which the action was brought shall file a claim with the
commissioner of revenue under section 16A.48 for the remaining portion of 97 percent of
the refund, and shall pay over the remaining portion upon receipt of a warrant from the
state issued pursuant to the claim.
(d) When any mortgage covers real property located in more than one county in this
state the total tax must be paid to the treasurer of the county where the mortgage is first
presented for recording, and the payment must be receipted as provided in paragraph
(a). If the principal debt or obligation secured by such a multiple county mortgage
exceeds $10,000,000, the nonstate portion of the tax must be divided and paid over by
the county treasurer receiving it, on or before the 20th day of each month after receipt,
to the county or counties entitled in the ratio that the new text begin estimated new text end market value of the real
property covered by the mortgage in each county bears to the new text begin estimated new text end market value of
all the real property in this state described in the mortgage. In making the division and
payment the county treasurer shall send a statement giving the description of the real
property described in the mortgage and the new text begin estimated new text end market value of the part located in
each county. For this purpose, the treasurer of any county may require the treasurer of
any other county to certify to the former the new text begin estimated new text end market deleted text begin valuationdeleted text end new text begin valuenew text end of any tract
of real property in any mortgage.
(e) The mortgagor must pay the tax imposed by sections 287.01 to 287.12. The
mortgagee may undertake to collect and remit the tax on behalf of the mortgagor. If the
mortgagee collects money from the mortgagor to remit the tax on behalf of the mortgagor,
the mortgagee has a fiduciary duty to remit the tax on behalf of the mortgagor as to the
amount of the tax collected for that purpose and the mortgagor is relieved of any further
obligation to pay the tax as to the amount collected by the mortgagee for this purpose.
Sec. 42.
Minnesota Statutes 2012, section 287.23, subdivision 1, is amended to read:
Subdivision 1.
Real property outside county.
If any taxable deed or instrument
describes any real property located in more than one county in this state, the total tax must
be paid to the treasurer of the county where the document is first presented for recording,
and the payment must be receipted as provided in section 287.08. If the net consideration
exceeds $700,000, the nonstate portion of the tax must be divided and paid over by the
county treasurer receiving it, on or before the 20th day of each month after receipt, to
the county or counties entitled in the ratio which the new text begin estimated new text end market value of the real
property covered by the document in each county bears to the new text begin estimated new text end market value of
all the real property in this state described in the document. In making the division and
payment the county treasurer shall send a statement to the other involved counties giving
the description of the real property described in the document and the new text begin estimated new text end market
value of the part located in each county. The treasurer of any county may require the
treasurer of any other county to certify to the former the new text begin estimated new text end market deleted text begin valuationdeleted text end new text begin value
new text end of any parcel of real property for this purpose.
Sec. 43.
Minnesota Statutes 2012, section 353G.08, subdivision 2, is amended to read:
Subd. 2.
Cash flow funding requirement.
If the executive director determines that
an account in the voluntary statewide lump-sum volunteer firefighter retirement plan has
insufficient assets to meet the service pensions determined payable from the account,
the executive director shall certify the amount of the potential service pension shortfall
to the municipality or municipalities and the municipality or municipalities shall make
an additional employer contribution to the account within ten days of the certification.
If more than one municipality is associated with the account, unless the municipalities
agree to a different allocation, the municipalities shall allocate the additional employer
contribution one-half in proportion to the population of each municipality and one-half in
proportion to the new text begin estimated new text end market value of the property of each municipality.
Sec. 44.
Minnesota Statutes 2012, section 365.025, subdivision 4, is amended to read:
Subd. 4.
Major purchases: notice, petition, election.
Before buying anything
under subdivision 2 that costs more than 0.24177 percent of the new text begin estimated new text end market value of
the town, the town must follow this subdivision.
The town must publish in its official newspaper the board's resolution to pay for the
property over time. Then a petition for an election on the contract may be filed with the
clerk. The petition must be filed within ten days after the resolution is published. To require
the election the petition must be signed by a number of voters equal to ten percent of the
voters at the last regular town election. The contract then must be approved by a majority of
those voting on the question. The question may be voted on at a regular or special election.
Sec. 45.
Minnesota Statutes 2012, section 366.095, subdivision 1, is amended to read:
Subdivision 1.
Certificates of indebtedness.
The town board may issue certificates
of indebtedness within the debt limits for a town purpose otherwise authorized by law.
The certificates shall be payable in not more than ten years and be issued on the terms and
in the manner as the board may determine. If the amount of the certificates to be issued
exceeds 0.25 percent of the new text begin estimated new text end market value of the town, they shall not be issued
for at least ten days after publication in a newspaper of general circulation in the town of
the board's resolution determining to issue them. If within that time, a petition asking for
an election on the proposition signed by voters equal to ten percent of the number of voters
at the last regular town election is filed with the clerk, the certificates shall not be issued
until their issuance has been approved by a majority of the votes cast on the question at
a regular or special election. A tax levy shall be made to pay the principal and interest
on the certificates as in the case of bonds.
Sec. 46.
Minnesota Statutes 2012, section 366.27, is amended to read:
366.27 FIREFIGHTERS' RELIEF; TAX LEVY.
The town board of any town in this state having therein a platted portion on
which resides 1,200 or more people, and wherein a duly incorporated firefighters' relief
association is located may each year levy a tax not to exceed 0.00806 percent of deleted text begin taxable
deleted text end new text begin estimatednew text end market value for the benefit of the relief association.
Sec. 47.
Minnesota Statutes 2012, section 368.01, subdivision 23, is amended to read:
Subd. 23.
Financing purchase of certain equipment.
The town board may issue
certificates of indebtedness within debt limits to purchase fire or police equipment or
ambulance equipment or street construction or maintenance equipment. The certificates
shall be payable in not more than five years and be issued on terms and in the manner as the
board may determine. If the amount of the certificates to be issued to finance a purchase
exceeds 0.24177 percent of the new text begin estimated new text end market value of the town, deleted text begin excluding money
and credits,deleted text end they shall not be issued for at least ten days after publication in the official
newspaper of a town board resolution determining to issue them. If before the end of that
time, a petition asking for an election on the proposition signed by voters equal to ten
percent of the number of voters at the last regular town election is filed with the clerk, the
certificates shall not be issued until the proposition of their issuance has been approved by a
majority of the votes cast on the question at a regular or special election. A tax levy shall be
made for the payment of the principal and interest on the certificates as in the case of bonds.
Sec. 48.
Minnesota Statutes 2012, section 368.47, is amended to read:
368.47 TOWNS MAY BE DISSOLVED.
(1) When the voters residing within a town have failed to elect any town officials for
more than ten years continuously;
(2) when a town has failed for a period of ten years to exercise any of the powers
and functions of a town;
(3) when the new text begin estimated new text end market value of a town drops to less than $165,000;
(4) when the tax delinquency of a town, exclusive of taxes that are delinquent or
unpaid because they are contested in proceedings for the enforcement of taxes, amounts to
12 percent of its market value; or
(5) when the state or federal government has acquired title to 50 percent of the
real estate of a town,
which facts, or any of them, may be found and determined by the resolution of the county
board of the county in which the town is located, according to the official records in the
office of the county auditor, the county board by resolution may declare the town, naming
it, dissolved and no longer entitled to exercise any of the powers or functions of a town.
In Cass, Itasca, and St. Louis Counties, before the dissolution is effective the voters
of the town shall express their approval or disapproval. The town clerk shall, upon a
petition signed by a majority of the registered voters of the town, filed with the clerk at
least 60 days before a regular or special town election, give notice at the same time and
in the same manner of the election that the question of dissolution of the town will be
submitted for determination at the election. At the election the question shall be voted
upon by a separate ballot, the terms of which shall be either "for dissolution" or "against
dissolution." The ballot shall be deposited in a separate ballot box and the result of the
voting canvassed, certified, and returned in the same manner and at the same time as
other facts and returns of the election. If a majority of the votes cast at the election are
for dissolution, the town shall be dissolved. If a majority of the votes cast at the election
are against dissolution, the town shall not be dissolved.
When a town is dissolved under sections 368.47 to 368.49 the county shall acquire
title to any telephone company or other business conducted by the town. The business
shall be operated by the board of county commissioners until it can be sold. The
subscribers or patrons of the business shall have the first opportunity of purchase. If the
town has any outstanding indebtedness chargeable to the business, the county auditor shall
levy a tax against the property situated in the dissolved town to pay the indebtedness
as it becomes due.
Sec. 49.
Minnesota Statutes 2012, section 370.01, is amended to read:
370.01 CHANGE OF BOUNDARIES; CREATION OF NEW COUNTIES.
The boundaries of counties may be changed by taking territory from a county and
attaching it to an adjoining county, and new counties may be established out of territory of
one or more existing counties. A new county shall contain at least 400 square miles and
have at least 4,000 inhabitants. A proposed new county must have a total deleted text begin taxabledeleted text end new text begin estimated
new text end market value of at least 35 percent of (i) the total deleted text begin taxabledeleted text end new text begin estimatednew text end market value of the
existing county, or (ii) the average total deleted text begin taxabledeleted text end new text begin estimatednew text end market value of the existing
counties, included in the proposition. The determination of the deleted text begin taxabledeleted text end new text begin estimatednew text end market
value of a county must be made by the commissioner of revenue. An existing county shall
not be reduced in area below 400 square miles, have less than 4,000 inhabitants, or have a
total deleted text begin taxabledeleted text end new text begin estimatednew text end market value of less than that required of a new county.
No change in the boundaries of any county having an area of more than 2,500 square
miles, whether by the creation of a new county, or otherwise, shall detach from the existing
county any territory within 12 miles of the county seat.
Sec. 50.
Minnesota Statutes 2012, section 373.40, subdivision 1, is amended to read:
Subdivision 1.
Definitions.
For purposes of this section, the following terms have
the meanings given.
(a) "Bonds" means an obligation as defined under section 475.51.
(b) "Capital improvement" means acquisition or betterment of public lands,
buildings, or other improvements within the county for the purpose of a county courthouse,
administrative building, health or social service facility, correctional facility, jail, law
enforcement center, hospital, morgue, library, park, qualified indoor ice arena, roads and
bridges, and the acquisition of development rights in the form of conservation easements
under chapter 84C. An improvement must have an expected useful life of five years or
more to qualify. "Capital improvement" does not include a recreation or sports facility
building (such as, but not limited to, a gymnasium, ice arena, racquet sports facility,
swimming pool, exercise room or health spa), unless the building is part of an outdoor
park facility and is incidental to the primary purpose of outdoor recreation.
(c) "Metropolitan county" means a county located in the seven-county metropolitan
area as defined in section 473.121 or a county with a population of 90,000 or more.
(d) "Population" means the population established by the most recent of the
following (determined as of the date the resolution authorizing the bonds was adopted):
(1) the federal decennial census,
(2) a special census conducted under contract by the United States Bureau of the
Census, or
(3) a population estimate made either by the Metropolitan Council or by the state
demographer under section 4A.02.
(e) "Qualified indoor ice arena" means a facility that meets the requirements of
section 373.43.
deleted text begin
(f) "Tax capacity" means total taxable market value, but does not include captured
market value.
deleted text end
Sec. 51.
Minnesota Statutes 2012, section 373.40, subdivision 4, is amended to read:
Subd. 4.
Limitations on amount.
A county may not issue bonds under this section
if the maximum amount of principal and interest to become due in any year on all the
outstanding bonds issued pursuant to this section (including the bonds to be issued) will
equal or exceed 0.12 percent of deleted text begin taxabledeleted text end new text begin the estimatednew text end market value of property in the
county. Calculation of the limit must be made using the deleted text begin taxabledeleted text end new text begin estimatednew text end market value for
the taxes payable year in which the obligations are issued and sold. This section does not
limit the authority to issue bonds under any other special or general law.
Sec. 52.
Minnesota Statutes 2012, section 375.167, subdivision 1, is amended to read:
Subdivision 1.
Appropriations.
Notwithstanding any contrary law, a county board
may appropriate from the general revenue fund to any nonprofit corporation a sum not
to exceed 0.00604 percent of deleted text begin taxabledeleted text end new text begin estimatednew text end market value to provide legal assistance
to persons who are unable to afford private legal counsel.
Sec. 53.
Minnesota Statutes 2012, section 375.18, subdivision 3, is amended to read:
Subd. 3.
Courthouse.
Each county board may erect, furnish, and maintain a
suitable courthouse. No indebtedness shall be created for a courthouse in excess of an
amount equal to a levy of 0.04030 percent of deleted text begin taxabledeleted text end new text begin estimatednew text end market value without the
approval of a majority of the voters of the county voting on the question of issuing the
obligation at an election.
Sec. 54.
Minnesota Statutes 2012, section 375.555, is amended to read:
375.555 FUNDING.
To implement the county emergency jobs program, the county board may expend
an amount equal to what would be generated by a levy of 0.01209 percent of deleted text begin taxable
deleted text end new text begin estimatednew text end market value. The money to be expended may be from any available funds
not otherwise earmarked.
Sec. 55.
Minnesota Statutes 2012, section 383B.152, is amended to read:
383B.152 BUILDING AND MAINTENANCE FUND.
The county board may by resolution levy a tax to provide money which shall be kept
in a fund known as the county reserve building and maintenance fund. Money in the fund
shall be used solely for the construction, maintenance, and equipping of county buildings
that are constructed or maintained by the board. The levy shall not be subject to any limit
fixed by any other law or by any board of tax levy or other corresponding body, but shall
not exceed 0.02215 percent of deleted text begin taxabledeleted text end new text begin estimatednew text end market value, less the amount required by
chapter 475 to be levied in the year for the payment of the principal of and interest on all
bonds issued pursuant to Extra Session Laws 1967, chapter 47, section 1.
Sec. 56.
Minnesota Statutes 2012, section 383B.245, is amended to read:
383B.245 LIBRARY LEVY.
(a) The county board may levy a tax on the taxable property within the county to
acquire, better, and construct county library buildings and branches and to pay principal
and interest on bonds issued for that purpose.
(b) The county board may by resolution adopted by a five-sevenths vote issue and
sell general obligation bonds of the county in the manner provided in sections 475.60 to
475.73. The bonds shall not be subject to the limitations of sections 475.51 to 475.59,
but the maturity years and amounts and interest rates of each series of bonds shall be
fixed so that the maximum amount of principal and interest to become due in any year,
on the bonds of that series and of all outstanding series issued by or for the purposes of
libraries, shall not exceed an amount equal to 0.01612 percent of new text begin estimated new text end market value
of all taxable property in the county as last finally equalized before the issuance of the new
series. When the tax levy authorized in this section is collected it shall be appropriated
and credited to a debt service fund for the bonds in amounts required each year in lieu of a
countywide tax levy for the debt service fund under section 475.61.
Sec. 57.
Minnesota Statutes 2012, section 383B.73, subdivision 1, is amended to read:
Subdivision 1.
Levy.
To provide funds for the purposes of the Three Rivers Park
District as set forth in its annual budget, in lieu of the levies authorized by any other
special law for such purposes, the Board of Park District Commissioners may levy taxes
on all the taxable property in the county and park district at a rate not exceeding 0.03224
percent of new text begin estimated new text end market value. Notwithstanding section 398.16, on or before October
1 of each year, after public hearing, the Board of Park District Commissioners shall adopt
a budget for the ensuing year and shall determine the total amount necessary to be raised
from ad valorem tax levies to meet its budget. The Board of Park District Commissioners
shall submit the budget to the county board. The county board may veto or modify an item
contained in the budget. If the county board determines to veto or to modify an item in the
budget, it must, within 15 days after the budget was submitted by the district board, state
in writing the specific reasons for its objection to the item vetoed or the reason for the
modification. The Park District Board, after consideration of the county board's objections
and proposed modifications, may reapprove a vetoed item or the original version of an item
with respect to which a modification has been proposed, by a two-thirds majority. If the
district board does not reapprove a vetoed item, the item shall be deleted from the budget.
If the district board does not reapprove the original version of a modified item, the item
shall be included in the budget as modified by the county board. After adoption of the final
budget and no later than October 1, the superintendent of the park district shall certify to the
office of the Hennepin County director of tax and public records exercising the functions
of the county auditor the total amount to be raised from ad valorem tax levies to meet its
budget for the ensuing year. The director of tax and public records shall add the amount of
any levy certified by the district to other tax levies on the property of the county within the
district for collection by the director of tax and public records with other taxes. When
collected, the director shall make settlement of such taxes with the district in the same
manner as other taxes are distributed to the other political subdivisions in Hennepin County.
Sec. 58.
Minnesota Statutes 2012, section 383E.20, is amended to read:
383E.20 BONDING FOR COUNTY LIBRARY BUILDINGS.
The Anoka County Board may, by resolution adopted by a four-sevenths vote, issue
and sell general obligation bonds of the county in the manner provided in chapter 475 to
acquire, better, and construct county library buildings. The bonds shall not be subject to the
requirements of sections 475.57 to 475.59. The maturity years and amounts and interest
rates of each series of bonds shall be fixed so that the maximum amount of principal and
interest to become due in any year, on the bonds of that series and of all outstanding series
issued by or for the purposes of libraries, shall not exceed an amount equal to .01 percent
of the deleted text begin taxabledeleted text end new text begin estimatednew text end market value of all taxable property in the county, excluding any
taxable property taxed by any city for the support of any free public library. When the tax
levy authorized in this section is collected, it shall be appropriated and credited to a debt
service fund for the bonds. The tax levy for the debt service fund under section 475.61
shall be reduced by the amount available or reasonably anticipated to be available in the
fund to make payments otherwise payable from the levy pursuant to section 475.61.
Sec. 59.
Minnesota Statutes 2012, section 383E.23, is amended to read:
383E.23 LIBRARY TAX.
The Anoka County Board may levy a tax of not more than .01 percent of the deleted text begin taxable
deleted text end new text begin estimatednew text end market value of taxable property located within the county excluding any
taxable property taxed by any city for the support of any free public library, to acquire,
better, and construct county library buildings and to pay principal and interest on bonds
issued for that purpose. The tax shall be disregarded in the calculation of levies or limits
on levies provided by section 373.40, or other law.
Sec. 60.
Minnesota Statutes 2012, section 385.31, is amended to read:
385.31 PAYMENT OF COUNTY ORDERS OR WARRANTS.
When any order or warrant drawn on the treasurer is presented for payment, if there
is money in the treasury for that purpose, the county treasurer shall redeem the same, and
write across the entire face thereof the word "redeemed," the date of the redemption, and
the treasurer's official signature. If there is not sufficient funds in the proper accounts to
pay such orders they shall be numbered and registered in their order of presentation,
and proper endorsement thereof shall be made on such orders and they shall be entitled
to payment in like order. Such orders shall bear interest at not to exceed the rate of six
percent per annum from such date of presentment. The treasurer, as soon as there is
sufficient money in the treasury, shall appropriate and set apart a sum sufficient for the
payment of the orders so presented and registered, and, if entitled to interest, issue to the
original holder a notice that interest will cease in 30 days from the date of such notice; and,
if orders thus entitled to priority of payment are not then presented, the next in order of
registry may be paid until such orders are presented. No interest shall be paid on any order,
except upon a warrant drawn by the county auditor for that purpose, giving the number
and the date of the order on account of which the interest warrant is drawn. In any county
in this state now or hereafter having deleted text begin adeleted text end new text begin an estimatednew text end market value of all taxable propertydeleted text begin ,
exclusive of money and credits,deleted text end of not less than $1,033,000,000, the county treasurer, in
order to save payment of interest on county warrants drawn upon a fund in which there
shall be temporarily insufficient money in the treasury to redeem the same, may borrow
temporarily from any other fund in the county treasury in which there is a sufficient balance
to care for the needs of such fund and allow a temporary loan or transfer to any other fund,
and may pay such warrants out of such funds. Any such money so transferred and used in
redeeming such county warrants shall be returned to the fund from which drawn as soon
as money shall come in to the credit of such fund on which any such warrant was drawn
and paid as aforesaid. Any county operating on a cash basis may use a combined form of
warrant or order and check, which, when signed by the chair of the county board and by
the auditor, is an order or warrant for the payment of the claim, and, when countersigned
by the county treasurer, is a check for the payment of the amount thereof.
Sec. 61.
Minnesota Statutes 2012, section 394.36, subdivision 1, is amended to read:
Subdivision 1.
Continuation of nonconformity; limitations.
Except as provided in
subdivision 2, 3, or 4, any nonconformity, including the lawful use or occupation of land
or premises existing at the time of the adoption of an official control under this chapter,
may be continued, although the use or occupation does not conform to the official control.
If the nonconformity or occupancy is discontinued for a period of more than one year, or
any nonconforming building or structure is destroyed by fire or other peril to the extent of
50 percent of its new text begin estimated new text end market value, any subsequent use or occupancy of the land or
premises shall be a conforming use or occupancy.
Sec. 62.
Minnesota Statutes 2012, section 398A.04, subdivision 8, is amended to read:
Subd. 8.
Taxation.
Before deciding to exercise the power to tax, the authority shall
give six weeks' published notice in all municipalities in the region. If a number of voters
in the region equal to five percent of those who voted for candidates for governor at the
last gubernatorial election present a petition within nine weeks of the first published notice
to the secretary of state requesting that the matter be submitted to popular vote, it shall be
submitted at the next general election. The question prepared shall be:
"Shall the regional rail authority have the power to impose a property tax?
|
Yes
. |
||
|
No
.
"
|
If a majority of those voting on the question approve or if no petition is presented
within the prescribed time the authority may levy a tax at any annual rate not exceeding
0.04835 percent ofnew text begin estimatednew text end market value of all taxable property situated within the
municipality or municipalities named in its organization resolution. Its recording officer
shall file, on or before September 15, in the office of the county auditor of each county
in which territory under the jurisdiction of the authority is located a certified copy of the
board of commissioners' resolution levying the tax, and each county auditor shall assess
and extend upon the tax rolls of each municipality named in the organization resolution the
portion of the tax that bears the same ratio to the whole amount that the net tax capacity of
taxable property in that municipality bears to the net tax capacity of taxable property in
all municipalities named in the organization resolution. Collections of the tax shall be
remitted by each county treasurer to the treasurer of the authority. For taxes levied in 1991,
the amount levied for light rail transit purposes under this subdivision shall not exceed 75
percent of the amount levied in 1990 for light rail transit purposes under this subdivision.
Sec. 63.
Minnesota Statutes 2012, section 401.05, subdivision 3, is amended to read:
Subd. 3.
Leasing.
(a) A county or joint powers board of a group of counties
which acquires or constructs and equips or improves facilities under this chapter may,
with the approval of the board of county commissioners of each county, enter into a
lease agreement with a city situated within any of the counties, or a county housing and
redevelopment authority established under chapter 469 or any special law. Under the lease
agreement, the city or county housing and redevelopment authority shall:
(1) construct or acquire and equip or improve a facility in accordance with plans
prepared by or at the request of a county or joint powers board of the group of counties
and approved by the commissioner of corrections; and
(2) finance the facility by the issuance of revenue bonds.
(b) The county or joint powers board of a group of counties may lease the facility
site, improvements, and equipment for a term upon rental sufficient to produce revenue
for the prompt payment of the revenue bonds and all interest accruing on them. Upon
completion of payment, the lessee shall acquire title. The real and personal property
acquired for the facility constitutes a project and the lease agreement constitutes a revenue
agreement as provided in sections 469.152 to 469.165. All proceedings by the city or
county housing and redevelopment authority and the county or joint powers board shall be
as provided in sections 469.152 to 469.165, with the following adjustments:
(1) no tax may be imposed upon the property;
(2) the approval of the project by the commissioner of employment and economic
development is not required;
(3) the Department of Corrections shall be furnished and shall record information
concerning each project as it may prescribe, in lieu of reports required on other projects to
the commissioner of employment and economic development;
(4) the rentals required to be paid under the lease agreement shall not exceed in any
year one-tenth of one percent of the new text begin estimated new text end market value of property within the county
or group of counties as last equalized before the execution of the lease agreement;
(5) the county or group of counties shall provide for payment of all rentals due
during the term of the lease agreement in the manner required in subdivision 4;
(6) no mortgage on the facilities shall be granted for the security of the bonds, but
compliance with clause (5) may be enforced as a nondiscretionary duty of the county
or group of counties; and
(7) the county or the joint powers board of the group of counties may sublease any
part of the facilities for purposes consistent with their maintenance and operation.
Sec. 64.
Minnesota Statutes 2012, section 410.32, is amended to read:
410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.
(a) Notwithstanding any contrary provision of other law or charter, a home rule
charter city may, by resolution and without public referendum, issue capital notes subject
to the city debt limit to purchase capital equipment.
(b) For purposes of this section, "capital equipment" means:
(1) public safety equipment, ambulance and other medical equipment, road
construction and maintenance equipment, and other capital equipment; and
(2) computer hardware and software, whether bundled with machinery or equipment
or unbundled.
(c) The equipment or software must have an expected useful life at least as long
as the term of the notes.
(d) The notes shall be payable in not more than ten years and be issued on terms
and in the manner the city determines. The total principal amount of the capital notes
issued in a fiscal year shall not exceed 0.03 percent of the new text begin estimated new text end market value of
taxable property in the city for that year.
(e) A tax levy shall be made for the payment of the principal and interest on the
notes, in accordance with section 475.61, as in the case of bonds.
(f) Notes issued under this section shall require an affirmative vote of two-thirds of
the governing body of the city.
(g) Notwithstanding a contrary provision of other law or charter, a home rule charter
city may also issue capital notes subject to its debt limit in the manner and subject to the
limitations applicable to statutory cities pursuant to section 412.301.
Sec. 65.
Minnesota Statutes 2012, section 412.221, subdivision 2, is amended to read:
Subd. 2.
Contracts.
The council shall have power to make such contracts as may
be deemed necessary or desirable to make effective any power possessed by the council.
The city may purchase personal property through a conditional sales contract and real
property through a contract for deed under which contracts the seller is confined to the
remedy of recovery of the property in case of nonpayment of all or part of the purchase
price, which shall be payable over a period of not to exceed five years. When the contract
price of property to be purchased by contract for deed or conditional sales contract
exceeds 0.24177 percent of the new text begin estimated new text end market value of the city, the city may not enter
into such a contract for at least ten days after publication in the official newspaper of a
council resolution determining to purchase property by such a contract; and, if before the
end of that time a petition asking for an election on the proposition signed by voters equal
to ten percent of the number of voters at the last regular city election is filed with the clerk,
the city may not enter into such a contract until the proposition has been approved by a
majority of the votes cast on the question at a regular or special election.
Sec. 66.
Minnesota Statutes 2012, section 412.301, is amended to read:
412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.
(a) The council may issue certificates of indebtedness or capital notes subject to the
city debt limits to purchase capital equipment.
(b) For purposes of this section, "capital equipment" means:
(1) public safety equipment, ambulance and other medical equipment, road
construction and maintenance equipment, and other capital equipment; and
(2) computer hardware and software, whether bundled with machinery or equipment
or unbundled.
(c) The equipment or software must have an expected useful life at least as long as
the terms of the certificates or notes.
(d) Such certificates or notes shall be payable in not more than ten years and shall be
issued on such terms and in such manner as the council may determine.
(e) If the amount of the certificates or notes to be issued to finance any such purchase
exceeds 0.25 percent of the new text begin estimated new text end market value of taxable property in the city, they
shall not be issued for at least ten days after publication in the official newspaper of
a council resolution determining to issue them; and if before the end of that time, a
petition asking for an election on the proposition signed by voters equal to ten percent
of the number of voters at the last regular municipal election is filed with the clerk, such
certificates or notes shall not be issued until the proposition of their issuance has been
approved by a majority of the votes cast on the question at a regular or special election.
(f) A tax levy shall be made for the payment of the principal and interest on such
certificates or notes, in accordance with section 475.61, as in the case of bonds.
Sec. 67.
Minnesota Statutes 2012, section 428A.02, subdivision 1, is amended to read:
Subdivision 1.
Ordinance.
The governing body of a city may adopt an ordinance
establishing a special service district. Only property that is classified under section 273.13
and used for commercial, industrial, or public utility purposes, or is vacant land zoned or
designated on a land use plan for commercial or industrial use and located in the special
service district, may be subject to the charges imposed by the city on the special service
district. Other types of property may be included within the boundaries of the special
service district but are not subject to the levies or charges imposed by the city on the
special service district. If 50 percent or more of the new text begin estimated new text end market value of a parcel of
property is classified under section 273.13 as commercial, industrial, or vacant land zoned
or designated on a land use plan for commercial or industrial use, or public utility for the
current assessment year, then the entire new text begin taxable new text end market value of the property is subject to a
service charge based on net tax capacity for purposes of sections 428A.01 to 428A.10.
The ordinance shall describe with particularity the area within the city to be included in
the district and the special services to be furnished in the district. The ordinance may not
be adopted until after a public hearing has been held on the question. Notice of the hearing
shall include the time and place of hearing, a map showing the boundaries of the proposed
district, and a statement that all persons owning property in the proposed district that
would be subject to a service charge will be given opportunity to be heard at the hearing.
Within 30 days after adoption of the ordinance under this subdivision, the governing body
shall send a copy of the ordinance to the commissioner of revenue.
Sec. 68.
Minnesota Statutes 2012, section 430.102, subdivision 2, is amended to read:
Subd. 2.
Council approval; special tax levy limitation.
The council shall receive
and consider the estimate required in subdivision 1 and the items of cost after notice and
hearing before it or its appropriate committee as it considers necessary or expedient, and
shall approve the estimate, with necessary amendments. The amounts of each item of cost
estimated are then appropriated to operate, maintain, and improve the pedestrian mall
during the next fiscal year. The amount of the special tax to be charged under subdivision
1, clause (3), must not, however, exceed 0.12089 percent of new text begin estimated new text end market value of
taxable property in the district. The council shall make any necessary adjustment in costs of
operating and maintaining the district to keep the amount of the tax within this limitation.
Sec. 69.
Minnesota Statutes 2012, section 447.10, is amended to read:
447.10 TAX LEVY FOR OPERATING AND MAINTAINING HOSPITAL.
The governing body of a city of the first class owning a hospital may annually levy
a tax to operate and maintain the hospital. The tax must not exceed 0.00806 percent of
deleted text begin taxabledeleted text end new text begin estimatednew text end market value.
Sec. 70.
Minnesota Statutes 2012, section 450.19, is amended to read:
450.19 TOURIST CAMPING GROUNDS.
A home rule charter or statutory city or town may establish and maintain public
tourist camping grounds. The governing body thereof may acquire by lease, purchase, or
gift, suitable lands located either within or without the corporate limits for use as public
tourist camping grounds and provide for the equipment, operation, and maintenance
of the same. The amount that may be expended for the maintenance, improvement, or
operation of tourist camping grounds shall not exceed, in any year, a sum equal to 0.00806
percent of deleted text begin taxabledeleted text end new text begin estimatednew text end market value.
Sec. 71.
Minnesota Statutes 2012, section 450.25, is amended to read:
450.25 MUSEUM, GALLERY, OR SCHOOL OF ARTS OR CRAFTS; TAX
LEVY.
After the acquisition of any museum, gallery, or school of arts or crafts, the board
of park commissioners of the city in which it is located shall cause to be included in the
annual tax levy upon all the taxable property of the county in which the museum, gallery,
or school of arts or crafts is located, a tax of 0.00846 percent of new text begin estimated new text end market value.
The board shall certify the levy to the county auditor and it shall be added to, and collected
with and as part of, the general, real, and personal property taxes, with like penalties and
interest, in case of nonpayment and default, and all provisions of law in respect to the
levy, collection, and enforcement of other taxes shall, so far as applicable, be followed in
respect of these taxes. All of these taxes, penalties, and interest, when collected, shall be
paid to the city treasurer of the city in which is located the museum, gallery, or school
of arts or crafts and credited to a fund to be known as the park museum fund, and shall
be used only for the purposes specified in sections 450.23 to 450.25. Any part of the
proceeds of the levy not expended for the purposes specified in section 450.24 may be
used for the erection of new buildings for the same purposes.
Sec. 72.
Minnesota Statutes 2012, section 458A.10, is amended to read:
458A.10 PROPERTY TAX.
The commission shall annually levy a tax not to exceed 0.12089 percent of new text begin estimated
new text end market value on all the taxable property in the transit area at a rate sufficient to produce
an amount necessary for the purposes of sections 458A.01 to 458A.15, other than the
payment of principal and interest due on any revenue bonds issued pursuant to section
458A.05. Property taxes levied under this section shall be certified by the commission to
the county auditors of the transit area, extended, assessed, and collected in the manner
provided by law for the property taxes levied by the governing bodies of cities. The
proceeds of the taxes levied under this section shall be remitted by the respective county
treasurers to the treasurer of the commission, who shall credit the same to the funds of
the commission for use for the purposes of sections 458A.01 to 458A.15 subject to any
applicable pledges or limitations on account of tax anticipation certificates or other
specific purposes. At any time after making a tax levy under this section and certifying
it to the county auditors, the commission may issue general obligation certificates of
indebtedness in anticipation of the collection of the taxes as provided by section 412.261.
Sec. 73.
Minnesota Statutes 2012, section 458A.31, subdivision 1, is amended to read:
Subdivision 1.
Levy limit.
Notwithstanding anything to the contrary contained in
the charter of the city of Duluth, any ordinance thereof, or any statute applicable thereto,
limiting the amount levied in any one year for general or special purposes, the city council
of the city of Duluth shall each year levy a tax in an amount not to exceed 0.07253
percent of deleted text begin taxabledeleted text end new text begin estimatednew text end market value, by ordinance. An ordinance fixing the levy
shall take effect immediately upon its passage and approval. The proceeds of the levy
shall be paid into the city treasury and deposited in the operating fund provided for in
section 458A.24, subdivision 3.
Sec. 74.
Minnesota Statutes 2012, section 465.04, is amended to read:
465.04 ACCEPTANCE OF GIFTS.
Cities of the second, third, or fourth class, having at any time deleted text begin adeleted text end new text begin an estimated
new text end market value of not more than $41,000,000, deleted text begin exclusive of money and credits,deleted text end as officially
equalized by the commissioner of revenue, either under home rule charter or under the
laws of this state, in addition to all other powers possessed by them, hereby are authorized
and empowered to receive and accept gifts and donations for the use and benefit of
such cities and the inhabitants thereof upon terms and conditions to be approved by the
governing bodies of such cities; and such cities are authorized to comply with and perform
such terms and conditions, which may include payment to the donor or donors of interest
on the value of the gift at not exceeding five percent per annum payable annually or
semiannually, during the remainder of the natural life or lives of such donor or donors.
Sec. 75.
Minnesota Statutes 2012, section 469.033, subdivision 6, is amended to read:
Subd. 6.
Operation area as taxing district, special tax.
All of the territory included
within the area of operation of any authority shall constitute a taxing district for the
purpose of levying and collecting special benefit taxes as provided in this subdivision. All
of the taxable property, both real and personal, within that taxing district shall be deemed
to be benefited by projects to the extent of the special taxes levied under this subdivision.
Subject to the consent by resolution of the governing body of the city in and for which
it was created, an authority may levy a tax upon all taxable property within that taxing
district. The tax shall be extended, spread, and included with and as a part of the general
taxes for state, county, and municipal purposes by the county auditor, to be collected and
enforced therewith, together with the penalty, interest, and costs. As the tax, including any
penalties, interest, and costs, is collected by the county treasurer it shall be accumulated
and kept in a separate fund to be known as the "housing and redevelopment project fund."
The money in the fund shall be turned over to the authority at the same time and in the same
manner that the tax collections for the city are turned over to the city, and shall be expended
only for the purposes of sections 469.001 to 469.047. It shall be paid out upon vouchers
signed by the chair of the authority or an authorized representative. The amount of the
levy shall be an amount approved by the governing body of the city, but shall not exceed
0.0185 percent of deleted text begin taxabledeleted text end new text begin estimatednew text end market value. The authority shall each year formulate
and file a budget in accordance with the budget procedure of the city in the same manner as
required of executive departments of the city or, if no budgets are required to be filed, by
August 1. The amount of the tax levy for the following year shall be based on that budget.
Sec. 76.
Minnesota Statutes 2012, section 469.034, subdivision 2, is amended to read:
Subd. 2.
General obligation revenue bonds.
(a) An authority may pledge the
general obligation of the general jurisdiction governmental unit as additional security for
bonds payable from income or revenues of the project or the authority. The authority
must find that the pledged revenues will equal or exceed 110 percent of the principal and
interest due on the bonds for each year. The proceeds of the bonds must be used for a
qualified housing development project or projects. The obligations must be issued and
sold in the manner and following the procedures provided by chapter 475, except the
obligations are not subject to approval by the electors, and the maturities may extend to
not more than 35 years for obligations sold to finance housing for the elderly and 40 years
for other obligations issued under this subdivision. The authority is the municipality for
purposes of chapter 475.
(b) The principal amount of the issue must be approved by the governing body of
the general jurisdiction governmental unit whose general obligation is pledged. Public
hearings must be held on issuance of the obligations by both the authority and the general
jurisdiction governmental unit. The hearings must be held at least 15 days, but not more
than 120 days, before the sale of the obligations.
(c) The maximum amount of general obligation bonds that may be issued and
outstanding under this section equals the greater of (1) one-half of one percent of the
deleted text begin taxabledeleted text end new text begin estimatednew text end market value of the general jurisdiction governmental unit whose
general obligation is pledged, or (2) $3,000,000. In the case of county or multicounty
general obligation bonds, the outstanding general obligation bonds of all cities in the
county or counties issued under this subdivision must be added in calculating the limit
under clause (1).
(d) "General jurisdiction governmental unit" means the city in which the housing
development project is located. In the case of a county or multicounty authority, the
county or counties may act as the general jurisdiction governmental unit. In the case of
a multicounty authority, the pledge of the general obligation is a pledge of a tax on the
taxable property in each of the counties.
(e) "Qualified housing development project" means a housing development project
providing housing either for the elderly or for individuals and families with incomes not
greater than 80 percent of the median family income as estimated by the United States
Department of Housing and Urban Development for the standard metropolitan statistical
area or the nonmetropolitan county in which the project is located. The project must be
owned for the term of the bonds either by the authority or by a limited partnership or other
entity in which the authority or another entity under the sole control of the authority is
the sole general partner and the partnership or other entity must receive (1) an allocation
from the Department of Management and Budget or an entitlement issuer of tax-exempt
bonding authority for the project and a preliminary determination by the Minnesota
Housing Finance Agency or the applicable suballocator of tax credits that the project
will qualify for four percent low-income housing tax credits or (2) a reservation of nine
percent low-income housing tax credits from the Minnesota Housing Finance Agency or a
suballocator of tax credits for the project. A qualified housing development project may
admit nonelderly individuals and families with higher incomes if:
(1) three years have passed since initial occupancy;
(2) the authority finds the project is experiencing unanticipated vacancies resulting in
insufficient revenues, because of changes in population or other unforeseen circumstances
that occurred after the initial finding of adequate revenues; and
(3) the authority finds a tax levy or payment from general assets of the general
jurisdiction governmental unit will be necessary to pay debt service on the bonds if higher
income individuals or families are not admitted.
(f) The authority may issue bonds to refund bonds issued under this subdivision in
accordance with section 475.67. The finding of the adequacy of pledged revenues required
by paragraph (a) and the public hearing required by paragraph (b) shall not apply to the
issuance of refunding bonds. This paragraph applies to refunding bonds issued on and
after July 1, 1992.
Sec. 77.
Minnesota Statutes 2012, section 469.053, subdivision 4, is amended to read:
Subd. 4.
Mandatory city levy.
A city shall, at the request of the port authority, levy
a tax in any year for the benefit of the port authority. The tax must not exceed 0.01813
percent of deleted text begin taxabledeleted text end new text begin estimatednew text end market value. The amount levied must be paid by the city
treasurer to the treasurer of the port authority, to be spent by the authority.
Sec. 78.
Minnesota Statutes 2012, section 469.053, subdivision 4a, is amended to read:
Subd. 4a.
Seaway port authority levy.
A levy made under this subdivision shall
replace the mandatory city levy under subdivision 4. A seaway port authority is a special
taxing district under section 275.066 and may levy a tax in any year for the benefit of the
seaway port authority. The tax must not exceed 0.01813 percent of deleted text begin taxabledeleted text end new text begin estimated
new text end market value. The county auditor shall distribute the proceeds of the property tax levy to
the seaway port authority.
Sec. 79.
Minnesota Statutes 2012, section 469.053, subdivision 6, is amended to read:
Subd. 6.
Discretionary city levy.
Upon request of a port authority, the port
authority's city may levy a tax to be spent by and for its port authority. The tax must
enable the port authority to carry out efficiently and in the public interest sections 469.048
to 469.068 to create and develop industrial development districts. The levy must not be
more than 0.00282 percent of deleted text begin taxabledeleted text end new text begin estimatednew text end market value. The county treasurer shall
pay the proceeds of the tax to the port authority treasurer. The money may be spent by
the authority in performance of its duties to create and develop industrial development
districts. In spending the money the authority must judge what best serves the public
interest. The levy in this subdivision is in addition to the levy in subdivision 4.
Sec. 80.
Minnesota Statutes 2012, section 469.107, subdivision 1, is amended to read:
Subdivision 1.
City tax levy.
A city may, at the request of the authority, levy a tax in
any year for the benefit of the authority. The tax must be not more than 0.01813 percent of
deleted text begin taxabledeleted text end new text begin estimatednew text end market value. The amount levied must be paid by the city treasurer to
the treasurer of the authority, to be spent by the authority.
Sec. 81.
Minnesota Statutes 2012, section 469.180, subdivision 2, is amended to read:
Subd. 2.
Tax levies.
Notwithstanding any law, the county board of any county may
appropriate from the general revenue fund a sum not to exceed a county levy of 0.00080
percent of deleted text begin taxabledeleted text end new text begin estimatednew text end market value to carry out the purposes of this section.
Sec. 82.
Minnesota Statutes 2012, section 469.187, is amended to read:
469.187 FIRST CLASS CITY SPENDING FOR PUBLICITY; PUBLICITY
BOARD.
Any city of the first class may expend money for city publicity purposes. The city may
levy a tax, not exceeding 0.00080 percent of deleted text begin taxabledeleted text end new text begin estimatednew text end market value. The proceeds
of the levy shall be expended in the manner and for the city publicity purposes the council
directs. The council may establish and provide for a publicity board or bureau to administer
the fund, subject to the conditions and limitations the council prescribes by ordinance.
Sec. 83.
Minnesota Statutes 2012, section 469.206, is amended to read:
469.206 HAZARDOUS PROPERTY PENALTY.
A city may assess a penalty up to one percent of thenew text begin estimatednew text end market value of
real property, including any building located within the city that the city determines to
be hazardous as defined in section 463.15, subdivision 3. The city shall send a written
notice to the address to which the property tax statement is sent at least 90 days before it
may assess the penalty. If the owner of the property has not paid the penalty or fixed the
property within 90 days after receiving notice of the penalty, the penalty is considered
delinquent and is increased by 25 percent each 60 days the penalty is not paid and the
property remains hazardous. For the purposes of this section, a penalty that is delinquent
is considered a delinquent property tax and subject to chapters 279, 280, and 281, in the
same manner as delinquent property taxes.
Sec. 84.
Minnesota Statutes 2012, section 471.24, is amended to read:
471.24 TOWNS, STATUTORY CITIES; JOINT MAINTENANCE OF
CEMETERY.
Where a statutory city or town owns and maintains an established cemetery or burial
ground, either within or without the municipal limits, the statutory city or town may, by
mutual agreement with contiguous statutory cities and towns, each having deleted text begin adeleted text end new text begin an estimated
new text end market value of not less than $2,000,000, join together in the maintenance of such public
cemetery or burial ground for the use of the inhabitants of each of such municipalities; and
each such municipality is hereby authorized, by action of its council or governing body,
to levy a tax or make an appropriation for the annual support and maintenance of such
cemetery or burial ground; provided, the amount thus appropriated by each municipality
shall not exceed a total of $10,000 in any one year.
Sec. 85.
Minnesota Statutes 2012, section 471.571, subdivision 1, is amended to read:
Subdivision 1.
Application.
This section applies to each city in which the net tax
capacity of real and personal property consists in part of iron ore or lands containing
taconite or semitaconite and in which the total deleted text begin taxabledeleted text end new text begin estimatednew text end market value of real
and personal property exceeds $2,500,000.
Sec. 86.
Minnesota Statutes 2012, section 471.571, subdivision 2, is amended to read:
Subd. 2.
Creation of fund, tax levy.
The governing body of the city may create a
permanent improvement and replacement fund to be maintained by an annual tax levy.
The governing body may levy a tax in excess of any charter limitation for the support of
the permanent improvement and replacement fund, but not exceeding the following:
(a) in cities having a population of not more than 500 inhabitants, the lesser of $20
per capita or 0.08059 percent of deleted text begin taxabledeleted text end new text begin estimatednew text end market value;
(b) in cities having a population of more than 500 and less than deleted text begin 2500deleted text end new text begin 2,500new text end , the
greater of $12.50 per capita or $10,000 but not exceeding 0.08059 percent of deleted text begin taxable
deleted text end new text begin estimatednew text end market value;
(c) in cities having a population of deleted text begin more than 2500deleted text end new text begin 2,500 or morenew text end inhabitants,
the greater of $10 per capita or $31,500 but not exceeding 0.08059 percent of deleted text begin taxable
deleted text end new text begin estimatednew text end market value.
Sec. 87.
Minnesota Statutes 2012, section 471.73, is amended to read:
471.73 ACCEPTANCE OF PROVISIONS.
In the case of any city within the class specified innew text begin sectionnew text end 471.72 having deleted text begin adeleted text end new text begin an
estimatednew text end market valuedeleted text begin , as defined in section 471.72,deleted text end in excess of $37,000,000; and in the
case of any statutory city within such class having deleted text begin adeleted text end new text begin an estimatednew text end market valuedeleted text begin , as defined
in section 471.72,deleted text end of less than $5,000,000; and in the case of any statutory city within such
class which is governed by Laws 1933, chapter 211, or Laws 1937, chapter 356; and in
the case of any statutory city within such class which is governed by Laws 1929, chapter
208, and has deleted text begin adeleted text end new text begin an estimatednew text end market value of less than $83,000,000; and in the case of
any school district within such class having deleted text begin adeleted text end new text begin an estimatednew text end market valuedeleted text begin , as defined in
section 471.72,deleted text end of more than $54,000,000; and in the case of all towns within said class;
sections 471.71 to 471.83 apply only if the governing body of the city or statutory city, the
board of the school district, or the town board of the town shall have adopted a resolution
determining to issue bonds under the provisions of sections 471.71 to 471.83 or to go
upon a cash basis in accordance with the provisions thereof.
Sec. 88.
Minnesota Statutes 2012, section 473.325, subdivision 2, is amended to read:
Subd. 2.
Chapter 475 applies; exceptions.
The Metropolitan Council shall sell and
issue the bonds in the manner provided in chapter 475, and shall have the same powers
and duties as a municipality issuing bonds under that law, except that the approval of a
majority of the electors shall not be required and the net debt limitations shall not apply.
The terms of each series of bonds shall be fixed so that the amount of principal and interest
on all outstanding and undischarged bonds, together with the bonds proposed to be issued,
due in any year shall not exceed 0.01209 percent of new text begin estimated new text end market value of all taxable
property in the metropolitan area as last finally equalized prior to a proposed issue. The
bonds shall be secured in accordance with section 475.61, subdivision 1, and any taxes
required for their payment shall be levied by the council, shall not affect the amount or rate
of taxes which may be levied by the council for other purposes, shall be spread against all
taxable property in the metropolitan area and shall not be subject to limitation as to rate or
amount. Any taxes certified by the council to the county auditors for collection shall be
reduced by the amount received by the council from the commissioner of management and
budget or the federal government for the purpose of paying the principal and interest on
bonds to which the levy relates. The council shall certify the fact and amount of all money
so received to the county auditors, and the auditors shall reduce the levies previously made
for the bonds in the manner and to the extent provided in section 475.61, subdivision 3.
Sec. 89.
Minnesota Statutes 2012, section 473.629, is amended to read:
473.629 VALUE OF PROPERTY FOR BOND ISSUES BY SCHOOL
DISTRICTS.
As to any lands deleted text begin to bedeleted text end detached from any school district under deleted text begin the provisions hereof
deleted text end new text begin section 473.625new text end , notwithstanding deleted text begin such prospectivedeleted text end new text begin thenew text end detachment, the new text begin estimated market
new text end value of deleted text begin suchdeleted text end new text begin the detachednew text end lands and deleted text begin the net tax capacity ofdeleted text end taxable properties deleted text begin nowdeleted text end located
deleted text begin therein or thereon shall be anddeleted text end new text begin on the lands on the date of the detachmentnew text end constitute
deleted text begin from and after the date of the enactment hereofdeleted text end a part of the new text begin estimated market new text end value of
properties deleted text begin upon the basis of which suchdeleted text end new text begin used to calculate the net debt limit of thenew text end school
district deleted text begin may issue its bonds,deleted text end new text begin .new text end The value of deleted text begin suchdeleted text end new text begin thenew text end lands deleted text begin for such purpose to bedeleted text end new text begin and other
taxable properties for purposes of the school district's net debt limit arenew text end 33-1/3 percent of
the new text begin estimated new text end market value thereof as determined and certified by deleted text begin saiddeleted text end new text begin thenew text end assessor to deleted text begin said
deleted text end new text begin thenew text end school district, and deleted text begin it shall be the duty of suchdeleted text end new text begin thenew text end assessor annually on or before the
tenth day of October deleted text begin from and after the passage hereof, to sodeleted text end new text begin of each year, shallnew text end determine
and certifynew text begin that valuenew text end ; provided, however, that the value of deleted text begin suchdeleted text end new text begin thenew text end detached lands and
deleted text begin suchdeleted text end taxable properties shall never exceed 20 percent of the new text begin estimated market new text end value of
all properties deleted text begin constituting and making up the basis aforesaiddeleted text end new text begin used to calculate the net
debt limit of the school districtnew text end .
Sec. 90.
Minnesota Statutes 2012, section 473.661, subdivision 3, is amended to read:
Subd. 3.
Levy limit.
In any budget certified by the commissioners under this section,
the amount included for operation and maintenance shall not exceed an amount which,
when extended against the property taxable therefor under section 473.621, subdivision 5,
will require a levy at a rate of 0.00806 percent of new text begin estimated new text end market value. Taxes levied by
the corporation shall not affect the amount or rate of taxes which may be levied by any other
local government unit within the metropolitan area under the provisions of any charter.
Sec. 91.
Minnesota Statutes 2012, section 473.667, subdivision 9, is amended to read:
Subd. 9.
Additional taxes.
Nothing herein shall prevent the commission from
levying a tax not to exceed 0.00121 percent of new text begin estimated new text end market value on taxable property
within its taxing jurisdiction, in addition to any levies found necessary for the debt
service fund authorized by section 473.671. Nothing herein shall prevent the levy and
appropriation for purposes of the commission of any other tax on property or on any
income, transaction, or privilege, when and if authorized by law. All collections of any
taxes so levied shall be included in the revenues appropriated for the purposes referred
to in this section, unless otherwise provided in the law authorizing the levies; but no
covenant as to the continuance or as to the rate and amount of any such levy shall be made
with the holders of the commission's bonds unless specifically authorized by law.
Sec. 92.
Minnesota Statutes 2012, section 473.671, is amended to read:
473.671 LIMIT OF TAX LEVY.
The taxes levied against the property of the metropolitan area in any one year shall
not exceed 0.00806 percent of deleted text begin taxabledeleted text end new text begin estimatednew text end market value, exclusive of taxes levied
to pay the principal or interest on any bonds or indebtedness of the city issued under
Laws 1943, chapter 500, and exclusive of any taxes levied to pay the share of the city for
payments on bonded indebtedness of the corporation provided for in Laws 1943, chapter
500. The levy of taxes authorized in Laws 1943, chapter 500, shall be in addition to the
maximum rate allowed to be levied to defray the cost of government under the provisions
of the charter of any city affected by Laws 1943, chapter 500.
Sec. 93.
Minnesota Statutes 2012, section 473.711, subdivision 2a, is amended to read:
Subd. 2a.
Tax levy.
(a) The commission may levy a tax on all taxable property in the
district as defined in section 473.702 to provide funds for the purposes of sections 473.701
to 473.716. The tax shall not exceed the property tax levy limitation determined in this
subdivision. A participating county may agree to levy an additional tax to be used by the
commission for the purposes of sections 473.701 to 473.716 but the sum of the county's and
commission's taxes may not exceed the county's proportionate share of the property tax levy
limitation determined under this subdivision based on the ratio of its total net tax capacity
to the total net tax capacity of the entire district as adjusted by section 270.12, subdivision
3. The auditor of each county in the district shall add the amount of the levy made by the
district to other taxes of the county for collection by the county treasurer with other taxes.
When collected, the county treasurer shall make settlement of the tax with the district in
the same manner as other taxes are distributed to political subdivisions. No county shall
levy any tax for mosquito, disease vectoring tick, and black gnat (Simuliidae) control
except under this section. The levy shall be in addition to other taxes authorized by law.
(b) The property tax levied by the Metropolitan Mosquito Control Commission shall
not exceed the product of (i) the commission's property tax levy limitation for the previous
year determined under this subdivision multiplied by (ii) an index for market valuation
changes equal to the total new text begin estimated new text end market deleted text begin valuationdeleted text end new text begin valuenew text end of all taxable property for the
current tax payable year located within the district plus any area that has been added to the
district since the previous year, divided by the total new text begin estimated new text end market deleted text begin valuationdeleted text end new text begin valuenew text end of all
taxable property located within the district for the previous taxes payable year.
deleted text begin
(c) For the purpose of determining the commission's property tax levy limitation
under this subdivision, "total market valuation" means the total market valuation of all
taxable property within the district without valuation adjustments for fiscal disparities
(chapter 473F), tax increment financing (sections 469.174 to 469.179), and high voltage
transmission lines (section 273.425).
deleted text end
Sec. 94.
Minnesota Statutes 2012, section 473F.02, subdivision 12, is amended to read:
Subd. 12.
new text begin Adjusted new text end market value.
"new text begin Adjusted new text end market value" of real and personal
property within a municipality means the deleted text begin assessor's estimateddeleted text end new text begin taxablenew text end market valuenew text begin ,
as defined in section 272.03,new text end of all real and personal property, including the value of
manufactured housing, within the municipalitynew text begin , adjusted for sales ratios in a manner
similar to the adjustments made to city and town net tax capacitiesnew text end deleted text begin . For purposes
of sections 473F.01 to 473F.13, the commissioner of revenue shall annually make
determinations and reports with respect to each municipality which are comparable to
those it makes for school districtsdeleted text end under section 127A.48, subdivisions 1 to 6deleted text begin , in the same
manner and at the same times as are prescribed by the subdivisions. The commissioner
of revenue shall annually determine, for each municipality, information comparable to
that required by section 475.53, subdivision 4, for school districts, as soon as practicable
after it becomes available. The commissioner of revenue shall then compute the equalized
market value of property within each municipality using the aggregate sales ratios from
the Department of Revenue's sales ratio studydeleted text end .
Sec. 95.
Minnesota Statutes 2012, section 473F.02, subdivision 14, is amended to read:
Subd. 14.
Fiscal capacity.
"Fiscal capacity" of a municipality means its deleted text begin valuation
deleted text end new text begin adjusted market valuenew text end , determined as of January 2 of any year, divided by its population,
determined as of a date in the same year.
Sec. 96.
Minnesota Statutes 2012, section 473F.02, subdivision 15, is amended to read:
Subd. 15.
Average fiscal capacity.
"Average fiscal capacity" of municipalities
means the sum of the deleted text begin valuationsdeleted text end new text begin adjusted market valuesnew text end of all municipalities, determined
as of January 2 of any year, divided by the sum of their populations, determined as of
a date in the same year.
Sec. 97.
Minnesota Statutes 2012, section 473F.02, subdivision 23, is amended to read:
Subd. 23.
Net tax capacity.
"Net tax capacity" means the new text begin taxable new text end market value of
real and personal property multiplied by its net tax capacity rates in section 273.13.
Sec. 98.
Minnesota Statutes 2012, section 473F.08, subdivision 10, is amended to read:
Subd. 10.
Adjustment of value deleted text begin or net tax capacitydeleted text end .
For the purpose of computing
deleted text begin the amount or rate of any salary, aid, tax, or debt authorized, required, or limited by any
provision of any law or charter, where such authorization, requirement, or limitation
is related in any manner to any value or valuation of taxable property within any
governmental unit, such value or net tax capacitydeleted text end new text begin fiscal capacity under section 473F.02,
subdivision 14, a municipality's taxable market valuenew text end shall be adjusted to reflect the
deleted text begin adjustmentsdeleted text end new text begin reductionsnew text end to net tax capacity effected by subdivision 2,new text begin clause (a),new text end provided
thatdeleted text begin : (1)deleted text end in determining the new text begin taxable new text end market value of commercial-industrial property
or any class thereof within a deleted text begin governmental unit for any purpose other than section
473F.07deleted text end new text begin municipalitynew text end , deleted text begin (a)deleted text end the reduction required by this subdivision shall be that amount
which bears the same proportion to the amount subtracted from the deleted text begin governmental unit's
deleted text end new text begin municipality'snew text end net tax capacity pursuant to subdivision 2, clause (a), as the new text begin taxable
new text end market value of commercial-industrial property, or such class thereof, located within the
deleted text begin governmental unitdeleted text end new text begin municipalitynew text end bears to the net tax capacity of commercial-industrial
property, or such class thereof, located within the deleted text begin governmental unit, and (b) the increase
required by this subdivision shall be that amount which bears the same proportion to
the amount added to the governmental unit's net tax capacity pursuant to subdivision 2,
clause (b), as the market value of commercial-industrial property, or such class thereof,
located within the governmental unit bears to the net tax capacity of commercial-industrial
property, or such class thereof, located within the governmental unit; and (2) in determining
the market value of real property within a municipality for purposes of section 473F.07,
the adjustment prescribed by clause (1)(a) hereof shall be made and that prescribed by
clause (1)(b) hereof shall not be madedeleted text end new text begin municipalitynew text end .new text begin No adjustment shall be made to
taxable market value for the increase in net tax capacity under subdivision 2, clause (b).
new text end
Sec. 99.
Minnesota Statutes 2012, section 475.521, subdivision 4, is amended to read:
Subd. 4.
Limitations on amount.
A municipality may not issue bonds under this
section if the maximum amount of principal and interest to become due in any year on
all the outstanding bonds issued under this section, including the bonds to be issued,
will equal or exceed 0.16 percent of the deleted text begin taxabledeleted text end new text begin estimatednew text end market value of property
in the municipality. Calculation of the limit must be made using the deleted text begin taxabledeleted text end new text begin estimated
new text end market value for the taxes payable year in which the obligations are issued and sold. In
the case of a municipality with a population of 2,500 or more, the bonds are subject to
the net debt limits under section 475.53. In the case of a shared facility in which more
than one municipality participates, upon compliance by each participating municipality
with the requirements of subdivision 2, the limitations in this subdivision and the net debt
represented by the bonds shall be allocated to each participating municipality in proportion
to its required financial contribution to the financing of the shared facility, as set forth in
the joint powers agreement relating to the shared facility. This section does not limit the
authority to issue bonds under any other special or general law.
Sec. 100.
Minnesota Statutes 2012, section 475.53, subdivision 1, is amended to read:
Subdivision 1.
Generally.
Except as otherwise provided in sections 475.51 to
475.74, no municipality, except a school district or a city of the first class, shall incur or be
subject to a net debt in excess of three percent of the new text begin estimated new text end market value of taxable
property in the municipality.
Sec. 101.
Minnesota Statutes 2012, section 475.53, subdivision 3, is amended to read:
Subd. 3.
Cities first class.
Unless its charter permits a greater net debt a city of
the first class may not incur a net debt in excess of two percent of the new text begin estimated new text end market
value of all taxable property therein. If the charter of the city permits a net debt of the city
in excess of two percent of its valuation, it may not incur a net debt in excess of 3-2/3
percent of the new text begin estimated new text end market value of the taxable property therein.
The county auditor, at the time of preparing the tax list of the city, shall compile a
statement setting forth the total net tax capacity and the total new text begin estimated new text end market value of
each class of taxable property in such city for such year.
Sec. 102.
Minnesota Statutes 2012, section 475.53, subdivision 4, is amended to read:
Subd. 4.
School districts.
Except as otherwise provided by law, no school district
shall be subject to a net debt in excess of 15 percent of the deleted text begin actualdeleted text end new text begin estimatednew text end market value of
all taxable property situated within its corporate limits, as computed in accordance with this
subdivision. The county auditor of each county containing taxable real or personal property
situated within any school district shall certify to the district upon request the new text begin estimated
new text end market value of all such property. Whenever the commissioner of revenue, in accordance
with section 127A.48, subdivisions 1 to 6, has determined that the deleted text begin net tax capacity of any
district furnished by county auditors is not based upon thedeleted text end new text begin adjustednew text end market value of taxable
property in the districtnew text begin exceeds the estimated market value of property within the districtnew text end ,
the commissioner of revenue shall certify to the district upon request the ratio most recently
ascertained to exist between deleted text begin suchdeleted text end new text begin the estimated marketnew text end value and the deleted text begin actualdeleted text end new text begin adjusted
new text end market value of property within the districtdeleted text begin .deleted text end new text begin , andnew text end the deleted text begin actual market value of property
within a district, on which itsdeleted text end debt limit under this subdivision deleted text begin isdeleted text end new text begin will benew text end baseddeleted text begin , is (a) the
value certified by the county auditors, or (b) thisdeleted text end new text begin on the estimated marketnew text end value divided by
the ratio certified by the commissioner of revenuedeleted text begin , whichever results in a higher valuedeleted text end .
Sec. 103.
Minnesota Statutes 2012, section 475.58, subdivision 2, is amended to read:
Subd. 2.
Funding, refunding.
Any county, city, town, or school district whose
outstanding gross debt, including all items referred to in section 475.51, subdivision
4, exceed in amount 1.62 percent of its new text begin estimated new text end market value may issue bonds under
this subdivision for the purpose of funding or refunding such indebtedness or any part
thereof. A list of the items of indebtedness to be funded or refunded shall be made by the
recording officer and treasurer and filed in the office of the recording officer. The initial
resolution of the governing body shall refer to this subdivision as authority for the issue,
state the amount of bonds to be issued and refer to the list of indebtedness to be funded or
refunded. This resolution shall be published once each week for two successive weeks
in a legal newspaper published in the municipality or if there be no such newspaper, in
a legal newspaper published in the county seat. Such bonds may be issued without the
submission of the question of their issue to the electors unless within ten days after the
second publication of the resolution a petition requesting such election signed by ten or
more voters who are taxpayers of the municipality, shall be filed with the recording officer.
In event such petition is filed, no bonds shall be issued hereunder unless authorized by a
majority of the electors voting on the question.
Sec. 104.
Minnesota Statutes 2012, section 475.73, subdivision 1, is amended to read:
Subdivision 1.
May purchase these bonds; conditions.
Obligations sold under the
provisions of section 475.60 may be purchased by the State Board of Investment if the
obligations meet the requirements of section 11A.24, subdivision 2, upon the approval of
the attorney general as to form and execution of the application therefor, and under rules
as the board may specify, and the state board shall have authority to purchase the same
to an amount not exceeding 3.63 percent of the new text begin estimated new text end market value of the taxable
property of the municipality, according to the last preceding assessment. The obligations
shall not run for a shorter period than one year, nor for a longer period than 30 years and
shall bear interest at a rate to be fixed by the state board but not less than two percent per
annum. Forthwith upon the delivery to the state of Minnesota of any obligations issued by
virtue thereof, the commissioner of management and budget shall certify to the respective
auditors of the various counties wherein are situated the municipalities issuing the same,
the number, denomination, amount, rate of interest and date of maturity of each obligation.
Sec. 105.
Minnesota Statutes 2012, section 477A.011, subdivision 20, is amended to
read:
Subd. 20.
City net tax capacity.
"City net tax capacity" means deleted text begin (1) the net tax
capacity computed using the net tax capacity rates in section 273.13 for taxes payable
in the year of the aid distribution, and the market values, after the exclusion in section
273.13, subdivision 35, for taxes payable in the year prior to the aid distribution plus (2)
a city's fiscal disparities distribution tax capacity under section 276A.06, subdivision 2,
paragraph (b), or 473F.08, subdivision 2, paragraph (b), for taxes payable in the year prior
to that for which aids are being calculated. The market value utilized in computing city
net tax capacity shall be reduced by the sum of (1) a city's market value of commercial
industrial property as defined in section 276A.01, subdivision 3, or 473F.02, subdivision 3,
multiplied by the ratio determined pursuant to section 276A.06, subdivision 2, paragraph
(a), or 473F.08, subdivision 2, paragraph (a), (2) the market value of the captured value
of tax increment financing districts as defined in section 469.177, subdivision 2, and (3)
the market value of transmission lines deducted from a city's total net tax capacity under
section 273.425. The city net tax capacity will be computed using equalized market values
deleted text end new text begin the city's adjusted net tax capacity under section 273.1325new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 106.
Minnesota Statutes 2012, section 477A.011, subdivision 32, is amended to
read:
Subd. 32.
Commercial industrial percentage.
"Commercial industrial percentage"
for a city is 100 times the sum of the estimated market values of all real property in the
city classified as class 3 under section 273.13, subdivision 24, excluding public utility
property, to the total new text begin estimated new text end market value of all taxable real and personal property in
the city. The new text begin estimated new text end market values are the amounts computed before any adjustments
for fiscal disparities under section 276A.06 or 473F.08. The new text begin estimated new text end market values
used for this subdivision are not equalized.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in 2014 and thereafter.
new text end
Sec. 107.
Minnesota Statutes 2012, section 477A.0124, subdivision 2, is amended to
read:
Subd. 2.
Definitions.
(a) For the purposes of this section, the following terms
have the meanings given them.
(b) "County program aid" means the sum of "county need aid," "county tax base
equalization aid," and "county transition aid."
(c) "Age-adjusted population" means a county's population multiplied by the county
age index.
(d) "County age index" means the percentage of the population over age 65 within
the county divided by the percentage of the population over age 65 within the state, except
that the age index for any county may not be greater than 1.8 nor less than 0.8.
(e) "Population over age 65" means the population over age 65 established as of
July 15 in an aid calculation year by the most recent federal census, by a special census
conducted under contract with the United States Bureau of the Census, by a population
estimate made by the Metropolitan Council, or by a population estimate of the state
demographer made pursuant to section 4A.02, whichever is the most recent as to the stated
date of the count or estimate for the preceding calendar year and which has been certified
to the commissioner of revenue on or before July 15 of the aid calculation year. A revision
to an estimate or count is effective for these purposes only if certified to the commissioner
on or before July 15 of the aid calculation year. Clerical errors in the certification or use of
estimates and counts established as of July 15 in the aid calculation year are subject to
correction within the time periods allowed under section 477A.014.
(f) "Part I crimes" means the three-year average annual number of Part I crimes
reported for each county by the Department of Public Safety for the most recent years
available. By July 1 of each year, the commissioner of public safety shall certify to the
commissioner of revenue the number of Part I crimes reported for each county for the
three most recent calendar years available.
(g) "Households receiving food stamps" means the average monthly number of
households receiving food stamps for the three most recent years for which data is
available. By July 1 of each year, the commissioner of human services must certify to the
commissioner of revenue the average monthly number of households in the state and in
each county that receive food stamps, for the three most recent calendar years available.
(h) "County net tax capacity" means the deleted text begin net tax capacity of the county, computed
analogously to city net tax capacity under section 477A.011, subdivision 20deleted text end new text begin county's
adjusted net tax capacity under section 273.1325new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 108.
Minnesota Statutes 2012, section 641.23, is amended to read:
641.23 FUNDS; HOW PROVIDED.
Before any contract is made for the erection of a county jail, sheriff's residence, or
both, the county board shall either levy a sufficient tax to provide the necessary funds, or
issue county bonds therefor in accordance with the provisions of chapter 475, provided
that no election is required if the amount of all bonds issued for this purpose and interest
on them which are due and payable in any year does not exceed an amount equal to
0.09671 percent of new text begin estimated new text end market value of taxable property within the county, as last
determined before the bonds are issued.
Sec. 109.
Minnesota Statutes 2012, section 641.24, is amended to read:
641.24 LEASING.
The county may, by resolution of the county board, enter into a lease agreement with
any statutory or home rule charter city situated within the county, or a county housing and
redevelopment authority established pursuant to chapter 469 or any special law whereby
the city or county housing and redevelopment authority will construct a jail or other law
enforcement facilities for the county sheriff, deputy sheriffs, and other employees of the
sheriff and other law enforcement agencies, in accordance with plans prepared by or at
the request of the county board and, when required, approved by the commissioner of
corrections and will finance it by the issuance of revenue bonds, and the county may lease
the site and improvements for a term and upon rentals sufficient to produce revenue for the
prompt payment of the bonds and all interest accruing thereon and, upon completion of
payment, will acquire title thereto. The real and personal property acquired for the jail
shall constitute a project and the lease agreement shall constitute a revenue agreement
as contemplated in chapter 469, and all proceedings shall be taken by the city or county
housing and redevelopment authority and the county in the manner and with the force and
effect provided in chapter 469; provided that:
(1) no tax shall be imposed upon or in lieu of a tax upon the property;
(2) the approval of the project by the commissioner of commerce shall not be required;
(3) the Department of Corrections shall be furnished and shall record such
information concerning each project as it may prescribe;
(4) the rentals required to be paid under the lease agreement shall not exceed in any
year one-tenth of one percent of the new text begin estimated new text end market value of property within the county,
as last finally equalized before the execution of the agreement;
(5) the county board shall provide for the payment of all rentals due during the term
of the lease, in the manner required in section 641.264, subdivision 2;
(6) no mortgage on the property shall be granted for the security of the bonds, but
compliance with clause (5) hereof may be enforced as a nondiscretionary duty of the
county board; and
(7) the county board may sublease any part of the jail property for purposes consistent
with the maintenance and operation of a county jail or other law enforcement facility.
Sec. 110.
Minnesota Statutes 2012, section 645.44, is amended by adding a subdivision
to read:
new text begin Subd. 20. new text end
new text begin Estimated market value. new text end
new text begin
When used in determining or calculating a
limit on taxation, spending, state aid amounts, or debt, bond, certificate of indebtedness, or
capital note issuance by or for a local government unit, "estimated market value" has the
meaning given in section 273.032.
new text end
Sec. 111. new text begin REVISOR'S INSTRUCTION.
new text end
new text begin
The revisor of statutes shall recodify Minnesota Statutes, section 127.48,
subdivisions 1 to 6, as section 273.1325, subdivisions 1 to 6, and change all
cross-references to the affected subdivisions accordingly.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 112. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2012, sections 276A.01, subdivision 11; 473F.02, subdivision
13; and 477A.011, subdivision 21,
new text end
new text begin
are repealed.
new text end
Sec. 113. new text begin EFFECTIVE DATE.
new text end
new text begin
Unless otherwise specifically provided, this article is effective the day following
final enactment for purposes of limits on net debt, the issuance of bonds, certificates of
indebtedness, and capital notes and is effective beginning for taxes payable in 2014 for
all other purposes.
new text end
ARTICLE 15
DEPARTMENT OF REVENUE INCOME AND FRANCHISE
TAXES; ESTATE TAXES
Section 1.
Minnesota Statutes 2012, section 289A.10, is amended by adding a
subdivision to read:
new text begin Subd. 1a. new text end
new text begin Recapture tax return required. new text end
new text begin
If a disposition or cessation as provided
by section 291.03, subdivision 11, paragraph (a), has occurred, the qualified heir, as
defined under section 291.03, subdivision 8, paragraph (c), or personal representative of
the decedent's estate must submit a recapture tax return to the commissioner.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for estates of decedents dying after
June 30, 2011.
new text end
Sec. 2.
Minnesota Statutes 2012, section 289A.12, subdivision 14, is amended to read:
Subd. 14.
Regulated investment companies; reporting exempt-interest
dividends.
(a) A regulated investment company paying $10 or more in exempt-interest
dividends to an individual who is a resident of Minnesota must make a return indicating
the amount of the exempt-interest dividends, the name, address, and Social Security
number of the recipient, and any other information that the commissioner specifies. The
return must be provided to the shareholder by February 15 of the year following the year
of the payment. The return provided to the shareholder must include a clear statement,
in the form prescribed by the commissioner, that the exempt-interest dividends must be
included in the computation of Minnesota taxable income. By June 1 of each year, the
regulated investment company must file a copy of the return with the commissioner.
deleted text begin
(b) This subdivision applies to regulated investment companies required to register
under chapter 80A.
deleted text end
deleted text begin (c)deleted text end new text begin (b)new text end For purposes of this subdivision, the following definitions apply.
(1) "Exempt-interest dividends" mean exempt-interest dividends as defined in
section 852(b)(5) of the Internal Revenue Code, but does not include the portion of
exempt-interest dividends that are not required to be added to federal taxable income
under section 290.01, subdivision 19a, clause (1)(ii).
(2) "Regulated investment company" means regulated investment company as
defined in section 851(a) of the Internal Revenue Code or a fund of the regulated
investment company as defined in section 851(g) of the Internal Revenue Code.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 3.
Minnesota Statutes 2012, section 289A.12, is amended by adding a subdivision
to read:
new text begin Subd. 18. new text end
new text begin Returns by qualified heirs. new text end
new text begin
A qualified heir, as defined in section 291.03,
subdivision 8, paragraph (c), must file two returns with the commissioner attesting that
no disposition or cessation as provided by section 291.03, subdivision 11, paragraph
(a), occurred. The first return must be filed no earlier than 24 months and no later than
26 months after the decedent's death. The second return must be filed no earlier than 36
months and no later than 39 months after the decedent's death.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for returns required to be filed after
December 31, 2013.
new text end
Sec. 4.
Minnesota Statutes 2012, section 289A.18, is amended by adding a subdivision
to read:
new text begin Subd. 3a. new text end
new text begin Recapture tax return. new text end
new text begin
A recapture tax return must be filed with the
commissioner within six months after the date of the disposition or cessation as provided
by section 291.03, subdivision 11, paragraph (a).
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for estates of decedents dying after
June 30, 2011.
new text end
Sec. 5.
Minnesota Statutes 2012, section 289A.20, subdivision 3, is amended to read:
Subd. 3.
Estate tax.
Taxes imposed by deleted text begin chapter 291deleted text end new text begin section 291.03, subdivision 1,
new text end take effect at and upon the death of the person whose estate is subject to taxation and are
due and payable on or before the expiration of nine months from that death.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for estates of decedents dying after
June 30, 2011.
new text end
Sec. 6.
Minnesota Statutes 2012, section 289A.20, is amended by adding a subdivision
to read:
new text begin Subd. 3a. new text end
new text begin Recapture tax. new text end
new text begin
The additional estate tax imposed by section 291.03,
subdivision 11, paragraph (b), is due and payable on or before the expiration of the date
provided by section 291.03, subdivision 11, paragraph (c).
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for estates of decedents dying after
June 30, 2011.
new text end
Sec. 7.
Minnesota Statutes 2012, section 289A.26, subdivision 3, is amended to read:
Subd. 3.
Short taxable year.
(a) new text begin A corporation or new text end an entity with a short taxable year
of less than 12 months, but at least four months, must pay estimated tax in equal installments
on or before the 15th day of the third, sixth, ninth, and final month of the short taxable
year, to the extent applicable based on the number of months in the short taxable year.
(b) new text begin A corporation or new text end an entity is not required to make estimated tax payments for a
short taxable year unless its tax liability before the first day of the last month of the taxable
year can reasonably be expected to exceed $500.
(c) No payment is required for a short taxable year of less than four months.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 8.
Minnesota Statutes 2012, section 289A.26, subdivision 4, is amended to read:
Subd. 4.
Underpayment of estimated tax.
If there is an underpayment of estimated
tax by a corporationnew text begin or an entitynew text end , there shall be added to the tax for the taxable year an
amount determined at the rate in section 270C.40 on the amount of the underpayment,
determined under subdivision 5, for the period of the underpayment determined under
subdivision 6. This subdivision does not apply in the first taxable year that a corporation is
subject to the tax imposed under section 290.02new text begin or an entity is subject to the tax imposed
under section 290.05, subdivision 3new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 9.
Minnesota Statutes 2012, section 289A.26, subdivision 7, is amended to read:
Subd. 7.
Required installments.
(a) Except as otherwise provided in this
subdivision, the amount of a required installment is 25 percent of the required annual
payment.
(b) Except as otherwise provided in this subdivision, the term "required annual
payment" means the lesser of:
(1) 100 percent of the tax shown on the return for the taxable year, or, if no return is
filed, 100 percent of the tax for that year; or
(2) 100 percent of the tax shown on the return of thenew text begin corporation ornew text end entity for the
preceding taxable year provided the return was for a full 12-month period, showed a
liability, and was filed by thenew text begin corporation ornew text end entity.
(c) Except for determining the first required installment for any taxable year,
paragraph (b), clause (2), does not apply in the case of a large corporation. The term
"large corporation" means a corporation or any predecessor corporation that had taxable
net income of $1,000,000 or more for any taxable year during the testing period. The
term "testing period" means the three taxable years immediately preceding the taxable
year involved. A reduction allowed to a large corporation for the first installment that is
allowed by applying paragraph (b), clause (2), must be recaptured by increasing the next
required installment by the amount of the reduction.
(d) In the case of a required installment, if the corporationnew text begin or entitynew text end establishes that
the annualized income installment is less than the amount determined in paragraph (a), the
amount of the required installment is the annualized income installment and the recapture
of previous quarters' reductions allowed by this paragraph must be recovered by increasing
later required installments to the extent the reductions have not previously been recovered.
(e) The "annualized income installment" is the excess, if any, of:
(1) an amount equal to the applicable percentage of the tax for the taxable year
computed by placing on an annualized basis the taxable income:
(i) for the first two months of the taxable year, in the case of the first required
installment;
(ii) for the first two months or for the first five months of the taxable year, in the
case of the second required installment;
(iii) for the first six months or for the first eight months of the taxable year, in the
case of the third required installment; and
(iv) for the first nine months or for the first 11 months of the taxable year, in the
case of the fourth required installment, over
(2) the aggregate amount of any prior required installments for the taxable year.
(3) For the purpose of this paragraph, the annualized income shall be computed
by placing on an annualized basis the taxable income for the year up to the end of the
month preceding the due date for the quarterly payment multiplied by 12 and dividing
the resulting amount by the number of months in the taxable year (2, 5, 6, 8, 9, or 11 as
the case may be) referred to in clause (1).
(4) The "applicable percentage" used in clause (1) is:
| For the following required installments: |
The applicable percentage is: |
||||
| 1st |
25 |
||||
| 2nd |
50 |
||||
| 3rd |
75 |
||||
| 4th |
100 |
||||
(f)(1) If this paragraph applies, the amount determined for any installment must
be determined in the following manner:
(i) take the taxable income for the months during the taxable year preceding the
filing month;
(ii) divide that amount by the base period percentage for the months during the
taxable year preceding the filing month;
(iii) determine the tax on the amount determined under item (ii); and
(iv) multiply the tax computed under item (iii) by the base period percentage for the
filing month and the months during the taxable year preceding the filing month.
(2) For purposes of this paragraph:
(i) the "base period percentage" for a period of months is the average percent that the
taxable income for the corresponding months in each of the three preceding taxable years
bears to the taxable income for the three preceding taxable years;
(ii) the term "filing month" means the month in which the installment is required
to be paid;
(iii) this paragraph only applies if the base period percentage for any six consecutive
months of the taxable year equals or exceeds 70 percent; and
(iv) the commissioner may provide by rule for the determination of the base period
percentage in the case of reorganizations, new corporationsnew text begin or entitiesnew text end , and other similar
circumstances.
(3) In the case of a required installment determined under this paragraph, if the
new text begin corporation ornew text end entity determines that the installment is less than the amount determined in
paragraph (a), the amount of the required installment is the amount determined under this
paragraph and the recapture of previous quarters' reductions allowed by this paragraph
must be recovered by increasing later required installments to the extent the reductions
have not previously been recovered.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 10.
Minnesota Statutes 2012, section 289A.26, subdivision 9, is amended to read:
Subd. 9.
Failure to file an estimate.
In the case ofnew text begin a corporation ornew text end an entity
that fails to file an estimated tax for a taxable year when one is required, the period of
the underpayment runs from the four installment dates in subdivision 2 or 3, whichever
applies, to the earlier of the periods in subdivision 6, clauses (1) and (2).
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 11.
Minnesota Statutes 2012, section 290.9705, subdivision 1, is amended to read:
Subdivision 1.
Withholding of payments to out-of-state contractors.
(a) In this
section, "person" means a person, corporation, or cooperative, the state of Minnesota and
its political subdivisions, and a city, county, and school district in Minnesota.
(b) A person who in the regular course of business is hiring, contracting, or having a
contract with a nonresident person or foreign corporationdeleted text begin , as defined in Minnesota Statutes
1986, section 290.01, subdivision 5,deleted text end to perform construction work in Minnesota, shall
deduct and withhold eight percent of deleted text begin cumulative calendar yeardeleted text end payments new text begin made new text end to the
contractor deleted text begin which exceeddeleted text end new text begin if the value of the contract exceedsnew text end $50,000.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for payments made to contractors
after December 31, 2013.
new text end
ARTICLE 16
DEPARTMENT OF REVENUE SALES AND USE TAXES; SPECIAL TAXES
Section 1.
Minnesota Statutes 2012, section 287.20, is amended by adding a
subdivision to read:
new text begin Subd. 11. new text end
new text begin Partition. new text end
new text begin
"Partition" means the division by conveyance of real property
that is held jointly or in common by two or more persons into individually owned interests.
If one of the co-owners gives consideration for all or a part of the individually owned
interest conveyed to them, that portion of the conveyance is not a part of the partition.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2012, section 289A.20, subdivision 4, is amended to read:
Subd. 4.
Sales and use tax.
(a) The taxes imposed by chapter 297A are due and
payable to the commissioner monthly on or before the 20th day of the month following
the month in which the taxable event occurred, or following another reporting period
as the commissioner prescribes or as allowed under section 289A.18, subdivision 4,
paragraph (f) or (g), except thatdeleted text begin :
deleted text end
deleted text begin (1)deleted text end use taxes due on an annual use tax return as provided under section 289A.11,
subdivision 1, are payable by April 15 following the close of the calendar yeardeleted text begin ; anddeleted text end new text begin .
new text end
deleted text begin
(2) except as provided in paragraph (f), for a vendor having a liability of $120,000
or more during a fiscal year ending June 30, 2009, and fiscal years thereafter, the taxes
imposed by chapter 297A, except as provided in paragraph (b), are due and payable to the
commissioner monthly in the following manner:
deleted text end
deleted text begin
(i) On or before the 14th day of the month following the month in which the taxable
event occurred, the vendor must remit to the commissioner 90 percent of the estimated
liability for the month in which the taxable event occurred.
deleted text end
deleted text begin
(ii) On or before the 20th day of the month in which the taxable event occurs, the
vendor must remit to the commissioner a prepayment for the month in which the taxable
event occurs equal to 67 percent of the liability for the previous month.
deleted text end
deleted text begin
(iii) On or before the 20th day of the month following the month in which the taxable
event occurred, the vendor must pay any additional amount of tax not previously remitted
under either item (i) or (ii ) or, if the payment made under item (i) or (ii) was greater than
the vendor's liability for the month in which the taxable event occurred, the vendor may
take a credit against the next month's liability in a manner prescribed by the commissioner.
deleted text end
deleted text begin
(iv) Once the vendor first pays under either item (i) or (ii), the vendor is required to
continue to make payments in the same manner, as long as the vendor continues having a
liability of $120,000 or more during the most recent fiscal year ending June 30.
deleted text end
deleted text begin
(v) Notwithstanding items (i), (ii), and (iv), if a vendor fails to make the required
payment in the first month that the vendor is required to make a payment under either item
(i) or (ii), then the vendor is deemed to have elected to pay under item (ii) and must make
subsequent monthly payments in the manner provided in item (ii).
deleted text end
deleted text begin
(vi) For vendors making an accelerated payment under item (ii), for the first month
that the vendor is required to make the accelerated payment, on the 20th of that month, the
vendor will pay 100 percent of the liability for the previous month and a prepayment for
the first month equal to 67 percent of the liability for the previous month.
deleted text end
(b) deleted text begin Notwithstanding paragraph (a),deleted text end A vendor having a liability of $120,000 or more
during a fiscal year ending June 30 must remit the June liability for the next year in the
following manner:
(1) Two business days before June 30 of the year, the vendor must remit 90 percent
of the estimated June liability to the commissioner.
(2) On or before August 20 of the year, the vendor must pay any additional amount
of tax not remitted in June.
(c) A vendor having a liability of:
(1) $10,000 or more, but less than $120,000 during a fiscal year ending June 30,
2009, and fiscal years thereafter, must remit by electronic means all liabilities on returns
due for periods beginning in the subsequent calendar year on or before the 20th day of
the month following the month in which the taxable event occurred, or on or before the
20th day of the month following the month in which the sale is reported under section
289A.18, subdivision 4; or
(2) $120,000 or more, during a fiscal year ending June 30, 2009, and fiscal years
thereafter, must remit by electronic means all liabilities in the manner provided in
paragraph (a)deleted text begin , clause (2),deleted text end on returns due for periods beginning in the subsequent calendar
year, except for 90 percent of the estimated June liability, which is due two business days
before June 30. The remaining amount of the June liability is due on August 20.
(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's
religious beliefs from paying electronically shall be allowed to remit the payment by mail.
The filer must notify the commissioner of revenue of the intent to pay by mail before
doing so on a form prescribed by the commissioner. No extra fee may be charged to a
person making payment by mail under this paragraph. The payment must be postmarked
at least two business days before the due date for making the payment in order to be
considered paid on a timely basis.
deleted text begin
(e) Whenever the liability is $120,000 or more separately for: (1) the tax imposed
under chapter 297A; (2) a fee that is to be reported on the same return as and paid with the
chapter 297A taxes; or (3) any other tax that is to be reported on the same return as and
paid with the chapter 297A taxes, then the payment of all the liabilities on the return must
be accelerated as provided in this subdivision.
deleted text end
deleted text begin
(f) At the start of the first calendar quarter at least 90 days after the cash flow account
established in section 16A.152, subdivision 1, and the budget reserve account established in
section 16A.152, subdivision 1a, reach the amounts listed in section 16A.152, subdivision
2, paragraph (a), the remittance of the accelerated payments required under paragraph (a),
clause (2), must be suspended. The commissioner of management and budget shall notify
the commissioner of revenue when the accounts have reached the required amounts.
Beginning with the suspension of paragraph (a), clause (2), for a vendor with a liability of
$120,000 or more during a fiscal year ending June 30, 2009, and fiscal years thereafter, the
taxes imposed by chapter 297A are due and payable to the commissioner on the 20th day
of the month following the month in which the taxable event occurred. Payments of tax
liabilities for taxable events occurring in June under paragraph (b) are not changed.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 3.
Minnesota Statutes 2012, section 297A.665, is amended to read:
297A.665 PRESUMPTION OF TAX; BURDEN OF PROOF.
(a) For the purpose of the proper administration of this chapter and to prevent
evasion of the tax, until the contrary is established, it is presumed that:
(1) all gross receipts are subject to the tax; and
(2) all retail sales for delivery in Minnesota are for storage, use, or other consumption
in Minnesota.
(b) The burden of proving that a sale is not a taxable retail sale is on the seller.
However, a seller is relieved of liability if:
(1) the seller obtains a fully completed exemption certificate or all the relevant
information required by section 297A.72, subdivision 2, at the time of the sale or within
90 days after the date of the sale; or
(2) if the seller has not obtained a fully completed exemption certificate or all the
relevant information required by section 297A.72, subdivision 2, within the time provided
in clause (1), within 120 days after a request for substantiation by the commissioner,
the seller either:
(i) obtains deleted text begin in good faithdeleted text end new text begin from the purchasernew text end a fully completed exemption certificate
or all the relevant information required by section 297A.72, subdivision 2, deleted text begin from the
purchaserdeleted text end new text begin taken in good faith which means that the exemption certificate claims an
exemption that (A) was statutorily available on the date of the transaction, (B) could be
applicable to the item for which the exemption is claimed, and (C) is reasonable for the
purchaser's type of businessnew text end ; or
(ii) proves by other means that the transaction was not subject to tax.
(c) Notwithstanding paragraph (b), relief from liability does not apply to a seller who:
(1) fraudulently fails to collect the tax; or
(2) solicits purchasers to participate in the unlawful claim of an exemption.
new text begin
(d) Notwithstanding paragraph (b), relief from liability does not apply to a seller
who has obtained information under paragraph (b), clause (2), if through the audit process
the commissioner finds the following:
new text end
new text begin
(1) that at the time the information was provided the seller had knowledge or had
reason to know that the information relating to the exemption was materially false; or
new text end
new text begin
(2) that the seller knowingly participated in activity intended to purposefully evade
the sales tax due on the transaction.
new text end
deleted text begin (d)deleted text end new text begin (e)new text end A certified service provider, as defined in section 297A.995, subdivision 2, is
relieved of liability under this section to the extent a seller who is its client is relieved of
liability.
deleted text begin (e)deleted text end new text begin (f)new text end A purchaser of tangible personal property or any items listed in section 297A.63
that are shipped or brought to Minnesota by the purchaser has the burden of proving that the
property was not purchased from a retailer for storage, use, or consumption in Minnesota.
deleted text begin (f)deleted text end new text begin (g)new text end If a seller claims that certain sales are exempt and does not provide the
certificate, information, or proof required by paragraph (b), clause (2), within 120 days
after the date of the commissioner's request for substantiation, then the exemptions
claimed by the seller that required substantiation are disallowed.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively from January 1, 2013.
new text end
Sec. 4.
Minnesota Statutes 2012, section 297F.01, subdivision 23, is amended to read:
Subd. 23.
Wholesale sales price.
"Wholesale sales price" means the price deleted text begin stated
on the price list in effect at the time of sale for which a manufacturer or person sells a
tobacco product to a distributor, exclusive of any discount, promotional offer, or other
reduction. For purposes of this subdivision, "price list" means the manufacturer's price at
which tobacco products are made available for sale to all distributors on an ongoing basis
deleted text end new text begin at which a distributor purchases a tobacco product. Wholesale sales price includes the
applicable federal excise tax, freight charges, or packaging costs, regardless of whether
they were included in the purchase pricenew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for purchases made after December
31, 2013.
new text end
Sec. 5.
Minnesota Statutes 2012, section 297G.04, subdivision 2, is amended to read:
Subd. 2.
Tax credit.
A qualified brewer producing fermented malt beverages
is entitled to a tax credit of $4.60 per barrel on 25,000 barrels sold in any fiscal year
beginning July 1, regardless of the alcohol content of the product. Qualified brewers may
take the credit on the 18th day of each month, but the total credit allowed may not exceed
in any fiscal year the lesser of:
(1) the liability for tax; or
(2) $115,000.
For purposes of this subdivision, a "qualified brewer" means a brewer, whether
or not located in this state, manufacturing less than 100,000 barrels of fermented malt
beverages in the calendar year immediately preceding the deleted text begin calendardeleted text end new text begin fiscalnew text end year for which
the credit under this subdivision is claimed. In determining the number of barrels, all
brands or labels of a brewer must be combined. All facilities for the manufacture of
fermented malt beverages owned or controlled by the same person, corporation, or other
entity must be treated as a single brewer.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 6.
Minnesota Statutes 2012, section 297I.05, subdivision 7, is amended to read:
Subd. 7.
Nonadmitted insurance premium tax.
(a) A tax is imposed on surplus
lines brokers. The rate of tax is equal to three percent of the gross premiums less return
premiums paid by an insured whose home state is Minnesota.
(b) A tax is imposed on deleted text begin persons, firms, or corporationsdeleted text end new text begin a person, firm, corporation,
or purchasing group as defined in section 60E.02, or any member of a purchasing group,
new text end that deleted text begin procuredeleted text end new text begin procuresnew text end insurance directly from a nonadmitted insurer. The rate of tax is
equal to two percent of the gross premiums less return premiums paid by an insured
whose home state is Minnesota.
(c) No state other than the home state of an insured may require any premium tax
payment for nonadmitted insurance. When Minnesota is the home state of the insured,
as provided under section 297I.01, 100 percent of the gross premiums are taxable in
Minnesota with no allocation of the tax to other states.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for premiums received after
December 31, 2013.
new text end
Sec. 7.
Minnesota Statutes 2012, section 297I.05, subdivision 11, is amended to read:
Subd. 11.
Retaliatory provisions.
(a) If any other state or country imposes any
taxes, fines, deposits, penalties, licenses, or fees upon any insurance companies of this
state and their agents doing business in another state or country that are in addition to or in
excess of those imposed by the laws of this state upon foreign insurance companies and
their agents doing business in this state, the same taxes, fines, deposits, penalties, licenses,
and fees are imposed upon every similar insurance company of that state or country and
their agents doing or applying to do business in this state.
(b) If any conditions precedent to the right to do business in any other state or
country are imposed by the laws of that state or country, beyond those imposed upon
foreign companies by the laws of this state, the same conditions precedent are imposed
upon every similar insurance company of that state or country and their agents doing or
applying to do business in that state.
(c) For purposes of this subdivision, "taxes, fines, deposits, penalties, licenses, or
fees" means an amount of money that is deposited in the general revenue fund of the state
or other similar fund in another state or country and is not dedicated to a special purpose
or use or money deposited in the general revenue fund of the state or other similar fund in
another state or country and appropriated to the commissioner of commerce or insurance
for the operation of the Department of Commerce or other similar agency with jurisdiction
over insurance. Taxes, fines, deposits, penalties, licenses, or fees do not include:
(1) special purpose obligations or assessments imposed in connection with particular
kinds of insurance, including but not limited to assessments imposed in connection with
residual market mechanisms; or
(2) assessments made by the insurance guaranty association, life and health
guarantee association, or similar association.
(d) This subdivision applies to taxes imposed under subdivisions 1deleted text begin ,deleted text end new text begin ;new text end 3deleted text begin ,deleted text end new text begin ;new text end 4deleted text begin , 6, anddeleted text end new text begin ;new text end 12,
paragraph (a), clauses (1) and (2)new text begin ; and 14new text end .
(e) This subdivision does not apply to insurance companies organized or domiciled
in a state or country, the laws of which do not impose retaliatory taxes, fines, deposits,
penalties, licenses, or fees or which grant, on a reciprocal basis, exemptions from
retaliatory taxes, fines, deposits, penalties, licenses, or fees to insurance companies
domiciled in this state.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 8.
Minnesota Statutes 2012, section 297I.05, subdivision 12, is amended to read:
Subd. 12.
Other entities.
(a) A tax is imposed equal to two percent of:
(1) gross premiums less return premiums written for risks resident or located in
Minnesota by a risk retention group;
(2) gross premiums less return premiums received by an attorney in fact acting
in accordance with chapter 71A;
(3) gross premiums less return premiums received pursuant to assigned risk policies
and contracts of coverage under chapter 79;new text begin and
new text end
(4) the direct funded premium received by the reinsurance association under section
79.34 from self-insurers approved under section 176.181 and political subdivisions that
self-insuredeleted text begin ; anddeleted text end new text begin .
new text end
deleted text begin
(5) gross premiums less return premiums paid to an insurer other than a licensed
insurance company or a surplus lines broker for coverage of risks resident or located in
Minnesota by a purchasing group or any members of the purchasing group to a broker or
agent for the purchasing group.
deleted text end
(b) A tax is imposed on a joint self-insurance plan operating under chapter 60F. The
rate of tax is equal to two percent of the total amount of claims paid during the fund year,
with no deduction for claims wholly or partially reimbursed through stop-loss insurance.
(c) A tax is imposed on a joint self-insurance plan operating under chapter 62H.
The rate of tax is equal to two percent of the total amount of claims paid during the
fund's fiscal year, with no deduction for claims wholly or partially reimbursed through
stop-loss insurance.
(d) A tax is imposed equal to the tax imposed under section 297I.05, subdivision 5,
on the gross premiums less return premiums on all coverages received by an accountable
provider network or agents of an accountable provider network in Minnesota, in cash or
otherwise, during the year.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for premiums received after
December 31, 2013.
new text end
Sec. 9.
Minnesota Statutes 2012, section 297I.30, subdivision 1, is amended to read:
Subdivision 1.
General rule.
On or before March 1, every taxpayer subject to
taxation under section 297I.05, subdivisions 1 to 5deleted text begin ,deleted text end new text begin ;new text end 7, paragraph (b)deleted text begin ,deleted text end new text begin ;new text end 12deleted text begin , paragraphs (a),
clauses (1) to (4), (b), (c), and (d),deleted text end new text begin ;new text end and 14, shall file an annual return for the preceding
calendar year in the form prescribed by the commissioner.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for premiums received after
December 31, 2013.
new text end
Sec. 10.
Minnesota Statutes 2012, section 297I.30, subdivision 2, is amended to read:
Subd. 2.
Surplus lines brokers deleted text begin and purchasing groupsdeleted text end .
On or before February
15 and August 15 of each year, every surplus lines broker subject to taxation under
section 297I.05, subdivision 7, paragraph (a), deleted text begin and every purchasing group or member of
a purchasing group subject to tax under section 297I.05, subdivision 12, paragraph (a),
clause (5),deleted text end shall file a return with the commissioner for the preceding six-month period
ending December 31, or June 30, in the form prescribed by the commissioner.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for premiums received after
December 31, 2013.
new text end
Sec. 11. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2012, section 289A.60, subdivision 31,
new text end
new text begin
is repealed.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
ARTICLE 17
DEPARTMENT OF REVENUE PROPERTY AND MINERALS PROVISIONS
Section 1.
Minnesota Statutes 2012, section 123A.455, subdivision 1, is amended to
read:
Subdivision 1.
Definitions.
"Split residential property parcel" means a parcel of
real estate that is located within the boundaries of more than one school district and that
is classified as residential property under:
(1) section 273.13, subdivision 22, paragraph (a) or (b);
(2) section 273.13, subdivision 25, paragraph (b), clause (1); or
(3) section 273.13, subdivision 25, paragraph (c)deleted text begin , clause (1)deleted text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxes payable in 2014 and
thereafter.
new text end
Sec. 2.
Minnesota Statutes 2012, section 270.077, is amended to read:
270.077 TAXES CREDITED TO STATE AIRPORTS FUND.
All taxes levied under sections 270.071 to 270.079 must benew text begin collected by the
commissioner andnew text end credited to the state airports fund created in section 360.017.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 3.
Minnesota Statutes 2012, section 270.41, subdivision 5, is amended to read:
Subd. 5.
Prohibited activity.
A licensed assessor or other person employed by an
assessment jurisdiction or contracting with an assessment jurisdiction for the purpose
of valuing or classifying property for property tax purposes is prohibited from making
appraisals or analyses, accepting an appraisal assignment, or preparing an appraisal report
as defined in section 82B.021, subdivisions 2, 4, 6, and 7, on any property within the
assessment jurisdiction where the individual is employed or performing the duties of the
assessor under contract. Violation of this prohibition shall result in immediate revocation
of the individual's license to assess property for property tax purposes. This prohibition
must not be construed to prohibit an individual from carrying out any duties required
for the proper assessment of property for property tax purposes or performing duties
enumerated in section 273.061, subdivision 7 or 8. If a formal resolution has been adopted
by the governing body of a governmental unit, which specifies the purposes for which
such work will be done, this prohibition does not apply to appraisal activities undertaken
on behalf of and at the request of the governmental unit that has employed or contracted
with the individual. The resolution may only allow appraisal activities which are related to
condemnations, right-of-way acquisitions,new text begin land exchanges,new text end or special assessments.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 4.
Minnesota Statutes 2012, section 270C.34, subdivision 1, is amended to read:
Subdivision 1.
Authority.
(a) The commissioner may abate, reduce, or refund any
penalty or interest that is imposed by a law administered by the commissioner, or imposed
by section 270.0725, subdivision 1 or 2, new text begin or 270.075, subdivision 2, new text end as a result of the late
payment of tax or late filing of a return, or any part of an additional tax charge under
section 289A.25, subdivision 2, or 289A.26, subdivision 4, if the failure to timely pay the
tax or failure to timely file the return is due to reasonable cause, or if the taxpayer is located
in a presidentially declared disaster or in a presidentially declared state of emergency area
or in an area declared to be in a state of emergency by the governor under section 12.31.
(b) The commissioner shall abate any part of a penalty or additional tax charge
under section 289A.25, subdivision 2, or 289A.26, subdivision 4, attributable to erroneous
advice given to the taxpayer in writing by an employee of the department acting in
an official capacity, if the advice:
(1) was reasonably relied on and was in response to a specific written request of the
taxpayer; and
(2) was not the result of failure by the taxpayer to provide adequate or accurate
information.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 5.
Minnesota Statutes 2012, section 272.01, subdivision 2, is amended to read:
Subd. 2.
Exempt property used by private entity for profit.
(a) When any real or
personal property which is exempt from ad valorem taxes, and taxes in lieu thereof, is
leased, loaned, or otherwise made available and used by a private individual, association,
or corporation in connection with a business conducted for profit, there shall be imposed a
tax, for the privilege of so using or possessing such real or personal property, in the same
amount and to the same extent as though the lessee or user was the owner of such property.
(b) The tax imposed by this subdivision shall not apply to:
(1) property leased or used as a concession in or relative to the use in whole
or part of a public park, market, fairgrounds, port authority, economic development
authority established under chapter 469, municipal auditorium, municipal parking facility,
municipal museum, or municipal stadium;
(2) property of an airport owned by a city, town, county, or group thereof which is:
(i) leased to or used by any person or entity including a fixed base operator; and
(ii) used as a hangar for the storage or repair of aircraft or to provide aviation goods,
services, or facilities to the airport or general public;
the exception from taxation provided in this clause does not apply to:
(i) property located at an airport owned or operated by the Metropolitan Airports
Commission or by a city of over 50,000 population according to the most recent federal
census or such a city's airport authority; or
(ii) hangars leased by a private individual, association, or corporation in connection
with a business conducted for profit other than an aviation-related business;
(3) property constituting or used as a public pedestrian ramp or concourse in
connection with a public airport;
(4) property constituting or used as a passenger check-in area or ticket sale counter,
boarding area, or luggage claim area in connection with a public airport but not the
airports owned or operated by the Metropolitan Airports Commission or cities of over
50,000 population or an airport authority therein. Real estate owned by a municipality
in connection with the operation of a public airport and leased or used for agricultural
purposes is not exempt;
(5) property leased, loaned, or otherwise made available to a private individual,
corporation, or association under a cooperative farming agreement made pursuant to
section 97A.135; or
(6) property leased, loaned, or otherwise made available to a private individual,
corporation, or association under section 272.68, subdivision 4.
(c) Taxes imposed by this subdivision are payable as in the case of personal property
taxes and shall be assessed to the lessees or users of real or personal property in the same
manner as taxes assessed to owners of real or personal property, except that such taxes
shall not become a lien against the property. When due, the taxes shall constitute a debt due
from the lessee or user to the state, township, city, county, and school district for which the
taxes were assessed and shall be collected in the same manner as personal property taxes.
If property subject to the tax imposed by this subdivision is leased or used jointly by two or
more persons, each lessee or user shall be jointly and severally liable for payment of the tax.
(d) The tax on real property of thenew text begin federal government, thenew text end state or any of its political
subdivisions that is leased deleted text begin bydeleted text end new text begin , loaned, or otherwise made available tonew text end a private individual,
association, or corporation and becomes taxable under this subdivision or other provision
of law must be assessed and collected as a personal property assessment. The taxes do
not become a lien against the real property.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 6.
Minnesota Statutes 2012, section 272.02, subdivision 97, is amended to read:
Subd. 97.
Property used in business of mining subject to net proceeds tax.
The
following property used in the business of mining that is subject to the net proceeds tax
under section 298.015 is exempt:
(1) deposits of ores, metals, and minerals and the lands in which they are contained;
(2) all real and personal property used in mining, quarrying, producing, or refining
ores, minerals, or metals, including lands occupied by or used in connection with the
mining, quarrying, production, or ore refining facilities; and
(3) concentrate deleted text begin or direct reduced oredeleted text end .
This exemption applies for each year that a person subject to tax under section
298.015 uses the property for mining, quarrying, producing, or refining ores, metals, or
minerals.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 7.
Minnesota Statutes 2012, section 272.03, subdivision 9, is amended to read:
Subd. 9.
Person.
"Person" deleted text begin includesdeleted text end new text begin means an individual, association, estate, trust,
partnership,new text end firm, company, or corporation.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 8.
Minnesota Statutes 2012, section 273.114, subdivision 6, is amended to read:
Subd. 6.
Additional taxes.
new text begin (a) new text end When real property which is being, or has been
valued and assessed under this section new text begin is sold, transferred, or new text end no longer qualifies under
subdivision 2, the portionnew text begin sold, transferred, ornew text end no longer qualifying shall be subject to
additional taxes in the amount equal to the difference between the taxes determined in
accordance with subdivision 3 and the amount determined under subdivision 4, provided
that the amount determined under subdivision 4 shall not be greater than it would have
been had the actual bona fide sale price of the real property at an arm's-length transaction
been used in lieu of the market value determined under subdivision 4. The additional taxes
shall be extended against the property on the tax list fornew text begin taxes payable innew text end the current year,
provided that no interest or penalties shall be levied on the additional taxes if timely paid
andnew text begin providednew text end that the additional taxes shall only be levied with respect to the current year
plus two prior years that the property has been valued and assessed under this section.
new text begin
(b) In the case of a sale or transfer, the additional taxes under paragraph (a) shall not
be extended against the property if the new owner submits a successful application under
this section by the later of May 1 of the current year or 30 days after the sale or transfer.
new text end
new text begin
(c) For the purposes of this section, the following events do not constitute a sale or
transfer for property that qualified under subdivision 2 prior to the event:
new text end
new text begin
(1) death of a property owner when the surviving owners retain ownership of the
property;
new text end
new text begin
(2) divorce of a married couple when one of the spouses retains ownership of the
property;
new text end
new text begin
(3) marriage of a single property owner when that owner retains ownership of the
property in whole or in part;
new text end
new text begin
(4) the organization or reorganization of a farm ownership entity that is not prohibited
from owning agricultural land in this state under section 500.24, if all owners maintain the
same beneficial interest both before and after the organization or reorganization; and
new text end
new text begin
(5) transfer of the property to a trust or trustee, provided that the individual owners
of the property are the grantors of the trust and they maintain the same beneficial interest
both before and after placement of the property in trust.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 9.
Minnesota Statutes 2012, section 273.13, subdivision 23, is amended to read:
Subd. 23.
Class 2.
(a) An agricultural homestead consists of class 2a agricultural
land that is homesteaded, along with any class 2b rural vacant land that is contiguous to
the class 2a land under the same ownership. The market value of the house and garage
and immediately surrounding one acre of land has the same class rates as class 1a or 1b
property under subdivision 22. The value of the remaining land including improvements
up to the first tier valuation limit of agricultural homestead property has a net class rate
of 0.5 percent of market value. The remaining property over the first tier has a class rate
of one percent of market value. For purposes of this subdivision, the "first tier valuation
limit of agricultural homestead property" and "first tier" means the limit certified under
section 273.11, subdivision 23.
(b) Class 2a agricultural land consists of parcels of property, or portions thereof, that
are agricultural land and buildings. Class 2a property has a net class rate of one percent of
market value, unless it is part of an agricultural homestead under paragraph (a). Class 2a
property must also include any property that would otherwise be classified as 2b, but is
interspersed with class 2a property, including but not limited to sloughs, wooded wind
shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback requirement,
and other similar land that is impractical for the assessor to value separately from the rest of
the property or that is unlikely to be able to be sold separately from the rest of the property.
An assessor may classify the part of a parcel described in this subdivision that is used
for agricultural purposes as class 2a and the remainder in the class appropriate to its use.
(c) Class 2b rural vacant land consists of parcels of property, or portions thereof,
that are unplatted real estate, rural in character and not used for agricultural purposes,
including land used for growing trees for timber, lumber, and wood and wood products,
that is not improved with a structure. The presence of a minor, ancillary nonresidential
structure as defined by the commissioner of revenue does not disqualify the property from
classification under this paragraph. Any parcel of 20 acres or more improved with a
structure that is not a minor, ancillary nonresidential structure must be split-classified, and
ten acres must be assigned to the split parcel containing the structure. Class 2b property
has a net class rate of one percent of market value unless it is part of an agricultural
homestead under paragraph (a), or qualifies as class 2c under paragraph (d).
(d) Class 2c managed forest land consists of no less than 20 and no more than 1,920
acres statewide per taxpayer that is being managed under a forest management plan that
meets the requirements of chapter 290C, but is not enrolled in the sustainable forest
resource management incentive program. It has a class rate of .65 percent, provided that
the owner of the property must apply to the assessor in order for the property to initially
qualify for the reduced rate and provide the information required by the assessor to verify
that the property qualifies for the reduced rate. If the assessor receives the application
and information before May 1 in an assessment year, the property qualifies beginning
with that assessment year. If the assessor receives the application and information after
April 30 in an assessment year, the property may not qualify until the next assessment
year. The commissioner of natural resources must concur that the land is qualified. The
commissioner of natural resources shall annually provide county assessors verification
information on a timely basis. The presence of a minor, ancillary nonresidential structure
as defined by the commissioner of revenue does not disqualify the property from
classification under this paragraph.
(e) Agricultural land as used in this section meansnew text begin :
new text end
new text begin (1)new text end contiguous acreage of ten acres or more, used during the preceding year for
agricultural purposesdeleted text begin .deleted text end new text begin ; or
new text end
new text begin
(2) contiguous acreage used during the preceding year for an intensive livestock or
poultry confinement operation, provided that land used only for pasturing or grazing
does not qualify under this clause.
new text end
"Agricultural purposes" as used in this section means the raising, cultivation, drying,
or storage of agricultural products for sale, or the storage of machinery or equipment
used in support of agricultural production by the same farm entity. For a property to be
classified as agricultural based only on the drying or storage of agricultural products,
the products being dried or stored must have been produced by the same farm entity as
the entity operating the drying or storage facility. "Agricultural purposes" also includes
enrollment in the Reinvest in Minnesota program under sections 103F.501 to 103F.535 or
the federal Conservation Reserve Program as contained in Public Law 99-198 or a similar
state or federal conservation program if the property was classified as agricultural (i)
under this subdivision for deleted text begin the assessment year 2002deleted text end new text begin taxes payable in 2003 because of its
enrollment in a qualifying program and the land remains enrollednew text end or (ii) in the year prior
to its enrollment. Agricultural classification shall not be based upon the market value of
any residential structures on the parcel or contiguous parcels under the same ownership.
new text begin
"Contiguous acreage," for purposes of this paragraph, means all of, or a contiguous
portion of, a tax parcel as described in section 272.193, or all of, or a contiguous portion
of, a set of contiguous tax parcels under that section that are owned by the same person.
new text end
(f) deleted text begin Real estate ofdeleted text end new text begin Agricultural land under this section also includes:
new text end
new text begin (1) contiguous acreage that isnew text end less than ten acresdeleted text begin , which isdeleted text end new text begin in size andnew text end exclusively deleted text begin or
intensivelydeleted text end usednew text begin in the preceding yearnew text end for raising or cultivating agricultural productsdeleted text begin , shall
be considered as agricultural land. To qualify under this paragraph, property that includes
a residential structure must be used intensively for one of the following purposes:deleted text end new text begin ; or
new text end
new text begin
(2) contiguous acreage that contains a residence and is less than 11 acres in size, if
the contiguous acreage exclusive of the house, garage, and surrounding one acre of land
was used in the preceding year for one or more of the following three uses:
new text end
(i) fornew text begin an intensive grainnew text end drying or storage deleted text begin of graindeleted text end new text begin operation,new text end ornew text begin for intensive
machinery or equipmentnew text end storage deleted text begin of machinery or equipmentdeleted text end new text begin activitiesnew text end used to support
agricultural activities on other parcels of property operated by the same farming entity;
(ii) as a nursery, provided that only those acres usednew text begin intensivelynew text end to produce nursery
stock are considered agricultural land;new text begin or
new text end
deleted text begin
(iii) for livestock or poultry confinement, provided that land that is used only for
pasturing and grazing does not qualify; or
deleted text end
deleted text begin (iv)deleted text end new text begin (iii)new text end fornew text begin intensivenew text end market farming; for purposes of this paragraph, "market
farming" means the cultivation of one or more fruits or vegetables or production of animal
or other agricultural products for sale to local markets by the farmer or an organization
with which the farmer is affiliated.
new text begin
"Contiguous acreage," for purposes of this paragraph, means all of a tax parcel as
described in section 272.193, or all of a set of contiguous tax parcels under that section
that are owned by the same person.
new text end
(g) Land shall be classified as agricultural even if all or a portion of the agricultural
use of that property is the leasing to, or use by another person for agricultural purposes.
Classification under this subdivision is not determinative for qualifying under
section 273.111.
(h) The property classification under this section supersedes, for property tax
purposes only, any locally administered agricultural policies or land use restrictions that
define minimum or maximum farm acreage.
(i) The term "agricultural products" as used in this subdivision includes production
for sale of:
(1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing
animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains,
bees, and apiary products by the owner;
(2) fish bred for sale and consumption if the fish breeding occurs on land zoned
for agricultural use;
(3) the commercial boarding of horses, which may include related horse training and
riding instruction, if the boarding is done on property that is also used for raising pasture
to graze horses or raising or cultivating other agricultural products as defined in clause (1);
(4) property which is owned and operated by nonprofit organizations used for
equestrian activities, excluding racing;
(5) game birds and waterfowl bred and raised (i) on a game farm licensed under
section 97A.105, provided that the annual licensing report to the Department of Natural
Resources, which must be submitted annually by March 30 to the assessor, indicates
that at least 500 birds were raised or used for breeding stock on the property during the
preceding year and that the owner provides a copy of the owner's most recent schedule F;
or (ii) for use on a shooting preserve licensed under section 97A.115;
(6) insects primarily bred to be used as food for animals;
(7) trees, grown for sale as a crop, including short rotation woody crops, and not
sold for timber, lumber, wood, or wood products; and
(8) maple syrup taken from trees grown by a person licensed by the Minnesota
Department of Agriculture under chapter 28A as a food processor.
(j) If a parcel used for agricultural purposes is also used for commercial or industrial
purposes, including but not limited to:
(1) wholesale and retail sales;
(2) processing of raw agricultural products or other goods;
(3) warehousing or storage of processed goods; and
(4) office facilities for the support of the activities enumerated in clauses (1), (2),
and (3),
the assessor shall classify the part of the parcel used for agricultural purposes as class
1b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its
use. The grading, sorting, and packaging of raw agricultural products for first sale is
considered an agricultural purpose. A greenhouse or other building where horticultural
or nursery products are grown that is also used for the conduct of retail sales must be
classified as agricultural if it is primarily used for the growing of horticultural or nursery
products from seed, cuttings, or roots and occasionally as a showroom for the retail sale of
those products. Use of a greenhouse or building only for the display of already grown
horticultural or nursery products does not qualify as an agricultural purpose.
(k) The assessor shall determine and list separately on the records the market value
of the homestead dwelling and the one acre of land on which that dwelling is located. If
any farm buildings or structures are located on this homesteaded acre of land, their market
value shall not be included in this separate determination.
(l) Class 2d airport landing area consists of a landing area or public access area of
a privately owned public use airport. It has a class rate of one percent of market value.
To qualify for classification under this paragraph, a privately owned public use airport
must be licensed as a public airport under section 360.018. For purposes of this paragraph,
"landing area" means that part of a privately owned public use airport properly cleared,
regularly maintained, and made available to the public for use by aircraft and includes
runways, taxiways, aprons, and sites upon which are situated landing or navigational aids.
A landing area also includes land underlying both the primary surface and the approach
surfaces that comply with all of the following:
(i) the land is properly cleared and regularly maintained for the primary purposes of
the landing, taking off, and taxiing of aircraft; but that portion of the land that contains
facilities for servicing, repair, or maintenance of aircraft is not included as a landing area;
(ii) the land is part of the airport property; and
(iii) the land is not used for commercial or residential purposes.
The land contained in a landing area under this paragraph must be described and certified
by the commissioner of transportation. The certification is effective until it is modified,
or until the airport or landing area no longer meets the requirements of this paragraph.
For purposes of this paragraph, "public access area" means property used as an aircraft
parking ramp, apron, or storage hangar, or an arrival and departure building in connection
with the airport.
(m) Class 2e consists of land with a commercial aggregate deposit that is not actively
being mined and is not otherwise classified as class 2a or 2b, provided that the land is not
located in a county that has elected to opt-out of the aggregate preservation program as
provided in section 273.1115, subdivision 6. It has a class rate of one percent of market
value. To qualify for classification under this paragraph, the property must be at least
ten contiguous acres in size and the owner of the property must record with the county
recorder of the county in which the property is located an affidavit containing:
(1) a legal description of the property;
(2) a disclosure that the property contains a commercial aggregate deposit that is not
actively being mined but is present on the entire parcel enrolled;
(3) documentation that the conditional use under the county or local zoning
ordinance of this property is for mining; and
(4) documentation that a permit has been issued by the local unit of government
or the mining activity is allowed under local ordinance. The disclosure must include a
statement from a registered professional geologist, engineer, or soil scientist delineating
the deposit and certifying that it is a commercial aggregate deposit.
For purposes of this section and section 273.1115, "commercial aggregate deposit"
means a deposit that will yield crushed stone or sand and gravel that is suitable for use
as a construction aggregate; and "actively mined" means the removal of top soil and
overburden in preparation for excavation or excavation of a commercial deposit.
(n) When any portion of the property under this subdivision or subdivision 22 begins
to be actively mined, the owner must file a supplemental affidavit within 60 days from
the day any aggregate is removed stating the number of acres of the property that is
actively being mined. The acres actively being mined must be (1) valued and classified
under subdivision 24 in the next subsequent assessment year, and (2) removed from the
aggregate resource preservation property tax program under section 273.1115, if the
land was enrolled in that program. Copies of the original affidavit and all supplemental
affidavits must be filed with the county assessor, the local zoning administrator, and the
Department of Natural Resources, Division of Land and Minerals. A supplemental
affidavit must be filed each time a subsequent portion of the property is actively mined,
provided that the minimum acreage change is five acres, even if the actual mining activity
constitutes less than five acres.
(o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are
not rules and are exempt from the rulemaking provisions of chapter 14, and the provisions
in section 14.386 concerning exempt rules do not apply.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxes payable in 2014 and
thereafter.
new text end
Sec. 10.
Minnesota Statutes 2012, section 273.13, subdivision 25, is amended to read:
Subd. 25.
Class 4.
(a) Class 4a is residential real estate containing four or more
units and used or held for use by the owner or by the tenants or lessees of the owner
as a residence for rental periods of 30 days or more, excluding property qualifying for
class 4d. Class 4a also includes hospitals licensed under sections 144.50 to 144.56, other
than hospitals exempt under section 272.02, and contiguous property used for hospital
purposes, without regard to whether the property has been platted or subdivided. The
market value of class 4a property has a class rate of 1.25 percent.
(b) Class 4b includes:
(1) residential real estate containing less than four units that does not qualify as class
4bb, other than seasonal residential recreational property;
(2) manufactured homes not classified under any other provision;
(3) a dwelling, garage, and surrounding one acre of property on a nonhomestead
farm classified under subdivision 23, paragraph (b) containing two or three units; and
(4) unimproved property that is classified residential as determined under subdivision
33.
The market value of class 4b property has a class rate of 1.25 percent.
(c) Class 4bb includesdeleted text begin :
deleted text end
deleted text begin (1)deleted text end nonhomestead residential real estate containing one unit, other than seasonal
residential recreational property; and
deleted text begin (2)deleted text end a single family dwelling, garage, and surrounding one acre of property on a
nonhomestead farm classified under subdivision 23, paragraph (b).
Class 4bb property has the same class rates as class 1a property under subdivision 22.
Property that has been classified as seasonal residential recreational property at
any time during which it has been owned by the current owner or spouse of the current
owner does not qualify for class 4bb.
(d) Class 4c property includes:
(1) except as provided in subdivision 22, paragraph (c), real and personal property
devoted to commercial temporary and seasonal residential occupancy for recreation
purposes, for not more than 250 days in the year preceding the year of assessment. For
purposes of this clause, property is devoted to a commercial purpose on a specific day
if any portion of the property is used for residential occupancy, and a fee is charged for
residential occupancy. Class 4c property under this clause must contain three or more
rental units. A "rental unit" is defined as a cabin, condominium, townhouse, sleeping room,
or individual camping site equipped with water and electrical hookups for recreational
vehicles. A camping pad offered for rent by a property that otherwise qualifies for class
4c under this clause is also class 4c under this clause regardless of the term of the rental
agreement, as long as the use of the camping pad does not exceed 250 days. In order for a
property to be classified under this clause, either (i) the business located on the property
must provide recreational activities, at least 40 percent of the annual gross lodging receipts
related to the property must be from business conducted during 90 consecutive days,
and either (A) at least 60 percent of all paid bookings by lodging guests during the year
must be for periods of at least two consecutive nights; or (B) at least 20 percent of the
annual gross receipts must be from charges for providing recreational activities, or (ii) the
business must contain 20 or fewer rental units, and must be located in a township or a city
with a population of 2,500 or less located outside the metropolitan area, as defined under
section 473.121, subdivision 2, that contains a portion of a state trail administered by the
Department of Natural Resources. For purposes of item (i)(A), a paid booking of five or
more nights shall be counted as two bookings. Class 4c property also includes commercial
use real property used exclusively for recreational purposes in conjunction with other class
4c property classified under this clause and devoted to temporary and seasonal residential
occupancy for recreational purposes, up to a total of two acres, provided the property is
not devoted to commercial recreational use for more than 250 days in the year preceding
the year of assessment and is located within two miles of the class 4c property with which
it is used. In order for a property to qualify for classification under this clause, the owner
must submit a declaration to the assessor designating the cabins or units occupied for 250
days or less in the year preceding the year of assessment by January 15 of the assessment
year. Those cabins or units and a proportionate share of the land on which they are located
must be designated class 4c under this clause as otherwise provided. The remainder of the
cabins or units and a proportionate share of the land on which they are located will be
designated as class 3a. The owner of property desiring designation as class 4c property
under this clause must provide guest registers or other records demonstrating that the units
for which class 4c designation is sought were not occupied for more than 250 days in the
year preceding the assessment if so requested. The portion of a property operated as a
(1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) other
nonresidential facility operated on a commercial basis not directly related to temporary and
seasonal residential occupancy for recreation purposes does not qualify for class 4c. For
the purposes of this paragraph, "recreational activities" means renting ice fishing houses,
boats and motors, snowmobiles, downhill or cross-country ski equipment; providing
marina services, launch services, or guide services; or selling bait and fishing tackle;
(2) qualified property used as a golf course if:
(i) it is open to the public on a daily fee basis. It may charge membership fees or
dues, but a membership fee may not be required in order to use the property for golfing,
and its green fees for golfing must be comparable to green fees typically charged by
municipal courses; and
(ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d).
A structure used as a clubhouse, restaurant, or place of refreshment in conjunction
with the golf course is classified as class 3a property;
(3) real property up to a maximum of three acres of land owned and used by a
nonprofit community service oriented organization and not used for residential purposes
on either a temporary or permanent basis, provided that:
(i) the property is not used for a revenue-producing activity for more than six days
in the calendar year preceding the year of assessment; or
(ii) the organization makes annual charitable contributions and donations at least
equal to the property's previous year's property taxes and the property is allowed to be
used for public and community meetings or events for no charge, as appropriate to the
size of the facility.
For purposes of this clause:
(A) "charitable contributions and donations" has the same meaning as lawful
gambling purposes under section 349.12, subdivision 25, excluding those purposes
relating to the payment of taxes, assessments, fees, auditing costs, and utility payments;
(B) "property taxes" excludes the state general tax;
(C) a "nonprofit community service oriented organization" means any corporation,
society, association, foundation, or institution organized and operated exclusively for
charitable, religious, fraternal, civic, or educational purposes, and which is exempt from
federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal
Revenue Code; and
(D) "revenue-producing activities" shall include but not be limited to property or that
portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt
liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling
alley, a retail store, gambling conducted by organizations licensed under chapter 349, an
insurance business, or office or other space leased or rented to a lessee who conducts a
for-profit enterprise on the premises.
Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The use
of the property for social events open exclusively to members and their guests for periods
of less than 24 hours, when an admission is not charged nor any revenues are received by
the organization shall not be considered a revenue-producing activity.
The organization shall maintain records of its charitable contributions and donations
and of public meetings and events held on the property and make them available upon
request any time to the assessor to ensure eligibility. An organization meeting the
requirement under item (ii) must file an application by May 1 with the assessor for
eligibility for the current year's assessment. The commissioner shall prescribe a uniform
application form and instructions;
(4) postsecondary student housing of not more than one acre of land that is owned by
a nonprofit corporation organized under chapter 317A and is used exclusively by a student
cooperative, sorority, or fraternity for on-campus housing or housing located within two
miles of the border of a college campus;
(5)(i) manufactured home parks as defined in section 327.14, subdivision 3,
excluding manufactured home parks described in section 273.124, subdivision 3a, and (ii)
manufactured home parks as defined in section 327.14, subdivision 3, that are described in
section 273.124, subdivision 3a;
(6) real property that is actively and exclusively devoted to indoor fitness, health,
social, recreational, and related uses, is owned and operated by a not-for-profit corporation,
and is located within the metropolitan area as defined in section 473.121, subdivision 2;
(7) a leased or privately owned noncommercial aircraft storage hangar not exempt
under section 272.01, subdivision 2, and the land on which it is located, provided that:
(i) the land is on an airport owned or operated by a city, town, county, Metropolitan
Airports Commission, or group thereof; and
(ii) the land lease, or any ordinance or signed agreement restricting the use of the
leased premise, prohibits commercial activity performed at the hangar.
If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must
be filed by the new owner with the assessor of the county where the property is located
within 60 days of the sale;
(8) a privately owned noncommercial aircraft storage hangar not exempt under
section 272.01, subdivision 2, and the land on which it is located, provided that:
(i) the land abuts a public airport; and
(ii) the owner of the aircraft storage hangar provides the assessor with a signed
agreement restricting the use of the premises, prohibiting commercial use or activity
performed at the hangar; and
(9) residential real estate, a portion of which is used by the owner for homestead
purposes, and that is also a place of lodging, if all of the following criteria are met:
(i) rooms are provided for rent to transient guests that generally stay for periods
of 14 or fewer days;
(ii) meals are provided to persons who rent rooms, the cost of which is incorporated
in the basic room rate;
(iii) meals are not provided to the general public except for special events on fewer
than seven days in the calendar year preceding the year of the assessment; and
(iv) the owner is the operator of the property.
The market value subject to the 4c classification under this clause is limited to five rental
units. Any rental units on the property in excess of five, must be valued and assessed as
class 3a. The portion of the property used for purposes of a homestead by the owner must
be classified as class 1a property under subdivision 22;
(10) real property up to a maximum of three acres and operated as a restaurant
as defined under section 157.15, subdivision 12, provided it: (A) is located on a lake
as defined under section 103G.005, subdivision 15, paragraph (a), clause (3); and (B)
is either devoted to commercial purposes for not more than 250 consecutive days, or
receives at least 60 percent of its annual gross receipts from business conducted during
four consecutive months. Gross receipts from the sale of alcoholic beverages must be
included in determining the property's qualification under subitem (B). The property's
primary business must be as a restaurant and not as a bar. Gross receipts from gift shop
sales located on the premises must be excluded. Owners of real property desiring 4c
classification under this clause must submit an annual declaration to the assessor by
February 1 of the current assessment year, based on the property's relevant information for
the preceding assessment year;
(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used
as a marina, as defined in section 86A.20, subdivision 5, which is made accessible to
the public and devoted to recreational use for marina services. The marina owner must
annually provide evidence to the assessor that it provides services, including lake or river
access to the public by means of an access ramp or other facility that is either located on
the property of the marina or at a publicly owned site that abuts the property of the marina.
No more than 800 feet of lakeshore may be included in this classification. Buildings used
in conjunction with a marina for marina services, including but not limited to buildings
used to provide food and beverage services, fuel, boat repairs, or the sale of bait or fishing
tackle, are classified as class 3a property; and
(12) real and personal property devoted to noncommercial temporary and seasonal
residential occupancy for recreation purposes.
Class 4c property has a class rate of 1.5 percent of market value, except that (i) each
parcel of noncommercial seasonal residential recreational property under clause (12)
has the same class rates as class 4bb property, (ii) manufactured home parks assessed
under clause (5), item (i), have the same class rate as class 4b property, and the market
value of manufactured home parks assessed under clause (5), item (ii), has the same class
rate as class 4d property if more than 50 percent of the lots in the park are occupied by
shareholders in the cooperative corporation or association and a class rate of one percent if
50 percent or less of the lots are so occupied, (iii) commercial-use seasonal residential
recreational property and marina recreational land as described in clause (11), has a
class rate of one percent for the first $500,000 of market value, and 1.25 percent for the
remaining market value, (iv) the market value of property described in clause (4) has a
class rate of one percent, (v) the market value of property described in clauses (2), (6), and
(10) has a class rate of 1.25 percent, and (vi) that portion of the market value of property
in clause (9) qualifying for class 4c property has a class rate of 1.25 percent.
(e) Class 4d property is qualifying low-income rental housing certified to the assessor
by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion
of the units in the building qualify as low-income rental housing units as certified under
section 273.128, subdivision 3, only the proportion of qualifying units to the total number
of units in the building qualify for class 4d. The remaining portion of the building shall be
classified by the assessor based upon its use. Class 4d also includes the same proportion of
land as the qualifying low-income rental housing units are to the total units in the building.
For all properties qualifying as class 4d, the market value determined by the assessor must
be based on the normal approach to value using normal unrestricted rents.
Class 4d property has a class rate of 0.75 percent.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxes payable in 2014 and
thereafter.
new text end
Sec. 11.
Minnesota Statutes 2012, section 273.19, subdivision 1, is amended to read:
Subdivision 1.
Tax-exempt property; lease.
Except as provided in subdivision 3 or
4, tax-exempt property held under a lease for a term of at least one year, and not taxable
under section 272.01, subdivision 2, or under a contract for the purchase thereof, shall be
considered, for all purposes of taxation, as the property of the person holding it. In this
subdivision, "tax-exempt property" means property owned by the United States, the state
new text begin or any of its political subdivisionsnew text end , a school, or any religious, scientific, or benevolent
society or institution, incorporated or unincorporated, or any corporation whose property
is not taxed in the same manner as other property. This subdivision does not apply to
property exempt from taxation under section 272.01, subdivision 2, paragraph (b), clauses
(2), (3), and (4), or to property exempt from taxation under section 272.0213.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 12.
Minnesota Statutes 2012, section 273.372, subdivision 4, is amended to read:
Subd. 4.
Administrative appeals.
(a) Companies that submit the reports under
section 270.82 or 273.371 by the date specified in that section, or by the date specified by
the commissioner in an extension, may appeal administratively to the commissioner prior
to bringing an action in court deleted text begin by submittingdeleted text end new text begin .
new text end
new text begin (b) Companies that must submit reports under section 270.82 must submitnew text end a written
request deleted text begin withdeleted text end new text begin tonew text end the commissioner for a conference within ten days after the date of the
commissioner's valuation certification or notice to the company, or by deleted text begin Maydeleted text end new text begin Junenew text end 15,
whichever is earlier.
new text begin
(c) Companies that submit reports under section 273.371 must submit a written
request to the commissioner for a conference within ten days after the date of the
commissioner's valuation certification or notice to the company, or by July 1, whichever
is earlier.
new text end
new text begin (d)new text end The commissioner shall conduct the conference upon the commissioner's entire
files and records and such further information as may be offered. The conference must
be held no later than 20 days after the date of the commissioner's valuation certification
or notice to the company, or by the date specified by the commissioner in an extension.
Within 60 days after the conference the commissioner shall make a final determination of
the matter and shall notify the company promptly of the determination. The conference
is not a contested case hearing.
deleted text begin (b)deleted text end new text begin (e)new text end In addition to the opportunity for a conference under paragraph (a), the
commissioner shall also provide the railroad and utility companies the opportunity to
discuss any questions or concerns relating to the values established by the commissioner
through certification or notice in a less formal manner. This does not change or modify
the deadline for requesting a conference under paragraph (a), the deadline in section
271.06 for appealing an order of the commissioner, or the deadline in section 278.01 for
appealing property taxes in court.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with assessment year 2014.
new text end
Sec. 13.
Minnesota Statutes 2012, section 273.39, is amended to read:
273.39 RURAL AREA.
As used in sections 273.39 to 273.41, the term "rural area" shall be deemed to mean
any area of the state not included within the boundaries of any deleted text begin incorporateddeleted text end new text begin statutory
city or home rule charternew text end city, and such term shall be deemed to include both farm and
nonfarm population thereof.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 14.
Minnesota Statutes 2012, section 279.06, subdivision 1, is amended to read:
Subdivision 1.
List and notice.
Within five days after the filing of such list, the
court administrator shall return a copy thereof to the county auditor, with a notice prepared
and signed by the court administrator, and attached thereto, which may be substantially in
the following form:
| State of Minnesota |
) |
||
| ) ss. |
|||
|
County of
. |
) |
||
| District Court |
|||
|
.
Judicial District.
|
The state of Minnesota, to all persons, companies, or corporations who have or claim
any estate, right, title, or interest in, claim to, or lien upon, any of the several parcels of
land described in the list hereto attached:
The list of taxes and penalties on real property for the county of ...............................
remaining delinquent on the first Monday in January, ......., has been filed in the office of
the court administrator of the district court of said county, of which that hereto attached is a
copy. Therefore, you, and each of you, are hereby required to file in the office of said court
administrator, on or before the 20th day after the publication of this notice and list, your
answer, in writing, setting forth any objection or defense you may have to the taxes, or any
part thereof, upon any parcel of land described in the list, in, to, or on which you have or
claim any estate, right, title, interest, claim, or lien, and, in default thereof, judgment will
be entered against such parcel of land for the taxes on such list appearing against it, and
for all penalties, interest, and costs. Based upon said judgment, the land shall be sold to
the state of Minnesota on the second Monday in May, ....... deleted text begin The period of redemption for
all lands sold to the state at a tax judgment sale shall be three years from the date of sale to
the state of Minnesota if the land is within an incorporated area unless it is:
deleted text end
deleted text begin
(a) nonagricultural homesteaded land as defined in section 273.13, subdivision 22;
deleted text end
deleted text begin
(b) homesteaded agricultural land as defined in section 273.13, subdivision 23,
paragraph (a);
deleted text end
deleted text begin
(c) seasonal residential recreational land as defined in section 273.13, subdivisions
22, paragraph (c), and 25, paragraph (d), clause (1), in which event the period of
redemption is five years from the date of sale to the state of Minnesota;
deleted text end
deleted text begin
(d) abandoned property and pursuant to section 281.173 a court order has been
entered shortening the redemption period to five weeks; or
deleted text end
deleted text begin
(e) vacant property as described under section 281.174, subdivision 2, and for which
a court order is entered shortening the redemption period under section 281.174.
deleted text end
deleted text begin
The period of redemption for all other lands sold to the state at a tax judgment sale
shall be five years from the date of sale.
deleted text end
Inquiries as to the proceedings set forth above can be made to the county auditor of
..... county whose address is ......
|
(Signed)
.
,
|
|
|
Court Administrator of the District Court of the
County of . |
|
| (Here insert list.) |
new text begin
The notice must contain a narrative description of the various periods to redeem
specified in sections 281.17, 281.173, and 281.174, in the manner prescribed by the
commissioner of revenue under subdivision 2.
new text end
The list referred to in the notice shall be substantially in the following form:
List of real property for the county of ......................., on which taxes remain
delinquent on the first Monday in January, .......
Town of (Fairfield),
Township (40), Range (20),
| Names (and Current Filed Addresses) for the Taxpayers and Fee Owners and in Addition Those Parties Who Have Filed Their Addresses Pursuant to section 276.041 |
Subdivision of Section |
Section |
Tax Parcel Number |
Total Tax and Penalty |
| $ cts. |
||||
| John Jones (825 Fremont Fairfield, MN 55000) |
S.E. 1/4 of S.W. 1/4 |
10 |
23101 |
2.20 |
| Bruce Smith (2059 Hand Fairfield, MN 55000) and Fairfield State Bank (100 Main Street Fairfield, MN 55000) |
That part of N.E. 1/4 of S.W. 1/4 desc. as follows: Beg. at the S.E. corner of said N.E. 1/4 of S.W. 1/4; thence N. along the E. line of said N.E. 1/4 of S.W. 1/4 a distance of 600 ft.; thence W. parallel with the S. line of said N.E. 1/4 of S.W. 1/4 a distance of 600 ft.; thence S. parallel with said E. line a distance of 600 ft. to S. line of said N.E. 1/4 of S.W. 1/4; thence E. along said S. line a distance of 600 ft. to the point of beg. |
21 |
33211 |
3.15 |
As to platted property, the form of heading shall conform to circumstances and be
substantially in the following form:
City of (Smithtown)
Brown's Addition, or Subdivision
| Names (and Current Filed Addresses) for the Taxpayers and Fee Owners and in Addition Those Parties Who Have Filed Their Addresses Pursuant to section 276.041 |
Lot |
Block |
Tax Parcel Number |
Total Tax and Penalty |
| $ cts. |
||||
| John Jones (825 Fremont Fairfield, MN 55000) |
15 |
9 |
58243 |
2.20 |
| Bruce Smith (2059 Hand Fairfield, MN 55000) and Fairfield State Bank (100 Main Street Fairfield, MN 55000) |
16 |
9 |
58244 |
3.15 |
The names, descriptions, and figures employed in parentheses in the above forms are
merely for purposes of illustration.
The name of the town, township, range or city, and addition or subdivision, as the
case may be, shall be repeated at the head of each column of the printed lists as brought
forward from the preceding column.
Errors in the list shall not be deemed to be a material defect to affect the validity
of the judgment and sale.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for lists and notices required after
December 31, 2013.
new text end
Sec. 15.
Minnesota Statutes 2012, section 290B.04, subdivision 2, is amended to read:
Subd. 2.
Approval; recording.
The commissioner shall approve all initial
applications that qualify under this chapter and shall notify qualifying homeowners on or
before December 1. The commissioner may investigate the facts or require confirmation
in regard to an application. The commissioner shall record or file a notice of qualification
for deferral, including the names of the qualifying homeowners and a legal description
of the property, in the office of the county recorder, or registrar of titles, whichever is
applicable, in the county where the qualifying property is located. The notice must state
that it serves as a notice of lien and that it includes deferrals under this section for future
years.new text begin The commissioner shall prescribe the form of the notice. Execution of the notice
by the original or facsimile signature of the commissioner or a delegate entitles them to
be recorded, and no other attestation, certification, or acknowledgment is necessary.new text end The
homeowner shall pay the recording or filing fees for the notice, which, notwithstanding
section 357.18, shall be paid by the homeowner at the time of satisfaction of the lien.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for notices that are both executed
and recorded after June 30, 2013.
new text end
Sec. 16.
Minnesota Statutes 2012, section 298.01, subdivision 3, is amended to read:
Subd. 3.
Occupation tax; other ores.
Every person engaged in the business of
mining, refining, or producing ores, metals, or minerals in this state, except iron ore or
taconite concentrates, shall pay an occupation tax to the state of Minnesota as provided
in this subdivision. For purposes of this subdivision, mining includes the application of
hydrometallurgical processes.new text begin Hydrometallurgical processes are processes that extract
the ores, metals, or minerals, by use of aqueous solutions that leach, concentrate, and
recover the ore, metal, or mineral.new text end The tax is determined in the same manner as the tax
imposed by section 290.02, except that sections 290.05, subdivision 1, clause (a), 290.17,
subdivision 4, and 290.191, subdivision 2, do not apply, and the occupation tax must
be computed by applying to taxable income the rate of 2.45 percent. A person subject
to occupation tax under this section shall apportion its net income on the basis of the
percentage obtained by taking the sum of:
(1) 75 percent of the percentage which the sales made within this state in connection
with the trade or business during the tax period are of the total sales wherever made in
connection with the trade or business during the tax period;
(2) 12.5 percent of the percentage which the total tangible property used by the
taxpayer in this state in connection with the trade or business during the tax period is of
the total tangible property, wherever located, used by the taxpayer in connection with the
trade or business during the tax period; and
(3) 12.5 percent of the percentage which the taxpayer's total payrolls paid or incurred
in this state or paid in respect to labor performed in this state in connection with the trade
or business during the tax period are of the taxpayer's total payrolls paid or incurred in
connection with the trade or business during the tax period.
The tax is in addition to all other taxes.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 17.
Minnesota Statutes 2012, section 298.018, is amended to read:
298.018 DISTRIBUTION OF PROCEEDS.
Subdivision 1.
Within taconite assistance area.
The proceeds of the tax paid
under sections 298.015 and 298.016 onnew text begin ores, metals, ornew text end minerals deleted text begin and energy resources
deleted text end mined or extracted within the taconite assistance area defined in section 273.1341, shall
be allocated as follows:
(1) five percent to the city or town within which the minerals or energy resources
are mined or extracted;
(2) ten percent to the taconite municipal aid account to be distributed as provided
in section 298.282;
(3) ten percent to the school district within which the minerals or energy resources
are mined or extracted;
(4) 20 percent to a group of school districts comprised of those school districts
wherein the mineral or energy resource was mined or extracted or in which there is a
qualifying municipality as defined by section 273.134, paragraph (b), in direct proportion
to school district indexes as follows: for each school district, its pupil units determined
under section 126C.05 for the prior school year shall be multiplied by the ratio of the
average adjusted net tax capacity per pupil unit for school districts receiving aid under
this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year
ending prior to distribution to the adjusted net tax capacity per pupil unit of the district.
Each district shall receive that portion of the distribution which its index bears to the sum
of the indices for all school districts that receive the distributions;
(5) 20 percent to the county within which the minerals or energy resources are
mined or extracted;
(6) 20 percent to St. Louis County acting as the counties' fiscal agent to be
distributed as provided in sections 273.134 to 273.136;
(7) five percent to the Iron Range Resources and Rehabilitation Board for the
purposes of section 298.22;
(8) five percent to the Douglas J. Johnson economic protection trust fund; and
(9) five percent to the taconite environmental protection fund.
The proceeds of the tax shall be distributed on July 15 each year.
Subd. 2.
Outside taconite assistance area.
The proceeds of the tax paid under
sections 298.015 and 298.016 onnew text begin ores, metals, ornew text end minerals deleted text begin and energy resourcesdeleted text end mined
or extracted outside of the taconite assistance area defined in section 273.1341, shall
be deposited in the general fund.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 18.
Minnesota Statutes 2012, section 373.01, subdivision 1, is amended to read:
Subdivision 1.
Public corporation; listed powers.
(a) Each county is a body politic
and corporate and may:
(1) Sue and be sued.
(2) Acquire and hold real and personal property for the use of the county, and lands
sold for taxes as provided by law.
(3) Purchase and hold for the benefit of the county real estate sold by virtue of
judicial proceedings, to which the county is a party.
(4) Sell, lease, and convey real or personal estate owned by the county, and give
contracts or options to sell, lease, or convey it, and make orders respecting it as deemed
conducive to the interests of the county's inhabitants.
(5) Make all contracts and do all other acts in relation to the property and concerns
of the county necessary to the exercise of its corporate powers.
(b) No sale, lease, or conveyance of real estate owned by the county, except the lease
of a residence acquired for the furtherance of an approved capital improvement project, nor
any contract or option for it, shall be valid, without first advertising for bids or proposals in
the official newspaper of the county for three consecutive weeks and once in a newspaper
of general circulation in the area where the property is located. The notice shall state the
time and place of considering the proposals, contain a legal description of any real estate,
and a brief description of any personal property. Leases that do not exceed $15,000 for any
one year may be negotiated and are not subject to the competitive bid procedures of this
section. All proposals estimated to exceed $15,000 in any one year shall be considered at
the time set for the bid opening, and the one most favorable to the county accepted, but the
county board may, in the interest of the county, reject any or all proposals.
(c) Sales of personal property the value of which is estimated to be $15,000 or
more shall be made only after advertising for bids or proposals in the county's official
newspaper, on the county's Web site, or in a recognized industry trade journal. At the same
time it posts on its Web site or publishes in a trade journal, the county must publish in the
official newspaper, either as part of the minutes of a regular meeting of the county board
or in a separate notice, a summary of all requests for bids or proposals that the county
advertises on its Web site or in a trade journal. After publication in the official newspaper,
on the Web site, or in a trade journal, bids or proposals may be solicited and accepted by
the electronic selling process authorized in section 471.345, subdivision 17. Sales of
personal property the value of which is estimated to be less than $15,000 may be made
either on competitive bids or in the open market, in the discretion of the county board.
"Web site" means a specific, addressable location provided on a server connected to the
Internet and hosting World Wide Web pages and other files that are generally accessible
on the Internet all or most of a day.
(d) Notwithstanding anything to the contrary herein, the county may, when acquiring
real property for county highway right-of-way, exchange parcels of real property of
substantially similar or equal value without advertising for bids. The estimated values for
these parcels shall be determined by the county assessor.
(e) Notwithstanding anything in this section to the contrary, the county may, when
acquiring real property for purposes other than county highway right-of-way, exchange
parcels of real property of substantially similar or equal value without advertising for
bids. The estimated values for these parcels must be determined by the county assessor
or a private appraisal performed by a licensed Minnesota real estate appraiser. new text begin For the
purpose of determining for the county the estimated values of parcels proposed to be
exchanged, the county assessor need not be licensed under chapter 82B. new text end Before giving
final approval to any exchange of land, the county board shall hold a public hearing on
the exchange. At least two weeks before the hearing, the county auditor shall post a
notice in the auditor's office and the official newspaper of the county of the hearing that
contains a description of the lands affected.
(f) If real estate or personal property remains unsold after advertising for and
consideration of bids or proposals the county may employ a broker to sell the property.
The broker may sell the property for not less than 90 percent of its appraised market value
as determined by the county. The broker's fee shall be set by agreement with the county but
may not exceed ten percent of the sale price and must be paid from the proceeds of the sale.
(g) A county or its agent may rent a county-owned residence acquired for the
furtherance of an approved capital improvement project subject to the conditions set
by the county board and not subject to the conditions for lease otherwise provided by
paragraph (a), clause (4), and paragraphs (b), (c), (d), (f), and (h).
(h) In no case shall lands be disposed of without there being reserved to the county
all iron ore and other valuable minerals in and upon the lands, with right to explore for,
mine and remove the iron ore and other valuable minerals, nor shall the minerals and
mineral rights be disposed of, either before or after disposition of the surface rights,
otherwise than by mining lease, in similar general form to that provided by section 93.20
for mining leases affecting state lands. The lease shall be for a term not exceeding 50
years, and be issued on a royalty basis, the royalty to be not less than 25 cents per ton of
2,240 pounds, and fix a minimum amount of royalty payable during each year, whether
mineral is removed or not. Prospecting options for mining leases may be granted for
periods not exceeding one year. The options shall require, among other things, periodical
showings to the county board of the results of exploration work done.
(i) Notwithstanding anything in this subdivision to the contrary, the county may,
when selling real property owned in fee simple that cannot be improved because of
noncompliance with local ordinances regarding minimum area, shape, frontage, or access,
proceed to sell the nonconforming parcel without advertising for bid. At the county's
discretion, the real property may be restricted to sale to adjoining landowners or may be
sold to any other interested party. The property shall be sold to the highest bidder, but in no
case shall the property be sold for less than 90 percent of its fair market value as determined
by the county assessor. All owners of land adjoining the land to be sold shall be given a
written notice at least 30 days before the sale. This paragraph shall be liberally construed to
encourage the sale of nonconforming real property and promote its return to the tax roles.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 19. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2012, sections 272.69; and 273.11, subdivisions 1a and 22,
new text end
new text begin
are
repealed.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
ARTICLE 18
DEPARTMENT OF REVENUE MISCELLANEOUS PROVISIONS
Section 1.
Minnesota Statutes 2012, section 16A.46, is amended to read:
16A.46 LOST OR DESTROYED WARRANT DUPLICATE; INDEMNITY.
new text begin Subdivision 1. new text end
new text begin Duplicate warrant. new text end
The commissioner may issue a duplicate of an
unpaid warrant to an owner if the owner certifies that the original was lost or destroyed. The
commissioner may require certification be documented by affidavit. new text begin The commissioner
may refuse to issue a duplicate of an unpaid state warrant. If the commissioner acts in
good faith, the commissioner is not liable, whether the application is granted or denied.
new text end
new text begin Subd. 2. new text end
new text begin Original warrant is void. new text end
When the duplicate is issued, the original is
void. The commissioner may require an indemnity bond from the applicant to the state for
double the amount of the warrant for anyone damaged by the issuance of the duplicate.
The commissioner deleted text begin may refuse to issue a duplicate of an unpaid state warrant. If the
commissioner acts in good faith the commissioner is not liable, whether the application is
granted or denieddeleted text end new text begin is not liable to any holder who took the void original warrant for value,
whether or not the commissioner required an indemnity bond from the applicantnew text end .
new text begin Subd. 3. new text end
new text begin Unpaid refund or rebate. new text end
For an unpaid refund or rebate issued under a
tax law administered by the commissioner of revenue that has been lost or destroyed, an
affidavit is not required for the commissioner to issue a duplicate if the duplicate is issued
to the same name and Social Security number as the original warrant and that information
is verified on a tax return filed by the recipient.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2012, section 270C.38, subdivision 1, is amended to read:
Subdivision 1.
Sufficient notice.
new text begin (a) new text end If no method of notification of a written
determination or action of the commissioner is otherwise specifically provided for by
law, notice of the determination or action sent postage prepaid by United States mail to
the taxpayer or other person affected by the determination or action at the taxpayer's
or person's last known address, is sufficient. If the taxpayer or person being notified is
deceased or is under a legal disability, or, in the case of a corporation being notified that
has terminated its existence, notice to the last known address of the taxpayer, person, or
corporation is sufficient, unless the department has been provided with a new address by a
party authorized to receive notices from the commissioner.
new text begin
(b) If a taxpayer or other person agrees to accept notification by electronic means,
notice of a determination or action of the commissioner sent by electronic mail to the
taxpayer's or person's last known electronic mailing address as provided for in section
325L.08 is sufficient.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 3.
Minnesota Statutes 2012, section 270C.42, subdivision 2, is amended to read:
Subd. 2.
Penalty for failure to pay electronically.
In addition to other applicable
penalties imposed by law, after notification from the commissioner to the taxpayer that
payments for a tax payable to the commissioner are required to be made by electronic
means, and the payments are remitted by some other means, there is a penalty in the
amount of five percent of each payment that should have been remitted electronically.
After the commissioner's initial notification to the taxpayer that payments are required to
be made by electronic means, the commissioner is not required to notify the taxpayer in
subsequent periods if the initial notification specified the amount of tax liability at which a
taxpayer is required to remit payments by electronic means. The penalty can be abated
under the abatement procedures prescribed in section 270C.34 if the failure to remit the
payment electronically is due to reasonable cause. The penalty bears interest at the rate
specified in section 270C.40 from the deleted text begin duedeleted text end date deleted text begin of the payment of the taxdeleted text end new text begin provided in
section 270C.40, subdivision 3,new text end to the date of payment of the penalty.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 4.
Minnesota Statutes 2012, section 287.385, subdivision 7, is amended to read:
Subd. 7.
Interest on penalties.
A penalty imposed under this chapter bears interest
from the date deleted text begin payment was required to be paid, including any extensions,deleted text end new text begin provided in
section 270C.40, subdivision 3,new text end to the date of payment of the penalty.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 5.
Minnesota Statutes 2012, section 289A.55, subdivision 9, is amended to read:
Subd. 9.
Interest on penalties.
(a) A penalty imposed under section 289A.60,
subdivision 1, 2, 2a, 4, 5, 6, or 21 bears interest from the date deleted text begin the return or payment
was required to be filed or paid, including any extensionsdeleted text end new text begin provided in section 270C.40,
subdivision 3new text end , to the date of payment of the penalty.
(b) A penalty not included in paragraph (a) bears interest only if it is not paid within
60 days from the date of notice. In that case interest is imposed from the date of notice
to the date of payment.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 6.
Minnesota Statutes 2012, section 289A.60, subdivision 4, is amended to read:
Subd. 4.
Substantial understatement of liability; penalty.
(a) The commissioner
of revenue shall impose a penalty for substantial understatement of any tax payable to the
commissioner, except a tax imposed under chapter 297A.
(b) There must be added to the tax an amount equal to 20 percent of the amount of any
underpayment attributable to the understatement. There is a substantial understatement of
tax for the period if the amount of the understatement for the period exceeds the greater of:
(1) ten percent of the tax required to be shown on the return for the period; or
(2)(i) $10,000 in the case of a mining company or a corporation, other than an S
corporation as defined in section 290.9725, when the tax is imposed by chapter 290 or
section 298.01 or 298.015, or
(ii) $5,000 in the case of any other taxpayer, and in the case of a mining company or
a corporation any tax not imposed by chapter 290 or section 298.01 or 298.015.
(c) For a corporation, other than an S corporation, there is also a substantial
understatement of tax for any taxable year if the amount of the understatement for the
taxable year exceeds the lesser of:
(1) ten percent of the tax required to be shown on the return for the taxable year
(or, if greater, $10,000); or
(2) $10,000,000.
(d) The term "understatement" means the excess of the amount of the tax required
to be shown on the return for the period, over the amount of the tax imposed that is
shown on the return. The excess must be determined without regard to items to which
subdivision 27 applies. The amount of the understatement shall be reduced by that part of
the understatement that is attributable to the tax treatment of any item by the taxpayer if
(1) there is or was substantial authority for the treatment, or (2)(i) any item with respect to
which the relevant facts affecting the item's tax treatment are adequately disclosed in the
return or in a statement attached to the return and (ii) there is a reasonable basis for the tax
treatment of the item. The exception for substantial authority under clause (1) does not
apply to positions listed by the Secretary of the Treasury under section 6662(d)(3) of the
Internal Revenue Code. A corporation does not have a reasonable basis for its tax treatment
of an item attributable to a multiple-party financing transaction if the treatment does not
clearly reflect the income of the corporation within the meaning of section 6662(d)(2)(B)
of the Internal Revenue Code. The special rules in cases involving tax shelters provided in
section 6662(d)(2)(C) of the Internal Revenue Code shall apply and shall apply to a tax
shelter the principal purpose of which is the avoidance or evasion of state taxes.
(e) The commissioner may abate all or any part of the addition to the tax provided
by this section on a showing by the taxpayer that there was reasonable cause for the
understatement, or part of it, and that the taxpayer acted in good faith. The additional tax
and penalty shall bear interest deleted text begin at the ratedeleted text end new text begin asnew text end specified in section 270C.40 deleted text begin from the time
the tax should have been paiddeleted text end until paid.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 7.
Minnesota Statutes 2012, section 296A.01, is amended by adding a subdivision
to read:
new text begin Subd. 8b. new text end
new text begin Biobutanol. new text end
new text begin
"Biobutanol" means isobutyl alcohol produced by
fermenting agriculturally generated organic material that is to be blended with gasoline
and meets either:
new text end
new text begin
(1) the initial ASTM Standard Specification for Butanol for Blending with Gasoline
for use as an Automotive Spark-Ignition Engine Fuel once it has been released by ASTM
for general distribution; or
new text end
new text begin
(2) in the absence of an ASTM Standard Specification, the following list of
requirements:
new text end
new text begin
(i) visually free of sediment and suspended matter;
new text end
new text begin
(ii) clear and bright at the ambient temperature of 21 degrees Celsius or the ambient
temperature whichever is higher;
new text end
new text begin
(iii) free of any adulterant or contaminant that can render it unacceptable for its
commonly used applications;
new text end
new text begin
(iv) contains not less than 96 volume percent isobutyl alcohol;
new text end
new text begin
(v) contains not more than 0.4 volume percent methanol;
new text end
new text begin
(vi) contains not more than 1.0 volume percent water as determined by ASTM
standard test method E203 or E1064;
new text end
new text begin
(vii) acidity (as acetic acid) of not more than 0.007 mass percent as determined
by ASTM standard test method D1613;
new text end
new text begin
(viii) solvent washed gum content of not more than 5.0 milligrams per 100 milliliters
as determined by ASTM standard test method D381;
new text end
new text begin
(ix) sulfur content of not more than 30 parts per million as determined by ASTM
standard test method D2622 or D5453; and
new text end
new text begin
(x) contains not more than 4 parts per million total inorganic sulfate.
new text end
Sec. 8.
Minnesota Statutes 2012, section 296A.01, subdivision 19, is amended to read:
Subd. 19.
E85.
"E85" means a petroleum product that is a blend of agriculturally
derived denatured ethanol and gasoline or natural gasoline that deleted text begin typicallydeleted text end containsnew text begin not more
thannew text end 85 percent ethanol by volume, but at a minimum must contain deleted text begin 60deleted text end new text begin 51new text end percent ethanol by
volume. For the purposes of this chapter, the energy content of E85 will be considered to be
82,000 BTUs per gallon. E85 produced for use as a motor fuel in alternative fuel vehicles
as defined in subdivision 5 must comply with ASTM specification deleted text begin D5798-07deleted text end new text begin D5798-11new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 9.
Minnesota Statutes 2012, section 296A.22, subdivision 1, is amended to read:
Subdivision 1.
Penalty for failure to pay tax, general rule.
Upon the failure of
any person to pay any tax or fee when due, a penalty of one percent per day for the first
ten days of delinquency shall accrue, and thereafter the tax, fees, and penalty shall bear
interest at the rate specified in section 270C.40new text begin until paidnew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 10.
Minnesota Statutes 2012, section 296A.22, subdivision 3, is amended to read:
Subd. 3.
Operating without license.
If any person operates as a distributor, special
fuel dealer, bulk purchaser, or motor carrier without first securing the license required
under this chapter, any tax or fee imposed by this chapter shall become immediately due
and payable. A penalty of 25 percent is imposed upon the tax and fee due. The taxdeleted text begin ,deleted text end new text begin and
new text end feesdeleted text begin , and penaltydeleted text end shall bear interest at the rate specified in section 270C.40.new text begin The penalty
imposed in this subdivision shall bear interest from the date provided in section 270C.40,
subdivision 3, to the date of payment of the penalty.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 11.
Minnesota Statutes 2012, section 297B.11, is amended to read:
297B.11 REGISTRAR AS AGENT OF COMMISSIONER OF REVENUE;
POWERS.
The state commissioner of revenue is charged with the administration of the
sales tax on motor vehicles. The commissioner may prescribe all rules not inconsistent
with the provisions of this chapter, necessary and advisable for the proper and efficient
administration of the law. The collection of this sales tax on motor vehicles shall be
carried out by the motor vehicle registrar who shall act as the agent of the commissioner
and who shall be subject to all rules not inconsistent with the provisions of this chapter,
that may be prescribed by the commissioner.
The provisions of chapters 270C, 289A, and 297A relating to the commissioner's
authority to audit, assess, and collect the tax, and to issue refunds and to hear appeals,
are applicable to the sales tax on motor vehicles. The commissioner may impose civil
penalties as provided in chapters 289A and 297A, and the additional tax and penalties
are subject to interest at the rate provided in section 270C.40new text begin from the date provided in
section 270C.40, subdivision 3, until paidnew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 12.
Minnesota Statutes 2012, section 297E.14, subdivision 7, is amended to read:
Subd. 7.
Interest on penalties.
(a) A penalty imposed under section 297E.12,
subdivision 1, 2, 3, 4, or 5, bears interest from the date deleted text begin the return or payment was required
to be filed or paid, including any extensionsdeleted text end new text begin provided in section 270C.40, subdivision
3new text end , to the date of payment of the penalty.
(b) A penalty not included in paragraph (a) bears interest only if it is not paid within
ten days from the date of notice. In that case interest is imposed from the date of notice
to the date of payment.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 13.
Minnesota Statutes 2012, section 297F.09, subdivision 9, is amended to read:
Subd. 9.
Interest.
The amount of tax not timely paiddeleted text begin , together with any penalty
imposed in this section,deleted text end bears interest at the rate specified in section 270C.40 from the
time such tax should have been paid until paid.new text begin The penalty imposed in this section bears
interest at the rate specified in section 270C.40 from the date provided in section 270C.40,
subdivision 3, to the date of payment of the penalty.new text end Any interest and penalty is added to
the tax and collected as a part of it.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 14.
Minnesota Statutes 2012, section 297F.18, subdivision 7, is amended to read:
Subd. 7.
Interest on penalties.
(a) A penalty imposed under section 297F.19,
subdivisions 2 to 7, bears interest from the date deleted text begin the return or payment was required to be
deleted text end deleted text begin filed or paid, including any extensionsdeleted text end new text begin provided in section 270C.40, subdivision 3new text end , to the
date of payment of the penalty.
(b) A penalty not included in paragraph (a) bears interest only if it is not paid within
ten days from the date of the notice. In that case interest is imposed from the date of notice
to the date of payment.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 15.
Minnesota Statutes 2012, section 297G.09, subdivision 8, is amended to read:
Subd. 8.
Interest.
The amount of tax not timely paiddeleted text begin , together with any penalty
imposed by this chapter,deleted text end bears interest at the rate specified in section 270C.40 from the
time the tax should have been paid until paid.new text begin Any penalty imposed by this chapter bears
interest from the date provided in section 270C.40, subdivision 3, to the date of payment
of the penalty.new text end Any interest and penalty is added to the tax and collected as a part of it.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 16.
Minnesota Statutes 2012, section 297G.17, subdivision 7, is amended to read:
Subd. 7.
Interest on penalties.
(a) A penalty imposed under section 297G.18,
subdivisions 2 to 7, bears interest from the date deleted text begin the return or payment was required to be
filed or paid, including any extensionsdeleted text end new text begin provided in section 270C.40, subdivision 3new text end , to the
date of payment of the penalty.
(b) A penalty not included in paragraph (a) bears interest only if it is not paid within
ten days from the date of the notice. In that case interest is imposed from the date of notice
to the date of payment.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 17.
Minnesota Statutes 2012, section 297I.80, subdivision 1, is amended to read:
Subdivision 1.
Payable to commissioner.
(a) When interest is required under this
section, interest is computed at the rate specified in section 270C.40.
(b) If a tax or surcharge is not paid within the time named by law for payment, the
unpaid tax or surcharge bears interest from the date the tax or surcharge should have been
paid until the date the tax or surcharge is paid.
(c) Whenever a taxpayer is liable for additional tax or surcharge because of a
redetermination by the commissioner or other reason, the additional tax or surcharge
bears interest from the time the tax or surcharge should have been paid until the date the
tax or surcharge is paid.
(d) A penalty bears interest from the date deleted text begin the return or payment was required to be
filed or paiddeleted text end new text begin provided in section 270C.40, subdivision 3,new text end to the date of payment of the
penalty.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 18.
Minnesota Statutes 2012, section 469.319, subdivision 4, is amended to read:
Subd. 4.
Repayment procedures.
(a) For the repayment of taxes imposed under
chapter 290 or 297A or local taxes collected pursuant to section 297A.99, a business must
file an amended return with the commissioner of revenue and pay any taxes required
to be repaid within 30 days after becoming subject to repayment under this section.
The amount required to be repaid is determined by calculating the tax for the period or
periods for which repayment is required without regard to the exemptions and credits
allowed under section 469.315.
(b) For the repayment of taxes imposed under chapter 297B, a business must pay any
taxes required to be repaid to the motor vehicle registrar, as agent for the commissioner of
revenue, within 30 days after becoming subject to repayment under this section.
(c) For the repayment of property taxes, the county auditor shall prepare a tax
statement for the business, applying the applicable tax extension rates for each payable
year and provide a copy to the business and to the taxpayer of record. The business must
pay the taxes to the county treasurer within 30 days after receipt of the tax statement. The
business or the taxpayer of record may appeal the valuation and determination of the
property tax to the Tax Court within 30 days after receipt of the tax statement.
(d) The provisions of chapters 270C and 289A relating to the commissioner's
authority to audit, assess, and collect the tax and to hear appeals are applicable to the
repayment required under paragraphs (a) and (b). The commissioner may impose civil
penalties as provided in chapter 289A, and the additional tax and penalties are subject
to interest at the rate provided in section 270C.40deleted text begin ,deleted text end new text begin . The additional tax shall bear interest
new text end from 30 days after becoming subject to repayment under this section until the date the
tax is paid.new text begin Any penalty imposed pursuant to this section shall bear interest from the date
provided in section 270C.40, subdivision 3, to the date of payment of the penalty.
new text end
(e) If a property tax is not repaid under paragraph (c), the county treasurer shall
add the amount required to be repaid to the property taxes assessed against the property
for payment in the year following the year in which the auditor provided the statement
under paragraph (c).
(f) For determining the tax required to be repaid, a reduction of a state or local sales or
use tax is deemed to have been received on the date that the good or service was purchased
or first put to a taxable use. In the case of an income tax or franchise tax, including the
credit payable under section 469.318, a reduction of tax is deemed to have been received
for the two most recent tax years that have ended prior to the date that the business became
subject to repayment under this section. In the case of a property tax, a reduction of tax is
deemed to have been received for the taxes payable in the year that the business became
subject to repayment under this section and for the taxes payable in the prior year.
(g) The commissioner may assess the repayment of taxes under paragraph (d) any
time within two years after the business becomes subject to repayment under subdivision
1, or within any period of limitations for the assessment of tax under section 289A.38,
whichever period is later. The county auditor may send the statement under paragraph
(c) any time within three years after the business becomes subject to repayment under
subdivision 1.
(h) A business is not entitled to any income tax or franchise tax benefits, including
refundable credits, for any part of the year in which the business becomes subject to
repayment under this section nor for any year thereafter. Property is not exempt from tax
under section 272.02, subdivision 64, for any taxes payable in the year following the year
in which the property became subject to repayment under this section nor for any year
thereafter. A business is not eligible for any sales tax benefits beginning with goods
or services purchased or first put to a taxable use on the day that the business becomes
subject to repayment under this section.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 19.
Minnesota Statutes 2012, section 469.340, subdivision 4, is amended to read:
Subd. 4.
Repayment procedures.
(a) For the repayment of taxes imposed under
chapter 290 or 297A or local taxes collected pursuant to section 297A.99, a business must
file an amended return with the commissioner of revenue and pay any taxes required to be
repaid within 30 days after ceasing to do business in the zone. The amount required to be
repaid is determined by calculating the tax for the period or periods for which repayment
is required without regard to the exemptions and credits allowed under section 469.336.
(b) For the repayment of property taxes, the county auditor shall prepare a tax
statement for the business, applying the applicable tax extension rates for each payable
year and provide a copy to the business. The business must pay the taxes to the county
treasurer within 30 days after receipt of the tax statement. The taxpayer may appeal the
valuation and determination of the property tax to the Tax Court within 30 days after
receipt of the tax statement.
(c) The provisions of chapters 270C and 289A relating to the commissioner's
authority to audit, assess, and collect the tax and to hear appeals are applicable to the
repayment required under paragraph (a). The commissioner may impose civil penalties as
provided in chapter 289A, and the additional tax and penalties are subject to interest at the
rate provided in section 270C.40deleted text begin ,deleted text end new text begin . The additional tax shall bear interestnew text end from 30 days after
ceasing to do business in the biotechnology and health sciences industry zone until the
date the tax is paid.new text begin Any penalty imposed pursuant to this section shall bear interest from
the date provided in section 270C.40, subdivision 3, to the date of payment of the penalty.
new text end
(d) If a property tax is not repaid under paragraph (b), the county treasurer shall add
the amount required to be repaid to the property taxes assessed against the property for
payment in the year following the year in which the treasurer discovers that the business
ceased to operate in the biotechnology and health sciences industry zone.
(e) For determining the tax required to be repaid, a tax reduction is deemed to have
been received on the date that the tax would have been due if the taxpayer had not been
entitled to the exemption, or on the date a refund was issued for a refundable credit.
(f) The commissioner may assess the repayment of taxes under paragraph (c) any
time within two years after the business ceases to operate in the biotechnology and health
sciences industry zone, or within any period of limitations for the assessment of tax under
section 289A.38, whichever period is later.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end